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Monday 17 June 2024
Fresno Man Sentenced to over 15 Years in Prison for Multimillion-Dollar Caregiver Fraud Against Vulnerable Malibu PhysicianRead the Press Release
LOS ANGELES – A Fresno man was sentenced today to 188 months in federal prison for defrauding a vulnerable physician out of more than $2.7 million before his death and then attempting to defraud his estate out of an additional amount exceeding $20 million.
Anthony David Flores, 47, a.k.a. “Anton David,” was sentenced by United States District Judge Percy Anderson, who also ordered Flores to pay $1 million in restitution.
“This defendant heartlessly lined his own pockets while his victim mentally and physically declined, and ultimately died,” said United States Attorney Martin Estrada. “Financial fraudsters can prey on anyone, even the most financially successful among us. We hope that our efforts to convict and now sentence this defendant bring some solace to the victim’s family.”
“Mr. Flores and his co-defendant lived large on the victim's massive wealth while they relentlessly robbed and exploited his vulnerabilities until he succumbed to an early death,” said Krysti Hawkins, the Assistant Director in Charge of the FBI's Los Angeles Field Office. “The defendant deprived the victim's family access to their loved one and then dragged them through years of litigation. This case is a reminder that grifters who prey on vulnerable and unsuspecting victims cannot be tolerated by society or the law.”
Flores pleaded guilty in October 2023 to one count of conspiracy to commit mail fraud, two counts of wire fraud, two counts of mail fraud, one count of conspiracy to engage in money laundering, two counts of money laundering, and one count of engaging in monetary transactions in property derived from specified unlawful activity.
Flores’ co-defendant and former girlfriend, Anna Rene Moore, 40, who resided in Monterrey, Mexico at the time of her January 2023 arrest at a Houston airport, pleaded guilty in August 2023 to seven felonies in this case: one count of conspiracy to commit mail fraud, two counts of mail fraud, one count of conspiracy to engage in money laundering, two counts of money laundering, and one count of engaging in monetary transaction in property derived from specified unlawful activity. Her sentencing hearing is scheduled for October 28.
Flores and Moore have been in federal custody since January 2023.
“Mr. Flores’ exploitation of a mentally ill person to steal his wealth is despicable, and he will now reap the consequences of his actions,” said Special Agent in Charge Tyler Hatcher, IRS Criminal Investigation, Los Angeles Field Office. “Protecting vulnerable people from scammers will always be one of CI’s top priorities, and we will continue to work with our law enforcement partners to investigate these horrible crimes.”
Beginning in June 2017, Flores used false promises and representations to befriend the victim — a physician and successful investor worth more than $60 million, but who suffered from a mental illness and lost the ability to care for himself after multiple hospitalizations. Within days of meeting the victim, Flores and Moore moved into the victim’s beachfront Malibu home – rent free – and slowly took control of his life by pretending to be his new “best friends” and caregivers.
In September 2017, after the victim suffered a severe mental breakdown resulting in his arrest and detention in a Los Angeles County jail, Flores fraudulently induced the victim to sign powers of attorney granting Flores control over the victim’s finances.
Flores represented that he would only use these powers to access the victim’s finances to post bail for release, and that the victim could immediately rescind them once the victim was free from jail. But after the victim was released from custody, the powers of attorney were never rescinded. Within days, Flores used these powers to open bank accounts in the victim’s name with Flores listed as the power of attorney, giving himself and Moore access to the victim’s wealth.
From September 2017 to May 2018, Flores and Moore lived with the victim, diverted the victim’s funds to their own bank accounts, isolated the victim from his family and longtime friends, and provided the victim with drugs, including marijuana and LSD.
Ultimately, in May 2018, the victim died in his Malibu home at the age of 57 years old. Following the victim’s death, Flores and Moore moved back into the victim’s Malibu beachfront home and withdrew large sums of money from his accounts. They also concealed information about the victim’s finances from his mother and sister, both of whom resided in Florida. This prompted the victim’s family to file a lawsuit, which resulted in the fraud being uncovered.
In the ensuing lawsuit in Los Angeles Superior Court, Flores and Moore violated multiple court orders ordering them to return the funds stolen from the victim. They attempted to launder the fraudulent proceeds by funneling the money through multiple different accounts to thwart the victim’s estate and court-appointed receiver from recouping the money.
After extensive litigation with the victim’s estate, the lawsuit was settled with Flores and Moore withdrawing their false creditor’s claims and agreeing to repay the victim’s estate $1 million, which they have so far failed to do.
The FBI and IRS Criminal Investigation investigated this matter.
Assistant United States Attorney Andrew M. Roach of the Cyber and Intellectual Property Crimes Section is prosecuting this case. Assistant United States Attorney James E. Dochterman of the Asset Forfeiture and Recovery Section is handling asset forfeiture matters in this matter.
Fresno Man Sentenced for Attempted Coercion of a Minor and Actual Coercion of a Different MinorRead the Press Release
FRESNO, Calif. — Christopher Contreras, 30, of Fresno was sentenced today by U.S. District Judge Jennifer L. Thurston to 15 years and nine months in prison for attempted coercion of a minor and enticement of a minor, U.S. Attorney Phillip A. Talbert announced.
The sentence includes 20 years of supervised release during which time Contreras’s access to minors, computers, and the internet will be restricted. Contreras was also ordered to register as a sex offender.
According to court documents, Contreras used the messaging applications Skout and Snapchat as well as text messages, to engage in sexually explicit communications for approximately one week with a person he believed to be a 13-year-old female. He then traveled to a location in Fresno on July 31, 2020, to meet the purported minor for sexual activity. He was actually communicating with undercover law enforcement investigators. They arrested Contreras and booked him into the Fresno County Jail where he was released on bail.
On Oct. 13, 2020, law enforcement officers responded to a call about a missing juvenile. An investigation confirmed that Contreras picked the juvenile up at a location in Fresno after making arrangements through messages on the Meet Me application. Contreras was arrested for numerous felony violations of California law and booked again at the Fresno County Jail. He was later charged federally in this case and has been in federal custody since June 10, 2021.
This case was the product of an investigation by the Central California Internet Crimes Against Children Task Force, specifically Homeland Security Investigations with assistance from the Fresno County Sheriff’s Office and the Fresno Police Department. Assistant U.S. Attorney David L. Gappa prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who 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.
Fredericksburg man pleads guilty to defrauding COVID-19 relief programRead the Press Release
ALEXANDRIA, Va. – A Fredericksburg man pled guilty today to one count of conspiracy to commit wire fraud for his role in defrauding a federal COVID-19 relief program.
According to court documents, in September 2017, Sherman Green Jr., 34, incorporated the business entity Green Information Solutions LLC (“GIS”) and later opened business banking accounts for GIS at Navy Federal Credit Union (NFCU). In May 2020, a co-conspirator told Green about the Paycheck Protection Program (PPP), a COVID-19 relief program intended to provide loans backed by the Small Business Administration to certain businesses, nonprofit organizations, and other entities to help them retain their employees or stay afloat during the pandemic. Green and his co-conspirator prepared and submitted a PPP loan application to Atlantic Union Bank on behalf of GIS with the assistance of a senior bank officer at Atlantic Union Bank.
In the loan application, Green represented that he was the President/CEO of the company, and falsely claimed that GIS employed seven employees with an average monthly payroll of $78,215.41. Based on these false representations, Atlantic Union Bank awarded GIS a first-draw PPP loan in the amount of $195,500, which was deposited into an Atlantic Union Bank account in the name of GIS on May 11, 2020. Green then purchased a series of cashier’s checks drawn on the money from the fraudulently obtained PPP loan and deposited them into GIS’s NFCU business checking account. Although the memo lines on two of the cashier’s checks referred to “payroll” or other business expenses, GIS did not have any employees or any legitimate business expenses. Between May 2020 and March 2021, Green transferred $81,131.60 from GIS’s NFCU business checking account to his personal bank accounts.
In March 2021, Green and his co-conspirator collaborated again to electronically submit a second-draw PPP loan application to Atlantic Union Bank on behalf of GIS. In this application, Green fraudulently claimed that GIS had five employees with an average monthly payroll of approximately $57,486, and had gross receipts of approximately $1,000,500 in 2019 and $700,000 in 2020. Based on these misrepresentations, Atlantic Union Bank awarded GIS a second-draw PPP loan in the amount of $143,715. Green set up payroll and expense accounts for GIS at Atlantic Union Bank and transferred the second-draw funds into them. Green then used those funds for other purposes, such as payment to Ford Motor Credit, and transferred funds into his personal accounts.
To conceal his misuse of the PPP loans, Green set up a Quickbooks account in which transfers falsely appeared as “payroll” in bank statements. From June 15 to July 15 in 2021, Green made seven such transactions knowing they involved criminally derived property and were not being used for payroll.
Green is scheduled to be sentenced on Sept. 3 and faces a maximum penalty of five years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Stephen Ravas, Acting Inspector General for AmeriCorp; David J. Scott, Special Agent in Charge of the FBI Washington Field Office's Criminal and Cyber Division; John Perez, Special Agent in Charge, Headquarters Operations, Office of Inspector General for the Board of Governors of the Federal Reserve System and Consumer Financial Protection Bureau; Michael J. Missal, Inspector General, U.S. Department of Veterans Affairs; and Amaleka McCall-Brathwaite, Eastern Region Special Agent in Charge for the Small Business Administration, Office of Inspector General (SBA-OIG), made the announcement after U.S. District Judge Leonie M. Brinkema accepted the plea.
Assistant U.S. Attorneys Katherine E. Rumbaugh and Heidi B. Gesch are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:24-cr-122.
Fourth Defendant Pleads Guilty in Bank Fraud Conspiracy Targeting Capital Region Credit UnionRead the Press Release
ALBANY, NEW YORK – Allahson Allah, formerly known as Gwyn Cancer, age 53, of Albany, pled guilty today to conspiring to commit bank fraud and aggravated identity theft. United States Attorney Carla B. Freedman and Matthew Scarpino, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI), made the announcement.
In a plea before United States District Judge Anne M. Nardacci, Allah admitted that between February and October 2022, he organized a conspiracy to defraud SEFCU by, among other things, applying for loans using stolen identities of real people, and withdrawing the money in cash. Allah admitted that lower-level members of the conspiracy applied for loans in other people’s names using fake New York driver’s licenses with their photographs but bearing the names and dates of birth of other people, and the proceeds were given to Allah. Allah further admitted that the conspiracy netted $113,800 in fraudulent cash withdrawals.
Allah was previously charged by an indictment, along with Evan Cutler, of Queensbury, New York, Davon Parson, of Albany, and Dnauticah Taylor-Sterman, of Albany. According to the indictment and statements made by prosecutors in court, the conspirators obtained customer account information from Caeshara Cannon, of Albany, a former Member Service Manager at SEFCU, and used that information to create counterfeit checks, which were presented for negotiation at SEFCU branches in the Northern District of New York. The conspirators also obtained personal identifying information of others, which they used to fraudulently obtain loans from SEFCU and then withdraw the proceeds in cash.
Allah will be sentenced on October 21, 2024. The charges to which Allah pled guilty carry a minimum term of 2 years in prison and a maximum term of 32 years, a fine of up to $1.25 million, and a supervised release term of up to 5 years. He has also agreed to pay restitution in the amount of $113,800, and to entry of a forfeiture money judgment in the same amount.
Allah is the fourth defendant in the conspiracy to plead guilty, following previous pleas by Cannon, Parson, and Taylor-Sterman. Cutler is charged in the indictment with one count of conspiracy to commit bank fraud and four counts of aggravated identity theft. Those charges remain pending. The charges in the indictment against Cutler are merely accusations. Cutler is presumed innocent unless and until proven guilty.
HSI is investigating the case, with assistance from the Bethlehem Police Department. Assistant United States Attorney Benjamin S. Clark is prosecuting this case.
Fort Myers Felon Sentenced for Unlawfully Possessing A FirearmRead the Press Release
Fort Myers, Florida – U.S. District Judge Sheri Polster Chappell today sentenced Willie Hunter, Jr. (22, Fort Myers) to three years in federal prison for possession a firearm as a convicted felon. The court also ordered Hunter to forfeit the firearm used in the offense. Hunter entered a guilty plea on February 28, 2024.
According to court documents, on November 30, 2023, officers from the Fort Myers Police Department were on patrol in the area of Palm Avenue and Douglas Street. An officer observed a vehicle with illegal dark window tint in violation of Florida law. An officer initiated a traffic stop on the vehicle with his lights and sirens, but the vehicle accelerated into the parking lot of a convenience store. After reaching the parking lot, the front passenger, later identified as Hunter, got out of the vehicle, and proceeded into the convenience store. The vehicle then fled, as Hunter walked into the store.
Officers located Hunter in the convenience store while additional officers pursued the vehicle. The vehicle was later found abandoned and officers located two firearms inside the vehicle. Fingerprint analysis linked Hunter to possessing one of those firearms. At the time, Hunter had multiple prior felony convictions, including possession of firearm by a delinquent and aggravated assault with deadly weapon. As a convicted felon he is prohibited from possessing firearms or ammunition under federal law.
This case was investigated by the Fort Myers Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorney Mark Morgan.
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 out 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 first place, setting focused and strategic enforcement priorities, and measuring the results.
Former Portsmouth Man Pleads Guilty to Unlawful Possession of a FirearmRead the Press Release
CONCORD – A Portsmouth man pleaded guilty today in federal court to being a felon in possession of a firearm, U.S. Attorney Jane E. Young announces.
Joshua Linane, 42, pleaded guilty to one count of possession of a firearm by a prohibited person. U.S. District Court Chief Judge Landya McCafferty scheduled sentencing for October 10, 2024.
On October 14, 2022, Linane sold a Ruger Speed-Six .357 Magnum revolver to a confidential source. At the time, Linane was a convicted felon.
The charging statute provides a sentence of no greater than 15 years in prison, 3 years of supervised release, and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
The Federal Bureau of Investigation led the investigation. The Bureau of Alcohol, Tobacco, Firearm and Explosives provided substantial assistance. Assistant U.S. Attorney Geoffrey Ward is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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Former Maryland Police Officer Found Guilty of Federal Civil Rights ViolationRead the Press Release
A federal jury in the District of Columbia today convicted former Officer Philip Dupree, 38, of the Fairmount Heights Police Department in Maryland, for using excessive force.
“Police brutality and violent misconduct against defenseless people are disgraceful acts that have no place in our society today,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “When law enforcement officers abuse their power, it erodes trust with the communities they are sworn to protect and serve. The victim was handcuffed and already restrained in the back of the defendant’s squad car at the time of the assault. The Justice Department is committed to holding accountable law enforcement officers who violate the civil and constitutional rights of those in their custody.”
“We depend on law enforcement officers to protect our communities from crimes and to protect our civil rights while doing so,” said U.S. Attorney Matthew M. Graves for the District of Columbia. “An officer who abuses his authority breaks the community’s trust and unfairly tarnishes the reputation of the vast majority of officers who do their jobs the right way. The jury found that the defendant broke that trust when he unjustly and unreasonably used force and violence against a fellow citizen.”
