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Newest first across public DOJ and U.S. Attorney press releases.
7 June 2024
North Carolina Man Sentenced to 240 months for Possessing with Intent to Distribute Cocaine and Illegally Possessing FirearmRead the Press Release
MOBILE, AL – Preston Buie was sentenced by a federal judge to a total of 240 months incarceration after a January 2024 jury conviction for Possession with Intent to Distribute Cocaine and Illegally Possessing a Firearm.
According to court documents and evidence presented at trial, in January 2023, a deputy with the Mobile County Sheriff’s Office stopped Preston Buie on Interstate 10 around the Grand Bay exit in Mobile County. Following an alert by a drug detection dog, law enforcement searched Buie’s vehicle and located 12 kilograms of cocaine and a 9mm pistol in Buie’s possession. Buie was previously convicted of several federal offenses including bank robbery and possession with intent to distribute cocaine.
U.S. Attorney Sean Costello of the Southern District of Alabama made the announcement.
The Department of Homeland Security, Homeland Security Investigations and the Mobile County Sheriff’s Office investigated the case.
Assistant U.S. Attorneys Tandice Blackwood, Kacey Chappelear, and Beth Stepan prosecuted the case on behalf of the United States.
Norman Man to Serve Five Years in Federal Prison for Illegal Firearm PossessionRead the Press Release
OKLAHOMA CITY – ANDREW LINTON SAWYERS, 60, of Norman, has been sentenced to serve 60 months in federal prison for illegally possessing a firearm after a prior felony conviction, announced U.S. Attorney Robert J. Troester.
On August 16, 2023, a federal grand jury charged Sawyers with being a felon in possession of a firearm. According to the public record, on October 30, 2022, Norman Police Department (NPD) officers responded to a welfare check at an apartment, where they learned that Sawyers had pointed a pistol at his girlfriend. Although Sawyers had left the residence before authorities arrived, he was arrested a short time later by NPD officers, who found a pistol in his waistband. At that time, Sawyers had been previously convicted of multiple felonies, including Florida convictions for armed home invasion and kidnapping, and Oklahoma convictions for possession of firearms after a felony conviction and endangering others while eluding or attempting to elude a police officer.
On October 23, 2023, Sawyers pleaded guilty to illegally possessing the firearm, despite his criminal record.
At Sawyers’ sentencing hearing on June 3, 2024, U.S. District Judge Patrick R. Wyrick sentenced Sawyers to serve 60 months in federal prison, followed by three years of supervised release. In announcing his sentence, Judge Wyrick noted the circumstances of the offense and Sawyers’ criminal history. At sentencing, the government also introduced evidence that, in July 2023, Sawyers had threatened to kill a state prosecutor.
This case is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Norman Police Department. Assistant U.S. Attorney Mary E. Walters prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a Department of Justice program to reduce violent crime. In October 2017, the Department announced the reinvigoration of PSN and directed U.S. Attorney’s Offices to develop crime-reduction strategies that incorporate lessons federal law enforcement has learned since the program’s launch in 2001. This case is also part of “Operation 922,” the Western District of Oklahoma’s implementation of PSN, which prioritizes prosecution of federal crimes connected to domestic violence. For more information about PSN, please visit https://justice.gov/psn and https://justice.gov/usao-wdok.
Reference is made to public filings for additional information.
New Orleans Man Sentenced for Federal Gun and Drug OffensesRead the Press Release
NEW ORLEANS, LOUISIANA – DATAYNA HOWARD (“HOWARD”), age 22, of New Orleans, was sentenced on June 5, 2024 by U.S. District Judge Ivan L.R. Lemelle to 122 months in prison, followed by 3 years of supervised release, along with a $400 mandatory special assessment fee, after previously pleading guilty to two counts of possession with intent to distribute controlled substances, in violation of Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(C), and 841(b)(1)(D), and two counts of possession of a firearm in furtherance of a drug trafficking crime, in violation of Title 18, United States Code, Section 924(c).
According to court documents, on January 19, 2022, HOWARD was arrested at the Oakwood Shopping Center in Gretna, Louisiana, in possession of fentanyl, marijuana, drug trafficking supplies, and two loaded handguns. On June 8, 2023, law enforcement executed a search warrant at HOWARD’s residence in New Orleans. HOWARD possessed over 700 tapentadol pills, marijuana, drug trafficking supplies, three handguns, and additional ammunition.
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 Federal Bureau of Investigation, the Jefferson Parish Sheriff’s Office, and the New Orleans Police Department. It is being prosecuted by Assistant United States Attorney David Berman of the Violent Crime Unit.
New Jersey Man Sentenced for Wire Fraud Kickback Conspiracy and Tax EvasionRead the Press Release
ALBANY, NEW YORK – Juller Perez Salcedo, age 45, of Garfield, New Jersey, was sentenced today to three years of probation, including 6 months of home detention, for conspiring to commit wire fraud and honest services fraud, and for tax evasion.
United States Attorney Carla B. Freedman; Craig L. Tremaroli, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI); and Jenifer L. Piovesan, Special Agent in Charge of the Newark Field Office of Internal Revenue Service – Criminal Investigation (IRS-CI), made the announcement.
As part of his prior guilty plea, Perez Salcedo admitted that from at least 2015 to 2019, he co-owned a trucking company in New Jersey that transported products as a third-party contractor for a bedding company with a distribution facility in West Coxsackie, New York. As part of the fraudulent scheme, Perez paid kickbacks to the transportation manager of the bedding company, Leonard Hummel, in exchange for the use of the bedding company’s trucks and drivers to transport merchandise from West Coxsackie to Perez’s truck yard in Clifton, New Jersey, which allowed Perez to avoid certain transportation costs. Perez then fraudulently invoiced and received payment from the bedding company as if his trucking company had transported and delivered the merchandise from West Coxsackie when Perez and his trucking company did not in fact transport the merchandise from West Coxsackie. As a result of the scheme, Perez caused $422,170.86 in losses to the bedding company.
Perez also evaded taxes between January 2014 and April 2018 by cashing gross receipts checks on behalf of his trucking business, providing false and incomplete information to tax preparers and omitting the cashed checks, and filing false federal income tax returns. Perez Salcedo evaded a total of $477,090 in taxes.
United States District Judge Mae A. D’Agostino also ordered Perez to pay $422,170.86 in restitution to the bedding company, and $477,090.00 to the IRS, and separately ordered forfeiture of a money judgment totaling $422,170.86 in proceeds derived from the fraud.
Hummel previously pled guilty and was sentenced on May 17, 2024, to two years of probation for conspiring to commit wire fraud and honest services fraud. Judge D’Agostino also ordered Hummel to pay $161,784 in restitution to the bedding company and ordered forfeiture of a money judgment totaling $17,000.
The FBI and IRS-CI investigated the case. Assistant U.S. Attorney Alexander Wentworth-Ping prosecuted the case.
New Haven Man Charged with Operating Illegal Money Transmitting BusinessRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, and Ketty Larco-Ward, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division, today announced that a federal grand jury in New Haven has returned an indictment charging WILLIAM McNEILLY, 55, of New Haven, with operating an unlicensed money transmitting business.
The indictment was returned on June 5, 2024, and McNeilly was arrested yesterday. He appeared before U.S. Magistrate Judge Maria E. Garcia in New Haven, pleaded not guilty, and was released on a $50,000 bond.
The indictment alleges that McNeilly owned and operated Global Income Marketplace LLC (“GIM”) from a storefront in West Haven. According to its Connecticut state registration, GIM was engaged in “website builders programming tech computer repairs and upgrades.” McNeilly and another individual also operated Global NuMedia LLC (“GNM”), a limited liability company registered in Delaware. McNeilly, who never obtained a license from the Connecticut Department of Banking to engage in the business of money transmission, opened up several bank accounts in the names of GIM and GNM, and a cryptocurrency exchange account in the name of GNM, and used the accounts to operate a business through which he exchanged customers’ cash, checks, and money orders for cryptocurrency, charging a fee for the service.
Between approximately July 2019 and June 2022, McNeilly exchanged more than $1 million in U.S. currency for cryptocurrency on behalf of customers throughout the U.S. McNeilly knew that some of the funds involved in his illegal business were derived from fraud schemes, and the investigation revealed that cashiers checks from victims of romance fraud schemes were mailed to GIM and deposited into GIM accounts.
It is further alleged that, in February 2021, McNeilly was contacted by TD Bank and told that a $10,000 wire transfer to GNM was reported as fraudulent, and that he needed a license to operate a money transmission business. Despite the warning, and that TD Bank closed the GIM and GNM accounts, McNeilly continued to operate his money transmission business through other GIM and GNM bank accounts.
The indictment charges McNeilly with one count of operating an unlicensed money transmitting business, an offense that carries a maximum term of imprisonment of five years, and with three counts of making illegal money transactions, an offense that carries a maximum term of imprisonment of 10 years on each count.
U.S. Attorney Avery stressed that an indictment is not evidence of guilt. Charges are only allegations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the U.S. Postal Inspection Service and prosecuted by Assistant U.S. Attorney Heather L. Cherry.
New Bedford Man Charged with Stealing over $450,000 in Veterans’ Disability BenefitsRead the Press Release
BOSTON – A New Bedford man has been charged with stealing over $450,000 in disability benefits issued by the United States Veterans Benefits Administration (VBA) intended for a 20-year veteran of the United States Marine Corps suffering from Amyotrophic Lateral Sclerosis (ALS).
Joseph Smith, 71, was charged with one count of theft of government benefits and one count of conspiracy to steal government benefits. Smith is currently in custody on unrelated charges and will appear in federal court in Boston at 12:30 p.m. on June 11, 2024.
According to the charging documents, shortly after the victim’s ALS diagnosis in August 2015, the VBA approved the victim’s application for disability benefits and awarded him approximately $8,318 in monthly payments. The VBA began issuing payments in September 2015 via monthly checks mailed to the victim’s former residence in New Bedford, where he had resided with Smith’s relative and others prior to hospitalization.
It is alleged that between approximately 2015 and 2020, while the victim was hospitalized for ALS, Smith and others received monthly VBA disability checks intended for the victim and deposited those checks into bank accounts they controlled. Smith allegedly first deposited the disability checks into a bank account in his own name and then began depositing the checks into a bank account that he and others fraudulently opened in the name of victim. Shortly after depositing the disability checks, Smith allegedly withdrew the funds in cash and used the money for personal expenses.
In total, between in or around 2015 and 2020, Smith and others allegedly stole more than $450,000 in VBA disability benefits intended for the victim.
“80 years ago this week, incredibly brave members of our military stormed the beaches of Normandy to save Europe. Every citizen owes a debt of gratitude to the veterans who have served our country. It is beyond the pale to steal disability payments that were intended for a 20-year military veteran facing a life-threatening disease, as is alleged here. The immorality exposed by the criminal justice system is, at times, simply stunning,” said Acting United States Attorney Joshua S. Levy.
“It is difficult to imagine a financial crime more despicable than one alleged to have targeted a vulnerable member of our community. But targeting a vulnerable person who proudly served our nation is exactly that ‘difficult to imagine’ offense. The Postal Inspection Service, working with our law enforcement partners is committed to identifying these predators and bringing them to justice,” said Ketty D. Larco-Ward, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division.
“Our office is committed to holding accountable those who allegedly steal VA benefits intended for veterans with disabilities,” said Special Agent in Charge Christopher Algieri of the Department of Veterans Affairs Office of Inspector General’s Northeast Field Office. “We thank the U.S. Attorney’s Office and our law enforcement partners for their excellent work in pursuing justice in this case.”
“We will continue to pursue those who misuse the Social Security number and identities of others for their own personal and selfish gain,” said Gail S. Ennis, Inspector General for the Social Security Administration. “I thank our law enforcement partners for working with us in this investigation and the U.S. Attorney’s Office for their efforts in prosecuting this case and holding this individual accountable for their alleged conduct.”
The charge of theft of government benefits provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. The charge of conspiracy to steal government benefits provides for a sentence of up to five years in prison, three 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.
Acting U.S. Attorney Levy, USPIS INC Larco-Ward, VA-OIG SAC Algieri and SSA IG Ennis made the announcement today. Assistant U.S. Attorney Benjamin A. Saltzman of the Securities Financial & Cyber Fraud Unit is prosecuting the case.
The details contained in the charging document are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Muskogee Resident Sentenced for Federal Firearm ConvictionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Jesse Lee Fish, age 34, of Muskogee, Oklahoma, was sentenced to 46 months in prison for illegal possession of a firearm and ammunition.
The charges arose from investigations by the Muskogee Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
On October 31, 2023, Fish pleaded guilty to one count of Felon in Possession of Firearm and Ammunition. According to court documents, on April 4, 2023, Fish knowingly possessed a rifle and ammunition after having been previously convicted of a crime punishable by more than one year imprisonment.
The Honorable Ronald A. White, Chief Judge in the United States District Court for the Eastern District of Oklahoma, presided over the hearing. Fish will remain in custody of the U.S. Marshal pending transportation to a designated United States Bureau of Prisons facility to serve a non-paroleable sentence of incarceration.
Assistant United States Attorney Edith Singer represented the United States.
Mexican International Man Arrested on Child Sexual Abuse Material ChargesRead the Press Release
CONCORD – A Mexican International man who crossed into New Hampshire was arrested on a complaint charging federal child pornography offenses, U.S. Attorney Jane E. Young announces.
Jose Rodriguez-Garcia, 26, was charged with one count of transporting child sexual abuse material (CSAM) and one count of possessing CSAM. Rodriguez-Garcia is scheduled to appear in federal court in Concord later today.
According to the charging documents, on June 6, 2024, Rodriguez-Garcia and another man were observed by U.S. Border Patrol agents after having apparently just crossed from Canada into New Hampshire over Hall Stream in Pittsburg. The men were detained and brought to the Beecher Falls Border Station for processing. At that point, a search of Rodriguez-Garcia’s person and property yielded several electronic media, including a thumb drive on which depictions of apparent CSAM were found.
The charge of transporting CSAM provides a mandatory minimum sentence of 5 years. Both charges provide a sentence of no greater than 20 years in prison, at least 5 years of supervised release, a fine of $250,000 and mandatory restitution. 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 investigation was led by Homeland Security Investigations within the United States Department of Homeland Security and the U.S. Border Patrol. Assistant U.S. Attorney Charles L. Rombeau is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
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Memphis Men Indicted in String of 2023 Bank RobberiesRead the Press Release
Memphis, TN – A federal grand jury in the Western District of Tennessee recently returned a multi-count indictment charging four men with conspiracy to commit bank robberies, and the commission of six bank robberies in the Memphis area. Robert Haley, 44, Devin Hinds, 34, Courtney Trenell, 32, and Monterrio Trenell, 28, were all indicted by a federal grand jury in April. All four men have been arrested. United States Attorney Kevin G. Ritz announced the unsealing of the indictment today.
The four men are charged in connection with the robberies of:
- First Horizon Bank, N. Watkins Street, on April 27, 2023
- Truist Bank, Poplar Avenue, on August 11, 2023
- First Horizon Bank, N. Germantown Parkway, on October 20, 2023
- Bank of Bartlett, Trinity Road, on October 20, 2023
- First Horizon Bank, N. Watkins Street, on October 25, 2023
- Independent Bank, Union Avenue, on December 22, 2023
United States Attorney Kevin Ritz said: “The alleged crimes in this indictment are serious, and they carry serious penalties. Our office will continue to work with law enforcement partners to double down on fighting violent crime with the federal tools available to us.”
