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26 August 2024
Moreno Valley Man Sentenced to More Than 15 Years in Prison for Ponzi Scheme that Drew in More Than $24 Million from VictimsRead the Press Release
RIVERSIDE, California – A Riverside County man was sentenced today to 188 months in federal prison for running a Ponzi scheme that lasted nearly 20 years and fraudulently obtained more than $24 million from at least 200 investors.
Paul Horton Smith Sr., 61, of Moreno Valley, was sentenced by United States District Judge Jesus G. Bernal, who also ordered him to pay $13,331,505 in restitution.
Smith pleaded guilty on January 8 to one count of wire fraud.
“This defendant’s greed and deceit caused major losses for his victims, who discovered that the supposed gains for their retirement were nothing more than a lie,” said United States Attorney Martin Estrada. “My office will continue to aggressively prosecute fraudsters who take advantage of victims in our community, and I also encourage everyone to use caution and skepticism with regard to any investments, especially those that seem too good to be true.”
“Paul Smith's clients trusted him. Smith knew that and used it to his advantage, selling them on a bogus investment opportunity and pocketing those funds,” said Akil Davis, Assistant Director in Charge of the FBI Los Angeles Field Office. “The fact that the bulk of his investors were seniors, men and women alike, and in various stages of vulnerability, makes this case all the more heartbreaking. Now, he's finally being held accountable. The FBI will continue shutting down crooks like this to help find justice for their victims.”
Smith operated Riverside-based companies named Northstar Communications LLC, Planning Services Inc., and eGate LLC. From July 2000 to May 2020, Smith obtained money from investors by soliciting individuals – who often were elderly or retired – to invest in something Smith called “Northstar.” Some of the investors previously were Planning Services clients.
Smith communicated with the victim investors regarding Northstar in person, over the telephone, and via email and text messages. He falsely told investors that Northstar was an annuity or an investment like an annuity. He falsely told other investors that Northstar invested in real estate or followed the stock market. He typically told the investors that their investment would generate a fixed rate of return and was a “safe investment.”
While Smith led most Northstar investors to believe his company reinvested their initial investment, generating the percentage they were to earn, in fact, he never invested the money. Instead, Smith deposited all investor funds into a non-interest-bearing checking account.
Smith used some money from later Northstar investors to pay earlier Northstar investors’ monthly interest payments and to repay earlier investors who wanted to withdraw their investment.
For example, in April 2019, Smith caused one victim to invest with him $400,000 – life insurance proceeds after the victim’s spouse had died. The victim wrote a personal check for that amount and the check was deposited into a bank account in Riverside, which then was electronically transferred to the bank’s Alabama headquarters for processing.
Smith promised the victim he would invest the $400,000 in a safe investment with a 5% rate of return. But Smith never invested the money. Instead, he transferred the funds to pay other victims of his Ponzi scheme. In an attempt to conceal his criminal activity, Smith made 11 payments to the victim that totaled $163,324.
As a result of the scheme, Smith fraudulently obtained more than $24 million from at least 200 investors. Of these investors, 106 victims have not been fully repaid. The total loss for these victims is $13,331,505.
The FBI investigated this matter. The United States Securities and Exchange Commission, which filed a complaint and obtained a judgment against Smith and Northstar Communications LLC in 2020, provided assistance.
Assistant United States Attorney Benjamin J. Weir of the Riverside Branch Office prosecuted this case.
Milwaukee Man Sentenced to 20 Years’ Imprisonment for Sex TraffickingRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that on August 22, 2024, Montae D. Jacobs (age: 34) of Milwaukee, Wisconsin, was sentenced to a term of 20 years’ imprisonment, followed by five years of supervised release, after being convicted following a bench trial of two counts of sex trafficking by force, fraud, or coercion, one count of sex trafficking of a child, and ten other related charges.
According to court records, the offenses for which Jacobs was convicted began in 2019 and continued through 2023. It also included conduct that occurred after his arrest and indictment in this case, while he served a state prison sentence. Throughout his time in custody, Jacobs continuously attempted to recruit new victims for his sex trafficking scheme, including at least one minor. Jacobs solicited, and in some cases paid, his fellow inmates for the contact information of women and girls they thought might be susceptible to Jacobs’ pitch, which was that they could quickly become wealthy by prostituting and live-streaming pornographic content if they followed his detailed instructions. His instructions included paying part of their earnings to him. Jacobs sent any women who were responsive to him letters, emails, and calls multiple times a day, exhorting them to call him “daddy” and “king,” to “submit” and “bow down” to him, and to recruit other victims for him.
In announcing the sentence, United States District Judge Lynn Adelman emphasized that while Jacobs may not have been as financially successful or as violent as some other traffickers previously sentenced in this district, his unusual degree of persistence and total lack of remorse required a serious sentence, both to protect the community from future crimes by Jacobs and to deter others who would engage in similar conduct. Judge Adelman also noted that the varied and nefarious means by which Jacobs controlled his victims, including false promises, physical violence, threats to have the victims arrested or evicted, and manipulation of their drug addictions, influenced the Court’s sentencing decision.
“The sentence in this case reflects the fact that human trafficking is a brutal offense, involving victimizing individuals day after day,” said U.S. Attorney Haanstad. “In this case, Mr. Jacobs not only engaged in this conduct while in the community but he also continued to seek to victimize vulnerable individuals even after being placed in custody. I commend the hard work of all involved in seeking justice for and giving a voice to the individuals exploited by Mr. Jacobs.”
“Human trafficking is a heinous crime that has no place in Wisconsin or anywhere else,” said Attorney General Josh Kaul. “Thank you to everyone who collaborated to make this investigation and prosecution successful.”
This case was investigated by the Wisconsin Department of Justice, Division of Criminal Investigation, with support from the South Milwaukee Police Department and the Federal Bureau of Investigation.
This case was prosecuted by Assistant United States Attorneys Erica J. Lounsberry and Kate M. Biebel.
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Mexican National Sentenced for Possessing Heroin with Intent to Distribute in BakersfieldRead the Press Release
FRESNO, Calif. — Antonio Beltran-Chaidez, 54, a Mexican national residing in Bakersfield, was sentenced today to three years and 10 months in prison for possessing with intent to distribute heroin, U.S. Attorney Phillip A. Talbert announced.
According to court documents, in January 2022, Antonio Beltran-Chaidez recruited his brother, Jose Beltran-Chaidez, 68, a Mexican national residing in Bakersfield, to deliver more than 2 pounds of heroin to Jorge Calderon-Campos, 42, of Bakersfield, who was the target of a federal wiretap investigation for distribution to Calderon-Campos’s customers. However, when Calderon-Campos was unable to sell the drug, Jose Beltran-Chaidez retrieved it from Calderon-Campos at Antonio Beltran-Chaidez’s direction and was in possession of the heroin when stopped by a law enforcement officer for a traffic violation.
Calderon-Campos and Jose Beltran-Chaidez recently pleaded guilty to their involvement in a larger drug conspiracy and are scheduled for sentencing on Oct. 21, 2024, and Nov. 4, 2024, respectively. They face a mandatory statutory minimum penalty of 10 years and a maximum statutory penalty of life in prison, along with a $10 million fine. The actual sentences, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case was the product of an investigation by Homeland Security Investigations and the Drug Enforcement Administration, with assistance from the U.S. Department of Agriculture Office of Inspector General, the U.S. Marshals Service, the U.S. Customs and Border Protection, the U.S. Secret Service, the Bureau of Land Management, the Kern County High Intensity Drug Trafficking Area Task Force, the CHP, the California Department of Corrections and Rehabilitation, the Kern County Sheriff's Office, the Kern County Probation Department, and the Bakersfield Police Department. Assistant U.S. Attorney Karen Escobar prosecuted the case.
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.
Mercer County Couple Admit Conspiring to Submit Fraudulent Asylum ApplicationsRead the Press Release
TRENTON, N.J. – A Mercer County, New Jersey, couple today admitted their roles in a conspiracy to prepare and submit fraudulent asylum applications, U.S. Attorney Philip R. Sellinger announced.
Zuwairul Ameer, aka “Zuwairul Thowfeek,” 61, and Claudette Ameer, aka “Claudette Pieries,” 63, both of Lawrence Township, New Jersey, pleaded guilty before U.S. District Judge Michael Shipp in Trenton federal court to count one of an indictment charging them with one count of conspiracy to commit immigration fraud.
According to documents filed in this case and statements made in court:
Applicants for asylum in the United States must show that they have suffered persecution in their country of origin on account of race, religion, nationality, political opinion, or membership in a particular social group, or have a well-founded fear of persecution if they were to return to that country. The process requires an application that is reviewed by an asylum officer with the U.S. Citizenship and Immigration Services (USCIS), who makes an initial determination whether to grant asylum. If the application has been prepared by someone other than the applicant, the preparer must disclose his or her name and address and must sign the application.
Since at least 2007, Zuwairul Ameer has been in the business of preparing fraudulent asylum application on behalf of his non-citizen clients. Claudette Ameer has managed that business, acting as the primary point of contact for clients, arranging meetings, and mailing completed applications to USCIS. With Claudette Ameer’s assistance, Zuwairul Ameer met with clients, listened to their stories of mistreatment in their countries of origin, and drafted applications on their behalf that were fraudulent because they: exaggerated the stories of mistreatment; falsely omitted Zuwairul Ameer’s name as the preparer; or both.
The conspiracy charge to which the Ameers have pleaded guilty is punishable by a maximum of five years in prison and a $250,000 fine, or twice the gross gain or loss from the offense, whichever is greatest. Sentencing is scheduled for Feb. 25, 2025.
U.S. Attorney Sellinger credited special agents of the FBI, New York Field Office, under the direction of under the direction of Assistant Director in Charge James Smith, and immigration officers with of the USCIS Fraud Detection and National Security Directorate at the New York Asylum Office, under the direction of Director Mathew Varghese, with the investigation.
The government is represented by Assistant U.S. Attorney Aaron L. Webman of the Economic Crimes Unit in Newark.
ameer.indictment.pdfMan Sentenced to Prison for Sexually Abusing, Stalking, and Blackmailing Three Victims, Including a Child and a MinorRead the Press Release
WASHINGTON – John’Ta Price, 29, of Washington, D.C., was sentenced to 40 months in prison for the sexual abuse of three deaf victims, including a child and a minor, between 2015 and 2023, U.S. Attorney Matthew M. Graves announced.
Price pleaded guilty on June 18, 2024, to second-degree child sexual abuse, attempted stalking, and attempted blackmail in the Superior Court of the District of Columbia. Superior Court Judge Robert Okun sentenced the defendant on August 23, 2024, to 30 months in prison for the second-degree child sexual abuse, plus 180 days for attempted stalking, plus 120 days for attempted blackmail, all to run consecutively, followed by five years of probation. Price will also be required to register as a sex offender for 10 years.
According to the government’s evidence, between March 1, 2015 and February 20, 2020, Price engaged in a course of conduct to stalk the first victim, who throughout this period was around 13 to 18 years-old. The defendant sent nude videos and pictures on at least 10 different occasions to the victim, despite the victim repeatedly asking him to stop. Price continued his inappropriate behavior when he confronted the victim at her high school and made lude remarks about having sexual intercourse with the victim. While making these remarks, Price touched the victim’s shoulder and attempted a hug, but the victim pushed him away. Price then attempted to grab the victim’s breast.
In or around November 2021, Price threatened to expose nude pictures of the second victim to the public if the victim did not perform sexual acts on the defendant.
On October 21, 2023, the third victim, a 14-year-old child, was contacted by Price to meet up. The victim subsequently met up with Price at Union Station. Price asked the victim to get inside his vehicle and perform a sexual act on him, which the victim performed after Price’s request. Then, after asking to perform a subsequent sexual act on the victim, Price proceeded to perform that sexual act on the victim.
The defendant was arrested December 1, 2023, and was a Gallaudet student at the time. He has been in custody ever since.
In announcing the sentence, U.S. Attorney Graves commended the work of those who investigated the case from the Metropolitan Police Department. He acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorney Marco Crocetti, of the Sex Offense and Domestic Violence Unit, who investigated and prosecuted the case.
Man Charged with Threatening Election Officials, State Judge, and Federal Law Enforcement AgentsRead the Press Release
A Colorado man will make his initial appearance at the federal courthouse in Durango, Colorado, today on federal charges in connection with a series of online threats he made toward election officials in Colorado and Arizona, a Colorado state judge, and federal law enforcement agents.
Teak Brockbank, 45, of Cortez, was arrested on Friday in Cortez.
“We allege that the defendant made detailed death threats against election officials, judges, and law enforcement officers,” said Attorney General Merrick B. Garland. “Violent threats against public servants are a danger to our democracy, and the arrest and charges announced today make clear that the Justice Department will see to it that perpetrators answer for their actions.”
“As alleged, Teak Brockbank threatened the lives of multiple public servants on social media. Among other threats, he allegedly claimed that it was ‘time’ to put two state election officials to death and that he was obligated to ‘put a bullet’ in the head of a Colorado state judge,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “Public servants must be able to do their jobs without fear. The Criminal Division will continue to aggressively investigate and prosecute those who target public officials with threats of violence.”
According to court documents, between September 2021 and August 2022, Brockbank allegedly used two social media accounts to post messages threatening Colorado and Arizona election officials. For example, on Aug. 4, 2022, Brockbank allegedly posted a message referring to separate election officials in Arizona and Colorado and then stated: “Once those people start getting put to death then the rest will melt like snowflakes and turn on each other. . . . This is the only way. So those of us that have the stomach for what has to be done should prepare our minds for what we all [a]re going to do!!!!!! It is time.”
Brockbank also allegedly posted a message threatening a Colorado state judge on Oct. 2, 2021: “I could pick up my rifle and I could go put a bullet in this Mans head and send him to explain himself to our Creator right now. I would be Justified!!! Not only justified but obligated by those in my family who fought and died for the freedom in this country. . . . What can I do other than kill this man my self?”
Finally, Brockbank allegedly threatened federal law enforcement on July 20, 2022, posting: “ATF CIA FBI show up to my house I am shooting them peace’s of s*** first No Warning!! Then I will call the sheriff!!! With everything that these piece of shit agencies have done I am completely justified to just start dropping them as soon as they step on my property! justified.”
Brockbank is charged with transmitting interstate threats. If convicted, he faces a maximum penalty of five years in prison.
The FBI Denver Field Office is investigating the case.
Trial Attorney Jonathan E. Jacobson of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Cyrus Y. Chung for the District of Colorado are prosecuting the case.
This case is part of the Justice Department’s Election Threats Task Force. Announced by Attorney General Merrick B. Garland and launched by Deputy Attorney General Lisa Monaco in June 2021, the task force has led the Department’s efforts to address threats of violence against election workers, and to ensure that all election workers — whether elected, appointed, or volunteer — are able to do their jobs free from threats and intimidation. The task force engages with the election community and state and local law enforcement to assess allegations and reports of threats against election workers, and has investigated and prosecuted these matters where appropriate, in partnership with FBI Field Offices and U.S. Attorneys’ Offices throughout the country. A year after its formation, the task force is continuing this work and supporting the U.S. Attorneys’ Offices and FBI Field Offices nationwide as they carry on the critical work that the Task Force has begun.
Under the leadership of Deputy Attorney General Monaco, the Task Force is led by the Criminal Division’s Public Integrity Section and includes several other entities within the Justice Department, including the Computer Crime and Intellectual Property Section of the Criminal Division, the Civil Rights Division, the National Security Division, and the FBI, as well as key interagency partners, such as the Department of Homeland Security and the U.S. Postal Inspection Service. For more information regarding the Justice Department’s efforts to combat threats against election workers, read the Deputy Attorney General’s memo.
To report suspected threats or violent acts, contact your local FBI office and request to speak with the Election Crimes Coordinator. Contact information for every FBI field office may be found here: www.fbi.gov/contact-us/field-offices/. You may also contact the FBI at 1-800-CALL-FBI (225-5324) or file an online complaint at www.tips.fbi.gov. Complaints submitted will be reviewed by the task force and referred for investigation or response accordingly. If someone is in imminent danger or risk of harm, contact 911 or your local police immediately.