“Law enforcement officers swear to protect the people they serve, including those in their custody,” said Assistant Director in Charge David Sundberg of the FBI Washington Field Office. “Dupree defiled that responsibility and violated a man’s civil rights. As this case demonstrates, the FBI will not hesitate to investigate officers of the law who engage in misconduct, including those who use excessive force.”
During a weeklong jury trial, the evidence showed that, during the early morning hours of Aug. 4, 2019, Dupree was on duty as a Fairmont Heights Police Officer when he conducted a traffic stop in the District of Columbia. Dupree detained a man identified as T.S. and then deployed pepper spray as T.S. was handcuffed and seated in the back of Dupree’s police car. The government argued, and the jury found, that Dupree’s use of force was a violation of T.S.’ right to be free from excessive force by a law enforcement officer.
A sentencing hearing will be set at a later date. Dupree faces a maximum penalty of 10 years in prison for his alleged use of unreasonable force.
The FBI Washington Field Office is investigating the case.
Trial Attorney Sanjay Patel of the Justice Department’s Civil Rights Division and Assistant U.S. Attorneys Kathryn Rakoczy and Christopher Howland for the District of Columbia are prosecuting the case.
Former Maryland Police Officer Found Guilty of Excessive ForceRead the Press Release
WASHINGTON – Philip Dupree, 40, a former officer with the Fairmount Heights, MD Police Department, was found guilty today in U.S. District Court of violating a man’s civil rights.
The verdict was announced by U.S. Attorney Matthew M. Graves of the District of Columbia, Assistant U.S. Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, and FBI Assistant Director in Charge David Sundberg of the Washington Field Office.
A federal jury found Dupree guilty of one count of deprivation of rights under color of law. U.S. District Court Judge Colleen Kollar-Kotelly will schedule sentencing at a later date. Dupree faces a maximum sentence of 10 years in prison for his use of unreasonable force. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
“We depend on law enforcement officers to protect our communities from crimes and to protect our civil rights while doing so,” said U.S. Attorney Graves. “An officer who abuses his authority breaks the community’s trust and unfairly tarnishes the reputation of the vast majority of officers who do their jobs the right way. The jury found that the defendant broke that trust when he unjustly and unreasonably used force and violence against a fellow citizen.”
“Police brutality and violent misconduct against defenseless people are disgraceful acts that have no place in our society today,” said Assistant Attorney General Clarke. “When law enforcement officers abuse their power, it erodes trust with the communities they are sworn to protect and serve. The victim was handcuffed and already restrained in the back of the defendant’s squad car at the time of the assault. The Justice Department is committed to holding accountable law enforcement officers who violate the civil and constitutional rights of those in their custody.”
"Law enforcement officers swear to protect the people they serve, including those in their custody,” said FBI Assistant Director in Charge Sundberg. “Dupree defiled that responsibility and violated a man's civil rights. As this case demonstrates, the FBI will not hesitate to investigate officers of the law who engage in misconduct, including those who use excessive force."
According to court documents, Dupree was on duty as a Fairmont Heights Police Officer during the early morning hours of Aug. 4, 2019. Dupree spotted a speeding vehicle and conducted a traffic stop on Eastern Avenue NE, in the District of Columbia, just across the Maryland-District of Columbia border. The driver and his sister were returning home to the District of Columbia from a family cookout in Maryland.
Based on a 911 recording placed by the driver’s sister, Dupree told the driver to put his hands behind his back or he would pepper spray him and Dupree would activate his body-worn camera (BWC) to make the stop “official.” The driver questioned the stop because he had not committed any traffic violations and because the stop occurred in the District of Columbia. Dupree asked the driver to exit his vehicle, handcuffed the driver behind his back, and placed the driver in the front passenger seat of Dupree’s personal vehicle.
After Dupree radioed for back-up, an officer from the Prince George’s County Police Department (PGCPD) responded. Around that same time, an MPD officer arrived at the scene in response to a 911 call the driver’s sister had placed. The MPD officer activated his BWC. Dupree did not activate his BWC at any point during the traffic stop. While the handcuffed driver was seated in Dupree’s vehicle, the driver’s sister sat in the driver’s car, ostensibly to prevent Dupree from towing the vehicle. After Dupree told the sister that he “was going to ask [her] one more time to get out of the car,” the sister responded that the car belonged to her brother and that she had a driver’s license. When the sister still refused to exit the vehicle, Dupree threatened to pepper spray her by aggressively shaking his canister of pepper spray.
While the defendant was engaged with the sister, the handcuffed driver was seated in the front passenger seat of Dupree’s car yelling obscenities and insults and activating the vehicle’s sirens. The PFCPD officer asked the handcuffed driver to step out of the vehicle. Dupree asked the other officers for help in taking the handcuffed driver back to Maryland. The PGCPD officer declined to assist.
As it became clear that Dupree would have to transport the driver himself, Dupree then placed the handcuffed driver back in the front passenger seat. The handcuffed driver started to scream, pleading to have another officer transport him. Dupree grabbed his pepper spray, took a step back away from handcuffed driver, shook the canister, and then stepped forward, at which point Dupree pepper-sprayed the handcuffed driver in the face and chest. Instead of transporting the handcuffed driver to the county lock-up as required by FHPD policy, Dupree transported the driver to the FHPD station and detained him there for several hours before turning him over to the county jail. While the driver was detained at FHPD, Dupree drafted a falsified statement of Probable Cause in which he claimed, among other things, that the driver had attacked him.
In addition to body-worn camera footage, an eyewitness captured cell phone video of the traffic stop and Dupree’s excessive use of force.
FBI agents arrested Dupree on August 24, 2022, in Washington D.C.
The case was investigated by the FBI Washington Field Office and is being prosecuted by Trial Attorney Sanjay Patel of the Civil Rights Division and Assistant U.S. Attorney Christopher Howland of the U.S. Attorney’s Office for the District of Columbia.
22-cr-0275
Former Financial TV News Analyst-Turned-Fugitive Arrested on Federal Indictment Charging Him with Defrauding InvestorsRead the Press Release
LOS ANGELES – A former San Gabriel Valley resident who was a frequent guest on financial television news programs then became a fugitive from justice after being accused of defrauding investors is expected to appear today in federal court after being arrested over the weekend.
James Arthur McDonald Jr., 52, formerly of Arcadia, was arrested Saturday at a residence in Port Orchard, Washington, and is expected to make his initial appearance today in United States District Court in Tacoma, Washington. He will arrive in Los Angeles in the coming weeks to face federal charges in this district.
McDonald had been considered a fugitive since at least November 2021, when he failed to appear before the United States Securities and Exchange Commission to testify after allegations arose that he had defrauded investors. Prior to fleeing, McDonald also appeared to have terminated his previous phone and email accounts and told one person that he planned to “vanish,” according to court documents.
Since then, a federal grand jury in Los Angeles in January 2023 returned a seven-count indictment against McDonald. He is charged with one count of securities fraud, one count of wire fraud, three counts of investment adviser fraud, and two counts of engaging in monetary transactions in property derived from unlawful activity.
According to the indictment, McDonald was the CEO and chief investment officer of two companies: Hercules Investments LLC, based in downtown Los Angeles, and Index Strategy Advisors Inc. (ISA), based in Redondo Beach. He frequently appeared as an analyst on the CNBC financial television news network.
In late 2020, McDonald lost tens of millions of dollars of Hercules client money after adopting a risky short position that effectively bet against the health of the United States economy in the aftermath of the U.S. presidential election. McDonald projected that the COVID-19 pandemic and the election would result in major selloffs that would cause the stock market to drop. When the market decline didn’t occur, Hercules clients lost between $30 million and $40 million. By December 2020, Hercules clients were complaining to company employees about the losses in their accounts.
Since McDonald’s compensation for his investment advisory services primarily was based on a percentage of assets under his management – typically 2% of a client’s total assets held by Hercules – the massive losses to Hercules clients significantly decreased the fees McDonald was entitled to collect.
In early 2021, McDonald solicited millions of dollars' worth of funds from investors in the form of a purported capital raise for Hercules but allegedly misrepresented how the funds would be used and failed to disclose the massive losses Hercules previously sustained. McDonald – an avid football enthusiast – stated that he planned to launch a mutual fund under the ticker symbol “NFLHX.” The losses to Hercules clients and the potential for litigation related to those losses jeopardized the success of that fund because any litigation would have had to be publicly disclosed.
As part of the capital raise, McDonald obtained $675,000 in investment funds from one victim group on March 9, 2021. He allegedly misappropriated those funds in various ways, including spending roughly $174,610 of them at a Porsche dealership. Approximately $109,512 was transferred to the landlord of a home McDonald was renting in Arcadia; and approximately $6,800 was spent on a website that sells designer menswear, according to court documents.
McDonald allegedly also falsely represented to clients that ISA, his other firm, was a registered investment adviser, even though he had withdrawn ISA as a state-registered investment adviser firm in May 2019. He also allegedly sent ISA clients false account statements, including for one client who invested approximately $351,000, later needed the money to make a down payment on a home, was informed by McDonald that much of the money had been lost, and never got his full investment back.
An indictment is merely an allegation, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
If convicted of all charges, McDonald would face a statutory maximum sentence of 20 years in federal prison for each securities fraud and wire fraud count, up to 10 years in federal prison on the monetary transactions derived from unlawful activity count, and up to five years in federal prison on the investment adviser fraud count.
The FBI and IRS Criminal Investigation are investigating this matter.
In September 2022, the SEC filed a civil complaint charging McDonald and Hercules with violations of federal securities law. On April 21, United States District Judge Percy Anderson found McDonald liable for a total of approximately $3,810,346, which represented his net profits gained because of the alleged conduct.
Assistant United States Attorney Alexander B. Schwab of the Corporate and Securities Fraud Strike Force is prosecuting this case.
Former College Football Player Pleads Guilty to a Fraud Scheme Involving More than $1 Million in COVID-19 Unemployment BenefitsRead the Press Release
LOS ANGELES – A former college football player and Orange County man pleaded guilty today to orchestrating a scheme that fraudulently sought more than $1 million and obtained more than $280,000 in pandemic unemployment benefits.
Abdul-Malik McClain, 24, most recently of Coto de Caza, pleaded guilty to one count of mail fraud.
“Instead of using his time at a major university to advance his athletic and academic life, this defendant took advantage of a public health emergency to fraudulently obtain government benefits,” said United States Attorney Martin Estrada. “My office will continue to vigorously prosecute individuals who used the recent pandemic for their own unlawful ends.”
“Mr. McLain squandered his gifts and opportunities only to defraud taxpayers whose hard-earned money was appropriated for deserving victims during the Covid era,” said Krysti Hawkins, the Acting Assistant Director in Charge of the FBI's Los Angeles Field Office. “The FBI will continue to work with our partners to identify those who leveraged the Covid pandemic to commit fraud and hold them accountable.”
According to his plea agreement, while a member of his university’s football team, McClain filed fraudulent claims for unemployment benefits and organized and assisted a group of other football players in filing fraudulent claims for unemployment benefits, including under the Pandemic Unemployment Assistance (PUA) program established by Congress in response to COVID-19’s economic fallout. McClain and others filed the claims with the California Employment Development Department (EDD), the administrator of the state’s unemployment insurance (UI) benefit program. The claims contained false information about the claimants’ supposed prior employment, pandemic-related job loss, and job-seeking efforts in California.
The false statements in the UI applications led EDD to authorize Bank of America to mail debit cards addressed to the named claimants, often to addresses that McClain controlled, such that McClain (and not the named claimants) received the debit cards. Those debit cards were loaded with various amounts in fraudulently obtained benefits, ranging from a few hundred dollars to thousands of dollars in unemployment benefits, which the recipients of the debit cards, including in many instances McClain himself, used to make cash withdrawals at ATMs and to fund personal expenses. In some cases, McClain sought and obtained a cut of the fraudulently obtained benefits for helping others file fraudulent UI applications.
McClain’s and his co-schemers’ fraudulent applications sought at least $1,056,092 in UI benefits from EDD and led to receiving at least $283,063 in fraudulently obtained benefits.
United States District Judge Michael W. Fitzgerald scheduled a September 16 sentencing hearing, at which McClain will face a maximum sentence of 20 years in federal prison.
“Abdul-Malik McClain defrauded our nation’s unemployment insurance (UI) system by filing for UI benefits in the names of identity theft victims, while so many deserving people were suffering from pandemic-related economic challenges,” said Quentin Heiden, Special Agent in Charge, Western Region, United States Department of Labor Office of Inspector General. “The benefits were intended for those who truly needed it, not for greedy individuals who chose to exploit the system. The U.S. Department of Labor, Office of Inspector General remains dedicated to its mission to combat UI fraud. Our efforts to uncover fraudulent actors and their schemes is unwavering. I would also like to thank our state and federal law enforcement partners in Los Angeles in this collaborative investigative effort.”
The FBI; the United States Department of Labor Office of Inspector General; the Federal Deposit Insurance Corp. Office of Inspector General; the United States Treasury Inspector General for Tax Administration; the Social Security Administration Office of Inspector General; and the United States Postal Inspection Service investigated this matter. The university, called “University 1” in the indictment, cooperated in this investigation.
Assistant United States Attorney Kerry L. Quinn of the Major Frauds Section is prosecuting this case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. More information on the Justice Department’s response to the pandemic may be found here.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it to the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at (866) 720-5721 or via the NCDF online complaint form.
Former CEO of Medical Device Company Sentenced to Six Years in Prison for Creating and Selling A Fake Component That Was Implanted into PatientsRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that LAURA PERRYMAN was sentenced today to six years in prison in connection with a health care fraud scheme whereby PERRYMAN created and sold a fake medical device component and told doctors that they could claim approximately $18,000 for implanting the fake component into patients. The device was sold by Stimwave, a medical device company of which the defendant was the founder, and, at the time of the offense, Chief Executive Officer. Stimwave previously entered into a Non-Prosecution Agreement with the U.S. Attorney’s Office for the Southern District of New York. PERRYMAN was found guilty of heath care fraud and conspiracy to commit health care fraud and wire fraud following a two-week trial before U.S. District Judge Denise L. Cote, who imposed today’s sentence.
U.S. Attorney Damian Williams said: “Laura Perryman callously created a dummy medical device component and told doctors to implant it into patients. She did this out of greed, so doctors could bill Medicare and private insurance companies approximately $18,000 for each implantation of that dummy component and so she could entice doctors to buy her device for many thousands of dollars. Perryman breached the trust of the doctors who bought her medical device, and more importantly, the patients who were implanted with that piece of plastic. This prosecution and today’s sentence are part of this Office’s ongoing work in combating fraud in the health care system and protecting patients from being exploited for money.”
According to the allegations in the Indictment and the evidence at trial:
Stimwave was a medical device company that manufactured and distributed implantable neurostimulation devices. As the founder and CEO of Stimwave, PERRYMAN oversaw the design of the StimQ PNS System (the “Device”), a neurostimulator system designed to treat chronic pain by providing electrical currents to peripheral nerves. The Device included a component containing electrodes (the “Lead”) and a receiver component that acted as an antenna, transmitting energy from an external power source to the Lead (the “Pink Stylet”). From at least in or about 2017 up to and including 2020, PERRYMAN, as Stimwave’s CEO, engaged in a multi-year scheme (the “Scheme”) to design, create, manufacture, and market an inert, non-functioning component of the Device — called the “White Stylet.” The White Stylet was marketed as a receiver of radiofrequency energy, but it was made of plastic and could not function as a receiver.