“These indictments are a testament to the collaborative efforts between all levels of law enforcement to bring to justice those who perpetrate crimes in our community,” said Special Agent in Charge Douglas S. DePodesta of the Memphis Field Office of the Federal Bureau of Investigation. “It is the shared resolve of the FBI and our partners to keep our community safe and to continue to pursue those who commit crimes.”
If convicted on all counts, Hinds and Haley are facing sentences of up to life in prison and up to five years of supervised release; Courtney Trenell and Montarrio Trenell face sentences of five years in prison and up to three years of supervised release. All defendants face up to a $250,000 fine. This case is pending before Senior United States District Judge Jon P. McCalla in Memphis, Tennessee.
This case is being investigated by the Federal Bureau of Investigation’s Safe Streets Task Force and the Memphis Police Department. Anyone with additional information on this case is asked to contact CrimeStoppers at 901-528-2274.
The charges and allegations contained in the indictment are merely accusations of criminal conduct, not evidence. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt and convicted through due process of law.
Assistant United States Attorney Greg Wagner and Department of Justice Trial Attorney Aaron Henricks with the Violent Crime Initiative are prosecuting this case on behalf of the government.
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For more information, please contact the Media Relations Team at [email protected]. Follow the U.S. Attorney’s Office on Facebook or on X at @WDTNNews for office news and updates.
Man Who Assaulted His Paramour is Sentenced to 15 Years on Firearms OffensesRead the Press Release
WASHINGTON – Barrington Hart, 36, of Washington, D.C., was sentenced to 180 months in prison for two assaults on his romantic partner in July 2023. The announcement was made by U.S. Attorney Matthew Graves and Chief Pamela Smith, of the Metropolitan Police Department (MPD).
Hart was sentenced today by Superior Court Judge Jason Park to 15 years in prison, and five years of supervised release, for two counts of assault with a dangerous weapon (firearm), two counts of possession of a firearm during a crime of violence, one count of assault with significant bodily injury while armed, two counts of obstruction of justice, one count of threats, one count of unlawful possession of a firearm (prior conviction), one count of simple assault, and one count of carrying a pistol without a license. The sentence followed a trial by the court where Judge Park found Hart guilty of these charges on March 15, 2024.
According to the government’s evidence, Hart and the victim were in a previous romantic relationship, broke up, and then reunited for four days when, on July 27, 2023, they got into an argument over the victim’s phone. Hart accused the victim of cheating on him and wanted to look through her phone. After she refused, he became angry, retrieved a black and yellow gun, and hit the victim on the head with it, causing a laceration. Instead of taking her to a hospital for her injury, Hart made the victim come with him to a job interview while her head was still bleeding. She later went to the hospital alone and had the wound treated with nine staples to the top of her head. On August 4, 2023, less than a week after the victim reported the assault to the Metropolitan Police Department, the victim called the police again and reported that the night before, Hart started an argument about her seeing other people, slapped her, and pointed the same black and yellow firearm at her. Police arrested Hart on August 4, 2023, and he has been detained since that date.
After arrest, Hart continued to attempt to control the victim. He instructed her, twice, over Department of Corrections Video Visits, to refrain from testifying in the grand jury. Also, while incarcerated, Hart threatened the victim via numerous text messages, calling her names and using profanity.
In announcing the sentence, U.S. Attorney Graves and Chief Smith commended the work of those investigating the case from the Metropolitan Police Department. They acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorney Bryan Han, Paralegal Tiffany Jones, Victim/Witness Advocate Tracey Hawkins, and Victim/Witness Service Coordinator Shanika McCullough. Finally, they commended the work of Assistant U.S. Attorneys from the Domestic Violence unit, Callie Hyde and Katharine Yaske, who investigated and prosecuted the case.
Lookout Mountain Man Indicted for Sexual Exploitation of ChildrenRead the Press Release
CHATTANOOGA, Tenn. - On June 5, 2024, a federal grand jury in Knoxville returned a three-count indictment against James C. Thompson, 71, of Lookout Mountain, Tennessee, for transporting minors with the intent to engage in sexual activity. Thompson appeared in court today before the Honorable United States Magistrate Judge Christopher H. Steger and entered a plea of not guilty to the charges in the indictment. He is in custody pending trial, which has been set for August 12, 2024, in United States District Court, in Chattanooga, Tennessee, before the Honorable Travis R. McDonough, United States District Judge.
The indictment alleges that Thompson transported minors in interstate commerce intending to engage in sexual activity with them in November and September 2000.
If convicted, Thompson faces a maximum term of 15 years in prison, up to a $350,000 fine, and 3 years on supervised release.
U.S. Attorney Francis M. Hamilton III of the Eastern District of Tennessee made the announcement.
The FBI believes there may be additional victims and is attempting to identify them. Potential victims most likely include males who were between the ages of 10 and 15 and may have been involved in various youth wrestling programs or youth hunting organizations. They or anyone else who believes that they were victimized by Thompson, or anyone who may have information about potential victims fitting this description can contact the Chattanooga FBI Office at 423-265-3601 or report it at tips.fbi.gov.
This indictment is the result of an investigation by the Federal Bureau of Investigation, the Jackson County, Alabama Sheriff’s Office, and the Lookout Mountain, Tennessee Police Department.Assistant U.S. Attorney James Brooks represents the United States.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc or for more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Members of the public are reminded that an indictment constitutes only charges and that every person is presumed innocent until their guilt has been proven beyond a reasonable doubt.
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Lafayette Man Sentenced to Imprisonment term and ordered to pay $127,667 in RestitutionRead the Press Release
HAMMOND – Yesterday, Tyrus Veals, 30, of Lafayette, Indiana, was sentenced by United States District Court Judge Gretchen S. Lund after pleading guilty to Access Device Fraud, announced United States Attorney Clifford D. Johnson.
Veals was sentenced to 12 months and 1 day in prison followed by 2 years of supervised release. He was further ordered to pay restitution in the amount of $127,667 to the victims of the offense.
According to documents filed in the case, Veals used stolen debit card information to fraudulently obtain at least $127,667 from a bank account belonging to a retired Arizona couple. Veals connected the victims’ debit card to certain online gambling accounts he owned or controlled, enabling him to make regular withdrawals from the victims’ account over the course of approximately 6 months. Veals then moved the stolen funds out of his online gambling accounts in the form of cash withdrawals and deposits into a personal bank account. He ultimately spent the stolen funds on personal expenses including vacation travel and other big-ticket purchases. Veals’ conduct depleted the retirement savings of the victims, one of whom had retired after 40 years of public service.
This case was investigated by the Federal Bureau of Investigation with assistance from the Indiana Gaming Commission and the Purdue University Police Department. The case was prosecuted by Assistant United States Attorney Zachary D. Heater.
Justice Department Launches Access DOJRead the Press Release
The Justice Department announced the launch of Access DOJ, a new and innovative Department-wide initiative led by the Office for Access to Justice (ATJ) that will use human-centered design to improve access to Justice Department programs and services for all communities and stakeholders.
“The Access DOJ Initiative will provide a path for us to make the Justice Department’s services more accessible, effective, and efficient at meeting the needs of the diverse communities we serve,” said Acting Associate Attorney General Benjamin C. Mizer. “It will ensure that the Department, for the first time, has a localized hub of expertise focused on assisting components broadly with human-centered design practices.”
The Access DOJ Initiative will:
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Annually conduct high-impact projects in partnership with offices across the Justice Department to improve and streamline access to programs, services, and resources for the public;
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Provide resources, trainings, and hands-on coaching and support in methods like usability testing and writing with plain language; and
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Chair a newly launched community of practice with representatives from across the Justice Department to share successes and challenges and identify solutions to advance the work together.
“Access to Justice includes Access to the Department of Justice. In our public-facing materials, we must prioritize what makes sense for the people we serve, above technical nuances,” said ATJ Director Rachel Rossi. “This will require that lawyers and subject matter experts work with designers to get feedback from the public. We cannot be the judge of whether our materials are accessible and effective — only the people using our services can do that.”
Setting the groundwork for the launch of Access DOJ, ATJ has been partnering with Justice Department offices to employ human-centered design practices to simplify access to programs and services. This includes working with the Justice Department’s Office of the Pardon Attorney to revise the form people use to request a presidential pardon after finishing their sentence to restore their civil rights, regain their standing in the community, or improve their employment opportunities. The revisions were based on feedback from the public, usability testing, best practices in design, and access to justice research with the goal of reducing burdens on everyone involved — applicants and Justice Department staff — to promote both trust in government and fiscal responsibility.
The Access to Justice team also worked with the Office of the U.S. Trustees Program (USTP) to gather feedback on newly piloted virtual bankruptcy meetings. The partnership included engagement with legal aid providers in the pilot region who work with low-income and rural communities, leading to plans for development of a series of short videos of mock meetings to give people a preview of the meetings, demystify them, explain them in plain language, and reduce the psychological costs of going through the process unprepared.
ATJ hosted an event for Justice Department components to launch the initiative and encourage participation across the department. Additional Justice Department officials delivered remarks, including Director Steve Dettelbach of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), USTP Director Tara Twomey, and Deputy Pardon Attorney Kira Gillespie. The event also featured external experts who discussed their work using human-centered design and customer experience methodologies in other federal agencies as well as with state and local legal service organizations. This included Executive Director for Customer Experience Dana Chisnell of the Department of Homeland Security, the Executive Director of the Legal Design Lab at Stanford Law School Margaret Hagan, and the Managing Director of Contact Center and Customer Experience in the General Services Administration Centers of Excellence Lashanda Hodge.
The event also included a gallery walk with case studies and resources to further illustrate the concepts.
Access DOJ’s next high-impact project will focus on making it easier for communities to report actionable tips about crime or other violations of law to the department. Access DOJ will review reporting portals across the Department to ensure all communities can more effectively report crime to the department when necessary.
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Jury Convicts Man of Trafficking in Fentanyl and CarfentanilRead the Press Release
LEXINGTON, Ky. - A Lexington man, Eugene Laron Fishback, aka “Geno,” 32, was convicted Thursday, by a federal jury sitting in Lexington, of five counts of drug trafficking.
Following a four-day trial and approximately 90 minutes of deliberation, the jury found Fishback guilty of conspiracy to distribute 400 grams or more of fentanyl and 10 grams or more of carfentanil. Fishback was also convicted of two counts of possession with intent to distribute fentanyl and carfentanil, and two counts of possession with intent to distribute fentanyl.
According to testimony at trial, between July 1, 2022 and December 7, 2023, Fishback conspired with others to distribute fentanyl and carfentanil. On October 11, 2023, Fishback and his girlfriend, Tedi Hawkins, were evicted from their Lexington apartment. During a court ordered eviction, Fayette County Constables and members of the Lexington Police Department found plastic bags in the apartment, which contained over 7,000 fentanyl tablets, and four semi-automatic pistols, ammunition, and large capacity clips. Fishback and Hawkins later relocated to another apartment complex and came under DEA and Lexington Police Department investigation.
A federal search warrant was executed on the new residence, in December 2023. Execution of that warrant resulted in the seizure of more than 1,000 additional fentanyl tablets and a quantity of carfentanil. Fishback was later arrested from his vehicle, which contained another 1,000 fentanyl tablets and more than 10 grams of carfentanil.
After Hawkins had entered a guilty plea, Fishback attempted to convince her to withdraw that guilty plea, during a recorded jail call.
At the time of his indictment on these federal charges, Fishback had four pending state felony indictments in Fayette County. Additionally, Fishback has a number of prior felony convictions.
“Fentanyl is an incredibly dangerous drug, which is involved in approximately 80% of all overdose deaths in Kentucky,” said Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky. “And as awful as that is, carfentanil is far, far worse. Carfentanil is approximately 100 times more potent than fentanyl; this powerful opioid is actually designed for large mammals like elephants. It is no overstatement to say that removing these dangerous drugs from our streets will save lives. The dedicated work of our law enforcement partners in this case has unquestionably done that.”
United States Attorney Shier; Erek Davodowich, Acting Special Agent in Charge of the DEA Louisville Field Division; and Chief Lawrence Weathers, Lexington Police Department, jointly announced the jury’s verdict.
The investigation was conducted by DEA and Lexington Police Department, with assistance from the Fayette County Constable’s Office Third District. Assistant U.S. Attorneys Roger West and Brittany Baker are prosecuting the case on behalf of the United States.
Fishback is scheduled to appear for sentencing on September 20, 2024. He faces up to life in prison. However, the Court must consider the U.S. Sentencing Guidelines and the applicable federal sentencing statutes before imposing its sentence.
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Jefferson Parish Man Guilty of Federal Controlled Substances Act ViolationRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced that COREY ESQUERRE (“ESQUERRE”), age 50, a resident of Jefferson Parish, pled guilty on June 6, 2024 before United States District Judge Wendy B. Vitter, to violating the Federal Controlled Substances Act.
Specifically, ESQUERRE pled guilty to possession with intent to distribute fifty grams or more of methamphetamine, a Schedule II controlled substance, in violation of 21 U.S.C. §§ 841(a)(1) and 841(b)(1)(A).
According to court documents, on July 31, 2023, Gretna Police Department and the Drug Enforcement Administration (DEA) conducted a search of ESQUERRE’s apartment. Agents discovered ESQUERRE had 3.5 lbs. of methamphetamine in bags in a toolbox in his bedroom. The DEA Laboratory confirmed that the contents of the bags found in ESQUERRE’s bedroom contained 1880.1 grams of pure methamphetamine.
ESQUERRE faces a mandatory minimum sentence of 10 years and up to life imprisonment, a fine of up to $10,000,000, up to 5 years of supervised release, and a mandatory special assessment fee of $100.00. ESQUERRE’s sentencing is set for September 19, 2024.
The case was investigated by the Drug Enforcement Administration and the Gretna Police Department. Assistant United States Attorney Lauren Sarver of the Narcotics Unit oversees the prosecution.
Jackson County Drug Dealer Sentenced to Federal PrisonRead the Press Release
MEDFORD, Ore.—A known Jackson County drug dealer was sentenced to federal prison today after law enforcement located distribution quantities of drugs, including fentanyl, and a firearm in his abandoned vehicle.
Anthony Ross Minneci, 36, was sentenced to 188 months in federal prison and five years’ supervised release.
According to court documents, in January 2019, following his release from prison for drug trafficking and illegally possessing a firearm, Minneci resumed selling drugs throughout Southern Oregon. From early 2019 to March 2022, Minneci was charged in multiple cases in Jackson and Josephine County Circuit Courts for drug trafficking, illegally possessing firearms, and eluding police.
On January 1, 2022, a deputy with the Jackson County Sheriff’s Office observed a vehicle failing to stop at an intersection and driving at a high rate of speed. The deputy identified Minneci as the driver and sole occupant of the vehicle and pursued him briefly before Minneci got away. Later that evening, investigators found the vehicle unoccupied in a rural area, but were unable to locate Minneci.
On January 5, 2022, investigators executed a search warrant on the vehicle and located fentanyl, heroin and methamphetamine, as well as a firearm, ammunition, and drug paraphernalia. Investigators also found items identifying Minneci, including a driver’s license. On March 15, 2022, Minneci was arrested in Siskiyou County, California, following another attempt to elude police. At the time of his arrest, Minneci was found in possession of fentanyl, methamphetamine, and two firearms.