A criminal complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Man Charged with Threatening Election Officials, State Judge, and Federal Law Enforcement AgentsRead the Press Release
DENVER – A Colorado man will make his initial appearance at the federal courthouse in Durango, Colorado, today on federal charges in connection with a series of online threats he made toward election officials in Colorado and Arizona, a Colorado state judge, and federal law enforcement agents.
Teak Brockbank, 45, of Cortez, was arrested on Friday in Cortez.
“We allege that the defendant made detailed death threats against election officials, judges, and law enforcement officers,” said Attorney General Merrick B. Garland. “Violent threats against public servants are a danger to our democracy, and the arrest and charges announced today make clear that the Justice Department will see to it that perpetrators answer for their actions.”
“As alleged, Teak Brockbank threatened the lives of multiple public servants on social media. Among other threats, he allegedly claimed that it was ‘time’ to put two state election officials to death and that he was obligated to ‘put a bullet’ in the head of a Colorado state judge,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “Public servants must be able to do their jobs without fear. The Criminal Division will continue to aggressively investigate and prosecute those who target public officials with threats of violence.”
According to court documents, between September 2021 and August 2022, Brockbank allegedly used two social media accounts to post messages threatening Colorado and Arizona election officials. For example, on Aug. 4, 2022, Brockbank allegedly posted a message referring to separate election officials in Arizona and Colorado and then stated: “Once those people start getting put to death then the rest will melt like snowflakes and turn on each other. . . . This is the only way. So those of us that have the stomach for what has to be done should prepare our minds for what we all [a]re going to do!!!!!! It is time.”
Brockbank also allegedly posted a message threatening a Colorado state judge on Oct. 2, 2021: “I could pick up my rifle and I could go put a bullet in this Mans head and send him to explain himself to our Creator right now. I would be Justified!!! Not only justified but obligated by those in my family who fought and died for the freedom in this country. . . . What can I do other than kill this man my self?”
Finally, Brockbank allegedly threatened federal law enforcement on July 20, 2022, posting: “ATF CIA FBI show up to my house I am shooting them peace’s of s*** first No Warning!! Then I will call the sheriff!!! With everything that these piece of shit agencies have done I am completely justified to just start dropping them as soon as they step on my property! justified.”
Brockbank is charged with transmitting interstate threats. If convicted, he faces a maximum penalty of five years in prison.
The FBI Denver Field Office is investigating the case.
Trial Attorney Jonathan E. Jacobson of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Cyrus Y. Chung for the District of Colorado are prosecuting the case.
This case is part of the Justice Department’s Election Threats Task Force. Announced by Attorney General Merrick B. Garland and launched by Deputy Attorney General Lisa Monaco in June 2021, the task force has led the Department’s efforts to address threats of violence against election workers, and to ensure that all election workers — whether elected, appointed, or volunteer — are able to do their jobs free from threats and intimidation. The task force engages with the election community and state and local law enforcement to assess allegations and reports of threats against election workers, and has investigated and prosecuted these matters where appropriate, in partnership with FBI Field Offices and U.S. Attorneys’ Offices throughout the country. A year after its formation, the task force is continuing this work and supporting the U.S. Attorneys’ Offices and FBI Field Offices nationwide as they carry on the critical work that the Task Force has begun.
Under the leadership of Deputy Attorney General Monaco, the Task Force is led by the Criminal Division’s Public Integrity Section and includes several other entities within the Justice Department, including the Computer Crime and Intellectual Property Section of the Criminal Division, the Civil Rights Division, the National Security Division, and the FBI, as well as key interagency partners, such as the Department of Homeland Security and the U.S. Postal Inspection Service. For more information regarding the Justice Department’s efforts to combat threats against election workers, read the Deputy Attorney General’s memo.
To report suspected threats or violent acts, contact your local FBI office and request to speak with the Election Crimes Coordinator. Contact information for every FBI field office may be found here: www.fbi.gov/contact-us/field-offices/. You may also contact the FBI at 1-800-CALL-FBI (225-5324) or file an online complaint at www.tips.fbi.gov. Complaints submitted will be reviewed by the task force and referred for investigation or response accordingly. If someone is in imminent danger or risk of harm, contact 911 or your local police immediately.
A criminal complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Maine Man Pleads Guilty to Harassing and Threatening Woman and Her Family MembersRead the Press Release
BANGOR, Maine: A Maine man pleaded guilty today in U.S. District Court in Bangor to one count of making repeated phone calls with the intent to harass and one count of transmitting a threatening interstate communication.
According to court records, from mid-July to early August 2023, Angelo Castigliola, 44, formerly of Biddeford, repeatedly called and texted the victim, including calling her 57 times and leaving her nine voicemails. He also sent the victim 40 text messages on one day alone. These repeated communications were harassing in nature. In the communications, Castigliola repeatedly threatened to harm an individual with whom he believed the victim had a relationship, and repeatedly referenced the victim’s minor child. On July 28, 2023, Castigliola also made several telephone calls to the victim’s mother, often disguising his phone number, leaving two voicemails. In one voicemail, Castigliola threatened to kill three of her family members including the victim, and to rape two minor children. The U.S. Attorney’s Office is limiting identifying information to protect the victims’ privacy.
Castigliola faces up to two years imprisonment and a maximum fine of $250,000 for making repeated harassing phone calls and up to five years and a maximum fine of $250,000 for transmitting a threatening interstate communication. Any sentence would be followed by up to three years of supervised release. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI investigated the case.
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La Oficina del Abogado de Indultos Publica la Solicitud de Conmutación de la Pena en EspañolRead the Press Release
La Oficina del Abogado de Indultos (Indultos) publicó una Versión en idioma español de su solicitud de conmutación de la pena. La solicitud en español puede usarse para pedirle al presidente la conmutación de la pena de una persona que está encarcelada. Esta solicitud sigue el lanzamiento de la solicitud de indulto mejorada en junio de 2024, y de la solicitud de conmutación de la pena en inglés en noviembre de 2023.
En 2023 y 2024, Indultos revisó todos sus formularios de clemencia para hacerlos más accesibles y fáciles de usar. Las revisiones han sido parte de un esfuerzo de todo el departamento por ampliar el acceso a la justicia mediante la simplificación de los formularios y documentos de carácter público, coherente con las recomendaciones descritas en los Informes de la Mesa Redonda Interinstitucional de Asistencia Jurídica de 2022 y 2023.
“Por medio de la colaboración con la Oficina de Acceso a la Justicia, la divulgación y la educación regulares de la comunidad, y el arduo trabajo de nuestro equipo, hemos sido capaces de revisar toda nuestra plataforma de solicitudes de clemencia”, dijo la Abogada de Indultos Elizabeth Oyer. “La solicitud en español permitirá a un gran número de personas dentro de la Oficina Federal de Prisiones acceder mejor al proceso de clemencia en el futuro. Es un paso clave en nuestros esfuerzos por hacer el indulto más transparente y cumplir con nuestra obligación de aumentar el acceso lingüístico de nuestros solicitantes”.
Indultos también está trabajando con la Oficina Federal de Prisiones (FBOP, por sus siglas en inglés) para poner el formulario de conmutación en español a disposición de los hispanohablantes en las instalaciones de la FBOP.
Para obtener más información sobre el trabajo y el alcance de la Oficina del Abogado de Indultos, visite la Oficina del Abogado de Indultos | Oficina del Abogado de Indultos (justice.gov).
Justice Department Sues Pennsylvania Man for Physically Obstructing Access to Reproductive Health Services in Violation of Freedom of Access to Clinic Entrances (FACE) ActRead the Press Release
The Justice Department filed a civil lawsuit today in the Eastern District of Pennsylvania against a man for violating the Freedom of Access to Clinic Entrances (FACE) Act. The FACE Act is a federal statute that prohibits use of force, threats of force or physical obstruction against anyone for seeking or providing reproductive health services.
The lawsuit alleges that, on Aug. 27, 2021, Matthew Connolly violated the FACE Act by intentionally creating a physical obstruction at a reproductive health clinic in Philadelphia. In particular, the complaint alleges that the defendant, after entering the clinic, barricaded himself inside one of the clinic’s bathrooms and that his actions forced the clinic to shut down for the day, requiring the intervention of the local police. As a result, at least 44 appointments had to be re-scheduled. The complaint seeks monetary penalties and injunctive relief as provided by the FACE Act.
“The defendant engaged in conduct calculated to shut down a reproductive health clinic for an entire day, forcing the evacuation of the clinic’s patients and obstructing access to reproductive health services. The FACE Act prohibits conduct intended to interfere with access to reproductive healthcare,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department is committed to enforcing the FACE Act to ensure that providers can continue to deliver legal reproductive health services and that patients can obtain them.”
For additional information about the Civil Rights Division and Special Litigation Section, please visit www.justice.gov/crt/special-litigation-section. Those interested in learning more about the FACE act can visit www.justice.gov/crt/freedom-access-clinic-entrances-places-religious-worship. Past FACE Act cases handled by the Special Litigation Section can be found at www.justice.gov/crt/special-litigation-section-cases-and-matters#face.
Justice Department Secures Agreement with Transportation Management Company to Resolve Immigration-Related Discrimination ClaimsRead the Press Release
The Justice Department announced today that it secured a settlement agreement with BreakthroughFuel LLC (Breakthrough), a transportation management company based in Green Bay, Wisconsin, with nationwide operations. The agreement resolves the department’s determination that Breakthrough violated the Immigration and Nationality Act (INA) by discriminating against a non-U.S. citizen worker when the company withdrew its offer to work on a project based on his citizenship status.
“Employers cannot unlawfully exclude people with permission to work in the United States because of their citizenship status,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The department is committed to ensuring that employers do not unlawfully deny workers equal treatment in the workplace.”
After opening an investigation based on a worker’s complaint, the Civil Rights Division’s Immigrant and Employee Rights Section (IER) concluded that Breakthrough, which used a third-party staffing agency to fill a role on Breakthrough’s project, asked the agency to withdraw a job offer to a worker when Breakthrough learned he was not a U.S. citizen. IER also concluded that Breakthrough did not have any legal justification for withdrawing the offer.
Under the terms of the settlement, Breakthrough will pay a civil penalty to the United States, train its employees on the INA’s anti-discrimination requirements, revise its employment policies and processes and be subject to monitoring by the department. During the course of IER’s investigation, Breakthrough and the staffing agency provided the worker with monetary compensation to address his claim of lost wages.
IER is responsible for enforcing the anti-discrimination provision of the INA. Among other things, the statute prohibits discrimination based on citizenship status and national origin in hiring, firing or recruitment or referral for a fee, unfair documentary practices and retaliation and intimidation.
Find more information on how employers can avoid discrimination in recruiting and hiring on IER’s website. Learn more about IER’s work and how to get assistance through this brief video. Applicants or employees who believe they were discriminated against based on their citizenship, immigration status or national origin in hiring, firing, recruitment or during the employment eligibility verification process (Form I-9 and E-Verify) or subjected to retaliation, may file a charge. The public can also call IER’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); sign up for a live webinar or watch an on-demand presentation; email [email protected]; or visit IER’s English and Spanish websites. Sign up for email updates from IER.
Joplin Man Sentenced to 22 Years for Meth Trafficking, Illegal FirearmsRead the Press Release
SPRINGFIELD, Mo. – A Joplin, Mo., man has been sentenced in federal court for his role in a conspiracy to distribute methamphetamine and for illegally possessing firearms.
Dustin L. Holden, 34, was sentenced by U.S. District Judge Roseann A. Ketchmark on Friday, Aug. 23, to 22 years and nine months in federal prison without parole.
On Feb. 13, 2024, Holden pleaded guilty to one count of conspiracy to distribute methamphetamine, one count of possessing methamphetamine with the intent to distribute, and one count of possessing firearms in furtherance of a drug-trafficking crime.
Co-defendant Britton D. Friday, 42, of Nixa, Mo., was stopped by a Christian County, Mo., sheriff’s deputy while driving a Dodge Avenger in Ozark, Mo., on Jan. 11, 2022. Friday had 32.8 grams of methamphetamine in his possession and was arrested.
Holden admitted that he sold methamphetamine to Friday and others for approximately $350 per ounce (28 grams).
On Feb. 10, 2022, law enforcement officers executed a search warrant at Holden’s residence and found a black zippered case that contained 187.9 grams of pure methamphetamine. Officers also found a Taurus 9mm handgun, a Smith & Wesson 9mm handgun, a Poly Tech 7.62mm rifle, a Ruger AR15 rifle, and an Anderson Manufacturing AR15 lower assembly (which was reported stolen).
Friday was sentenced on July 16, 2024, to 10 years in federal prison without parole after pleading guilty to his role in the drug-trafficking conspiracy. Friday admitted that he purchased a total of 1.6 kilograms of methamphetamine from Holden.
This case was prosecuted by Supervisory Assistant U.S. Attorney Randall D. Eggert. It was investigated by the Christian County, Mo., Sheriff’s Department, the Jasper County, Mo., Sheriff’s Department, the Ozarks Drug Enforcement Team, and the Drug Enforcement Administration.
Johnstown Man Pleads Guilty to Heroin and Cocaine TraffickingRead the Press Release
JOHNSTOWN, Pa. – A resident of Johnstown, Pennsylvania, pleaded guilty in federal court to a charge of violating federal narcotics laws, United States Attorney Eric G. Olshan announced today.
Rodney Smith, 68, pleaded guilty to Count One of the Superseding Indictment before Senior United States District Judge Kim R. Gibson.
In connection with the guilty plea, the Court was advised that, from in and around January 2021 to in and around June 2021, in the Western District of Pennsylvania, Smith conspired with others to distribute and possess with intent to distribute quantities of heroin, cocaine, and cocaine base in the form commonly known as crack. Smith was intercepted on a federal wiretap obtaining quantities of the drugs that he distributed to others.
Judge Gibson scheduled sentencing for January 13, 2025. The law provides for a total sentence of up to 20 years in prison, a fine of up to $1 million, or both. Under the federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Maureen Sheehan-Balchon is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation’s Laurel Highlands Resident Agency and Homeland Security Investigations conducted the investigation that led to the prosecution of Smith. Additional agencies participating in this investigation include the Bureau of Alcohol, Tobacco, Firearms and Explosives, Internal Revenue Service – Criminal Investigation, United States Postal Inspection Service, Pennsylvania Office of Attorney General, Pennsylvania State Police, Cambria County District Attorney’s Office, Indiana County District Attorney’s Office, Cambria County Sheriff’s Office, Cambria Township Police Department, Indiana Borough Police Department, Johnstown Police Department, Upper Yoder Township Police Department, Richland Police Department, Ferndale Police Department, and other local law enforcement agencies.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Jamaican National Extradited for Scheme to Defraud American CitizenRead the Press Release
A Jamaican national was extradited to the United States and made his initial appearance today in Sioux Falls, South Dakota, following his role in a long-running scheme to defraud a California woman.
Dwayne Anderson, 35, of Hannover, Jamaica, will face federal wire fraud charges. He was arrested, pursuant to the U.S. request for extradition, on July 11, by Jamaican authorities. He has remained in custody in Jamaica since that time.
According to the indictment, from as early as 2010 until September 2017, Anderson participated in a scheme to defraud an American woman. Using phony names, he contacted the victim by telephone, text message, and email and falsely informed her that she had won millions of dollars in a sweepstakes. Anderson persuaded the victim, who believed the defendant’s false representations, to send money to pay various fees and taxes associated with the sweepstakes. He instructed the victim on how, and to whom, to send these payments. Anderson repeatedly contacted the victim with additional requests to pay money and told the victim that her winnings would be forthcoming if she paid the requested money.
Anderson induced the victim to travel to Jamaica in September 2017 by falsely informing her that she would be able to collect her prize winnings. He told the victim to bring $1,600 in cash with her to Jamaica and instructed the victim to give the money to a driver that met her at the airport. The victim paid the purported fees but never received any of her purported winnings.
