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1 August 2024
Orange County Man Pleads Guilty to Drug and Firearms OffensesRead the Press Release
Orlando, Florida – United States Attorney Roger B. Handberg announces that Joshua Grant Cobb (33, Orlando) has pleaded guilty to possession with intent to distribute fentanyl and methamphetamine and possession of a firearm in furtherance of a drug trafficking crime. Cobb faces a minimum mandatory penalty of 15 years, up to life, in federal prison. His sentencing hearing is set for October 23, 2024.
According to the plea agreement, on April 30, 2024, law enforcement received information from a confidential source that Cobb was distributing methamphetamine and heroin/fentanyl out of his residence in Orlando. The confidential source arranged for a fentanyl deal to take place at Cobb’s home later that night. Law enforcement detained Cobb as he was leaving his apartment following the transaction. On his person, agents located a loaded handgun and 55 grams of a fentanyl mixture.
Law enforcement then executed a search warrant on Cobb’s residence, during which they located large quantities of drugs (including over 700 grams of pure methamphetamine and over 250 grams of fentanyl mixtures), six additional firearms, drug processing materials, and $4,000 in cash.
As part of the plea agreement, Cobb has agreed to forfeit the firearms and ammunition he possessed.
This case was investigated by the Drug Enforcement Administration and the Brevard County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Megan Testerman.
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.
Okaloosa County Man Sentenced to Federal Prison for Possession with Intent to Distribute Methamphetamine and Money LaunderingRead the Press Release
PENSACOLA, FLORIDA – Nicholus Tysharrow McNabb, 39, of Fort Walton Beach, Florida, was sentenced to 216 months in federal prison after previously pleading guilty to possession with intent to distribute 500 grams or more of methamphetamine and money laundering. The sentence was announced by Jason R. Coody, United States Attorney for the Northern District of Florida.
“This investigation demonstrates the effectiveness and collaborative efforts of our local and federal law enforcement partners, to identify and intercept shipments of illegal substances via the United States Mail,” said U.S. Attorney Coody. “The sentence imposed should serve as a significant deterrent to those who would use the United States Postal Service to conduct illegal activities.”
Between December 2022 and January 2023, the United States Postal Inspection Service intercepted multiple packages containing various quantities of methamphetamine that were to be delivered to an address belonging to Nicholus McNabb. On February 23, 2023, Okaloosa County Sherriff’s Office with the assistance of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Drug Enforcement Administration, and the United States Postal Inspection Service executed a search warrant on McNabb’s residence and discovered approximately 10 pounds of methamphetamine and over $23,000 in U.S. currency. The investigation revealed McNabb distributed over 35 pounds of methamphetamine between March 16, 2022, and February 23, 2023.
“I’m proud of how our local, state, and federal partners came together to remove this methamphetamine dealer from our streets,” said Drug Enforcement Administration Miami Field Division Special Agent in Charge Deanne L. Reuter. “We will continue to root out bad actors who peddle poisons in our communities.”
“The outstanding work by all law enforcement agencies involved has put this distributor of a dangerous drug in prison for a significant period of time,” said Juan A. Vargas, Inspector In Charge, U.S. Postal Inspection Service, Miami Division. “We will continue to work alongside our law enforcement partners to ensure people who elect to distribute illicit drugs in our communities are held accountable and brought to justice.”
This investigation resulted from the collaborative work of the Okaloosa County Sherriff’s Office, the United States Postal Inspection Service, the Drug Enforcement Administration, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by Assistant United States Attorney Jeffrey M. Tharp.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office for the Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Ohio Man Currently Imprisoned for Assault with Firearm Sentenced to Additional 17.5 Years of Prison for Series of Armed Pharmacy RobberiesRead the Press Release
PITTSBURGH, Pa. – A former resident of Columbus, Ohio, was sentenced on July 31, 2024, to 210 months of incarceration on his conviction for a series of pharmacy robberies throughout Western Pennsylvania and distribution of the narcotics from those robberies, United States Attorney Eric G. Olshan announced today.
In March, following a four-day trial before Senior United States District Judge Arthur J. Schwab, a Pittsburgh jury found Abdulrahman Abdelaziz Jamea, 26, guilty of seven crimes: one count each of conspiracy to commit armed pharmacy robbery and conspiracy to possess with the intent to distribute controlled substances, three counts of armed pharmacy robbery, and two counts of pharmacy robbery.
Evidence introduced during the trial established that Jamea participated in a conspiracy to rob pharmacies of Schedule II controlled substances—that is, highly addictive opioids and stimulants—between September 2018 and July 2019. This conspiracy included the robberies of pharmacies in Beaver, Bridgeville, Edinboro, Erie, and the Oakland area of Pittsburgh. During three of the robberies, Jamea and his co-conspirators brandished a firearm to threaten the lives of pharmacists and pharmacy technicians and to intimidate them into opening the locked safes where the controlled substances were kept. Evidence also established that Jamea returned to the Columbus area to sell these stolen drugs to both prescription drug abusers and other traffickers.
“Jamea’s armed robbery spree across western Pennsylvania risked the lives of pharmacy employees and ordinary civilians who happened to be in the wrong place at the wrong time—all so he and his co-conspirators could steal dangerous drugs and later sell them on the street,” said U.S. Attorney Olshan. “This sentencing reflects both the serious and violent nature of these robberies, which have no place in this district or anywhere. Our office is grateful as always for the exceptional work of our law enforcement partners and for the resolve of the victims during the course of this important prosecution.”
In imposing sentence, Judge Schwab specifically noted Jamea’s use of a silver handgun to threaten employees at a pharmacy in Edinboro, Pennsylvania, while a co-conspirator stole thousands of Schedule II controlled substances such as opioids and amphetamines from the store’s safe.
Jamea is currently serving a separate sentence of more than 40 years following a conviction in Ohio for eight counts of felonious assault with a firearm. Judge Schwab ordered that the 210-month sentence in this case be served consecutively to Jamea’s term of imprisonment in Ohio.
Assistant United States Attorneys Barbara K. Doolittle and Michael R. Ball prosecuted this case on behalf of the United States.
United States Attorney Olshan commended the Drug Enforcement Administration, Pennsylvania State Police, Pittsburgh Bureau of Police, Erie Police Department, Edinboro Police Department, Beaver Police Department, Bridgeville Police Department, and Ohio Highway Patrol for the investigation leading to the successful prosecution of Jamea.
Nineteen Defendants from Western Pennsylvania, Michigan, and Ohio Charged with Participating in Interstate Drug Trafficking Operation Involving Large Quantities of Fentanyl, Heroin, Cocaine, and OxycodoneRead the Press Release
PITTSBURGH, Pa. – Nineteen individuals from the New Castle, Pennsylvania, and Detroit, Michigan, areas have been indicted by a federal grand jury in Pittsburgh for their participation in a large-scale drug trafficking organization operating throughout and between those regions, United States Attorney Eric G. Olshan announced today.
The one-count Indictment charges the defendants with conspiring to distribute, and to possess with intent to distribute, 400 grams or more of fentanyl, five kilograms or more of cocaine, 100 grams or more of heroin, and a quantity of oxycodone from August 2023 to July 2024. The Indictment and a related search warrant were unsealed today. A complete list of the defendants is included at the bottom of this release.
According to the Indictment and information provided to the Court, the defendants operated a drug trafficking organization (DTO) based in Detroit and New Castle that was responsible for the acquisition of kilograms of fentanyl, heroin, and cocaine, including in the form of crack, as well as other controlled substances such as oxycodone, via interstate sources of supply. The DTO distributed those drugs to other dealers throughout and beyond Western Pennsylvania, and several members of the DTO regularly travelled back and forth between New Castle and Detroit in furtherance of the illegal drug activities. A number of the defendants have extensive criminal records, some stretching back more than three decades, including prior felony drug-trafficking and firearms convictions.
The search warrant affidavit alleges that, in March 2024, one of the leaders of this DTO, Christian Frierson, was arrested following a traffic stop on Interstate 80 in the vicinity of Omaha, Nebraska. Frierson, who was driving eastbound from California, was found in possession of a safe containing over 1,000 grams of fentanyl and nearly 250 grams of heroin. Frierson was charged with drug crimes in Nebraska state court and released on bond. The affidavit asserts that he promptly resumed his large-scale drug trafficking activities in furtherance of the Detroit/New Castle DTO.
According to the search warrant affidavit, agents utilized confidential sources and informants, extensive surveillance and analysis of phone records, controlled purchases of drugs, search warrants, and eventually court-authorized wiretaps from May 2024 to the present (among other investigative tools) to gather evidence in an effort to ascertain the scope of the illegal drug activities. Intercepted wiretap calls and text messages revealed that several members of the DTO in Detroit recruited individuals to work at “trap houses” (i.e., drug processing and distribution locations) in New Castle. The DTO, on an ongoing basis, distributed large quantities of fentanyl, cocaine, heroin, and fentanyl/oxycodone pills.
“This conspiracy involved a tight-knit network of family and friends—many of whom previously have been convicted of felony drug and firearms crimes—who allegedly trafficked large quantities of lethal narcotics, like fentanyl and heroin, between Detroit and Western Pennsylvania, supplying them to other dealers along the way,” said U.S. Attorney Olshan. “Dismantling large-scale drug-trafficking organizations in order to keep our communities safe is at the center of what our office does, and we could not accomplish this critical mission without the support of the public and the strength of our partnerships at all levels of law enforcement here in Pennsylvania and across the country.”
“Multi-state and multi-jurisdictional operations like what took place today show that the FBI and our partners stand shoulder to shoulder when it comes to keeping this poison out of communities everywhere,” said FBI Pittsburgh Special Agent in Charge Kevin Rojek. “The message to those who want to peddle illegal drugs and guns is clear: we will not stand idle while our neighborhoods are held hostage by crime.”
The law provides for a sentence of not less than 10 years and up to life in prison, a fine of up to $10 million, or both. Under the federal Sentencing Guidelines, the actual sentences imposed would be based upon the seriousness of the offense and the prior criminal histories, if any, of the defendants.
Assistant United States Attorneys Craig W. Haller and Vincent Joseph Sonson are prosecuting this case on behalf of the United States.
The Federal Bureau of Investigation, Drug Enforcement Administration, Pennsylvania Office of Attorney General, Lawrence County Drug Task Force, New Castle Police Department, Michigan State Police, Pennsylvania State Police, Mercer County Drug Task Force, United States Postal Inspection Service, Department of Homeland Security, and Douglas County (Nebraska) Sheriff’s Office conducted the investigation leading to the Indictment unsealed today.
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.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
List of Defendants
Name
Age
Place of Residence
Christian Frierson
33
Detroit, MI
Devail Adams
54
Oak Park, MI
Christopher Barton
24
New Castle, PA
Patrick Brown
32
Detroit, MI
Roy Brown
55
Westland, MI
Frank Christian
51
Youngstown, OH
Tyrone Davis
35
Detroit, MI
Edward Dietrich
59
New Castle, PA
Alexis Donnell
29
New Castle, PA
Dedric Higginbotham
55
Detroit, MI
Kiara Jones
24
New Castle, PA
Quinten Jones
38
Detroit, MI
Kenneth King
37
New Castle, PA
Jermaine Lett
52
Detroit, MI
Marcus Mason
32
New Castle, PA
Daniel Rasnick
27
New Castle, PA
Kendra Sager
32
New Castle, PA
Jauan Searcy
42
New Castle, PA
George Wyatt
61
New Castle, PA
New Orleans Man Pled Guilty to Federal Charge of Conspiracy to Commit Health Care FraudRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that JOHN M. SPIVEY (“SPIVEY”), age 53, of New Orleans, pled guilty on July 30 to a conspiracy to commit health care fraud.
According to court documents, SPIVEY conspired with his codefendant, JAMIE P. McNAMARA (“McNAMARA”), age 48, of Missouri, to defraud Medicare by billing for cancer genetic testing and cardiovascular genetic testing that was ineligible for Medicare reimbursement. The testing was ineligible because it was not medically necessary and was procured through the payment of illegal kickbacks and bribes. McNAMARA, with the assistance of SPIVEY, operated several laboratories, that obtained doctors’ orders for genetic testing from telemarketers and call centers that used aggressive telemarketing campaigns to induce Medicare beneficiaries to agree to receive genetic testing. Orders for genetic testing were signed by purported telemedicine doctors who were neither the beneficiaries’ treating physicians, nor performed the consultations with the beneficiaries, or even followed up with the beneficiaries post-testing. According to court records, from November 2018 through July 2020, the laboratories operated by McNAMARA submitted over $174 million in false and fraudulent claims to Medicare for genetic testing and received over $55 million in reimbursements. McNAMARA is set for trial in February of 2025.
United States District Judge Darrel J. Papillion is scheduled to sentence SPIVEY on April 15, 2025. At sentencing, SPIVEY faces up to ten years in prison, followed by up to three years of supervised release following any term of imprisonment, as well as a fine of up to $250,000 or twice the gross gain to any defendant or loss to any person. SPIVEY also faces payment of a $100 mandatory special assessment fee per count.
The case was investigated by the U.S. Department of Health and Human Services – Office of Inspector General and the Federal Bureau of Investigation. Assistant Chief Justin Woodard and Trial Attorney Kelly Z. Walters, both of the Department of Justice’s Criminal Division’s Fraud Section, and Assistant U.S. Attorney Nicholas D. Moses, Healthcare Fraud Coordinator for the Eastern District of Louisiana, are prosecuting the case.
New Orleans Man Pleads Guilty to Violations of Federal Gun Control and Controlled Substances ActsRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced that on July 30, 2024, TROY LOCKE, age 34 of New Orleans, pled guilty on July 30, 2024, before United States District Judge Wendy B. Vitter to a superseding indictment charging LOCKE with various gun and drug violations.
Counts 1, 2, 3, 4, 6, and 7 of that indictment charged LOCKE with distributing cocaine base, in violation of Title 21, United States Code, Sections 841(a)(1) and (b)(1)(C). Count 5 charged LOCKE with possessing a firearm in furtherance of a drug trafficking crime, in violation of Title 18, United States Code, Section 924(c). Count 8 and 9 charged LOCKE with being a felon in possession of firearms, in violation of Title 18, United States Code, Sections 922(g)(1).
According to public records, the drug charges stemmed from controlled purchases of crack cocaine that the ATF conducted on July 25, 2023, July 28, 2023, August 4, 2023, August 8, 2023, August 11, 2023, August 17, 2023. All the purchases were recorded. LOCKE had a gun in his lap during the August 8, 2023 purchase. During the August 17, 2023, crack cocaine deal charged in Count 7, the ATF undercover agent asked about buying guns from LOCKE. LOCKE declined to sell the pistol he had during the August 8, 2023, crack cocaine sale, saying he could not be without it. Not long after the August 17, 2023, deal, however, LOCKE called and said he had a rifle that he could sell. The ATF agent agreed and then met with LOCKE at the same place where the crack cocaine sale had just occurred. LOCKE sold the ATF agent an AR style rifle for $1,000. The ATF executed a search warrant at LOCKE’s residence on August 18, 2023, and found him in possession of two more firearms.
As to Counts 1, 2, 3, 4, 6, and 7 LOCKE faces a maximum term of imprisonment of twenty (20) years, a fine of up to $1,000,000.00, and at least three (3) years of supervised release following any term of imprisonment. As to Count 5, LOCKE faces a mandatory minimum term of imprisonment of five (5) years up to life that must run consecutively to all other sentences, a fine of up to $250,000.00, and up to five (5) years of supervised release following any term of imprisonment. As to Counts 8 and 9, LOCKE faces a maximum term of imprisonment of fifteen (15) years, a fine of up to $250,000.00, and up to three (3) years of supervised release following any term of imprisonment. All counts require payment of a $100 mandatory special assessment fee.