On May 5, 2022, a federal grand jury in Medford returned a three-count indictment charging Minneci with possessing methamphetamine with intent to distribute, illegally possessing ammunition as a convicted felon, and possessing firearms in relation to a drug trafficking crime.
On February 26, 2024, Minneci pleaded guilty to possessing a controlled substance with the intent to distribute.
The cases against Minneci were investigated by the Medford Area Drug and Gang Enforcement Team (MADGE) with assistance from the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Homeland Security Investigations (HSI), Rogue Area Drug Enforcement Team (RADE), Oregon State Police, the Jackson County Sheriff and District Attorney’s Offices, Medford Police Department, and the Siskiyou County Sheriff’s Office. It was prosecuted by Marco A. Boccato, Assistant U.S. Attorney for the District of Oregon.
MADGE is a multi-jurisdictional narcotics task force that identifies, disrupts, and dismantles local, multi-state, and international drug trafficking organizations using an intelligence-driven, multi-agency prosecutor-supported approach. MADGE is supported by the Oregon-Idaho High-Intensity Drug Trafficking Area (HIDTA) and is composed of members from the Medford Police Department, the Jackson County Sheriff and District Attorney’s Offices, the Jackson County Community Corrections, FBI, and HSI.
The Oregon-Idaho HIDTA program is an Office of National Drug Control Policy (ONDCP) sponsored counterdrug grant program that coordinates with and provides funding resources to multi-agency drug enforcement initiatives.
Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned or appeared recently before U.S. District or Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty beyond a reasonable doubt:
Appearing in Great Falls before Chief U.S. District Judge Brian M. Morris and pleading not guilty on June 6 was:
Melody Rose Bernard, 49, of Box Elder, on charges of conspiracy to possess with intent to distribute controlled substances, possession with intent to distribute controlled substances and possession of a firearm in furtherance of a drug trafficking crime. If convicted of the most serious crime, Bernard faces a mandatory minimum of 10 years to life in prison, a $10 million fine and at least five years of supervised release on the drug charges and a mandatory minimum of five years in prison, consecutive to any other sentence, a $250,000 fine and five years of supervised release on the firearms charge. Bernard was detained pending further proceedings. The FBI, Montana Division of Criminal Investigation, Rocky Boy’s Police Department, Hill County Sheriff’s Office, Bureau of Alcohol, Tobacco, Firearms and Explosives, Great Falls Police Department, Cascade County Sheriff’s Office and Havre Police Department conducted the investigation. PACER case reference. 24-46.
Appearing in Billings before U.S. Magistrate Judge Timothy J. Cavan and pleading not guilty on June 5 was:
Lori Pauline Whiteshield, 44, of Lame Deer, on charges of assault resulting in substantial bodily injury to a person under 16. If convicted of the most serious crime, Whiteshield faces a maximum of five years in prison, a $250,000 fine and three years of supervised release. Whiteshield was detained pending further proceedings. The FBI conducted the investigation. PACER case reference. 24-62.
Appearing in Missoula before U.S. Magistrate Judge Kathleen L. DeSoto and pleading not guilty on May 30 was:
Todd Schannen Pearson, 54, of Indianapolis, Indiana, on charges of transportation of child pornography and possession of child pornography. If convicted of the most serious crime, Pearson faces a mandatory minimum of five years to 20 years in prison, a $250,000 fine and five years to a lifetime of supervised release. Pearson was detained pending further proceedings. The Bozeman Police Department and Montana Division of Criminal Investigation conducted the investigation. PACER case reference. 24-09.
The progress of cases may be monitored through the U.S. District Court Calendar and the PACER system. To establish a PACER account, which provides electronic access to review documents filed in a case, please visit http://www.pacer.gov/register.html. To access the District Court’s calendar, please visit https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Hot Springs Man Sentenced to 15 Years in Federal Prison for Firearms PossessionRead the Press Release
HOT SPRINGS – A Hot Springs man was sentenced yesterday to 180 months in prison followed by three years of supervised release on one count Possession of a Firearm by a Prohibited Person – Felon. The Honorable Chief Judge Susan O. Hickey presided over the sentencing hearing in the United States District Court in Hot Springs.
According to court documents, in June of 2020, an Officer with the Hot Springs Police Department conducted a traffic stop of a vehicle being operated by Carl Lee Tate, Sr, age 44. The Officer determined that Tate was a convicted felon on parole through the State of Arkansas and that Tate had a search waiver on file. The Officer searched Tate’s vehicle and located, among other things, a loaded handgun, methamphetamine, and digital scales.
This case was investigated by the Hot Springs Police Department.
Assistant United States Attorney Bryan Achorn prosecuted the case for the Western District of Arkansas.
This case was prosecuted as 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 make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov.
Honduran national sentenced for federal drug trafficking and firearms chargesRead the Press Release
NORFOLK, Va. – A Honduran national was sentenced today to 10 years in prison for possession with intent to distribute methamphetamine and possession of a firearm in furtherance of a drug-trafficking crime.
According to court documents, early on the morning of June 20, 2023, officers with the Virginia Beach Police Department (VBPD) responded to a report of an unconscious person in a car and found Delvin Antonio Cruz-Melgar, 25, asleep behind the wheel of a red Dodge that had been involved in a hit-and-run accident with another vehicle about 90 minutes earlier. After observing a meth pipe in plain view, VBPD initiated a probable cause search of the red Dodge and located a second meth pipe, a plastic bag containing 4.57 grams of meth, and a black bag containing 225.44 grams of meth.
During a search of Cruz-Melgar’s person, officers discovered a loaded Walther PPX 9mm handgun in his waistband, as well as $760 in cash. Detectives with the VBPD Special Investigations Unit were called to the scene. The detectives located a stolen Akkar Churchill Model 612 12-gauge shotgun, a digital scale, multiple cellphones, and ammunition in the vehicle.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Jason Miyares, Attorney General of Virginia; Craig Kailimai, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives Washington Field Division; Liana Castano, Field Office Director for Enforcement and Removal Operations (ERO) Washington, D.C.; Derek W. Gordon, Special Agent in Charge of Homeland Security Investigations (HSI) Washington, D.C.; Paul Neudigate, Chief of Virginia Beach Police; and Colonel Gary T. Settle, Virginia State Police Superintendent, made the announcement after sentencing by Senior U.S. District Judge John A. Gibney Jr..
Assistant U.S. Attorney Darryl J. Mitchell and Special Assistant U.S. Attorney Marc W. West, an Assistant Attorney General with the Virginia Attorney General’s Office, prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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. 2:23-cr-134.
Guatemalan National Sentenced to Prison and Deportation for Fraudulent Use of Social Security Number and Improper Entry into U.S.Read the Press Release
PITTSBURGH, Pa. - A resident of Guatemala has been sentenced in federal court to three months of incarceration to be followed by immediate deportation after pleading guilty to fraudulently using a social security number and improper entry into the United States by an alien, United States Attorney Eric G. Olshan announced today.
United States District Judge W. Scott Hardy imposed the sentence on Abel Castillo-Monrroy, 36.
According to the information presented to the Court, on or about June 23, 2021, Castillo-Monrroy used the date of birth and social security number of a Texas resident to unlawfully obtain a Pennsylvania identification card. Further, on or about August 1, 2023, while incarcerated on other charges, Castillo-Monrroy was found to be unlawfully present in the United States.
United States Attorney Olshan commended the Office of the Inspector General of the Social Security Administration, Department of Homeland Security’s Immigration and Customs Enforcement, and U.S. Border Patrol for the investigation leading to the successful prosecution of Castillo-Monrroy.
Grandview Man Pleads Guilty to $900,000 Drug-Trafficking ConspiracyRead the Press Release
KANSAS CITY, Mo. – A Grandview, Mo., man pleaded guilty in federal court today to his role in a conspiracy that distributed at least 18 kilograms of cocaine.
Anthony D. Harris, 41, pleaded guilty before U.S. District Judge Greg Kays to conspiracy to distribute cocaine.
By pleading guilty today, Harris admitted that he distributed at least 18 kilograms of cocaine between 2019 and 2022. Harris, who obtained cocaine from sources throughout the country, admitted that he made dozens of trips to Texas to obtain cocaine to distribute in the Kansas City metropolitan area. He made 38 trips by flight to Houston, Texas, to obtain cocaine, then rented a vehicle to return and distribute the cocaine to co-conspirators in the Kansas City metropolitan area.
Harris had two bank accounts that facilitated his drug trade. He deposited a total $443,920 into the bank accounts during that time, of which $308,472 was cash deposits.
Harris also gambled with proceeds from his drug trade. Records received from several casinos in the Kansas City area and Las Vegas, Nevada, revealed that from 2019 to 2021, Harris cashed in a total of $705,244 and cashed out a total of $646,108.
Under the terms of today’s plea agreement, Harris must forfeit to the government a money judgment of up to $887,600, based upon his drug responsibility as determined by the court. This sum, in aggregate, was obtained through the drug-trafficking conspiracy, based upon an average street price of $1,400 per ounce of cocaine, $30 per pill (approximately 0.1 grams) of fentanyl, and $200 per ounce of marijuana.
Harris is one of 29 defendants charged in this case. More than 200 law enforcement officers participated in an operation in March 2022 that led to the arrests of 25 of the 26 defendants originally indicted. Officers seized 27 firearms, 1,877 rounds of ammunition, more than 11.1 kilograms of marijuana, 300.9 grams of cocaine, 278.91 grams of other illegal drugs, and $34,439 in cash. Harris, who was among three defendants charged in a superseding indictment, was arrested on Jan. 27, 2023.
Under federal statutes, Harris is subject to a mandatory minimum sentence of five years in federal prison without parole, up to a sentence of 40 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorneys Matthew A. Moeder and Stephanie C. Bradshaw. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Kansas City, Mo., Police Department, the Drug Enforcement Administration, the U.S. Marshals Service, the Independence, Mo., Police Department, Missouri State Highway Patrol, the Buchanan County, Mo., Sheriff’s Department, the Johnson County, Kan., Sheriff’s Department and the St. Joseph, Mo., Police Department.
KC Metro Strike Force
This prosecution was brought as a part of the Department of Justice’s Organized Crime Drug Enforcement Task Forces (OCDETF) Co-located Strike Forces Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations against a continuum of priority targets and their affiliate illicit financial networks. These prosecutor-led co-located Strike Forces capitalize on the synergy created through the long-term relationships that can be forged by agents, analysts, and prosecutors who remain together over time, and they epitomize the model that has proven most effective in combating organized crime. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking organizations, transnational criminal organizations, and money laundering organizations that present a significant threat to the public safety, economic, or national security of the United States.
Ghanian Citizen Sentenced to 6 Years for Money LaunderingRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Paul Williams Anti, 61, a citizen of Ghana, was sentenced today by U.S. District Judge William M. Conley to 6 years in federal prison for conspiring to launder proceeds of wire fraud. Williams Anti pleaded guilty to the charge on March 14, 2024.
Money laundering involves using financial transactions to conceal the nature, location, source, ownership, or control of illegally obtained funds. Between September 15, 2020, and March 13, 2023, Williams Anti controlled 14 separate bank accounts under 9 false identities and fraudulent business names. He used those bank accounts to collect and launder more than $3.8 million in proceeds from wire fraud schemes perpetrated on business and organization victims throughout the United States.
In addition to using false identities and fake business names for bank accounts, Williams Anti further concealed his identify from law enforcement by directing mail associated with the scheme to the mailbox of an elderly patient at an assisted living facility in Connecticut. Williams Anti was hired to care for the patient using yet another false identity.
At sentencing, Judge Conley noted that the Williams Anti’s conduct was sophisticated and calculated. He said he knowingly choose to participate in a massive scheme and set up a web of subterfuge to conceal his criminal conduct.
“We are grateful for the work of our federal, state, and local law enforcement partners to disrupt the money laundering that happens after business email compromise schemes or when other cyber-enabled fraud occurs,” said U.S. Attorney Timothy M. O’Shea. “Often, the individuals who end up with the funds are not the ones conducting the online fraud, but they are critical components to the success of these schemes. I am grateful for the work of the agents in this case and my office remains committed to prosecuting those who launder proceeds of illegal activity.”
“Actions such as those taken by Williams Anti to enrich himself by laundering ill-gotten funds are reprehensible and will not be tolerated,” said HSI Chicago Special Agent in Charge Sean Fitzgerald. “HSI will continue to work closely with our law enforcement and prosecutorial partners to disrupt this type of conspiracy and to protect organizations and individuals from being victimized.”
Law enforcement began investigating Williams Anti in October 2020, after an organization with its headquarters in Madison, Wisconsin, fell victim to a wire fraud scheme commonly referred to as a “business email compromise scheme.” The $2.4 million in losses stemmed from the organization paying invoices between October 13, 2020 and October 20, 2020, which were later determined to be altered.
The fraudulent invoices appeared to be from legitimate vendors with whom the organization regularly conducted business, but the payee bank account and sometimes the account payable information had been altered by an unknown party prior to being sent to the organization’s employee for payment. This resulted in the organization’s funds being transferred to fraudulent bank accounts. Approximately $1 million of $2.4 million stolen from the organization was directed to two bank accounts, one in the name of G.P., dba Electronics General Goods and one in the name G.P., dba Gary Ventures.
Following a lengthy investigation, law enforcement identified Williams Anti as the individual controlling the G.P. bank accounts. Law enforcement was then able to locate additional bank accounts and false identities being used by Williams Anti. From there, law enforcement was able to trace proceeds from these bank accounts to 29 other wire fraud victims around the U.S. These victims had been defrauded by similar business email compromise schemes and in total, lost approximately $7.7 million, of which approximately $3.8 million was directed to accounts controlled by Williams Anti. Williams Anti was arrested on March 14, 2023, in an apartment in the Bronx, New York.
A business email compromise (BEC) scheme is a sophisticated fraud scheme targeting businesses that use wire transfers as a form of payment. Criminals compromise legitimate business email accounts through various hacking schemes, including social engineering and the use of malware. Once a business email account is compromised, a fraudulent email is sent directing the email recipient to unwittingly transfer funds to an illicit account. Alternatively, criminals create “spoofed” email domain names to trick people into thinking they know or do business with the sender. An email domain name is the part of an email address that comes after the “@” symbol. In email spoofing, one character in an email address is often changed or missing, thereby tricking the recipient. Criminals obtain and use privileged information to convince BEC email recipients that the transfer instructions are legitimate.
To avoid becoming the victim of a BEC scheme, verify that sender email addresses are accurate when checking mail on a cellphone or other mobile device before opening any attachments or following any instructions, and never make any payment changes without verifying with the intended recipient by phone or in person. If you think you have been a victim of a BEC scheme, 1) immediately contact your bank to request a recall or reversal as well as a Hold Harmless Letter or Letter of Indemnity; and 2) file a detailed complaint with the Internet Crime Complaint Center at www.ic3.gov. The Internet Crime Complaint Center is run by the FBI and serves as the country’s hub for reporting cybercrime. Visit www.ic3.gov for updated information regarding BEC trends as well as other cyber fraud schemes. For additional information on how to protect your business or organization from a business email compromise scheme, please visit:
https://www.fbi.gov/how-we-can-help-you/scams-and-safety/common-scams-and-crimes/business-email-compromise
or
https://www.secretservice.gov/investigation/Preparing-for-a-Cyber-Incident/
The charge against Williams Anti was the result of an investigation conducted by Homeland Security Investigations (HSI) and the Federal Bureau of Investigation. The prosecution of the case has been handled by Assistant U.S. Attorney Meredith Duchemin.