“The Justice Department’s Consumer Protection Branch is committed to bringing transnational criminals who defraud Americans to justice, wherever they are located,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “Ensuring that those who perpetrate these types of fraud schemes are held accountable is a priority of the department, and I thank the government of Jamaica for its assistance extraditing the defendant to face charges here in the United States.”
“Making a living by exploiting the trust of Americans and draining their hard-earned savings is despicable,” said U.S. Attorney Alison Ramsdell for the District of South Dakota. “The District of South Dakota, working alongside our law enforcement partners, will pursue and prosecute anyone who engages in criminal acts that harm Americans.
“Collaboration between international law enforcement partners is critical to protecting the international rule of law and the U.S. Mailstream,” said Inspector in Charge Eric Shen of the U.S. Postal Inspection Service (USPIS) Criminal Investigations Group. “The U.S. Postal Inspection Service is committed to protecting Americans from transnational crime and is grateful to our partners in Jamaica for assistance in bringing Anderson to Justice.”
Anderson is charged with eight counts of wire fraud filed in the U.S. District Court for the District of South Dakota in February 2023 and was unsealed upon the defendant’s extradition to the United States on Aug. 22. If convicted, Anderson faces a maximum penalty of 20 years in prison for each count.
USPIS investigated the case. The Jamaica Constabulary Force provided critical assistance. The Justice Department’s Office of International Affairs worked with law enforcement partners in Jamaica to secure the arrest and extradition of Anderson.
Trial Attorneys Brandon Robers and Edward Emokpae of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Ann Hoffman for the District of South Dakota prosecuted the case.
The Justice Department continues to investigate and bring charges in other similar matters involving attempts to defraud residents of the United States. If you or someone you know is age 60 or older and has experienced financial fraud, experienced professionals are standing by at the National Elder Fraud Hotline 1-833-FRAUD-11 (1-833-372-8311). This Justice Department hotline, managed by the Office for Victims of Crime, can provide personalized support to callers by assessing the needs of the victim and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is open Monday through Friday from 10:00 a.m. to 6:00 p.m. ET. English, Spanish and other languages are available.
More information about the department’s efforts to help American seniors is available at its Elder Justice Initiative webpage www.justice.gov/elderjustice. For more information about the Consumer Protection Branch and its enforcement efforts visit www.justice.gov/civil/consumer-protection-branch. Elder fraud complaints can be filed with the FTC at www.reportfraud.ftc.gov/ or at 877-FTC-HELP. The Justice Department provides a variety of resources relating to elder fraud victimization through its Office for Victims of Crime, at www.ovc.gov.
For more information about the Consumer Protection Branch and its fraud enforcement efforts, visit www.justice.gov/civil/consumer-protection-branch.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
JBER soldier indicted on child pornography chargesRead the Press Release
ANCHORAGE, Alaska – A federal grand jury in Alaska returned an indictment on Thursday charging an Army soldier with child pornography offenses.
The defendant, Seth Herrera, 34, who is stationed at Joint Base Elmendorf-Richardson in Anchorage, was arrested on August 23, 2024.
According to court documents, Herrera transported, received and possessed files depicting child sexual abuse. Herrera also allegedly used artificial intelligence (AI) to generate child sexual abuse materials (CSAM) depicting minors known to him.
Court documents further allege that law enforcement uncovered tens of thousands of visual depictions of the violent sexual abuse of children as young as infants on cellphones belonging to the defendant. Herrera also allegedly used encrypted messaging applications and network applications to find, receive and download CSAM.
Herrera is charged with one count of transportation of child pornography, one count of receipt of child pornography and one count of possession of child pornography. The defendant is currently scheduled for his initial court appearance on August 27, 2024, before U.S. Magistrate Judge Reardon of the U.S. District Court for the District of Alaska. If convicted, he faces a mandatory minimum penalty of 5 years in prison and up to 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
“The misuse of cutting-edge generative AI is accelerating the proliferation of dangerous content, including child sexual abuse material – so the Department of Justice is accelerating its enforcement efforts,” said Deputy Attorney General Lisa Monaco. “As alleged, the defendant used AI tools to morph images of real kids into horrific child sexual abuse material. Criminals considering the use of AI to perpetuate their crimes should stop and think twice – because the Department of Justice is prosecuting AI-enabled criminal conduct to the fullest extent of the law and will seek increased sentences wherever warranted.”
"Technology may change, but our commitment to protecting children will not,” said S. Lane Tucker, U.S. Attorney for the District of Alaska. “We will aggressively pursue those who produce and traffic in child sexual abuse material (CSAM), no matter how that material was created. Put simply, CSAM generated by AI is still CSAM, and those who sexually exploit children, through whatever technological means, will be held accountable by our office in conjunction with our law enforcement partners, for justice and the safety of our children."
“The charges against Herrera, a U.S. military soldier, for trafficking and generating child sexual abuse materials using artificial intelligence represent a profound violation of trust as well as preview of the challenges law enforcement continues to face in this evolving threat to our children” said Special Agent in Charge Robert Hammer of Homeland Security Investigations (HSI) Pacific Northwest Division. “This appalling misconduct undermines Herrera’s commitment to defending both our nation and its most vulnerable members.”
U.S. Attorney S. Lane Tucker for the District of Alaska and Special Agent in Charge Robert Hammer of Homeland Security Investigations (HSI) Pacific Northwest operations made the announcement.
The Department of Homeland Security Investigations (HSI) and the Army Criminal Investigation Division are investigating the case. If anyone has information concerning Herrera’s alleged actions or may have encountered someone in person or online using the name Seth Herrera, please contact the HSI tip line at 1-877-447-4847.
Assistant U.S. Attorney Mac Caille Petursson and Trial Attorney Rachel L. Rothberg of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) are prosecuting the case.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Indianapolis Registered Sex Offender Sentenced to 44 Years in Federal Prison for Sexually Exploiting Eleven-Year-Old over SnapchatRead the Press Release
INDIANAPOLIS—Sonny Dale Applegate, 27, of Indianapolis, has been sentenced to forty-four years in federal prison, followed by a lifetime of supervised release, after pleading guilty to two counts of sexual exploitation of a child and one count of committing a felony offense while required to register as a sex offender.
According to court documents, on December 17, 2020, Applegate was convicted of possession of child pornography in Marion County and sentenced to 4 years’ imprisonment, with nearly the entire sentence suspended to probation. At the time Applegate committed the following offenses, he was on probation because of that conviction.
Despite being on probation and subject to stringent restrictions, Applegate reoffended. Between August 1 and September 12, 2022, Applegate used Snapchat to communicate with a child he knew was underage. At the time, the victim was an eleven-year-old child residing in Missouri. Through Snapchat, Applegate engaged in graphically explicit sexual chat with the child and routinely demanded that they create and send him images and videos of themselves engaged in sexually explicit conduct that he directed.
On September 12, 2022, during a routine probation visit, Applegate’s probation officer discovered that he was in possession of a Samsung Galaxy cell phone hidden under a pillow. A forensic investigation recovered the child sex abuse material of the child, and more than 600 images or videos of child sex abuse material involving other children that he had collected from the Internet.
Applegate must also pay $10,000 in restitution and is required to register as a sex offender wherever he lives, works, or goes to school, pursuant to state law.
“Every family should know that social media apps like Snapchat are not safe spaces for young children and are often hunting grounds for predators who seek gratification from their exploitation,” said Zachary A. Myers, U.S. Attorney for the Southern District of Indiana “The federal prison sentence imposed here ensures that the public will be protected from this offender for many decades to come. Other online predators should take notice that the Indiana Internet Crimes Against Children Task Force, including the FBI, and our federal prosecutors, will work tirelessly to hold them accountable and make our children safer from abuse.”
"This sentence reflects the profound harm the defendant caused the victim and should serve as a warning that those who exploit children will be held accountable,” said FBI Indianapolis Special Agent in Charge Herbert J. Stapleton. “The FBI and our law enforcement partners will continue our unwavering commitment to ensure we protect vulnerable children from such heinous crimes.”
The FBI’s Indianapolis Field Office investigated this case, with valuable assistance provided by Indianan Internet Crimes Against Children Task Force, Marion County Probation, and the FBI’s Kansas City, Missouri, Field Office. The sentence was imposed by U.S. District Judge James R. Sweeney II.
U.S. Attorney Myers thanked Assistant U.S. Attorney Tiffany J. Preston, who prosecuted this case.
This investigation was conducted by the Indiana Internet Crimes Against Children (ICAC) Task Force, a multiagency task force led by the Indiana State Police that investigates and prosecutes persons who use the internet to sexually exploit or entice children. Each year, Indiana ICAC investigators evaluate thousands of tips, investigate hundreds of cases, and rescue dozens of children from ongoing sexual abuse. Visit https://www.in.gov/isp/icactf/ to learn more about their efforts.
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 U.S. Attorneys’ Offices and the 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.
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Hungarian National Arrested on Charges of Conspiring to Export U.S. Military-Grade Radios to Russian Government End UsersRead the Press Release
The Justice Department unsealed a criminal complaint charging Hungarian national Bence Horvath with violations of U.S. export controls targeting Russia, including by conspiring with others to illegally export U.S.-origin radio communications technology to Russian government end users without a license. Horvath is charged by complaint with one count of conspiring to violate the Export Control Reform Act of 2018 (ECRA). He was arrested on arrival at San Francisco International Airport in San Francisco, California, on Aug. 23.
“As alleged, the defendant attempted to purchase military-grade radios for Russian entities using a multinational procurement chain to evade law enforcement,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “The Justice Department remains committed to disrupting and holding accountable criminal networks that continue to fuel Russian aggression abroad and threaten our collective security.”
“Targeting illicit global procurement networks that operate in the shadows to equip the Russian government is of the highest priority to BIS,” said Assistant Secretary for Export Enforcement Matthew S. Axelrod of the Commerce Department’s Bureau of Industry and Security (BIS). “As Horvath’s arrest demonstrates, it doesn’t matter where in the world you operate – when the United States believes your conduct violates our export laws, we take action.”
“This defendant allegedly sought to skirt U.S. export controls put in place to protect our national security and to address Russia’s unprovoked full-scale invasion of Ukraine,” said U.S. Attorney Matthew M. Graves for the District of Columbia. “We will continue to work with our partners to bring to justice the people who scheme to secure U.S. technology in violation of U.S. laws.”
According to the court documents, Horvath and others managed a multinational procurement network that contracted directly with various entities in the Russian government and worked on large scale projects such as the construction of operational radio communications systems in Russia’s Kursk region along the Russian/Ukrainian border. The complaint alleges that Horvath himself arranged to purchase U.S.-origin radio communications technology and smuggle such technology to Russian government end-users through a network of affiliates located in Spain, Serbia, Hungary, Latvia, and elsewhere.
Beginning at least around January 2023, Horvath and others in his network initiated discussions with a small U.S. radio distribution company about procuring and exporting to Russia U.S.-manufactured military-grade radios and related accessories. Over the next several months, Horvath continued his efforts to secure those items, which he intended to transship to Russia via a freight forwarder in Latvia.
As part of the conspiracy, Horvath purchased 200 of the military-grade radios and intended to export them to Russia, but he was not successful. U.S. Customs and Border Protection detained the shipment, preventing the radios from falling into the hands of prohibited Russian end users.
Homeland Security Investigation, Defense Criminal Investigative Service and Department of Commerce are investigating the case.
Assistant U.S. Attorneys Christopher Tortorice and Maeghan Mikorski for the District of Columbia and Trial Attorney Sean Heiden of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case.
Today’s actions were coordinated through the Justice and Commerce Departments’ Disruptive Technology Strike Force and the Justice Department’s Task Force KleptoCapture. 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. 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.
A complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Hungarian National Arrested on Charges of Conspiring to Export U.S. Military-Grade Radios to Russian Government End UsersRead the Press Release
WASHINGTON – Bence Horvath, 46, of Spain, was arrested in San Francisco, California on charges, unsealed today, that he conspired with others to illegally export U.S.-origin radio communications technology to Russian government end users without a license.
The arrest and charges were announced today by U.S. Attorney Matthew M. Graves, Assistant Attorney General for National Security Matthew Olsen, Special Agent in Charge Eric DeLaune of Homeland Security Investigations (HSI) New Orleans Field Office, Special Agent in Charge Darrin K. Jones of the Defense Criminal Investigative Service (DCIS) Southeast Field Office, and Special Agent in Charge Trey McClish of the Department of Commerce Office of Export Enforcement (DOC) Dallas Field Office.
Horvath was arrested on arrival at San Francisco International Airport in San Francisco, California on August 23, 2024. He is charged by complaint with one count of conspiring to violate the Export Control Reform Act of 2018 (“ECRA”). According to the complaint, Horvath and others managed a multinational procurement network that contracted directly with various entities in the Russian government and worked on large scale projects such as the construction of operational radio communications systems in Russia’s Kursk region along the Russian/Ukrainian border. The complaint alleges that Horvath himself arranged to purchase U.S.-origin radio communications technology and smuggle such technology to Russian government end-users through a network of affiliates located in Spain, Serbia, Hungary, Latvia, and elsewhere.
“This defendant allegedly sought to skirt U.S. export controls put in place to protect our national security and to address Russia’s unprovoked invasion of Ukraine,” said U.S. Attorney Graves. “We will continue to work with our partners to bring to justice those who scheme to secure U.S. technology in violation of U.S. laws.”
“As alleged, the defendant attempted to purchase military-grade radios for Russian entities using a multinational procurement chain to evade law enforcement,” said Assistant Attorney General Olsen. “The Justice Department remains committed to disrupting and holding accountable criminal networks that continue to fuel Russian aggression abroad and threaten our collective security.”
“HSI protects national security by defending our U.S. import and export laws,” said Special Agent in Charge DeLaune. “This criminal thought he could exploit our laws for nefarious purposes, but thanks to HSI special agents and our partners at the Defense Criminal Investigative Service, he was stopped in his tracks.”
“Securing DoD technology and innovation from foreign adversaries is critical to U.S. national security,” said Special Agent in Charge Jones. “DCIS and our partners remain committed to protecting American-made military and dual-use technologies by using every tool at our disposal, and we’ll never rest in our pursuit of those who intend to harm the United States and our allies.”
“Targeting illicit global procurement networks that operate in the shadows to equip the Russian government is of the highest priority to BIS,” said Assistant Secretary for Export Enforcement Matthew S. Axelrod. “As Horvath’s arrest demonstrates, it doesn’t matter where in the world you operate – when the United States believes your conduct violates our export laws, we take action.”
According to the complaint, beginning at least around January 2023, Horvath and others in his network initiated discussions with a small U.S. radio distribution company about procuring and exporting to Russia U.S.-manufactured military-grade radios and related accessories. Over the next several months, Horvath continued his efforts to secure those items, which he intended to transship to Russia via a freight forwarder in Latvia.
As part of the conspiracy, Horvath purchased 200 of the military-grade radios and intended to export them to Russia. But he was not successful, as U.S. Customs and Border Protection detained the shipment, preventing the radios from falling into the hands of prohibited Russian end users.
This case is being investigated by the Department of Homeland Security Investigation’s New Orleans, Louisiana Field Office, the Defense Criminal Investigative Service, and the Department of Commerce. Assistance was provided by the U.S. Attorney’s Office for the Northern District of California.
The case is being prosecuted by Assistant U.S. Attorneys Christopher Tortorice and Maeghan Mikorski of the U.S. Attorney’s Office for the District of Columbia and Trial Attorney Sean Heiden of the National Security Division’s Counterintelligence and Export Control Section with assistance from Paralegal Specialists Kate Abrey and Jorge Casillas, of the USAO-DC.
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.
A complaint is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Gate City Pharmacist Sentenced for Tampering with OxycodoneRead the Press Release
ABINGDON, Va. – A Gate City, Virginia pharmacist who tampered with oxycodone and hydromorphone was sentenced last week to 24 months in federal prison.