Stimwave sold the Device to doctors and medical providers for approximately $16,000. PERRYMAN instructed health care providers to bill medical insurance providers, including Medicare, for implanting the Device into patients through two separate reimbursement codes. One code was for implantation of the stimulator portion of the Lead, and a second was for implantation of a receiver. The billing code for implanting the Lead provided for reimbursement at a rate of between approximately $4,000 and $6,000, while the billing code for implanting a receiver provided for reimbursement at a rate of between approximately $16,000 and $18,000.
Soon after the Device was released, physicians informed Stimwave that they were having trouble implanting the Pink Stylet in certain patients because the Pink Stylet was too long. PERRYMAN knew that the Pink Stylet could not be cut or trimmed to shorten it without interfering with the functionality of the Pink Stylet as a receiver. And, without a receiver component for doctors to implant and seek reimbursement for, doctors would incur a substantial financial loss with every purchase of the Device, thereby making it more difficult for PERRYMAN to sell the Device to doctors and medical providers at the approximately $16,000 price.
However, Stimwave — at the direction of PERRYMAN — did not lower the price of the Device so that its cost to doctors and medical providers could be covered by reimbursement for the implantation of only the Lead. Nor did PERRYMAN recommend that doctors not implant the Device or its receiver component in cases where the Pink Stylet could not fit comfortably. Instead, PERRYMAN directed that Stimwave create the White Stylet — a dummy component made entirely of plastic, but which PERRYMAN misrepresented to doctors as a receiver alternative to the Pink Stylet. The White Stylet could be cut to size by the doctor for use in smaller anatomical spaces and was created solely so that doctors and medical providers would continue to purchase the Device for use in those scenarios and continue to bill for the implantation of a receiver component. To perpetuate the lie that the White Stylet was functional, PERRYMAN oversaw trainings for doctors that indicated the White Stylet was a “receiver,” when in fact it was made entirely of plastic, contained no copper, and therefore had no conductivity. In addition, PERRYMAN directed other Stimwave employees to vouch for the efficacy of the White Stylet as a receiver, when she knew that the White Stylet could not function as a receiver.
As a result of these misrepresentations regarding the functionality of the White Stylet, PERRYMAN caused doctors and medical providers to implant the White Stylet into patients and submit reimbursement claims for implantation of the White Stylet to health insurance providers, including Medicare.
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In addition to the prison term, PERRYMAN, 55, of Delray Beach, Florida, was sentenced to three years of supervised release.
Mr. Williams praised the outstanding investigative work of the Federal Bureau of Investigation for its assistance in this matter.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Jacob Bergman, Mónica Folch, Steven Kochevar, and Kimberly Ravener, with the assistance of Paralegal Specialists Joseph Carbone and Julia Gutierrez, are in charge of the prosecution.
Florida Tax Preparer Sentenced for False Return ConspiracyRead the Press Release
A Florida tax return preparer was sentenced today to 30 months in prison, two years of supervised release and to pay $970,970 in restitution for conspiring to defraud the United States by preparing and filing false tax returns for clients.
According to court documents and statements made in court, from 2017 through 2020, John Borgela ran Empire Tax Services (Empire) with his co-conspirator Phedson Dore and filed hundreds of false returns each year. Borgela typically inflated tax withholdings and reported fictitious itemized deductions to generate refunds for clients to which they were not entitled. To conceal his participation in the fraud, Borgela did not list on the returns his name as the person who prepared them or include Empire’s electronic filing number (EFIN). Instead, he used his employees’ names and the EFINs of other return preparation businesses.
Borgela and his co-conspirator caused a loss to the IRS of approximately $970,000. Dore was sentenced in February to 24 months in prison for his role in the conspiracy.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Roger B. Handberg for the Middle District of Florida made the announcement.
IRS Criminal Investigation investigated the case.
Trial Attorneys Brian Flanagan and Marissa Brodney of the Justice Department’s Tax Division and Assistant U.S. Attorney Shannon Laurie for the Middle District of Florida prosecuted the case.
Employee of Tolland Strip Club Pleads GuiltyRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that WILLIAM MAYO, 41, of Manchester, pleaded guilty today before U.S. District Judge Victor A. Bolden in New Haven to an offense related to the operation of the Electric Blue strip club in Tolland.
According to court documents and statements made in court, the Electric Blue strip club in Tolland employed dancers who performed nude dances and lap dances for customers. Mayo conspired with others to facilitate prostitution at the club. Mayo was employed at the club as a bouncer and was primarily responsible for hiring dancers, many of whom were not legally authorized to live or work in the United States. The Electric Blue had a semi-private “lap dance room” and “VIP rooms” where dancers regularly performed commercial sex acts for customers. As payment for commercial sex acts, customers would typically pay the club an entry fee for use of the lap dance room or one of the VIP rooms and then pay an additional fee directly to the dancer. In addition, the club collected cash through cover charges paid at the door and fees paid by dancers to perform at the club. It is alleged that millions of dollars in business receipts collected in cash were not reported to the IRS.
Mayo pleaded guilty to conspiracy to use an interstate facility to promote or facilitate prostitution, an offense that carries a maximum term of imprisonment of five years. A sentencing date is not scheduled.
Mayo was arrested on May 15, 2024. He is released on a $100,000 bond pending sentencing.
This matter is being investigated by Homeland Security Investigations (HSI), the Internal Revenue Service – Criminal Investigation Division, the Connecticut State Police, the Connecticut Department of Consumer Protection – Liquor Control Division, and the Massachusetts State Police, with the assistance of the Willimantic Police Department and Manchester Police Department. The case is being prosecuted by Assistant U.S. Attorneys Ross Weingarten and Robert S. Dearington.
If any employee/dancer at the Electric Blue has been a victim of the unlawful acts described in this case, please contact the U.S. Attorney’s Office Victim Advocate at [email protected] or 203-696-3039. A Spanish version of the press release issued when this case was originally charged is available here, and a Portuguese version is available here.
El Departamento de Justicia llega a un acuerdo con una agencia de dotación de personal para resolver acusaciones de discriminación en el empleoRead the Press Release
El Departamento de Justicia anunció hoy que ha llegado a un acuerdo conciliatorio con Selective Personnel Inc. (SPI), una agencia de dotación de personal de California. El acuerdo resuelve la determinación del Departamento de que la entidad comercial antecesor de SPI, South Bay Safety (SBS), vulneró la ley de Inmigración y Nacionalidad (INA) cuando discriminó a no ciudadanos de los EE. UU. al verificar su permiso para trabajar en los Estados Unidos.
«A la hora de verificar su permiso para trabajar, los empleadores no deben exigir documentos específicos a los trabajadores por motivos de su estatus de ciudadanía», declaró Kristen Clarke, la Fiscal General Auxiliar de la División de Derechos Civiles del Departamento de Justicia. «La División de Derechos Civiles se compromete a proteger a los trabajadores de prácticas discriminatorias que creen barreras innecesarias al empleo».
Después de llevar a cabo una investigación, la Sección de Derechos de Inmigrantes y Empleados (IER, por sus siglas en inglés), de la División de Derechos Civiles, concluyó que entre al menos septiembre del 2020 y al menos octubre del 2022, SBS exigía que, para demostrar su permiso para trabajar, los no ciudadanos de los EE. UU. presentasen tipos específicos de documentación que reflejasen su estatus migratorio. Por el contrario, a los ciudadanos de los EE. UU. se les permitía presentar cualquier documento aceptable de su elección. Basándose en su investigación, la IER concluyó que SPI era un sucesor en interés de SBS y, por lo tanto, responsable de las infracciones que la IER descubrió.
En virtud del acuerdo, SPI pagará sanciones civiles a los Estados Unidos, capacitará a sus empleados en cuanto a los requisitos de la INA, revisará sus políticas de empleo y se someterá a la supervisión del Departamento.
Los ciudadanos de los EE. UU., los nacionales de los EE. UU., los residentes permanentes legales, los que reciben asilo o estatus de refugiado y otros no ciudadanos de los EE. UU. con permiso para trabajar pueden trabajar legalmente en los Estados Unidos si pueden demostrar su identidad y su permiso para trabajar. Las leyes federales permiten a todos los trabajadores elegir la documentación válida y legalmente aceptable que desean presentar para demostrar su identidad y permiso para trabajar, independientemente de su estatus de ciudadanía, estatus migratorio o nacionalidad de origen. La disposición antidiscriminación de la INA prohíbe a los empleadores solicitar documentos específicos o innecesarios por motivos de la ciudadanía, el estatus migratorio o la nacionalidad de origen de un trabajador. Los empleadores deben permitir que los trabajadores presenten cualquier documentación aceptable que los trabajadores mismos elijan y no pueden rechazar documentación válida que parezca razonablemente genuina y relacionada con el trabajador.
La IER es responsable de hacer cumplir la disposición antidiscriminatoria de la INA. La ley prohíbe la discriminación por motivos de estatus de ciudadanía y nacionalidad de origen en los procesos de contratación, despido o reclutamiento o recomendación por comisión, prácticas documentales injustas y represalias e intimidación.
Puede obtener más información sobre cómo los empleadores pueden evitar la discriminación al verificar el permiso para trabajar de alguien en el sitio web de la IER. Aprenda más sobre el trabajo de la IER y cómo conseguir ayuda mediante este vídeo corto. Aquellos aspirantes o empleados que creen haber sido discriminados por motivos de su ciudadanía, estatus migratorio o nacionalidad de origen en los procesos de contratación, despido, reclutamiento o verificación de la elegibilidad para trabajar (Formulario I-9 e E-Verify) o sujetos a represalias pueden presentar una denuncia. El público también puede llamar a la línea directa de la IER para trabajadores al 1‑800-255-7688 (1-800-237-2515, TTY para personas con discapacidades auditivas); llamar a la línea directa de la IER para empleadores al 1-800-255-8155 (1-800-237-2515, TTY para personas con discapacidades auditivas); inscribirse a un seminario en línea en vivo o visualizar una presentación a la carta; enviar un correo electrónico a [email protected] ; o visitar los sitios web de la IER en inglés y español. Inscríbase para recibir actualizaciones por correo electrónico desde la IER.
El Departamento de Justicia llega a acuerdos con condados tejanos para asegurar la accesibilidad de los sitios web electorales para las personas con discapacidadesRead the Press Release
El Departamento de Justicia anunció hoy que la División de Derechos Civiles y las Fiscalías Federales de los distritos del Este, Norte, Sur, y Oeste de Texas han llegado a acuerdos conciliatorios con los Condados de Colorado, Runnels, Smith y Upton para resolver los hallazgos del departamento que los condados infringieron al Título II de la Ley para Estadounidenses con Discapacidades de 1990 (ADA, por sus siglas en inglés), al mantener sitios web electorales que discriminan contra individuos con discapacidades manuales o visuales.
“La votación en el siglo XXI requiere que los oficiales hagan sus sitios web accesibles para las personas con discapacidades,” comentó Kristen Clarke, la Fiscal General Auxiliar de la División de Derechos Civiles del Departamento de Justicia. “Las barreras discriminatorias en los sitios web electorales pueden prevenir que las personas con discapacidades ejerzan su derecho al voto. Estos acuerdos conciliatorios deben enviar un mensaje a los oficiales estatales y locales de todo el país sobre la importancia de asegurar que sus sitios web electorales son accesibles para los votantes con discapacidades para que puedan participar de manera igualitaria en nuestro proceso democrático.”
Los sitios web electorales de estos cuatro condados tejanos brindan información importante sobre cómo votar, por ejemplo, cuáles son los requisitos para el registro y la identificación del votante, así como, cuál es la información que necesitan las personas con discapacidades para votar. Los sitios web también contienen enlaces a información crítica, incluidos detalles sobre votación temprana y la votación el día de las elecciones.
Bajo los acuerdos conciliatorios, los condados accedieron hacer accesible a las personas con discapacidades todo contenido de web existente y futuro. Los condados también accedieron contratar a un auditor independiente para evaluar la accesibilidad del contenido electoral de los sitios web, adoptar nuevas políticas y entrenamiento para los empleados relevantes, advertir noticia a los visitantes y usuarios de los sitios web para solicitar comentarios y solicitudes sobre cualquier barrera de accesibilidad, y designar a un empleado para coordinar sus esfuerzos.
Estas cuatro investigaciones son parte de la Iniciativa de Votación ADA, la cual se enfoca en proteger los derechos de voto de los individuos con discapacidades. Para conocer más sobre el ADA y cómo esta se aplica a la votación usted puede visitar el sitio web a www.ada.gov/topics/voting/. Estos acuerdos conciliatorios también son parte de la Iniciativa de Equidad Tecnología de la División de Derechos Civiles para combatir discriminación de discapacidad que ocurre a través de la tecnología, tal como los sitios de web y aplicaciones móviles.
Dominican National Faces 10+ Years in Prison After East Millinocket Traffic Stop Reveals 113 Grams of Methamphetamine, Other DrugsRead the Press Release
BANGOR, Maine: A man from the Dominican Republic pleaded guilty today in U.S. District Court in Bangor to possessing controlled substances with intent to distribute.
According to court records, in November 2023, Lenin Nova-Nova, 42, was a passenger in a vehicle that was stopped by the East Millinocket Police Department due to an issue with the headlights. An officer observed an unnatural bulge under Nova-Nova’s clothing. Nova-Nova identified himself using a false name, and a warrant check of that alias revealed an outstanding warrant for arrest. A search of Nova-Nova’s person revealed $1,305 in cash, four cell phones, and suspected controlled substances wrapped in cellophane. Analysis identified the substances as approximately 113 grams of 100% pure methamphetamine, approximately 19 grams of a substance containing fentanyl, and 57.8 grams of a substance containing cocaine base. Homeland Security Investigations was able to determine Nova-Nova’s identity.
Nova-Nova faces a minimum of 10 years and a maximum of life in federal prison and a fine up to $10 million to be followed by supervised release for up to life. Nova-Nova will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The East Millinocket Police Department and Homeland Security Investigations investigated the case.
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Detroit Man Pleads Guilty to Federal Drug CrimeRead the Press Release
HUNTINGTON, W.Va. – Michael Dayshawn Harris, also known as “Polo,” 30, of Detroit, Michigan, pleaded guilty today to distribution of quantities of a mixture and substance containing a detectable amount of methamphetamine and fentanyl.
According to court documents and statements made in court, on October 6, 2022, Harris sold approximately 29 grams of methamphetamine and a quantity of fentanyl to a confidential informant in Huntington. Harris admitted to the transaction and further admitted to arranging it beforehand when the confidential informant called him earlier that day.
Harris is scheduled to be sentenced on September 30, 2024, and faces a maximum penalty of 20 years in prison, at least three years of supervised release, and a $1 million fine.
Co-defendant Desmond Devon Magee, also known as “Rich,” 27, of Detroit, was sentenced on May 22, 2023, to four years in prison, to be followed by three years of supervised release, after pleading guilty to distribution of a quantity of a mixture and substance containing a detectable amount of methamphetamine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI) and the Cabell County Sheriff’s Department.