Georgia Attorney and Former Atlanta Police Officer Sentenced for $15M COVID-19 Relief Fraud ConspiracyRead the Press Release
A Georgia attorney and former City of Atlanta police officer was sentenced today to seven years and three months in prison for conspiring to defraud the Paycheck Protection Program (PPP) of approximately $15 million.
According to court documents and evidence presented at trial, Shelitha Robertson, 62, of Atlanta, conspired with Chandra Norton to submit fraudulent PPP loan applications on behalf of businesses that Robertson and Norton each owned. The fraudulent loan applications falsely inflated the number of employees and average monthly payroll for each of the applicant businesses and included false supporting tax documentation, inducing larger PPP loans than Robertson or Norton could legitimately obtain. Robertson and Norton submitted fraudulent applications on behalf of four businesses Robertson owned, resulting in $7,020,779 in PPP funds deposited into bank accounts Robertson owned and controlled. Robertson then used the loan proceeds for her personal benefit, including purchasing luxury items, such as a 10-carat diamond ring, and transferring funds to family members and to Norton.
A federal jury convicted Robertson in December 2023 of on one count of conspiracy to commit wire fraud, three counts of wire fraud, and one count of money laundering. Norton pleaded guilty in November 2020 and is scheduled to be sentenced on Aug. 14.
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; U.S. Attorney Ryan K. Buchanan for the Northern District of Georgia; Inspector General Hannibal “Mike” Ware of the Small Business Administration Office of Inspector General (SBA-OIG); Inspector General Jennifer L. Fain of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG); and Acting Inspector General Heather M. Hill of the Treasury Inspector General for Tax Administration (TIGTA) made the announcement.
The SBA-OIG, FDIC-OIG, and TIGTA investigated the case.
Trial Attorney Ariel Glasner of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Bernita Malloy for the Northern District of Georgia prosecuted the case.
Gang Member Sentenced for Assault on a Federal Correctional OfficerRead the Press Release
ATLANTA - Cody Todd has been sentenced for assault on a Bureau of Prisons correctional officer at the U.S. Penitentiary in Atlanta, Georgia (USP-Atlanta).
“This defendant’s pattern of violent behavior continued while he was in custody, resulting in a vicious attack that left a correctional officer seriously injured,” said U.S. Attorney Ryan K. Buchanan. “Correctional officers must be permitted to do their jobs without the threat or fear of violence, and those who bring them harm will be prosecuted.”
“The FBI has zero tolerance for anyone who uses violence against law enforcement officers,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “We will always hold criminals accountable for their actions and will not hesitate to pursue those who repeatedly violate the law, even behind bars.”
“Todd’s sentencing sends a clear message that those who threaten or harm our correctional officers will be held accountable,” said Randilee Giamusso, Spokesperson for the Federal Bureau of Prisons. “The safety of our corrections employees and security of our facilities will always be the Federal Bureau of Prisons’ top priority in our mission to ensure public safety.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: On January 28, 2021, Cody Todd assaulted a correctional officer while he was in custody as a pretrial detainee at USP-Atlanta. Todd hit the officer in the face, knocked him to the floor, and then struck the officer several more times while the officer was incapacitated. This assault left the officer with significant injuries.
At the time of the assault, Todd was being detained on charges of racketeering activity in connection with his crimes committed as a member of the Ghost Face Gangsters. The racketeering activity included, among other offenses, murder, attempted murder, kidnapping and robbery.
Todd was separately convicted of conspiracy to commit racketeering and sentenced to 16 years in prison. Todd had also previously been convicted of battery on four separate occasions.
Cody Ryan Todd, 34, of Carrollton, Georgia, was sentenced by U. S. District Judge Victoria M. Calvert to six years and five months in prison, two years and 11 months of which will be served concurrently with the sentence on his racketeering conviction. Todd was found guilty by a jury on February 1, 2024.
This case was investigated by the Federal Bureau of Investigation and Federal Bureau of Prisons.
Assistant U. S. Attorneys Richard Beaulieu and Alison Prout prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Former energy company president sentenced for over $5.5M illegal kickback and commodities insider trading schemeRead the Press Release
HOUSTON – A 56-year-old Needville man has been ordered to federal prison for his role in an illegal kickback scheme and a commodities insider trading scheme involving natural gas futures contracts.
Matthew Clark pleaded guilty March 15 to honest services wire fraud, commodities insider trading and prohibited commodities transactions.
U.S. District Judge George C. Hanks has now ordered Clark to serve a total of 78 months in prison. He must also pay $7,709,509 in restitution and forfeit $6,532,360. In handing down the sentence, Judge Hanks noted Clark made the calculated choice to commit these offenses despite the risk of being caught, and in doing so “gambled and lost.”
According to court documents, Clark conspired with others to direct his employer’s trades to Houston-based Classic Energy LLC, a brokerage firm Matthew Webb, 54, Tiki Island, owned and operated, in exchange for illegal kickbacks. As part of his prohibited trading, Clark conspired with John Ed James, 54 Katy, and Peter Miller, 49, Puerto Rico. Clark received more than $5.5 million in illegal kickbacks for his trades.
Webb pleaded guilty in June 2021 to conspiracy to commit commodities fraud and wire fraud and to violate various provisions of the Commodity Exchange Act. James pleaded guilty to conspiracy to commit wire fraud and commodities fraud and is scheduled to be sentenced July 1, while Miller admitted to conspiracy to commit commodities fraud and is set for sentencing June 20.
In two other related cases, Marcus Schultz, 44, Houston, and Lee Tippett, 64, Jacksonville, Florida, pleaded guilty in July 2020 and August 2021, respectively. Schultz pleaded guilty to conspiracy to commit wire fraud and to violate various provisions of the Commodity Exchange Act and is scheduled to be sentenced July 1. Tippett pleaded guilty to conspiracy to commit commodities fraud and honest services wire fraud and was previously sentenced to 33 months in prison.
Clark was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined at a later date.
The FBI conducted the investigation.
Assistant U.S. Attorney Grace Murphy prosecuted the case along with Assistant Chief Leslie S. Garthwaite and Trial Attorneys Della Sentilles and David Hamstra of the Criminal Division’s Fraud Section.
Former Wyandotte Elementary School Principal Pleads Guilty to EmbezzlementRead the Press Release
DETROIT - A former Wyandotte Elementary School Principal pleaded guilty today to embezzling over $89,000 of funds intended for use by the school to advance its educational mission, United States Attorney Dawn N. Ison announced today.
Joining in the announcement was Cheyvoryea Gibson, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation (FBI), and Chief Brian Zalewski, Wyandotte Police Department.
Krizia Allen, 38, of West Bloomfield, entered a plea of guilty to one count of theft from a federally funded program before United States District Chief Judge Sean F. Cox. The guilty plea arose out of Allen’s embezzlement of public funds while serving as the Principal of Garfield Elementary School within the City of Wyandotte. Allen used the school funds for her own personal gain or benefit, including for personal vacations, meals, gift cards, clothing, and rent.
According to the plea documents, from June 2018 through February 2023, while serving as the Principal of Garfield, Allen stole approximately $89,312 of public-school funds using various fraudulent means to divert the funds for her own personal use and conceal the theft. According to the plea documents, Allen used a corporate entity that provided no goods or services to the school to funnel over $24,000 in funds directly to her personal bank accounts. Once there, Allen used the stolen proceeds to make rent payments, purchase food, and make ATM withdrawals. Allen also repeatedly used a school credit card entrusted to her for official school purposes to make thousands of dollars’ worth of personal purchases on Amazon, including for digital gift cards for use at Nordstrom, Foot Locker, and Old Navy. To conceal these personal expenditures, Allen created false Amazon orders identifying school-related items for submission to the school’s finance department to justify the purchases. Finally, Allen used the school credit card to transfer over $50,000 in funds between the school’s PayPal account and her own PayPal account. During the same time period, Allen made over $50,000 in debit card transactions and withdrawals from her PayPal account for purely personal uses, including CashApp and ATM cash withdrawals, rent payments, and DoorDash purchases. To justify the regular fund transfers from the school’s PayPal account into her personal PayPal account, Allen created and submitted more false business invoices and receipts to the school’s finance department, which identified apparent school-related purchases that never occurred.
According to the plea documents, in February 2023, after becoming aware of Allen’s misappropriation of certain funds for personal purposes, the school confronted Allen and discontinued her employment. That same day, Allen conducted open-source Internet searches utilizing search phrases such as “embezzlement” and “minimum for fraud.”
United States Attorney Ison stated, “Krizia Allen stole tens of thousands of dollars of public funds intended to benefit its students. Every dollar Ms. Allen misappropriated for her own personal gain deprived the students and teachers of Garfield Elementary of the financial resources needed to ensure that each child at Garfield received a proper education. My office takes theft from such federally funded educational programs very seriously, and we will continue to bring those who steal from these programs to justice.”
“Educators are entrusted with the ultimate responsibility of ensuring our children receive a high-quality education and schools have the resources needed to accomplish academic goals,” said Cheyvoryea Gibson, Special Agent in Charge of the FBI in Michigan. “Mrs. Allen admittedly violated that trust by misappropriating school funds, and she will face the appropriate consequences. This investigation was conducted by the FBI's Detroit Area Corruption Task Force. I would like to also thank the Wyandotte Police Department, especially Chief Brian Zalewski, for their partnership during this investigation.”
Sentencing is set for October 10, 2024 before Judge Cox.
The case is being prosecuted by Assistant United States Attorney T. Patrick Martin. The case was investigated by our Detroit Area Corruption Task Force and then the Wyandotte Police Department.
Former Senior Executive at Chinatown Bank Sentenced to 3 Years in Federal Prison for Embezzling More Than $700,000 from EmployerRead the Press Release
LOS ANGELES – The former chief financial officer at a bank in the Chinatown area of downtown Los Angeles was sentenced today to 36 months in federal prison for embezzling more than $700,000 of his employer’s funds.
Sammy Sims, 61, of West Covina, was sentenced by United States District Judge Maame Ewusi-Mensah Frimpong, who also ordered him to pay $306,849 in restitution.
Sims pleaded guilty on February 22 to one count of bank fraud and admitted at that hearing and in court documents to stealing bank employees’ identities to open life insurance policies in their names to benefit his wife.
Chinatown-based Eastern International Bank hired Sims in September 2017 as the lender’s CFO. As a condition of his employment, Sims agreed that he would not use the bank’s confidential information for his personal benefit or for others. The bank’s policy also required Sims to promptly disclose any conflicts or appearances of conflict with the bank’s interests. Sims’s scheme to defraud his employer lasted from February 2018 until at least April 2021.
From August 2018 to October 2020, Sims wired $86,000 in bank funds to the United States Treasury and California Franchise Tax Board to make payments towards the personal federal and state income taxes for himself and his wife. Sims concealed these transactions by creating false entries in the bank’s general ledger that falsely represented that the payments were for the bank’s tax accounts.
In April 2019, Sims used approximately $14,161 in bank funds to a debt collection agency to help pay off a debt that he had incurred. Sims concealed this transaction by creating a false entry in the bank’s general ledger that falsely stated the payment was for data processing software.
From April 2019 to December 2020, Sims took approximately $113,264 in money belonging to the bank to pay the balances on his personal credit card. Sims hid these expenses in the bank’s general ledger by falsely labeling them as bank expenses. During this time, he also siphoned approximately $81,815 from the bank by using a bank credit card, meant for work purposes, for his personal expenses, including steak dinners and a trip to Las Vegas.
Sims, from February 2020 to April 2021, also lied to several bank employees by telling them they had to switch their bank-funded life insurance policies because of their age. What neither the employees nor the bank knew was these policies were obtained through Sims’s wife, a licensed life insurance broker who received a commission for each life policy she sold. For some employees, Sims obtained their personal identifying information without their consent and then used this information to purchase life insurance policies from his wife. Sims used a checking account belonging to the bank to wire approximately $311,608 of the bank’s money to several life insurance companies to partially pay for the premiums for these policies.
Later, when Sims was confronted about the life insurance policies opened using bank employees’ personal identifying information, he lied by saying the employees’ identities could have been stolen through a cybersecurity hack or by unauthorized disclosures by the bank’s personnel department. Sims resigned from the bank shortly after being confronted about the life insurance policies.
In total, Sims unlawfully took $737,849 of bank funds for his personal use and benefit.
The FBI and the Federal Deposit Insurance Corporation Office of Inspector General investigated this matter.
Assistant United States Attorney Jason C. Pang of the General Crimes Section prosecuted this case, with assistance from Assistant United States Attorney James E. Dochterman of the Asset Forfeiture and Recovery Section.
Former Principals of Private “Pre-IPO” Funds Charged in Connection with $185 Million Fraud SchemeRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Daniel B. Brubaker, the Inspector in Charge of the New York Office of the U.S. Postal Inspection Service (“USPIS”), announced today the unsealing of an Indictment charging MARIO GOGLIORMELLA, STEVEN LACAJ, and KARIM IBRAHIM, a/k/a “Chris Hayes,” with conspiracy, securities fraud, wire fraud, and investment adviser fraud in connection with their management of L & G Capital Corp., Legend Venture Partners LLC, and a related series of funds. The defendants’ fraudulent misrepresentations about the operation of their funds allowed them to raise approximately $185 million from hundreds of investors. Based in large part on the excessive and undisclosed share price markups they charged to investors, the defendants were able to divert nearly $28 million in investor funds to themselves. They also used investor funds to pay their sales representatives at least $17.5 million in fees and commissions, despite making explicit representations to investors that fees were not being charged. GOGLIORMELLA, LACAJ, and IBRAHIM were arrested earlier today and will be presented this afternoon in Manhattan federal court. The case has been assigned to U.S. District Judge Vernon S. Broderick.
U.S. Attorney Damian Williams said: “By allegedly raising approximately $185 million from over 1,400 investors, Mario Gogliormella, Steven Lacaj, and Karim Ibrahim left a trail of shattered trust and financial ruin. Today’s Indictment is a resolute stance against such alleged egregious breaches of investor confidence in the pre-IPO markets. We will hold perpetrators accountable and safeguard investors from such deceitful practices.”
USPIS Inspector in Charge Daniel B. Brubaker said: “The U.S. Postal Inspection Service thoroughly investigates investment fraud cases which involve the criminal use of the mail to defraud investors. This case highlights the crooked path these greedy individuals allegedly took as they charged excessive and undisclosed share price markups, callously defrauding investors out of millions. I commend the work of our Postal Inspectors, the Securities and Exchange Commission, and the Assistant U.S. Attorneys for the Southern District of New York’s Securities and Commodities Fraud Task Force. Together we are ensuring that investors are protected, the sanctity of the U.S. Mail is preserved, and ultimately fraudsters are held accountable for their dirty deeds.”