Dillon West Breeding, 34, pled guilty in June 2024 to one count of tampering with consumer products.
“Ensuring the integrity of our prescription drugs is vital to maintaining the public’s confidence in our healthcare system,” United States Attorney Christopher R. Kavanaugh said today. “When patients go to the pharmacy, they trust the medicines they receive are legitimate, and prosecutions like this one go a long way towards ensuring that trust. I am grateful to the FDA, Virginia Department of Health Professions, Virginia State Police, and the Gate City Police for bringing this important matter forward.”
“FDA-OCI remains committed to safeguarding the drug supply chain from individuals who endanger public health and safety by tampering with products,” said George Scavdis, Special Agent in Charge, FDA Office of Criminal Investigations, Metropolitan Washington Field Office. “When pharmacists betray their customers’ trust by tampering with narcotic medications, they not only risk causing needless suffering from ineffective substitutes but also put lives at risk by introducing potentially harmful substances into the drug supply chain. The foundational work of the Gate City Police Department and our valued partnership with the Virginia State Police were integral to our efforts in safeguarding public health and safety in this case.”
According to court documents, Breeding swapped oxycodone tablets with prednisone, a steroid used to treat inflammation, and replaced hydromorphone tablets with leflunomide, a drug used to treat rheumatoid arthritis.
Additionally, Breeding would dispense medication to patients and short them pills, keeping the additional pills for himself.
Because Breeding tampered with these products, a pharmacist could have filled and dispensed the wrong drug to a customer, placing them in danger of death or bodily injury.
The Food and Drug Administration - Office of Inspector General, the Virginia Department of Health Professions, along with the Gate City Police Department and the Virginia State Police, investigated the case.
Assistant U.S. Attorney Carrie Macon prosecuted the case for the United States.
Former Willard Mayor Sentenced for $300,000 Fraud SchemeRead the Press Release
SPRINGFIELD, Mo. – A former mayor and alderman of Willard, Mo., was sentenced in federal court today for a five-year-long scheme in which he used personal identity information to steal nearly $300,000 from more than 500 truck drivers who worked for his employer.
Corey Louis Hendrickson, 46, of Springfield, Mo., was sentenced by U.S. District Judge Brian C. Wimes to three years in federal prison without parole. The court also ordered Hendrickson to pay $298,737 in restitution.
On Oct. 24, 2023, Hendrickson pleaded guilty to one count of wire fraud and one count of aggravated identity theft. Hendrickson, who served as Willard’s mayor from 2015 to 2021 before being elected as an alderman in 2022, resigned from his position on the Willard Board of Aldermen the same day.
Hendrickson admitted that he gained unauthorized access to the fuel expense accounts of more than 500 individuals and conducted more than 1,000 fraudulent transactions that resulted in at least $298,737 being stolen from his victims. Hendrickson’s fraud scheme lasted almost five years, from Sept. 9, 2016, to Aug. 17, 2021.
Hendrickson worked as a fleet dispatcher for Prime, Incorporated, a freight transportation and logistics trucking company that is headquartered in Springfield. Prime contracted with ComData to serve as a payment processor and issuer of fleet fuel cards, and to maintain the financial accounts of Prime drivers that were used to pay for fuel costs as needed by the truck drivers. Prime put funds into each driver’s ComData account, which was then utilized for driving expenses such as fuel. ComData cards were used by the drivers like a bank card.
Hendrickson used his computer access to steal the identity information of drivers and withdraw nearly $300,000 from the accounts intended to pay for the fuel costs for drivers employed by Prime. He transferred the stolen funds into his personal bank accounts.
According to court documents, Hendrickson’s victims incurred losses that ranged between less than $100 to $6,495, with the average loss of a few hundred dollars for each Prime driver’s account.
This case was prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by the U.S. Secret Service and the Springfield, Mo., Police Department.
Former Town of Cortlandt Employee and Business Owner Plead Guilty to $2.4 Million Environmental Crime SchemeRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today the guilty pleas of GLENN GRIFFIN, the owner, president, and principal of Griffin’s Landscaping Corporation, and ROBERT DYCKMAN, the former Assistant General Foreman for the Town of Cortlandt, in a scheme in which DYCKMAN gave GRIFFIN unauthorized access to the Town of Cortlandt’s Arlo Lane facility to dump loads of unauthorized materials. After dumping these loads, GRIFFIN received payments from the Town for hauling away the very materials that GRIFFIN had illegally dumped. GRIFFIN also pled guilty to a separate bid-rigging scheme. GRIFFIN and DYCKMAN pled guilty today before U.S. Magistrate Judge Victoria Reznik.
U.S. Attorney Damian Williams said: “Robert Dyckman, a former Town of Cortlandt employee, used his important public position to enrich himself and damage public land and fragile wetlands by allowing Glenn Griffin, a business owner and president, to illegally dump harmful, unauthorized materials on public property. Brazenly, Griffin then billed and received payments from the Town for removing and hauling away the very materials that he had illegally dumped. Today, thanks to our law enforcement partners and the dedicated prosecutors of this Office, Griffin and Dyckman have admitted to their crimes and must pay $2.4 million in restitution to their victims. Today’s pleas are a reminder that this Office will bring to justice any public official or business leader who defrauds the public and causes damage to our environment.”
According to allegations in the Indictment and Superseding Informations and statements made in public filings and court proceedings:
Illegal Dumping Scheme
From 2018 until February 2020, GRIFFIN and DYCKMAN engaged in an unauthorized dumping scheme. DYCKMAN gave GRIFFIN and his employees unauthorized access to Arlo Lane, a Cortlandt facility, to dump hundreds of large truckloads of unauthorized materials such as thick concrete, cement with rebar, tiles, bricks, large rocks, and soil. After the illegal dumping, GRIFFIN billed and received payments from the Town of Cortlandt for removing and hauling away the very materials that GRIFFIN had illegally dumped at Arlo Lane with DYCKMAN’s assistance.
DYCKMAN generally allowed GRIFFIN and his employees access to Arlo Lane on Saturdays or after working hours. To carry out the scheme, DYCKMAN would attempt to clear senior Town of Cortlandt management away from Arlo Lane around the time of the unauthorized dumping. When DYCKMAN arranged for a subordinate Town of Cortlandt worker to work overtime when GRIFFIN was dumping unauthorized loads, DYCKMAN would falsely record the worker’s overtime as having occurred during the week in order to conceal the scheme.
In exchange for access to Arlo Lane, GRIFFIN paid DYCKMAN cash bribes.
GRIFFIN and DYCKMAN have agreed to pay the Town of Cortlandt and the Westchester Land Trust, a 501(c)(3) tax-exempt organization which owns damaged wetlands abutting the Town of Cortlandt’s Arlo Lane property, a total of $2.4 million to remediate and restore their property following GRIFFIN and DYCKMAN’s criminal conduct.
Bid-Rigging Scheme
Between 2015 and 2018, GRIFFIN also engaged in a bid-rigging scheme. GRIFFIN defrauded the village of Croton-on-Hudson for work on its schools, and the hamlet of Verplanck for work at its fire department. GRIFFIN made sham, non-competitive, and inflated bids on behalf of entities that GRIFFIN did not work for or have authorization to submit bids on behalf of, so that GRIFFIN would be the low bidder in a pool of purportedly competitive bids and receive public money for work on the projects. Based on these sham, non-competitive, and inflated bids, GRIFFIN was awarded contracts with a combined value exceeding $133,000.
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GRIFFIN, 55, of Cortlandt Manor, New York pled guilty to one count of conspiracy to commit bribery and one count of conspiracy to commit wire fraud, each of which carries a maximum sentence of 5 years in prison. DYCKMAN, 52, of Verplanck, New York, pled guilty to one count of conspiracy to commit mail fraud, which carries a maximum sentence of 5 years in prison. GRIFFIN and DYCKMAN are both scheduled to be sentenced by U.S. District Judge Vincent L. Briccetti on December 5, 2024.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Williams praised the outstanding investigative work of the Federal Bureau of Investigation and the Westchester County Police Department in this investigation. Mr. Williams also thanked the Westchester County District Attorney’s Office and the New York City Department of Investigation for their assistance in the investigation.
This case is being prosecuted by the Office’s White Plains Division. Assistant U.S. Attorneys David R. Felton and James McMahon are in charge of the prosecution.
Former Marine convicted of receiving and possessing thousands of images and videos of child sexual abuseRead the Press Release
ALEXANDRIA, Va. – A federal judge convicted a former U.S. Marine today on charges of receiving and possessing child sexual abuse material (CSAM).
According to court records and evidence presented at trial, in February 2021, Eman Goodwin, 33, attempted to obtain CSAM from a CSAM trafficker on Kik, who was later convicted of production of child pornography. Goodwin told the trafficker he was specifically looking for “younger than HS” and “12 and under.”
On March 24, 2022, the FBI executed a search warrant and seized 21 electronic devices from Goodwin’s apartment, his pocket, and his car. Forensic examination of the devices revealed that Goodwin used two laptops to download CSAM from the Internet and stored the CSAM on an external hard drive. The hard drive contained nearly 5,000 images and videos depicting children, including prepubescent children, engaged in sexually explicit conduct and bestiality. Goodwin categorized the files into folders with explicit titles, including “CP FULL” and “under 18 nude girl vids.” The defendant also saved hundreds of CSAM files on three cell phones, including on the phones from his pocket and his car.
Goodwin faces a mandatory minimum of five years in prison when sentenced on Dec 13. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Stanley M. Meador, Special Agent in Charge of the FBI’s Richmond Field Office; and Brian Platt, Special Agent in Charge of the Naval Criminal Investigative Service (NCIS) Washington D.C. Field Office, made the announcement after Senior U.S. District Judge Claude M. Hilton entered the verdict.
Assistant U.S. Attorneys Lauren Halper and Seth Schlessinger are 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 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.
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. 1:23-cr-161.
Former Kern County Man Sentenced to 20 Years in Prison for Sexual Exploitation of a MinorRead the Press Release
FRESNO, Calif. — James Patrick Breedlove III, 34, formerly of Bakersfield, was sentenced today to 20 years and 10 months in prison to be followed by a lifetime term of supervised release for sexual exploitation of a minor, U.S. Attorney Phillip A. Talbert announced.
According to court documents, between January 2019 and August 2020, Breedlove knowingly coerced minors to engage in sexually explicit conduct for the purpose of producing images and videos of such conduct. In January 2020, Breedlove posed as a 16-year-old to obtain images and videos of a minor victim engaging in sexually explicit conduct. After receiving one such image, Breedlove threatened to send it to other children at the minor victim’s school if she did not send more images and videos of herself engaging in sexually explicit conduct.
Court documents also indicate that Breedlove used Snapchat to contact multiple other minor victims between the ages of 13 and 17 years old. By misrepresenting his identity and threatening to distribute the images, Breedlove coerced other minor victims to send images and videos of themselves engaging in sexually explicit conduct.
This case was the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Brittany M. Gunter prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet-safety education.
El Departamento de Justicia llega a un acuerdo con una compañía de gestión de transporte que resuelve acusaciones de discriminación relacionada con la inmigraciónRead the Press Release
El Departamento de Justicia anunció hoy que ha llegado a un acuerdo conciliatorio con BreakthroughFuel, LLC (Breakthrough), una compañía de gestión de transporte con sede en Green Bay, Wisconsin, con operaciones a nivel nacional. El acuerdo resuelve la determinación del Departamento que Breakthrough infringió la ley de Inmigración y Nacionalidad (INA, por sus siglas en inglés) al discriminar a un trabajador no ciudadano de los EE. UU. cuando la empresa retiró su oferta de trabajar en un proyecto en función de su estatus de ciudadanía.
«Los empleadores no pueden excluir ilegalmente a personas con permiso para trabajar en los Estados Unidos debido a su estatus de ciudadanía», afirmó Kristen Clarke, la Fiscal General Auxiliar de la División de Derechos Civiles del Departamento de Justicia. «El Departamento se compromete a garantizar que los empleadores no nieguen ilegalmente a los trabajadores el trato igualitario en el lugar de trabajo».
Después de abrir una investigación basada en la queja de un trabajador, la Sección de Derechos de Inmigrantes y Empleados (IER, por sus siglas en inglés), de la División de Derechos Civiles, concluyó que Breakthrough, que utilizó una agencia externa de dotación de personal para cubrir un puesto en el proyecto de Breakthrough, pidió a la agencia que retirara una oferta de trabajo a un trabajador cuando Breakthrough se enteró de que no era un ciudadano de los EE. UU. Por otra parte, la IER también concluyó que Breakthrough no tenía ninguna justificación legal para retirar la oferta.
Conforme los términos del acuerdo, Breakthrough pagará una sanción civil a los Estados Unidos, capacitará a sus empleados en cuanto a los requisitos antidiscriminatorios de la INA, revisará sus políticas de empleo y se someterá a supervisión por parte del Departamento. Durante el transcurso de la investigación de IER, Breakthrough y la agencia de dotación de personal proporcionaron al trabajador una compensación monetaria para abordar su reclamación de salarios perdidos.
La IER es responsable de hacer cumplir la disposición antidiscriminatoria de la INA. Entre otras cosas, la ley prohíbe la discriminación por motivos de estatus de ciudadanía y nacionalidad de origen en los procesos de contratación, despido o reclutamiento o recomendación por comisión, prácticas documentales injustas y represalias e intimidación.
Puede obtener más información sobre cómo los empleadores pueden evitar la discriminación en la contratación y el reclutamiento en el sitio web de la IER. Aprenda más sobre el trabajo de la IER y cómo conseguir ayuda mediante este vídeo corto. Aquellos aspirantes o empleados que creen haber sido discriminados por motivos de su ciudadanía, estatus migratorio o nacionalidad de origen en los procesos de contratación, despido, reclutamiento o verificación de la elegibilidad para trabajar (Formulario I-9 e E-Verify) o sujetos a represalias pueden presentar una denuncia. El público también puede llamar a la línea directa de la IER para trabajadores al 1-800-255-7688 (1-800-237-2515, TTY para personas con discapacidades auditivas); llamar a la línea directa de la IER para empleadores al 1-800-255-8155 (1-800-237-2515, TTY para personas con discapacidades auditivas); inscribirse a un seminario en línea gratuito o visualizar una presentación a la carta; enviar un correo electrónico a [email protected]; o visitar los sitios web de la IER en inglés y español. Inscríbase para recibir actualizaciones por correo electrónico desde la IER.
Court Sentences Mobile Man to 10 Years Imprisonment for Methamphetamine Trafficking with a FirearmRead the Press Release
MOBILE, AL – On August 23, 2024, United States District Court Judge, Kristi K. DuBose sentenced Tymel Rashad Franklin to 120 months imprisonment for possession with the intent to distribute methamphetamine and possession of a firearm in furtherance of the drug trafficking.
Documents filed with the court established that on January 6, 2021, Mobile Police Department officers used a confidential informant to purchase approximately one ounce of methamphetamine from the defendant. When Franklin sold the methamphetamine to the informant, Franklin was armed with a Glock 32 handgun in his waistband. The defendant also had a digital scale with methamphetamine and marijuana residue on it in his pocket, and also had $2,649 in cash at the time. The defendant had been previously convicted of receiving stolen property and possession of marijuana first degree in 2015.
The case was investigated by the Bureau of Alcohol Tobacco and Firearms and the City of Mobile Police Department. The case was prosecuted by Assistant United States Attorney George F. May.
Colorado Dentist Charged with Tax EvasionRead the Press Release
A federal grand jury in Denver returned an indictment unsealed on Friday charging a Colorado dentist with six counts of tax evasion for his use of an illegal tax shelter.
According to the indictment, since 2014, Ryan Ulibarri owned and operated Ulibarri Family Dentistry in Fort Collins. In 2016, Ulibarri allegedly purchased a tax shelter for $50,000. From 2017 through 2022, Ulibarri allegedly used this tax shelter to conceal from the IRS over $3.5 million in income he earned.