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 track 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 case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the New Orleans Police Department. United States Attorney David Haller, Senior Litigation Counsel and PSN Coordinator, handled the prosecution.
New Orleans Man Pleads Guilty to Federal Firearms ChargeRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced that IRVIN J. LEFERE, JR. (“LEFERE”), age 38, a resident of New Orleans, pleaded guilty before U.S. District Judge Sarah S. Vance on July 31, 2024, to being a felon in possession of a firearm.
According to court documents, on or about July 13, 2022, LEFERE, knowing that he had previously been convicted of a crime punishable by a term of imprisonment exceeding one year, knowingly possessed a Smith & Wesson .40 caliber semi-automatic pistol. Members of the New Orleans Police Department (NOPD) responded to a 911 call for assistance in Venetian Isles, Louisiana. A citizen reported that LEFERE had been carrying a firearm. NOPD officers recovered the firearm from the scene and eventually turned the gun over to the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
LEFERE faces up to fifteen years imprisonment, a fine of up to $250,000, up to three years of supervised release, and a $100 mandatory special assessment fee. Sentencing has been scheduled before Judge Vance for November 6, 2024.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the New Orleans Police Department. Assistant United States Attorney Andre J. Lagarde of the Public Integrity Unit oversees the prosecution.
New Jersey man sentenced for sexual contact of passenger on airplane to BozemanRead the Press Release
MISSOULA — A New Jersey man who admitted to sexually assaulting a woman passenger seated next to him on a flight from New Jersey to Bozeman was sentenced on Wednesday to five years of probation, with six months of home confinement, ordered to register as a sex offender and to pay a total of $5,100 in special assessments, U.S. Attorney Jesse Laslovich said today.
The defendant, Piyush Mathew, 31, of Robbinsville Township, New Jersey, pleaded guilty in March to abusive sexual contact in the special aircraft jurisdiction of the United States as charged in an indictment.
U.S. District Judge Dana L. Christensen presided.
In court documents, the government alleged that on Sept. 7, 2023, Mathew and the victim, identified as Jane Doe, were seated next to each other on United Airlines Flight 1300 from New Jersey to Bozeman. Doe was seated in the middle seat, while Mathew was seated in an aisle seat. Prior to departure, Mathew raised the armrest between them, and once the plane was in the air, he assaulted Doe for the duration of the flight. Mathew, pretending to be asleep, touched Doe multiple times on different parts of her body, including her thighs, fingers, arms, stomach, and breasts. Doe had hoped to alert the flight crew of Mathew’s behavior, however, Mathew stood immediately behind her for deboarding, and she felt she was unable to tell the flight crew. Instead, Doe approached another male passenger who was in front of them and pretended to know him as a safeguard from Mathew while leaving the plane. The male passenger reported to law enforcement that Doe looked upset and as if she were about to cry.
The U.S. Attorney’s Office prosecuted the case. The FBI, Gallatin Airport Authority, and Bozeman Airport Police conducted the investigation.
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New Haven Gang Member Admits Role in 2022 MurderRead the Press Release
DONELL ALLICK, JR., also known as “D-Nice,” 25, of New Haven, pleaded guilty today before U.S. District Judge Victor A. Bolden in New Haven to a racketeering offense related to his participation in a violent New Haven street gang and the murder of an individual in September 2022.
Today’s announcement was made by Vanessa Roberts Avery, United States Attorney for the District of Connecticut; John P. Doyle, Jr., State’s Attorney for the New Haven Judicial District; James Ferguson, Special Agent in Charge, ATF Boston Field Division; Robert Fuller, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation; Stephen Belleau, Acting Special Agent in Charge of the Drug Enforcement Administration for New England; and New Haven Police Chief Karl Jacobson.
According to court documents and statements made in court, in an effort to address violence in New Haven, the ATF, FBI, DEA and New Haven Police Department, working closely with the U.S. Attorney’s Office and New Haven State’s Attorney’s Office, have been investigating a gang war between members and associates of the Exit 8 street gang and rival gangs in the Hill section and other areas of the city. The Exit 8 gang is named after the geographic area accessed by exiting Interstate 91 at Exit 8 in New Haven. Recently, younger members of Exit 8 are identifying themselves with the word “Honcho,” which is derived from the street name of an Exit 8 member who was murdered on Quinnipiac Avenue in February 2020.
The investigation revealed that Allick and other members of the Exit 8 gang engaged in drug trafficking, used and shared firearms, and, since June 2018, have committed at least three murders and 16 attempted murders. Exit 8 members and associates also stole vehicles, at times from outside of the state, and used those stolen vehicles when committing acts of violence. Gang members also promoted, coordinated, facilitated, and celebrated their narcotics distribution and acts of violence through text messaging and the use of social media applications and websites including Facebook, Instagram, Snapchat, and YouTube.
Allick pleaded guilty to conspiracy to engage in a pattern of racketeering activity, including acts of violence, narcotics trafficking, and gun sales, and specifically admitted that, on September 16, 2022, he and others shot Kenneth Cloud, 46, who was sitting on the porch of an Atwater Street residence in New Haven. The victim was paralyzed as a result of the shooting and died approximately three months later. Forty-three shell casings were found at the scene of the shooting. Ballistics analysis revealed that 19 had been fired from a handgun later found in Allick’s vehicle, and 24 had been fired from a handgun later found inside Allick’s residence.
At sentencing, which is not scheduled, Allick faces a maximum term of imprisonment of life.
Allick has been detained since his arrest on November 10, 2022. On July 15, 2024, he was sentenced to 115 months of imprisonment in a separate federal case.
This investigation is being conducted by ATF, the FBI, the DEA, the New Haven Police Department, the Hamden Police Department, and the New Haven State’s Attorney’s Office, with the assistance of the Connecticut State Police and the Connecticut Forensic Science Laboratory. The case is being prosecuted by Assistant U.S. Attorneys Rahul Kale and Jocelyn C. Kaoutzanis.
This prosecution is a part of the Justice’s Department’s Project Safe Neighborhoods (PSN), Project Longevity and Organized Crime Drug Enforcement Task Forces (OCDETF) programs.
PSN is a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone. For more information about Project Safe Neighborhoods, please visit www.justice.gov/psn.
Project Longevity is a comprehensive initiative to reduce gun violence in Connecticut’s major cities. Through Project Longevity, community members and law enforcement directly engage with members of groups that are prone to commit violence and deliver a community message against violence, a law enforcement message about the consequences of further violence and an offer of help for those who want it.
OCDETF identifies, disrupts, and dismantles drug traffickers, money launderers, gangs and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state, and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Mt. Juliet Woman Sentenced for Long-Running Theft from Federal Health Care and Disability ProgramsRead the Press Release
NASHVILLE – Cathleen Caraballo, 48, of Mt. Juliet, Tennessee, was sentenced to serve 37 months in federal prison and to pay $575,855.09 in restitution earlier today, announced Henry C. Leventis, United States Attorney for the Middle District of Tennessee.
Caraballo previously pleaded guilty to federal wire fraud, health care fraud, and false statement charges. Her crimes stemmed from a long-running identity theft scheme through which Caraballo used a stolen identity to apply for and to obtain government benefits from two government programs, Social Security and Medicare. “This sentence holds the defendant accountable for stealing money from taxpayers and lining her pockets with funds intended for those who rely on Medicare and Social Security,” said United States Attorney Henry C. Leventis. “I commend our law enforcement partners for their tireless efforts to end the defendant’s scheme and to bring her to justice.”
Court documents show that Caraballo fraudulently obtained a state-issued driver’s license using a victim’s name and information, but with Caraballo’s picture. Caraballo then held herself out as the victim. In 2009, Caraballo submitted forms to the Social Security Administration purporting to be the victim and began receiving Social Security Disability Insurance (SSDI) payments in the victim’s name. After receiving SSDI benefits for a year, Caraballo was approved to receive Medicare benefits, and Medicare began paying Caraballo’s health care expenses based on Caraballo’s false claims. For more than a decade, Caraballo received SSDI payments and Medicare paid health care expenses to which she was not entitled. Caraballo’s identity theft scheme began to come to light in 2019, when the victim attempted to apply for government benefits under her own name.
When she was approached by law enforcement investigators, Caraballo lied about her true identity, presented the investigators with fraudulent documents in an attempt to mask the stolen identity, and signed a statement affirming that she was the victim. Following further investigation by law enforcement, Caraballo was confronted by agents and admitted to carrying out the fraud scheme for over a decade. As a result of the scheme, Caraballo obtained $152,913.20 in SSDI payments from the Social Security Administration, and Medicare made payments for Caraballo’s health care in the amount of $422,941.89. As part of her plea agreement, Caraballo agreed to pay restitution of these amounts.
The case was investigated by the U.S. Department of Health and Human Services - Office of Inspector General, and U.S. Social Security Administration, Office of Inspector General. Assistant United States Attorney Chris Suedekum prosecuted the case.
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Montgomery Woman Pleads Guilty to COVID-19 Era Relief FraudRead the Press Release
MONTGOMERY, ALABAMA – On July 31, 2024, 39-year-old Tametria Conner Dantzler, from Montgomery, Alabama, pleaded guilty to wire fraud and money laundering charges related to loans received through the Coronavirus Aid Relief and Economic Security (CARES) Act and the Economic Injury Disaster Loan (EIDL) program, announced United States Attorney Jonathan S. Ross.
The CARES Act is a federal law enacted in March 2020 to provide emergency financial assistance to the millions of Americans suffering the economic effects caused by the COVID-19 pandemic. The CARES Act established the EIDL program, which was directly administered by the Small Business Administration. This financial assistance program was designed to help eligible small businesses by giving them working capital to make regular payments for operating expenses such as payroll, rent or mortgage expenses, utilities, or business debt.
According to her plea agreement and other court records, in June of 2020, Dantzler made false statements on EIDL applications. Dantzler claimed she created companies, including Conner Consulting LLC, and represented that the companies met the program requirements for EIDL loans. In all, Dantzler obtained approximately $927,338.47 in grants and forgivable loans to which she was not entitled. She also accepted fees or traded fake “payroll checks” in exchange for assisting others to obtain an additional $1,049,864 in grants and forgivable loans to which they were not entitled. Also in her plea agreement, Dantzler admitted she used some of the proceeds for unauthorized purposes, such as buying a house and paying off a vehicle for her husband.
“Government fraud is not a victimless crime,” said United States Attorney Ross. “A financial loss to the United States is a loss to the U.S. taxpayer. The U.S. Attorney’s Office, along with law enforcement partners, will continue efforts to identify and prosecute anyone personally profiting from funds intended to provide relief for businesses.”
“I hope those who defrauded the COVID-19 relief programs are noticing the number of people being held accountable in the justice system for their crimes,” said Demetrius Hardeman, Special Agent in Charge, IRS Criminal Investigation, Atlanta Field Office. “IRS Criminal Investigation special agents and our law enforcement partners continue initiating new investigations on people who diverted COVID-19 relief money into their own pockets which was intended to help economically stress businesses.”
"Tametria Dantzler fabricated documents and created a fraud scheme that diverted critical taxpayer money that was intended to help actual struggling businesses during an unprecedented pandemic for her own self-enrichment," said Acting Special Agent-in-Charge George Richardson with the U.S. Department of Housing and Urban Development, Office of Inspector General. “HUD OIG remains steadfast in its commitment to working with our prosecutorial and law enforcement partners to aggressively pursue those who engage in activities that threaten the integrity of HUD programs.”
Following her guilty plea, Dantzler faces a potential sentence of up to 20 years in federal prison, plus an order of restitution to her victims. A sentencing hearing will be scheduled for Dantzler in the coming months. At that hearing, a federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI Mobile Field Office and Internal Revenue Service Criminal Investigation investigated this case, with assistance from the U.S. Department of Housing and Urban Development Office of Inspector General. Assistant United States Attorney Megan A. Kirkpatrick is prosecuting the case.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Milwaukee Man Pleads Guilty to Smuggling Machine Gun Conversion Devices and Felon in Possession of a FirearmRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that on July 24, 2024, Demario Robinson (age 22) pled guilty to smuggling machinegun conversion devices, in violation of 18 U.S.C. § 545, and possession of a firearm by a felon, in violation of 18 U.S.C. § 922(g)(1).
Based on the criminal complaint and the plea agreement filed in this case, between July 11, 2022, and June 5, 2023, Robinson bought and caused to be imported over 200 machinegun conversion devices (MCDs), commonly referred to as “switches.” Robinson then sold these MCDs to others in the greater Milwaukee area. MCDs convert ordinary pistols into fully automatic weapons.
According to court records, Robinson was arrested on June 20, 2023, after U.S. Customs and Border Patrol agents intercepted a package sent from China containing 47 MCDs that Robinson arranged to have delivered to his residence in Milwaukee. A search warrant was then executed on his residence, resulting in the recovery of a firearm containing a MCD, which made it illegal to possess, even for someone otherwise not prohibited from possessing a firearm. Additionally, Robinson has a prior felony conviction prohibiting his possession of any firearm.
Based upon the counts of conviction, Robinson faces a statutory maximum of 35 years’ imprisonment. The sentencing hearing is scheduled for October 24, 2024, before United States District Judge J.P. Stadtmueller.
The case was investigated by the Department of Homeland Security, the Federal Bureau of Investigation – Milwaukee Area Safe Streets Task Force, and the Milwaukee Police Department – Special Investigations Division. It is being prosecuted by Assistant United States Attorneys Bill Roach and Mike Schindhelm.
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Mexican National Sentenced to Nearly 20 Years in Federal Prison for Meth TraffickingRead the Press Release
DEL RIO, Texas – A Mexican national was sentenced in a federal court in Del Rio to 235 months in prison for importing 69.5 kilograms of methamphetamine into the U.S. from Mexico.
According to court documents, Rey David Sonora-Villanueva, 36, of Nueva Rosita, Coahuila, Mexico, attempted to enter the U.S via the Eagle Pass Port of Entry on Feb. 26, 2020. During a vehicle inspection, Customs and Border Protection officers extracted 69.5 kilograms of methamphetamine from Sonora-Villanueva’s vehicle. Analysis of the seized methamphetamine revealed a purity level of 98%.
Sonora-Villanueva was indicted for four charges related to the possession and importation of methamphetamine. He pleaded guilty on Jan. 28, 2021 to one count of conspiracy to possess with intent to distribute methamphetamine.
U.S. Attorney Jaime Esparza of the Western District of Texas made the announcement.
Homeland Security Investigations and Customs and Border Protection investigated the case.
Assistant U.S. Attorneys Tyler Fleming and James Ward prosecuted the case.
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Melbourne Man Sentenced to More Than 3 Years for Unauthorized Use of an Access Device and Aggravated Identity TheftRead the Press Release
Orlando, Florida – U.S. District Judge Paul G. Byron has sentenced William Fisher (60, Melbourne) to 3 years and 6 months in federal prison for access device fraud and aggravated identity theft. Fisher pleaded guilty on April 4, 2024.
According to court documents, Fisher, while aiding and abetting Tonie Marie Marriott, knowingly and with intent to defraud, used an unauthorized debit card in another person’s name to make purchases over $1,000 at various retail stores and elsewhere. Together, Fisher and Marriott also broke into United States post office boxes and stole mail throughout the Middle District of Florida.
Marriott was previously sentenced to 3 years in federal prison for her participation in the offenses.
This case was investigated by the United States Postal Inspection Service. It was prosecuted by Assistant United States Attorney Kara M. Wick.
