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Newest first across public DOJ and U.S. Attorney press releases.
Monday 8 April 2024
Marion County Man Indicted for Possessing Methamphetamine and Fentanyl with Intent to DistributeRead the Press Release
Ocala, Florida – United States Attorney Roger B. Handberg announces the unsealing of an indictment charging Terrance Maurice Washington (41, Ocala) with six counts of possession of a controlled substance (methamphetamine and fentanyl) with the intent to distribute it. If convicted on all counts, Washington faces a minimum mandatory sentence of 10 years, up to life, in federal prison. Washington is currently detained in federal custody pending the resolution of this case.
According to the indictment, on five separate occasions—October 25, 2023, November 3, 2023, November 20, 2023, January 3, 2024, and January 25, 2024—Washington possessed 50 grams or more of methamphetamine with the intent to distribute it. Additionally, on November 8, 2023, Washington possessed 40 grams or more of fentanyl, also with the intent to distribute it.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Drug Enforcement Administration and the Unified Drug Enforcement Strike Team (UDEST). It will be prosecuted by Assistant United States Attorney Sarah Janette Swartzberg.
Local business owner indicted for fraudulently submitting PPP loanRead the Press Release
HOUSTON – A federal grand jury has returned a six-count indictment against a former Houston resident for conspiracy to commit wire fraud, wire fraud and conducting a monetary transaction in criminally derived property, announced U.S. Attorney Alamdar S. Hamdani.
According to the indictment, unsealed upon her appearance in court, Kristen Fenrick, 52, now of Dallas, was the owner of Klearly Kristen Inc., a business engaged in the sale of jewelry and accessories. The charges allege she submitted a fraudulent loan application via the Paycheck Protection Program (PPP) at the time of the COVID-19 pandemic.
Fenrick grossly inflated the number of employees her business purportedly had as well as its average monthly payroll expenses, according to the charges. In support of her application, Fenrick allegedly submitted fraudulent IRS documents to the lender. She also allegedly paid a co-conspirator to assist her in the preparation and submission of the false application.
Based on her misrepresentations, the indictment alleges a third-party lender with delegated authority from the Small Business Administration (SBA) approved a loan to Klearly Kristen in June 2020 for $405,340. According to the allegations, the SBA fully guaranteed and subsequently forgave the loan based on continued misrepresentations about the business’s employee headcount and payroll expenses.
The charges allege Fenrick used the PPP funds for her own personal benefit, such as the lease of a luxury vehicle, and not for the purpose for which the loan was intended.
Both before and after the PPP loan, Fenrick also allegedly made several unsuccessful attempts to secure an Economic Injury Disaster Loan for Klearly Kristen and several other purported businesses.
If convicted, Fenrick faces up to five years in prison for conspiracy to commit wire fraud, a maximum of 20 years on each of the substantive wire fraud counts and up to 10 years imprisonment for conducting a monetary transaction in criminally derived property. She could also be ordered to pay up to $250,000 in fines.
The SBA-Office of Inspector General conducted the investigation with the assistance of the Secret Service. Assistant U.S. Attorney Shirin Hakimzadeh is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Lake County Convicted Felon Pleads Guilty to Theft of A Firearm from A Licensed Gun DealerRead the Press Release
Ocala, Florida – United States Attorney Roger B. Handberg announces that Frank Thomas Diviak (23, Altoona) has pleaded guilty to possession of a firearm by a convicted felon, possession of a stolen firearm, and stealing a firearm from a federal firearms licensee (FFL). Diviak faces up to 35 years in federal prison. A sentencing date has not yet been set.
According to court records, Diviak has been convicted of three state felonies, including aggravated assault with a deadly weapon, and fleeing or attempting to elude law enforcement. On December 4, 2023, Diviak entered a Lake County pawn shop, took a revolver off a display, and put it in his pocket. He then fled from the store on his bicycle, but was quickly apprehended by law enforcement. As Diviak raised his hands to surrender to the officers, the stolen revolver fell out of his clothing. As a convicted felon, Diviak is prohibited from possessing firearms or ammunition under federal law.
This case was investigated by Bureau of Alcohol, Tobacco, Firearms and Explosives and the City of Eustis Police Department. It is being prosecuted by Assistant United States Attorney Hannah Nowalk.
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.
Kentucky Man and Businesses Sentenced for Roles in 2018 Big Sandy River Oil SpillRead the Press Release
HUNTINGTON, W.Va. – Today, David K. Smith, 69, of Paducah, Kentucky, was sentenced to one year and six months of federal probation, including six months on home detention, and River Marine Enterprises LLC and Western River Assets LLC were each fined $100,000 and placed on corporate probation for five years for discharge of refuse into navigable waters. The defendants were also ordered to pay $1,856,957.92 in restitution, and the LLC defendants cannot conduct or operate any business while on probation. The defendants admitted to roles in the January 2018 discharge of oil into the Big Sandy River.
According to court documents and statements made in court, Smith was the sole owner and officer of both River Marine Enterprises and Western River Assets, and was responsible for the operation of both companies. Western River Assets owned a towboat, the Gate City, that docked along the West Virginia shore of the Big Sandy River from at least 2010 until January 2018. River Marine Enterprises operated the Gate City during this time.
On or about January 10, 2018, the Gate City sank while docked, discharging oil and other substances into the Big Sandy River. The oil left a sheen on the river and oily deposits beneath the surface. As a direct result of the Gate City’s sinking and oil spill, the City of Kenova, West Virginia, closed its municipal drinking water intake for three days and various regulatory agencies took actions and expended resources to respond to the spill.
Smith admitted that at the time of the January 2018 sinking and spill, he had yet to comply with an administrative order issued by the United States Coast Guard on December 5, 2017, requiring Smith to remove all oil and hazardous materials from the Gate City. The Coast Guard issued the administrative order following an inspection of the Gate City in or about November 2017. The administrative order said in part that the Gate City presented an “imminent and substantial threat to the public health or welfare of the environment because of a threatened discharge of oil from the vessel.”
Smith further admitted that River Marine Enterprises had contracted with a qualified business to remove oil from the Gate City, but that the contractor was not able to access the Gate City safely to remove the oil prior to January 10, 2018 because of site conditions.
“This crime could have easily been prevented. Instead, Mr. Smith left an unseaworthy vessel moored in the Big Sandy for eight years and took no action to remove the hazard it posed to the water quality of the river,” said United States Attorney Will Thompson. “This criminal conduct caused real harm to communities downriver and worsened the pollution of an already strained river system. It also cost the Coast Guard over $1.8 million to remediate the damage caused by the sinking of the vessel and the resulting discharge of oil.”
Thompson made the announcement and commended the investigative work of the United States Environmental Protection Agency Criminal Investigation Division (EPA CID). Thompson also commended the U.S. Coast Guard, the West Virginia Department of Environmental Protection, the West Virginia National Guard and other responders for their efforts to contain and clean up the oil spill.
“By failing to maintain the condition of his towboat, the defendant blatantly ignored the environmental impact his actions would cause,” said Special Agent in Charge Tyler Amon of EPA’s criminal investigation program in West Virginia. “This sentencing demonstrates that EPA will hold those who deliberately violate the Refuse Act accountable.”
United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorney Erik S. Goes and Special Assistant United States Attorney Perry McDaniel prosecuted the case.
On May 5, 2022, the Department launched the Office of Environmental Justice and announced a comprehensive environmental justice enforcement strategy. Enforcement of this strategy relies upon meaningful engagement and transparency with impacted communities regarding environmental justice issues, efforts, and results.
The United States Attorney’s Office for the Southern District of West Virginia enforces federal laws to protect environmental quality and human health in all communities within the district. In coordination with components of the Justice Department, the United States Attorney’s Office will hold polluters accountable for their actions, prioritizing cases that will reduce public health and environmental harms to overburdened and underserved communities. More information is available on the Environmental Justice and Enforcement page of the website for the U.S. Attorney’s Office for the Southern District of West Virginia.
The United States Attorney’s Office encourages the public to report suspected environmental violations within the district. Reports may be submitted to the Environmental Protection Agency or by email, mail, or phone to the United States Attorney’s Office.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:23-cr-5.
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Kanawha County Woman Pleads Guilty to COVID-19 Relief Fraud SchemeRead the Press Release
CHARLESTON, W.Va. – Lydia Spencer, 33, of South Charleston, pleaded guilty on Friday, April 5, 2023, to conspiracy to commit bank fraud. Spencer admitted to participating in a scheme to defraud the Paycheck Protection Program (PPP) of $31,250 in COVID-19 relief loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act).
According to court documents and statements made in court, Spencer was the sole proprietor of Les Prints, a custom clothing business that had its principal office in Charleston. Spencer admitted to conspiring with at least three other individuals in April 2021 to obtain fraudulent PPP loans for her business. The PPP offered forgivable loans to small businesses for job retention and certain other expenses, as part of the emergency financial assistance provided by the CARES Act to Americans suffering from the economic effects caused by the COVID-19 pandemic.
One of the co-conspirators recruited Spencer to participate in the scheme that spring, and Spencer provided her personal and bank account information to this individual. On April 8, 2021, another of the co-conspirators used Spencer’s information to submit fraudulent PPP loan applications on behalf of Les Prints to two different lenders. Each lender approved a PPP loan for Les Prints. Spencer received a $15,625 transfer disbursed by one of the lenders on April 30, 2021, and a $15,625 transfer disbursed by the other lender on June 17, 2021. Both transfers were deposited in Spencer’s personal bank account with an Oklahoma-based bank.
Spencer admitted that the PPP loan applications contained materially false information. Businesses applying for PPP loans were required to provide documentation showing their prior gross income from either 2019 or 2020. Spencer admitted that the loan applications falsely stated that Les Prints had received $75,000 in gross income in 2020, and included a fraudulent Internal Revenue Service (IRS) Form 1040, Schedule C Profit or Loss from Business reporting that false gross income. Spencer further admitted that this false information qualified Les Prints for a loan amount it otherwise would have not been qualified to receive.
Between May 3, 2021, and June 21, 2021, Spencer used a mobile payment service app to transfer a total of $4,000 from the fraudulent loan proceeds to one of the co-conspirators. Spencer admitted that she attempted to obscure the nature of these transfers by labeling them as marketing expenses for her business. Spencer further admitted that she spent the remainder of the fraudulent loan proceeds on personal expenses. Spencer also admitted that she was aware that her co-conspirators had obtained additional fraudulent PPP loans in the names of other individuals.
Spencer is scheduled to be sentenced on July 25, 2024, and faces a maximum penalty of 30 years in prison, five years of supervised release, and a $1 million fine. Spencer also owes at least $31,250 in restitution.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI).
United States District Judge Irene C. Berger presided over the hearing. Assistant United States Attorney Holly Wilson is prosecuting the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:24-cr-53.
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KCK Man Sentenced to 21 Years for Meth Trafficking, Illegal FirearmRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Kan., man was sentenced in federal court today for possessing methamphetamine to distribute and illegally possessing a firearm after leading police officers on a high-speed chase.
Joshua L. Alley, 40, was sentenced by U.S. District Judge Greg Kays to twenty-one years in federal prison without parole.
On Nov. 30, 2023, Alley pleaded guilty to one count of possessing methamphetamine with the intent to distribute and one count of being a felon and an unlawful drug user in possession of a firearm and ammunition.
Independence, Mo., police officers located a stolen 2013 Hyundai Accent parked at a local convenience store on May 18, 2023. They maintained surveillance of the vehicle until Alley came out of the store and got into the driver’s seat.
Despite the deployment of pursuit termination devices, Alley led police officers on a high-speed chase. Alley drove through a line of trees and drove the vehicle down the embankment of a small creek, disabling the vehicle. Alley climbed out of the driver’s side window of the vehicle, which was still running and in drive. The vehicle was lying vertically in the creek bed. Alley fled on foot through the woods, discarding a bag of methamphetamine as he ran, but was taken into custody.
Officers recovered the bag that had been discarded by Alley, which contained 84.8 grams of methamphetamine. An officer returned to the car, where he found a loaded Ruger 9mm semi-automatic pistol and a Ruger magazine that contained five rounds of hollow point ammunition.
Alley admitted that he used methamphetamine a couple of times a day, and that he had been using methamphetamine for the past six months.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Alley has four prior felony convictions for armed criminal action, three prior felony convictions for burglary, and prior felony convictions for robbery, stealing, receiving stolen property, possession of a controlled substance, assault, domestic assault,
This case was prosecuted by Assistant U.S. Attorney Trey Alford. It was investigated by the Independence, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Project Safe Neighborhoods
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.
Justice Department to Publish Final Rule to Strengthen Web and Mobile App Access for People with DisabilitiesRead the Press Release
Attorney General Merrick B. Garland today signed a final rule under Title II of the Americans with Disabilities Act (ADA) to ensure the accessibility of web content and mobile applications (apps) for people with disabilities. This final rule clarifies the obligations of state and local governments to make their websites and mobile applications accessible. Every day, people across the country use the web and mobile apps to access public programs and services, including emergency information, courts, healthcare providers, schools, voting information, parking, permit applications, tax payments, and transit updates. If these technologies are not accessible, it can be difficult or impossible for people with disabilities to access critical services. Consequently, individuals with disabilities may be excluded from accessing public services that other people routinely use.