To effectuate the tax shelter, Ulibarri allegedly signed trust instruments purporting to create three trusts and a private foundation and opened bank accounts in the name of each entity. He also allegedly re-structured his dental practice so that the majority of it was purportedly owned by one of the trusts. Ulibarri allegedly transferred nearly all the funds he earned from his dental practice to the bank accounts for the trusts and foundation he created. He allegedly used those funds to pay personal expenses, such as the mortgage on his home and his credit card bills. Finally, he allegedly filed false tax returns for himself and the trusts that assigned the income he earned and controlled from his practice to the trusts.
In total, Ulibarri is alleged to have caused a tax loss to the IRS of over $1 million.
If convicted, Ulibarri faces a maximum penalty of five years in prison for each count of tax evasion. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement.
IRS Criminal Investigation is investigating the case.
Trial Attorneys Amanda R. Scott and Lauren K. Pope and Senior Litigation Counsel Corey J. Smith of the Tax Division are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Ulibarri Indictment.pdfCity of Los Angeles Agrees to Pay $38.2M to Resolve False Claims Act Suit for Alleged Misuse of Department of Housing and Urban Development Grant FundsRead the Press Release
The City of Los Angeles has agreed to pay $38.2 million to resolve allegations that it knowingly failed to meet federal accessibility requirements when it sought and used Department of Housing and Urban Development (HUD) grant funds for multifamily affordable housing.
HUD provides grant funds to Los Angeles and other cities to support housing and community development, including building and rehabilitating affordable multifamily housing units. Recipients of federal housing development funds must comply with federal accessibility laws, including Section 504 of the Rehabilitation Act, Americans with Disabilities Act and Fair Housing Act. These laws prohibit discrimination against people with disabilities in activities receiving federal financial assistance. For example, the laws require 5% of all units in certain federally-assisted multifamily housing be accessible for people with mobility impairments and an additional 2% be accessible for people with visual and auditory impairments. Recipients of federal funds must also implement other housing-related accessibility requirements, including maintaining a publicly available list of accessible units with a description of their accessibility features, adopting policies and procedures to ensure that people who need the accessibility features of particular units occupy them and designating at least one city employee to coordinate accessibility efforts.
In 2017, the United States intervened and filed a complaint in a whistleblower action filed under the False Claims Act alleging that, for over a decade, the City of Los Angeles failed to follow federal accessibility laws when building and rehabilitating affordable multifamily properties and failed to make its affordable multifamily housing program accessible to people with disabilities. The United States alleged that the housing was not structurally accessible because of failures like slopes that were too steep, counters that were too high, and thresholds that did not permit wheelchair access. The United States further alleged that the city failed to maintain a publicly available list of accessible units and their accessibility features. The United States alleged that the city, on an annual basis, knowingly and falsely certified to HUD that it complied with these grant requirements despite its failure to do so. Today’s settlement resolves the pending lawsuit.
“This settlement shows that we will hold accountable jurisdictions receiving federal grant money to ensure they satisfy their obligations to make affordable housing accessible to people with disabilities,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “Our years spent litigating this case demonstrate the department’s steadfast commitment to this effort.”
“Municipalities that receive federal grant money for affordable and accessible housing must comply with federal law and honor the rights of people with disabilities,” said First Assistant U.S. Attorney Joseph T. McNally for the Central District of California. “The nearly $40 million settlement here demonstrates our commitment to ensuring municipalities receiving federal funds comply with federal law. We will continue to work with the City of Los Angeles to ensure equal access for individuals with disabilities.”
“By failing to make certain that HUD-funded multifamily housing was appropriately built or rehabilitated to meet federal accessibility requirements, the city discriminated against people with disabilities,” said Inspector General Rae Oliver Davis of HUD. “HUD’s Office of the Inspector General will continue to work with our law enforcement partners to hold accountable those who fail to meet their legal obligations for the housing needs of people with disabilities.”
“The settlement announced today sends a clear message that HUD and its partners at the Department of Justice will work tirelessly to protect the integrity of HUD’s programs and demonstrates the importance of providing accessible housing,” said General Counsel Damon Smith of HUD. “In this instance, HUD determined that the City of Los Angeles fell far short of its responsibilities to provide HUD-funded accessible housing, but the settlement agreement provides a fresh start for HUD and the City to work collaboratively to address the City’s pressing housing needs.”
The False Claims Act permits private parties to file suit on behalf of the United States for false claims and share in a portion of the government’s recovery. The Act permits the United States to intervene and take over responsibility for litigating such an action, as the United States did here. The lawsuit is captioned U.S. ex rel. Ling, et al. v. City of Los Angeles, et al., No. CV11‐00974, and was brought by a Los Angeles resident who uses a wheelchair and the Fair Housing Council of San Fernando Valley, a nonprofit disability rights advocacy group. The private parties’ share of the settlement has not yet been determined.
In 2020, the United States settled for $3.1 million allegations against another defendant in the lawsuit, CRA/LA, the successor of the Community Redevelopment Agency of the City of Los Angeles, a local redevelopment agency that financed and assisted in the development of multifamily affordable housing using local tax monies and federal grants.
The resolutions obtained in this litigation were the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section and U.S. Attorney’s Office for the Central District of California, with assistance from HUD’s Office of General Counsel and Office of Inspector General.
Attorneys William C. Edgar, Jennifer Chorpening, Daniel W. Kastner and Wesley J. Heath of the Civil Division of the Civil Division’s Fraud Section and Assistant U.S. Attorneys Karen Paik and Paul La Scala for the Central District of California handled the case.
The claims resolved by the settlement are allegations only. There has been no determination of liability.
SettlementCity of Los Angeles Agrees to Pay $38.2 Million to Resolve False Claims Act Suit for Alleged Misuse of HUD Grant FundsRead the Press Release
SETTLEMENT AGREEMENTLOS ANGELES – The City of Los Angeles has agreed to pay $38.2 million to resolve allegations that it knowingly failed to meet federal accessibility requirements when it sought and used U.S. Department of Housing and Urban Development (HUD) grant funds for multifamily affordable housing, the Justice Department announced today.
“Municipalities that receive federal grant money for affordable and accessible housing must comply with federal law and honor the rights of people with disabilities,” said First Assistant United States Attorney Joseph T. McNally. “The nearly $40 million settlement here demonstrates our commitment to ensuring municipalities receiving federal funds comply with federal law. We will continue to work with the City of Los Angeles to ensure equal access for individuals with disabilities.”
HUD provides grant funds to Los Angeles and other cities to support housing and community development, including building and rehabilitating affordable multifamily housing units. Recipients of federal housing development funds must comply with federal accessibility laws, including Section 504 of the Rehabilitation Act, the Americans with Disabilities Act and the Fair Housing Act. These laws prohibit discrimination against people with disabilities in activities receiving federal financial assistance.
For example, the laws require five percent of all units in certain federally-assisted multifamily housing be accessible for people with mobility impairments and an additional two percent be accessible for people with visual and auditory impairments.
Recipients of federal funds must also implement other housing-related accessibility requirements, including maintaining a publicly available list of accessible units with a description of their accessibility features, adopting policies and procedures to ensure that people who need the accessibility features of particular units occupy them, and designating at least one city employee to coordinate accessibility efforts.
In 2017, the United States intervened and filed a complaint in a whistleblower action filed under the False Claims Act alleging that, for over a decade, the City of Los Angeles failed to follow federal accessibility laws when building and rehabilitating affordable multifamily properties and failed to make its affordable multifamily housing program accessible to people with disabilities. The United States alleged that the housing was not structurally accessible because of failures like slopes that were too steep, counters that were too high, and thresholds that did not permit wheelchair access. The United States further alleged that the city failed to maintain a publicly available list of accessible units and their accessibility features. The United States alleged that the city, on an annual basis, knowingly and falsely certified to HUD that it complied with these grant requirements despite its failure to do so. Today’s settlement resolves the pending lawsuit.
“This settlement shows that we will hold accountable jurisdictions receiving federal grant money to ensure they satisfy their obligations to make affordable housing accessible to people with disabilities,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “Our years spent litigating this case demonstrate the department’s steadfast commitment to this effort.”
“By failing to make certain that HUD-funded multifamily housing was appropriately built or rehabilitated to meet federal accessibility requirements, the city discriminated against people with disabilities,” said HUD Inspector General Rae Oliver Davis. “HUD’s Office of the Inspector General will continue to work with our law enforcement partners to hold accountable those who fail to meet their legal obligations for the housing needs of people with disabilities.”
“The settlement announced today sends a clear message that HUD and its partners at the Department of Justice will work tirelessly to protect the integrity of HUD’s programs and demonstrates the importance of providing accessible housing,” said General Counsel Damon Smith of HUD. “In this instance, HUD determined that the City of Los Angeles fell far short of its responsibilities to provide HUD-funded accessible housing, but the settlement agreement provides a fresh start for HUD and the City to work collaboratively to address the City’s pressing housing needs.”
The settlement resolves a lawsuit filed under the qui tam or whistleblower provision of the False Claims Act, which permits private parties to file suit on behalf of the United States for false claims and share in a portion of the government’s recovery. The Act permits the United States to intervene and take over responsibility for litigating these cases, as the United States did in 2017 here. The qui tam case is captioned United States ex rel. Ling, et al. v. City of Los Angeles, et al., No. CV11‐00974 (C.D. Cal.), and was brought by a Los Angeles resident who uses a wheelchair and the Fair Housing Council of San Fernando Valley, a nonprofit disability rights advocacy group. A relator share has not yet been determined.
In 2020, the United States settled for $3.1 million allegations against another defendant in the lawsuit, CRA/LA, the successor of the Community Redevelopment Agency of the City of Los Angeles, a local redevelopment agency that financed and assisted in the development of multifamily affordable housing using local tax monies and federal grants.
The resolution obtained in this litigation was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section and the United States Attorney’s Office for the Central District of California, with assistance from HUD’s Office of General Counsel and Office of Inspector General.
The matter was handled by Assistant United States Attorneys Karen Y. Paik and Paul B. La Scala of the Civil Division’s Civil Fraud Section and Justice Department Fraud Section attorneys William C. Edgar, Jennifer Chorpening, Daniel W. Kastner, and Wesley J. Heath of the Civil Division.
The claims resolved by the settlement are allegations only. There has been no determination of liability.
Charlotte Business Owner Convicted of Selling Fraudulently Obtained iPhones Overseas Is Sentenced to PrisonRead the Press Release
CHARLOTTE, N.C. – Rami Mahmod Mhana, 46, of Charlotte, was sentenced to 68 months in prison followed by three years of supervised release today for selling stolen and fraudulently obtained iPhones and other electronic devices to buyers overseas, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. In May 2023, a federal jury convicted Mhana of conspiracy, international transportation of stolen goods, and money laundering,
Jason Byrnes, Special Agent in Charge of the United States Secret Service (USSS), Charlotte Field Office, and Chief Johnny Jennings of the Charlotte Mecklenburg Police Department (CMPD) join U.S. Attorney King in making today’s announcement.
According to court documents, trial evidence, and witness testimony, Mhana was the owner of Wireless City Fashions, Inc. (Wireless City) and Protocol Business Group Inc. (Protocol), located at 441 Bradford Drive in Charlotte, as well as multiple Boost mobile stores in the Charlotte area. From at least May 2017 through October 2019, Mhana purchased thousands of brand-new Apple iPhones and other electronic devices that were stolen and fraudulently obtained. Mhana then sold and shipped the iPhones to the United Arab Emirates (the U.A.E.) and the Hong Kong Special Administrative Region of the People’s Republic of China (Hong Kong).
Court records show that Mhana obtained a significant portion of the stolen and fraudulently obtained devices from multiple local “boosters.” A booster is a person who steals or obtains through fraud goods and products and sells them for profit. Mhana’s store on Bradford Drive was known to local boosters as a place they could sell stolen devices for cash with no questions asked. In fact, as trial evidence established, Mhana provided his employees with a pricelist of how much they should pay for certain new model iPhones and other electronic devices, which was significantly less than retail value of the devices. The Court ordered Mhana to pay restitution in the amount of $3,649,033 to the victims of the fraud scheme. The Court also ordered Mhana to forfeit $229,118 and more than 100 new-in-the box iPhones seized during the investigation.
Mhana will be ordered to report to the federal Bureau of Prisons upon designation of a federal facility.
In a separate case, two Charlotte businessmen were sentenced to prison in August 2023, for orchestrating a similar scheme.
Both cases were the result of the investigative efforts of CMPD and the Secret Service, which have established a fully integrated partnership to combat the most significant organized criminal groups operating in Charlotte. Through this partnership, this unit has successfully leveraged local and federal resources, personnel, expertise and authorities to identify and combat the criminals and criminal organizations that have the largest negative impact on the community.
Assistant U.S. Attorneys Michael E. Savage, William Bozin, and Benjamin Bain-Creed of the U.S. Attorney’s Office in Charlotte prosecuted the cases.
California Lobbying Firm Agrees to Settle Fraud Allegations Involving Paycheck Protection Program LoanRead the Press Release
california_advisors_settlement_agreement_v.1.pdfSACRAMENTO, Calif. — California Advisors LLC, Delaney Hunter, and William Gonzalez have agreed to pay the United States a combined $580,000 in damages and penalties to resolve allegations that they violated the False Claims Act and the Financial Institutions Reform, Recovery and Enforcement Act by receiving a loan under the Paycheck Protection Program (PPP), U.S. Attorney Phillip A. Talbert announced.
Congress created the PPP in March 2020, as part of the Coronavirus Aid, Relief, and Economic Security Act, to provide relief to small businesses experiencing economic hardship during the COVID-19 pandemic. Although many businesses were eligible for these loans, some businesses were not, including those primarily engaged in political or lobbying activities.
In April 2020, California Advisors, a lobbying firm, through its partners Delaney Hunter and William Gonzalez, applied for and received a PPP loan in the amount of $144,340. The Small Business Administration forgave the loan in February 2021. This settlement resolves allegations that California Advisors, Delaney Hunter, and William Gonzalez knowingly made false statements in certifying the business’s eligibility for a PPP loan. As part of the settlement, California Advisors agreed to pay approximately $380,000 in damages under the False Claims Act and approximately $150,000 in civil penalties under the Financial Institutions Reform, Recovery and Enforcement Act. Delaney Hunter and William Gonzalez have agreed to pay $25,000 each for their involvement in the false certification in California Advisors LLC’s PPP loan application and loan forgiveness application.
“The Paycheck Protection Program was a vital resource to struggling small businesses during the darkest hours of the COVID-19 pandemic,” said U.S. Attorney Talbert. “This Office will continue to investigate businesses who took advantage of these funds at the expense of other small businesses.”
SBA’s General Counsel Therese Meers stated, “The favorable settlement in this case is the product of enhanced efforts by federal agencies such as the Small Business Administration working with the U.S. Attorney’s Office, SBA’s Office of Inspector General and other Federal law enforcement agencies, as well as private individuals who uncover fraudulent conduct to recover the product of this fraud as well as penalties.”
The matter was handled by Assistant U.S. Attorney Tara Amin.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across the government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The claims resolved by this settlement are allegations only, and there has been no determination of liability.
Cabell County Man Sentenced to Prison for Role in Methamphetamine Trafficking OrganizationRead the Press Release
HUNTINGTON, W.Va. – Walter Alvin Cremeans, 57, of Culloden, was sentenced today to five years and 10 months in prison, to be followed by three years of supervised release, for possession with intent to distribute methamphetamine. Cremeans 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, on October 28, 2023, a law enforcement officer conducted a traffic stop of a vehicle driven by Cremeans on the 4200 block of Ohio River Road in Huntington. Cremeans admitted that he placed approximately 97 grams of methamphetamine in a cup that was thrown from his vehicle during the traffic stop. The officer located and seized the methamphetamine on the ground outside of Cremeans’ vehicle. Cremeans further admitted that investigators observed him acquiring the seized methamphetamine just before the traffic stop, and that he had arranged to receive the methamphetamine during multiple phone calls that were intercepted by investigators.