Mead Man Pleads Guilty to Bank Fraud for Defrauding COVID-19 Relief ProgramsRead the Press Release
Spokane, Washington - Vanessa R. Waldref, United States Attorney for the Eastern District of Washington, announced today that Antonio Feliciano Crawford, age 54, of Mead Washington, pleaded guilty to one count of Bank Fraud. United States District Judge Thomas O. Rice accepted Crawford’s guilty plea and scheduled a sentencing hearing for October 30, 2024, in Spokane, Washington.
On March 27, 2020, the President signed into law the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The CARES Act provided a number of programs through which eligible small businesses could request and obtain relief funding intended to mitigate the economic impacts of the pandemic for small and local businesses. One program, the Paycheck Protection Program (PPP) program, offered forgivable loans to eligible small businesses in order to retain or rehire employees who lost their jobs, or were in danger of doing so, due to the pandemic. Another program, the Economic Injury Disaster Loan (EIDL) program, provided low interest loans that could be deferred until the conclusion of the pandemic to provide “bridge” funding for small businesses to maintain their operations during shutdowns and other economic circumstances caused by the pandemic. The PPP and EIDL programs have provided billions of dollars in aid, the vast majority of which have not been paid back, including hundreds of millions of dollars disbursed within Eastern Washington.
In the plea agreement accepted by the court, and in information disclosed during court proceedings, Crawford, age 54, of Mead, Washington, filed false and fraudulent PPP and EIDL applications during 2020 and 2021 on behalf of four companies purportedly owned and operated by Crawford: Tann LLC, Crawford Entertainment, A&M Personal Training LLC, and a sole proprietorship doing business as “Antonio Crawford.” Crawford submitted false and fraudulent information and documentation, including fraudulent and fictitious purported tax returns for the companies, in order to obtain at least $186,971 in PPP and EIDL funding for which he was not eligible.
U.S Attorney Waldref highlighted the dedication of prosecutors and investigators that make up the COVID-19 Fraud Strike Force. “This guilty plea is the result of many hours of tireless work by members of the COVID-19 Fraud Task Force, which is dedicated to the mission of fighting COVID fraud in Eastern Washington. Mr. Crawford repeatedly took advantage of federal programs designed to provide a financial lifeline to small and local businesses during an unprecedented global pandemic. I am grateful for the close law enforcement partnerships we enjoy in the Eastern District of Washington that allow federal prosecutors in my office to target fraudsters and hold them accountable for their actions.”
“Though HSI encounters many different types of crooks and fraudsters, there is something particularly vile about those that would take advantage of crucial government aid programs when they are needed the most,” said Special Agent in Charge Robert Hammer, who oversees HSI operations in the Pacific Northwest. “Our agents will continue to support the law enforcement partnerships that are investigating COVID-19 related fraud, maintaining fairness in the programs that are important to the resiliency of our nation.”
"This case demonstrates our unwavering commitment to protecting the integrity of COVID-19 relief programs,” said SBA OIG’s Western Region Special Agent in Charge Weston King. “Fraudulent activities undermine the purpose of these essential programs, designed to support legitimate small businesses struggling during the pandemic. I want to thank the U.S. Attorney’s Office and our law enforcement partners for remaining vigilant in identifying and pursuing those who exploit federal relief efforts for personal gain."
In February 2022, U.S. Attorney Waldref and the U.S. Attorney’s Office (USAO) began working with federal law enforcement agencies to create and launch a COVID-19 Fraud Strike Force that would leverage partnerships between different agencies to aggressively investigate and prosecute fraud against COVID-19 relief programs in Eastern Washington. The Strike Force consists of agency representatives from the USAO, Small Business Administration (SBA) Office of Inspector General (OIG), Federal Bureau of Investigation (FBI), U.S. Department of the Treasury Inspector General for Tax Administration (TIGTA), U.S. Secret Service, U.S. Homeland Security Investigations (HSI), U.S. Department of Veterans Affairs OIG, General Services Administration OIG, Department of Homeland Security (DHS) OIG, Internal Revenue Service, Department of Energy OIG, and others.
This case was investigated by the HSI Spokane Field Office, TIGTA, SBA OIG, and the Department of Homeland Security OIG. The case is being prosecuted by Assistant United States Attorneys Dan Fruchter, Jeremy J. Kelley, and Devin C. Curda.
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Man who Set Fire to St. Louis Apartment Sentenced to 66 Months in PrisonRead the Press Release
ST. LOUIS – U.S. District Judge Rodney W. Sippel on Tuesday sentenced a man who set fire to his girlfriend’s apartment after threatening her with a gun to 66 months in prison.
Willie Latimore, 27, of St. Louis, was also ordered to pay $7,087 to the owners of the apartment building. Latimore pleaded guilty to one count of arson and one count of being a felon in possession of a firearm. He admitted setting fire to his then-girlfriend’s apartment in St. Louis on May 11, 2023.
St. Louis Metropolitan Police Department officers were called to the woman’s apartment on Washington Avenue downtown after he began attempting to kick her apartment door down. They arrived to find smoke coming from her apartment. Latimore had piled clothing on her stove and set it on fire. She was hiding at a neighbor’s apartment because he had threatened her earlier in the day with a gun.
St. Louis’ Real Time Crime Center tracked Latimore’s car, and police arrested him later that day after a brief vehicle and foot chase. Latimore dropped a handgun as he ran.
The St. Louis Metropolitan Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. Assistant U.S. Attorney Ryan Finlen prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Lynn Man Sentenced to over 12 Years in Prison for Counterfeit Pill Trafficking ConspiracyRead the Press Release
BOSTON – A Lynn man was sentenced today in federal court in Boston for his role in a North Shore-based drug trafficking organization (DTO) that distributed tens of thousands of counterfeit prescription pills containing fentanyl and methamphetamine.
Lawrence Nagle Sr. (Nagle Sr.), 56, was sentenced by U.S. District Court Chief Judge F. Dennis Saylor IV to 151 months in prison to be followed by five years of supervised release. In April 2024, Nagle pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute controlled substances.
Nagle Sr.’s two sons, Christopher Nagle and Lawrence Michael Nagle, were allegedly identified as leaders of a DTO distributing various controlled substances throughout the North Shore region of Massachusetts. The Nagle DTO distributed significant quantities of various controlled substances, including, Adderall (both pharmaceutical-grade pills and counterfeit pills containing methamphetamine), methamphetamine, Xanax, oxycodone (both pharmaceutical-grade and counterfeit pills containing fentanyl), cocaine and marijuana, among others.
Lawrence Michael Nagle allegedly distributed controlled substances to a small network of individuals who would then redistribute the drugs to other traffickers.
The investigation revealed that Nagle Sr. was a member of the DTO, allegedly distributing controlled substances on his sons’ behalf and storing substantial quantities of controlled substances at his residence. On Oct. 25, 2024, investigators searched Nagle Sr.’s residence and recovered 5.9 kilograms of fentanyl, including counterfeit oxycodone pills containing fentanyl; 1.3 kilograms of methamphetamine, including counterfeit Adderall pills containing methamphetamine; and one kilogram of cocaine. Investigators also recovered three firearms, including the long-barreled firearm depicted below.
Christopher Nagle pleaded guilty to his role in the drug trafficking conspiracy in April 2024 and is scheduled to be sentenced on Aug. 13, 2024. Lawrence Michael Nagle has pleaded not guilty and is pending trial.
Acting United States Attorney Joshua S. Levy; Stephen Belleau, Acting Special Agent in Charge of the Drug Enforcement Administration, New England Division; and John E. Mawn Jr., Interim Colonel of the Massachusetts State Police made the announcement today. Valuable assistance was provided by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Essex County District Attorney’s Office, and the Beverly, Everett, Lynn, Peabody, Revere, Salem, Saugus and Swampscott Police Departments. Assistant U.S. Attorney Evan D. Panich of the Narcotics & Money Laundering Unit is prosecuting the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The details contained in the indictment are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Long Beach Man Pleads Guilty to Role in Daylight Smash-and-Grab Robbery of Beverly Hills Jewelry Store that Netted Nearly $2.7 MillionRead the Press Release
LOS ANGELES – A Long Beach man pleaded guilty today to participating in the March 2022 daylight smash-and-grab robbery of a Beverly Hills jewelry store in which nearly $2.7 million worth of merchandise was stolen.
Jimmy Lee Vernon III, 32, pleaded guilty to one count of interference with commerce by robbery (Hobbs Act). He has been in federal custody since September 2022.
According to his plea agreement, on March 23, 2022, Vernon committed a robbery of the Luxury Jewels of Beverly Hills store. Vernon used heavy tools to smash the store’s display case while employees were present, causing fear of injury to people inside the store.
Vernon then removed jewelry and other items from the store display cases valued at approximately $2,674,600. The merchandise consisted of approximately 19 bracelets, seven pairs of earrings, four necklaces, a pair of obelisks, eight rings, and 20 watches, court documents state.
After the robbery, Vernon and his accomplices ran out of the store, leaving behind their Kia vehicle – which had been reported stolen out of Long Beach four days before the robbery, according to other court documents. During the robbery, Vernon’s cellphone fell out of his sweatpants pocket while he smashed the jewelry’s store’s window, was left behind and later recovered by law enforcement, according to an affidavit previously filed in this case.
Two days after the robbery, one of Vernon’s accomplices posted on his Instagram account numerous photographs that included large stacks of money and a message praising his “robbery gang,” court documents state.
United States District Judge George H. Wu scheduled an October 10 sentencing hearing, at which time Vernon will face a statutory maximum sentence of 20 years in federal prison.
As for Vernon’s co-defendants, Deshon Bell, 22, of Long Beach, pleaded guilty in December 2023 to one count of Hobbs Act robbery and was sentenced on February 26 to one year and one day in federal prison. Ladell Tharpe, 39, of Long Beach, has pleaded not guilty to the charges against him and faces an October 8 trial date.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
The FBI and the Beverly Hills Police Department investigated this matter.
Assistant United States Attorneys Kevin J. Butler of the Violent and Organized Crime Section and Kevin B. Reidy of the Major Frauds Section are prosecuting this case.
Latimer County Resident Pleads Guilty to Involuntary ManslaughterRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that David Lee Holloway, age 40, of Wilburton, Oklahoma, entered a plea of guilty to one count of Involuntary Manslaughter in Indian Country.
The Indictment alleged that on February 16, 2023, Holloway killed the victim while operating a motor vehicle under the influence of any intoxicating substance other than alcohol.
At the plea hearing, Holloway admitted that his actions caused the death of one person and inflicted serious bodily injury to another.
The crime occurred in Latimer County, within the boundaries of the Choctaw Nation Reservation, in the Eastern District of Oklahoma.
The charges arose from investigations by the Choctaw Nation Lighthorse Police Department, the Oklahoma Highway Patrol, and the Federal Bureau of Investigation.
The Honorable D. Edward Snow, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, accepted the plea and ordered the completion of a presentence investigation report. Holloway was remanded to the custody of the United States Marshal Service pending sentencing.
Landlord Sentenced to 15 Years in Prison for Possessing Child Sexual Abuse MaterialRead the Press Release
ALBANY, Ga. – A retired South Georgia school teacher and landlord was sentenced to serve 15 years in prison for possessing hundreds of images of child sexual abuse material after police first discovered hidden cameras he had placed inside his rental property’s bathroom recording young children bathing and undressing.
David Swanson, 61, was sentenced to serve 180 months in prison to be followed by ten years of supervised release by U.S. District Judge W. Louis Sands on July 31. In addition, Swanson will have to register as a sex offender upon release from prison. Swanson previously pleaded guilty to one count of possessing child pornography. The defendant is not eligible for parole.
“Child predators caught secretly filming unsuspecting and innocent young children and possessing all manners of child sexual abuse material will face justice for these crimes,” said U.S. Attorney Peter D. Leary. “Law enforcement and prosecutors at every level across the Middle District of Georgia remain tireless in our pursuit of child predators out to harm our most vulnerable citizens.”
“The home should be a refuge for a family, particularly children. To violate that sanctuary is unforgivable, especially in such a reprehensible way,” said Jennifer Huerta, the Acting Special Agent in Charge of HSI Atlanta that oversees Georgia and Alabama. “Let this sentence serve as a reminder that HSI and its law enforcement partners are committed to investigating and holding offenders like Swanson accountable.”
According to court documents and statements referenced in court, a concerned citizen notified Ray City Police on March 1, 2023, that she found a hidden camera in the home she rented from Swanson. The responding officer located a camera hidden in the bathroom’s ceiling plugged into an extension cord that ran through the attic. The officer also found two more cameras hidden in electrical outlets in the same bathroom. The SD cards from the cameras contained images of four children between the ages of one to 12, changing clothes and using the toilet. There was also a video clip of Swanson stepping on the toilet, reaching towards the ceiling and then placing a small black object in his pocket. The numerous videos depicting nude minor children bathing and using the toilet were all recorded between Jan. 21, 2023, and Feb. 28, 2023.
Authorities checked Swanson’s other properties in Lowndes County and did not find additional cameras at the other residences. A search warrant was executed at Swanson’s Valdosta residence on March 3, 2023. Agents found approximately 750 images and videos of child sexual abuse material (CSAM)—also known as child pornography—on his electronic devices. Some of the material included children nude in bathrooms, as well as minors engaged in sexually explicit conduct. A review of Swanson’s laptop showed peer-to-peer programs had been loaded on the laptop and a search of the history revealed evidence of Swanson downloading pre-teen hardcore and evidence of a file named “child porn” that had been downloaded to what appeared to be an external drive. Swanson had recently retired as a teacher in the Lowndes County School System.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The case was investigated by the Berrien County Sheriff’s Office, the Lowndes County Sheriff’s Office, the Ray City Police Department and Homeland Security Investigations (HSI).
Assistant U.S. Attorney Crawford Seals prosecuted the case for the Government.
Lame Deer meth trafficker sentenced to five years in prisonRead the Press Release
MISSOULA — A Lame Deer man who admitted to distributing methamphetamine and acting as a drug debt collector on the Northern Cheyenne Indian Reservation was sentenced on Wednesday to five years in prison, to be followed by five years of supervised release, U.S. Attorney Jesse Laslovich said today.
The defendant, James “JC” Luis Costilla, 37, pleaded guilty in March to possession with intent to distribute meth.
U.S. District Judge Dana L. Christensen presided.
The government alleged in court documents that in September 2021 on the Northern Cheyenne Indian Reservation, Costilla was with a group of four individuals who were in a car stopped by law enforcement. Costilla distributed meth and worked as a collector for drug debts for his co-conspirators. In Costilla’s car, law enforcement found meth and three firearms--an AR rifle, a shotgun and a handgun. Co-defendant Jamesey Jefferson was sentenced to seven years in prison for her conviction in the case, and co-defendant Ivan Eaglefeathers was sentenced to six years in prison for his conviction in the case.
The U.S. Attorney’s Office prosecuted the case. The FBI and Bureau of Indian Affairs investigated the case.
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Lame Deer man sentenced to 10 years in prison for attempting to coerce and pay for sex with minors on Northern Cheyenne Indian ReservationRead the Press Release
BILLINGS — A Lame Deer man who admitted to attempting to have sex with two minor girls on the Northern Cheyenne Indian Reservation was sentenced today to 10 years in prison, to be followed by 10 years of supervised release, U.S. Attorney Jesse Laslovich said.
The defendant, Travis Dean Two Two, Sr., 36, pleaded guilty in March to attempted coercion and enticement and to attempted sex trafficking of a minor.
U.S. District Judge Susan P. Watters presided.
“Two Two is a predator who used social media to contact and communicate with juvenile girls for sexually explicit conduct for his own gratification. Prior to the initiation of this case, Two Two was a danger to children, especially girls of the Northern Cheyenne Nation. For at least the next 10 years, he’ll no longer be a threat to them,” U.S. Attorney Laslovich said.