“This final rule marks the Justice Department’s latest effort to ensure that no person is denied access to government services, programs, or activities because of a disability,” said Attorney General Merrick B. Garland. “By issuing clear and consistent accessibility standards for state and local governments’ digital content, this rule advances the ADA’s promise of equal participation in society for people with disabilities. I want to thank the many public servants across the Department, led by the Civil Rights Division, for their tremendous work on this rule.”
“This rule affirms the Justice Department’s unwavering commitment to achieving the promise of the Americans with Disabilities Act — ensuring that people with disabilities can fully and equally participate in our society,” said Acting Associate Attorney General Benjamin C. Mizer. “The rule, which clarifies the standards for making mobile apps and websites accessible, is vital to people’s ability to use and benefit from public programs and services.”
“This rule is truly historic and long overdue as it will help break down barriers that have kept people with disabilities from fully participating in American life,” said Assistant Attorney General Kristen Clarke of the Civil Rights Division. “The rule will help ensure that people with disabilities have equal access to a full range of government services including critical activities like voting, taking online courses, applying for public benefits, filing taxes and more. For far too long, people with disabilities have been left behind as we've witnessed more services and government activity increasingly move online. This rule is helping to usher us into a new era by bringing an end to the discrimination faced by millions of Americans with vision, hearing, cognitive and manual dexterity disabilities across our country.”
The rule will provide much-needed standards for addressing a wide variety of barriers. For example, the rule will help ensure blind individuals can access information about public transportation on a city’s mobile app or website, enable people who are deaf or hard of hearing to participate in university lectures online and allow individuals with manual disabilities affecting their ability to use a mouse to access web information about voter registration. Ensuring that people with disabilities can access web content and mobile apps and fully participate in public programs and services will improve the day-to-day lives of individuals with disabilities in communities throughout the country.
The final rule mandates technical standards for state and local governments to help ensure the accessibility of their programs and services provided through the web and mobile apps. By providing clarity on how to make sure these platforms are accessible for people with disabilities, this final rule advances the ADA’s promise of a more inclusive society. The final rule will soon be available for review on the Federal Register’s website at www.federalregister.gov. A fact sheet detailing information about the final rule is available here.
For further information on the Civil Rights Division, please visit the department’s website at www.justice.gov/crt. For inquiries regarding the ADA, please contact the department’s toll-free ADA Information Line at 800-514-0301 (voice) or 833-610-1264 (TTY) or visit the ADA website at www.ada.gov.
View ASL translation here.
Justice Department Secures Agreement in Sexual Harassment Lawsuit Against Michigan Rental Property OwnerRead the Press Release
DETROIT— The Justice Department announced today that Michigan landlord, Mohamad Hussein, has agreed to pay $185,000 in damages and a civil penalty to the government to resolve the Fair Housing Act (FHA) lawsuit concerning Hussein’s sexual harassment of actual and prospective female tenants. Hussein has owned and managed over 15 rental properties in and around Dearborn Heights, Michigan, since 2013.
“No one should be denied the opportunity to live in safe and affordable housing because of their refusal to submit to a landlord’s sexual demands,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “When landlords sexually harass their tenants, they deprive tenants of the ability to feel safe and secure in their own homes. The Justice Department is committed to holding predatory landlords accountable to ensure that all tenants are protected from unlawful discrimination.”
“Housing is one of our most basic needs, and no one should have to endure sexual harassment in order to keep a roof over their head,” said U.S. Attorney Dawn N. Ison for the Eastern District of Michigan. “My office is committed to enforcing the Fair Housing Act to prevent all forms of harassment in housing. We appreciate the partnership and support of the Civil Rights Division to advance those efforts here in the Eastern District of Michigan.”
The lawsuit, filed in March 2023, alleged that Hussein subjected actual and prospective female tenants to sexual harassment by making unwelcome comments and advances and offered actual and prospective female tenants housing-related benefits in exchange for engaging in sex acts with him.
Under the terms of the proposed consent decree, approved today by the U.S. District Court for the Eastern District of Michigan, Hussein will pay $185,000 in damages to eight former and prospective female tenants harmed by the harassment and a civil penalty to the United States. Hussein will be required to take steps to vacate any retaliatory eviction judgments obtained against these tenants. He will be permanently enjoined from personally managing rental properties in the future and will be required to retain an independent property manager to manage any rental properties he owns. Finally, the consent decree will require Hussein to implement non-discrimination policies and complaint procedures to prevent sexual harassment at his properties in the future and to take fair housing training.
The Justice Department’s Sexual Harassment in Housing Initiative is led by the Civil Rights Division, in coordination with U.S. Attorneys’ Offices across the country. The goal of the department’s initiative is to address, deter and raise awareness about sexual harassment by landlords, property managers, maintenance workers, loan officers or other people who have control over housing. Since launching the initiative in October 2017, the department has filed 39 lawsuits alleging sexual harassment in housing and recovered more than $12 million for victims of such harassment.
The Justice Department’s Civil Rights Division, along with U.S. Attorneys’ Offices, enforces the FHA, which prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status. More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt. Individuals may report sexual harassment or other forms of housing discrimination by calling the Justice Department’s Housing Discrimination Tip Line at 1-833-591-0291, or submitting a report online. Individuals may also report such discrimination by contacting the Department of Housing and Urban Development at 1-800-669-9777 or by filing a complaint online
Justice Department Secures Agreement in Sexual Harassment Lawsuit Against Michigan Rental Property OwnerRead the Press Release
The Justice Department announced today that Michigan landlord, Mohamad Hussein, has agreed to pay $185,000 in damages and a civil penalty to the government to resolve the Fair Housing Act (FHA) lawsuit concerning Hussein’s sexual harassment of actual and prospective female tenants. Hussein has owned and managed over 15 rental properties in and around Dearborn Heights, Michigan, since 2013.
“No one should be denied the opportunity to live in safe and affordable housing because of their refusal to submit to a landlord’s sexual demands,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “When landlords sexually harass their tenants, they deprive tenants of the ability to feel safe and secure in their own homes. The Justice Department is committed to holding predatory landlords accountable to ensure that all tenants are protected from unlawful discrimination.”
“Housing is one of our most basic needs, and no one should have to endure sexual harassment in order to keep a roof over their head,” said U.S. Attorney Dawn N. Ison for the Eastern District of Michigan. “My office is committed to enforcing the Fair Housing Act to prevent all forms of harassment in housing. We appreciate the partnership and support of the Civil Rights Division to advance those efforts here in the Eastern District of Michigan.”
The lawsuit, filed in March 2023, alleged that Hussein subjected actual and prospective female tenants to sexual harassment by making unwelcome comments and advances and offered actual and prospective female tenants housing-related benefits in exchange for engaging in sex acts with him.
Under the terms of the proposed consent decree, approved today by the U.S. District Court for the Eastern District of Michigan, Hussein will pay $185,000 in damages to eight former and prospective female tenants harmed by the harassment and a civil penalty to the United States. Hussein will be required to take steps to vacate any retaliatory eviction judgments obtained against these tenants. He will be permanently enjoined from personally managing rental properties in the future and will be required to retain an independent property manager to manage any rental properties he owns. Finally, the consent decree will require Hussein to implement non-discrimination policies and complaint procedures to prevent sexual harassment at his properties in the future and to take fair housing training.
The Justice Department’s Sexual Harassment in Housing Initiative is led by the Civil Rights Division, in coordination with U.S. Attorneys’ Offices across the country. The goal of the department’s initiative is to address, deter and raise awareness about sexual harassment by landlords, property managers, maintenance workers, loan officers or other people who have control over housing. Since launching the initiative in October 2017, the department has filed 39 lawsuits alleging sexual harassment in housing and recovered more than $12 million for victims of such harassment.
The Justice Department’s Civil Rights Division, along with U.S. Attorneys’ Offices, enforces the FHA, which prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status. More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt. Individuals may report sexual harassment or other forms of housing discrimination by calling the Justice Department’s Housing Discrimination Tip Line at 1-833-591-0291, or submitting a report online. Individuals may also report such discrimination by contacting the Department of Housing and Urban Development at 1-800-669-9777 or by filing a complaint online.
Jury Finds District Man Guilty of Gun and Assault ChargesRead the Press Release
WASHINGTON – Diandre Caesar, 30, of Washington, D.C., was found guilty today by a Superior Court jury of two counts of assault with a dangerous weapon and two counts of possession of a firearm during a crime of violence, announced U.S. Attorney Matthew M. Graves and Chief Pamela A. Smith of the Metropolitan Police Department (MPD). The verdict follows a five-day trial.
According to the government’s evidence, at around 1:00 p.m., on June 28, 2022, Caesar got into a verbal argument with the victims, who were trying to drive out of the McDonald’s parking lot on New York Avenue in Northeast Washington D.C. As the victims turned onto New York Avenue NE to leave, with their infant child in a car seat in the backseat, Caesar followed them and, after trying to open the front passenger door, kicked the rear door multiple times. The victims continued driving, at which point Caesar pulled out a firearm and fired at the car several times, striking it at least four times. Police later arrested Caesar on a warrant on August 24, 2022.
The Honorable Andrea Hertzfeld scheduled sentencing for June 10, 2024.
In announcing the verdict, U.S. Attorney Graves and Chief Smith commended the work of those who investigated the case from the Metropolitan Police Department. Finally, they commended the work of Assistant U.S. Attorneys Travis Wolf and Michael Toogun prosecuted the case at trial.
Jacksonville Postal Service Employee Indicted for Stealing from the MailRead the Press Release
Jacksonville, Florida – United States Attorney Roger B. Handberg announces the return of an indictment charging Rekisha Duckworth (43, Jacksonville) with embezzlement of an article contained in the U.S. Mail by a U.S. Postal Service employee. If convicted, Duckworth faces a maximum penalty of five years in federal prison.
According to the indictment, on March 1, 2023, Duckworth, who was an employee of the U.S. Postal Service, stole from a mail item a retail store gift card and a bracelet. The mail item had come into her possession because it had been sent via U.S. Mail.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the United States Postal Service – Office of Inspector General. It will be prosecuted by Assistant United States Attorney Laura Cofer Taylor.
Inmate Pleads Guilty to Possessing Weapon at FCI McDowellRead the Press Release
BLUEFIELD, W.Va. – William Williams, 24, an inmate at the Federal Correctional Institution (FCI) McDowell, pleaded guilty today to possession of a weapon by an inmate at a federal prison.
According to court documents and statements made in court, on December 12, 2022, an FCI McDowell staff member conducted a random pat-down search of Williams and found a handcrafted weapon commonly known as a “shank” in his left front pants pocket. The shank was a piece of metal approximately five inches long with a sharpened point on one end and a cloth handle. Williams admitted to possessing the shank, and further admitted that it was designed and intended to be used as a weapon.
Williams is scheduled to be sentenced on August 12, 2024, and faces a maximum penalty of five years in prison, three years of supervised release, and a $250,000 fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Prisons.
Senior United States District Judge David A. Faber presided over the hearing. Assistant United States Attorney Brian D. Parsons is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 1:24-cr-52.
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Illinois Family Members Sentenced for Kidnapping, Forced Labor and Conspiracy for Coercing Two Minors and a Third Victim in Years-Long SchemeRead the Press Release
Domingo Francisco-Juan, 44, was sentenced today to life in prison for kidnapping, forced labor and conspiracy to commit kidnapping and forced labor. The court also ordered Francisco-Juan to pay $50,000 in restitution to a victim. His codefendant Lorenza Domingo-Castaneda, 35, was sentenced to 20 years in prison for forced labor and conspiracy to commit forced labor, and also ordered her to pay over $80,000 in restitution to three victims.
A third defendant, Catarina Domingo-Juan, 41, was previously sentenced on Dec. 18, 2023, to 240 months in prison for forced labor and conspiracy to commit forced labor, and was ordered to pay over $80,000 in restitution to three victims. All three defendants are siblings and Guatemalan nationals.
“Forced labor crimes exploit children and some of the most vulnerable members of society and strike at the heart of human dignity,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Francisco-Juan’s sentence is historic, marking the first life sentence in over a decade in a forced labor case under the Trafficking Victims Protection Act. These victims, two of them children, were subjected to physical and sexual abuse to compel them to work as domestic servants, hotel maids and factory laborers. We are grateful to the survivors of these crimes for their tremendous courage in coming forward and reporting the violence and abuse they suffered. The sentences imposed in this case should send a message to human traffickers everywhere that there will be severe consequences for their actions and the Justice Department stands ready to hold them accountable for their violent and coercive schemes.”
“The partnerships across all levels of government were imperative in bringing these individuals to justice,” said U.S. Attorney Gregory K. Harris for the Central District of Illinois. “We appreciate the dedication and time that all the federal, state and local law enforcement agencies involved have committed to this case. We also commend the various victim services organizations, both private and public, who provided support and services to the victims in this case. Labor traffickers are insidious in the way they control their victims, and we will continue the fight to protect endangered members of our society from these horrific crimes.”