United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Joseph F. Adams and Courtney L. Finney are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:22-cr-210.
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Dallas Residents Plead Guilty to Federal Controlled Substances Act ViolationsRead the Press Release
NEW ORLEANS, LOUISIANA – HECTOR OMAR SEGURA-LARA (“SEGURA-LARA”) age 35, and JOSE ANTONIO ORTEGA-SILVA (“ORTEGA-SILVA”), age 32, both residents of Dallas, Texas, pled guilty on June 13, 2024 to conspiracy to distribute and possess with intent to distribute a quantity of cocaine, in violation of Title 21, United States Code, Sections 841(a)(1), (b)(1)(C), and 846, announced U.S. Attorney Duane A. Evans.
According to court documents, on August 25, 2021, near milepost 56 on Interstate 12, Louisiana State Troopers conducted a traffic stop of a Chrysler 200 occupied by SEGURA-LARA and ORTEGA-SILVA. When the vehicle occupants provided contradictory answers to the troopers regarding their itinerary, the troopers conducted a consensual search of the vehicle. During the search, the troopers noticed that a twelve-volt battery was attached to the car battery and that the twelve-bolt battery was powering the car. Inside the actual car battery, were four kilograms of cocaine discovered by the troopers.
Both SEGURA-LARA and ORTEGA-SILVA acknowledged they were driving to Virginia to deliver drugs. ORTEGA-SILVA admitted that at the request of another individual, he obtained the vehicle in Dallas and drove it to Houston where another individual loaded the vehicle with drugs. The plan was for ORTEGA-SILVA and SEGURA-LARA to then drive to Virginia where individuals would unload the drugs and place the proceeds ($152,000.00) in the car battery. ORTEGA-SILVA and SEGURA-LARA were instructed to then return to Texas with the proceeds.
For the conspiracy count charged, ORTEGA-SILVA and SEGURA-LARA each face a maximum term of imprisonment of twenty years, a fine of up to $1,000,000.00, a mandatory minimum term of supervised release of three years, and a mandatory special assessment fee of $100.00.
This case was investigated by the Louisiana State Police and the Department of Homeland Security Investigations. The prosecution is being handled by Assistant United States Attorney André Jones of the Narcotics Unit.
Convicted Felon Pleads Guilty to Illegally Trying to Buy A FirearmRead the Press Release
Jacksonville, FL – United States Attorney Roger B. Handberg announces that Jamie Thompson (50, Jacksonville) has pleaded guilty to making a false statement to a federally licensed firearms dealer. Thompson faces a maximum penalty of five years in federal prison. A sentencing date has not yet been set.
According to the plea agreement, Thompson completed an ATF Form 4473 during the attempted purchase of a firearm from a federally licensed firearms dealer. Thompson indicated on the required paperwork that he was not a convicted felon. Thompson admitted this was a false statement, and that he was previously convicted of six felony offenses.
This is another case uncovered through the FBI’s National Instant Criminal Background Check System (NICS). All NICS denials are reported to federal law enforcement and are reviewed daily for potential criminal prosecution. Federal law makes it a felony offense to make a false statement to a firearms dealer when trying to buy a gun.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorney Frank Talbot.
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.
Consulting Companies to Pay $11.3M for Failing to Comply with Cybersecurity Requirements in Federally Funded ContractRead the Press Release
Guidehouse Inc., headquartered in McLean, Virginia, has paid $7,600,000 and Nan McKay and Associates (Nan McKay), headquartered in El Cajon, California, has paid $3,700,000 to resolve allegations that they violated the False Claims Act by failing to meet cybersecurity requirements in contracts intended to ensure a secure environment for low-income New Yorkers to apply online for federal rental assistance during the COVID-19 pandemic.
In early 2021, Congress established the emergency rental assistance program (ERAP) to provide financial assistance to eligible low-income households to cover the costs of rent, rental arrears, utilities and other housing-related expenses during the COVID-19 pandemic. Participating governments were required to establish programs to distribute the federal funding to eligible tenants and landlords. In New York, the Office of Temporary and Disability Assistance (OTDA) was the state agency responsible for administering New York’s ERAP. In May 2021, Guidehouse and OTDA entered a contract under which Guidehouse, as the prime contractor, assumed responsibility for the New York ERAP, including for the ERAP technology and services provided to New Yorkers. Nan McKay, in turn, served as Guidehouse’s subcontractor and was responsible for delivering and maintaining the ERAP technology product used in New York to fill out and submit online applications requesting rental assistance (ERAP Application).
Guidehouse and Nan McKay shared responsibility for ensuring that the ERAP Application underwent cybersecurity testing in its pre-production environment before it was launched to the public. As part of the settlements announced today, Guidehouse and Nan McKay admitted that neither satisfied their obligation to complete the required pre-production cybersecurity testing. The state’s ERAP went live on June 1, 2021. Twelve hours later, OTDA shut down the ERAP website after determining that certain applicants’ personally identifiable information (PII) had been compromised and portions were available on the internet. Guidehouse and Nan McKay acknowledged that had either of them conducted the contractually-required cybersecurity testing, the conditions that resulted in the information security breach may have been detected and the incident prevented.
In addition, as part of its settlement, Guidehouse admitted that for a short time period in 2021, it used a third-party data cloud software program to store personally identifiable information without first obtaining OTDA’s permission, in violation of its contract.
“Federal funding frequently comes with cybersecurity obligations, and contractors and grantees must honor these commitments,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department's Civil Division. “The Justice Department will continue to pursue knowing violations of material cybersecurity requirements aimed at protecting sensitive personal information.”
“Contractors who receive federal funding must take their cybersecurity obligations seriously,” said U.S. Attorney Carla B. Freedman for the Northern District of New York. “We will continue to hold entities and individuals accountable when they knowingly fail to implement and follow cybersecurity requirements essential to protect sensitive information.”
“These vendors failed to meet their data integrity obligations in a program on which so many eligible citizens depend for rental security, which jeopardized the effectiveness of a vital part of the government’s pandemic recovery effort,” said Acting Inspector General Richard K. Delmar of the Department of the Treasury. “Treasury OIG is grateful for DOJ’s support of its oversight work to accomplish this recovery.”
“This settlement sends a strong message to New York State contractors that there will be consequences if they fail to safeguard the personal information entrusted to them or meet the terms of their contracts,” said New York State Comptroller Thomas P. DiNapoli. “Rental assistance has been vital to our economic recovery, and the integrity of the program needs to be protected. I thank the United States Department of Justice, United States Attorney for the Northern District of New York Freedman and the United States Department of Treasury Office of the Inspector General for their partnership in exposing this breach and holding these vendors accountable.”
On Oct. 6, 2021, the Deputy Attorney General announced the department’s Civil Cyber-Fraud Initiative, which aims to hold accountable entities or individuals that put sensitive information at risk by knowingly providing deficient cybersecurity products or services, knowingly misrepresenting their cybersecurity practices or protocols or knowingly violating obligations to monitor and report cybersecurity incidents. Information on how to report cyber fraud can be found here.
The United States’ investigation was prompted by a lawsuit filed under the whistleblower provisions of the False Claims Act, which permit private parties to sue on behalf of the government when they believe that defendants submitted false claims for government funds, and to receive a share of any recovery. The settlement agreements in this case provide for the whistleblower, Elevation 33 LLC, an entity owned by a former Guidehouse employee, to receive a $1,949,250 share of the settlement amounts. The case is captioned United States ex rel. Elevation 33, LLC v. Guidehouse Inc. et al., Case No. 1:22-cv-206 (N.D.N.Y.)
Trial Attorney J. Jennifer Koh of the Civil Division's Commercial Litigation Branch, Fraud Section and Assistant U.S. Attorney Adam J. Katz for the Northern District of New York handled this matter, with assistance from the Department of the Treasury OIG and the Office of the New York State Comptroller.
NMA Settlement Guidehouse SettlementConsulting Companies to Pay $11.3 Million for Failing to Comply with Cybersecurity Requirements in Federally Funded ContractRead the Press Release
ALBANY, NEW YORK – Guidehouse Inc., headquartered in McLean, Virginia, has paid $7,600,000, and Nan McKay and Associates (Nan McKay), headquartered in El Cajon, California, has paid $3,700,000, to resolve allegations that they violated the False Claims Act by failing to meet cybersecurity requirements in contracts intended to ensure a secure environment for low-income New Yorkers to apply online for federal rental assistance during the COVID-19 pandemic.
The announcement was made by United States Attorney Carla B. Freedman; Principal Deputy Assistant Attorney General Brian M. Boynton of the Department of Justice’s Civil Division; Acting Inspector General Richard K. Delmar of the Department of the Treasury’s Office of Inspector General (Treasury OIG); and New York State Comptroller Thomas P. DiNapoli.
In early 2021, Congress established the emergency rental assistance program (ERAP) to provide financial assistance to eligible low-income households to cover the costs of rent, rental arrears, utilities, and other housing-related expenses during the COVID-19 pandemic. Participating governments were required to establish programs to distribute the federal funding to eligible tenants and landlords. In New York, the Office of Temporary and Disability Assistance (OTDA) was the state agency responsible for administering New York’s ERAP. In May 2021, Guidehouse and OTDA entered a contract under which Guidehouse, as the prime contractor, assumed responsibility for the New York ERAP, including for the ERAP technology and services provided to New Yorkers. Nan McKay, in turn, served as Guidehouse’s subcontractor and was responsible for delivering and maintaining the ERAP technology product used in New York to fill out and submit online applications requesting rental assistance (ERAP Application).
Guidehouse and Nan McKay shared responsibility for ensuring that the ERAP Application underwent cybersecurity testing in its pre-production environment before it was launched to the public. As part of the settlements announced today, Guidehouse and Nan McKay admitted that neither satisfied their obligation to complete the required pre-production cybersecurity testing. The State’s ERAP went live on June 1, 2021. Twelve hours later, OTDA shut down the ERAP website after determining that certain applicants’ personally identifiable information (PII) had been compromised and portions were available on the internet. Guidehouse and Nan McKay acknowledged that had either of them conducted the contractually-required cybersecurity testing, the conditions that resulted in the Information Security Breach may have been detected and the incident prevented.
In addition, as part of its settlement, Guidehouse admitted that for a short time period in 2021, it used a third-party data cloud software program to store personally identifiable information without first obtaining OTDA’s permission, in violation of its contract.
United States Attorney Carla B. Freedman stated: “Contractors who receive federal funding must take their cybersecurity obligations seriously. We will continue to hold entities and individuals accountable when they knowingly fail to implement and follow cybersecurity requirements essential to protect sensitive information.”
Principal Deputy Assistant Attorney General Brian M. Boynton stated: “Federal funding frequently comes with cybersecurity obligations, and contractors and grantees must honor these commitments. The Department of Justice will continue to pursue knowing violations of material cybersecurity requirements aimed at protecting sensitive personal information.”
Acting Inspector General Richard K. Delmar stated: “These vendors failed to meet their data integrity obligations in a program on which so many eligible citizens depend for rental security, which jeopardized the effectiveness of a vital part of the government’s pandemic recovery effort. Treasury OIG is grateful for DOJ’s support of its oversight work to accomplish this recovery.”
New York State Comptroller Thomas P. DiNapoli stated: “This settlement sends a strong message to New York State contractors that there will be consequences if they fail to safeguard the personal information entrusted to them or meet the terms of their contracts. Rental assistance has been vital to our economic recovery and the integrity of the program needs to be protected. I thank the United States Department of Justice, United States Attorney Freedman, and the United States Department of the Treasury Office of Inspector General for their partnership in exposing this breach and holding these vendors accountable.”
On October 6, 2021, the Deputy Attorney General announced the Department’s Civil Cyber-Fraud Initiative, which aims to hold accountable entities or individuals that put sensitive information at risk by knowingly providing deficient cybersecurity products or services, knowingly misrepresenting their cybersecurity practices or protocols, or knowingly violating obligations to monitor and report cybersecurity incidents. Information on how to report cyber fraud can be found here.
The United States’ investigation was prompted by a lawsuit filed under the whistleblower provisions of the False Claims Act, which permit private parties to sue on behalf of the government when they believe that defendants submitted false claims for government funds, and to receive a share of any recovery. The settlement agreements in this case provide for the whistleblower, Elevation 33, LLC, an entity owned by a former Guidehouse employee, to receive a $1,949,250 share of the settlement amounts. The case is captioned United States ex rel. Elevation 33, LLC v. Guidehouse Inc. et al., Case No. 1:22-cv-206 (N.D.N.Y.).
The investigation was a result of a coordinated effort between the United States Attorney’s Office for the Northern District of New York; the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section; Treasury OIG; and the Office of the New York State Comptroller. The United States was represented by Assistant United States Attorney Adam J. Katz and Trial Attorney J. Jennifer Koh.
Clive Insurance Salesperson Sentenced to 19 Years in Federal Prison for Defrauding Elderly Individuals and for Contempt of CourtRead the Press Release
DES MOINES, Iowa – A Clive man was sentenced on June 12, 2024, to 18.5 years in federal prison for wire fraud and an additional six months for criminal contempt of court. He also was ordered to pay over $2.4 million in restitution to the victims of his fraud.
According to public court documents and evidence presented at sentencing, Zachary James Flaherty, 48, conducted a vast fraud over the course of seventeen years. From 2006 to 2023, Flaherty defrauded over thirty individuals out of all or portions of their retirement savings and other monies—in all, Flaherty’s victims lost over $3 million. Flaherty’s victims were from Iowa, Kansas, Missouri, and Nebraska; nearly all the victims were elderly, with the oldest being ninety-three years old at the time of the fraud. Most of the victims had limited financial knowledge.
Flaherty developed close relationships with his victims—he took them out to eat, bought them gifts, and helped with chores around their house. At least six of Flaherty’s victims were recently widowed when he exploited them, and Flaherty assisted with funeral arrangements or related matters for multiple victims’ spouses.
To gain access to his victims’ monies, Flaherty lied to his victims about numerous matters, including information about the returns and bonuses they could receive by investing with him, their ability to make penalty-free withdrawals of their funds, and the losses they could incur. Once his victims had “invested” with him, he continued to misrepresent and conceal information about the returns the victims were earning, the amount of money victims had invested, and the costs and penalties associated with the investments.
Flaherty primarily used two approaches to defraud his victims. His first approach was to encourage his victims to write checks to him or one of his businesses and promise his victims that he would invest the funds on their behalf. Victims trusted Flaherty’s statements and wrote him numerous checks. But Flaherty did not invest the funds on his victims’ behalf as he had stated; instead, he spent the money on himself, his family, and his businesses.
Flaherty’s second approach was to invest his victims’ funds into annuities. Flaherty was licensed to sell annuities in multiple states, and by purchasing annuities for his clients, Flaherty received over $1 million in commission payments from insurance companies. To obtain annuities on his victims’ behalf, however, Flaherty submitted documents to insurance companies which contained false misrepresentations, including forged signatures for his victims.