In court documents, the government alleged that from about May 2023 to August 2023, in Lame Deer and Ashland, on the Northern Cheyenne Indian Reservation, Two Two communicated through Facebook with a 14-year-old girl, identified as Jane Doe 1, who was living on the Northern Cheyenne Reservation. The communications were made available to law enforcement, and law enforcement obtained consent to take over Doe 1’s account and communicate with Two Two. The communications became increasingly sexual. Two Two requested naked pictures of Doe 1 and made plans to meet with her for sex. Ultimately, Two Two discussed meeting Doe 1 at the MontanaFair in Billings, indicated he wanted to take nude pictures of her and “maybe make a video” of sex acts with her. He noted that he “like[s] them young.” Law enforcement arrested Two Two on Aug. 19, 2023 as he was leaving the MontanaFair.
The government further alleged that from about June 2023 until September 2023, at Lame Deer, Two Two attempted to engage a minor girl in commercial sex. In August 2023, law enforcement interviewed a 16-year-old girl, identified as Jane Doe 2, who indicated she had met Two Two in 2021 and that they had communicated though text messages in the summer of 2023. Doe 2 told law enforcement Two Two provided her with marijuana and that in exchange, Two Two began asking for sex acts to pay for the drug. Doe 2 indicated that she allowed this to occur on a couple of occasions.
The U.S. Attorney’s Office prosecuted the case. The FBI, Montana Division of Criminal Investigation, and Northern Cheyenne Investigative Services conducted the investigation.
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.
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Lady Lake Man Sentenced to More Than 11 Years in Prison for Possession of Child Sexual Abuse MaterialRead the Press Release
Ocala, FL – Senior United States District Judge Gregory A. Presnell has sentenced Aaron Taylor Lemire (29, Lady Lake) to 11 years and 3 months in federal prison, followed by 10 years of supervised release, for possession of child sexual abuse material. Lemire entered a guilty plea on February 6, 2024.
According to court documents, after an undercover detective received child sexual abuse images from Lemire, agents executed a search warrant on Lemire’s residence and seized his electronic devices. A forensic review of those devices revealed more than 100 files of child sexual abuse material depicting the abuse of children as young as six years old.
This case was investigated by the Seminole County Sheriff’s Office and the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Belkis H. Crockett.
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 United States Attorneys’ Offices and the Criminal Division’ Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Konawa Resident Sentenced for Involuntary Manslaughter in Indian CountryRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Kristy Renee Zapata-Gutierrez, age 35, of Konawa, Oklahoma, was sentenced to 30 months in prison for one count of Involuntary Manslaughter in Indian Country.
The charge arose from an investigation by the Oklahoma Highway Patrol, the Seminole Nation Lighthorse Police, and the Federal Bureau of Investigation.
On October 31, 2023, Zapata-Gutierrez pleaded guilty to causing the death of another while driving under the influence and in an unsafe manner. According to investigators, on the morning of March 19, 2023, while under the influence of amphetamine, methamphetamine, and clozapine, Zapata-Gutierrez pulled out onto State Highway 99 in front of oncoming traffic, causing a fatal collision. Zapata-Gutierrez’s passenger died from multiple blunt force injuries. The crime occurred in Seminole County, within the boundaries of the Seminole Nation Reservation, in the Eastern District of Oklahoma.
The Honorable Ronald A. White, Chief District Judge in the United States District Court for the Eastern District of Oklahoma, presided over the hearing. Zapata-Gutierrez will report to a designated Bureau of Prisons facility on August 29, 2024, to serve a non-paroleable sentence of incarceration.
Assistant United States Attorney Kevin Gross represented the United States.
Kennedale Tax Preparer Sentenced to 6+ Years in PrisonRead the Press Release
A Texas tax preparer who pleaded guilty to a $2.6 million tax fraud was sentenced to more than six years in federal prison, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Anthony “Tony” Floyd, 51, was charged in June 2023 with ten counts of aiding in the preparation and presentation of false tax returns. On the morning of his trial, shortly after a jury was seated, Mr. Floyd pleaded guilty to all 10 charges. He was sentenced Monday to 77 months in federal prison by U.S. District Judge Mark Pittman, who also ordered him to pay more than $1.9 million in restitution.
According to court documents, Mr. Floyd filed approximately 400 fraudulent tax returns that included false information designed to increase the amount of refund owed to the taxpayer.
He recruited victim “clients” outside big box stores and through other clients. He obtained their personal information, such as income and deduction information, via text or cell phone conversations, rarely meeting clients in person. Mr. Floyd purposely submitted the returns without reviewing with the taxpayer, then diverted all or most of the refund to his own account.
The resultant tax loss to the United States exceeded $2.6 million.
The tax filings included falsified W2s – filed on behalf of individuals purportedly working in catering, lawn care, event planning, interior décor, and other professions -- and included nonexistent charitable deductions, nonexistent college attendance, and even fictitious relatives.
“Mr. Floyd’s sentencing sends a message that tax fraud is not a victimless crime,” said Christopher J. Altemus Jr., Special Agent in Charge of the IRS Criminal Investigation’s Dallas Field Office. “Mr. Floyd took advantage of his neighbors by preparing fraudulent tax returns and trying to steal approximately $2 million from the U.S. government. His sentence of 77 months in prison holds him accountable for his crimes.”
“Everyone must ensure what is submitted is true and accurate when filing their taxes, even if they are prepared by a professional,” Mr. Altemus added.
IRS – Criminal Investigations conducted the investigation. Assistant U.S. Attorneys P.J. Meitl, Nancy Larson, and Mark Nicols (fmr) prosecuted the case.
Kagawaran ng Hustisya Nakuha ang Makasaysayang Kasunduan sa County ng Los Angeles upang Madagdagan ang Aksesibilidad para sa Botanteng may mga KapansananRead the Press Release
Inanunsyo ngayong araw ng Kagawaran ng Hustisya na naabot nito ang makasaysayang kasunduan sa County ng Los Angeles upang maresolba ang isinampa nitong kaso na nagsasabing nilabag ng county ang Batas sa mga Amerikanong may mga Kapansanan (Americans with Disabilities Act, ADA) sa pamamagitan ng pagkakait sa mga botanteng may mga kapansanan ng pantay na oportunidad na makibahagi sa mga programa, serbisyo at aktibidad nito ng pagboto noong nabigo ito sa pagpili at paggamit ng mga pasilidad sa mga lugar ng botohan na maa-access ng mga taong may mga kapansanan.
"Ang mga taong may mga kapansanan ay nararapat na ganap na mapabilang sa kahon ng balota," wika ng Katulong na Pangkalahatang Abogado na si Kristen Clarke ng Dibisyon para sa mga Karapatang Sibil ng Kagawaran ng Hustisya. "Nakatuon ang Kagawaran ng Hustisya sa pagprotekta sa karapatan ng bawat karapat-dapat na botante, kabilang ang mga botanteng may mga kapansanan, upang makibahagi sa ating proseso ng halalan. Ang kasunduang ito ay dapat maghatid ng mensahe sa mga opisyal sa buong bansa hinggil sa pangangailangan na matiyak ang aksesibilidad ng proseso ng pagboto sa kasalukuyan."
"Ang karapatang bumoto ay mahalaga sa ating demokrasya at kailangang maprotektahan para lahat ng botante," wika ng Abogado ng U.S. na si Martin Estrada para sa Pangunahing Distrito ng California (Central District of California). "Ang mga botanteng may mga kapansanan ay nararapat sa pantay sa oportunidad na bumoto sa personal, nang pribado at nang malaya, kasama ang kanilang mga kapitbahay at kaibigan. Pinupuri namin ang County ng Los Angeles sa pangako nitong makipagtulungan sa Kagawaran ng Hustisya upang matiyak ang pantay na pag-access para sa mga indibidwal na may mga kapansanan."
Isinampa ang kaso noong Hunyo 2023 pagkatapos ng mahabang imbestigasyon na natagpuan na hindi isinama ng county ang mga indibidwal na may mga kapansanan sa pagsali sa sa-personal na programa ng pagboto sa county. Ang Tanggapan para sa Pangunahing Distrito ng California (Office for the Central District of California) ng Abogado ng U.S. ay nagsarbey ng daan-daang lugar ng botohan sa mga halalan noong Hunyo 2016, Marso 2020, Nobyembre 2020 at Nobyembre 2022 at natagpuan na ang karamihan ay may mga arkitektural na hadlang, tulad ng matatarik na rampa, biglaang mga pagbabago ng taas ng mga lalakaran at pintong papasukan, at kakulangan ng maa-access na paradahan. Ang mga hadlang na ito ay pumigil sa mga taong may mga kapansanan sa pagkilos at paningin na makapunta sa mga sentro ng botohan nang ligtas at bumoto sa personal. Sinasabi rin sa kaso na ang programa ng pagboto sa bangketa (curbside voting program) ng county ay hindi ma-access, dahil may ilang sentro ng botohan na kulang sa karatula na nagsasaad na mayroong pagboto sa bangketa o nabigo sa pagkakaloob ng sapat na pamamaraan kung saan kayang makipag-ugnayan ng botante sa isang manggagawa sa halalan para sa tulong sa pagboto sa bangketa.
Ang kasunduan, na inihain sa hukuman ngayong umaga, ay dadagdagan ang aksesibilidad para sa mga botanteng may mga kapansanan. Sa ilalim ng kasunduan, makikipagtulungan ang County ng Los Angeles sa independiyenteng eksperto sa aksesibilidad ng tatlong taon sa mga patakaran at pamamaraan ng pagpili ng lugar upang matiyak na pinipili ng county ang mga lokasyon ng sentro ng botohan na maa-access o maaaring gawing mas maa-access sa panahon ng pagboto sa pamamagitan ng paggamit ng mga pansamantalang hakbang sa pagremedyo. Sumang-ayon ang county na makipagtulungan sa mga eksperto at ipatupad ng kagawaran ang mga rekomendasyon ng eksperto. Magbibigay ang eksperto ng mga ulat ng dalawang beses sa isang taon sa kanilang mga natuklasan sa county at sa kagawaran.
Sa mahigit 500 pulitikal na distrito at tinatayang 4.3 milyong rehistradong botante, ang County ng Los Angeles ay ang pinakamalaking hurisdiksyon ng halalan sa bansa.
Ang imbestigasyon sa County ng Los Angeles ay bahagi ng Inisyatiba sa Pagboto ng ADA ng kagawaran, na nakatuon sa pagprotekta sa mga karapatan sa pagboto ng mga indibidwal na may mga kapansanan sa buong bansa. Ang higit pang impormasyon tungkol sa pagboto at mga halalan ay makukuha sa website ng Kagawaran ng Hustisya sa www.justice.gov/voting. Para sa higit pang impormasyon hinggil sa Dibisyon para sa mga Karapatang Sibil, mangyaring bumisita sa www.justice.gov/crt. Para sa higit pang impormasyon hinggil sa ADA, mangyaring tawagan ang walang bayad na Linya para sa Impormasyon ng ADA sa 1-800-514-0301 (TTY 1-833-610-1264) o bumisita sa www.ada.gov. Kung naniniwala kang ikaw ay nadiskrimina batay sa kapansanan, mangyaring magsumite ng ulat online sa www.civilrights.justice.gov. Ang Katulong na Abogado ng U.S. at Pinuno ng Seksyon para sa mga Karapatang Sibil na si Richard Park at ang mga Katulong na Abogado ng U.S. na sina Katherine Hikida, Matthew Barragan, Margaret Chen at Alexandra Young para sa Pangunahing Distrito ng California ay pinangasiwaan ang bagay na ito, kasama ang Seksyon para sa mga Karapatan ng may Kapansanan ng Dibisyon para sa mga Karapatang Sibil ng Kagawaran ng Hustisya.
Noong nakaraang buwan, idinaos ang ika-34 na anibersaryo ng ADA, na nilagdaan ni Pangulong George H.W. Bush upang maging batas noong Hulyo 26, 1990. Ang ADA ay ang kauna-unahan sa mundo na komprehensibong batas sa mga karapatang sibil para sa mga indibidwal na may mga kapansanan. Habang ipinagdiriwang namin ang ika-34 na anibersaryo ng ADA, naglalaan kami ng panahon upang kilalanin ang mga kapakinabangan ng ADA, habang nagpapasalamat din na mayroon pa ring dapat gawin upang maisakatuparan ang mga nagtatagal na layunin ng ekidad, ingkluson, at aksesibilidad para sa mga indibidwal na may mga kapansanan.
KC Woman Pleads Guilty to $900,000 Covid Fraud SchemeRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Mo., woman pleaded guilty in federal court today to her role in two separate conspiracies that resulted in more than $900,000 in fraudulent Paycheck Protection Program (PPP) loans being issued under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
Renetta Golden-Larimore, 55, pleaded guilty before U.S. District Judge Brian C. Wimes to two counts of conspiracy to commit wire fraud, contained in two separate federal indictments.
The CARES Act established several new temporary programs and provided for the expansion of others to address the COVID-19 pandemic. Among these programs, the Paycheck Protection Program (PPP) authorized forgivable loans to small businesses to retain workers and maintain payroll, make mortgage interest payments, lease payments, and utility payments.
By pleading guilty today, Golden-Larimore admitted that from February 2021 to May 2022 she conspired with others to submit false and fraudulent applications for PPP loans. The scheme caused over $900,000 in fraudulent PPP loans to be issued to ineligible borrowers, some of which were forgiven even though the funds were not used for the purposes specified in the PPP.
Golden-Larimore admitted she prepared and filed fraudulent PPP loan applications on behalf of other persons. Generally, she charged fees between $2,000 and $7,000 for her assistance in filing false and fraudulent PPP loans, earning a total of at least $75,833 from the scheme. Golden-Larimore created counterfeit IRS forms for nonexistent businesses and with inflated income for existing businesses in order to qualify the borrower for a PPP loan.
Golden-Larimore prepared approximately 43 false PPP loan applications that were funded and numerous other false applications that were rejected. The total loss to the Small Business Administration was $908,278.
Twenty other persons have been charged and convicted in the Golden-Larimore fraud scheme in these two cases and five additional cases.
Under the terms of today’s plea agreement, Golden-Larimore must forfeit to the government at least $75,833, which represents the proceeds she personally obtained from the scheme, and pay $908,278 in restitution to the Small Business Administration, representing the total fraud loss associated with the wire fraud scheme.
Under federal statutes, Golden-Larimore is subject to a sentence of up to 20 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Paul S. Becker. It was investigated by IRS-Criminal Investigation and the Kansas City, Mo., Police Department.
Justice Department finds that conditions at five Texas juvenile justice facilities, including Gainesville State School in the Eastern District of Texas, violate the ConstitutionRead the Press Release
PLANO, Texas – The Justice Department announced today its findings that the Texas Juvenile Justice Department (TJJD) is violating the U.S. Constitution, as well as the Individuals with Disabilities Education Act (IDEA) and the Americans with Disabilities Act (ADA).
“Children are committed to TJJD facilities to receive treatment and rehabilitation so that they may return to their communities as law-abiding, productive citizens,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Our investigation showed that, far from achieving those objectives, TJJD engaged in a pattern of abuse, deprivation of essential services and disability-related discrimination that seriously harms children and undermines their rehabilitation. State officials have an obligation to keep these children safe, to teach them, to provide them necessary health services and to treat them fairly, without discrimination. The Justice Department is committed to protecting the rights of vulnerable children in juvenile facilities. We look forward to working with state officials to remedy these violations, institute needed reform and improve outcomes for Texas children.”
The department’s report details findings from a comprehensive investigation of five TJJD youth facilities, including the Evins Regional Juvenile Center, Gainesville State School, Giddings State School, McClennan County State Juvenile Correctional Facility, and Ron Jackson State Juvenile Correctional Complex. The report concludes that:
- TJJD routinely violates the constitutional rights of children in all five facilities by:
- Exposing them to excessive force and prolonged isolation;
- Failing to protect children from sexual abuse; and
- Failing to provide adequate mental health services.