“Today’s sentences shine a bright light on the very real presence of forced labor crimes in our communities,” said Special Agent in Charge Sean Fitzgerald of Homeland Security Investigations (HSI) Chicago. “HSI special agents will continue to fight against the exploitation of the vulnerable and support victims by providing critical resources and services. Well done to the HSI special agents and our law enforcement community partners for bringing these predators to justice.”
According to court documents, the defendants, who are siblings, conspired to bring one minor victim from Guatemala to the United States to work in Domingo-Castaneda and Domingo-Juan’s homes between December 2015 and January 2021. Francisco-Juan accompanied the minor victim into the United States after falsely assuring the victim’s mother that the victim would receive a better education and opportunities within the United States if permitted to travel with him. Domingo-Juan took custody of the minor victim after falsely claiming to government officials that she was the minor victim’s relative.
Instead of providing the minor victim with access to an education and better opportunities within the United States, the defendants cut off the minor victim from her family and compelled her into working around the clock for their benefit. Domingo-Castaneda and Domingo-Juan took the money that the minor victim earned working outside of their homes, and Francisco-Juan benefitted by receiving the victim’s domestic services around the homes.
Court documents also show that Domingo-Castaneda and Domingo-Juan conspired to compel the labor and services of a separate minor victim and an adult victim in their homes and in area businesses between December 2018 and March 2021. Similar to the first minor victim, Domingo-Castaneda used false promises of a better life and education within the United States to lure the minor victim away from her mother and entice her into traveling to the United States. Instead of following through with her promises, Domingo-Castaneda, along with Domingo-Juan, compelled the minor victim and the adult victim to provide domestic services around their homes and required both victims to give them all of the earnings they made while working at area businesses.
Homeland Security Investigations investigated the case, with assistance from the Champaign Police Department, Champaign County Sheriff’s Office, U.S. Marshals Service and Champaign County State’s Attorney’s Office.
Trial Attorney Kate Alexander of the Civil Rights Division’s Human Trafficking Prosecution Unit and Assistant U.S. Attorney Bryan Freres for the Central District of Illinois prosecuted the case.
Anyone who has information about human trafficking should report that information to the National Human Trafficking Hotline toll-free at 1-888-373-7888, which is available 24 hours a day, seven days a week. For more information about human trafficking, please visit www.humantraffickinghotline.org. Information on the Justice Department’s efforts to combat human trafficking can be found at www.justice.gov/humantrafficking.
Illinois Family Members Sentenced for Kidnapping, Forced Labor and Conspiracy for Coercing Two Minors and a Third Victim in Years-Long SchemeRead the Press Release
Domingo Francisco-Juan, 44, was sentenced today to life in prison for kidnapping, forced labor and conspiracy to commit kidnapping and forced labor. The court also ordered Francisco-Juan to pay $50,000 in restitution to a victim. His codefendant Lorenza Domingo-Castaneda, 35, was sentenced to 20 years in prison for forced labor and conspiracy to commit forced labor, and also ordered her to pay over $80,000 in restitution to three victims.
A third defendant, Catarina Domingo-Juan, 41, was previously sentenced on Dec. 18, 2023, to 240 months in prison for forced labor and conspiracy to commit forced labor, and was ordered to pay over $80,000 in restitution to three victims. All three defendants are siblings and Guatemalan nationals.
“Forced labor crimes exploit children and some of the most vulnerable members of society and strike at the heart of human dignity,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Francisco-Juan’s sentence is historic, marking the first life sentence in over a decade in a forced labor case under the Trafficking Victims Protection Act. These victims, two of them children, were subjected to physical and sexual abuse to compel them to work as domestic servants, hotel maids and factory laborers. We are grateful to the survivors of these crimes for their tremendous courage in coming forward and reporting the violence and abuse they suffered. The sentences imposed in this case should send a message to human traffickers everywhere that there will be severe consequences for their actions and the Justice Department stands ready to hold them accountable for their violent and coercive schemes.”
“The partnerships across all levels of government were imperative in bringing these individuals to justice,” said U.S. Attorney Gregory K. Harris for the Central District of Illinois. “We appreciate the dedication and time that all the federal, state and local law enforcement agencies involved have committed to this case. We also commend the various victim services organizations, both private and public, who provided support and services to the victims in this case. Labor traffickers are insidious in the way they control their victims, and we will continue the fight to protect endangered members of our society from these horrific crimes.”
“Today’s sentences shine a bright light on the very real presence of forced labor crimes in our communities,” said Special Agent in Charge Sean Fitzgerald of Homeland Security Investigations (HSI) Chicago. “HSI special agents will continue to fight against the exploitation of the vulnerable and support victims by providing critical resources and services. Well done to the HSI special agents and our law enforcement community partners for bringing these predators to justice.”
According to court documents, the defendants, who are siblings, conspired to bring one minor victim from Guatemala to the United States to work in Domingo-Castaneda and Domingo-Juan’s homes between December 2015 and January 2021. Francisco-Juan accompanied the minor victim into the United States after falsely assuring the victim’s mother that the victim would receive a better education and opportunities within the United States if permitted to travel with him. Domingo-Juan took custody of the minor victim after falsely claiming to government officials that she was the minor victim’s relative.
Instead of providing the minor victim with access to an education and better opportunities within the United States, the defendants cut off the minor victim from her family and compelled her into working around the clock for their benefit. Domingo-Castaneda and Domingo-Juan took the money that the minor victim earned working outside of their homes, and Francisco-Juan benefitted by receiving the victim’s domestic services around the homes.
Court documents also show that Domingo-Castaneda and Domingo-Juan conspired to compel the labor and services of a separate minor victim and an adult victim in their homes and in area businesses between December 2018 and March 2021. Similar to the first minor victim, Domingo-Castaneda used false promises of a better life and education within the United States to lure the minor victim away from her mother and entice her into traveling to the United States. Instead of following through with her promises, Domingo-Castaneda, along with Domingo-Juan, compelled the minor victim and the adult victim to provide domestic services around their homes and required both victims to give them all of the earnings they made while working at area businesses.
Homeland Security Investigations investigated the case, with assistance from the Champaign Police Department, Champaign County Sheriff’s Office, U.S. Marshals Service and Champaign County State’s Attorney’s Office.
Trial Attorney Kate Alexander of the Civil Rights Division’s Human Trafficking Prosecution Unit and Assistant U.S. Attorney Bryan Freres for the Central District of Illinois prosecuted the case.
Anyone who has information about human trafficking should report that information to the National Human Trafficking Hotline toll-free at 1-888-373-7888, which is available 24 hours a day, seven days a week. For more information about human trafficking, please visit www.humantraffickinghotline.org. Information on the Justice Department’s efforts to combat human trafficking can be found at www.justice.gov/humantrafficking.
Idaho Man Arrested for Attempting to Provide Material Support to ISISRead the Press Release
Alexander Scott Mercurio, 18, of Coeur d’Alene, Idaho, was arrested Saturday, April 6, 2024, in Coeur d’Alene for attempting to provide material support and resources to ISIS.
According to the affidavit in support of the criminal complaint, Mercurio pledged his allegiance to ISIS and intended to commit attacks on its behalf. He planned to attack individuals at churches in Coeur d’Alene on April 7 using weapons, including knives, firearms, and fire.
The FBI’s Joint Terrorism Task Force (JTTF) conducted the investigation and thwarted Mercurio’s violent plot. Mercurio is currently in custody awaiting his initial appearance which will be set by the Court.
“As alleged in the complaint, the defendant swore an oath of loyalty to ISIS and planned to wage an attack in its name on churches in Coeur d’Alene, Idaho,” said Attorney General Merrick B. Garland. “Thanks to the investigative efforts of the FBI, the defendant was taken into custody before he could act, and he is now charged with attempting to support ISIS’s mission of terror and violence. The Justice Department will continue to relentlessly pursue, disrupt, and hold accountable those who would commit acts of terrorism against the people and interests of the United States.”
“The defendant allegedly pledged loyalty to ISIS and sought to attack people attending churches in Idaho, a truly horrific plan which was detected and thwarted by the FBI’s Joint Terrorism Task Force,” said FBI Director Christopher Wray. “This investigation demonstrates the FBI’s steadfast commitment to work with our law enforcement partners to stop those who wish to commit acts of violence on behalf of – or inspired by – foreign terrorist groups.”
“Across the Department of Justice, and in my office, we have no higher calling than to protect our nation and our communities from terrorism. Along with our law enforcement partners, my office will always remain laser-focused on this part of our mission,” said U.S. Attorney Josh Hurwit for the District of Idaho. “I want to thank the FBI for its tireless work on this investigation and its thorough efforts to prevent violence. The support from local law enforcement was also integral to successfully disrupting the alleged plot.”
“This case should be an eye-opener to the dangers of self-radicalization, which is a real threat to our communities,” said Special Agent in Charge Shohini Sinha of the Salt Lake City FBI. “Protecting the American people from terrorism remains the FBI’s number one priority, and we continue to encourage the public to report anything suspicious to the FBI or your local law enforcement.”
Mercurio is charged by a federal complaint with attempting to provide material support or resources to a designated foreign terrorist organization. If convicted, Mercurio faces a maximum penalty of 20 years in federal prison. A federal district court judge would determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI is investigating the case with valuable assistance provided by the Coeur d’Alene Police Department, Kootenai County Sheriff’s Office, and Ada County Sheriff’s Office.
Assistant U.S. Attorneys Heather S. Patricco and David G. Robins and First Assistant U.S. Attorney Justin D. Whatcott for the District of Idaho, and Charles Kovats and Andrea Broach of the National Security Division’s Counterterrorism Section are prosecuting the case.
A complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
ComplaintHarrodsburg Man Convicted of Armed Methamphetamine Trafficking in Johnson CountyRead the Press Release
LONDON, Ky. – A Harrodsburg, Ky., man, Aristotle White, was sentenced on Monday, by U.S. District Judge Robert Wier, to 181 months in prison, for possession with the intent to distribute 50 grams or more of methamphetamine and possession of a firearm in furtherance of that drug trafficking offense.
White was convicted of the charges after a two-day trial in November 2023. According to evidence presented at trial, on May 11, 2022, officers with the Johnson County Sheriff’s Department conducted a traffic stop on a vehicle that was being driven by White. During the search of the vehicle, law enforcement located nearly 300 grams of methamphetamine, two loaded firearms, and over $2,500 in United States currency. Witness testimony revealed White to be regularly obtaining large quantities of methamphetamine and importing it into, among other places, Johnson County.
Under federal law, White must serve 85 percent of his prison sentence. Upon his release from prison, he will be under the supervision of the U.S. Probation Office for four years.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Erek Davodowich, Acting Special Agent in Charge of the DEA Louisville Field Division; Sheriff Scott Hazelette, Johnson County Sheriff’s Department; and Sheriff William Meade, Magoffin County Sheriff’s Department, jointly announce the sentencing.
The investigation was conducted by the DEA, Johnson County Sheriff’s Office, Magoffin County Sheriff’s Office, and Operation UNITE. Assistant U.S. Attorney Drew Trimble is prosecuting the case on behalf of the United States.
This case was prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Eastern District of Kentucky, U.S. Attorney Shier coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
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Fourteenth Defendant Pleads Guilty in Prison Drug ConspiracyRead the Press Release
Gulfport, Miss. – A fourteenth defendant pled guilty today in federal court for his role in a prison drug conspiracy.
Trae Short, 39, pled guilty to conspiring to commit an offense against the United States by conspiring to introduce contraband into a federal prison.
According to court documents and information presented to the Court, in 2018, agents with the Drug Enforcement Agency received information from the Bureau of Prisons (BOP) that drug laced letters and greeting cards were being sent to inmates in BOP from the Southern District of Mississippi. The drug laced letters and cards were intercepted at prisons in Illinois, South Carolina, Florida, Indiana, Pennsylvania, and New Jersey.
DEA and BOP officials were able to determine that inmates were ordering the drug laced letters and cards from Johnson Tran, 46, via prison email accounts and jail calls. The inmates would typically order the drugs using coded language. The letters or greeting cards were laced with FUB-AMB and 5F-MDMB-PICA, which are Schedule I controlled substances and synthetic cannabinoids. Many of the letters and greeting cards were sent through the postal service in Gulfport. Tran’s base of operation was located in Harrison County, Mississippi.
Agents were also able to determine that Tran would ultimately receive payment for the drugs that he sent into prison via U.S. Department of Treasury checks drawn from the inmate’s prison accounts and/or peer-to-peer money transfers from associates or family members of the inmates. When Tran’s associates would receive funds on Tran’s behalf, Tran would give them a portion of the funds they received as payment for their services.
On April 18, 2023, twenty defendants were initially charged as part of the prison drug and money laundering ring. Johnson Tran and fourteen of the defendants have now pleaded guilty. Tran pleaded guilty to conspiracy to possess with intent to distribute a controlled substance and faces a maximum penalty of 20 years in prison. William Hernandez and Chaze Lowery pleaded guilty to conspiracy to commit money laundering and they each face a maximum of 20 years in prison. Ryan Schmittaur pleaded guilty to conspiracy to possess with intent to distribute a controlled substance and faces a maximum of 20 years in prison.