Flaherty’s elderly victims were not financially situated to invest in annuities. Annuities are long-term investments which typically take years to fully vest. If the owner of the annuity withdraws or cancels the annuity before it vests, then the owner usually must pay penalties, taxes, and other fees. Flaherty misrepresented the extent of the penalties, taxes, and fees his victims would suffer by investing with him, and he repeatedly encouraged his victims to withdraw funds and cancel annuities. Taking Flaherty at his word, his victims withdrew money and cancelled annuities, resulting in victims suffering massive amounts of losses.
Numerous victims spoke at sentencing about how Flaherty’s actions had betrayed their trust in him, shattered their faith in other people, and left them with limited financial resources. Several victims lost nearly all their life savings; others can no longer afford medical or assisted-living care. Victims also reported suffering health problems as a result of the increased anxiety and stress caused by Flaherty’s crimes.
Flaherty’s conviction for criminal contempt of court resulted from his violations of court orders issued in February 2024. Those orders prohibited Flaherty from selling or dissipating his personal property, which could be used to pay some of the money back to victims. Yet, Flaherty sold and attempted to sell and conceal several assets in March and April 2024, including guitars. Evidence at sentencing established that since being charged with federal crimes in April 2023, Flaherty repeatedly violated court orders applicable to him.
“Elder financial fraud causes devastating losses to its victims. Zachary Flaherty’s actions targeting the retirement savings and fixed incomes these victims spent a lifetime earning were an unprecedented betrayal of the trust they placed in him. The severity of Flaherty’s 228 months’ sentence, and $2.4 million in restitution, only partially compensates for the deep financial harm caused by his conduct. The heartbreaking impact of this type of crime can leave victims fearful for the future and wondering who to trust. Some helpful keys to combat these crimes are accountability and awareness,” said United States Attorney Richard D. Westphal for the Southern District of Iowa.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. The Iowa Insurance Division’s Fraud Bureau and the Federal Bureau of Investigation investigated this case, with assistance from the Ankeny Police Department, the Clive Police Department, the Des Moines Police Department, and the Iowa Department of Public Safety’s Division of Criminal Investigation.
To report elder fraud, contact the dedicated National Elder Fraud Hotline at 1-833-FRAUD-11 or 1-833-372-8311 and visit the FBI’s IC3 Elder Fraud Complaint Center at https://www.ic3.gov. To learn more about the Department of Justice elder justice efforts please visit the Elder Justice Initiative page: https://www.justice.gov/elderjustice.
Cherry Creek Man Sentenced for Abusive Sexual ContactRead the Press Release
PIERRE - United States Attorney Alison J. Ramsdell announced today that Chief Judge Roberto A. Lange, U.S. District Court, has sentenced a Cherry Creek, South Dakota, man convicted of two counts of Abusive Sexual Contact. The sentencing took place on June 10, 2024.
Dana James Marshall, age 38, was sentenced to five years in federal prison, followed by five years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $200.
Marshall was indicted by a federal grand jury in October of 2023. He pleaded guilty on March 11, 2024.
On April 15, 2022, Marshall invited his 18-year-old niece to his bedroom. She accepted his invitation and disrobed at his behest, but clearly told Marshall she did not want him to sexually touch her. Marshall nonetheless seized her by the ribs and groped her private body parts. This incident occurred in the Cherry Creek Community, which lies within the Cheyenne River Indian Reservation.
This matter was prosecuted by the U.S. Attorney’s Office because the Major Crimes Act, a federal statute, mandates that certain violent crimes alleged to have occurred in Indian country be prosecuted in federal court as opposed to State court.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Service and the FBI. Assistant U.S. Attorney Carl Thunem prosecuted the case.
Marshall was immediately remanded to the custody of the U.S. Marshals Service.
Buffalo man going back to prison on drug and gun chargesRead the Press Release
BUFFALO, N.Y.-U.S. Attorney Trini E. Ross announced today that Victor Marshall, 51, of Buffalo, NY, who was convicted of possession with intent to distribute, and distribution of, cocaine and being a felon in possession of a firearm and ammunition, was sentenced to serve 156 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Pierre Richard Antoine, who is handling the case, stated that in June 2014, Marshall was sentenced to serve 130 months in federal prison and five years’ supervised release after being convicted of conspiracy to distribute 500 grams or more of cocaine. As a condition of supervised release, Marshall was ordered not to commit another federal, state, or local crime. In March 2022, Marshall was indicted by a federal grand jury on drug and gun charges, and subsequently admitted that he committed the conduct alleged in the indictment, violating his supervised release.
The sentencing is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Matthew Miraglia.
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Bronx Resident Pleads Guilty in Conspiracy Targeting Credit UnionsRead the Press Release
ALBANY, NEW YORK – Jerjuan Joyner, age 49, of the Bronx, New York, pled guilty today for his role in a bank fraud conspiracy that targeted credit unions all over the country since at least December 2021. United States Attorney Carla B. Freedman and Craig L. Tremaroli, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), made the announcement.
Joyner admitted that between at least December 2021 and April 2023, he was a member of a nationwide bank fraud conspiracy that targeted credit unions insured by the National Credit Union Share Insurance Fund. Many of the credit unions were members of a shared branching network, which allowed customers of member credit unions to withdraw funds from their accounts at other member credit unions by presenting an identification with their photograph, their account number, and the last four digits of their Social Security number. The network was designed to allow customers of localized credit unions easier access to their accounts when traveling throughout the country. However, according to the plea agreement, the conspirators exploited this network by creating fake identifications in the names of real credit union customers, but with photographs of other individuals, who conducted fraudulent transactions at shared branch member credit unions all over the country in exchange for drugs or a small portion of the stolen funds.
Joyner pled guilty today to conspiracy to commit bank fraud. He admitted that he was recruited by senior members of the conspiracy to drive individuals to credit unions in the Northern District of New York and elsewhere to fraudulently withdraw cash from customers’ accounts. Joyner admitted that the trips he drove resulted in fraudulent withdrawals of $120,998, with an additional nearly $15,000 in attempted fraudulent withdrawals.
When Joyner is sentenced by United States District Judge Mae A. D’Agostino, in Albany on October 22, 2024, he faces up to 30 years in prison, a term of supervised release of up to 5 years, and a fine of up to $1 million. Joyner will also be ordered to pay restitution in the amount of $120,998 to the victims of his crimes.
Joyner’s plea resolves the charges against him in a federal indictment returned last December. The indictment charges an additional 7 individuals with their roles in the bank fraud conspiracy, which allegedly involves more than $1 million in total losses.
The charges in the indictment are merely accusations as to the remaining defendants. The remaining defendants are presumed innocent unless and until proven guilty.
FBI Albany is investigating the case, with assistance from the FBI Field Offices in New York and Newark, and Resident Agencies in Westchester, New York; Garrett Mountain, New Jersey; and Fort Walton Beach, Florida. Additional assistance was provided by other law enforcement agencies, including Immigration and Customs Enforcement – Enforcement & Removal Operations (New York Field Office & Albany sub-office); U.S. Department of State Diplomatic Security Service (Buffalo Field Office & St. Albans Resident Office); U.S. Social Security Administration – Office of the Inspector General, the New York State Police; Cohoes Police Department; Colonie Police Department; Elmira Police Department; Corning Police Department; Plattsburgh Police Department; Florida law enforcement agencies including the Okaloosa County Sheriff’s Office and Escambia County Sheriff’s Office; law enforcement agencies in New Hampshire, including the Rochester Police Department, Manchester Police Department, Amherst Police Department; the Norwich, CT Police Department; law enforcement agencies in Massachusetts, including the Springfield, MA Police Department; the Pennsylvania State Police; the Delaware State Police; and law enforcement agencies in Maryland, including the Harford County Sheriff’s Office and Baltimore County Sheriff’s Office.
Assistant United States Attorney Benjamin S. Clark is prosecuting this case.
Bridgeport Man Admits Trafficking Guns from Georgia to ConnecticutRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that TYREE THOMAS, 39, of Bridgeport, pleaded guilty today before U.S. District Judge Victor A. Bolden in New Haven to an offense relating to his illegal trafficking of firearms from Georgia to Connecticut.
According to court documents and statements made in court, Thomas’ criminal history includes felony convictions and he is prohibited from purchasing firearms. Between approximately August 2021 and March 2022, Thomas traveled to Georgia multiple times where, using a straw purchaser, he acquired at least 20 firearms. He then transported the firearms to Connecticut where he sold or transferred them to felons and others who were not licensed to possess them. Several of the firearms that Thomas acquired in Georgia have been recovered by law enforcement in Connecticut, including two that were recovered in connection with homicides.
Thomas pleaded guilty to crossing state lines with the intent to engage in the unlawful dealing of firearms, an offense that carries a maximum term of imprisonment of 10 years. A sentencing date is now scheduled.
Thomas was arrested on September 6, 2023. He is released on a $100,000 bond pending sentencing.
This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the Bridgeport Police Department. The case is being prosecuted by Assistant U.S. Attorneys Lauren Clark and Rahul Kale. through Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce gun violence and other violent crime, and to make our neighborhoods safer for everyone. In May 2021, the Justice Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. For more information about Project Safe Neighborhoods, please visit www.justice.gov/PSN.
Bradenton Man Sentenced to Additional Prison Term for Possessing Firearm During Police ChaseRead the Press Release
Tampa, Florida – U.S. District Judge Steven D. Merryday today sentenced Dovantate Wright (26, Bradenton) to two years and six months in federal prison for possessing a firearm as a convicted felon. Wright entered a guilty plea on March 8, 2024. The federal sentence was imposed consecutively to a separate sentence of five and six months imposed in Manatee County.
According to court documents, on September 2, 2022, Wright was the front seat passenger of a vehicle driving in the wrong direction on a one-way road in Sarasota, Florida. Officers from the Sarasota Police Department stopped the vehicle, and Wright fled on foot into an auto parts store. Inside the store, Wright ran behind the counter into the back of the store where he stumbled into a product bin as he attempted to pull from his waistband a fully loaded Smith and Wesson model 40C .40 caliber pistol with one round in the chamber.
During an interview with agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives, Wright admitted to possessing the firearm and to being a convicted felon. Wright previously served three years in Florida State Prison for aggravated assault on a law enforcement officer and grand theft of a motor vehicle. As a convicted felon, Wright is prohibited from possessing a firearm or ammunition under federal law.
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 Sarasota Police Department. It was prosecuted by Assistant United States Attorney David W.A. Chee.
Bogalusa Man Sentenced to 144 Months in Prison for Federal Drug and Firearm ViolationsRead the Press Release
NEW ORLEANS, LOUISIANA – JEROME WILSON (“WILSON”), age 29, a resident of Bogalusa, Louisiana, was sentenced on June 11, 2024 to 144 months in prison for drug and firearm violations, followed by five years of supervised release, and a mandatory $400 special assessment fee, after previously pleading guilty before U.S. District Judge Darrel James Papillion, to a four-count superseding indictment.
Count 1 charged WILSON with conspiring to distribute Fentanyl, in violation of Title 21, United States Code, Section 841(b)(1)(C) and 846. Count 2 charged WILSON with conspiring to possess firearms in furtherance of drug trafficking activity, in violation of Title 18, United States Code, Section 924(o). Count 3 charged WILSON with possession of a firearm in furtherance of a drug trafficking crime, in violation of Title 18, United States Code, Section 924(c)(1)(A)(i). Finally, Count 4 charged WILSON with being a felon in possession of a firearm, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(8).
According to court documents, on December 6, 2022, Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”) agents surveilling the 1900 block of Frenchmen Street in New Orleans saw WILSON driving a white Dodge Challenger with one passenger. Agents then saw WILSON, his passenger, and a third co-defendant apparently engaged in illegal narcotics transactions, all while possessing firearms. Soon after, WILSON took a firearm from the car and put it atop the right rear tire to allow easy access while selling drugs. WILSON was later arrested after a brief pursuit. Subsequently, officers obtained a state search warrant for the white Dodge Challenger and recovered a Sarsilmaz, Model Sar9, 9-millimeter pistol, from the center console. A criminal history check revealed that WILSON had two prior felony convictions and was not legally allowed to possess a firearm.
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, the United States Drug Enforcement Administration, and the New Orleans Police Department. The prosecution was handled by Assistant United States Attorney Maurice E. Landrieu, Jr. of the Narcotics Unit and Assistant United States Attorney Michael Trummel of the Violent Crime Unit.
Baytown man admits to making bomb threatsRead the Press Release
HOUSTON – A 37-year-old local man has entered a guilty plea to three counts of sending threatening communications through interstate commerce, announced U.S. Attorney Alamdar S. Hamdani.
Joshua Guadalupe Magana admitted to sending bomb threats on multiple occasions to the White House, FBI and other organizations over the course of several years. Law enforcement had previously warned him that making such threats is a crime and could subject him to imprisonment.
Specifically, Magana pleaded guilty to the charge related to a threat made June 4, 2019, when he called the FBI and said he would blow up the White House. “There is a bomb. I’m going to blow up the White House,” he stated and then hung up. Magana admitted to making the call and claimed he picked the White House because it was the most important building he could think of and wanted a “big, serious” response.
Magana contacted the White House directly Dec. 15, 2021, and sent an email with the subject line reading “Contact the President” and a message stating “Bomb the White House.” On Feb. 27, 2022, Magana contacted the White House again and sent a similar threatening email.
“We take all threats seriously,” said Hamdani. “People cannot convey their political or social disagreements through threats or violence.”
U.S. District Judge Lee H. Rosenthal will impose sentencing Oct. 2. At that time, Magana faces up to five years in federal prison.
He has been and will remain in custody pending that hearing.
Secret Service and FBI conducted the investigation. Assistant U.S. Attorney Heather Winter is prosecuting the case.
Bakersfield Man Pleads Guilty to $25 Million Tax Fraud SchemeRead the Press Release
FRESNO, Calif. — Miguel Martinez, 39, of Bakersfield, pleaded guilty today to conspiring to submit $25 million in fraudulent individual federal income tax returns, U.S. Attorney Phillip A. Talbert announced.
According to court records, from November 2019 through June 2023, Martinez was one of the leaders of a scheme to file hundreds of fraudulent tax returns that claimed millions of dollars in refunds. Martinez and others caused false wage and withholding information for individuals that supposedly worked at fake businesses to be submitted to the Internal Revenue Service. Federal agents determined that the individuals did not work at the businesses, the businesses were fake because the businesses never actually paid any withholdings to the IRS, and the purported owners were unaware of the businesses. Martinez and others then submitted fraudulent tax returns that were in the names of the individuals who supposedly worked at the fake businesses and claimed substantial refunds from the IRS.
As a result of the scheme, the IRS paid out $2.3 million in fraudulent tax refunds. When federal agents arrested Martinez and searched his three homes, he was found with another $750,000 in fraudulent tax refund checks, identification cards for more than 200 individuals, and multiple firearms and ammunition.
This case is the product of an investigation by the IRS Criminal Investigation. Assistant U.S. Attorneys Joseph Barton and Henry Carbajal III are prosecuting the case.
“Mr. Martinez orchestrated an elaborate scheme to steal approximately $25 million by filing hundreds of fraudulent federal income tax returns using fake businesses with false refund claims all while attempting to challenge the integrity of the U.S. tax system,” said IRS Criminal Investigation Oakland Field Office Acting Special Agent in Charge Michael Mosley. “His plea reinforces that IRS Criminal Investigation special agents and investigative staff are up to that challenge and committed to following the money and directing criminals to justice.”