According to the allegations in the Indictment:[1]
From at least in or about 2019 through at least in or about October 2022, GOGLIORMELLA, LACAJ, and IBRAHIM engaged in a scheme to defraud investors in a group of related private funds known generally as the “StraightPath Funds” and the “Legend Funds” (the “Funds”). In particular, the defendants, and others working at their direction, used “boiler room”-style call centers to market the funds, including to individual, non-professional investors, and present an opportunity to invest in privately held companies expected to go public in the near future (“pre-IPO companies”). The defendants purported to offer investors the chance to acquire shares in pre-IPO companies at favorable prices in advance of an anticipated public offering, at which time they claimed the shares would be worth significantly more.
Although the defendants and their agents represented to existing and prospective investors in the Funds that they earned no upfront fees or commission in connection with the acquisition of pre-IPO shares on the Funds’ behalf, in reality and contrary to their fiduciary duties, the defendants acquired the shares and then sold them to the Funds at arbitrarily inflated and excessive prices without disclosing to investors the nature or extent of the markup. The defendants also misled investors regarding the nature of their investments and hid the involvement of GOGLIORMELLA and IBRAHIM, who had previously been disciplined by the Financial Industry Regulatory Authority (“FINRA”) for the management of the Funds. Moreover, in order to evade detection of their scheme, the defendants destroyed records and otherwise obstructed the efforts of the U.S. Securities and Exchange Commission (“SEC”) to uncover the defendants’ fraud on investors.
GOGLIORMELLA, LACAJ, and IBRAHIM conducted this scheme through several related entities. Among those entities was L & G Capital Corp. (“L & G”), which, from approximately 2019 up to approximately February 2022, marketed the StraightPath Funds on behalf of StraightPath Venture Partners, Inc. (“SPVP”). In approximately 2021, multiple individuals associated with SPVP received subpoenas from the SEC in connection with an investigation into SPVP’s unlawful marketing of pre-IPO shares to investors, and in approximately February 2022, SPVP ceased operations. On or about May 13, 2022, the SEC filed a civil action against SPVP and its founders. In approximately February 2022, when SPVP ceased operations, GOGLIORMELLA, LACAJ, and IBRAHIM began conducting the scheme under the corporate entity Legend Venture Partners, LLC (“Legend”). The defendants, now through the corporate entity Legend, continued to market funds investing in pre-IPO shares to investors. In addition to marketing these funds, Legend was the manager and investment adviser to each of the five Legend Funds.
In order to generate interest in the Funds among retail investors, GOGLIORMELLA, LACAJ, and IBRAHIM used finders, or “referral agents,” to pitch prospective investors and thereafter to serve as the investors’ primary point of contact. The defendants used “boiler room”-style call centers wherein salespeople cold-called potential investors, many of whom were not experienced investors, and gave aggressive sales pitches using notes and pitch scripts. The defendants referred to their pitch scripts as “The Bible.” Contrary to the defendants’ claim that they and their agents did not make money unless and until investors received a profit on their investments, L & G and Legend paid referral agents a commission, typically a 10 to 15% front-end fee based on the amount of the investment that agents were able to draw to the Funds, plus a portion of the carried interest when the Funds exited their position in a particular company.
In addition to misleading prospective investors about the compensation paid to referral agents, GOGLIORMELLA, LACAJ, and IBRAHIM defrauded investors in the Funds, for which they acted as fiduciaries, by charging investors excessive and undisclosed markups on share prices of pre-IPO companies, which benefited the defendants and their associates at the expense of investors and the Funds. These markups regularly exceeded 50% of the price at which Legend had acquired the shares and sometimes were as high as 150%. These markups, in turn, were used to pay fees and commissions to the defendants and their sales representatives.
GOGLIORMELLA, LACAJ, and IBRAHIM also misled investors by actively taking steps to prevent investors from learning about GOGLIORMELLA’s and IBRAHIM’s leadership roles at Legend because of the fact that both had been disciplined by FINRA. In addition, GOGLIORMELLA, LACAJ, and IBRAHIM misled investors by misrepresenting the experience and knowledge of the sales representatives who were advising investors to invest in their funds.
In total, during the course of their scheme, from in or about 2019 through in or about October 2022, GOGLIROMELLA, LACAJ, IBRAHIM, and their agents solicited investments into the Funds of approximately $185 million from at least 1,400 investors. GOGLIROMELLA, LACAJ, and IBRAHIM used much of these investor funds to enrich themselves and their associates and referral agents. GOGLIORMELLA, LACAJ, and IBRAHIM themselves received a total of more than $28 million in investors’ funds. For the most part, these distributions were not disclosed to investors or made in accordance with the Funds’ offering documents. The defendants also paid at least $17.5 million in investor funds to their associates and referral agents, despite having made and caused to be made explicit representations to investors that fees were not being charged or were being waived. In all, approximately 25% of the capital contributions the Funds received from investors was diverted to pay the defendants and their associates.
The Funds are no longer operational and are under the control of court-appointed receivers tasked with taking possession of the funds’ assets and recommending a plan to return value to investors.
* * *
GOGLIORMELLA, 47, of Manhasset, New York, LACAJ, 27, of New York, New York, and IBRAHIM, 34, of Queens, New York, are each charged with one count of conspiracy to commit securities fraud, wire fraud, and investment adviser fraud, which carries a maximum potential sentence of five years in prison; one count of securities fraud, which carries a maximum potential sentence of 20 years in prison; one count of wire fraud, which carries a maximum potential sentence of 20 years in prison; and one count of investment advisor fraud, which carries a maximum potential sentence of five years in prison.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge.
Mr. Williams praised the outstanding work of the USPIS. Mr. Williams further thanked the SEC, which has separately filed civil charges against GOGLIORMELLA, LACAJ, and IBRAHIM.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Adam S. Hobson and Matthew R. Shahabian are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth in this release constitute only allegations, and every fact described should be treated as an allegation.
Former President of Energy Company Sentenced for over $5.5M Illegal Kickback and Commodities Insider Trading SchemeRead the Press Release
The former president of a Texas energy company was sentenced today to six years and six months in prison for his role in an illegal kickback scheme and a commodities insider trading scheme involving natural gas futures contracts.
According to court documents, Matthew Clark, 56, of Needville, Texas, conspired with others to direct his employer’s trades to Houston-based Classic Energy LLC, a brokerage firm owned and operated by Matthew Webb, 54, of Tiki Island, Texas, in exchange for illegal kickbacks. As part of his prohibited trading, Clark conspired with John Ed James, 54 of Katy, Texas, and Peter Miller, 49, of Puerto Rico. Clark received more than $5.5 million in illegal kickbacks for his trades.
Clark was also ordered to pay $6,532,360 in restitution and to forfeit $5,543,662.
Clark pleaded guilty on March 15 in the Southern District of Texas to conspiracy to commit honest services wire fraud, prohibited commodities transactions, and commodities insider trading. Webb pleaded guilty in June 2021 to conspiracy to commit commodities fraud and wire fraud and to violate various provisions of the Commodity Exchange Act. James pleaded guilty to conspiracy to commit commodities fraud and wire fraud and is scheduled to be sentenced on July 1. Miller pleaded guilty to conspiracy to commit commodities fraud and is scheduled to be sentenced on June 20.
In two other related cases, Marcus Schultz, 44, of Houston, and Lee Tippett, 64, of Jacksonville, Florida, pleaded guilty in July 2020 and August 2021, respectively. Schultz pleaded guilty to conspiracy to commit wire fraud and to violate various provisions of the Commodity Exchange Act and is scheduled to be sentenced on July 1. Tippett pleaded guilty to conspiracy to commit commodities fraud and honest services wire fraud and was sentenced on Feb. 20 to two years and nine months in prison.
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; U.S. Attorney Alamdar S. Hamdani for the Southern District of Texas; Assistant Director Michael Nordwall of the FBI’s Criminal Investigative Division; and Special Agent in Charge Douglas Williams of the FBI Houston Field Office made the announcement.
The FBI Houston Field Office investigated the case.
Assistant Chief Leslie S. Garthwaite and Trial Attorneys Della Sentilles and David Hamstra of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Grace Murphy for the Southern District of Texas prosecuted the case.
Former High School Dean Sentenced to Life Plus Five Years in Prison for 2010 MurderRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that ISRAEL GARCIA, a/k/a “Shorty Rock,” the former leader of the Get Money Gunnaz set of the Young Gunnaz street gang (the “GMG YGz”), was sentenced to life plus five years in prison for the October 11, 2010, murder of Alfonso “Joey” McClinton. GARCIA shot and killed McClinton on a residential street in the Bronx, New York, as part of a dispute over narcotics trafficking territory. Following a seven-day trial in July 2023 before U.S. District Judge Jed S. Rakoff, who imposed today’s sentence, a jury also convicted GARCIA of engaging in a conspiracy to distribute narcotics, murder while engaged in a narcotics conspiracy, murder through the use of a firearm, possessing firearms in connection with narcotics trafficking, and attempted witness tampering.
U.S. Attorney Damian Williams said: “Today’s strong sentence reflects our unwavering commitment to holding those who take another life fully accountable for their heinous crimes. Israel Garcia, a former high school dean who could have had a positive impact on our community, will now spend the rest of his life in prison for the brutal murder of Joey McClinton, for engaging in a narcotics conspiracy, and for witness tampering. I commend the career prosecutors of this Office and our law enforcement partners for doggedly pursuing this case and for bringing justice to Joey McClinton, nearly 14 years after his death.”
According to court filings and the evidence presented in court during trial:
For more than a decade, the defendant controlled the sale of narcotics in the vicinity of East 184th Street and Morris Avenue in the Bronx as the leader of the GMG YGz. As part of their narcotics operation, GMG YGz members carried firearms and engaged in back-and-forth shootings with neighboring, rival crews. This violence resulted in, among other acts, the 2010 murder of Alfonso “Joey” McClinton (“McClinton”). The State of New York arrested and prosecuted GMG YGz member Joseph Johnson, a/k/a “Juice,” for the killing.[1] However, Ballistics, video evidence, and eyewitness testimony revealed that there was a second shooter involved in Mr. McClinton’s murder. GARCIA was that second shooter. When GARCIA became concerned that Johnson might cooperate with law enforcement, GARCIA took steps to prevent Johnson from identifying GARCIA as the person with whom he committed the murder.
* * *
GARCIA, 33, of the Bronx, New York, was previously found guilty of murder in aid of racketeering, narcotics conspiracy, murder while engaged in a narcotics conspiracy, murder through the use of a firearm, use of a firearm in furtherance of a drug trafficking offense, and attempted witness tampering offenses. Judge Rakoff imposed the following sentences on each count of conviction, with the sentences on Counts One, Two, Three, Four, and Six to run concurrently with one another, and the sentence on Count Five to run consecutively to all other sentences:
COUNT
SENTENCE
Count One: Murder in Aid of Racketeering
Life in prison
Count Two: Conspiracy to Distribute Controlled Substances
35 years in prison
Count Three: Murder While Engaged in a Narcotics Conspiracy
40 years in prison
Count Four: Murder Through the Use of a Firearm
40 years in prison
Count Five: Possession of a Firearm During and in Relation to a Drug Trafficking Crime
Five years in prison
Count Six: Attempted Witness Tampering
10 years in prison
Mr. Williams praised the investigative work of the Drug Enforcement Administration, the New York City Police Department, the Department of Homeland Security, Homeland Security Investigations, and the U.S. Marshals Service.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the U.S. using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
This case is being handled by the Office’s Narcotics Unit. Assistant U.S. Attorneys Jacob Gutwillig, Maggie Lynaugh, and Jonathan Bodansky, with the assistance of paralegal specialist Owen Foley, are in charge of the prosecution.
[1] Johnson was convicted at trial of second-degree murder in The People of the State of New York v. Joseph Johnson, Index Number 4311/2010. On February 3, 2022, the verdict against Johnson was vacated. Johnson subsequently pled guilty to manslaughter and is serving a 17-year sentence.
Former Chair of Grafton Select Board Arrested for Allegedly Defrauding Investors in His Cannabis CompanyRead the Press Release
BOSTON – A former chair of the Select Board in Grafton, Mass. was arrested today on charges of defrauding investors in his cannabis company and for conducting an unlawful monetary transaction.
Bruce W. Spinney, III, 49, of Grafton, was indicted yesterday on three counts of wire fraud related to a scheme to defraud investors in Spinney’s marijuana company as well as one count of conducting an unlawful monetary transaction. Spinney was arrested today and, following an initial appearance in federal court in Worcester, was released on conditions.
According to the indictment, after resigning as Chair of the Grafton Select Board in August 2019, Spinney solicited hundreds of thousands of dollars from several investors for his new marijuana dispensary venture, Noble Manna, Inc. Prior to incorporating Noble Manna in October 2019, Spinney operated Spinney Enterprises, a rental equipment and rental linen business that accumulated large amounts of debt.
The indictment alleges that Spinney told Noble Manna investors that he would be using the money toward the construction and licensing of marijuana dispensaries in Graton and Mendon, Mass. However, it is alleged that contrary to his representations about his use of the investment money, Spinney immediately used investors’ money to pay-down previously existing debts for his linen and rental business including payments to debt collectors, outstanding business loans, cash withdrawals and personal expenses.
It is further alleged that in March 2020, Spinney used the proceeds of the wire fraud scheme to transfer $27,000 to pay a debt related to his rental business in an unlawful monetary transaction.
Each of the wire fraud charges provide for a sentence of up to 20 years in prison, three years of supervised release and fine of $250,000, or twice the gross gain or loss, whichever is greater. The charge of unlawful monetary transaction provides for a sentence up to 10 years in prison, two years of supervised release, and a fine of $250,000, or twice the amount involved in the transaction. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Massachusetts Inspector General Jeffrey S. Shapiro made the announcement today. Assistant U.S. Attorneys Neil J. Gallagher Jr. of the Public Corruption & Special Prosecutions Unit is prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former Assistant City Attorney and Police Officer Sentenced in an Approximately $15M PPP Fraud SchemeRead the Press Release
ATLANTA – Shelitha Robertson, who formerly served as an Assistant City Attorney and police officer for the City of Atlanta, has been sentenced for fraudulently obtaining approximately $15 million in loans under the Paycheck Protection Program (PPP), a federal stimulus program authorized as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
“Motivated by greed, Robertson deceptively obtained funds that were designated to provide emergency financial relief to struggling small businesses during the COVID-19 pandemic,” said U.S. Attorney Ryan K. Buchanan. “We will continue to work with our law enforcement partners to investigate and prosecute criminals who stole pandemic relief funds.”
“Today the defendant in this case was held accountable for fraudulently obtaining millions of dollars through the Paycheck Protection Program and using those stolen funds to enrich herself, while small businesses were struggling during the pandemic,” said Kyle A. Myles, Special Agent in Charge of the Federal Deposit Insurance Corporation, Office of Inspector General, Atlanta Region. “The FDIC OIG remains committed to working with our law enforcement partners to pursue and bring to justice those who took advantage of such pandemic relief programs and threatened the integrity of our Nation’s financial institutions.”
“Scheming to divert vital funds from legitimate businesses that needed support during the pandemic undermines the integrity of SBA’s programs,” said SBA OIG’s Eastern Region Special Agent in Charge Amaleka McCall-Braithwaite. “Our office remains steadfast in pursuing those who exploit federal programs for personal gain. I would like to thank the US. Attorney’s Office and our law enforcement partners for their unwavering commitment to the pursuing justice in this case.”