Defendants Jorge Pena, Bobby Huneycutt, Clarence Plato, Ryan Douglas, Bryan Simmons, Salomon Alaya, Stanley Spriggs, Corderius Trammell, and Jonathan Estrada have all pleaded guilty to conspiring to commit an offense against the United States by conspiring to introduce contraband to a federal prison. They each face a maximum of five years in prison.
Four remaining defendants are scheduled for trial in June 2024. A fifth defendant has been arrested, and is scheduled to appear on April 9, 2024, in the Southern District of Mississippi; and a sixth defendant has indicated that he intends to plead guilty and is awaiting his change of plea hearing.
U.S. Attorney Todd W. Gee and Special Agent in Charge Steven Hofer of the Drug Enforcement Administration made the announcement.
The Drug Enforcement Administration, with assistance from the Bureau of Prisons, is investigating the case.
The case is being prosecuted by Assistant United States Attorney Jonathan Buckner.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. 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.
Four Individuals Indicted for Drug Trafficking over 2,300 Kilograms of Cocaine Aboard a Semi-Submersible VesselRead the Press Release
SAN JUAN, Puerto Rico – A federal grand jury in the District of Puerto Rico returned an indictment charging four individuals: Juan José Castaño-Palomo (a dual French and Colombian national) and Colombian nationals Carlos Alberto Bravo-Sarasty, Gustavo Rodríguez-Salazar, and Emilson Yordao Quiñonez-Hachito, with conspiracy to possess with intent to distribute a controlled substance aboard a vessel subject to the jurisdiction of the United States in violation of the Maritime Drug Law Enforcement Act (MDLEA), as well as violations of the Drug Trafficking Vessel Interdiction Act (DTVIA).
According to court documents, on March 21, 2024, while patrolling the Caribbean Sea, a United States Coast Guard (USCG) Law Enforcement Detachment Team embarked on the United States Navy vessel USS Leyte Gulf located a semi-submersible approximately 132 nautical miles northeast of Trinidad and Tobago in international waters. USCG law enforcement officers boarded the vessel. The boarding led to the arrest of the four individuals and the seizure of approximately 2,370 kilograms of cocaine (almost 6,000 pounds).
The four defendants made their initial court appearances on April 2, 2024, before U.S. Magistrate Judge Marcos E. Lopez of the U.S. District Court for the District of Puerto Rico. If convicted, they face a maximum penalty of life in prison on the drug trafficking charges and a maximum sentence of fifteen years in prison for violations of the DTVIA.
U.S. Attorney W. Stephen Muldrow of the District of Puerto Rico and Denise Foster, Special Agent in Charge of the Drug Enforcement Administration Caribbean Division made the announcement.
Special Assistant U.S. Attorney Helena B. Daniel and Max Pérez-Bouret, Chief of the Transnational Organized Crime Section are prosecuting the case.
This prosecution is part of the Organized Crime Drug Enforcement Task Force (OCDETF) Caribbean Corridor Strike Force. 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-coordinated, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Former Venezuelan General Sentenced to 260 Months in Prison for Providing Material Support to the FARCRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that CLÍVER ANTONIO ALCALÁ CORDONES was sentenced to 260 months in prison for providing material support, including firearms, to the Revolutionary Armed Forces of Colombia (the “FARC”). ALCALÁ CORDONES pled guilty on June 29, 2023, before U.S. District Judge Alvin K. Hellerstein, who imposed today’s sentence.
U.S. Attorney Damian Williams said: “As a high-ranking member of the Venezuelan military and the Cártel de Los Soles, Clíver Antonio Alcalá Cordones and his co-conspirators sought to weaponize cocaine as they helped the FARC arm its members and ship tons of drugs to the United States. Alcalá Cordones corrupted the vital institutions of his own country as he helped the FARC flood this country with cocaine — but no longer. Instead, he will now spend more than two decades in a United States prison.”
According to court documents and statements made during court proceedings:[1]
ALCALÁ CORDONES, a Venezuelan citizen and a former general in Venezuela’s military, along with other high-ranking Venezuelan officials, acted as leaders and managers of the Cártel de Los Soles, or “Cartel of the Suns.” ALCALÁ CORDONES and other Cartel members abused the Venezuelan people and corrupted the legitimate institutions of Venezuela — including parts of the military, intelligence apparatus, legislature, and judiciary — to facilitate the importation of tons of cocaine into the United States in partnership with the FARC, a violent organization based in Colombia that was dedicated to the overthrow of the Colombian government and responsible for the production and distribution of the majority of the cocaine that eventually reached the United States. The Cártel de Los Soles sought not only to enrich its members and enhance their power but also to weaponize cocaine by inflicting the drug’s harmful and addictive effects on users in the United States.
Beginning in or about 2006, ALCALÁ CORDONES took advantage of his position in the Venezuelan military, including his command of thousands of heavily armed military officers, to provide support to the FARC as the FARC distributed tons of U.S.-bound cocaine. Among other things, ALCALÁ CORDONES (i) prevented FARC members and associates from being arrested by Venezuelan law enforcement or being engaged by the Venezuelan military; (ii) provided protection, including freedom of movement and freedom from interference, for FARC members and associates that the defendant knew trafficked cocaine; and (iii) provided high-powered weapons to the FARC, including directly to high-ranking FARC leaders such as Luciano Marín Arango, a/k/a “Iván Márquez,” and Rodrigo Londoño Echeverri, a/k/a “Timochenko.” ALCALÁ CORDONES also directly participated in the FARC’s cocaine distribution. Among other things, ALCALÁ CORDONES participated in meetings with some of the largest drug traffickers in South America, during which they discussed how ALCALÁ CORDONES and other members of the Cártel de Los Soles could assist in their cocaine distribution. ALCALÁ CORDONES also personally intervened to ensure that large shipments — over thousands of kilograms of cocaine — were not interdicted by law enforcement in Venezuela. In exchange, ALCALÁ CORDONES received millions of dollars in cocaine-fueled bribes.
* * *
ALCALÁ CORDONES, 62, of Caracas, Venezuela, pled guilty to providing material support to a designated foreign terrorist organization, the FARC, and for knowingly receiving and transferring firearms, knowing and having reasonable cause to believe that such firearms would be used to commit a federal crime of terrorism, namely, the provision of material support and resources to the FARC. In addition to the prison term, ALCALÁ CORDONES was sentenced to three years of supervised release.
This prosecution is part of an Organized Crime Drug Enforcement Task Force (“OCDETF”) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach.
Mr. Williams praised the outstanding investigative work of the U.S. Drug Enforcement Administration’s Special Operations Division Bilateral Investigations Unit, Miami Field Division, the OCDETF New York Strike Force, and the U.S. Treasury Department, Office of Foreign Assets Control, as well as the U.S. Department of Justice’s Office of International Affairs, the National Security Division’s Counterterrorism Section, and the Narcotic and Dangerous Drug Section’s Judicial Attaché’s Office.
This case is being handled by the Office’s National Security and International Narcotics Unit. Assistant U.S. Attorneys Nicholas S. Bradley, Kaylan E. Lasky, Kevin T. Sullivan, and Kyle A. Wirshba are in charge of the prosecution.
[1] Communications, conversations, and statements discussed and quoted herein are described in substance and in part.
Former Office Manager Sentenced to Federal Prison for Embezzling over $8.5 MillionRead the Press Release
ATLANTA – Sonya Hesenius, a former office manager and executive assistant for a company in Alpharetta, Georgia, has been sentenced to federal prison for embezzling more than $8.5 million between 2015 and 2020.
“Hesenius will now be held accountable for her flagrant theft of millions of dollars from her employer to support a lavish lifestyle,” said U.S. Attorney Ryan K. Buchanan. “Hesenius was entrusted with handling the financial responsibilities for the company where she worked. But she chose to steal from the company, blatantly using company funds to pay for expensive, overseas vacations for herself and family members, plastic surgery, shopping binges at exclusive retail stores, and other exorbitant purchases.”
“Hesenius worked in a position of trust for a company that expected her to honor that trust,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “Instead, she chose to abuse it and her personal greed not only hurt the company, but everyone who worked for them. This sentence should send the message that the FBI takes wire fraud extremely seriously and will work to hold offenders accountable.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: Between 2015 and 2020, Sonya Hesenius was employed as an office manager and executive assistant at a company in Alpharetta, Georgia that provides third-party yard management services. During her employment, Hesenius made fraudulent charges on corporate credit cards and caused the company to reimburse her personal credit card for personal expenses. To conceal her scheme, she coded and approved all the charges herself, withheld supporting documentation from the company, and disguised the unauthorized expenditures in the company’s accounting system as legitimate expenses such as newspaper advertisements. Hesenius further spread the expenditures among different job sites to further conceal the fraud.
Hesenius used the fraudulently obtained funds to live a lavish lifestyle, resulting in staggering losses to her employer. Her fraudulent activities included company expenditures for: (1) more than $172,000 on her daughter’s wedding; (2) more than $600,000 at Saks Fifth Avenue on items such as designer handbags; (3) over $460,000 for herself, family members, and friends to travel all over the world; (4) flying herself and her family on private jets to vacations in France, Greece, Hawaii, and Turks and Caicos, totaling more than $145,000; (5) tickets to attend University of Tennessee sporting events, the Kentucky Derby, the Masters, the Stanley Cup Finals, and various concerts, totaling more than $238,000; (6) a recreational vehicle costing more than $100,000, using $40,000 of company money as a down payment; (7) hundreds of thousands of dollars on high-end furniture; (8) plastic surgery and dental expenses; and (9) conversions of company funds into cash through over $1 million in PayPal, Venmo, and Square transfers to herself and family members. In total, Hesenius embezzled $8,614,729.37 over the course of the fraud scheme.
Sonya Hesenius, 60, of St. Petersburg, Florida, was sentenced by U.S District Judge Victoria M. Calvert to six years in prison to be followed by three years of supervised release. Hesenius was also ordered to pay restitution in the amount of $8,614,729.37. Hesenius was convicted on these charges on November 29, 2023, after she pleaded guilty.
This case was investigated by the Federal Bureau of Investigation.
Assistant U.S. Attorney David A. O’Neal 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 Michigan Police Officer Pleads Guilty to Federal Civil Rights Offense for Using Excessive Force on ArresteeRead the Press Release
DETROIT – A former police officer with the Warren Police Department in Michigan pleaded guilty today to one count of deprivation of rights under color of law.
Matthew Rodriguez, 49, pleaded guilty to using excessive force against an arrestee while fingerprinting and photographing him at a local detention facility.
“This police officer carried out a violent assault on a man who was doing nothing to harm or endanger him and then tried to cover up his crime,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Police officers are not above the law in our country and will be held accountable when they violate people’s civil and constitutional rights. When law enforcement abuses their authority, it erodes trust between the police and the community they are sworn to protect and serve. The Justice Department stands ready and willing to investigate and prosecute any police officer who unlawfully uses excessive force against those in their custody.”
“The defendant’s actions in this case were shocking and flagrantly violate the standards of conduct we expect of all sworn law enforcement officers,” U.S. Attorney Dawn N. Ison for the Eastern District of Michigan. “This investigation, and today’s guilty plea, reflect my office’s commitment to protecting the rights of every citizen in the community, even those who are accused of committing crimes.”
“It is important for the citizens of Michigan to have faith in law enforcement officers and trust that they are performing their duties with integrity,” said Special Agent in Charge Cheyvoryea Gibson of the FBI Detroit Field Office. “This incident should not be considered a reflection of the excellent work performed by the officers in serving and protecting the community every day. Our officers placed their lives on the line, day in and day out, for the citizens of this great state. However, it is important to maintain the highest standards and hold each other accountable as we honor our oaths of office. I would like to thank the city of Warren for their cooperation during our investigation.”
According to court documents, on June 13, 2023, then-officer Rodriguez was fingerprinting and photographing an arrestee, identified in court documents only as J.S., who had recently been brought to the Warren Police Department’s jail for processing. After taking J.S.’s fingerprints, Rodriguez struck J.S. multiple times and slammed J.S.’s head against the floor, causing injury to J.S. When Rodriguez began to assault him, J.S. was not physically resisting Rodriguez and posed no immediate threat to anyone.
During the plea hearing, Rodriguez admitted that he knew that his use of force against J.S. was unreasonable and contrary to department policy, and that he wrote a report in which he made false statements about the incident and omitted material information. J.S. suffered bodily injury from the beating.
The Warren Police Department publicly released footage of the assault in June 2023.
Rodriguez is scheduled to be sentenced on August 20. He faces a maximum penalty of 10 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI Detroit Field Office investigated the case.
Assistant U.S. Attorney Robert Moran for the Eastern District of Michigan and Trial Attorney Alec Ward of the Justice Department’s Civil Rights Division are prosecuting the case.
Former Michigan Police Officer Pleads Guilty to Federal Civil Rights Offense for Using Excessive Force on ArresteeRead the Press Release
WASHINGTON – A former police officer with the Warren Police Department in Michigan pleaded guilty today to one count of deprivation of rights under color of law.
Matthew Rodriguez, 49, pleaded guilty to using excessive force against an arrestee while fingerprinting and photographing him at a local detention facility.