Martinez is scheduled to be sentenced on Sept. 23, 2024. He faces a statutory maximum penalty of 10 years in prison and $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Martinez’s co-defendant in the case, Victor Cruz, who is a tax preparer in Bakersfield, is pending trial. Cruz is presumed innocent until and unless he is proven guilty beyond a reasonable doubt.
Armenian National Pleads Guilty to Assaulting an Officer at a Kern County Immigration Detention FacilityRead the Press Release
FRESNO, Calif. — Arsen Tonoyan, 46, formerly residing in Los Angeles, pleaded guilty today to assault on a federal officer or employee that inflicted bodily injury, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Tonoyan was a detainee at the U.S. Immigration and Customs Enforcement’s Golden State Annex detention facility in Kern County. On March 7, 2022, Tonoyan walked up to a detention officer and hit him multiple times causing the officer to fall to the ground. As a result of the attack, the officer suffered bodily injuries, including a concussion, cuts and swelling on his face, and shoulder pain. The officer sought medical attention for his injuries.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorneys Joseph D. Barton and Cody S. Chapple are prosecuting the case.
Tonoyan is scheduled to be sentenced by U.S. District Judge Jennifer L. Thurston on Sept. 16, 2024. Tonoyan faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Armed Waterbury Drug Dealer Sentenced to 5 Years in Federal PrisonRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that KEVIN RIVERA, 29, of Waterbury, was sentenced today by U.S. District Judge Jeffrey A. Meyer in New Haven to 60 months of imprisonment, followed by five years of supervised release, for possessing a firearm in furtherance of a drug trafficking crime.
According to court documents and statements made in court, on November 24, 2021, the Waterbury Police Department (WPD) established surveillance at Rivera’s residence in preparation for the execution of multiple state search warrants. Investigators observed Rivera exit his residence and then open doors to multiple vehicles in the parking lot in front of the building. Rivera removed a plastic bag from one of the vehicles, conduct what appeared to be drug transaction with an individual, and then drive away. When Rivera returned a short time later and investigators approached him, Rivera dropped a clear plastic bag containing approximately 46 bags of heroin/fentanyl. Rivera was arrested at that time.
Searches of Rivera’s residence and vehicles parked in front of his residence revealed more than 3,000 bags of heroin/fentanyl, a small quantity of cocaine, items used to process and package narcotics, a loaded Kel Tec Sub-2000 9mm caliber semiautomatic rifle with an obliterated serial number, an armor-plated bulletproof vest, and other items.
Rivera has been detained since his arrest. He pleaded guilty on March 11, 2024.
This matter was investigated by the Waterbury Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). The case was being prosecuted by Assistant U.S. Attorney Natasha M. Freismuth through Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce gun violence and other violent crime, and to make our neighborhoods safer for everyone. In May 2021, the Justice Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. For more information about Project Safe Neighborhoods, please visit Justice.gov/PSN
Armed Drug Trafficker Sentenced to 8 Years on Federal Drug and Firearms OffensesRead the Press Release
ELIZABETH CITY, N.C. – A Tarboro man was sentenced to 96 months in prison for armed drug trafficking. On March 5, 2024, Drako Butler, age 35, pled guilty to the charges.
“Narcotics, guns, and money are a recipe for disaster,” said U.S. Attorney Michael Easley. “This Tarboro drug trafficker was heavily armed, stocked with narcotics, and flush with cash when officers searched his property. Searches turned up eleven guns, including assault rifles and a fifty-round drum magazine, alongside all the hallmarks of a committed drug trafficker – digital scales, money counters, and a hoard of narcotics. Drug traffickers should take note - our partnerships in Nash and Edgecombe Counties have never been stronger and federal crimes mean federal time.”
According to court documents and other information presented in court, Butler became the subject of an investigation after Nash County Sheriff’s Office Deputies stopped his vehicle on May 31, 2023, and found cocaine, marijuana, marijuana edibles (THC), and a 9mm semi-automatic firearm loaded with 24 rounds of ammunition. Following that stop, the Drug Enforcement Administration (DEA), the Nash and Edgecombe County Sheriff’s Offices, and the Tarboro and Rocky Mount Police Department (RMPD) executed a search warrant on Butler’s residence on June 6, 2023. Inside, they found cocaine, methamphetamine, psilocin, marijuana; more than $26,000 in cash; six firearms (four AR-style rifles, a shotgun, and a pistol), an undetermined number of orange-colored pills, six digital scales, a money counter, six glass pipes, and counterfeit currency. Butler admitted to dealing marijuana after his arrest on June 6, 2023, but was released on bond.
On November 29, 2023, law enforcement officers searched Butler’s new residence while executing a federal arrest warrant for the drugs and guns found during the June search. Officers found more than 15 pounds of marijuana, along with cocaine and five more firearms (a 5.56 caliber rifle, a .22 long rifle caliber rifle, a 10mm handgun, a 9mm handgun with an obliterated serial number, and a 50-round drum loaded magazine, and a 9mm handgun with an extended magazine), assorted ammunition, six $100 bills of counterfeit currency, digital scales, a money counter, and glass pipes. Butler again admitted to investigators that he sold marijuana.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Terrence W. Boyle. The DEA, the Nash and Edgecombe County Sheriff’s Offices, and the Tarboro and Rocky Mount Police Departments investigated the case and Assistant U.S. Attorney Phil Aubart prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 4:23-cr-00063-BO-RN.
Amarillo City Employee Pleads Guilty to Embezzling $465,000 from Homeless ProgramRead the Press Release
An Amarillo city employee pleaded guilty today to embezzling more than $465,000 in funds meant to provide shelter for homeless people, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Amy Dixon, 44, the City of Amarillo’s former Homeless Management Information Specialist, pleaded guilty Monday to a criminal information charging conspiracy to embezzle from a federally funded program.
In her role, Ms. Dixon was responsible for distributing funds to local landlords through the U.S. Department of Housing & Urban Development’s Emergency Solutions Grant (ESG) Program. She communicated with Amarillo property owners who were willing to lease their properties through the program, assisted in completing lease agreements, coordinated physical inspections of their properties, and assembled payment voucher packages. (The program paid market-rate rents to landlords willing to house those who needed assistance.)
According to plea papers, in September 2020, Ms. Dixon used a relative's personally identifiable information to create a fictitious landlord, for whom she created fraudulent payment voucher packages. She instructed Amarillo’s Finance Department to call her when the payment vouchers were ready, then signed the relative’s name on the checks and deposited the funds into her personal bank account.
In April 2021, when HUD announced that it would accept inspections completed by outside companies, she began to process payments for fictitious properties.
In total, Ms. Dixon created 223 fraudulent payment vouchers resulting in 66 checks written to fictitious landlords, with a total loss amount of $465,511.65.
Ms. Dixon now faces up to five years in federal prison.
The Federal Bureau of Investigation’s Dallas Field Office – Amarillo Resident Agency and the U.S. Department of Housing & Urban Development – Office of Inspector General conducted the investigation. Assistant U.S. Attorney Joshua Frausto is prosecuting the case.
Sunday 16 June 2024
United States Attorney’s Office Recognizes World Elder Abuse Awareness DayRead the Press Release
DETROIT – Dawn N. Ison, U.S. Attorney for the Eastern District of Michigan, joined Chief Issa Shahin, Dearborn Police Department, Cheyvoryea Gibson, Special Agent in Charge, Federal Bureau of Investigation and Inspector in Charge Rodney Hopkins, United States Postal Inspection Service today in recognizing World Elder Abuse Awareness Day (WEAAD). Since 2006, WEAAD has been commemorated to promote awareness and increases understanding of the many forms of elder abuse as well as the resources available to those at risk.
Highlighting the partnership between law enforcement and the public, U.S. Attorney Ison emphasized the importance of awareness and education.
The U.S. Attorney’s Office, in partnership with Dearborn Police, City of Dearborn Senior Services, United States Postal Inspection Service, and the FBI, will hold a Town hall meeting to raise awareness about elder abuse, specifically frauds that target our older citizens, on Thursday, June 20, 2024, from 1:00 p.m.-3:00 p.m. at the Henry Ford Centennial Library located at 16301 Michigan Avenue, Dearborn. Highlighted speakers will include U.S. Attorney Dawn N. Ison and Dearborn Police Chief Issa Shahin. The Town hall is open to the public and media.
“We want to empower our seniors to recognize fraud,” United States Attorney Dawn N. Ison said. “We hope that this town hall will arm our seniors with the information they need to protect themselves.”
“Every day, consumers of all ages are bombarded by offers and representations over the phone, across the internet, and through the mail – some of which are legitimate and some of which are not. The Postal Inspection Service is dedicated to identifying and prosecuting the con artists making these illegitimate representations, raising awareness of their schemes, and ultimately protecting our most vulnerable populations.” Inspector in Charge Rodney M. Hopkins, U.S. Postal Inspection Service, Detroit Division.
Elder abuse is an act that knowingly, intentionally, or negligently causes or creates a serious risk of harm to an older person by a family member, caregiver, or other person in a trust relationship. Such harm may be financial, physical, sexual, or psychological. The Justice Department maintains a variety of programs and initiatives to combat elder abuse.
The Transnational Elder Fraud Task Force marshals federal and state agencies working collaboratively to investigate and prosecute foreign-based schemes that target older Americans. In addition to aggressively investigating the individuals, organizations, and networks responsible for these crimes, this initiative provides the public with information to guard against both traditional scams, like tech support fraud, as well as trending schemes, such as romance scams.
Using one scam to perpetrate or conceal another, some fraudsters rely on money mules to move the proceeds of their illegal activity. Preying on the good will or financial vulnerability of their targets, scammers recruit people, many times older victims, to participate in schemes to move money in ways that avoid notice. The Money Mule Initiative identifies and addresses money mule activity to disrupt these fraud schemes, and helps people to recognize and avoid participation in perpetuating fraud.
To help older individuals and their families identify and avoid fraudulent activity, the Justice Department provides Senior Scam Alerts with information about the tactics used in specific schemes. For example, in Social Security Administration Impostor schemes, scammers impersonate government administrators and falsely reporting suspicious activity to request that the victims provide their Social Security number for confirmation. In Tech Support scams, fraudsters contact victims, sometimes through internet pop-up messages, to warn about non-existent computer problems, ask that the victim give them remote access to their computer, and identify a non-existent problem, then demand large sums of money for unnecessary services. In Lottery scams, telemarketers falsely notify victims that they have won a sweepstakes and tell them they must first pay fees for shipping, insurance, customs duties, or taxes before they can claim their prizes.
To learn more about the department’s elder justice efforts please visit the Elder Justice Initiative page.
The Eastern District of Michigan continues to work with federal, state, local, and Tribal law enforcement partners to investigate and prosecute elder abuse crimes.
Our office recently settled a first of its kind civil action in the Eastern District of Michigan which was part of a broader trend in recent years by the Department of Justice to disrupt international fraud rings that target United States citizens through fake social media profiles.
To report elder fraud, contact the dedicated National Elder Fraud Hotline at 1-833-FRAUD-11 or 1-833-372-8311 and visit the FBI’s IC3 Elder Fraud Complaint Center at IC3.gov.
Saturday 15 June 2024
White River Man Sentenced for Failure to RegisterRead the Press Release
PIERRE - United States Attorney Alison J. Ramsdell announced today that Chief Judge Roberto A. Lange, U.S. District Court, has sentenced a White River, South Dakota, man convicted of Failure to Register as a Sex Offender. The sentencing took place on June 10, 2024.
Nathan First In Trouble, age 45, was sentenced to 13 months in federal prison, followed by five years of supervised release, and ordered to pay a special assessment to the Federal Crime Victims Fund in the amount of $100.
First In Trouble was indicted by a federal grand jury in December of 2023. He pleaded guilty on March 21, 2024.
On December 12, 1995, First In Trouble was convicted in Mellette County, South Dakota of Sexual Contact With a Person Incapable of Consenting. On April 13, 1998, he was also convicted of Sexual Abuse of a Minor in U.S. District Court in Aberdeen, South Dakota. Both convictions required him to register as a sex offender under the provisions of the Sex Offender Registration and Notification Act (SORNA) and South Dakota law. First In Trouble failed to update his registration between July 29, 2022, and December 12, 2023.
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 https://www.justice.gov/psc.
This case was investigated by the U.S. Marshals Service and the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Tim Maher prosecuted the case.
First In Trouble was immediately remanded to the custody of the U.S. Marshals Service.
Wakpala Man Sentenced for Assault Resulting in Substantial Bodily Injury to an Intimate PartnerRead the Press Release
ABERDEEN - United States Attorney Alison J. Ramsdell announced today that U.S District Judge Charles B. Kornmann has sentenced a Wakpala, South Dakota, man convicted of Assault Resulting in Substantial Bodily Injury to an Intimate Partner. The sentencing took place on June 10, 2024.
Phillip Lewis Young Hawk, age 45, was sentenced to 60 months in federal prison, followed by three years of supervised release, and ordered to pay a special assessment to the Federal Crime Victims Fund in the amount of $100.
Young Hawk was indicted by a federal grand jury in June of 2023. He pleaded guilty on December 18, 2023.
On April 7, 2023, Young Hawk quarreled with his girlfriend on a rural roadside near Wakpala, South Dakota, which lies within the Standing Rock Sioux Indian Reservation. Young Hawk knocked his girlfriend down, then kicked her twice with shod feet as she lay helpless on the ground, whimpering and pleading. The assault ended when Young Hawk’s brother forcibly restrained him. Young Hawk’s girlfriend briefly lost consciousness from the assault and incurred significant bruising to her face. Young Hawk has several prior convictions for domestic violence.
This matter was prosecuted by the U.S. Attorney’s Office because the Major Crimes Act, a federal statute, mandates that certain violent crimes alleged to have occurred in Indian country be prosecuted in federal court as opposed to State court.
This case was investigated by the Bureau of Indian Affairs – Office of Justice Services. Assistant U.S. Attorney Carl Thunem prosecuted the case.
Young Hawk was immediately remanded to the custody of the U.S. Marshals Service.
The United States Attorney's Office for the Middle District of Tennessee Recognizes World Elder Abuse Awareness DayRead the Press Release
NASHVILLE – United States Attorney Henry C. Leventis for the Middle District of Tennessee, joined national, state, local, and Tribal leaders today in recognizing World Elder Abuse Awareness Day (WEAAD). Since 2006, WEAAD has been commemorated to promote awareness and increases understanding of the many forms of elder abuse as well as the resources available to those at risk.
Highlighting the partnership between law enforcement and the public, U.S. Attorney Leventis emphasized the importance of awareness and education.
Elder abuse is an act that knowingly, intentionally, or negligently causes or creates a serious risk of harm to an older person by a family member, caregiver, or other person in a trust relationship. Such harm may be financial, physical, sexual, or psychological. The Justice Department maintains a variety of programs and initiatives to combat elder abuse.
The Transnational Elder Fraud Task Force marshals federal and state agencies working collaboratively to investigate and prosecute foreign-based schemes that target older Americans. In addition to aggressively investigating the individuals, organizations, and networks responsible for these crimes, this initiative provides the public with information to guard against both traditional scams, like tech support fraud, as well as trending schemes, such as romance scams.