- TJJD violates the IDEA by failing to provide special education and related services to children with disabilities.
- TJJD discriminates against children with disabilities in violation of the ADA by:
- Not providing reasonable modifications necessary to permit their participation in programming required for release and
- Denying them an equal opportunity to benefit from education.
These violations of the Constitution and federal law place children at substantial risk of serious physical and psychological harm and impede successful outcomes for children.
“States that receive federal funds to help educate children with disabilities are required to use those funds appropriately for the benefit of these children,” said U.S. Attorney Damien M. Diggs for the Eastern District of Texas. “Systematically failing to evaluate children suspected of having disabilities inevitably deprives these children of the special education these funds were meant to provide. Texas received funds under the Individuals with Disabilities Education Act, but failed to meet their obligation to ensure that children with disabilities would receive adequate education according to their special needs, among other things. Without appropriate services, children with disabilities in Texas juvenile corrections facilities cannot access the general education curriculum, preventing meaningful rehabilitation and progress. We look forward to working with Texas to rectify the issues we identified in our investigation so that these children, through meeting their educational needs, may have a better chance to succeed when they return to our communities.”
The Justice Department launched its investigation of TJJD’s juvenile justice facilities in October 2021, under the Civil Rights of Institutionalized Persons Act and the Violent Crime Control and Law Enforcement Act of 1994, which authorize the department to address a pattern or practice of deprivation of constitutional and federal rights of children confined to state or local government-run correctional facilities.
The Civil Rights Division’s Special Litigation Section and the U.S. Attorneys’ Offices in Texas investigated the case.
For more information about the Civil Rights Division and the Special Litigation Section, please visit www.justice.gov/crt/special-litigation-section. You can also report civil rights violations to the section by completing the complaint form available at https://civilrights.justice.gov.
To provide information related to the department’s investigation of TJJD’s facilities, please call 1-866-432-0438 or by email at [email protected].
Spanish translation forthcoming. (La traducción al español estará disponible próximamente.)
###
- TJJD routinely violates the constitutional rights of children in all five facilities by:
Justice Department finds conditions at five Texas Juvenile Justice facilities violate the ConstitutionRead the Press Release
HOUSTON – The Justice Department has announced its findings that the Texas Juvenile Justice Department (TJJD) is violating the U.S. Constitution, as well as the Individuals with Disabilities Education Act (IDEA) and the Americans with Disabilities Act (ADA).
“Children are committed to TJJD facilities to receive treatment and rehabilitation so that they may return to their communities as law-abiding, productive citizens,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Our investigation showed that, far from achieving those objectives, TJJD engaged in a pattern of abuse, deprivation of essential services and disability-related discrimination that seriously harms children and undermines their rehabilitation. State officials have an obligation to keep these children safe, to teach them, to provide them necessary health services and to treat them fairly, without discrimination. The Justice Department is committed to protecting the rights of vulnerable children in juvenile facilities. We look forward to working with state officials to remedy these violations, institute needed reform and improve outcomes for Texas children.”
The department’s report details findings from a comprehensive investigation of five TJJD youth facilities, including the Evins Regional Juvenile Center, Gainesville State School, Giddings State School, McClennan County State Juvenile Correctional Facility and Ron Jackson State Juvenile Correctional Complex. The report concludes that:
- TJJD routinely violates the constitutional rights of children in all five facilities by:
- Exposing them to excessive force and prolonged isolation;
- Failing to protect children from sexual abuse; and
- Failing to provide adequate mental health services.
- TJJD violates the IDEA by failing to provide special education and related services to children with disabilities.
- TJJD discriminates against children with disabilities in violation of the ADA by:
- Not providing reasonable modifications necessary to permit their participation in programming required for release and
- Denying them an equal opportunity to benefit from education.
These violations of the Constitution and federal law place children at substantial risk of serious physical and psychological harm and impede successful outcomes for children.
“The conditions in the facilities are unacceptable,” said U.S. Attorney Alamdar S. Hamdani for the Southern District of Texas. “Our investigation found that children in these facilities face sexual abuse by staff and other children. Tragically, this is not the first investigation into allegations of sexual abuse at TJJD facilities. Since the early 2000s, other investigations by Texas state agencies and the Texas Rangers substantiated sexual abuse allegations of the children at TJJD facilities, yet this horrifying problem persists. Working with Texas’s other U.S. Attorneys’ Offices, the Civil Rights Division and the State of Texas, my office hopes to provide protections to the vulnerable and help right wrongs that have existed for far too long.”
“My office was proud to partner with the Civil Rights Division and with other U.S. Attorneys’ Offices in our state on this thorough investigation of the Texas Juvenile Justice Department,” said U.S. Attorney Jaime Esparza for the Western District of Texas. “The children in these facilities are uniquely vulnerable to harm and abuse, which hinders their prospects for rehabilitation. They deserve to be protected from harm, to receive adequate mental health care and to receive special education services and reasonable modifications that will give them a chance at productive lives in the community, outside of the walls of these institutions.”
“According to our report, TJJD falls short of creating an environment that fosters rehabilitation,” said U.S. Attorney Leigha Simonton for the Northern District of Texas. “Instead, some of its personnel engage in the use of excessive force and subject children to prolonged isolation, both of which are damaging. Texans know that this is not how we rehabilitate our children. We look forward to working with the State and TJJD to eliminate these issues going forward. Together, I am confident that we can implement practices that result in a better rehabilitative environment at the TJJD and ensure a pathway for children in their care to grow, heal and reach their full potential.”
“States that receive federal funds to help educate children with disabilities are required to use those funds appropriately for the benefit of these children,” said U.S. Attorney Damien M. Diggs for the Eastern District of Texas. “Systematically failing to evaluate children suspected of having disabilities inevitably deprives these children of the special education these funds were meant to provide. Texas received funds under the Individuals with Disabilities Education Act, but failed to meet their obligation to ensure that children with disabilities would receive adequate education according to their special needs, among other things. Without appropriate services, children with disabilities in Texas juvenile corrections facilities cannot access the general education curriculum, preventing meaningful rehabilitation and progress. We look forward to working with Texas to rectify the issues we identified in our investigation so that these children, through meeting their educational needs, may have a better chance to succeed when they return to our communities.”
The Justice Department launched its investigation of TJJD’s juvenile justice facilities in October 2021, under the Civil Rights of Institutionalized Persons Act and the Violent Crime Control and Law Enforcement Act of 1994, which authorize the department to address a pattern or practice of deprivation of constitutional and federal rights of children confined to state or local government-run correctional facilities.
The Civil Rights Division’s Special Litigation Section and the U.S. Attorneys’ Offices in Texas investigated the case.
For more information about the Civil Rights Division and the Special Litigation Section, please visit www.justice.gov/crt/special-litigation-section. You can also report civil rights violations to the section by completing the complaint form available at https://civilrights.justice.gov.
To provide information related to the department’s investigation of TJJD’s facilities, please call 1-866-432-0438 or by email at [email protected].
Spanish translation forthcoming. (La traducción al español estará disponible próximamente.)
- TJJD routinely violates the constitutional rights of children in all five facilities by:
Justice Department and Federal Trade Commission Host First Strike Force on Unfair and Illegal Pricing MeetingRead the Press Release
The Justice Department (DOJ) and Federal Trade Commission (FTC) virtually cohosted the first public meeting of the Strike Force on Unfair and Illegal Pricing (Strike Force) to discuss Strike Force enforcement actions taken to lower prices for Americans.
DOJ Acting Associate Attorney General Benjamin C. Mizer, Assistant Attorney General Jonathan Kanter of the Antitrust Division, Principal Deputy Assistant Attorney General Brian Boynton, head of the Civil Division, and FTC Chair Lina M. Khan, along with other agencies on the Strike Force, assembled to highlight the following Strike Force enforcement actions:
- FTC Chair Khan highlighted the FTC’s recent work to stop corporate lawbreaking that raises prices for Americans, including uncovering evidence of corporate conduct that may raise the price of gas, working to lower the cost of many asthma inhalers to just $35 out-of-pocket, and making it easier for Americans to cancel online subscriptions they don’t want. Chair Khan announced that she will ask the Commission to launch an inquiry into grocery prices in order to probe the tactics that big grocery chains use to hike prices and extract profits from everyday Americans at the checkout counter.
- DOJ Acting Associate Attorney General Mizer described DOJ’s efforts to tackle unlawful behavior that affects the prices Americans pay for their groceries, transportation, and health care. Assistant Attorney General Kanter highlighted the historic and concrete actions Antitrust Division staff are undertaking to enforce the law and lower prices in higher education, housing, transportation, food, agriculture, live music, healthcare, and other vital industries. Principal Deputy Assistant Attorney General Boynton highlighted the Civil Division’s work to combat fraudulent pricing schemes involving government agencies and financial institutions, as well as schemes designed to defraud consumers through unfair and deceptive marketing or billing practices.
- Deputy Secretary Xochitl Torres Small of the U.S. Department of Agriculture (USDA) highlighted the all-of-USDA approach to tackling food and agricultural pricing challenges for farmers and consumers alike, including an ongoing investigative study on retail concentration and market practices as well as landmark efforts to modernize the Packers & Stockyards Act rulebook and build a competition partnership with state attorneys general.
- Deputy Secretary Andrea Palm of the U.S. Department of Health and Human Services (HHS) spoke on HHS’ work to make health care affordable, transparent, and fair for everyone. Increasing competition and transparency, lowering prescription drug prices, and expanding access to health care are key ways to make sure our health care system is working for all Americans.
- Acting General Counsel Subash Iyer of the U.S. Department of Transportation (DOT) spoke about DOT’s work to protect airline passengers from unfair practices that can make it more expensive to fly, including by proposing a ban on family seating junk fees and investigating Delta’s refund, reimbursement, and customer service problems during the recent IT meltdown.
- Chair Gary Gensler of the U.S. Securities and Exchange Commission (SEC) spoke about the SEC’s work to address unfair, deceptive, and anticompetitive business practices. The SEC is the cop on the beat for the securities markets. The agency’s rulemaking projects promote transparency, access, and fair dealing in the markets. And through market oversight, including examining registrants and reviewing tens of thousands of filings each year, the SEC guards against fraud and deceptive practices and promotes competition.
- Chair Jessica Rosenworcel of the U.S. Federal Communications Commission (FCC) spoke about the FCC’s work to tackle unfair and deceptive pricing tactics in the communications sector, including by implementing new rules that will slash the exorbitant rates that incarcerated people and their families pay to stay connected.
- Director Rohit Chopra of the Consumer Financial Protection Bureau (CFPB) spoke about the CFPB’s work on junk fees, highlighting a report on school lunch fees, and a recently launched inquiry into junk fees in mortgage closing costs. The CFPB continues its work on all aspects of the credit card market, including looking into bait-and-switch rewards tactics, curbing excessive fees, and ensuring competition, all against the backdrop of interest rate margins hitting an all-time high. Additionally, the agency announced further scrutiny on the role of private equity investors in price gouging.
In March, at the sixth meeting of the White House Competition Council, President Biden announced the launch of the Strike Force to strengthen interagency efforts to root out and stop illegal corporate behavior that hikes prices on American families through anti-competitive, unfair, deceptive, or fraudulent business practices.
Justice Department Secures Landmark Agreement with Los Angeles County to Increase Accessibility for Voters with DisabilitiesRead the Press Release
WASHINGTON – The Justice Department announced today that it has reached a landmark agreement with the County of Los Angeles to resolve its lawsuit alleging that the county violated the Americans with Disabilities Act (ADA) by denying voters with disabilities an equal opportunity to participate in its voting programs, services and activities when it failed to select and use facilities as polling places that are accessible to persons with disabilities.
“People with disabilities are entitled to full inclusion at the ballot box,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department is committed to safeguarding the right of every eligible voter, including voters with disabilities, to participate in our electoral process. This agreement should send a message to officials across the country regarding the need to ensure the accessibility of the voting process now.”
“The right to vote is essential to our democracy and must be protected for all voters,” said U.S. Attorney Martin Estrada for the Central District of California. “Voters with disabilities are entitled to an equal opportunity to vote in person, privately and independently, alongside their neighbors and friends. We commend Los Angeles County for its commitment to work with the Justice Department to ensure equal access for individuals with disabilities.”
The lawsuit was filed in June 2023 following a lengthy investigation that found the county excluded individuals with disabilities from participating in the county’s in-person voting program. The U.S. Attorney’s Office for the Central District of California had surveyed hundreds of polling places in the June 2016, March 2020, November 2020 and November 2022 elections and found the vast majority had architectural barriers, such as steep ramps, abrupt level changes at walkways and entrance doors, and lack of accessible parking. These impediments prevented people with mobility and vision disabilities from being able to safely access vote centers and cast their ballots in person. The lawsuit also alleged that the county’s curbside voting program was inaccessible, as certain vote centers lacked signage indicating that curbside voting was available or failed to provide sufficient means by which a voter could contact an election worker for assistance with curbside voting.
The settlement, which was filed with the court earlier today, will increase accessibility for voters with disabilities. Under the agreement, Los Angeles County will work with an independent accessibility expert for three years on site selection policies and procedures to ensure that the county selects voting center locations that are accessible or can be made more accessible during the voting period by employing temporary remedial measures. The county has agreed to work with the expert and the department to implement the expert’s recommendations. The expert will provide semiannual reports on their findings to the county and the department.
With more than 500 political districts and approximately 4.3 million registered voters, Los Angeles County is the largest election jurisdiction in the nation.
The Los Angeles County investigation is part of the department’s ADA Voting Initiative, which focuses on protecting the voting rights of individuals with disabilities across the country. More information about voting and elections is available at www.justice.gov/voting. For more information on the Civil Rights Division please visit www.justice.gov/crt. For more information on the ADA, please call the department’s toll-free ADA Information Line at 1-800-514-0301 (TTY 1-833-610-1264) or visit www.ada.gov. If you believe you have been discriminated against based on disability please submit a report at www.civilrights.justice.gov.
Assistant U.S. Attorney and Chief of the Civil Rights Section Richard Park and Assistant U.S. Attorneys Katherine Hikida, Matthew Barragan, Margaret Chen and Alexandra Young for the Central District of California handled the matter, in coordination with the Justice Department’s Civil Rights Division’s Disability Rights Section.
Last month marked the 34th anniversary of the ADA, which President George H.W. Bush signed into law on July 26, 1990. The ADA was the world’s first comprehensive civil rights law for persons with disabilities. As we celebrate the 34th anniversary of the ADA, we take time to recognize the benefits of the ADA while also appreciating that there is still work to be done to achieve the enduring goals of equity, inclusion and accessibility for persons with disabilities.
Justice Department Secures Agreement with Los Angeles County to Ensure Vote Center Accessibility for Voters with DisabilitiesRead the Press Release
SETTLEMENT AGREEMENTLOS ANGELES – The Justice Department today announced an agreement with the County of Los Angeles to resolve its lawsuit alleging that the county violated the Americans with Disabilities Act of 1990 (ADA) by denying voters with disabilities an equal opportunity to participate in its voting programs, services, and activities when it failed to select and use facilities as polling places that are accessible to persons with disabilities.
The lawsuit was filed in June 2023 following a lengthy investigation that found the county excluded individuals with disabilities from participating in the county’s in-person voting program. The United States Attorney’s Office for the Central District of California had surveyed hundreds of polling places in the June 2016, March 2020, November 2020 and November 2022 elections and found the vast majority had architectural barriers, such as steep ramps, abrupt level changes at walkways and entrance doors, and lack of accessible parking. These impediments prevented people with mobility and vision disabilities from being able to safely access vote centers and cast their ballots in person. The lawsuit also alleged that the county’s curbside voting program was inaccessible, as certain vote centers lacked signage indicating that curbside voting was available or failed to provide sufficient means by which a voter could contact an election worker for assistance with curbside voting.