“This police officer carried out a violent assault on a man who was doing nothing to harm or endanger him and then tried to cover up his crime,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Police officers are not above the law in our country and will be held accountable when they violate people’s civil and constitutional rights. When law enforcement abuses their authority, it erodes trust between the police and the community they are sworn to protect and serve. The Justice Department stands ready and willing to investigate and prosecute any police officer who unlawfully uses excessive force against those in their custody.”
“The defendant’s actions in this case were shocking and flagrantly violate the standards of conduct we expect of all sworn law enforcement officers,” U.S. Attorney Dawn N. Ison for the Eastern District of Michigan. “This investigation, and today’s guilty plea, reflect my office’s commitment to protecting the rights of every citizen in the community, even those who are accused of committing crimes.”
“It is important for the citizens of Michigan to have faith in law enforcement officers and trust that they are performing their duties with integrity,” said Special Agent in Charge Cheyvoryea Gibson of the FBI Detroit Field Office. “This incident should not be considered a reflection of the excellent work performed by the officers in serving and protecting the community every day. Our officers placed their lives on the line, day in and day out, for the citizens of this great state. However, it is important to maintain the highest standards and hold each other accountable as we honor our oaths of office. I would like to thank the city of Warren for their cooperation during our investigation.”
According to court documents, on June 13, 2023, then-officer Rodriguez was fingerprinting and photographing an arrestee, identified in court documents only as J.S., who had recently been brought to the Warren Police Department’s jail for processing. After taking J.S.’s fingerprints, Rodriguez struck J.S. multiple times and slammed J.S.’s head against the floor, causing injury to J.S. When Rodriguez began to assault him, J.S. was not physically resisting Rodriguez and posed no immediate threat to anyone.
During the plea hearing, Rodriguez admitted that he knew that his use of force against J.S. was unreasonable and contrary to department policy, and that he wrote a report in which he made false statements about the incident and omitted material information. J.S. suffered bodily injury from the beating.
The Warren Police Department publicly released footage of the assault in June 2023.
Rodriguez is scheduled to be sentenced on August 20. He faces a maximum penalty of 10 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI Detroit Field Office investigated the case.
Assistant U.S. Attorney Robert Moran for the Eastern District of Michigan and Trial Attorney Alec Ward of the Justice Department’s Civil Rights Division are prosecuting the case.
Former Michigan Police Officer Pleads Guilty to Federal Civil Rights Offense for Using Excessive Force on ArresteeRead the Press Release
A former police officer with the Warren Police Department in Michigan pleaded guilty today to one count of deprivation of rights under color of law.
Matthew Rodriguez, 49, pleaded guilty to using excessive force against an arrestee while fingerprinting and photographing him at a local detention facility.
“This police officer carried out a violent assault on a man who was doing nothing to harm or endanger him and then tried to cover up his crime,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Police officers are not above the law in our country and will be held accountable when they violate people’s civil and constitutional rights. When law enforcement abuses their authority, it erodes trust between the police and the community they are sworn to protect and serve. The Justice Department stands ready and willing to investigate and prosecute any police officer who unlawfully uses excessive force against those in their custody.”
“The defendant’s actions in this case were shocking and flagrantly violate the standards of conduct we expect of all sworn law enforcement officers,” U.S. Attorney Dawn N. Ison for the Eastern District of Michigan. “This investigation, and today’s guilty plea, reflect my office’s commitment to protecting the rights of every citizen in the community, even those who are accused of committing crimes.”
“Police officers are trusted to determine when force is necessary and when it deprives people of their civil rights,” said Assistant Director Michael Nordwall of the FBI’s Criminal Investigative Division. “FBI investigations like these are key to removing abusive officers from law enforcement and a step towards restoring trust with the community.”
According to court documents, on June 13, 2023, then-officer Rodriguez was fingerprinting and photographing an arrestee, identified in court documents only as J.S., who had recently been brought to the Warren Police Department’s jail for processing. After taking J.S.’s fingerprints, Rodriguez struck J.S. multiple times and slammed J.S.’s head against the floor, causing injury to J.S. When Rodriguez began to assault him, J.S. was not physically resisting Rodriguez and posed no immediate threat to anyone.
During the plea hearing, Rodriguez admitted that he knew that his use of force against J.S. was unreasonable and contrary to department policy, and that he wrote a report in which he made false statements about the incident and omitted material information. J.S. suffered bodily injury from the beating.
The Warren Police Department publicly released footage of the assault in June 2023.
Rodriguez is scheduled to be sentenced on August 20. He faces a maximum penalty of 10 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI Detroit Field Office investigated the case.
Assistant U.S. Attorney Robert Moran for the Eastern District of Michigan and Trial Attorney Alec Ward of the Justice Department’s Civil Rights Division are prosecuting the case.
Former Jail Corrections Officer, Wife Sentenced for Producing Child PornographyRead the Press Release
JEFFERSON CITY, Mo. – A former corrections officer at the Jefferson City Correctional Center and his wife were sentenced in federal court today to charges related to video recording their sexual assault of a 4-year-old victim.
Paul Emerson Schofield, 35, and his wife, Sara Ellen Schofield, 31, both of Jefferson City, were sentenced in separate appearances before U.S. District Judge Brian C. Wimes. Paul Schofield was sentenced to 40 years in federal prison without parole. Sara Schofield was sentenced to 35 years in federal prison without parole. The court also sentenced the Schofields to spend the rest of their lives on supervised release following incarceration.
On Nov. 7, 2023, the Schofields each pleaded guilty to one count of conspiracy to produce child pornography and one count of producing child pornography. The Schofields, who have been in federal custody without bond since their arrests in 2022, admitted they participated in a conspiracy to produce child pornography over a nearly three-year period from July 29, 2019, to June 7, 2022. A 4-year-old victim was used to produce child pornography.
The investigation began when law enforcement received a CyberTip from the National Center for Missing and Exploited Children on April 25, 2022. Kik, a free online social media platform, reported that a user later identified as Paul Schofield had uploaded multiple videos of child sexual exploitation material.
Paul Schofield was active in the child pornography trading community. Multiple Kik chats were located in which he was distributing and receiving child pornography and discussing child molestation.
Law enforcement officers executed a search warrant at the Schofields’ residence on June 7, 2022. A forensic examiner conducted a preview of Paul Schofield’s cell phone and located several videos of child pornography, including infants engaged in sexual contact with adults. Examiners later found videos on the phone of both Paul and Sara Schofield sexually assaulting an unconscious 4-year-old victim.
On June 9, 2022, law enforcement officers executed another search warrant at the Schofields’ residence. Officers seized Sara Schofield’s cell phone, which contained another sexually explicit video of the same 4-year-old victim in which the voices of Paul and Sara Schofield can be heard.
At the time of the offense, Paul Schofield was employed as a corrections officer at the Jefferson City Correctional Center in Jefferson City.
The Schofields will be required to register as a sex offenders upon their release from prison and will be subject to federal and state sex offender registration requirements, which may apply throughout their life.
This case was prosecuted by Assistant U.S. Attorney Ashley Turner. It was investigated by the Boone County, Mo., Sheriff’s Office Cyber Crimes Task Force and the FBI.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Former Hendry County Sheriff’s Deputy Indicted for Using Excessive Force and ObstructionRead the Press Release
Fort Myers, Florida – United States Attorney Roger B. Handberg announces the unsealing of an indictment charging Tyler Williams (29, Labelle) with deprivation of civil rights under color of law. Specifically, Williams is charged with unreasonable use of force and obstruction of justice. If convicted, he faces up to 10 years in federal prison on the use of force charge, and up to 20 years’ imprisonment on the obstruction charge. Williams is a former deputy sheriff from the Hendry County Sheriff’s Office in Florida.
The indictment alleges that on or about July 4, 2023, Williams, while acting under color of law as a deputy sheriff with the Hendry County Sheriff’s Office, willfully deprived the civil rights of a man by throwing him to the ground and injuring him. Williams then wrote a false justification for the use of force on the man in an incident report, obstructing justice.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
The case is being investigated by the Federal Bureau of Investigation – Tampa Field Office. It is being prosecuted by Assistant United States Attorneys Patrick L. Darcey and Jesus M. Casas.
Former FHP Trooper and DEA Task Force Officer Pleads Guilty to Conspiring to Distribute Narcotics, Defrauding the United States, and Illegally Possessing A Firearm and AmmunitionRead the Press Release
Jacksonville, Florida – United States Attorney Roger B. Handberg announces that Joshua Grady Earrey (45, Jacksonville) has pleaded guilty to one count of conspiring to distribute narcotics, one count of conspiring to defraud the United States, and one count of possessing firearms and ammunition while an unlawful user of controlled substances. Earrey faces a combined maximum penalty of 60 years in federal prison on these offenses, including a minimum mandatory sentence of at least 5 years for the drug distribution conspiracy. He has further agreed to forfeit the firearms and ammunition involved in these offenses.
According to the plea agreement, while employed as a Florida Highway Patrol Trooper and designated Task Force Officer with the Drug Enforcement Administration, Earrey and a co-conspirator engaged in widespread and extensive corrupt activity from 2017 - 2023. These corrupt acts included the theft of money and illegal drugs that were seized as evidence during criminal investigations; providing the illegal drugs to others to distribute on his behalf; and extorting or accepting cash payments from drug dealers in exchange for protecting them from arrest by law enforcement.
Earrey and his co-conspirator stole more than 1,000 pounds of marijuana from evidence and covered up the theft by submitting falsified paperwork showing that the drugs had been destroyed. Earrey, who had an addiction to prescription opiates, also used his corrupt activities to obtain illegal drugs for his own use. On one occasion, he traded cases of ammunition that he had diverted from the Florida Highway Patrol to a convicted murderer in exchange for oxycodone. Despite knowing that his drug addiction made it illegal for him to have firearms and ammunition, Earrey continued to possess these items in violation of federal law.
This case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service -- Criminal Investigation, with assistance from the U.S. Customs and Border Protection. It is being prosecuted by Assistant United States Attorney William S. Hamilton.
The United States Attorney’s Office, the Federal Bureau of Investigation, the Internal Revenue Service – Criminal Investigation, and United States Customs and Border Protection wish to thank the Florida Highway Patrol and the Drug Enforcement Administration for their cooperation during this investigation.
Federal Inmate Indicted for Assault with Intent to Commit MurderRead the Press Release
Ocala, Florida – United States Attorney Roger B. Handberg announces that Shane McMillan (50, Texas) has been indicted for one count of assault with the intent to murder and one count of possession of contraband by a federal inmate. If convicted, McMillan faces up to 25 years in federal prison.
According to the indictment, McMillan is an inmate in the Coleman Federal Correctional Complex in Sumter County. On July 9, 2023, he assaulted another inmate with the intent to commit murder. McMillan was also in possession of a sharp metal object, which is a prohibited item in prison.
An indictment is merely an allegation that a defendant has committed a federal criminal offense. Every defendant is presumed innocent unless, and until, proven guilty.
This case is being investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Hannah Nowalk.
El Departamento de Justicia publicará una norma final para fortalecer el acceso a aplicaciones móviles y la web para personas con discapacidadesRead the Press Release
El Fiscal General Merrick B. Garland firmó hoy una norma final en virtud del Título II de la ley de Estadounidenses con Discapacidades (ADA, por sus siglas en inglés) para garantizar la accesibilidad de contenido web y las aplicaciones móviles (aplicaciones) para personas con discapacidades. Esta norma final aclara las obligaciones de los gobiernos estatales y locales de hacer accesibles a sus sitios web y aplicaciones móviles.
Cada día, personas por todo el país utilizan las aplicaciones móviles y la web para acceder a programas y servicios públicos, lo que incluye información de emergencia, tribunales, proveedores de atención médica, escuelas, información sobre la votación, aparcamiento, solicitudes de permisos, pagos de impuestos y actualizaciones de tránsito. Si estas tecnologías no son accesibles, puede ser difícil o imposible para las personas con discapacidades acceder a servicios críticos. Como resultado, las personas con discapacidades pueden ser excluidas del acceso a servicios públicos que otras personas utilizan habitualmente.
“Esta norma final marca el esfuerzo más reciente del Departamento de Justicia para garantizar que a ninguna persona se le niegue el acceso a servicios, programas o actividades gubernamentales debido a una discapacidad”, declaró el Fiscal General Merrick B. Garland. “Al emitir estándares de accesibilidad claros y coherentes para el contenido digital de los gobiernos estatales y locales, esta norma promueve la promesa de la ADA de igualdad de participación en la sociedad para las personas con discapacidades. Quiero agradecer a muchos funcionarios públicos de todo el Departamento, liderados por la División de Derechos Civiles, por su tremendo trabajo en esta norma”.
“Esta norma afirma el compromiso inquebrantable del Departamento de Justicia de cumplir con la promesa de la ley de Estadounidenses con Discapacidades, garantizando que las personas con discapacidades puedan participar plena y equitativamente en nuestra sociedad”, afirmó el Fiscal General Asociado en funciones, Benjamin C. Mizer. “La norma, que aclara los estándares para hacer accesibles las aplicaciones móviles y los sitios web, es primordial para la capacidad de las personas de usar y beneficiarse de programas y servicios públicos”.