Cremeans is 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.
Cremeans is also 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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Burlington County, N.J., Man Sentenced to over Three Years in Prison for Two Business Schemes That Defrauded Investors of Approximately $550,000Read the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Michael Salerno, 55, of Mount Laurel, New Jersey, was sentenced today by United States District Court Judge Paul S. Diamond to 37 months’ imprisonment and ordered to pay restitution in the amount of $549,835 in connection with multiple elaborate schemes that defrauded hundreds of investors out of more than half a million dollars.
Salerno was indicted for the schemes in September of 2020, and in February 2023, pleaded guilty to three counts of wire fraud.
Between September 2016 and at least November 2018, the defendant operated a series of businesses, including Black Diamond Forex, L.P., BDF Trading, L.P., Advanta Capital Markets, Inc., and Advanta FX, each of which purported to be in the business of trading foreign currencies. Using a variety of misrepresentations and omissions, Salerno induced victims to pay advance fees — up-front payments of typically more than $1,000 — in order to be hired by Salerno’s company. He told the victims that, upon their hiring, he would make available to them a pool of $10 million that they could trade on the foreign currency market and take a generous cut of any profits. Each of these representations was false.
To make his fraudulent activities appear legitimate, Salerno held himself out as a sophisticated and successful businessman. He claimed that he had been a profitable currency trader, and to have managed a real estate empire, a portion of which he said he sold for $10 million to fund the currency-trading venture — none of which was true, either. In fact, he declared bankruptcy twice, most recently in 2015, and had been evicted multiple times from rental homes for failure to pay rent. In 2005, he pleaded guilty to federal tax charges and was sentenced to 21 months in prison. He failed to disclose any of this to the victims before taking their money, instead collecting more than $300,000 in advance fees and using the money for his own benefit.
The defendant’s currency-trading scheme came to a halt when he was advised that he was the target of an FBI investigation and the Commodity Futures Trading Commission sought and obtained an injunction against Salerno and his businesses in 2018. However, Salerno turned immediately to a second scheme. Between May 2018 and at least December 2019, he operated a company called AccuOne Financial, Inc., which purported to be in the business of assisting clients in ridding themselves of unwanted automobile leases. It also purported to offer a different set of clients, whose personal credit precluded them from obtaining an automobile lease, access to automobile leases, low-interest vehicle loans, and credit repair services. But Salerno failed to do as promised, instead ripping off both sets of clients. The defendant took the unwanted vehicles from the first set of clients, made few, if any, of the required lease payments, and then gave the vehicles to the second set of clients who could not obtain their own leases, in exchange for substantial monthly fees. The predictable result of this house of cards-style scheme was that the clients who wanted to get out of their leases either continued to make monthly lease payments for cars they no longer had or suffered substantial damage to their credit, and the clients who leased cars from AccuOne often had them repossessed without warning. Salerno netted several hundred thousand dollars from this scheme alone.
“Michael Salerno is a modern-day snake oil salesman,” said U.S. Attorney Romero. “Upon learning that his fraud scheme had caught the FBI’s attention, he didn’t close up shop and clean up his act – he simply pivoted to a different scheme. Today’s sentence holds him accountable for the harm he’s caused and brings a measure of justice for his victims. My office and the FBI are working every day to put scammers and swindlers like this out of business.”
"Under the guise of a businessman, Salerno was truly a criminal, devising schemes built on manipulation and lies, which placed the financial security of his victims at risk,” said Wayne A. Jacobs, Special Agent in Charge of FBI Philadelphia. “The FBI will continue to rigorously pursue those who attempt to enrich themselves through fraudulent means.”
The case was investigated by the FBI and prosecuted by Assistant United States Attorney Matthew Newcomer and former Assistant United States Attorney Christopher J. Mannion.
Bank Employee Is Charged for Alleged Fraud SchemeRead the Press Release
CHARLOTTE, N.C. – A federal grand jury returned a criminal indictment last week against Jaminata Starks, 29, of Charlotte, for her role in a scheme involving fraudulent bank accounts, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Starks had her initial appearance in federal court today before U.S. Magistrate Judge David C. Keesler.
Cardell T. Morant, Special Agent in Charge of Homeland Security Investigations (HSI) in North Carolina and South Carolina, and Chief Johnny Jennings of the Charlotte Mecklenburg Police Department (CMPD), join U.S. Attorney King in making today’s announcement.
According to allegations in the indictment, Starks was employed by a financial institution (Victim Bank) and worked for a branch in Charlotte. As part of her duties, Starks was authorized to, among other things, open new bank accounts for existing customers and transfer funds between customers’ accounts. The indictment alleges that, between April 13, 2022, and May 23, 2022, Starks conspired with others to misuse the Victim Bank’s customers’ personal identifying information (PII) to fraudulently open new bank accounts in the victims’ names and transfer funds out of the victims’ existing accounts into the fraudulent accounts, without the customers’ knowledge or consent. Starks and her co-conspirators then allegedly used various methods to withdraw the stolen funds.
According to the charges, during the scheme, Starks allegedly transferred at least $120,000 from the custody of the Victim Bank and made false entries in the Victim Bank’s books and records. It is further alleged that Starks was offered $1,000 for each fraudulent new account she created. In addition to the charges, the indictment contains a notice for a forfeiture money judgment in the amount of at least $30,000, that the government contends constitutes the proceeds of Starks’s alleged criminal conduct referenced in the indictment.
Starks is charged with conspiring to defraud the United States and to violate the laws of the United States, which carries a maximum penalty of five years in prison; four counts of making false entries in a bank record, which carries a maximum of up to 30 years in prison per count; and four counts of aggravated identity theft, which carries a mandatory two-year prison term, consecutive to any other prison term imposed, per count. Starks was released on bond following her initial appearance.
The charges against Starks are allegations and the defendant is innocent until proven guilty beyond a reasonable doubt in a court of law.
Assistant U.S. Attorney Michael E. Savage of the U.S. Attorney’s Office in Charlotte is prosecuting the case.
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Bakersfield Resident Sentenced for Drug ConspiracyRead the Press Release
FRESNO, Calif. —Jose Luis Zambrano, 40, of Bakersfield, was sentenced today to 12 years and seven months in prison for conspiring to distribute and possess with intent to distribute methamphetamine and heroin, U.S. Attorney Phillip A. Talbert announced. Today’s sentence will run consecutive to his state sentence.
According to court documents, from October 2016 to January 2017, Zambrano sold 1 pound of methamphetamine and nearly 12 ounces of heroin in four separate transactions involving a confidential source. A federal wiretap investigation also revealed that Zambrano was the source of drug supply for Manuel Teodoro Aros, 49, of Santa Maria, from whom law enforcement seized another 2.5 pounds of methamphetamine in March 2017, and, in June 2017, was the intended recipient of 5 ounces of heroin from Jesus Burgos-Luna, 43, a fugitive believed to be running the operation from Mexico. The wiretap investigation ended prematurely when Zambrano and another drug co-conspirator were arrested for murder-related charges.
Zambrano was brought to federal court following his conviction in May 2022 in Kern County Superior Court for solicitation to commit murder. Teodoro Aros previously entered a guilty plea for his involvement in the drug conspiracy and was sentenced to 13 years and eight months in prison.
This case was the product of an investigation by the Drug Enforcement Administration and the Bakersfield Police Department. Assistant United States Attorney Karen A. Escobar prosecuted the case.
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.
Army Soldier Arrested for Using AI to Generate Child PornographyRead the Press Release
An Army soldier stationed at Joint Base Elmendorf-Richardson in Anchorage, Alaska, was arrested last week on criminal charges related to his alleged transportation, receipt and possession of files depicting child sexual abuse, and use of AI to generate sexually explicit images of children.
“The misuse of cutting-edge generative AI is accelerating the proliferation of dangerous content, including child sexual abuse material — so the Department of Justice is accelerating its enforcement efforts,” said Deputy Attorney General Lisa Monaco. “As alleged, the defendant used AI tools to morph images of real kids into horrific child sexual abuse material. Criminals considering the use of AI to perpetuate their crimes should stop and think twice — because the Department of Justice is prosecuting AI-enabled criminal conduct to the fullest extent of the law and will seek increased sentences wherever warranted.”
“As alleged, Seth Herrera possessed thousands of images depicting the violent sexual abuse of children, including infants. He also allegedly used AI to create images depicting the sexual exploitation of children he knew,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “Today’s announcement should serve as yet another warning that the Criminal Division will aggressively pursue those who possess or produce child sexual abuse material, including where the images were generated through AI.”
According to court documents, Seth Herrera, 34, allegedly transported, received and possessed files depicting child sexual abuse. Herrera also allegedly used online AI chatbots to generate realistic child sexual abuse materials (CSAM) depicting minors known to him.
“Technology may change, but our commitment to protecting children will not,” said U.S. Attorney S. Lane Tucker for the District of Alaska. “We will aggressively pursue those who produce and traffic in child sexual abuse material (CSAM), no matter how that material was created. Put simply, CSAM generated by AI is still CSAM, and those who sexually exploit children, through whatever technological means, will be held accountable by our office in conjunction with our law enforcement partners, for justice and the safety of our children.”
“This investigation and indictment are a testament to the dedication of the men and women of Homeland Security Investigations to find and bring to justice those who exploit our nation’s children,” said Executive Associate Director Katrina W. Berger of Homeland Security Investigations (HSI). “Absolutely no child should suffer these travesties, and no person should feel immune from detection and prosecution for these crimes by HSI and its partners in law enforcement.”
“The charges against Herrera, a U.S. military soldier, for trafficking and generating child sexual abuse materials using artificial intelligence represent a profound violation of trust as well as preview of the challenges law enforcement continues to face in this evolving threat to our children” said Special Agent in Charge Robert Hammer of HSI Pacific Northwest Division. “This appalling misconduct undermines Herrera’s commitment to defending both our nation and its most vulnerable members.”
Herrera is charged with one count of transportation of child pornography, one count of receipt of child pornography, and one count of possession of child pornography. He will make his initial court appearance on Aug. 27 before U.S. Magistrate Judge Kyle F. Reardon of the U.S. District Court for the District of Alaska. If convicted, he faces a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
HSI and Army Criminal Investigation Division are investigating the case.
Trial Attorney Rachel L. Rothberg of the Criminal Division’s Child Exploitation and Obscenity Section and Assistant U.S. Attorney Mac Caille Petursson for the District of Alaska are prosecuting the case.
If anyone has information concerning Herrera’s alleged actions or may have encountered someone in person or online using the name Seth Herrera, please contact the HSI tip line at 1-877-447-4847.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
32 Individuals Indicted for Pandemic Unemployment Assistance (PUA) FraudRead the Press Release
SAN JUAN, P.R. – On August 22, 2024, a Federal Grand Jury in the District of Puerto Rico returned 32 separate indictments charging 32 individuals with engaging in fraud to obtain Pandemic Unemployment Assistance (PUA) benefits totaling $981,071, announced W. Stephen Muldrow, United States Attorney for the District of Puerto Rico. The Federal Bureau of Investigation (FBI) and the United States Department of Labor Office of Inspector General (USDOL-OIG) are in charge of the investigations with the assistance of the United States Postal Inspection Service (USPIS) and the Puerto Rico Department of Labor and Human Resources.
According to the indictments, the defendants engaged in schemes to defraud the Puerto Rico Department of Labor and Human Resources (Departamento del Trabajo y Recursos Humanos, “DTRH”) by submitting fraudulent applications to obtain unemployment insurance benefits which contained PUA funds.
Under the provisions of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, persons who were business owners, self-employed workers, independent contractors, or gig workers qualified for federal benefits (PUA) administered by the DTRH if they previously performed such work in Puerto Rico and were unemployed, partially unemployed, unable to work, or unavailable to work due to a COVID-19 related reason. To obtain these federal benefits, individuals could apply online through the DTRH’s web site—www.trabajo.pr.gov. Claimants answered various questions to establish their eligibility and were required to provide personal identifying information, which included their name, mailing address, gender, email, phone number, social security number, and date of birth. Moreover, claimants had to identify a qualifying occupational status and COVID-19 related reason for being out of work. In their application, claimants could also submit several documents as evidence of their income.
If the DTRH approved a claimant’s application, the DTRH would send a check to the claimant via the United States Postal Service for qualified benefits which could contain regular unemployment insurance benefits and federal funds in the form of PUA, Federal Pandemic Unemployment Compensation (FPUC); and Pandemic Emergency Unemployment Compensation (PEUC) benefits.
The indictments charge the 32 individuals with theft of United States’ property—PUA benefits— mail fraud and misuse of Social Security numbers because the defendants engaged in deceptive conduct designed to fraudulently obtain multiple-unemployment checks from the DTRH by using false social security numbers. The defendants received PUA benefits from the DTRH via mail in the form of checks that they were not qualified or authorized to receive.
The defendants charged and the amount of money fraudulently obtained are:
- Alexander Hernández-Casanova ($21,576)
- Héctor Javier Fernández-Porrata ($40,488)
- José Emanuel Serrano ($30,564)
- José Manuel Salinas-Bermúdez ($18,180)
- Kenny A. Cruz-Chévere ($49,476)
- Luis Felipe Cesani-Cintrón ($66,390)
- Michael Martínez-Torres ($21,444)
- Juan José Reyes-Hernaiz ($35,022)
- Neyscha Lee Font-Fontanez ($22,908)
- Christopher J. Mercedes-Sánchez ($30,168)
- Taylor Bryan Rentas-Día ($22,374)
- Danny Olmo-Quiñones ($22,440)
- Francisco J. Carrillo-Hernaiz ($43,152)
- Julio Omar Rodríguez-Algarín ($31,632)
- Alexander Barbosa-Concepción ($23,304)
- Bryan Omar De Jesús-Pizarro ($53,636)
- Bryan De Jesús-Acevedo ($17,580)
- Carlos Alberto Batista-Serrano ($53,070)
- Fabián Abdiel García-Concepción ($22,440)
- Dianelys Ailysh Torres-Pizarro ($34,692)
- Jamisael Jiménez-Pérez ($30,366)
- Jerry Isaías Medina-Hernández ($20,112)
- Jesús Manuel Crespo-Rivera ($31,830)
- Glendaly Rivera-Torres ($21,708)
- Joumar Vale-Sauri ($33,069)
- Kelvin A. Fermaint-Hernández ($22,374)
- Kenneth Javier Escalera-Paris ($17,910)
- Manuel Salinas-Bermudez ($40,086)
- Rodney Eiram Rodríguez-Rivera ($20,112)
- Yoanelys Vázquez-González ($32,430)
- Eluzay De Jesús-Acevedo ($17,376)
- Luis Angel Crespo-Rivera ($33,162)
“The Justice Department remains committed to using every available federal tool to combat and prevent COVID-19 related fraud,” said U.S. Attorney Muldrow. “We will continue to hold accountable those who seek to exploit the pandemic for personal gain, to protect vulnerable populations, and to safeguard the integrity of taxpayer-funded programs.”
“This repeat violation is deeply concerning. It is clear that some individuals continue to exploit a worldwide crisis for personal gain by disregarding the law. We want to make it abundantly clear that this behavior will not be tolerated, now or ever,” stated Special Agent in Charge of the FBI San Juan Field Office, Joseph González. “The FBI and our law enforcement partners will relentlessly pursue all leads to ensure that these criminals face justice. If you or anyone you know has information about these crimes, I urge you to come forward by calling (787) 987-6500 or submitting a tip online at tips.FBI.gov. To those who have engaged in these fraudulent acts, I strongly advise you to come forward and cooperate with law enforcement before we take action against you.”
“An important part of the mission of the U.S Department of Labor, Office of Inspector General is to investigate allegations of fraud involving pandemic-related unemployment insurance programs. We will continue to work with our law enforcement partners to investigate these types of allegations,” stated Jonathan Mellone, Special Agent-in-Charge, Northeast Region, U.S. Department of Labor, Office of Inspector General.