“The right to vote is essential to our democracy and must be protected for all voters,” said United States Attorney Martin Estrada. “Voters with disabilities are entitled to an equal opportunity to vote in person, privately and independently, alongside their neighbors and friends. We commend Los Angeles County for its commitment to work with the Justice Department to ensure equal access for individuals with disabilities.”
“People with disabilities are entitled to full inclusion at the ballot box,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department is committed to safeguarding the right of every eligible voter, including voters with disabilities, to participate in our electoral process. This agreement should send a message to officials across the country regarding the need to ensure the accessibility of the voting process now.”
The settlement, which was filed with the Court earlier today, will increase voter accessibility for voters with disabilities. Under the agreement, Los Angeles County will work with an independent accessibility expert on site selection policies and procedures to ensure that the county selects facilities, buildings, sites, or locations to serve as vote centers that are accessible or can be made more accessible during the voting period by employing temporary remedial measures. To achieve this commitment, the county has agreed to work with the expert and the United States to implement recommendations. The expert will provide biannual reports to the United States on the county’s progress in complying with the agreement. The expert will also consult with the county on its identification and use of temporary remedial measures for accessibility.
With more than 500 political districts and more than 5.6 million registered voters, Los Angeles County is the largest election jurisdiction in the nation.
This settlement is part of the Department’s ADA Voting Initiative, which focuses on protecting the voting rights of individuals with disabilities. A hallmark of the ADA Voting Initiative is its collaboration with jurisdictions to increase accessibility at polling places. Through this Initiative, the Department has surveyed more than 1,600 polling places and increased polling place accessibility in more than 35 jurisdictions, including Chicago; Hidalgo County, Texas; Cumberland County, Pennsylvania; and Coconino County, Arizona.
Those interested in finding out more about this settlement or the ADA may call the Justice Department’s toll-free ADA information line at (800) 514-0301 or (800) 514-0383 (TDD) or access its ADA website at www.ada.gov. ADA complaints may be filed online at http://www.ada.gov/complaint/
Assistant United States Attorneys Richard Park, Katherine Hikida, Matthew Barragan, Margaret Chen, and Alexandra Young for the Central District of California handled the matter, in coordination with the Justice Department’s Civil Rights Division’s Disability Rights Section.
Last month marked the 34th anniversary of the ADA, which President George H.W. Bush signed into law on July 26, 1990. The ADA was the world’s first comprehensive civil rights law for persons with disabilities. As we celebrate the 34th anniversary of the ADA, we take time to recognize the benefits of the ADA while also appreciating that there is still work to be done to achieve the enduring goals of equity, inclusion, and accessibility for persons with disabilities.
Justice Department Reaches Settlement with City of El Paso, Texas, and Its Contractors for Auctioning over 170 Vehicles Owned by ServicemembersRead the Press Release
The Justice Department today announced that it has reached settlements with the City of El Paso, Texas (the City); United Road Towing Inc., doing business as UR Vehicle Management Solutions (URT); and Rod Robertson Enterprises Inc (RRE) to resolve allegations that they violated the Servicemembers Civil Relief Act (SCRA). The United States’ complaint, which was filed on Feb. 2, 2023, alleges that the City and its contractors auctioned or otherwise disposed of over 170 vehicles owned by protected servicemembers without first obtaining court orders allowing them to do so.
“Members of our armed forces should not have to worry about their cars being auctioned off while they are on the front lines defending our freedoms, liberties and rights,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “These settlements should send a strong message to other cities that they should not take advantage of the rights of our servicemembers while they are defending us from harm."
“My office is committed to safeguarding the rights of servicemembers who call the Western District of Texas home,” said U.S. Attorney Jaime Esparza for the Western District of Texas. “I am proud of our partnership with the Civil Rights Division and our work fighting for the men and women in this district who have been deployed overseas.”
Under the agreements, which are subject to court approval, the City must develop new policies and procedures to ensure that contractors who are responsible for auctioning or otherwise disposing of impounded vehicles comply with the SCRA in the future. The City is also responsible for the payment of a $20,000 civil penalty.
RRE, which was the City’s contractor from January 2015 until April 2019, must establish a $140,000 settlement fund to compensate the affected servicemembers and pay a $20,000 civil penalty.
URT, which has been the City’s contractor since June 2019, must establish a $57,395 settlement fund to compensate servicemembers, pay a $24,980 civil penalty, provide SCRA training to its employees, adopt policies and procedures to investigate the military status of any registered owner prior to auctioning a vehicle and obtain a court order or a valid SCRA waiver prior to auctioning a vehicle owned by a protected servicemember.
The department launched its investigation after receiving a complaint from U.S. Army Lieutenant Colonel Lisa Dechent. While she was deployed to Afghanistan, the City had her 2016 White Chevrolet Silverado truck towed to the impound lot. URT sold it at auction for $6,200, without obtaining the court order required by the SCRA. At the time of the auction, Lieutenant Colonel Dechent still owed approximately $13,000 on the loan she had used to finance the purchase of the truck.
The department’s enforcement of the SCRA is conducted by the Civil Rights Division’s Housing and Civil Enforcement Section and U.S. Attorneys’ Offices throughout the country. Since 2011, the department has obtained over $481 million in monetary relief for over 147,000 servicemembers through its enforcement of the SCRA. For more information about the department’s SCRA enforcement efforts, please visit www.servicemembers.gov.
Servicemembers and their dependents who believe that their rights under SCRA have been violated should contact the nearest Armed Forces Legal Assistance Program Office. Office locations may be found at legalassistance.law.af.mil/.
View the consent order here.
View the order approving settlement here.
Justice Department Finds Unconstitutional Conditions at Five Texas Juvenile Justice FacilitiesRead the Press Release
The Justice Department announced today its findings that the Texas Juvenile Justice Department (TJJD) is violating the U.S. Constitution, as well as the Individuals with Disabilities Education Act (IDEA) and the Americans with Disabilities Act (ADA).
“Children are committed to TJJD facilities to receive treatment and rehabilitation so that they may return to their communities as law-abiding, productive citizens,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Our investigation showed that, far from achieving those objectives, TJJD engaged in a pattern of abuse, deprivation of essential services and disability-related discrimination that seriously harms children and undermines their rehabilitation. State officials have an obligation to keep these children safe, to teach them, to provide them necessary health services and to treat them fairly, without discrimination. The Justice Department is committed to protecting the rights of vulnerable children in juvenile facilities. We look forward to working with state officials to remedy these violations, institute needed reform and improve outcomes for Texas children.”
The department’s report details findings from a comprehensive investigation of five TJJD youth facilities, including the Evins Regional Juvenile Center, Gainesville State School, Giddings State School, McLennan County State Juvenile Correctional Facility, and Ron Jackson State Juvenile Correctional Complex. The report concludes that:
- TJJD routinely violates the constitutional rights of children in all five facilities by:
- Exposing them to excessive force and prolonged isolation;
- Failing to protect children from sexual abuse; and
- Failing to provide adequate mental health services.
- TJJD violates the IDEA by failing to provide special education and related services to children with disabilities.
- TJJD discriminates against children with disabilities in violation of the ADA by:
- Not providing reasonable modifications necessary to permit their participation in programming required for release and
- Denying them an equal opportunity to benefit from education.
These violations of the Constitution and federal law place children at substantial risk of serious physical and psychological harm and impede successful outcomes for children.
“My office was proud to partner with the Civil Rights Division and with other U.S. Attorneys’ Offices in our state on this thorough investigation of the Texas Juvenile Justice Department,” said U.S. Attorney Jaime Esparza for the Western District of Texas. “The children in these facilities are uniquely vulnerable to harm and abuse, which hinders their prospects for rehabilitation. They deserve to be protected from harm, to receive adequate mental health care and to receive special education services and reasonable modifications that will give them a chance at productive lives in the community, outside of the walls of these institutions.”
“According to our report, TJJD falls short of creating an environment that fosters rehabilitation,” said U.S. Attorney Leigha Simonton for the Northern District of Texas. “Instead, some of its personnel engage in the use of excessive force and subject children to prolonged isolation, both of which are damaging. Texans know that this is not how we rehabilitate our children. We look forward to working with the State and TJJD to eliminate these issues going forward. Together, I am confident that we can implement practices that result in a better rehabilitative environment at the TJJD and ensure a pathway for children in their care to grow, heal and reach their full potential.”
“The conditions in the facilities are unacceptable,” said U.S. Attorney Alamdar S. Hamdani for the Southern District of Texas. “Our investigation found that children in these facilities face sexual abuse by staff and other children. Tragically, this is not the first investigation into allegations of sexual abuse at TJJD facilities. Since the early 2000s, other investigations by Texas state agencies and the Texas Rangers substantiated sexual abuse allegations of the children at TJJD facilities, yet this horrifying problem persists. Working with Texas’s other U.S. Attorneys’ Offices, the Civil Rights Division and the State of Texas, my office hopes to provide protections to the vulnerable and help right wrongs that have existed for far too long.”
“States that receive federal funds to help educate children with disabilities are required to use those funds appropriately for the benefit of these children,” said U.S. Attorney Damien M. Diggs for the Eastern District of Texas. “Systematically failing to evaluate children suspected of having disabilities inevitably deprives these children of the special education these funds were meant to provide. Texas received funds under the Individuals with Disabilities Education Act, but failed to meet their obligation to ensure that children with disabilities would receive adequate education according to their special needs, among other things. Without appropriate services, children with disabilities in Texas juvenile corrections facilities cannot access the general education curriculum, preventing meaningful rehabilitation and progress. We look forward to working with Texas to rectify the issues we identified in our investigation so that these children, through meeting their educational needs, may have a better chance to succeed when they return to our communities.”
The Justice Department launched its investigation of TJJD’s juvenile justice facilities in October 2021, under the Civil Rights of Institutionalized Persons Act and the Violent Crime Control and Law Enforcement Act of 1994, which authorize the department to address a pattern or practice of deprivation of constitutional and federal rights of children confined to state or local government-run correctional facilities.
The Civil Rights Division’s Special Litigation Section and the U.S. Attorneys’ Offices in Texas investigated the case.
For more information about the Civil Rights Division and the Special Litigation Section please visit www.justice.gov/crt/special-litigation-section. You can also report civil rights violations to the section by completing the complaint form available at civilrights.justice.gov.
To provide information related to the department’s investigation of TJJD’s facilities please call 1-866-432-0438 or email at [email protected].
Spanish translation forthcoming. (La traducción al español estará disponible próximamente.)
- TJJD routinely violates the constitutional rights of children in all five facilities by:
Joliet man admits stealing guns in Billings pawnshop burglaryRead the Press Release
BILLINGS — A Joliet man on Wednesday admitted to stealing firearms from a Billings pawnshop during a burglary, U.S. Attorney Jesse Laslovich said today.
The defendant, Lucious Machiavelli, aka Robert Allen Boyden, 47, pleaded guilty to theft from a federal firearms licensee. Machiavelli faces a maximum of 10 years in prison, a $250,000 fine and three years of supervised release.
U.S. District Judge Susan P. Watters presided. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Sentencing was set for Dec. 4. Machiavelli was detained pending further proceedings.
The government alleged in court documents that on Sept. 11, 2023, Pawnbrokers West, a federal firearms licensee, in Billings, was burglarized shortly before 3 a.m. Ten firearms were stolen during the break in. Law enforcement learned that Machiavelli was involved in the burglary. Five of the stolen firearms were recovered from the residence of a co-defendant, who told law enforcement that Machiavelli had brought the guns to the residence. Another co-defendant told law enforcement that he and Machiavelli went into the pawn shop and stole the firearms.
The U.S. Attorney’s Office is prosecuting the case. The Bureau of Alcohol, Tobacco, Firearms and Explosives and Billings Police Department conducted the investigation.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. For more information about Project Safe Neighborhoods, please visit Justice.gov/PSN.
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Jacksonville Man Pleads Guilty to Federal Drug Trafficking ChargeRead the Press Release
Jacksonville, Florida – United States Attorney Roger B. Handberg announces that Michael Wayne Burroughs (46, Jacksonville) has pleaded guilty to conspiracy to distribute 50 grams or more of pure or actual methamphetamine. Burroughs faces a minimum mandatory penalty of 10 years, up to life, in federal prison. A sentencing date has not yet been set.
According to court documents, in 2022, federal agents began investigating Burroughs’s drug trafficking activity. Agents purchased pure methamphetamine from Burroughs at his residence in Jacksonville on three separate occasions using a confidential source. In 2023, agents identified one of Burroughs’s methamphetamine suppliers as Devan Hall. Between April and June 2023, agents observed Hall and Burroughs conduct multiple drug transactions in Jacksonville. In July 2023, agents arrested Burroughs and Hall on criminal complaints.
Hall pleaded guilty to conspiracy to distribute 50 grams or more of pure or actual methamphetamine. On January 8, 2024, he was sentenced to 10 years in federal prison.
This case was investigated by the Federal Bureau of Investigation, Homeland Security Investigations, the U.S. Postal Inspection Service, and the Jacksonville Sheriff’s Office as part of an Organized Crime Drug Enforcement Task Force (OCDETF), which identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. This case is being prosecuted by Assistant United States Attorney Aakash Singh.
Inmate at the Federal Correctional Institution at Schuylkill Sentenced to 35 Months in Prison for Assault with A Dangerous WeaponRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Jared Sebaugh, age 36, an inmate at the Federal Correctional Institution at Schuylkill, in Minersville, Pennsylvania, was sentenced on August 1, 2024, by U.S. District Court Judge Julia K. Munley, to serve 35 months in prison for assaulting another inmate with a dangerous weapon.
According to United States Attorney Gerard M. Karam, Sebaugh, formerly of Olmstead Falls, Ohio, pleaded guilty and admitted to assaulting another inmate with a dangerous weapon with intent to do bodily harm. The charge stems from an incident in February 2023 in which Sebaugh assaulted another inmate with a prison-made weapon consisting of a combination lock attached to a cloth strap.
The investigation was conducted by the Federal Bureau of Investigation and the Bureau of Prisons Special Investigative Service. Assistant United States Attorney Robert J. O’Hara prosecuted the case.
At the time of the incident at FCI Schuylkill, Sebaugh was serving a sentence from the Northern District of Ohio for being a convicted felon in possession of a firearm. That sentence has since expired.
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Indictment Returned under Title 16 on More than 80 Charges for Spring 2023 Crime SpreeRead the Press Release
WASHINGTON – Hanif Brown, 18, of Washington, D.C., was arraigned today on an indictment charging him with 81 charges for his role in a criminal conspiracy to commit armed carjackings, armed robberies, identity theft, credit card fraud, and vehicle theft during the Spring of 2023, U.S. Attorney Matthew M. Graves and Chief Pamela Smith, of the Metropolitan Police Department (MPD) announced.
A grand jury in the Superior Court of the District of Columbia returned an indictment yesterday charging Hanif Brown with conspiracy, two counts of armed carjacking, carjacking of a senior citizen, thirteen counts of armed robbery, sixteen counts of assault with a dangerous weapon, first-degree and second-degree identity theft of senior citizens, credit card fraud of a senior citizen, three counts of first-degree theft, three counts of unauthorized use of a vehicle, eight counts of unauthorized use of a vehicle during a crime of violence, and 31 firearm related charges.