“Esta norma es verdaderamente histórica y pendiente desde hace mucho tiempo, ya que ayudará a romper las barreras que han impedido que las personas con discapacidades participen plenamente en la vida estadounidense”, comentó la Fiscal General Adjunta de la División de Derechos Civiles, Kristen Clarke. “La norma ayudará a garantizar que las personas con discapacidades tengan la igualdad de acceso a una gama completa de servicios gubernamentales, entre ellos actividades críticas como votar, realizar cursos en línea, solicitar beneficios públicos, presentar impuestos y más. Durante demasiado tiempo, las personas con discapacidades se han quedado atrás mientras cada vez más servicios y actividades gubernamentales se están trasladando al Internet. Esta norma nos está ayudando a dar paso a una nueva etapa al poner fin a la discriminación a la que se enfrentan millones de estadounidenses con discapacidades de vista, audición, cognitivas y manuales por todo nuestro país”.
La norma proporcionará estándares muy necesarios para abordar una amplia variedad de barreras. Por ejemplo, la norma ayudará a garantizar que las personas ciegas puedan acceder a información sobre el transporte público en la aplicación móvil o el sitio web de una ciudad, permitir que las personas sordas o con dificultades auditivas participen en conferencias universitarias en línea y permitir que las personas con discapacidades manuales que afectan su capacidad de usar un ratón acceden a información en línea sobre el registro de votantes. Garantizar que las personas con discapacidades puedan acceder a contenido web y aplicaciones móviles y participar plenamente en programas y servicios públicos mejorará la vida diaria de las personas con discapacidades en comunidades por todo el país.
La norma final exige estándares técnicos para los gobiernos estatales y locales ayuden con el fin de garantizar la accesibilidad de sus programas y servicios proporcionados a través de la web y las aplicaciones móviles. Al proporcionar claridad sobre cómo asegurarse de que estas plataformas sean accesibles para las personas con discapacidades, esta norma final hace avanzar la promesa de la ADA de una sociedad más inclusiva.
La norma final pronto estará disponible para su revisión en el sitio web del Registro Federal en www.federalregister.gov (solo en inglés). Pronto estará disponible una hoja informativa que detalla la información sobre la norma final en www.ada.gov (solo en inglés).Para obtener más información sobre la División de Derechos Civiles, visite el sitio web del Departamento en https://www.justice.gov/es/crt. Para consultas relacionadas con la ADA, comuníquese con la línea gratuita del Departamento para información sobre la ADA al 800-514-0301 (voz) o al 833-610-1264 (TTY) o bien visite el sitio web de la ADA en www.ada.gov (solo en inglés).
Drug Trafficker Who Participated in the Delivery of Thousands of Fentanyl Pills Sentenced to Federal PrisonRead the Press Release
PROVIDENCE, RI – A Lawrence, MA, resident arrested in May 2021 by members of the DEA Rhode Island Drug Task Force after he participated in deliveries of significant quantities of fentanyl-laced pills in Pawtucket, RI, and Dorchester, MA, has been sentenced to seven years in federal prison, announced United States Attorney Zachary A. Cunha.
Roberto Anibal Nieves Zayas, 38, pleaded guilty in U.S. District Court in Providence on January 20, 2022, to a charge of conspiracy to distribute and possess fentanyl with the intent to distribute. He was sentenced on April 4, 2024, by U.S. District Court Judge William E. Smith to 84 months of incarceration to be followed by 3 years of federal supervised release.
According to charging documents and information presented to the court, in April and May 2021, the DEA Rhode Island Drug Task Force arranged for deliveries of large quantities of fentanyl-laced pills. On April 29, Nieves Zayas delivered 1,000 fentanyl pills in exchange for $5,000 in cash. The delivery occurred in a parking lot of a Pawtucket restaurant by one of two men who arrived in a car bearing Massachusetts license plates. Task Force members watched as the delivery was made and quickly seized the drugs, while other agents followed the vehicle to an apartment complex in Lawrence, MA.
On May 24, 2021, the DEA arranged to purchase 25,000 fentanyl pills for $125,000. Two days later, as the delivery of the pills was taking place inside a passenger van in a parking lot of a Dorchester, MA, restaurant, DEA Rhode Island Task Force agents moved in and seized a large plastic garbage bag containing 3.4 kilograms of fentanyl pills. Nieves Zayas and a co-defendant were arrested.
The case was prosecuted by Assistant United States Attorney Stacey A. Erickson.
The Rhode Island DEA Drug Task Force is comprised of personnel from the DEA; Internal Revenue Service Criminal Investigation; Rhode Island State Police; Cranston Police Department; Middletown Police Department; Newport Police Department; Pawtucket Police Department; Providence Police Department; Warwick Police Department; Woonsocket Police Department; and Amtrak Police.
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Decatur Man Sentenced to 50 Years in Prison for Sexually Exploiting MinorsRead the Press Release
URBANA, Ill. – A Decatur, Illinois, man, Kevin Dial, 52, of the 5100th block of Hickory Point Frontage Road, was sentenced on April 5, 2024, to 50 years imprisonment for sexual exploitation of minors, receipt of child pornography, and possession of child pornography.
At the sentencing hearing, the government presented evidence that Dial directed the sexual abuse of three minors, including a two-year-old child, and ordered that the abuse be recorded. The government also presented a statement by one of the victims detailing the trauma he suffered because of the sexual abuse he endured at the order of Dial.
During the hearing, U.S. District Court Judge Colin S. Bruce described Dial’s actions as “horrific,” noting the defendant had destroyed the lives of his victims. The Court further described this case as one of the worst cases that had come before him.
Dial was convicted following a three-day jury trial in October of 2023.
At sentencing, Dial faced statutory penalties of 15 to 30 years imprisonment on each count of the sexual exploitation of his children and up to 20 years for receiving and possessing child pornography. Those penalties could be imposed to be served consecutively, which the Court chose to do.
“The acts by this defendant are beyond comprehension.” said United States Attorney Gregory K. Harris, “We commend the complex work done locally and abroad by the dedicated law enforcement agencies involved in the investigation. The U.S. Attorney’s Office will continue to work tirelessly to protect the most vulnerable among us and seek justice for these innocent victims.”
“From Decatur, Illinois, to the Philippines, the FBI’s extensive reach delivered justice to children who were victims of one of the worst child sexual abuse cases we have seen in some time,” said FBI Springfield Field Office Special Agent in Charge David Nanz. “The investigation, which resulted in a significant sentence, demonstrates the FBI’s commitment to use the full strength of our authority to protect children.”
The Federal Bureau of Investigation, Springfield Field Office, with assistance from the Philippine National Police, investigated the case. Assistant United States Attorneys Rachel Ritzer and Nathan Bertrand represented the government in the prosecution.
Crip Gang Member Sentenced on Firearms Charge to 180 Months in Federal PrisonRead the Press Release
DES MOINES, Iowa – A Des Moines man was sentenced on April 3, 2024 to 180 months in federal prison, the maximum sentence allowed by law, after pleading guilty to being a felon in possession of a firearm.
According to public court documents and evidence presented at sentencing, Dominic Gregory Lacava, 27, a convicted felon and Crip gang member, possessed at least four firearms over a six-month time period. Lacava possessed the firearms in connection with other felonies, including the physical abuse of three minor children, the physical abuse of his significant other, the sexual abuse of a child, and drug-related felonies. At the time of this federal offense, Lacava was on state of Iowa supervision for multiple crimes, including drug felonies and assault.
Lacava’s conduct was discovered during a larger federal investigation into firearms straw purchasing and trafficking, as well as gang activity. Two federal search warrants were executed at Lacava’s Des Moines, Iowa, residence, leading to the recovery of three firearms. Two of those firearms were acquired through Lacava’s use of a straw purchaser.
After completing his term of imprisonment, Lacava will be required to serve three years of supervised release. There is no parole in the federal system.
“This sentencing today reflects ATF’s ongoing commitment to vigorously combat individuals that commit violent, gun-related crimes in our communities,” said ATF Kansas City Field Division Special Agent in Charge Bernard Hansen. “Today’s maximum sentence is justly served to a convicted felon in possession of a firearm who used them to commit acts of violence against women and children. ATF will work swiftly to remove dangerous individuals off our streets and with every arrest, and every successful prosecution, like this case, means that risks to public safety are being removed from our communities.”
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. Assistant United States Attorney Kristin M. Herrera prosecuted the case. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF); and the Des Moines Police Department.
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.
Convicted felon sentenced to 220 months in prison for possession with intent to distribute fentanyl and possession of firearmRead the Press Release
MIAMI – On April 2, a man was sentenced to 220 months in federal prison, followed by five years of supervised release, for possession of fentanyl with intent to distribute, possession of a firearm by a convicted felon and possession of a firearm in furtherance on his drug trafficking crime.
On Sept. 15, 2022, law enforcement officers executed a search warrant on the residence of Sidney Arnel Flerme, 31, of Boynton Beach, Florida. Prior to executing the search warrant, law enforcement officers saw Flerme leave his residence. Upon noticing the law enforcement officers, Flerme threw a plastic bag onto the ground. Law enforcement officers arrested Flerme shortly after. Law enforcement officers recovered the bag and found inside approximately 26 capsules of fentanyl. Inside Flerme’s residence, law enforcement officers discovered close to 300 grams of fentanyl, multiple zip lock bags containing fentanyl, digital scales, empty capsules, a blender with fentanyl residue and a four-ton pill press. Law enforcement officers also located a loaded semi-automatic pistol on top of the kitchen counter next to the fentanyl and the rest of the stuff.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Special Agent in Charge Christopher A. Robinson of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Miami Field Division, and Chief Joseph DeGiulio of the Boynton Beach Police Department (BBPD) made the announcement.
ATF Miami Field Office and BBPD investigated the case. Assistant U.S. Attorney Brian Ralston prosecuted it. Assistant U.S. Attorneys Emily Stone and Mitchell Hyman handled asset forfeiture.
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.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 23-cr-80001.
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Coeur d’Alene Man Arrested for Attempting to Provide Material Support to ISISRead the Press Release
COEUR D’ALENE – Alexander Scott Mercurio, 18, of Coeur d’Alene, was arrested Saturday, April 6, 2024 in Coeur d’Alene for attempting to provide material support and resources to ISIS, U.S. Attorney Josh Hurwit announced today.
According to the affidavit in support of the criminal complaint, Mercurio pledged his allegiance to ISIS and intended to commit attacks on its behalf. He planned to attack individuals at churches in Coeur d’Alene on April 7, 2024, using weapons, including knives, firearms, and fire.
The FBI’s Joint Terrorism Task Force (JTTF) conducted the investigation and thwarted Mercurio’s violent plot. Mercurio is currently in custody awaiting his initial appearance, which will be set by the Court.
“As alleged in the complaint, the defendant swore an oath of loyalty to ISIS and planned to wage an attack in its name on churches in Coeur d’Alene, Idaho,” said Attorney General Merrick B. Garland. “Thanks to the investigative efforts of the FBI, the defendant was taken into custody before he could act, and he is now charged with attempting to support ISIS’s mission of terror and violence. The Justice Department will continue to relentlessly pursue, disrupt, and hold accountable those who would commit acts of terrorism against the people and interests of the United States.”
“The defendant allegedly pledged loyalty to ISIS and sought to attack people attending churches in Idaho, a truly horrific plan which was detected and thwarted by the FBI’s Joint Terrorism Task Force,” said FBI Director Christopher Wray. “This investigation demonstrates the FBI’s steadfast commitment to work with our law enforcement partners to stop those who wish to commit acts of violence on behalf of – or inspired by – foreign terrorist groups.”
“Across the Department of Justice, and in my office, we have no higher calling than to protect our nation and our communities from terrorism. Along with our law enforcement partners, my office will always remain laser-focused on this part of our mission,” said U.S. Attorney Josh Hurwit. “I want to thank the FBI for its tireless work on this investigation and its thorough efforts to prevent violence. The support from local law enforcement was also integral to successfully disrupting the alleged plot.”
“This case should be an eye-opener to the dangers of self-radicalization, which is a real threat to our communities,” said Special Agent in Charge Shohini Sinha of the Salt Lake City FBI. “Protecting the American people from terrorism remains the FBI’s number one priority, and we continue to encourage the public to report anything suspicious to the FBI or your local law enforcement.”
Mercurio is charged by a federal complaint with attempting to provide material support or resources to a designated foreign terrorist organization. If convicted, Mercurio faces a maximum of 20 years in federal prison. A federal district court judge would determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI is investigating the case with valuable assistance provided by the Coeur d’Alene Police Department, the Kootenai County Sheriff’s Office, and the Ada County Sheriff’s Office.
Assistant U.S. Attorneys Heather S. Patricco and David G. Robins and First Assistant U.S. Attorney Justin D. Whatcott for the District of Idaho, and Charles Kovats and Andrea Broach of the National Security Division’s Counterterrorism Section are prosecuting the case.
A complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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MercurioA_Complaint and AffidavitCity of Atlanta’s Former Chief Financial Officer Pleads Guilty to Federal Program Theft and Tax ObstructionRead the Press Release
The City of Atlanta’s former chief financial officer (CFO) pleaded guilty today to federal program theft and to obstructing an IRS audit.