Using one scam to perpetrate or conceal another, some fraudsters rely on money mules to move the proceeds of their illegal activity. Preying on the good will or financial vulnerability of their targets, scammers recruit people, many times older victims, to participate in schemes to move money in ways that avoid notice. The Money Mule Initiative identifies and addresses money mule activity to disrupt these fraud schemes, and helps people to recognize and avoid participation in perpetuating fraud.
To help older individuals and their families identify and avoid fraudulent activity, the Justice Department provides Senior Scam Alerts with information about the tactics used in specific schemes. For example, in Social Security Administration Impostor schemes, scammers impersonate government administrators and falsely reporting suspicious activity to request that the victims provide their Social Security number for confirmation. In Tech Support scams, fraudsters contact victims, sometimes through internet pop-up messages, to warn about non-existent computer problems, ask that the victim give them remote access to their computer, and identify a non-existent problem, then demand large sums of money for unnecessary services. In Lottery scams, telemarketers falsely notify victims that they have won a sweepstakes and tell them they must first pay fees for shipping, insurance, customs duties, or taxes before they can claim their prizes.
The United States Attorney’s Office continues to work with its federal, state and local law enforcement partners to investigate and prosecute elder abuse crimes. In April 2023, a federal jury convicted a defendant of twelve felony counts related to a scheme to defraud an elderly widow of over one million dollars. The defendant tricked the victim into believing that he would care for her personally and financially. He held himself out as the victim’s “personal representative,” her “son” or her “godson,” and pretended that he was acting on her behalf. In total, the defendant defrauded the victim of approximately $1.2 million. He used her money to purchase luxury items and often spent over $1,000 per day on lottery tickets. The defendant’s lavish spending using the victim’s money included purchasing a Lexus GX460, a 4.3-karat diamond ring, and a $170,000 interest in a pest control business.
Fraud related to nursing homes and worthless services remains a priority for the office. The office leads the District’s Elder Justice Task Force to ensure coordination across law enforcement agencies on the most recent scams targeting seniors, including AI-generated scams.
To learn more about the department’s elder justice efforts please visit the Elder Justice Initiative page.
To report elder fraud, contact the dedicated National Elder Fraud Hotline at 1-833-FRAUD-11 or 1-833-372-8311 and visit the FBI’s IC3 Elder Fraud Complaint Center at IC3.gov.
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SDTX recognizes World Elder Abuse Awareness DayRead the Press Release
HOUSTON – June 15 is World Elder Abuse Awareness Day (WEAAD), and the Southern District of Texas (SDTX) continues its aggressive prosecution and community relations efforts to address the issue, announced U.S. Attorney Alamdar S. Hamdani.
Since 2006, people have commemorated WEAAD to promote awareness and increases understanding of the many forms of elder abuse as well as the resources available to those at risk.
Highlighting the partnership between law enforcement and the public, Hamdani emphasized the importance of awareness, education and prosecution.
“The eldest generation includes, for many of us, our grandparents, parents, aunts and uncles,” said Hamdani. “They were our teachers, coaches, mentors and bosses. And now they are too often targets of opportunistic criminals who try to advantage of their trust or their physical or mental sunset. Protecting and standing up for the most vulnerable of our citizens is why we come to work each day. That mission has particular resonance when the cases we work on involve elderly victims.”
Hamdani also provided additional information and guidance in a public service announcement.
Elder abuse is an act that knowingly, intentionally or negligently causes or creates a serious risk of harm to an older person by a family member, caregiver or other person in a trust relationship. Such harm may be financial, physical, sexual or psychological.
The SDTX continues to work with federal, state and local law enforcement partners to investigate and prosecute elder abuse crimes.
Just last month, the office charged several members of a religious-based company who allegedly took nearly the entire retirement savings of a WWII veteran in his 90s. A mother and son were also charged for purportedly tricking an elderly couple out of $1M as were romance scammers who allegedly targeted the elderly in $3M fraud. Meanwhile, recent convictions include two in McAllen in a multimillion-dollar daycare fraud scheme, while the leader of a nationwide fraud scheme targeting elderly victims is now serving a 188-month sentence and another was sentenced to the max for his role in laundering scam proceeds.
The SDTX also continues its community relations efforts to promote understanding of the important issue of elder fraud.
In April, SDTX personnel joined the U.S. Postal Inspection Service for an elder fraud prevention seminar a local church had hosted. Participants heard about common fraud scripts and tell-tale signs of a scam as well as the types of cases SDTX prosecutes, the limits of prosecution and the importance of sharing information about fraud schemes to try to prevent victimization. Several church members who had been victimized by telemarketing scams also shared their stories. Another similar seminar is expected in the future.
In addition, on July 16, SDTX personnel will join the Treasury Inspector General for Tax Administration for a joint presentation at another local church. Again, the focus of the presentation will be common fraud scripts and tell-tale signs of a scam as well as what to do if you or a loved one has fallen victim to a scam.
The SDTX is part of the Transnational Elder Fraud Task Force which marshals federal and state agencies working collaboratively to investigate and prosecute foreign-based schemes that target older Americans. In addition to aggressively investigating the individuals, organizations and networks responsible for these crimes, this initiative provides the public with information to guard against the most common schemes, like tech support fraud and romance scams.
Using one scam to perpetrate or conceal another, some fraudsters rely on money mules to move the proceeds of their illegal activity. Preying on the good will or financial vulnerability of their targets, scammers recruit people, many times older victims, to participate in schemes to move money in ways that avoid notice. The Money Mule Initiative identifies and addresses money mule activity to disrupt these fraud schemes, and helps people to recognize and avoid participation in perpetuating fraud.
To help older individuals and their families identify and avoid fraudulent activity, the Justice Department provides Senior Scam Alerts with information about the tactics used in specific schemes. For example, in Social Security Administration impostor schemes, scammers impersonate government administrators and falsely report suspicious activity to request that the victims provide their Social Security number for confirmation. In tech support scams, fraudsters contact victims, sometimes through internet pop-up messages, to warn about non-existent computer problems, ask that the victim give them remote access to their computer to “confirm” the non-existent problem, then demand large sums of money for unnecessary services. In lottery scams, telemarketers falsely notify victims that they have won a sweepstakes and tell them they must first pay fees for shipping, insurance, customs duties or taxes before they can claim their prizes.
To learn more about the department’s elder justice efforts please visit the Elder Justice Initiative page.
To report elder fraud, contact the dedicated National Elder Fraud Hotline at 1-833-FRAUD-11 or 1-833-372-8311 and visit the FBI’s IC3 Elder Fraud Complaint Center at IC3.gov.
Mobridge Man Sentenced for Failure to Register as a Sex OffenderRead the Press Release
ABERDEEN - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Charles B. Kornmann has sentenced a Mobridge, South Dakota, man convicted of Failure to Register as a Sex Offender. The sentencing took place on June 10, 2024.
Brandon James Noisy Hawk, age 42, was sentenced to 20 months in federal prison, followed by five years of supervised release, and ordered to pay a special assessment to the Federal Crime Victims Fund in the amount of $100.
Noisy Hawk was indicted by a federal grand jury in January of 2024. He pleaded guilty on March 18, 2024.
Noisy Hawk is required to register as a sex offender under federal law for sexually abusing a 13-year-old-girl. This is his fourth conviction for failure to register as a sex offender. Following his last release from prison, Noisy Hawk registered a primary residence with the Mobridge Police Department. Noisy Hawk failed to verify his address as required in October of 2023 and moved out of his home in November of 2023. Noisy Hawk only updated his address following his arrest on state charges on December 4, 2023.
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 https://www.justice.gov/psc.
This case was investigated by the U.S. Marshals Service. Assistant U.S. Attorney Carl Thunem prosecuted the case.
Noisy Hawk was immediately remanded to the custody of the U.S. Marshals Service.
Kyle Man Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Karen Schrier, has sentenced a Kyle, South Dakota, man convicted of Conspiracy to Distribute Methamphetamine. The sentencing took place on June 7, 2024.
Evan Brown Bull, age 38, was sentenced to 33 years and four months in federal prison, followed by five years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Brown Bull was indicted by a federal grand jury in July of 2023. The defendant was convicted following a three-day jury trial in federal district court in Rapid City, South Dakota. The verdict was returned on March 8, 2024.
Evidence at trial established that between 2016 and 2023, Brown Bull conspired with others to distribute methamphetamine on the Pine Ridge Indian Reservation and throughout Rapid City. Brown Bull was seen on video participating in four controlled buys, where he was selling methamphetamine to a confidential informant. Chat records obtained also detailed multiple methamphetamine deals and demonstrated the conspiracy in which Brown Bull was involved.
This case was investigated by the Badlands Safe Trails Drug Enforcement Task Force, which is comprised of agents from the FBI, South Dakota Division of Criminal Investigation, Bureau of Indian Affairs Division of Drug Enforcement, Martin Police Department, and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
Brown Bull was immediately remanded to the custody of the U.S. Marshals Service.
Fort Thompson Man Sentenced to Federal Prison for Abusive Sexual Contact of a ChildRead the Press Release
PIERRE - United States Attorney Alison J. Ramsdell announced today that Chief Judge Roberto A. Lange, U.S. District Court, has sentenced a Fort Thompson, South Dakota, man convicted of Abusive Sexual Contact of a Child by Force. The sentencing took place on June 10, 2024.
Earlwyn Makes Room For Them, age 28, was sentenced to 15 years in federal prison, followed by five years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Makes Room For Them was indicted by a federal grand jury in January of 2023. The defendant pleaded guilty in May of 2024.
In 2014, Makes Room For Them repeatedly abused a young girl living in the same home in Fort Thompson, within the Crow Creek Reservation. Makes Room For Them forced the young victim, who was under age 12, to touch his genitalia. Makes Room For Them also forced his hand down the young victim’s pants and touched her groin.
This matter was prosecuted by the U.S. Attorney’s Office because the Major Crimes Act, a federal statute, mandates that certain violent crimes alleged to have occurred in Indian Country be prosecuted in Federal court as opposed to State court.
This case was investigated by the FBI. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
Makes Room For Them was immediately remanded to the custody of the U.S. Marshals Service.
Eastern District U.S. Attorney's Office Recognizes World Elder Abuse Awareness DayRead the Press Release
MUSKOGEE, OKLAHOMA – Christopher J. Wilson, U.S. Attorney for the Eastern District of Oklahoma, joined national, state, local, and Tribal leaders today in recognizing World Elder Abuse Awareness Day (WEAAD). Since 2006, WEAAD has been commemorated to promote awareness and increases understanding of the many forms of elder abuse as well as the resources available to those at risk.
Highlighting the partnership between law enforcement and the public, U.S. Attorney Wilson emphasized the importance of awareness and education.
“Fraud, financial exploitation, and elder abuse are each uniquely devastating to a senior’s well-being and independence,” said U.S. Attorney Christopher J. Wilson. “The United States Attorney’s Office is committed to combatting the many forms of elder abuse, and to educating and equipping seniors, together with their family and friends, on how to recognize and avoid common schemes and patterns of abuse.”
Elder abuse is an act that knowingly, intentionally, or negligently causes or creates a serious risk of harm to an older person by a family member, caregiver, or other person in a trust relationship. Such harm may be financial, physical, sexual, or psychological. The Justice Department maintains a variety of programs and initiatives to combat elder abuse.
The Transnational Elder Fraud Strike Force marshals federal and state agencies working collaboratively to investigate and prosecute foreign-based schemes that target older Americans. In addition to aggressively investigating the individuals, organizations, and networks responsible for these crimes, this initiative provides the public with information to guard against both traditional scams, like tech support fraud, as well as trending schemes, such as romance scams.
Using one scam to perpetrate or conceal another, some fraudsters rely on money mules to move the proceeds of their illegal activity. Preying on the good will or financial vulnerability of their targets, scammers recruit people, many times older victims, to participate in schemes to move money in ways that avoid notice. The Money Mule Initiative identifies and addresses money mule activity to disrupt these fraud schemes, and helps people to recognize and avoid participation in perpetuating fraud.
To help older individuals and their families identify and avoid fraudulent activity, the Justice Department provides Senior Scam Alerts with information about the tactics used in specific schemes. For example:
• In Social Security Administration Impostor schemes, scammers impersonate government administrators and falsely reporting suspicious activity to request that the victims provide their Social Security number for confirmation.
• In Tech Support scams, fraudsters contact victims, sometimes through internet pop-up messages, to warn about non-existent computer problems, ask that the victim give them remote access to their computer, and identify a non-existent problem, then demand large sums of money for unnecessary services.
• In Lottery scams, telemarketers falsely notify victims that they have won a sweepstakes and tell them they must first pay fees for shipping, insurance, customs duties, or taxes before they can claim their prizes.
To learn more about the department’s elder justice efforts please visit the Elder Justice Initiative (EJI) page.
The Eastern District of Oklahoma continues to work with federal, state, local, and Tribal law enforcement partners to investigate and prosecute elder abuse crimes.
To report elder fraud, contact the dedicated National Elder Fraud Hotline at 1-833-FRAUD-11 or 1-833-372-8311, and visit the FBI’s Internet Crime Complaint Center (IC3) Elder Fraud Complaint Page at IC3.gov.
District of South Dakota Recognizes World Elder Abuse Awareness DayRead the Press Release
SIOUX FALLS - Alison J. Ramsdell, U.S. Attorney for the District of South Dakota, will join national, state, local, and tribal leaders in recognizing World Elder Abuse Awareness Day (WEAAD) on June 15, 2024. Since 2006, WEAAD has been commemorated to promote awareness and increases understanding of the many forms of elder abuse as well as the resources available to those at risk.
Highlighting the partnership between law enforcement and the public, U.S. Attorney Ramsdell emphasized the importance of awareness and education.
“A recent study found that one in ten older Americans are victims of some form of elder abuse each year,” noted U.S. Attorney Ramsdell. “In observance of World Elder Abuse Awareness Day, the District of South Dakota reaffirms its commitment to working with federal, tribal, state, and local community partners to bring an end to elder abuse in all forms. The U.S. Attorney’s Office for the District of South Dakota will continue to use all available tools to prevent and combat elder abuse, neglect, and exploitation.”
Elder abuse is an act that knowingly, intentionally, or negligently causes or creates a serious risk of harm to an older person by a family member, caregiver, or other person in a trust relationship. Such harm may be financial, physical, sexual, or psychological. The Justice Department maintains a variety of programs and initiatives to combat elder abuse.
The Transnational Elder Fraud Task Force marshals federal and state agencies working collaboratively to investigate and prosecute foreign-based schemes that target older Americans. In addition to aggressively investigating the individuals, organizations, and networks responsible for these crimes, this initiative provides the public with information to guard against both traditional scams, like tech support fraud, as well as trending schemes, such as romance scams.
Using one scam to perpetrate or conceal another, some fraudsters rely on money mules to move the proceeds of their illegal activity. Preying on the good will or financial vulnerability of their targets, scammers recruit people, many times older victims, to participate in schemes to move money in ways that avoid notice. The Money Mule Initiative identifies and addresses money mule activity to disrupt these fraud schemes, and helps people to recognize and avoid participation in perpetuating fraud.