“The Treasury Inspector General for Tax Administration will aggressively pursue individuals who commit fraud against the American taxpayer by making false claims to obtain Paycheck Protection Program loans intended for legitimate businesses who needed it to survive the pandemic,” stated Special Agent in Charge Mark H Morini, Jr. “We want to express our gratitude to our federal partners and the U.S. Attorney’s Office for their assistance in holding these individuals to account.”
According to U.S. Attorney Buchanan, the court documents and evidence presented at trial: Shelitha Robertson and other co-conspirators submitted PPP loan applications on behalf of four businesses that she owned and controlled. The loan applications falsely inflated the number of employees and average monthly payroll for each of the four businesses, resulting in larger PPP loans than Robertson would be legitimately entitled to obtain. Robertson and her co-conspirator, Chandra Norton, also submitted false tax documents to support the inflated statements in each loan application. Robertson used the loan proceeds to purchase luxury items, including a 10-carat diamond ring. She also transferred funds to Chandra Norton and family members.
Shelitha Robertson, 62, of Atlanta, Georgia, was sentenced by U.S. District Judge Steven D. Grimberg to seven years, three months in prison to be followed by three years of supervised release. A jury convicted Robertson of one count of conspiracy to commit wire fraud, three counts of wire fraud, and one count of money laundering on December 19, 2023.
This case was investigated by the Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG), the U.S. Small Business Administration Office of Inspector General (SBA-OIG), and Treasury Inspector General for Tax Administration (TIGTA).
Assistant U.S. Attorneys Bernita B. Malloy and Trial Attorney Ariel Glasner of the Department of Justice Criminal Division’s Fraud Section prosecuted the case.
The Fraud Section leads the Criminal Division’s prosecution of fraud schemes that exploit the PPP. Since the inception of the CARES Act, the Fraud Section has prosecuted over 192 defendants in more than 121 criminal cases and has seized over $78 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real estate properties and luxury items purchased with such proceeds. More information can be found at https://www.justice.gov/criminal-fraud/ppp-fraud.
In May 202, 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 augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Florence Man Sentenced to Federal Prison for Possessing Firearm in Furtherance of Drug TraffickingRead the Press Release
FLORENCE, S.C. — Kendric Lanorris Cannon, 47, of Florence, was sentenced to five years in federal prison after pleading guilty to possessing a firearm in furtherance of drug trafficking.
Evidence presented to the court showed that on the evening of Feb. 2, 2022, officers with Florence Police Department encountered Cannon as the sole occupant of a vehicle, which was parked in the parking lot of an apartment complex in Florence. Officers approached the vehicle to verify who Cannon was and why he was there. Cannon said he lived there and exited the vehicle. As Cannon exited, law enforcement could see a firearm and a bag of white powder on the driver’s side floorboard. In a subsequent search of the car, law enforcement found a .380 caliber handgun, more than 100 grams of cocaine divided up into baggies, and a digital scale. Cannon later admitted that the firearm was his and that there was cocaine in the car.
United States District Judge Joseph Dawson, III sentenced Cannon to 60 months imprisonment, to be followed by a three-year term of court-ordered supervision. There is no parole in the federal system.
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 (ATF) and the Florence Police Department. Assistant U.S. Attorney Katherine Flynn is prosecuting the case.
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Five Individuals Arrested for Defrauding Medicare of over $15M Through Sham Hospices and Money LaunderingRead the Press Release
Five individuals were arrested yesterday in Los Angeles on criminal charges related to their roles in a years-long scheme to defraud Medicare of more than $15 million through sham hospice companies and then to launder the fraud proceeds.
According to an indictment unsealed yesterday, three of the defendants—Petros Fichidzhyan, 43, of Granada Hills, California, Juan Carlos Esparza, 32, of Valley Village, California, and Karpis Srapyan, 34, of Van Nuys, California—allegedly operated a series of sham hospice companies that were purportedly owned by foreign nationals but were in fact owned by the three defendants. The defendants allegedly used the foreign nationals’ identifying information to open bank accounts, to sign property leases, and, by Fichidzhyan, to make phone calls to Medicare, and submitted false and fraudulent claims to Medicare for hospice services. In submitting the false claims, the defendants misappropriated the identifying information of doctors, claiming to Medicare that the doctors had determined hospice services were necessary, when in fact the purported recipients of these hospice services were not terminally ill and had never requested nor received care from the sham hospices. In some instances, the defendants falsely claimed that the same beneficiary received services from multiple sham hospices.
Fichidzhyan, Esparza, and Srapyan, together with defendants Susanna Harutyunyan, 38, and Mihran Panosyan, 45, both of Winnetka, California, then allegedly laundered the proceeds fraudulently obtained from Medicare. The defendants are alleged to have spent the money on real estate and vehicles, among other things.
Fichidzhyan, Esparza, and Srapyan are charged with conspiracy to commit health care fraud and aggravated identity theft. Fichidzhyan and Esparza are also charged with health care fraud. All of the defendants are charged with conspiracy to launder money and money laundering. Fichidzhyan is further charged with making false statements. If convicted, all five defendants face a maximum penalty of at least 40 years in prison. Fichidzhyan, Esparza, and Srapyan face an additional mandatory minimum of two years in prison on the aggravated identity theft count.
The charges announced today are the most recent in the Justice Department’s ongoing effort to combat hospice fraud in the greater Los Angeles area.
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; Acting Assistant Director in Charge Krysti E. Hawkins of the FBI Los Angeles Field Office; and Special Agent in Charge Timothy B. DeFrancesca of the Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Los Angeles Regional Office made the announcement.
The FBI and HHS-OIG are investigating the case.
Trial Attorneys Eric C. Schmale and Sarah E. Edwards of the Criminal Division’s Fraud Section are prosecuting the case.
The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, currently comprised of nine strike forces operating in 27 federal districts, has charged more than 5,400 defendants who collectively have billed federal health care programs and private insurers more than $27 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Five Defendants Found Guilty for Their Roles in $250 Million Fraud SchemeRead the Press Release
MINNEAPOLIS – Five individuals have been convicted by a federal jury for their roles in a $250 million fraud scheme that exploited a federally-funded child nutrition program, announced U.S. Attorney Andrew M. Luger.
“I am extraordinarily proud of the prosecution team and our law enforcement partners who have spent years investigating this highly complex and widespread fraud scheme,” said U.S. Attorney Andrew Luger.
“With today’s convictions, a total of 23 individuals have been held accountable for their roles in this egregious conspiracy to steal millions of taxpayer dollars.”
“Exploiting a program designed to feed underserved children during the COVID pandemic is reprehensible,” said Special Agent in Charge Alvin M. Winston of FBI Minneapolis. “Today's verdict is a clear warning to those who exploit the most vulnerable for personal gain. Justice will be swift and severe. The FBI, alongside our law enforcement partners and the U.S. Attorney's Office, stand united in condemning such acts and ensuring that those who prey on others face the consequences they deserve.”
“This verdict highlights the meticulous work of IRS Criminal Investigation special agents and their fellow law enforcement partners who brought to justice individuals who took advantage of food programs when children and families needed them the most,” said Jason Bushey, Acting Special Agent in Charge, IRS Criminal Investigation, Chicago Field Office. “This investigation is not over, and today’s verdict highlights the fact that a large-scale fraud of this scope and nature will not be ignored, and those who engage in fraud schemes like this will not evade justice.”
Inspector in Charge Bryan Musgrove of the Denver Division stated, “Today’s verdict reaffirms how critical a role the U.S. Postal Inspection Service plays in protecting the American consumer from these types of fraudulent schemes and in ensuring that the nation’s U.S. mail stream is not used by criminals to prey upon our citizens and government financial aid programs. The bold egregious nature in which these fraudsters abused government financial assistance programs designed to feed low-income children during the Covid pandemic illustrates their callous disregard for human decency and overall greed. This investigation is a tremendous example of how the U.S. Postal Inspection Service and our federal law enforcement partners can work side by side in an effort to bring these fraudsters to justice.”
Following a six-week trial in U.S. District Court before Judge Nancy E. Brasel, a federal jury convicted Abdiaziz Shafii Farah, 35, Mohamed Jama Ismail, 51, Abdimajid Mohamed Nur, 23, Mukhtar Mohamed Shariff, 33, and Hayat Mohamed Nur, 27, for their roles in the $250 million Feeding Our Future Fraud scheme. Sentencing hearings will be scheduled at a later date.
As proven at trial, the convicted defendants devised and carried out a $40 million fraud scheme to defraud the Federal Child Nutrition Program. The convicted defendants obtained, misappropriated, and laundered millions of dollars in program funds that were intended as reimbursements for the cost of serving meals to children. The convicted defendants exploited changes in the program intended to ensure underserved children received adequate nutrition during the COVID-19 pandemic. The convicted defendants also created and submitted false documentation. They submitted fraudulent meal count sheets purporting to document the number of children and meals served at each site and false invoices purporting to document the purchase of food to be served to children at the sites. The convicted defendants also submitted fake attendance rosters purporting to list the names and ages of the children receiving meals at the sites each day. These rosters were fabricated and created using fake names.
The Federal Child Nutrition Program, administered by the U.S. Department of Agriculture (USDA), is a federally-funded program designed to provide free meals to children in need. The USDA’s Food and Nutrition Service administers the program throughout the nation by distributing federal funds to state governments. In Minnesota, the Minnesota Department of Education (MDE) administers and oversees the Federal Child Nutrition Program. Meals funded by the Federal Child Nutrition Program are served by “sites.” Each site participating in the program must be sponsored by an authorized sponsoring organization. Sponsors must submit an application to MDE for each site. Sponsors are also responsible for monitoring each of their sites and preparing reimbursement claims for their sites. The USDA then provides MDE federal reimbursement funds on a per-meal basis. MDE provides those funds to the sponsoring agency who, in turn, pays the reimbursements to the sites under its sponsorship. The sponsoring agency retains 10 to 15 percent of the funds as an administrative fee.
During the COVID-19 pandemic, the USDA waived some of the standard requirements for participation in the Federal Child Nutrition Program. Among other things, the USDA allowed for-profit restaurants to participate in the program, as well as allowed for off-site food distribution to children outside of educational programs.
In total, seventy defendants have been charged across 14 indictments and six criminal informations. To date, eighteen defendants have entered guilty pleas. The following five defendants, named in the United States v. Abdiaziz Shafii Farah, et al., 22-CR-124 (NEB/TNL) indictment, were found guilty by a federal jury:
- Abdiaziz Shafii Farah, of Savage, Minnesota, was convicted of one count of conspiracy to commit wire fraud, six counts of wire fraud, one count of conspiracy to commit federal programs bribery, two counts of federal programs bribery, one count of conspiracy to commit money laundering, 11 counts of money laundering, and one count of false statements in a passport application. Abdiaziz Farah was an owner and operator of Empire Cuisine and Market LLC, a for-profit restaurant that participated in the scheme as a site, as a vendor for other sites, and as an entity to launder fraudulent proceeds. Empire Cuisine and Market and other affiliated sites received more than $28 million in fraudulent Federal Child Nutrition Program funds.
- Mohamed Jama Ismail, of Savage, Minnesota, was convicted of one count of conspiracy to commit wire fraud, one count of conspiracy to commit money laundering, and one count of money laundering. Ismail was an owner and operator of Empire Cuisine and Market LLC, a for-profit restaurant that participated in the scheme as a site, as a vendor for other sites, and as an entity to launder fraudulent proceeds. Empire Cuisine and Market and other affiliated sites received more than $28 million in fraudulent Federal Child Nutrition Program funds.
- Abdimajid Mohamed Nur, of Shakopee, Minnesota, was convicted of one count of conspiracy to commit wire fraud, four counts of wire fraud, one count of conspiracy to commit money laundering, and four counts of money laundering. Abdimajid Nur created Nur Consulting LLC to receive and launder Federal Child Nutrition Program funds from Empire Cuisine and Market, ThinkTechAct, and other entities involved in the scheme.
- Mukhtar Mohamed Shariff, of Bloomington, Minnesota, was convicted of one count of conspiracy to commit wire fraud, one count of wire fraud, one count of conspiracy to commit money laundering, and one count of money laundering. Shariff was the chief executive officer of Afrique Hospitality Group, a company used to fraudulent obtain and launder Federal Child Nutrition Program funds.
- Hayat Mohamed Nur, of Eden Prairie, Minnesota, was convicted of one count of conspiracy to commit wire fraud and two counts of wire fraud. Hayat Nur, the sister of Abdimajid Nur, participated in the scheme by creating and submitting fraudulent meal count sheets, attendance rosters, and invoices.
United States Attorney Andrew M. Luger thanks the FBI, IRS – Criminal Investigations, and the U.S. Postal Inspection Service for their collaboration and skilled investigative work on this case.
Assistant U.S. Attorneys for the District of Minnesota Joseph H. Thompson, Harry M. Jacobs, Matthew S. Ebert, Chelsea A. Walcker, and Daniel W. Bobier tried the case. Assistant U.S. Attorney Craig Baune is handling the seizure and forfeiture of assets.
Federal Jury Finds Man Guilty of Violent Assault on the Bois Forte Indian ReservationRead the Press Release
MINNEAPOLIS – A federal jury found a Bois Forte man guilty of two counts of assault resulting in serious and substantial bodily injury, respectively, announced U.S. Attorney Andrew M. Luger.
According to evidence presented at trial and court documents, beginning on or about March 13, 2023, Mark Allen Isham, 61, repeatedly and violently assaulted an intimate partner staying at his residence within the exterior boundaries of the Bois Forte Band of Chippewa Indian Reservation. The physical assault escalated on March 19, 2023, when Isham became angry and started punching the victim with a closed fist. Isham kept his victim trapped inside the house for days without access to the victim’s wheelchair. On March 24, 2023, the victim managed to call 911 while Isham was outside chopping firewood. Two officers arrived at Isham’s home shortly afterwards. Isham initially denied the victim was inside, prompting the victim to eventually call out to responding officers. The victim’s visible injuries included a split lip, black eye, and bruising on their arms, legs, and head. An ambulance was called to transport the victim to a local hospital. The victim’s injuries required surgery to repair a broken jaw resulting from the violent assault at Isham’s residence.
Following a five-day trial in U.S. District Court before Judge Katherine M. Menendez, Isham was found guilty on one count of assault resulting in serious bodily injury and one count of assault resulting in substantial bodily injury. A sentencing hearing will be scheduled at a later date.
This case is the result of an investigation conducted by the FBI and the Bois Forte Police Department.
Assistant U.S. Attorneys Carla J. Baumel and Nichole J. Carter tried the case.
Federal Jury Convicts Mason Wilson of Child Abuse and Child Neglect in Indian CountryRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma announced today that Mason Anthony Wilson, age 28, of Gore, Oklahoma, was found guilty by a federal jury of one count of Child Abuse in Indian Country and one count of Child Neglect in Indian Country.
The jury trial began with testimony on Monday, June 3, 2024, and concluded on Wednesday, June 5, 2024, with the guilty verdicts.
During the trial, the United States presented evidence that Wilson caused injuries to a 2-month-old baby, including 10 fractured bones and multiple bruises, and then failed to provide medical care for the baby. The crimes occurred in Muskogee County, within the boundaries of the Cherokee Nation Reservation of Oklahoma, in the Eastern District of Oklahoma.
The guilty verdicts were the result of investigations by the Muskogee Police Department and the Federal Bureau of Investigation.