According to court documents, from 2011 to 2018, Jimmie Anthony “Jim” Beard, 60, of Fort Lauderdale, Florida, oversaw the City of Atlanta’s Department of Finance, in which his primary responsibility was to manage the city’s financial condition. At least as early as 2015, Beard devised and executed a scheme to use his authority as CFO to obtain money and property from Atlanta for his own use, including to pay for thousands of dollars in personal travel expenses for himself, his family, and his travel companions, and to buy and possess restricted machine guns.
Further, while CFO, Beard submitted a 2013 personal income tax return to the IRS in which he claimed that he operated a personal business that incurred more than $33,500 in alleged losses in 2013. In 2015, while being audited in relation to these purported losses, Beard provided to the IRS receipts for airfare and hotels that Beard falsely claimed were personal business expenses. The expenses were actually paid to Beard while working for the City and using his City of Atlanta credit card.
Beard is scheduled to be sentenced on July 12 and faces a maximum penalty of 13 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; U.S. Attorney Ryan Buchanan for the Northern District of Georgia; Assistant Director Michael Nordwall of the FBI’s Criminal Investigative Division; Special Agent in Charge Keri Farley of the FBI Atlanta Field Office; and Acting Special Agent in Charge Demetrius Hardeman of the IRS Criminal Investigation (IRS-CI) Atlanta Field Office made the announcement.
The FBI and IRS-CI are investigating the case.
Trial Attorney Trevor Wilmot of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorneys Garrett Bradford and Tiffany Johnson for the Northern District of Georgia are prosecuting the case. Former Assistant U.S. Attorney Jeffrey Davis for the Northern District of Georgia provided valuable assistance.
Chinese National Indicted for Access Device FraudRead the Press Release
Ocala, Florida – United States Attorney Roger B. Handberg announces the return of an indictment charging Donghui Liao (32, China) with possession of 15 or more counterfeit or unauthorized access devices. If convicted, Liao faces a maximum penalty of 10 years in federal prison.
According to the indictment, on October 17, 2023, Liao knowingly and with intent to defraud possessed 15 or more counterfeit and unauthorized access devices, including retail and credit card gift cards.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Ocala Police Department and Homeland Security Investigations. It will be prosecuted by Assistant United States Attorney Sarah Janette Swartzberg.
Chamois Man Sentenced to 15 Years for Producing Child PornographyRead the Press Release
Dylan Joseph Minor, 27, was sentenced by U.S. District Judge Brian C. Wimes to 15 years in federal prison without parole. Minor will be required to register as a sex offender upon his release from prison and will be subject to federal and state sex offender registration requirements, which may apply throughout his life.
On July 20, 2023, Minor pleaded guilty to producing child pornography.
A detective with the Franklin County, Mo., Sheriff’s Department received a Cybertip from National Center for Missing and Exploited Children on Oct. 14, 2022. The Cybertip indicated that a Kik user, later identified as Minor, had uploaded multiple images and/or videos of suspected child pornography.
On Oct. 17, 2022, the detective executed a search warrant at Minor’s residence. Minor admitted that he had taken pornographic photos of the child victim and traded them with others on the Kik application. The detective analyzed two cell phones seized from Minor and found thousands of images and more than 100 videos depicting child pornography.
This case was prosecuted by Assistant U.S. Attorney Ashley S. Turner. It was investigated by the Franklin County, Mo., Sheriff’s Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Central States Pension Plan Agrees to Repay Excess Special Financial Assistance FundsRead the Press Release
The Central States, Southeast and Southwest Areas Pension Plan (Central States) has entered into a civil settlement agreement pursuant to which it has agreed to repay more than $126.5 million in excess funds that it received from the Pension Benefit Guaranty Corporation (PBGC) in connection with the PBGC’s Special Financial Assistance Program.
The American Rescue Plan Act of 2021 established the Special Financial Assistance (SFA) Program to protect millions of workers in multiemployer pension plans who faced cuts to their benefits, including potentially catastrophic benefit reductions in many cases. The SFA Program is administered by the PBGC, which was authorized to make one-time payments to certain eligible multiemployer pension plans in the amount that was projected to enable the plans to pay all benefits through 2051. Because inclusion of participants who died in the census data provided with the SFA application could alter the amount of funding that an eligible multiemployer plan would need to pay benefits in future years, the PBGC initially required SFA applicants to provide documentation of an independent death audit to identify deceased participants in support of plans’ SFA applications.
Despite its best efforts, Central States’ census erroneously included approximately 3,500 deceased participants among the more than 360,000 plan participants identified in the plan’s SFA application. The erroneous inclusion of deceased participants in Central States’s application was identified during an audit conducted by the PBGC’s Office of Inspector General (PBGC-OIG). The audit determined that as a result of the errors Central States’ SFA award of approximately $35.8 billion was overstated by approximately $126 million. Central States cooperated with the government’s investigation in this matter, including assisting with the actuarial analyses necessary to calculate and validate the amount of the excess funds that it received.
“This settlement demonstrates the Civil Division’s commitment to help recover any excess funds paid in connection with the SFA Program,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department's Civil Division. “I encourage other pension plans to cooperate with the government’s ongoing efforts to identify and recoup excess SFA Program funds.”
“PBGC-OIG is committed to conducting investigations, audits and other work to strengthen the public trust in government operations,” said Inspector General Nicholas J. Novak of the PBGC-OIG. “Today’s settlement ensures that Central States will return approximately $126.5 million to the United States Treasury, and demonstrates that the partnership between the PBGC-OIG and the Justice Department provides a critical mechanism to protect taxpayer funds.”
“The PBGC has been coordinating with the PBGC-OIG, Justice’s Civil Division and Central States to finalize this agreement,” said PBGC Director Gordon Hartogensis. “We appreciate their collaborative efforts in facilitating this recovery. PBGC is also working with other plans to recover any SFA funds paid out because of inaccurate census data.”
The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, PBGC-OIG and PBGC Office of General Counsel, along with the Department of Labor and Department of Treasury.
Senior Trial Counsel Kelley Hauser of the Civil Division’s Commercial Litigation Branch handled the matter.
The claims resolved by the settlement are allegations only. There has been no determination of liability.
SettlementCentral American Man Sentenced to Prison for Illegally Reentering the United States After Being DeportedRead the Press Release
A man who illegally returned to the United States after being deported was sentenced today to five months in federal prison.
Luis Montiel-Rincon, age 29, a citizen of Mexico illegally present in the United States and residing in Cedar Rapids, Iowa, received the prison term after a November 30, 2023, guilty plea to one count of illegal reentry into the United States after having been deported.
At the guilty plea, Montiel-Rincon admitted he had previously been deported from the United States and illegally reentered the United States without the permission of the United States government. Montiel-Rincon was previously deported in April 2015. On October 10, 2023, immigration officials learned Montiel-Rincon had illegally returned to the United States and found Montiel-Rincon at the Linn County Jail following his arrest on state charges for eluding.
In November 2023, Montiel-Rincon was convicted in the Iowa District Court for Linn County of eluding. In that case, Montiel-Rincon eluded officers in August 2023 and willfully failed to bring his motorcycle to a stop while reaching speeds of up to 101 mph in a 30-mph zone. Montiel-Rincon was also convicted in the Iowa District Court for Linn County in November 2023 for operating a motor vehicle while intoxicated from an incident occurring in July 2023.
Montiel-Rincon was sentenced in Cedar Rapids by United States District Court Chief Judge C.J. Williams. Montiel-Rincon was sentenced to 148 days’ imprisonment. He must also serve a one-year term of supervised release after the prison term. There is no parole in the federal system.
Montiel-Rincon is being held in the United States Marshal’s custody until he can be turned over to immigration officials.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by the Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 23-CR-83.
Follow us on Twitter @USAO_NDIA.
Case of Drive-By Murder on I-295 in 2015 Ends with Murder ConvictionRead the Press Release
WASHINGTON – Oscar Ramos, 35, of Washington, D.C., was found guilty today of first degree murder while armed and assault with intent to kill while armed for the May 28, 2015 shooting that killed 50-year old Pedro Melendez Alvarado, of Alexandria, Virginia, and wounded 56-year old Miguel A. Rodriguez Carabantes, also of Alexandria, Virginia. The verdict was announced by U.S. Attorney Matthew M. Graves and Chief Pamela A. Smith of the Metropolitan Police Department (MPD).
A Superior Court jury returned the verdict after a six-day trial. According to the government’s evidence, Ramos, who is a member of MS-13, was a passenger in a car that was driving on I-295 NB, in Southwest, D.C., near exit 1, when the car he was in pulled alongside another vehicle being driven by Mr. Alvarado who was on his way to work with Mr. Carabantes. The defendant and another passenger in the car with him opened fire on Mr. Alvarado’s car, struck the victims, then pulled away.
The defendant was charged in 2021 after evidence was developed identifying him as one of the shooters. The defendant and Mr. Alvarado are both from El Salvador. The defendant believed Mr. Alvarado was somehow involved in the death of the defendant’s father, years earlier, in El Salvador.
The Honorable Mark Raffinan scheduled sentencing for July 12, 2024.
In announcing the verdict, U.S. Attorney Graves and Chief Smith commended the work of those who investigated the case from MPD, the FBI’s Washington Field Office, the Department of Justice Computer Crime and Intellectual Property Section, the Department of Homeland Security Investigations (HSI) Washington, D.C. Field Office, the Prince George’s County (Md.) Police Department, the Montgomery County (Md.) Police Department, the Chelsea, Massachusetts Police Department, and the Anne Arundel County (Md.) Fire Department. Finally, they commended the work of Assistant U.S. Attorneys Michael Liebman and Jacqueline Yarbro who prosecuted the case at trial.
Atlanta’s Former Chief Financial Officer Pleads Guilty to Theft of Government Funds and Tax ObstructionRead the Press Release
ATLANTA - The City of Atlanta’s former Chief Financial Officer (“CFO”), Jimmie “Jim” A. Beard, pleaded guilty today to theft of government funds, which included the purchase and possession of two machine guns, and obstructing federal tax laws.
“Jim Beard abused his power as the CFO for the City of Atlanta to steal tens of thousands of dollars from taxpayers to fund personal trips, luxuries, and even custom-built machine guns, then lied to the IRS and submitted altered records when called to account for suspicious write-offs,” said U.S. Attorney Ryan K. Buchanan. “The people of the City of Atlanta deserved better stewards of taxpayer money, and Beard’s guilty plea today is a demonstration that public officials who abuse their power will be held accountable.”
“Beard’s continuous abuse of his position as one of the most powerful executives in the City of Atlanta is not only a violation of his oath, but a violation to all other public official’s credibility, which erodes public trust in government,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “Public corruption is one of the FBI’s top priorities. It is our hope that by holding Beard accountable for his greed it will help regain some of the public’s trust.”
“As a public official, Beard was delegated to conduct city business on behalf of Atlanta residents,” said Demetrius Hardeman, Acting Special Agent in Charge, IRS Criminal Investigation, Atlanta Field Office. “Instead, he chose to steal from public coffers for his own benefit and willfully broke federal tax laws. Let Beard’s plea today serve as notice to others entrusted with carrying out government business on behalf of the people that IRS special agents and our law enforcement partners will investigate, and our justice system will hold accountable those who break the public’s trust.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: From approximately November 2011 to May 2018, Beard served as the CFO of the City of Atlanta. As CFO, Beard directed and managed the Department of Finance, with primary responsibility for oversight and management of the City’s financial condition.
During his tenure, Beard devised and executed a scheme to obtain money and property from the City of Atlanta for private use, including using City of Atlanta funds to: (1) pay for personal travel expenses for himself, his family, and his travel companions; (2) buy items for personal use, including two machine guns; (3) pay for travel to conferences or meetings for which the conference or meeting host reimbursed Beard, but Beard kept the money and did not give the reimbursement funds to the City of Atlanta; and (4) pay for travel that Beard falsely claimed to the IRS was related to his personal consulting business.
In total, Beard stole at least tens of thousands of dollars from the City of Atlanta. By way of example only:
- In August 2015, Beard used his City credit card to pay $1,278.72 for a hotel room at the J.W. Marriott Hotel in Chicago, Illinois for a three-night weekend stay. Beard told the City that the hotel room was for a “Swap Advisory Engagement.” In reality Beard was not in Chicago that weekend, but booked the hotel for his stepdaughter to attend the Lollapalooza music festival.
- In December 2015, Beard ordered two custom-built machine guns using a $2,641.90 check from the City, telling the manufacturer that the machine guns were for the Atlanta Police Department (“APD”) – even though he personally possessed the guns until about March 2017, when he abandoned the firearms at APD’s Executive Protection Office at City Hall.
- In April 2016, Beard used his City credit card to pay $648.20 for airfare from Atlanta, Georgia to New Orleans, Louisiana for a weekend trip to the New Orleans Jazz and Heritage Festival. However, Beard had no City business in New Orleans during that weekend and traveled with a personal companion. Additionally, he later represented to the IRS that this trip was for his personal consulting business and was not reimbursed by the City, claiming the charge as a business deduction to reduce the amount of personal taxes he owed.