Brown was arraigned on August 1, 2024, at a hearing before the Honorable Michael O’Keefe. If convicted, Brown faces mandatory minimum sentences of fifteen years for each armed carjacking, seven years for unarmed carjacking, and five years for each firearm-related offense.
According to the government’s evidence, in 2021, Brown and other suspects created a Cash App account using a senior citizen’s stolen personal identifying information. Two years later, beginning in March 2023, Brown and his associates commenced a months-long crime spree in which he and his associates stole vehicles and used those vehicles to commit carjackings and gunpoint robberies. During those robberies, Brown and his associates stole currency and jewelry and forced their victims to surrender the passcodes for their phones, which Brown and his associates then accessed to initiate unauthorized monetary transfers via Cash App.
Over a two-week period during the months of March 2023 and April 2023, Brown and his associates committed three armed carjackings – one of which was a brazen attack in the Third Street Tunnel and another in which a senior citizen was the victim. Over this same time period, Brown and his associates committed five armed robberies in D.C. and one in Hyattsville, Maryland, with a total of more than 10 victims. Brown and his associates then used phones stolen from the robbery victims to illegally transfer funds from their Cash App accounts to Brown.
In May 2023, Brown and his associates continued their violent crime spree and committed several more armed robberies – one in which the victim was robbed at gunpoint on H Street NE of the victim’s phone, which was subsequently used to illegally transfer funds from the victim to Brown’s Cash App account and another in which two victims were robbed of their high-end jewelry at gunpoint. Brown then shared social media posts depicting himself wearing the proceeds from the robbery.
Brown was ultimately arrested on May 15, 2023. He has been in custody since his arrest.
This case is being investigated by the Metropolitan Police Department (MPD).
This case is being prosecuted by the U.S. Attorney’s Office for the District of Columbia.
An indictment is merely a formal charge that a defendant has committed a violation of criminal laws and every defendant is presumed innocent until, and unless, proven guilty.
Illinois Man Sentenced to 35 Years in Federal Prison for Production of Child PornographyRead the Press Release
Montgomery, ALABAMA – On July 31, 2024, a federal judge in Montgomery, Alabama ordered 31-year-old Brenden Neil Noel, a resident of Danforth, Illinois, to serve 35 years in prison for producing child pornography, announced United States Attorney Jonathan S. Ross. The judge also ordered that Noel remain on supervised release for life following his prison term. Restitution to Noel’s victims will be determined at a later date. There is no parole in the federal system.
According to Noel’s plea agreement and other court records, in November of 2022, law enforcement received evidence of explicit communications on various messaging apps between an unknown individual and two females under the age of 14 in the Middle District of Alabama. Investigators discovered that the messages originated from Noel’s residence in Illinois and law enforcement contacted him shortly thereafter. Agents then examined various electronic devices belonging to Noel. They found, stored on the devices, numerous images and videos containing suspected child pornography. In his plea agreement, Noel specifically admitted that he had coerced victims he knew to be under the age of 14 to send him nude images. Noel also admitted that, while he participated in video calls with minor victims, he persuaded the victims to engage in sexually explicit conduct. Noel recorded the conduct using a second phone. Noel pleaded guilty to production of child pornography in federal court on April 2, 2024.
During the investigation, agents learned that Noel had previously been convicted in Illinois of aggravated criminal sexual assault, requiring him to register as a sex offender.
“Crimes targeting children are most disturbing,” said United States Attorney Ross. “Offenses like Noel’s have lifelong consequences for the victims. Through the hard work of law enforcement agencies, Noel will not be able to cause further harm to young people.”
“Protecting our children is of paramount importance, and the FBI along with our law enforcement partners will work tirelessly to prevent their victimization and to hold accountable those who abuse them,” said FBI Special Agent in Charge Paul Brown.
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. 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 Justice.gov/PSC.
The FBI Mobile Field Office and the Chilton County Sheriff’s Office investigated this case, with assistance from the United States Marshals Service, the National Center for Missing and Exploited Children, and the Alabama Attorney General’s Office. Assistant United States Attorney Tara S. Ratz prosecuted the case.
Illinois Financial Advisor Sentenced to 2 Years for Investment Fraud and Filing a False Tax ReturnRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that David Swartz, 59, Highland Park, Illinois, was sentenced today by U.S. District Judge William M. Conley to 2 years in federal prison for wire fraud and assisting in the preparation of a false tax return. Swartz pleaded guilty to these charges on April 11, 2024. As part of his sentence, Swartz was ordered to pay $181,915 in restitution to Victim-1.
Swartz, who worked as an unregistered investment advisor and fund manager, had a close personal relationship with Victim-1, who was a resident of Madison, Wisconsin. Beginning in January of 2009, Victim-1 made regular and periodic investments into Swartz’s investment fund with the understanding that Swartz was conservatively investing the money. Beginning in 2018, Swartz began misrepresenting the performance of the fund to Victim-1. For example, the fund lost approximately 23% of its value in 2018, but Swartz sent Victim-1 an email on December 31, 2018, stating that the fund had its “best year yet” and returned “NET almost 9% through November and only a 1.5% loss during December.” Despite the heavy losses to the fund, on January 29, 2019, Swartz emailed Victim-1 stating that the fund “had an incredibly great 2018” and was “solidly profitable for the year.”
When the fund lost a significant amount of its value in February 2020 due to a series of risky trades, Swartz again lied to Victim-1 about the fund’s performance and induced Victim-1 to invest an additional $150,000. On March 18, 2020, Swartz emailed Victim-1 a purported copy of a Charles Schwab account statement for the fund. Swartz had altered the statement to show that the total value of the fund on December 31, 2019, was $1,017,191, however, the actual value of the fund was $58.
On March 7, 2020, Swartz provided a false Schedule K-1 for tax year 2019 to Victim-1 that showed that Victim-1’s net short-term capital gains from his investment in the fund exceeded $500,000. In fact, Swartz knew that Victim-1 did not have capital gains from the fund in 2019, because the fund incurred significant losses. Relying on the falsified document, on October 12, 2020, Victim-1 filed a U.S. Individual Income Tax Return Form 1040 for the 2019 tax year that substantially overreported Victim-1’s capital gains on Schedule D, Line 5. This caused Victim-1 to report owing an unjustified amount of federal income tax.
The charges against Swartz were a result of an investigation conducted by IRS Criminal Investigation. The prosecution of the case has been handled by Assistant U.S. Attorney Aaron Wegner.
Hartford Gang Member Sentenced to 36 Years in Federal Prison for 2013 Drug-Related MurderRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that ANTWANE WILLIAMS-BEY, also known as “Buck,” 33, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 432 months of imprisonment, followed by five years of supervised release, for committing the drug-related murder of Valentin Santos Jr., 21, in Hartford on August 12, 2013.
According to the evidence presented during his trial, on August 12, 2013, Williams-Bey, a member of the Orange Street Killas (OSK) street gang, shot and killed Santos, also known as “Macho” and “Ubby,” on Linnmoore Street in Hartford in retaliation for a theft of Williams-Bey’s drug stash/money. Santos was shot approximately 12 times, mostly in the back.
Williams-Bey was found guilty of the offense on November 2, 2022.
Williams-Bey has been detained in federal custody since February 2017 and had been serving an 84-month sentence for distributing heroin and crack cocaine. While awaiting trial in this murder case, Williams-Bey was charged in the District of Rhode Island for participating in a conspiracy to smuggle synthetic marijuana into the Rhode Island detention center where he was held. He pleaded guilty and, in February 2024, was sentenced to 24 months of imprisonment for that offense.
This investigation was conducted by the Federal Bureau of Investigation’s Northern Connecticut Gang Task Force and the Hartford Police Department’s Major Crimes Division. The Task Force includes members of the FBI, Hartford Police Department, East Hartford Police Department, New Britain Police Department, West Hartford Police Department, Connecticut State Police, and Connecticut Department of Correction. The case was prosecuted by Assistant U.S. Attorney Robert S. Ruff and Trial Attorney Brian P. Leaming of the Justice Department’s Violent Crime and Racketeering Section.
Grand jury indicts prior felon on drug and gun chargesRead the Press Release
BUFFALO, N.Y. - U.S. Attorney Trini E. Ross announced today that a federal grand jury has returned a three-count indictment charging Robert L. Robinson with possession with intent to distribute cocaine, possession with intent to distribute cocaine, possession of firearms in furtherance of drug trafficking, and being a felon in possession of firearms. The charges carry a maximum penalty of life in prison.
Assistant U.S. Attorney Louis A. Testani, who is handling the case, stated that according to the indictment and a previously filed complaint, on June 7, 2024, law enforcement executed a search warrant at Robinson’s Buffalo residence. During the search, investigators recovered quantities of suspected cocaine and marijuana, $35,869.00 in cash, two firearms, ammunition, and drug paraphernalia. One of the firearms was reported as a duty weapon stolen from a member of the Miami Dade Police Department on July 18, 2019. After the execution of the search warrant, Robinson was taken into custody.
Robinson was previously convicted of felony crimes in 2003 and 2011 and is legally prohibited from possessing firearms.
The indictment is the result of an investigation by the Federal Bureau of Investigation, Child Exploitation Task Force, under the direction of Special Agent-in-Charge Matthew Miraglia, and the Erie County Sheriff’s Office, under the direction of Sheriff John Garcia.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Gas Station Robber Who Crashed into Apartment Complex SentencedRead the Press Release
A robber who led police on a 100 mph chase before crashing into an apartment complex was sentenced today to over 21 years in federal prison, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Jaden Christofer Tipton, 21, was indicted in October 2023 and pleaded guilty in February 2024 to two counts of Hobbs Act robbery and two counts of brandishing a firearm in furtherance of a crime of violence. He was sentenced Thursday by U.S. District Judge James Wesley Hendrix to a total of 255 months imprisonment.
In plea papers, Mr. Tipton admitted to robbing two Lubbock gas stations the course of just 53 minutes on July 10, 2023.
In both robberies, Mr. Tipton pulled a firearm from his waistband, chambered a round, pointed it at the nearest cashier, and demanded all the money in the register.
Shortly after the second robbery, officers located Mr. Tipton’s blue four-door traveling eastbound. They attempted to conduct a traffic stop, but Mr. Tipton fled, leading officers on a high-speed chase before crashing into an apartment complex, where he was taken into custody.
Inside Mr. Tipton’s vehicle, officers found a black bag of cash and a loaded Taurus 9mm pistol.
At Thursday's sentencing hearing, prosecutors noted that when the defendant crashed into the apartment complex, he rammed into a couple’s bedroom. Both were hospitalized with serious injuries.
Both convenience store clerks submitted written statements to the Court, which were read at sentencing.
Tipton’s crime “uprooted my entire life and sent my mental state spiraling,” wrote clerk B.V.
“I wake up from night terrors, seeing that whole experience replaying in my mind, hearing that bullet going into the chamber,” clerk J.N. wrote.
The Lubbock Police Department and the Bureau of Alcohol, Tobacco, Firearms & Explosives’ Dallas Field Division conducted the investigation. Assistant U.S. Attorney Stephen Rancourt prosecuted the case.
Founder of GPB Capital and CEO of Ascendant Capital Convicted of Fraud ChargesRead the Press Release
A federal jury in Brooklyn today convicted David Gentile, the founder, owner and Chief Executive Officer (CEO) of GPB Capital Holdings, LLC (GPB) and Jeffry Schneider, the owner and CEO of Ascendant Capital LLC (Ascendant Capital), on all counts of an indictment charging them with conspiracy to commit securities fraud, conspiracy to commit wire fraud, and securities fraud; Gentile was also convicted on two counts of wire fraud. The charges related to a years-long scheme to defraud more than 10,000 investors by misrepresenting the source of funds used to make monthly distribution payments and the amount of revenue generated by three of GPB’s investment funds. The verdict followed an eight-week trial before United States District Judge Rachel P. Kovner. When sentenced, Gentile and Schneider each faces up to 20 years in prison.
Breon Peace, United States Attorney for the Eastern District of New York and Christie M. Curtis, Acting Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the verdict.
“The jury found that the defendants lied to investors about the health of their funds and the source of fund distribution payments, all while they were fraudulently making those distribution payments with investor capital to maintain the appearance of successful portfolio companies,” stated United States Attorney Peace. “This Office has a proud history of prosecuting fraudsters who abuse the trust of investors, and we will continue to vigorously protect the integrity of the financial markets.”
Mr. Peace expressed his appreciation to the Securities and Exchange Commission, the New York City Business Integrity Commission and the New York City Police Department for their valuable assistance with the case.
GPB, founded in 2013 by Gentile, was a New York-based investment advisor registered with the SEC. GPB was the general partner of several investment funds that raised and invested capital in a portfolio of private equity investments. GPB worked with Ascendant Capital, a marketing firm founded by Schneider, to market the GPB funds to investors. Gentile and Schneider worked closely together on the operation and marketing of GPB funds, receiving regular updates as to the funds’ performance.
As proven at trial, between August 2015 and December 2018, the defendants engaged in a scheme to defraud investors and prospective investors in several GPB funds through material misrepresentations and omissions. Specifically, Gentile and Schneider, both individually and through employees at Ascendant Capital, represented to investors that the funds would make a monthly distribution payment that would be fully covered from operations, meaning that the companies purchased by the funds would be sufficiently profitable for the payments to be made from the companies’ cash flow, without drawing from capital raised by investors.
In reality, when the funds’ performance lagged, the defendants tried to disguise the shortfall with fraudulent, back-dated documents and paid investor distributions out of investor capital. Ultimately, investor capital was used to pay for a significant portion of the distributions made to investors. Gentile and Schneider were aware that the GPB Funds were underperforming and authorized the fraudulent distribution payments.
This case is being handled by the Office’s Business & Securities Fraud Section. Assistant United States Attorneys Artie McConnell, Jessica K. Weigel, Nicholas M. Axelrod and Kate Mathews are in charge of the prosecution, with the assistance of Paralegal Specialists Madison Bates and Allison Henry.
The Defendants:
DAVID GENTILE
Age: 57
Manhasset, New YorkJEFFRY SCHNEIDER
Age: 55
Austin, TexasE.D.N.Y. Docket No. 21-CR-54 (RPK)
Fort Wayne Man Sentenced to 188 Months in PrisonRead the Press Release
FORT WAYNE –Deshon A. Jenkins, 37 years old, of Fort Wayne, Indiana, was sentenced by United States District Court Chief Judge Holly A. Brady after pleading guilty to distributing a controlled substance and possessing with intent to distribute a controlled substance, announced United States Attorney Clifford D. Johnson.
Jenkins was sentenced to 188 months in prison followed by five years of supervised release.
According to documents in the case, on September 7, 2023, Jenkins distributed over 200 grams of methamphetamine. On September 29, 2023, Jenkins was apprehended and found to be in possession of over 50 grams of methamphetamine which he intended to distribute. At the time of his apprehension, Jenkins led officers on a high-speed chase and threw a large bag of methamphetamine from his vehicle. After Jenkins crashed his vehicle, he was taken into custody and the controlled substance was recovered.
This case was investigated by the Federal Bureau of Investigation’s Fort Wayne Safe Streets Gang Task Force, which includes the FBI, the Fort Wayne Police Department, the Indiana State Police, and the Allen County Sheriff’s Department. The case was prosecuted by Assistant United States Attorney Justin C. Sheridan.
This case was part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Fort Dodge Woman Pleads Guilty to Meth Conspiracy ChargesRead the Press Release
A woman who conspired to distribute methamphetamine pled guilty July 31, 2024, in federal court in Sioux City.
Amanda Johnson, f/k/a Amanda Adams, 35, from Fort Dodge, Iowa, was convicted of conspiracy to distribute methamphetamine and distribution of methamphetamine. In 2020, Johnson was convicted in federal court of same conduct - conspiracy to distribute methamphetamine and possession with intent to distribute and aiding and abetting another in the possession with intent to distribute methamphetamine.