The Honorable Judge Kea W. Riggs, U.S. District Judge in the United States District Court for the District of New Mexico, sitting by assignment, presided over the trial in Muskogee and ordered the completion of a presentence report. The sentencing will be scheduled following completion of the report. Wilson was remanded into the custody of the United States Marshal until sentencing.
Assistant United States Attorneys Sarah McAmis and Jessica Bove represented the United States.
Escaped felon arrested after drive-by shooting, chase in Billings sentenced to more than three years in prison for illegal possession of firearmRead the Press Release
BILLINGS — A felon who escaped from a pre-release center, committed a drive by shooting at a house in Billings and then led law enforcement on a chase in a stolen vehicle before crashing was sentenced yesterday to three years and 10 months in prison, to be followed by three years of supervised release, for conviction of a firearms crime, U.S. Attorney Jesse Laslovich said today.
The defendant, Azuriah Austin Stallcup, 20, of Billings, pleaded guilty in February to prohibited person in possession of firearm and ammunition.
U.S. District Judge Susan P. Watters presided.
In court documents, the government alleged that on July 6, 2023, Stallcup was a wanted escapee from a Butte pre-release center when he travelled to Billings, obtained a stolen .40-caliber firearm and repeatedly fired it from his stolen vehicle into a house. Residential surveillance cameras identified the vehicle and Stallcup. Billings Police Department officers tracked Stallcup the next day to a house. When officers attempted to arrest Stallcup as he was leaving in the stolen vehicle, Stallcup rammed one of the police cars, plowed into a nearby civilian vehicle and fled on foot. Officers chased Stallcup and saw him throw a pistol over a fence. Police officers, with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives, arrested Stallcup after being tackled by the owner of the car he had just hit. Officers recovered a .40-caliber pistol. Stallcup had been convicted of assault with a weapon, a felony, in Montana District Court and was prohibited from possessing firearms.
Assistant U.S. Attorney Colin M. Rubich prosecuted the case. The Billings Police Department, with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives and U.S. Marshals Service, conducted the investigation.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. For more information about Project Safe Neighborhoods, please visit Justice.gov/PSN.
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Dual U.S.-Russian citizen pleads guilty to sending weapon components to RussiaRead the Press Release
ALEXANDRIA, Va. – A dual U.S.-Russian citizen pled guilty today to conspiracy to violate the Export Control Reform Act by exporting firearm parts, components, and ammunition to Russia without the required authorization.
According to court documents, from at least July 2020 to 2023, Dimitry Timashev, 58, coordinated with an associate in Russia to send weapon parts from the United States to Russia. In exchange, the associate paid tuition for Timashev’s daughter and rent for an apartment in Ekaterinburg, Russia.
Timashev’s associate provided the defendant with the names and addresses to which the firearm components and ammunition were sent. Before July 6, 2022, all the packages were shipped to Russia. After the Russian invasion of Ukraine in February 2022, Timashev could no longer create a U.S. Postal Service label to send packages of firearm components to Russia. Instead, Timashev’s associate directed him to send the components to his relative’s apartment in Kazakhstan, from where the goods would be sent to Russia.
Timashev attempted to send multiple packages of components to Kazakhstan, knowing they were ultimately bound for Russia. He also knew exporting the parts through Kazakhstan to Russia required a license from the Department of Commerce that he did not have. Timashev concealed the illegal exports by misrepresenting the contents of the shipments on the accompanying manifests.
Timashev is scheduled to be sentenced on Nov. 8. He 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, Matt Olsen, Assistant Attorney General for the Justice Department’s National Security Division (NSD); and Derek W. Gordon, Special Agent in Charge of Homeland Security Investigations (HSI) Washington, D.C., made the announcement after Senior U.S. District Judge Claude M. Hilton accepted the plea.
Homeland Security Investigations; ATF; Department of Commerce’s Bureau of Industry and Security, Office of Export Enforcement; U.S. Postal Inspection Service and U.S. Customs and Border Protection are investigating the case.
Assistant U.S. Attorney Ronald L. Walutes Jr. for the Eastern District of Virginia and Trial Attorney Tracy Varghese of NSD’s Counterintelligence and Export Control Section 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-111.
This release was revised on June 12, 2024, to reflect the valuable contributions of of investigating agencies.
Dual U.S.-Russian Citizen Pleads Guilty to Sending Weapon Components to RussiaRead the Press Release
A dual U.S.-Russian citizen pleaded guilty today to conspiracy to violate the Export Control Reform Act by exporting firearm parts, components, and ammunition to Russia without the required authorization.
According to court documents, from at least July 2020 to 2023, Dimitry Timashev, 58, coordinated with an associate in Russia to send weapon parts from the United States to Russia. In exchange, the associate paid tuition for Timashev’s daughter and rent for an apartment in Ekaterinburg, Russia.
Timashev’s associate provided him with the names and addresses to which the firearm components and ammunition were sent. Before July 6, 2022, all the packages were shipped to Russia. After the Russian invasion of Ukraine in Feb. 2022, Timashev could no longer create a U.S. Postal Service label to send packages of firearm components to Russia. Instead, Timashev’s associate directed him to send the components to his relative’s apartment in Kazakhstan, from where the goods would be sent to Russia.
Timashev sent multiple packages of components to Kazakhstan, knowing they were ultimately bound for Russia. He also knew exporting the parts through Kazakhstan to Russia required a license from the Department of Commerce that he did not have. Timashev concealed the illegal exports by misrepresenting the contents of the shipments on the accompanying manifests.
Timashev pleaded guilty to conspiracy to violate the Export Control Reform Act by exporting firearm parts, components, and ammunition to Russia without the required authorization. He is scheduled to be sentenced on Nov. 8 and faces a maximum penalty of five years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division, U.S. Attorney Jessica D. Aber for the Eastern District of Virginia and Special Agent in Charge Derek W. Gordon of Homeland Security Investigations (HSI) Washington, D.C., made the announcement.
Homeland Security Investigations; ATF; Department of Commerce’s Bureau of Industry and Security, Office of Export Enforcement; U.S. Postal Inspection Service and U.S. Customs and Border Protection are investigating the case.
Trial Attorney Tracy Varghese of the National Security Division’s Counterintelligence and Export Control Section and Assistant U.S. Attorney Ron Walutes for the Eastern District of Virgina are prosecuting the case.
Detroit-Area Man Sentenced to More Than 10 Years in Federal Prison for Maliciously Setting Fires to Commercial Truck TrailersRead the Press Release
RIVERSIDE, California – A Michigan man was sentenced today to 121 months in federal prison for maliciously setting fires to six semi-trailers belonging to a major commercial trucking company in the Inland Empire and High Desert during a 10-month span.
Viorel Pricop, 66, of Allen Park, Michigan, was sentenced by United States District Judge Sunshine S. Sykes, who also ordered him to pay $648,384 in restitution.
At the conclusion of a 16-day trial, a jury on March 12 found Pricop guilty of six counts of arson of vehicle or property in interstate commerce. He has been in federal custody since October 2022.
“This defendant was given a second chance but chose to throw it away and go on a national campaign of revenge,” said United States Attorney Martin Estrada. “By setting fire to trailer after trailer with the drivers inside the trucks, he recklessly put people’s lives at risk. Violent recidivist criminals such as this defendant will only be deterred with consequences and the sentence imposed today does just that.”
“Thanks to the outstanding work by dedicated ATF agents, partners from the New Mexico State Fire Marshal’s Office, and the United States Attorney’s Office from the Central District of California, a serial arsonist was held to justice,” said Special Agent in Charge Brendan Iber. “Our communities deserve to be safe from violent criminals and due to the tireless work by agents, investigators and prosecutors, community members can rest a little easier knowing that an arsonist is no longer setting fires.”
“We’re proud of the work our investigators were able to do with our partners to catch this serial arsonist, and piece together a strong case that helped bring him to justice,” said New Mexico State Fire Marshal Randy Varela. “We’ll continue to work with partners to keep our communities, and our neighbors, safe.”
From December 2021 to September 2022, Pricop maliciously set fire to six semi-trailers belonging to Swift Transportation, a Phoenix-based commercial trucking company. Four of the arsons occurred in San Bernardino County (Newberry Springs, Ludlow, Barstow, and Hesperia) and two occurred in Riverside County (Coachella).
In each of the incidents, the Swift-owned trailer was parked at or near a truck stop when a fire occurred on the trailer portion of the vehicle, mainly on or near the trailer tires.
Pricop set on fire at least 18 additional Swift Transportation semi-trailers in other states from June 2020 to March 2022, according to an affidavit previously filed in this case. These incidents occurred at locations spanning from Barstow, California to McCalla, Alabama, with most incidents occurring along Interstate 10 and Interstate 40, the affidavit states. Federal criminal charges associated with some of these fires were filed against Pricop in the District of New Mexico and the District of Arizona.
Swift Transportation hired a fire investigation consultant to assist with fire scene examinations. A pattern began to develop when multiple reports noted substantially similar methods of lighting the trailers on fire, including where on the vehicles the fires began, and the fact the fires occurred during the middle of the night.
A review of cell tower data near some of the fires showed that a specific device – later found to be a navigation device installed in a commercial tractor-style truck – connected to cell towers near many of the fires at or around the times of the fires. Law enforcement determined that this device was installed on a vehicle operated by Pricop. Law enforcement also identified the cellphone subscribed to Pricop and, after obtaining court authorization, obtained historical cellular data and real-time location information for Pricop’s cellphone. Analysis of this data showed that Pricop’s cellphone was present in the general area of all California fires, as well as the 18 additional fires across the country.
In September 2022, search warrants were executed on Pricop’s tractor-trailer, personal vehicle and residence, yielding additional evidence corroborating his involvement in this series of arsons. This evidence included a gas torch, torch-style lighters, and record keeping documents containing location information, such as cargo pickup and delivery dates which coincided with the time and location of several fires in the series of 24 fires across the country.
Swift Transportation and other trucking companies were victims of thefts between 2010 and 2014. Swift initiated its own investigation into those thefts and utilized bait trailers to catch thieves. In 2015, someone broke into one of the bait trailers and took boxes of electronic goods containing tracking devices. Swift investigators tracked those boxes to a storage facility in Michigan, and local law enforcement in Michigan arrested Pricop in possession of the boxes of electronic goods from the bait trailer.
Pricop was convicted in 2018 in the Eastern District of Michigan for a tax offense and for transportation of stolen goods, charges stemming from the investigation conducted by Swift. Pricop was sentenced to time served in that case, amounting to approximately 26 months’ imprisonment. His term of supervised release ended in June 2019, approximately one year before the arsons in this case began.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, and the New Mexico State Fire Marshal’s Office investigated this matter.
Assistant United States Attorneys Cory L. Burleson, Sean D. Peterson and Mitchell M. Suliman of the Riverside Branch Office prosecuted this case.
Court Imposes Restrictions on Alcohol Addiction Treatment Company to Protect Consumers’ Private InformationRead the Press Release
The Justice Department and the Federal Trade Commission (FTC) announced today that a federal court in Washington, D.C., has entered a settlement that prohibits alcohol addiction treatment company Monument Inc. (Monument) from misrepresenting its data privacy practices and disclosing its customers’ health information to third parties for advertising purposes, and also requires the company to take several measures to safeguard its customers’ personal information. The court also entered a $2.5 million civil penalty judgment against Monument, which is suspended due to the company's inability to pay.
A civil complaint filed today alleges that Monument violated the Federal Trade Commission Act and the Opioid Addiction Recovery Fraud Prevention Act of 2018 by misrepresenting on its alcohol addiction treatment website and elsewhere that it would not disclose its customers’ health information without their express consent and by failing to employ reasonable measures to protect its customers’ data. The complaint alleges that such failures led Monument to disclose thousands of users’ health information to third parties for advertising or other purposes.
“Treatment for substance abuse and addiction is highly personal and sensitive, and companies providing such services must be especially vigilant in safeguarding their customers’ information,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The Justice Department is committed to working with the FTC to protect Americans’ sensitive information.”
“This action continues the FTC’s work to ensure strict limits on how firms handle sensitive health data, rather than putting the onus on consumers to protect themselves,” said Director Samuel Levine of the FTC’s Bureau of Consumer Protection. “Following on the heels of actions against GoodRx, BetterHelp and Premom, the market should be getting the message that consumer health data should be handled with extreme caution.”
Senior Trial Attorney Richard Greene and Assistant Director Zachary Dietert of the Civil Division's Consumer Protection Branch are handling this matter, working in conjunction with staff at the FTC’s Division of Privacy and Identity Protection.
For more information about the Consumer Protection Branch and its enforcement efforts, visit www.justice.gov/civil/consumer-protection-branch. For more information about the FTC, visit www.FTC.gov.
CityMD Agrees to Pay over $12 Million for Alleged False Claims to COVID-19 Uninsured ProgramRead the Press Release
NEWARK, N.J. – W City Medical of the Upper East Side PLLC, Summit Medical Group P.A., Summit Health Management LLC and Village Practice Management Company LLC, which collectively do business as “CityMD,” and manage and operate approximately 177 urgent care practices in New Jersey and New York, have agreed to pay $12.04 million to resolve allegations that they violated the False Claims Act by submitting or causing the submission of false claims for payment for COVID-19 testing to a Health Resources & Services Administration (HRSA) program for uninsured patients.
HRSA’s COVID-19 Claims Reimbursement to Health Care Providers and Facilities for Testing, Treatment, and Vaccine Administration for the Uninsured Program (the “Uninsured Program) provided claims reimbursement to health care providers, generally at Medicare rates, for testing uninsured individuals for COVID-19, treating uninsured individuals with a COVID-19 diagnoses, and administering COVID-19 vaccines to uninsured individuals.
The Justice Department alleges that, from Feb. 4, 2020, through April 5, 2022, CityMD knowingly submitted or caused to be submitted false claims for payment for COVID-19 testing to the Uninsured Program for individuals who had health insurance coverage when CityMD administered those tests. The United States contends that CityMD did not adequately confirm whether those individuals had health insurance coverage before submitting their claims to the Uninsured Program, including but not limited to certain individuals for whom CityMD had health insurance cards on file. The Justice Department further contends that CityMD caused outside laboratories to submit false claims for COVID-19 testing to the Uninsured Program in connection with individuals who had health insurance coverage by issuing requisition forms erroneously indicating that patients were uninsured.
CityMD received credit in the settlement under the department’s guidelines for taking voluntary disclosure, cooperation, and remediation into account in False Claims Act cases. CityMD cooperated with the United States’ investigation by, among other things, voluntarily contracting with a third party to assist the United States in determining the amount of the losses the United States contends were caused by claims submitted by CityMD to the Uninsured Program for patients who had health insurance as described above.
“Uninsured Americans who were at risk from COVID-19 were covered by emergency funding programs that made available to them the testing, vaccines and treatments that they needed. The alleged misuse of these funds is something we cannot and will not tolerate. Today’s settlement ensures that the money that was obtained inappropriately will be returned to the government.”
U.S. Attorney Philip R. Sellinger
“The Uninsured Program provided critical financial support for COVID-19 related testing and treatment for uninsured Americans during the height of the pandemic,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “Today’s settlement reflects the Department’s commitment to ensuring that the pandemic relief programs created by Congress were used as intended.”
This civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by Steven Kitzinger, a patient of CityMD. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. The qui tam case is captioned United States ex rel. Kitzinger v. City Practice Group of New York LLC d/b/a CityMD, Civ. No. 2:20-cv-20111-SRC-CLW (D.N.J.). Mr. Kitzinger will receive $2,046,308 as his share of the recovery.
The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, and the U.S. Attorney’s Office for the District of New Jersey, with assistance from the U.S. Department of Health and Human Services Office of Inspector General.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across the federal 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 actors committing civil and criminal fraud and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form. Tips and complaints about other types of potential fraud, waste, abuse, and mismanagement, can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
Trial Attorney Daniel Meyler of the Civil Division’s Fraud Section and Assistant U.S. Attorney Mark Orlowski for the District of New Jersey handled this matter.
The claims resolved by the settlement are allegations only. There has been no determination of liability.
citymd.settlement.pdfCityMD Agrees to Pay over $12M for Alleged False Claims to the COVID-19 Uninsured ProgramRead the Press Release
City Medical of the Upper East Side, PLLC, Summit Medical Group, P.A., Summit Health Management, LLC, and Village Practice Management Company, LLC, which collectively do business as CityMD, and manage and operate approximately 177 urgent care practices in New Jersey and New York, have agreed to pay $12,037,109 to resolve allegations that they violated the False Claims Act by submitting or causing the submission of false claims for payment for COVID-19 testing to a Health Resources and Services Administration (HRSA) program for uninsured patients.
HRSA’s COVID-19 Claims Reimbursement to Health Care Providers and Facilities for Testing, Treatment, and Vaccine Administration for the Uninsured Program (the Uninsured Program) provided claims reimbursement to health care providers, generally at Medicare rates, for testing uninsured individuals for COVID-19, treating uninsured individuals with a COVID-19 diagnoses, and administering COVID-19 vaccines to uninsured individuals.
The Justice Department alleges that, from Feb. 4, 2020, through April 5, 2022, CityMD knowingly submitted or caused to be submitted false claims for payment for COVID-19 testing to the Uninsured Program for individuals who had health insurance coverage when CityMD administered those tests. The United States contends that CityMD did not adequately confirm whether those individuals had health insurance coverage before submitting their claims to the Uninsured Program, including but not limited to certain individuals for whom CityMD had health insurance cards on file. The Justice Department further contends that CityMD caused outside laboratories to submit false claims for COVID-19 testing to the Uninsured Program in connection with individuals who had health insurance coverage by issuing requisition forms erroneously indicating that patients were uninsured.
CityMD received credit in the settlement under the department’s guidelines for taking voluntary disclosure, cooperation, and remediation into account in False Claims Act cases. CityMD cooperated with the United States’ investigation by, among other things, voluntarily contracting with a third party to assist the United States in determining the amount of the losses the United States contends were caused by claims submitted by CityMD to the Uninsured Program for patients who had health insurance as described above.
“The Uninsured Program provided critical financial support for COVID-19 related testing and treatment for uninsured Americans during the height of the pandemic,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “Today’s settlement reflects the department’s commitment to ensuring that the pandemic relief programs created by Congress were used as intended.”
“Uninsured Americans who were at risk from COVID-19 were covered by emergency funding programs that made available to them the testing, vaccines, and treatments that they needed,” said U.S. Attorney Philip R. Sellinger for the District of New Jersey. “The alleged misuse of these funds is something we cannot and will not tolerate. Today’s settlement ensures that the money that was obtained inappropriately will be returned to the government.”
This civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by Stephen Kitzinger, a patient of CityMD. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. The qui tam case is captioned United States ex rel. Kitzinger v. City Practice Group of New York LLC d/b/a CityMD, Civ. No. 2:20-cv-20111-SRC-CLW (D.N.J.). Mr. Kitzinger will receive $2,046,308 as his share of the recovery.
The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, and the U.S. Attorney’s Office for the District of New Jersey, with assistance from the Department of Health and Human Services Office of Inspector General.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Justice Department in partnership with agencies across the federal 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 actors committing civil and criminal fraud and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Justice Department’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form. Tips and complaints about other types of potential fraud, waste, abuse, and mismanagement, can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
Trial Attorney Daniel Meyler of the Civil Division’s Fraud Section and Assistant U.S. Attorney Mark Orlowski for the District of New Jersey handled this matter.
The claims resolved by the settlement are allegations only. There has been no determination of liability.
SettlementChief Investment Officer of Allianz Global Investors U.S. Pleads Guilty to Investment Adviser FraudRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today the guilty plea of GREGOIRE TOURNANT, the former chief investment officer and co-lead portfolio manager for a series of private investment funds managed by Allianz Global Investors U.S. LLC (“AGI”), to investment adviser fraud. AGI and two other AGI employees previously pled guilty, and AGI paid more than $3 billion in restitution to the innocent victims of this fraud, paid a criminal fine of approximately $2.3 billion, and forfeited approximately $463 million to the Government. TOURNANT pled guilty today before U.S. District Judge Laura Taylor Swain, and he is scheduled to be sentenced on October 16, 2024.
U.S. Attorney Damian Williams said: “Gregoire Tournant and his co-conspirators lied to investors, secretly exposed them to risk, and as Tournant has now admitted, sent victims altered risk reports. Today’s guilty plea is the culmination of a multi-year investigation and prosecution that has held wrongdoers responsible, made victims whole, and demonstrated this Office’s resolve to pursue even the most sophisticated of financial crimes.”
According to the allegations contained in the Indictments, Superseding Information, and other filings and statements made in court:
Between 2014 and 2020, TOURNANT was the chief investment officer of a set of private funds at AGI known as the Structured Alpha Funds. These funds were marketed largely to institutional investors, including pension funds for workers all across America. TOURNANT and his co-defendants misled these investors about the risk associated with their investments. To conceal the risk associated with how the Structured Alpha Funds were being managed, TOURNANT and his co-defendants provided investors with altered documents to hide the true riskiness of the funds’ investments, including that investments were not sufficiently hedged against risks associated with a market crash. In March 2020, following the onset of market declines brought on by the COVID-19 pandemic, the Structured Alpha Funds lost in excess of $7 billion in market value, including over $3.2 billion in principal, faced margin calls and redemption requests, and ultimately were shut down.
On May 17, 2022, AGI pled guilty to securities fraud in connection with this fraudulent scheme and later was sentenced to a pay a criminal fine of approximately $2.3 billion, forfeit approximately $463 million, and pay more than $3 billion in restitution to the investor victims. TOURNANT’s co-defendants, Trevor Taylor and Stephen Bond-Nelson, previously pled guilty on March 8, 2022, and March 3, 2022, respectively.
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TOURNANT, 57, of Basalt, Colorado, pled guilty to two counts of investment adviser fraud, each of which carries a maximum sentence of five years in prison. In connection with his plea, TOURNANT agreed to forfeit approximately $17 million in paid and deferred compensation traceable to his commission of the fraud.
The maximum potential sentence in this case is prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Williams praised the outstanding work of the U.S. Postal Inspection Service and the Special Agents of the U.S. Attorney’s Office. He also expressed appreciation for the Securities Exchange Commission, which previously initiated a civil proceeding against TOURNANT.
This prosecution is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Margaret Graham, Nicholas Folly, Allison Nichols, Thomas Burnett, Sarah Mortazavi, and Nicolas Roos are in charge of the prosecution.
Catoosa Resident Sentenced to 15 Years for Violent Assault Against Intimate PartnerRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that James Tyler Garbey, age 36, of Catoosa, Oklahoma, was sentenced to 120 months in prison for one count of Assault with a Dangerous Weapon with Intent to do Bodily Harm in Indian Country, and 60 consecutive months in prison for one count of Assault Resulting in Substantial Bodily Injury to a Spouse or Intimate Partner in Indian Country, for a total of 180 months in prison.
The charges arose from investigations by the Federal Bureau of Investigation and the Wagoner County Sheriff’s Office.
On December 12, 2023, Garbey pleaded guilty to the charges. According to investigators, on July 19, 2023, Garbey broke into the victim’s residence, waited for the victim to arrive, then beat the victim before dragging her from the residence at knifepoint to a waiting truck. The ordeal left the victim with substantial bodily injury. The crime occurred in Wagoner County, within the boundaries of the Muscogee (Creek) Nation Reservation, in the Eastern District of Oklahoma.
The Honorable Ronald A. White, Chief Judge in the United States District Court for the Eastern District of Oklahoma, presided over the hearing. Garbey will remain in custody of the U.S. Marshals pending transportation to a designated United States Bureau of Prisons facility to serve a non-paroleable sentence of incarceration.
Assistant United States Attorney Michael E. Robinson represented the United States.
California man sentenced for drug distribution, money laundering, and human smuggling schemeRead the Press Release
Tacoma – A 28-year-old California man was sentenced Thursday in U.S. District Court in Tacoma to 66 months in prison and four years of supervised release for dealing fentanyl, laundering drug money, and arranging for people to be smuggled across the U.S. Mexico border, announced U.S. Attorney Tessa M. Gorman. Andre Jackson was identified as a key distributor of narcotics in the Kitsap County and Pierce County areas. At the sentencing hearing Chief U.S. District Judge David G. Estudillo said, “Drug dealing is of course dangerous” and when you engage in human smuggling “you were making money off of vulnerable people."
According to records filed in the case, Jackson was in contact with a Mexican-based source of supply named “Pacheco.” Working at Pacheco’s direction Jackson coordinated the delivery of drugs from California to Washington State and the laundering of drug proceeds back to Pacheco, and his associates, in Mexico. At times, Jackson would deliver drugs in person from California to Washington. For example, in August of 2021, he delivered 3500 fentanyl pills to a person working with law enforcement. That deal was conducted at the Tacoma Mall. Later that day, he made a second smaller drug delivery to a codefendant at a grocery store parking lot in Bremerton.
The investigation also revealed Jackson wired drug proceeds from multiple Bremerton and Silverdale, Washington, locations to individuals in Mexico. Throughout August, September, and October 2021, Jackson sent money to sources in Mexico via Money Gram, CashApp or Western Union from various locations in Kitsap and Pierce Counties.
Finally, during the drug and money laundering investigation, law enforcement identified Jackson as someone facilitating the smuggling of non-citizens across the U.S./Mexican border. Jackson used various social media channels to recruit drivers who would smuggle non-citizens across the border or pick them up near the border and drive them north. A number of the recruited drivers were apprehended by law enforcement with the non-citizens in their vehicles.
Jackson was indicted and arrested in November 2022. In February 2024, he pleaded guilty to conspiracy to distribute controlled substances, conspiracy to commit money laundering, and conspiracy to transport certain non-citizens for profit. Other individuals charged federally in this investigation include Jason Baker (61-month sentence), Ashley Chico (18-month sentence), and John Irias-Mejia (18-month sentence).
In asking for a 6-year-prison sentence Assistant United States Attorney Stephen Hobbs wrote to the court, “Most basically, Jackson was involved in the distribution of significant quantities of fentanyl pills and likely other drugs. The Court is certainly aware of the dangers that controlled substances – particularly fentanyl – pose to those who use them. But Jackson was not just a street dealer or simple courier. He was in direct contact with the DTO leader in Mexico and played a knowing and significant role in transporting drugs from California to Washington, distributing the drugs in this State, and sending the proceeds back to Mexico.”
The case was investigated by HSI.
The case was prosecuted by Assistant United States Attorney Stephen Hobbs.
California Man Sentenced for Federal Controlled Substances Act ViolationRead the Press Release
NEW ORLEANS, LOUISIANA – MAN FAI HO (“FAI HO”), age 61, of San Lorenzo, California, was sentenced on June 5, 2024 by United States District Judge Jane Triche Milazzo to thirty-three months imprisonment, a $10,000.00 fine, three years of supervised release, and a $100.00 mandatory special assessment fee after pleading guilty to conspiracy to distribute and possess with intent to distribute a quantity of marijuana, 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, in July 2019, Jefferson Parish Sheriff’s Office Agents learned that Vinh Nguyen and others, participated in a drug and money trafficking network that spanned from California to Louisiana. Text messages confirmed that Nguyen worked with a supplier in California, who negotiated the cost and strains of marijuana with growers in San Francisco for Nguyen. Nguyen paid for the marijuana by having other co-conspirators fly the cash to the supplier in San Francisco. Another co-conspirator owned a shipping company that shipped the marijuana from San Francisco to a warehouse in Kenner. FAI HO would then pick up the marijuana shipments from the Kenner warehouse and deliver them to various unknown locations in the New Orleans area and other cities throughout the country.
This prosecution is part of an extensive investigation by the Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF is a joint federal, state, and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
This case was investigated by the Office of Homeland Security Investigations and the Jefferson Parish Sheriff’s Office. The prosecution was handled by Assistant United States Attorney André Jones of the Narcotics Unit.
Brownsville trafficker sent to prison for importing 25 bricks of methRead the Press Release
McALLEN, Texas – A 27-year-old man has been sentenced for importing meth, announced U.S. Attorney Alamdar S. Hamdani.
Juan Adame II pleaded guilty March 11, 2022.
Chief U.S. District Judge Randy Crane has now ordered Adame to serve 57 months in federal prison to be immediately followed by three years of supervised release. At the hearing, the court heard additional evidence Adame had an integral role in smuggling illegal narcotics into the United States. In handing down the sentence, the court noted traffickers could not succeed without the willing participation of transporters like Adame.
On April 8, 2021, Adame claimed he had no illegal drugs in his vehicle when arriving at the Progresso Port of Entry.
Authorities referred him to secondary inspection where a K-9 alerted to the odor of narcotics. A subsequent search revealed 25 bricks of meth, weighing approximately 24 kilograms and hidden in compartments within the vehicle’s wheel wells.
The meth had an estimated street value of approximately $60,000.
At the time of his plea, Adame admitted he knew he was smuggling narcotics and had done so on multiple occasions.
Adame will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Customs and Border Protection and Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney Theodore Parran III prosecuted the case.
Brownsville Man Pleads Guilty to Methamphetamine TraffickingRead the Press Release
JOHNSTOWN, Pa. – A resident of Brownsville, Pennsylvania, pleaded guilty in federal court to a charge of violating federal narcotics laws, United States Attorney Eric G. Olshan announced today.
Shawn Workman, 45, pleaded guilty to Count Two of the Superseding Indictment before Senior United States District Judge Kim R. Gibson.
In connection with the guilty plea, the Court was advised that, from in and around March 2020 to in and around June 2020, in the Western District of Pennsylvania, Workman conspired with others to distribute 500 grams or more of a mixture and substance containing methamphetamine. Workman was intercepted on a federal wiretap obtaining quantities of methamphetamine that he distributed to others.
Judge Gibson scheduled sentencing for October 10, 2024. The law provides for a maximum total sentence of not less than 10 years and up to life in prison, a fine of up to $10 million, or both. Under the federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Maureen Sheehan-Balchon is prosecuting this case on behalf of the government.
The Drug Enforcement Administration and Pennsylvania State Police conducted the investigation that led to the prosecution of Workman. Additional agencies participating in this investigation include the Bureau of Alcohol, Tobacco, Firearms and Explosives, Internal Revenue Service – Criminal Investigation, United States Postal Inspection Service, Homeland Security Investigations, Pennsylvania Office of Attorney General, Clearfield County District Attorney’s Office, Erie County District Attorney’s Office, Millcreek Police Department, Erie Bureau of Police, and other local law enforcement agencies.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.