To help older individuals and their families identify and avoid fraudulent activity, the Justice Department provides Senior Scam Alerts with information about the tactics used in specific schemes. Common scams include the following:
- Romance Scams, scammers use dating sites, social networking sites, and chat rooms to meet potential victims. They create fake profiles to build online relationships and eventually convince people to send money in the name of love. Some even make wedding plans before disappearing with the money. An online love interest who asks for money is almost certainly a scam artist.
- Social Security Administration Impostor Scams. Scammers impersonate government administrators and falsely report suspicious activity to request that the victims provide their Social Security number for confirmation.
- Tech Support Scams. Fraudsters contact victims, sometimes through internet pop-up messages, to warn about non-existent computer problems, ask that the victim give them remote access to their computer, and identify a non-existent problem, then demand large sums of money for unnecessary services.
- Lottery Scams. Telemarketers falsely notify victims that they have won a sweepstakes and tell them they must first pay fees for shipping, insurance, customs duties, or taxes before they can claim their prizes.
- IRS Scams. Callers claim to be employees of the IRS and tell victims they owe money to the IRS, which must be paid promptly through a wire transfer or stored value card such as a gift card. Victims who refuse to cooperate are threatened with arrest, deportation, or suspension of a business or driver’s license.
To learn more about the Department’s elder justice efforts, please visit the Elder Justice Initiative page. To report elder fraud, contact the dedicated National Elder Fraud Hotline at 1-833-FRAUD-11 or 1-833-372-8311 or visit the FBI’s IC3 Elder Fraud Complaint Center at IC3.gov.
Acting United States Attorney Joshua S. Levy Recognizes World Elder Abuse Awareness DayRead the Press Release
BOSTON – In observation of World Elder Abuse Awareness Day (WEAAD), Acting United States Attorney Joshua S. Levy touted the District of Massachusetts’ ongoing commitment to protect older Americans in the fight against elder abuse, neglect and financial exploitation. Since 2006, WEAAD has been commemorated to promote awareness and increases understanding of the many forms of elder abuse as well as the resources available to those at risk. Highlighting the partnership between law enforcement and the public, Acting U.S. Attorney Levy emphasized the importance of awareness and education.
“Millions of adults aged 60 and older become victims of abuse every year – with nearly one in 10 annually experiencing some form of elder abuse, neglect and financial exploitation,” said Acting U.S. Attorney Levy. “Protecting seniors from abuse and exploitation is one of our top priorities. Our office has successfully prosecuted a number of individuals in recent years who have preyed on this vulnerable population through financial scams. We remain relentless in this fight for elder justice, and we will continue to work with our federal, state and local law enforcement and community partners to hold people accountable for such misconduct and recover stolen funds whenever possible.”
Elder abuse is an act that knowingly, intentionally, or negligently causes or creates a serious risk of harm to an older person by a family member, caregiver, or other person in a trust relationship. Such harm may be financial, physical, sexual, or psychological. The Justice Department maintains a variety of programs and initiatives to combat elder abuse.
Earlier this year, Chukwunonso “Douglas” Umegbo, a/k/a James Abbott, a/k/a Michael Philips, a/k/a Richard Armani, 39, formerly of New Bedford, Mass. was sentenced to more than three years in prison for wire fraud and money laundering charges involving funds obtained from “romance scam” victims. From 2018 through 2019, Umegbo used fake identity documents to open bank accounts in the greater Boston area, which he used to receive more than $568,000 from at least 45 romance scam victims. Among them was a senior who fell victim to the scheme following the loss of her husband of 57 years and lost her car, house and retirement savings to the fraud scam.
In honor of this year’s WEAAD, the U.S. Attorney’s Office for the District of Massachusetts has developed an Elder Justice Outreach Prevention Program aimed at bringing awareness, education and resources to older adults across Massachusetts in partnership with local police departments and older adult centers. A team made up of members from the U.S. Attorney’s Office, the IRS and USPIS who travel across the state, educating older adults about heightened awareness in the areas of online scams; romance scams; contractor scams; and telemarketing scams, to name a few.
Yesterday, Acting U.S. Attorney Levy spoke to over 500 hundred older adults alongside Bristol County District Attorney Tom Quinn at the Bristol County Celebration of Seniors about important information they need to protect themselves from financial exploitation and how to report elder fraud.
The Transnational Elder Fraud Task Force marshals federal and state agencies working collaboratively to investigate and prosecute foreign-based schemes that target older Americans. In addition to aggressively investigating the individuals, organizations and networks responsible for these crimes, this initiative provides the public with information to guard against both traditional scams, like tech support fraud, as well as trending schemes, such as romance scams.
Using one scam to perpetrate or conceal another, some fraudsters rely on money mules to move the proceeds of their illegal activity. Preying on the good will or financial vulnerability of their targets, scammers recruit people, many times older victims, to participate in schemes to move money in ways that avoid notice. The Money Mule Initiative identifies and addresses money mule activity to disrupt these fraud schemes, and helps people to recognize and avoid participation in perpetuating fraud.
To help older individuals and their families identify and avoid fraudulent activity, the Justice Department provides Senior Scam Alerts with information about the tactics used in specific schemes. For example, in Social Security Administration Impostor schemes, scammers impersonate government administrators and falsely reporting suspicious activity to request that the victims provide their Social Security number for confirmation. In Tech Support scams, fraudsters contact victims, sometimes through internet pop-up messages, to warn about non-existent computer problems, ask that the victim give them remote access to their computer, and identify a non-existent problem, then demand large sums of money for unnecessary services. In lottery scams, telemarketers falsely notify victims that they have won a sweepstakes and tell them they must first pay fees for shipping, insurance, customs duties, or taxes before they can claim their prizes.
For more information and resources from the Department of Justice’s Elder Justice Initiative, please visit https://www.justice.gov/elderjustice.
If you need assistance or to report elder abuse, please contact your local adult protective services agency through the Eldercare Locator or by call the helpline at 1-800-677-1116 Monday – Friday 9am – 8pm EST. To report elder fraud, please visit the FBI’s IC3 Elder Fraud Complaint Center or contact the dedicated National Elder Fraud Hotline at 833–FRAUD–11 or 833–372–8311 Monday – Friday, 10am – 6pm EST.
Friday 14 June 2024
Westville Couple Sentenced for Sexual Assault and Coercion and Enticement of A Minor in Indian CountryRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that a Westville, Oklahoma, couple were sentenced for sexual offenses they committed against minors in Indian country.
Robert Lee Catron, age 36, was sentenced on June 11, 2024, to 30 years in prison for one count of Aggravated Sexual Abuse of a Minor in Indian Country. According to investigators, between 2020 and 2022, Catron sexually assaulted a child he knew to be under the age of 12.
Jenny Marie Locust, age 39, was sentenced on June 4, 2024, to 10 years in prison for one count of Enticement and Coercion of a Minor. According to investigators, between 2021 and 2022, Locust used her cell phone to entice and coerce a child under the age of 18 to engage in sexual activity with her boyfriend, Robert Lee Catron.
The crimes occurred in Adair County, within the boundaries of the Cherokee Nation Reservation, in the Eastern District of Oklahoma.
Both Catron and Locust will be required to register and comply with the Sex Offender Registration and Notification Act upon release.
The charges arose from an investigation by the Federal Bureau of Investigation and the Westville Police Department.
“I'm extremely grateful for the collaborative effort that brought these defendants to justice for their detestable crimes,” said Acting Special Agent in Charge Jason Kaplan of the FBI Oklahoma City Field Office. “The significant sentences handed down in this case should send a clear message to child predators that law enforcement will aggressively pursue them, even when the abuse is disclosed years after it occurs.”
“Together, Catron and Locust committed horrifying crimes, transgressing every rule of decency our society has set up to protect children,” said United States Attorney Christopher J. Wilson. “There can be no tolerance for those who would visit such evil upon children, and this office will not relent in its pursuit of such perpetrators.”
The Honorable Ronald A. White, Chief U.S. District Judge in the United States District Court for the Eastern District of Oklahoma presided over the hearings. Catron and Locust will remain in custody of the U.S. Marshal pending transportation to a designated United States Bureau of Prisons facility to serve their non-paroleable sentences of incarceration.
Assistant United States Attorney Nicole Paladino represented the United States.
Western District of Washington recognizes World Elder Abuse Awareness DayRead the Press Release
Seattle – U.S. Attorney Tessa M. Gorman for the Western District of Washington, joined national, state, local, and Tribal leaders today in recognizing World Elder Abuse Awareness Day (WEAAD). Since 2006, WEAAD has been commemorated to promote awareness and increases understanding of the many forms of elder abuse as well as the resources available to those at risk.
Highlighting the partnership between law enforcement and the public, U.S. Attorney Gorman emphasized the importance of awareness and education.
“Our Elder Fraud Coordinator and an investigator for the FBI are presenting in area retirement homes and community centers to provide important warnings to protect residents from fraud,” said U.S. Attorney Gorman. “With so many fraudsters using the internet, social media or phones to hunt for their prey, we all need to be vigilant to keep those we care about from falling victim to financial scams.”
Elder abuse is an act that knowingly, intentionally, or negligently causes or creates a serious risk of harm to an older person by a family member, caregiver, or other person in a trust relationship. Such harm may be financial, physical, sexual, or psychological. The Justice Department maintains a variety of programs and initiatives to combat elder abuse.
The Transnational Elder Fraud Task Force marshals federal and state agencies working collaboratively to investigate and prosecute foreign-based schemes that target older Americans. In addition to aggressively investigating the individuals, organizations, and networks responsible for these crimes, this initiative provides the public with information to guard against both traditional scams, like tech support fraud, as well as trending schemes, such as romance scams.
Using one scam to perpetrate or conceal another, some fraudsters rely on money mules to move the proceeds of their illegal activity. Preying on the good will or financial vulnerability of their targets, scammers recruit people, many times older victims, to participate in schemes to move money in ways that avoid notice. The Money Mule Initiative identifies and addresses money mule activity to disrupt these fraud schemes, and helps people to recognize and avoid participation in perpetuating fraud.
To help older individuals and their families identify and avoid fraudulent activity, the Justice Department provides Senior Scam Alerts with information about the tactics used in specific schemes. For example, in Social Security Administration Impostor schemes, scammers impersonate government administrators and falsely reporting suspicious activity to request that the victims provide their Social Security number for confirmation. In Tech Support scams, fraudsters contact victims, sometimes through internet pop-up messages, to warn about non-existent computer problems, ask that the victim give them remote access to their computer, and identify a non-existent problem, then demand large sums of money for unnecessary services. In Lottery scams, telemarketers falsely notify victims that they have won a sweepstakes and tell them they must first pay fees for shipping, insurance, customs duties, or taxes before they can claim their prizes. In contractor frauds, workers knock on the door of an elderly victim and claim the victim’s home needs repair. The workers demand payment for work and supplies, but they either perform no or sub-par work before disappearing with the money.
To learn more about the department’s elder justice efforts please visit the Elder Justice Initiative page.
The Western District of Washington continues to work with federal, state, local, and Tribal law enforcement partners to investigate and prosecute elder abuse crimes.
This year we prosecuted a former bank manager who stole from the accounts of elderly customers and last year prosecuted a so-called “money mule” who played a role in stealing funds from elderly victims. Also in 2023 we prosecuted an unlicensed investment advisor who stole the funds of his investors – many of them elderly.
To report elder fraud, contact the dedicated National Elder Fraud Hotline at 1-833-FRAUD-11 or 1-833-372-8311 and visit the FBI’s IC3 Elder Fraud Complaint Center at IC3.gov.
Washington man caught at Arlington mall pleads guilty to federal drug and firearms chargesRead the Press Release
ALEXANDRIA, Va. – A Washington man pled guilty today to possession with intent to distribute fentanyl and possession of a firearm in a drug trafficking crime.
According to court documents, on Sept. 6, 2023, while conducting vehicle checks at the Pentagon City Fashion Centre garage, an Arlington County Police officer observed a vehicle speeding through the garage before parking in a handicap spot without a handicap sticker. The vehicle was registered to Willie Gene Thorne, 29, who had at least one outstanding arrest warrant from Pennsylvania.
The officer inspected the vehicle and noticed a patch of aluminum foil with burn marks, a large bag of a white, powdery substance, two straws and a plastic bag containing several small baggies. The officer called for additional officers to assist.
When Thorne returned to his vehicle, he initially resisted arrest before complying when threatened with a taser. In his waistband, Thorne had a loaded, stolen 9mm handgun. A search of the vehicle revealed, among other items, a bag containing 91 grams of fentanyl, a digital scale, a razor blade, and approximately 84 baggies. Thorne also had a straw with residue and approximately 100 baggies in his pants pocket.
Thorne is scheduled to be sentenced on Sept. 6 and faces a mandatory minimum of five years and up to life in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Jarod Forget, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Division; and Charles “Andy” Penn, Arlington County Chief of Police, made the announcement after Senior U.S. District Judge Claude M. Hilton accepted the plea.
Special Assistant U.S. Attorney Christopher M. Carter is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:24-cr-123.
Washington County Sex Offender Sentenced to 15 Years for Child Pornography OffensesRead the Press Release
ALBANY, NEW YORK – Kevin Smurphat, age 35, of Whitehall, New York, was sentenced today to 15 years of imprisonment, to be followed by 15 years of supervised release, for possessing, receiving, distributing, and transporting child pornography.
United States Attorney Carla B. Freedman and Craig L. Tremaroli, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), made the announcement.
As part of his guilty plea, Smurphat, a previously convicted sex offender, admitted that while on state parole in early November 2020, he used a cellphone to upload, to a file-hosting service, depictions of minors engaged in sexually explicit conduct and that he joined a group chat where he distributed child pornography to other individuals and received child pornography as well.
In addition to the imprisonment and supervised release terms, Smurphat was ordered to pay a total of $7,000 in restitution to his victims.
The FBI investigated the case as part of Project Safe Childhood. Assistant United States Attorney Dustin C. Segovia prosecuted the case.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state, and local resources to better locates, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Warren County Sex Offender Sentenced to 137 Months on Child Pornography ConvictionRead the Press Release
ALBANY, NEW YORK – Peter Bratis, age 44, of Chestertown, New York, was sentenced today to 137 months in prison for possessing child pornography with a prior conviction for abusive sexual conduct involving a minor.
United States Attorney Carla B. Freedman and Matthew Scarpino, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI), made the announcement.
In pleading guilty, Bratis admitted to using a Google Drive account to store images depicting minors engaged in sexually explicit conduct between February 24, 201 and August 4, 2022. Bratis had previously been convicted in Warren County Court of an offense involving abusive sexual conduct of a minor, specifically rape in the second degree. Bratis has been in custody since his arrest on August 25, 2022.
Chief United States District Judge Brenda K. Sannes also sentenced Bratis to 25 years of supervised release following his term of imprisonment. Bratis will continue to be required to register as a sex offender upon his release from prison.
HSI investigated this case. Assistant U.S. Attorneys Emmet O’Hanlon and Joseph Hartunian prosecuted this case as part of Project Safe Childhood.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorney’s offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), and is designed to marshal federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.