“The 32 defendants charged are alleged to have collectively stolen close to a million dollars from the federal government by committing fraud in Pandemic Unemployment Assistance under the CARES Act. These charges are a reminder that fraud is not a victimless crime and individuals who attempt to commit fraud face significant penalties,” said Juan A. Vargas, Inspector in Charge, Miami Division, U.S. Postal Inspection Service. “The U.S. Postal Inspection Service is committed to working with our law enforcement partners to ensure the U.S. Mail is not utilized as a tool to defraud the government and taxpayers.”
Assistant U.S. Attorney Scott Anderson is in charge of the prosecution of these cases. If convicted, the defendants are facing the following sentences: up to 20 years of imprisonment for mail fraud; up to10 years of imprisonment for theft of government money; up to 5 years of imprisonment for misuse of a social security number; a fine of up to $250,000; and three years of supervised release.
To report a COVID-19-related fraud scheme or suspicious activity, contact the National Center for Disaster Fraud (NCDF) by calling the NCDF Hotline at 1-866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form
Indictments contain only charges and are not evidence of guilt. The defendants are presumed to be innocent unless and until proven guilty.
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24 August 2024
Utah Resident Accused of Making Death Threats to Salt Lake County Sheriff and Other Government OfficesRead the Press Release
SALT LAKE CITY, Utah – A federal grand jury in Salt Lake City returned a superseding indictment August 21, 2024, charging a Salt Lake County man with stalking. The man was arrested on April 4, 2024, via a federal complaint after he was accused of making repeated threatening phone calls to the Salt Lake County Sheriff’s Office and other Salt Lake County government offices.
According to court documents, Ryan Gregory Bracken, 44, of West Valley City, Utah, called the Salt Lake County Recorder’s Office on April 1, 2024. In a voicemail, he accused the Salt Lake County Recorder and an employee of being guilty of treason. As alleged, Bracken made a point of stating that the penalty for treason is death. Prior to the voicemail, Bracken had also made repeated phone calls to the Salt Lake County Recorder’s Office, which allegedly became increasingly verbally abusive and threatening.
On April 2, 2024, Bracken called the Salt Lake County Sheriff’s Office to speak with the elected Sheriff regarding a “fraudulent Sheriff’s sale on his property and called it a criminal act. Bracken threatened to “open fire” on the first person who shows up to his property to evict him. Bracken made specific reference to having a 7.62 millimeter firearm. In a separate call on the same day, Bracken made multiple threats that if the Sheriff’s sale of his property occurred, he would hold the Sheriff responsible for treasonous acts and she would swing from a rope.
Information obtained from Information Technology specialists with Salt Lake County government revealed that Bracken called various Salt Lake County government offices, to include the Sheriff’s Office and the Assessor’s Office, 32 times in April 2024 alone.
Bracken is charged with five counts of stalking, and one count of interstate communication of threats. His initial court appearance on the superseding indictment is scheduled for August 27, 2024, at 11:00 a.m. in courtroom 8.4 before a U.S. Magistrate Judge at the Orrin G. Hatch United States District Courthouse in downtown Salt Lake City.
U.S. Attorney, Trina A. Higgins, of the District of Utah made the announcement.
The case is being investigated jointly by Homeland Security Investigations (HSI) and the Salt Lake County Sheriff’s Office.
The U.S. Attorney’s Office for the District of Utah is prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
23 August 2024
York Man Sentenced to 10 Years in Prison for His Role in Smuggling Kilos of Cocaine from Puerto RicoRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Kevin Marrero-Morales, from York, Pennsylvania, was sentenced on August 20, 2024, to 10 years in prison by United States District Court Judge Christopher C. Conner for trafficking cocaine.
According to United States Attorney Gerard M. Karam, a grand jury indicted Marrero-Morales and others for their role in conspiracy to smuggle kilograms of cocaine from Puerto Rico into York. Marrero-Morales pled guilty and admitted to his participation in the conspiracy, which included smuggling 30 kilograms of cocaine in one shipment. Marrero-Morales was sentenced to the mandatory minimum sentence of 10-years in prison.
Also charged in the case are Juan Escalera-Carrasquillo, age 25, Daniel Velez-Olivero, age 37, Gerald J. Calcano, age 31, Takquasha C. Beatty, age 29, Reynaldo Vargas Seda, age 23, Kevin Marrero-Morales, age 29, and Jorge Angel Rivera-Ortiz, age 24. The indictment alleged as part of the conspiracy, drugs and weapons were stored at various locations in York. It was also alleged that Escalera-Carrasquillo, Beatty, and Seda possessed a Glock 9mm pistol, a Smith and Wesson 380 pistol, and Del-Ton AR15 rifle during and in relation to their drug trafficking activities.
The case was investigated by the U.S. Bureau of Alcohol Tobacco Firearms and Explosives, the Pennsylvania State Police, the York County Drug Task Force, and the York City Police Department. Assistant U.S. Attorney Michael A. Consiglio is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The maximum penalty under federal law for these offenses is life imprisonment, a term of supervised release following imprisonment, and a fine.
All persons charged are presumed to be innocent unless and until found guilty in court.
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Winnebago Man Sentenced for Domestic Assault by an Habitual OffenderRead the Press Release
United States Attorney Susan Lehr announced that Kelton Chilson, age 29, of Winnebago, Nebraska, was sentenced on August 23, 2024, in federal court in Omaha, Nebraska, for domestic assault by a habitual offender in Indian Country. Chief United States District Judge Robert F. Rossiter, Jr., sentenced Chilson to 24 months’ imprisonment. There is no parole in the federal system. After Chilson’s release from prison, he will begin a 3-year term of supervised release.
In September 2023, Chilson physically assaulted a female victim known to him by punching the victim in the face. A witness to the assault notified local law enforcement, who arrived on scene to find the victim lying in a roadway with much of her clothing torn off and obvious injuries to her head and face. The victim was transported by ambulance for emergency medical care and found to have suffered a broken nose. Prior to his assault on the victim in September 2023, Chilson had already been convicted on multiple occasions of domestic violence offenses in state and tribal courts.
This case was prosecuted in federal court because the offense was a felony and occurred on the Winnebago Indian Reservation in Nebraska.
This case was investigated by the Federal Bureau of Investigation.
Vice Chairman of Smyth County School Board ArrestedRead the Press Release
ABINGDON, Va. – Todd Stewart Williams, the Vice Chairman of the Smyth County School Board, was arrested at his home today on federal criminal charges related to child exploitation.
According to court documents, Williams spent more than $10,000 between May 2022 and January 2024 to entice at least six juvenile victims into sending him nude images and sexually explicit videos of themselves and others.
“Sexual exploitation and abuse have grown exponentially through the use of the internet, especially its online gaming platforms,” said Christopher R. Kavanaugh, United States Attorney for the Western District of Virginia. “The safety and well-being of children in our communities are top priorities of my Office, and we are committed to the joint efforts with our law enforcement partners to relentlessly pursue these perpetrators and ensure they are brought to justice.”
“This case is a reminder of the constant threat of child exploitation minors face online,” said Stanley M. Meador, Special Agent in Charge of the FBI Richmond Field Office. “Whether an offender sexually abuses a child in person or online, the FBI and our partners will continue to seek justice for innocent victims by holding offenders accountable.”
Williams’s alleged criminal activity came to the attention of law enforcement in September 2022 when a 15-year-old teenager living in Oklahoma reported to the FBI that Williams, using the Snapchat username “todd_w3411” requested nude images and videos of him.
During an interview with law enforcement, the teen told investigators he met Williams in a Snapchat group intended for gay teenage males. Soon after they began chatting, Williams reached out to the teen and offered to make in-app purchases in an online video game in exchange for nude pictures of the teen.
From May 1, 2022 through October 1, 2022, Williams sent the teen over $2,000 in exchange for nude images and videos.
Based on the information obtained from the FBI investigation in Oklahoma, the FBI in Richmond began an investigation into the Snapchat activities of Williams’ username, “todd_w3411.”
The FBI’s investigation uncovered multiple instances of Williams’s alleged exploitation of minors. In one instance, Williams used Snapchat to communicate with a then 12-year-old minor and offered to purchase items for an online game before eventually offering to buy nude pictures and videos from the boy.
Between August 2022 and January 2024, Williams sent the young victim nearly $1,000 in exchange for nude images and videos.
In January 2023, Williams met another teen on Snapchat and paid the teen to take pictures and videos of him sexually abusing his younger stepbrother, who was 10 years old at the time. As directed by Williams, the teen would approach his stepbrother in their bedroom at night and force his stepbrother to watch pornography. The teen would masturbate and take pictures.
Because the teen reached the $600 monthly limit on Cash App transactions, Williams mailed him a debit card hidden inside a pair of shoes to ensure he was able to purchase his videos.
In a six-month period, Williams paid over $3,500 for nude images and videos of the teen and his stepbrother.
In yet another interaction with a young teenage boy on Snapchat, Williams paid over $3,000 in exchange for nude images and videos of him and his teenage boyfriend.
If you or someone you know have information about this matter or feel you may have been a victim, please contact the FBI Richmond Division.
The Federal Bureau of Investigation is investigating the case.
Assistant U.S. Attorney Whit Pierce is prosecuting the case.
A criminal complaint is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
United States Attorney Martin Estrada Announces Implementation of New Whistleblower Pilot Program to Facilitate Increased Prosecutions of High-Level WrongdoersRead the Press Release
POLICYLOS ANGELES – United States Attorney Martin Estrada today announced that the U.S. Attorney’s Office for the Central District of California (USAO-CDCA) has implemented a new Voluntary Self-Disclosure, Whistleblower Pilot Program encouraging individuals to disclose criminal conduct undertaken by or through companies, exchanges, and other institutions.
The program, which is effective immediately, is designed to prompt individuals to come forward about previously unknown fraud, bribery, and other misconduct. It does so by setting forth conditions under which the voluntary self-disclosure (VSD) of misconduct to the USAO-CDCA, coupled with the agreement to fully cooperate in the investigation of others involved, may make the disclosing individual eligible to avoid prosecution.
The program applies to circumstances where an individual voluntarily discloses to the USAO-CDCA information regarding criminal conduct undertaken by or through public or private companies, exchanges, financial institutions, investment advisers, or investment funds involving fraud or corporate control failures or affecting market integrity, or criminal conduct involving state or local bribery or fraud relating to federal, state, or local funds. It is designed to facilitate the investigation of misconduct that is not already known to the USAO-CDCA and target those equally or more culpable in the misconduct, and only offers benefits to those who did not play a leading role in the misconduct, and who are not corporate CEOs or those in similar positions of control or federal, state, or local officials.
This Pilot Program provides transparency regarding the circumstances in which USAO-CDCA prosecutors will offer deferred or non-prosecution agreements (DPAs or NPAs) to incentivize individuals (and their counsel) to provide original and actionable information. Receiving such information will help us investigate and prosecute criminal conduct that might otherwise go undetected or be impossible to prove, and will, in turn, further encourage companies to create compliance programs that help prevent, detect, and remediate misconduct and to report misconduct when it occurs.
Under the VSD pilot program, the USAO-CDCA will enter into a DPA or NPA in exchange for the individual’s cooperation where the following conditions are met:
- The misconduct has not previously been made public and is not already known to our Office or to any component of the Department of Justice;
- The individual voluntarily discloses the criminal conduct to our Office and not in response to a government inquiry, and prior to imminent threat of disclosure or government investigation;
- The individual is able to provide substantial assistance in the investigation and prosecution of at least one equally or more culpable persons, did not play a leading role in the disclosed conduct, and is prepared to cooperate fully with this Office in its investigation and prosecution of the disclosed conduct, including by providing testimony if requested;
- The individual truthfully and completely discloses all criminal conduct in which the individual has participated and of which the individual is aware;
- The individual is not a federal, state, or local elected or appointed and confirmed official; not an official or agent of a federal investigative or federal law enforcement agency; or is not the CEO or equivalent, or a person who otherwise exercises primary control – regardless of title – over the operations of a public or private company; and
- The individual has not engaged in any criminal conduct that involves: the use of force or violence, any sex offense involving fraud, force, or coercion, or a minor, any offense involving terrorism or implicating national security or foreign affairs and does not have a previous felony conviction or a conviction of any kind for conduct involving fraud or dishonesty.
In instances in which an individual discloses such information, but does not meet the above requirements, prosecutors may consider exercising – with supervisory approval – discretion to extend a DPA or NPA.
To self-disclose pursuant to this policy, please email: [email protected].
Umatilla Man Faces Federal Charges for Making Threats of Sexual Violence Against Children and Possessing Dozens of Photos and Videos Depicting Child Sexual AbuseRead the Press Release
PORTLAND, Ore.—A Umatilla, Oregon man who is alleged to have made several hoax phone calls threatening sexual violence against children and possessed dozens of photos and videos depicting child sexual abuse has been indicted in federal court.
Thomas Loren Goatley, 20, has been charged with receiving and possessing child pornography and making interstate threats.
According to court documents, between approximately January 5 and April 30, 2024, Goatley is alleged to have made more than 60 phone calls to various schools, police departments, emergency lines, and animal shelters in at least 12 states. During many of these calls, Goatley claimed that he was sexually assaulting a child, or that he was about to do so. While investigating these threats, special agents from the FBI discovered Goatley was also the subject of numerous CyberTipline Reports submitted to the National Center for Missing and Exploited Children (NCMEC) indicating that he was active in receiving and distributing child sexual abuse material.
On July 22, 2024, investigators executed a federal search warrant on Goatley’s person and residence in Umatilla, and he was placed under arrest. A later search of Goatley’s cell phone revealed dozens of illicit images and videos depicting child sexual abuse.
On July 23, 2024, Goatley made his initial appearance in federal court before a U.S. Magistrate Judge and was detained pending further court proceedings. He was arraigned Thursday and pleaded not guilty. A four-day jury trial is scheduled to begin on October 22, 2024.
Receiving and possessing child pornography is punishable by up to 20 years in federal prison with a five-year mandatory minimum sentence. Transmitting interstate threats is punishable by up to five years in federal prison.
This case was investigated by the FBI with assistance from the Umatilla Police Department. It is being prosecuted by Mira Chernick, Assistant U.S. Attorney for the District of Oregon.
An indictment is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
Anyone who has information about the physical or online exploitation of children are encouraged to call the FBI at (503) 224-4181 or submit a tip online at tips.fbi.gov.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Justice Department to combat the growing epidemic of child sexual exploitation and abuse. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
U.S. Attorney’s Office Secures Guilty Plea in Shiprock Assault CaseRead the Press Release
ALBUQUERQUE – A Shiprock man has pleaded guilty in federal court to a single assault charge related to a brutal attack that left his victim with life-threatening injuries.
According to court documents, on January 1, 2024, Tyrell Jordan Benally, 25, an enrolled member of the Navajo Nation, assaulted Jane Doe at a residence in Shiprock, New Mexico, by repeatedly striking her with a closed fist and strangling her until she lost consciousness. The assault caused Jane Doe to suffer serious bodily injury, including life-threatening injuries from the strangulation.
At sentencing, Benally faces up to 10 years in prison followed by 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 Department of Criminal Investigations. The United States Attorney’s Office for the District of New Mexico is prosecuting the case.
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U.S. Attorney's Office Secures 52-Month Sentence for Las Cruces Man Following 2023 Pipe Bomb IncidentRead the Press Release
ALBUQUERQUE – A Las Cruces man was sentenced to 52 months in prison following his conviction for possessing a pipe bomb and ammunition near a church playground.
There is no parole in the federal system.
According to court documents, on May 31, 2023, Nathan Wallace, 41, was observed in the children’s playground of East Mesa Baptist Church. Wallace was arrested by the Doña Ana County Sheriff's Department after being found in possession of a destructive device and ammunition. Upon questioning, he admitted to possessing a metal pipe containing gunpowder, which was later confirmed to be an operational pipe bomb.