At the plea hearing, Johnson admitted her involvement in a conspiracy that distributed more than 150 grams of methamphetamine in the Fort Dodge area for six months in 2023. On November 15, 2023, Johnson and another distributed about ¼ pound methamphetamine in a controlled drug purchase transaction in Waterloo, Iowa. On December 4, 2023, Johnson made an agreement to distribute ¼ pound of methamphetamine to an undercover agent, distributed 2 grams of methamphetamine, then fled.
Sentencing before United States District Court Judge Leonard T. Strand will be set after a presentence report is prepared. Johnson remains in custody of the United States Marshal pending sentencing. On the conspiracy conviction Johnson faces a mandatory minimum sentence of 15 years’ imprisonment and a possible maximum sentence of life imprisonment, a $20,000,000 fine, and at least ten years of supervised release following any imprisonment. On the distribution conviction Johnson faces a mandatory minimum sentence of 10 years’ imprisonment and a possible maximum sentence of life imprisonment, a $8,000,000 fine, and at least eight years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by the Iowa Division of Narcotics Enforcement, the Iowa DCI Laboratory, Fort Dodge Iowa Police Department, Webster County Sheriff’s Office, and the Waterloo, Iowa, based Tri-County Drug Task Force.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 24-3005.
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Former Primis Bank manager sentenced to federal prison $2.4M embezzlement schemeRead the Press Release
RICHMOND, Va. – A Weems man was sentenced today to four years and three months in prison for designing and executing a scheme over the course of 15 years to defraud his employer, a local financial institution, by issuing fraudulent loans to other individuals and using the loan proceeds for himself.
According to court documents, James Stevens, 47, was employed at Primis Bank (formerly known as Sonabank, Eastern VA Bank, and Southside Bank) from 2000 to June 2023 as a Commercial Lender, Branch Manager, and Assistant Branch Manager. As a Commercial Lender for Primis, Stevens had the authority to issue loans on behalf of the bank, as well as the ability to open and access customer accounts and transfer funds into and out of customer accounts.
Beginning in 2008, and continuing through June 2023, Stevens exploited his position of trust at Primis Bank to issue numerous fraudulent loans—on behalf of his unwitting bank employer—in the names and using the identities of numerous other individuals. Stevens would often create fraudulent documentation to support these loan applications, using the personal information of multiple Primis Bank customers in the process. Stevens would then use proceeds of these fraudulently issued loans to make payments on other previously-issued fraudulent loans, to pay himself, or to pay others. Through this loan scheme, Stevens caused a loss to Primis Bank of more than $2.3 million.
Stevens also exploited his personal relationship with one Primis Bank customer to access the customer’s personal savings and checking accounts and to withdraw funds from the customer’s accounts. Stevens used his access to the customer’s accounts to change the mailing address on the accounts so that the bank customer remained unaware of the thefts, which eventually totaled more than $97,000. Altogether, the frauds and thefts perpetrated by Stevens resulted in a total loss to Primis Bank of $2,477,643.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Stanley M. Meador, Special Agent in Charge of the FBI’s Richmond Field Office, made the announcement after sentencing by Senior U.S. District Judge Robert E. Payne.
Assistant U.S. Attorneys Thomas A. Garnett and Robert Day prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:24-cr-10.
Former Georgia Teacher Admits to Catfishing Students and Posting Child Sexual Assault Material on DiscordRead the Press Release
MACON, Ga. – A former Sandersville, Georgia, high school teacher pleaded guilty to producing and distributing child sexual abuse material (CSAM)—also known as child pornography—in federal court this morning.
Michael Allen Dendy, 33, of Milledgeville, Georgia, pleaded guilty to one count of production of child pornography and one count of distribution of child pornography before U.S. District Judge Marc Treadwell on July 30. Dendy faces a mandatory minimum of 15 years in prison up to a maximum sentence of thirty years in prison for production of child pornography and a mandatory minimum of five years in prison up to a maximum sentence of twenty years in prison for distribution child pornography. In addition, Dendy faces a maximum term of supervised release of life, and he will have to register as a child sex offender upon release from federal prison. Dendy faces a maximum fine of $250,000 and restitution to victims as determined by the Court. A sentencing date has not been scheduled.
“It’s a nightmare for parents to imagine a trusted teacher catfishing students and then posting sexually explicit images of these kids on social media,” said U.S. Attorney Peter D. Leary. “Thanks to good police work, a child predator is off the streets and will be held accountable for the suffering and pain he has caused. Furthermore, this case is an important reminder that online predators are a real threat, and parents must exercise vigilance.”
“Teachers are supposed to be a safety net for our children, not target and exploit them,” said Jennifer Huerta, the Acting Special Agent in Charge of HSI Atlanta that oversees Georgia and Alabama. “This plea represents the great work done by HSI and our partners to identify, investigate and prosecute these predators. HSI remains vigilant in protecting our children and holding those accountable those who exploit them.”
“Michael Allen Dendy’s guilty plea marks a significant step towards justice for the heinous crimes committed,” said Washington County Sheriff Joel Cochran. “We are resolute in our commitment to safeguarding our children and ensuring that those who prey on them are held accountable. I want to extend my heartfelt gratitude to all law enforcement officers, prosecutors and support personnel who worked tirelessly on this case. Your dedication and hard work have made our community safer and brought us closer to justice for the victims.”
According to court documents and statements referenced in court, the Washington County Sheriff’s Office (WCSO) received multiple complaints in Dec. 2022 regarding child pornography being posted on the social media platform Discord and were informed that several local high school students had their images posted to the platform under “WACO Confessions” without their knowledge or approval. A WCSO investigation found “WACO Confessions” was created by an individual—later determined to be Dendy—under the username “TheOneYouLeftBehind.” The IP address most frequently used to access the account was tracked to Dendy’s residence. Dendy was a teacher at Washington County High School in Sandersville, Georgia, from Aug. 2020 until his arrest by WCSO deputies on Jan. 20, 2023.
Dendy admitted to obtaining nude images of individuals, particularly of underage students at Washington County High School. He confirmed that he would communicate with the students using fake Instagram accounts—posing as a young male and a young female on Instagram—and that he never met with any students in person. Dendy also admitted to creating “WACO Confessions.”
A search warrant executed at Dendy’s residence recovered numerous electronic devices containing CSAM and chat conversations between Dendy and several identified victims. Specifically, between Jan. 1, 2023, and Jan. 31, 2023, Defendant persuaded a 16-year-old to engage in sexually explicit conduct, film the conduct and share it with Dendy through social media. In a separate incident, on Dec. 11, 2022, Dendy uploaded a video to “WACO Confessions” depicting a minor, who was between the ages of 14 and 15, engaging in sexually explicit conduct.
Dendy taught at three schools previously: Griffin High School in Griffin, Georgia, from 2018-2020; St. Charles High School in Waldorf, Maryland, from 2017-2018; and Starkville High School in Starkville, Mississippi, from 2014-2016. Parents and guardians of children who may have encountered Dendy and have concerns related to this investigation can contact the Homeland Security Investigations (HSI) tip line at 1-866-347-2423.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The case is being investigated by WCSO and Homeland Security Investigations (HSI) with significant assistance from the Leesburg Police Department (Virginia), the Charles County Sheriff’s Office (Maryland) and the Middle Judicial Circuit of Georgia District Attorney’s Office.
Assistant U.S. Attorney Daniel Peach is prosecuting the case for the Government.
Former Ericson State Bank President Sentenced for Bank FraudRead the Press Release
United States Attorney Susan Lehr announced that Jackie Poulsen, aka Jack Poulsen, 71, of Ericson, Nebraska, was sentenced on August 1, 2024, in federal court in Lincoln, Nebraska for bank fraud. United States District Judge Susan M. Bazis sentenced Poulsen to 18 months’ imprisonment with 5 years of supervised release to follow. There is no parole in the federal system. Poulsen was additionally ordered to pay a $815,000 in restitution.
Poulsen was the President of Ericson State Bank (ESB) from June of 2010 until September of 2019. He was additionally on the Board of Directors for the bank. In his role as President of ESB, he was responsible for overseeing all ESB’s affairs and managing ESB’s day-to-day operations. ESB, like any other bank in Nebraska, had to undergo regular examinations conducted by the Nebraska Department of Banking and Finance (NDBF). One such examination occurred in October of 2017, which ESB passed. The next examination occurred in April of 2019. The 2019 examination revealed that ESB’s condition had significantly deteriorated since the 2017 examination. NDBF indicated in a report that this deterioration was “due in large part to [ESB] being operated without regard for laws, regulations, prudent banking policies, and practices.”
During the investigation that followed the 2019 examination, the NDBF discovered that there were significant violations of the Nebraska statutory lending limits and that Poulsen had personally made, or was directly responsible for, many of the loans, lines of credit, and coverups of overdrafts that were in violation of the law, and which were adversely affecting the safety and soundness of ESB. A substantial number of the violations involved accounts and loans held by a relative of Poulsen’s and the relative’s business-related entities. NDBF examiners determined that a specific loan to Poulsen’s relative had been continuously more than the statutory lending limit since November 2017, or approximately one month after the 2017 Examination. NDBF examiners further determined that since May 29, 2019, Poulsen made multiple advances to the relative and charged off a portion of the borrowings without completing the appropriate paperwork or seeking approval from the Board or loan committee.
NDBF examiners discovered that some lending limit violations had substantially increased in size through increases in operating lines of credit, additional advances, and/or payment of overdrafts since the May 29, 2019, meeting. NDBF examiners determined that as of August 26, 2019, maturity dates on loans had been extended multiple times without formal documentation; borrowers’ financial information was inadequate; collateral for loans was either non-existent or poorly documented and managed, and deposit accounts, including those held by his relative, were frequently and substantially overdrawn. Poulsen’s scheme to defraud continued until September of 2019, when Poulsen was removed from his positions of authority with ESB based on NDBF’s findings. Poulsen’s license was also revoked.
As of December 31, 2019, ESB had total assets of approximately $110,879,000. However, on February 14, 2020, NDBF closed ESB and appointed the Federal Deposit Insurance Corporation (“FDIC”), as liquidator and receiver of ESB. Mark Quandahl, NDBF Director issued a statement regarding the failure of ESB which stated, “The failure of Ericson State Bank resulted primarily from large out-of-territory commercial loan losses and poor management practices which led to a deterioration of the bank’s capital. When the capital was not replenished the Department was left with no option but to place the insolvent institution into receivership.”
The FDIC entered into a purchase and assumption agreement with Farmers and Merchants Bank, Milford, NE, in which the purchasing bank assumed all customer deposits of ESB. At the time of ESB’s failure, ESB was a state chartered financial institution regulated and examined by the NDBF and it was determined that a loss of $815,000 was attributable to the insider-related loans which were subject to Poulsen’s scheme.
The investigation and subsequent prosecution of this matter was the result of the work of multiple agencies in conjunction with the United States Attorney’s Office for the District od Nebraska. Following today’s sentencing the following comments were made:
“The people of Nebraska expect their monies to be safe when they choose to place their trust in local banks.” Said United States Attorney Susan T. Lehr. “No bank officials should be permitted to abuse that trust for the sake of their and their family’s personal gain. The United States Attorney’s Office thanks all law enforcement agencies who worked diligently on the thorough investigation of this case.”
FBI Omaha Special Agent in Charge Eugene Kowel said, “Not only did Jack Poulsen’s financial scheme of insider-related loans lead to his sentence to federal prison, it also led to the collapse of a bank that had served rural Nebraska for 60 years. The FBI is committed to working with our federal, state, and local partners to hold accountable those who exploit their positions of trust to defraud financial institutions.”
“Jack Poulsen exploited his position as a bank executive to commit fraud that ultimately led to Ericson State Bank’s failure,” said Jon Ellwanger, Special Agent in Charge, Western Region, Office of Inspector General for the Board of Governors of the Federal Reserve System and Consumer Financial Protection Bureau. “His sentencing sends a clear message that bank executives who commit fraud will be brought to justice for their actions. We are proud to have worked with our federal law enforcement partners and the U.S. Attorney’s Office to hold Mr. Poulsen accountable for his crimes.”
“As both bank president and board member, the defendant had a duty to conduct business honestly but instead abused that trust and committed insider fraud, contributing to the failure of a bank that had been part of the Federal Home Loan Bank System for more than 60 years,” said Korey Brinkman, Special-Agent-in-Charge of FHFA-OIG’s Midwest Region. “We will continue to vigorously investigate criminal offenses involving frauds that impact the integrity, safety, and soundness of Federal Home Loan Banks and member banks. We are proud to partner with our colleagues and the United States Attorney’s Office with this investigation.”
“Today's sentencing holds the defendant accountable for defrauding Ericson State Bank by misusing his position as president of the bank to conceal the true financial condition of these loans from the institution and its Board of Directors,” said Special Agent in Charge Justin R. Bundy of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC OIG), Kansas City Region. “The FDIC OIG will continue to work with our law enforcement partners to bring to justice bank insiders who violate their positions of trust and commit fraudulent acts that threaten to undermine the integrity of our Nation’s financial institutions.”
This case was investigated by the Federal Housing Finance Agency – Office of Inspector General, Federal Deposit Insurance Corporation – Office of Inspector General, Federal Reserve Board – Office of Inspector General, and the Federal Bureau of Investigations.
Former Division Chief of Logistics for Kootenai County EMSS Sentenced in Drug Diversion SchemeRead the Press Release
COEUR D’ALENE – Scott Higgins, 57, of Coeur d’Alene, was sentenced yesterday on charges for theft from a program receiving federal funds and acquiring controlled substances by fraud, U.S. Attorney Josh Hurwit announced today. Both charges relate to a drug diversion scheme that Higgins carried out over multiple years while employed as the Division Chief of Logistics for Kootenai County Emergency Medical Services System (KCEMSS).
According to court records, as the Division Chief of Logistics, Higgins was responsible for purchasing and managing controlled substances on behalf of KCEMSS. Between at least July 2020 and February 2023, Higgins engaged in a fraudulent scheme whereby he ordered on behalf of KCEMSS substantially more opioids than were required and kept the excess for personal use. The total value of the opioids that Higgins wrongfully acquired from this scheme was $13,428.24.
Chief U.S. District Judge David C. Nye sentenced Higgins. Based in part on Higgins’ lack of criminal history, cooperation with the investigation, acceptance of responsibility, and proactive engagement in substance abuse treatment, Higgins was afforded a probationary sentence of 5 years. Should Higgins violate probation, he will be subject to re-sentencing and faces up to 14 years of imprisonment if sentenced consecutively on both counts. Judge Nye also ordered Higgins to pay restitution to KCEMSS.
“This case is a reminder of how the opioid crisis impacts our communities in many different ways,” said U.S. Attorney Hurwit. “It demonstrates not only the need for strong enforcement but also the need for all of us to come together to raise awareness about the dangers of opioids as well as the hope that can be found through substance abuse treatment.”
“People like Mr. Higgins who work with controlled substances are placed in positions of special trust to safeguard the public’s health and well-being and DEA takes any violation of that trust extremely seriously,” said David F. Reames, Special Agent in Charge, DEA Seattle Field Division. “We are gratified by the accountability the Court imposed on Mr. Higgins for breaking his obligations and we thank the Kootenai County Sheriff’s Office and the U.S. Attorney’s Office for the District of Idaho for their partnership in this effort.”
U.S. Attorney Hurwit commended the cooperative work of the Kootenai County Sheriff’s Office and the Drug Enforcement Administration, which led to the charges. He also thanked the Kootenai County Prosecutor’s Office for their assistance with the investigation. Assistant U.S. Attorney Adam Johnson prosecuted this case.
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