The device was seized by law enforcement and analyzed by a bomb technician, who discovered a fuse inside. Additionally, a search of Wallace's belongings revealed a 20-gauge Winchester AA High Strength shotgun shell, a motion sensor, two cell phones, and various modified batteries and wires, indicating potential explosive device components.
Wallace is prohibited by federal law from handling or possessing firearms or ammunition due to his previous felony convictions, which include multiple counts of forgery and possession of explosive devices.
In his plea agreement, Wallace admitted to knowingly possessing ammunition after being convicted of multiple felonies punishable by imprisonment exceeding one year.
Upon his release from prison, Wallace will be subject 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 Las Cruces Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from the Dona Ana County Sheriff’s Office. Assistant United States Attorneys Ry Ellison and Christopher McNair prosecuted the case.
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U.S. Attorney Announces Consent Decree with Legacy Builders for Violating Lead Paint Safety RegulationsRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Lisa F. Garcia, the Regional Administrator for Region 2 of the U.S. Environmental Protection Agency (“EPA”), announced today that the United States filed a civil lawsuit against LEGACY BUILDERS/DEVELOPERS CORP. (“LEGACY”) alleging violations of the Toxic Substances Control Act (“TSCA”) and EPA’s Renovation, Repair, and Painting Rule (“RRP Rule”). The U.S. simultaneously entered into a Consent Decree resolving that lawsuit. The Consent Decree includes a $168,000 civil penalty and requires LEGACY to take steps to mitigate potential harms caused by its conduct.
U.S. Attorney Damian Williams said: “Legacy Builders failed to follow lead-safe work regulations designed to protect building occupants—including children—and workers from toxic lead paint dust generated during apartment renovations. This lawsuit is another example of our commitment to ensure that renovation firms are held responsible for violating these important safety rules.”
EPA Regional Administrator Lisa F. Garcia said: “Legacy Builders/Developers Corp. is being held accountable for not complying with rules that are designed to protect residents as well as workers and are a key part of protecting public health. The company’s activities put tenants, the public, and its employees at risk of exposure to lead dust hazards. Exposure to lead-based paint can have serious health impacts and remains a common source of lead poisoning in children. EPA will continue to be vigilant and ensure we reduce all risk of lead exposure.”
TSCA and the RRP Rule impose safety requirements to minimize the risk that young children, tenants, and renovation workers are exposed to toxic lead paint dust during renovations of residential buildings. Exposure to lead dust is the most common cause of lead poisoning, which can lead to severe, irreversible health problems, particularly in children. Lead poisoning can affect children’s brains and developing nervous systems, causing reduced IQ, learning disabilities, and behavioral problems.
As alleged in the U.S. Complaint filed in the district court:
LEGACY performed renovation work at hundreds of residential apartments across five building sites in Manhattan between 2016 and 2020. In September 2017, EPA inspected a LEGACY worksite and found that LEGACY had failed to contain lead dust. This was consistent with inspections in April and August 2017 of the same LEGACY worksite by the New York City Department of Health and Mental Hygiene, where inspectors observed dust and debris in hallways, common areas, and the vacant apartments being renovated, and collected dust wipe samples containing lead in excess of federal standards. Following further investigation, EPA determined that LEGACY lacked required RRP Rule certifications and, at multiple worksites, failed to train its workers on lead-safe work practices, failed to follow lead-safe work practices, failed to inform building owners and occupants of the risks of lead poisoning during that renovation, and failed to maintain records necessary to demonstrate compliance with lead-safe work practice rules. When LEGACY was informed of these issues, it provided the EPA with inaccurate information about its RRP Rule compliance.
In the Consent Decree, LEGACY admits, acknowledges, and accepts responsibility for the following conduct:
- Between 2016 and 2020, LEGACY performed renovation work at more than one hundred residential apartments at five different building sites in Manhattan. LEGACY failed to comply with requirements of the RRP Rule on numerous occasions at these renovation projects. Among other things:
- LEGACY failed to provide on-the-job lead safety training to workers, in violation of the RRP rule.
- LEGACY failed to adequately contain construction dust, including dust containing lead in excess of levels permitted under the RRP Rule, and failed to conduct the required post-renovation cleaning verification, in violation of the RRP rule.
- LEGACY failed to post signs clearly defining its work area and warning occupants and other persons not involved in renovation activities to remain outside of the work area, in violation of the RRP Rule.
- LEGACY failed to provide a lead-hazard information pamphlet to the owner or occupants of the building before commencing work, in violation of the RRP Rule.
- LEGACY failed to maintain documentation showing that it complied with lead-safe work practices, in violation of the RRP Rule.
- Additionally, between June 2016 and August 2017, LEGACY performed renovation work covered by the RRP Rule at two of these worksites without possessing the firm certification required by the RRP Rule for renovation firms performing such work and without assigning a certified renovator to oversee those projects.
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Pursuant to the Consent Decree, LEGACY will pay a penalty of $168,000, an amount based on the company’s documented inability to pay the full civil penalty for which it otherwise would be liable. The Consent Decree requires LEGACY to comply with safe work practices and other RRP Rule requirements in the future. Additionally, to mitigate the effects of the violations, among other things, LEGACY will conduct education sessions for residents of the five buildings on the hazards of lead-based paint and methods of minimizing potential exposures, and LEGACY will offer to conduct training for maintenance staff at these buildings on lead-hazard reduction and common issues pertaining to the use of lead-safe work practices in day-to-day operations. Failure to comply with the Consent Decree will give rise to significant additional penalties.
To provide public notice and afford members of the public the opportunity to comment on the Consent Decree, the Consent Decree will be lodged with the District Court for a period of at least 30 days before it is submitted for the Court’s approval.
Mr. Williams thanked the attorneys and enforcement staff at EPA Region 2 for their critical work on this matter.
This case is being handled by the Environmental Protection Unit of the Office’s Civil Division. Assistant U.S. Attorneys Ilan Stein and Samuel Dolinger are in charge of the case.
- Between 2016 and 2020, LEGACY performed renovation work at more than one hundred residential apartments at five different building sites in Manhattan. LEGACY failed to comply with requirements of the RRP Rule on numerous occasions at these renovation projects. Among other things:
Two Men Indicted for Damaging Rock Formations at National Recreation Area in NevadaRead the Press Release
LAS VEGAS – A federal grand jury indicted two Henderson men for allegedly damaging ancient rock formations at the Lake Mead National Recreation Area in Nevada.
According to allegations contained in the indictment, on April 7, 2024, Wyatt Clifford Fain (37) and Payden David Guy Cosper (31) pushed large chunks of ancient rock formations over the edge of a cliff onto the ground below while on or near the Redstone Dunes Trail at the Lake Mead National Recreation Area, resulting in damages in excess of $1,000.
Fain and Cosper were each charged with one count of injury and depredation of government property and one count of aiding and abetting. They were arrested by the United States Marshals Service, and they made their initial court appearance today before United States Magistrate Judge Nancy Koppe. A jury trial has been scheduled for October 8, 2024, before United States District Judge Jennifer Dorsey.
If convicted, the defendants each face up to ten years imprisonment.
United States Attorney Jason M. Frierson for the District of Nevada and United States Marshal Gary Schofield for the United States Marshals Service made the announcement.
The National Park Service investigated this case. Assistant United States Attorney Skyler Pearson is prosecuting the case.
If you see something suspicious in any National Park location, or if you have information that could aid an investigation, call the NPS-wide Tip Line at 1-888-653-0009 or submit a tip online at https://www.nps.gov/orgs/1563/submit-a-tip.htm.
An indictment merely alleges that crimes have been committed. The defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Twelve Individuals in Central Florida, Puerto Rico, and South Carolina Charged with Murder, Drug Trafficking, Money Laundering, Firearms Offenses, and FraudRead the Press Release
Tampa, FL – United States Attorney Roger B. Handberg announces the return of four indictments charging a total of 12 individuals with murder in furtherance of drug trafficking, conspiracy to commit drug trafficking, conspiracy to commit money laundering, conspiracy to commit wire fraud, illegal possession of firearms, and bank fraud. The indictments also seek the forfeiture of more than $6.5 million identified as the amount involved in the offenses and proceeds of the offenses, two properties, and firearms.
INDICTMENT ONE
Carlos Limery Dones Drug Trafficking Organization Indictment
Name
(Age, Residence)
Charges
Max Penalty
Carlos Limery Dones, a/k/a “Siervo,” “Chino”
(46, Puerto Rico)
Drug trafficking conspiracy, money laundering, and bank fraud
Life in federal prison.
Santos Cruz Rivera
(44, Kissimmee)
Drug trafficking conspiracy, distribution of controlled substances, possession of cocaine with intent to distribute, maintaining a drug premises, possessing a firearm while a convicted felon, and money laundering conspiracy
Life in federal prison.
Nelson Franco, a/k/a “Voltio”
(48, South Carolina)
Drug trafficking conspiracy, distribution of controlled substances, and money laundering conspiracy
Life in federal prison.
Rebel Rivera Carbonell
(46, Dundee)
Drug trafficking conspiracy, maintaining a drug premises, and possession of cocaine with intent to distribute
Life in federal prison.
Madelyn Sanchez, a/k/a “La Negra”
(50, Kissimmee)
Drug trafficking conspiracy and maintaining a drug premises
Life in federal prison.
Roberto Rodriguez Almodovar
(59, Kissimmee)
Drug trafficking conspiracy and committing murder in furtherance of drug trafficking
Faces a maximum sentence of death.
Luis Torres Sanchez, a/k/a “Gordo”
(39, Puerto Rico)
Drug trafficking conspiracy, distribution of controlled substances, and possessing a firearm in furtherance of drug trafficking
Life in federal prison.
Johnson Rivera Martinez
(40, Orlando)
Drug trafficking conspiracy and distribution of controlled substances
Life in federal prison.
Yesenia Laracuente
(35, Kissimmee)
Money laundering conspiracy
20 years in federal prison.
Nancy Contreras, a/k/a “La Doña”
(46, Dundee)
Money laundering conspiracy
20 years in federal prison.
Carol Flores Morales
(48, South Carolina)
Money laundering conspiracy and money laundering
20 years in federal prison.
INDICTMENT TWO
Wire Fraud Conspiracy in Purchase of a Home
Yesenia Laracuente
(35, Kissimmee)
Wire fraud conspiracy
20 years in federal prison.
Wilmary Sepulveda
(36, Kissimmee)
Wire fraud conspiracy
20 years in federal prison.
INDICTMENT THREE
COVID-Related Fraud
Carlos Limery Dones
46, Puerto Rico
Wire fraud
20 years in federal prison.
INDICTMENT FOUR
COVID-Related Fraud
Santos Cruz Rivera
(44, Kissimmee)
Wire fraud
20 years in federal prison.
According to the indictments, there was a multi-year conspiracy to traffic cocaine and fentanyl within the Middle District of Florida, resulting in several seizures of both substances. Eight of the charged individuals are alleged to be involved in the trafficking of controlled substances. On August 3, 2021, in retaliation for the killing of a lookout at a stash house the organization used, Almodovar murdered one of the individuals present at the homicide with a single gunshot to the back of the head.
The individuals charged across the four indictments also engaged in schemes to acquire various homes and other properties by various means. As charged in one indictment, Limery Dones defrauded a bank by transmitting $110,000 to buy a house in the name of a third-party when, in reality, he was the actual purchaser of the home. Franco, Flores Morales, and Contreras allegedly conspired to put a home in Flores Morales’s name when the money came from Franco’s sale of controlled substances. In another scheme charged across two of the indictments, Laracuente and Sepulveda conspired to falsely report Laracuente’s employment and income to secure a mortgage that Cruz Rivera then made payments on in Laracuente’s name with drug proceeds. The third and fourth indictments charge Limery Dones and Cruz Rivera with fraud in obtaining Paycheck Protection Program loans by filing claims for companies that did not exist.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Drug Enforcement Administration; Internal Revenue Service—Criminal Investigation; Bureau of Alcohol, Tobacco, Firearms and Explosives; Osceola County Sheriff’s Office; and Kissimmee Police Department, with assistance from Homeland Security Investigations, the Central Florida High Intensity Drug Trafficking Area (HIDTA), and the U.S. Postal Inspection Service, as part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations. It is being prosecuted by Assistant United States Attorneys Dan Baeza and Michael Buchanan.
Straw purchasing rifles sends McAllen man to prisonRead the Press Release
McALLEN, Texas – A 22-year-old man has been sentenced for illegally purchasing firearms on behalf of a Mexican national, announced U.S. Attorney Alamdar S. Hamdani.
Juan Hector Resendez-Meza III pleaded guilty May 31.
Chief U.S. District Judge Randy Crane has now ordered Resendez-Meza to serve 24 months in federal prison to be immediately followed by three years of supervised release.
At the time of his plea, Resendez-Meza admitted a man residing in Reynosa, Mexico, approached and asked him to purchase firearms on his behalf.
Resendez-Meza received $16,000 in cash to do so between May and August 2023. At the time of each purchase, Resendez-Meza lied on federal forms, claiming he was the true buyer.
He also admitted to illegally procuring three rifles on behalf of the Mexican citizen including a .50 caliber rifle. In addition, Resendez-Meza had previously bought and sold two pistols to the man.
Previously released on bond, Resendez was taken into custody following the sentencing where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation.
Assistant U.S. Attorney Amanda McColgan prosecuted 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.
St. Louis County Woman Admits Prostituting MinorRead the Press Release
ST. LOUIS – A woman from St. Louis County, Missouri on Friday admitted promoting the prostitution of a minor online.
Carrie Little, 44, pleaded guilty in U.S. District Court in St. Louis to one count of coercion or enticement of a minor. Little’s trial was scheduled to begin Tuesday.
As part of her plea, Little admitted that beginning at least as early as 2018, she recruited women and had others recruit women to engage in prostitution. Among those recruited was a minor female. Little provided the victim with a place to live and placed sexually suggestive and/or explicit photos of the minor that were taken with Little’s phone in online advertisements for commercial sex. Little took calls to arrange sexual encounters and to arrange the price. After the encounters, men paid Little or the victim, who was required to give the majority of the money to Little.
Little is scheduled to be sentenced November 26. The charge carries a penalty of at least 10 years in prison, with a maximum of life.
The St. Louis County Police Human Trafficking Task Force investigated the case as part of the FBI St. Louis Child Exploitation and Human Trafficking Task Force. Crisis Aid International and the International Institute of Saint Louis assisted victims associated with the case. Assistant U.S. Attorneys Dianna Edwards and Nathan Chapman are prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by 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.
Southbury Man Sentenced to 5 Years in Federal Prison for Illegally Possessing Sawed-Off Shotguns and SilencersRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, today announced that ANTHONY ENGLEHARDT, 44, of Southbury, was sentenced yesterday by U.S. District Judge Omar A. Williams in Hartford to 60 months of imprisonment, followed by three years of supervised release, for unlawfully possessing sawed-off shotguns and silencers. Judge Williams ordered that Englehardt must serve his first six months of supervised release in home confinement.
According to court documents and statements made in court, shortly before midnight on March 13, 2023, Torrington Police received a report that Englehardt used a rifle and shot a hole in the ceiling of a Torrington residence, and then left the residence. At the time, Englehardt was subject to a protective order issued by the Waterbury Superior Court that required him to surrender all of his firearms and ammunition. At approximately 12:30 a.m. on March 14, 2023, Connecticut State Police stopped Englehardt’s vehicle, took him into custody, and charged him with multiple offenses. Later that day, a search of Englehardt’s Southbury residence revealed 10 firearms, six silencers, more than 1,000 rounds of ammunition, and various firearms parts and accessories. Three of the firearms were sawed-off shotguns and were not registered pursuant to the National Firearms Act. The six silencers also were not registered.
Englehardt has been detained since his federal arrest on May 25, 2023. On April 18, 2024, he pleaded guilty to possession of unregistered National Firearms Act firearms and silencers.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), with the assistance of the Connecticut State Police, Torrington Police Department, and Southbury Police Department. The case was prosecuted by Assistant U.S. Attorney Katherine E. Boyles.