- In June 2016, Beard used his City credit card to pay $951.20 for airfare to Washington, D.C. and $24.32 for a taxi for a meeting with the Municipal Securities Rulemaking Board (“MSRB”). Even though Beard charged the travel to the City, Beard asked the MSRB to reimburse him personally for these costs and submitted copies of his receipts to the MSRB. As a result, the MSRB issued a check to Beard in the amount of $1,276.52, which Beard kept and deposited into his personal bank account.
During his tenure as CFO, Beard also submitted to the IRS a tax return for 2013, in which he claimed that he owned a consulting business which incurred more than $33,500 in alleged business losses in 2013, including $12,000 for travel expenses and $7,115 for deductible meals and entertainment expenses. In July 2015, the IRS advised Beard that it was auditing that tax return and requested that Beard provide documentation to support the purported expenses for his consulting business. In response, Beard falsely provided: (1) receipts for airfare and hotels that Beard paid for using his City of Atlanta credit card (which Beard had previously told the City of Atlanta were for City business and his job as CFO); (2) expense reports for personal meals with his wife and personal companions; and (3) altered receipts that hid from the IRS the fact that the charges were incurred in connection with Beard’s work for the City of Atlanta. In reality, none of those expenses were for a consulting business.
In determining the actual sentence, the Court will consider the U.S. Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders.
Sentencing for Jimmie “Jim” A. Beard, 60, of Fort Lauderdale, Florida is scheduled for July 12, 2024, at 2:00 p.m. before U.S. District Judge Steve C. Jones.
This case was investigated by the Federal Bureau of Investigation and Internal Revenue Service Criminal Investigation with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Assistant U.S. Attorneys Garrett Bradford and Tiffany Johnson, Department of Justice Trial Attorney Trevor Wilmot, and former Assistant U.S. Attorney Jeffrey Davis 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.
Arizona Man Arrested for Making Online Threats to Kill Attendees at a Music Event in Tempe, ArizonaRead the Press Release
PHOENIX, Ariz. – Trevor Lee O’Dowd, 29, of Prescott Valley, was arrested last week for making online threats to kill anyone who attended yesterday evening’s music event at a venue in Tempe, Arizona. O’Dowd was charged by federal criminal complaint with a single count of Interstate Communication of Threats.
The complaint alleges that, between March 12 and 13, 2024, O’Dowd used a social media platform to post numerous threats to injure and kill attendees at the music event. O’Dowd posts indicated that he felt disrespected for not being invited to the event. His threatening posts included the following statements:
“If they go im going on a rampage im just letting yall know before it happens.”
“Anyone got an AK I can b[o]rrow. Bout to go end some lives since u think I’m never gonna make it.”
“I suggest hiring more security for ur events soon.”
“April 7th will be the last day for AZ hip hop.”
“[D]on’t show up to mill Ave is all imma say.”
In other messages, O’Dowd welcomed a police presence and added that it would “be a wild west shootout like the good old days . . . I have no reason to live so good luck with that.”
The single count of Interstate Communication of Threats carries a maximum sentence of five years in prison, a fine of up to $250,000, and up to three years of supervised release.
A complaint is simply a method by which a person is charged with criminal activity and raises no inference of guilt. An individual is presumed innocent until evidence is presented to a jury that establishes guilt beyond a reasonable doubt.
The Federal Bureau of Investigation is conducting the investigation in this case. The United States Attorney’s Office, District of Arizona, Phoenix, is handling the prosecution.
O'Dowd - ComplaintCASE NUMBER: 24-6135MJ
RELEASE NUMBER: 2024-046_O’Dowd# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on X @USAO_AZ for the latest news.Another Co-founder of Medical Charity in St. Joseph Pleads Guilty to $8 Million Fraud SchemeRead the Press Release
KANSAS CITY, Mo. – Another co-founder of a so-called Christian health care sharing ministry in St. Joseph, Mo., pleaded guilty in federal court today to his role in an $8 million wire fraud conspiracy that cheated hundreds of members, and to making false statements on a personal tax return.
James L. McGinnis, 77, of St. Joseph, waived his right to a grand jury and pleaded guilty before U.S. District Judge Greg Kays to a federal information that charges him with one count of conspiracy to commit wire fraud and one count of making false statements on a tax return.
McGinnis co-founded Medical Cost Sharing, a tax-exempt organization, and served as its chief operating officer from 2014 through December 2022.
Craig Anthony Reynolds, 62, of St. Joseph, another co-founder of Medical Cost Sharing, pleaded guilty to the same charges in a separate but related case on Nov. 14, 2023. Reynolds incorporated and ran Medical Cost Sharing as its president and chief executive officer from 2014 through December 2022.
McGinnis and Reynolds each admitted that he and his co-conspirators used false and fraudulent promises to market Medical Cost Sharing as a “Health Care Sharing Ministry” to defraud hundreds of “ministry members.” They collected more than $8 million in member “contributions,” yet paid only 3.1 percent in health care claims so that they could personally profit and take most of the members’ contributions for themselves.
McGinnis and Reynolds pocketed at least $5,168,268 from the member contributions from December 2015 through December 2022. Thus, McGinnis and Reynolds took at least 64 percent of total member contributions for their personal profit.
McGinnis and Reynolds marketed Medical Cost Sharing as a “Christian Health Care Sharing Ministry” through insurance brokers, radio stations, social media, and its website. Medical Cost Sharing sales materials promoted its 501(c)(3) tax-exempt designation, advertising that it was different from for profit health insurance. The Medical Cost Sharing website claimed, “while we are not an insurance company, many think of us as a Christian Health Insurance, or Christian Medical Insurance because, like conventional insurance plans, we help you pay your healthcare costs. We help you protect your family. But unlike these corporate, profit based plans, we are a healthcare sharing ministry … your healthcare costs are shared with other Christians enrolled in our medical sharing plans.”
Medical Cost Sharing promised its member that if they paid monthly “contributions,” Medical Cost Sharing would pay claims after the members’ “personal responsibility” (deductible) was met.
In reality, McGinnis and Reynolds admitted, Medical Cost Sharing rarely paid members’ health care claims. Sometimes Medical Cost Sharing would pay a part of a claim if the member filed a complaint with their state attorney general and/or hired an attorney to represent them against Medical Cost Sharing.
Medical Cost Sharing paid no claims at all from Feb. 22, 2021, through December 2022, although it collected a total of nearly $1.2 million in dues in 2021 and 2022.
On Dec. 13, 2022, federal agents served search warrants on the Medical Cost Sharing business location and the residences of McGinnis and Reynolds and seized property generated from Medical Cost Sharing proceeds. Medical Cost Sharing continued to try to collect membership dues after the search and seizure warrants. On Dec. 27, 2022, the court entered a temporary restraining order that prohibited Medical Cost Sharing, McGinnis, and Reynolds, from continuing to perpetrate a fraudulent scheme and from processing Medical Cost Sharing member payments, among other actions.
In addition to the wire fraud conspiracy, McGinnis also pleaded guilty today to making false statements on a personal tax return. McGinnis admitted that he filed a return that claimed he had no taxable income in 2019. Reynolds actually received at least $140,881 in taxable income in 2019.
Under the terms of today’s plea agreement, McGinnis must pay restitution to Medical Cost Sharing member victims and to the IRS. McGinnis also must forfeit to the government any property obtained from the wire fraud conspiracy and a money judgment representing all proceeds obtained from the scheme.
Under federal statutes, McGinnis is subject to a sentence of up to 23 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 Kathleen D. Mahoney, Patrick Daly, and John Constance. It was investigated by the FBI and IRS-Criminal Investigation.
FBI Website for Victims of Medical Cost Sharing Fraud
Those who believe they are victims of this fraud and wish to receive restitution for any losses suffered as a result may provide their information through the MCS Victim Information Page that has been established by the FBI.
https://www.fbi.gov/how-we-can-help-you/victim-services/seeking-victim-information/mcs-victim-information-page
Sunday 7 April 2024
Suspect Arrested in Arson at Burlington Office of Senator SandersRead the Press Release
Burlington, Vermont – The United States Attorney’s Office for the District of Vermont stated that Shant Soghomonian (also known as Michael Soghomonian), 35, previously of Northridge, California was arrested on April 7, 2024, pursuant to a federal criminal complaint charging him with using fire to damage the building at One Church Street in Burlington, Vermont – a building used in interstate commerce and as a place of activity affecting interstate commerce. An initial appearance before U.S. Magistrate Judge Kevin J. Doyle has not yet been scheduled.
According to court records, Soghomonian entered the building at One Church Street in Burlington on the morning of April 5, 2024, and proceeded to the third floor where the Vermont office of Senator Sanders is located. Soghomonian was recorded on a security video spraying a liquid near the outer door of the office and then lighting the area with a handheld lighter. A blaze quickly began while Soghomonian departed via a staircase. The resulting fire damaged the outside of the office door and surrounding areas, and the building sprinklers discharged on multiple floors. The Senator’s office was occupied by multiple employees who were not physically injured during the incident. It is not known how many other occupants were in the building, but no injuries were reported.
The United States Attorney emphasizes that the charges in the complaint are merely accusations, and that the defendant is presumed innocent unless and until he is proven guilty. If convicted, Soghomonian faces a maximum possible penalty of not less than 5 years and not more than 20 years in prison and a fine of up to $250,000. The actual sentence, however, would be determined by the Court with guidance from the advisory United States Sentencing Guidelines and sentencing factors in the United States Code.
U.S. Attorney Nikolas P. Kerest commended the joint investigatory efforts of the Burlington Police Department; the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Shelburne Police Department; the Williston Police Department; the Vermont State Police; and the U.S. Capitol Police.
The prosecutor is Assistant United States Attorney Matthew Lasher. Counsel for Soghomonian has not yet been identified.
Friday 5 April 2024
Wife of Large Scale Drug Trafficker Pleads Guilty to Money Laundering ConspiracyRead the Press Release
BOSTON – A California woman pleaded guilty yesterday in federal court in Boston to her role in a money laundering conspiracy involving proceeds of methamphetamine and marijuana distribution. Defendant assisted husband in laundering drug proceeds.
In total, over 160 pounds of pure methamphetamine, as well as an AK-47, a Glock with no serial number, two loaded Smith & Wesson handguns, and over 4,200 rounds of ammunition were seized during the investigation. An illegal marijuana grow operation with hundreds of marijuana plants was also dismantled. Two co-defendants Reshat Alkayisi and Andre Watson recently pleaded guilty and are scheduled to be sentenced on July 11, 2024 and July 16, 2024, respectively.
Christina Lua, 50, of Santa Rosa, Cali., pleaded guilty to one count of a second superseding indictment charging her with money laundering conspiracy. U.S. District Court Judge Nathaniel M. Gorton scheduled sentencing for July 12, 2024.
Lua was originally charged in a superseding indictment, along with four others, in September 2021 with money laundering conspiracy. The indictment charged a total of 11 defendants. In addition to the money laundering conspiracy, other defendants were charged with controlled substance and firearm offenses.
In approximately October 2020, investigators received information about drug trafficking activities of a large-scale methamphetamine supplier in the Boston area. In late 2020, investigators identified Alkayisi as a large-scale methamphetamine trafficker, who distributed multi-pound quantities to customers throughout the New England area. Lua was identified as Alkayisi’s wife, who assisted Alkayisi in laundering his drug proceeds, including by purchasing vehicles with cash drug proceeds, and by depositing cash drug proceeds in amounts less than $10,000 so as to conceal the nature of the funds and to avoid reporting requirements.
Lua is the ninth defendant to plead guilty. The two remaining defendants are scheduled to plead guilty.
The charge of money laundering conspiracy provides for a maximum sentence of 20 years in prison, three years of supervised release, a fine of the great of $500,000 or twice the amount of laundered proceeds, and a mandatory special assessment of $100. 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; Stephen Belleau, Acting Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; and Shawn Jenkins, Interim Commissioner of the Massachusetts Department of Correction made the announcement. Valuable assistance was provided by the Norfolk County Sherriff’s Office; and Concord, Hudson, Peabody, Reading, Watertown and Waltham Police Departments. Assistance was also provided by the Massachusetts, Rhode Island, New Hampshire and Maine State Police. Assistant U.S. Attorneys Alathea Porter, Katherine Ferguson, and James Arnold of the Criminal Division are prosecuting the case.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Wewoka Resident Sentenced to 12 Years for Armed AssaultRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Darian Ty Farris, age 27, of Wewoka, Oklahoma, was sentenced to 120 months for one count of Discharging a Firearm During and in Relation to a Crime of Violence and 30 months in custody for one count of Assault with a Dangerous Weapon with Intent to do Bodily Harm in Indian Country. The terms are set to be served consecutively.
The charges arose from investigations by the Federal Bureau of Investigation, the Oklahoma Bureau of Investigation, the Seminole County Sheriff’s Office, the Wewoka Police Department, the Seminole Lighthorse Police Department, and the Holdenville Police Department.
On August 10, 2023, Farris pleaded guilty to the charges. According to investigators, in the early morning hours of March 2, 2023, Farris approached a Wewoka residence and yelled through the front door, challenging the occupant to a fight. When the occupant stepped outside, Farris intentionally shot the victim in the abdomen with a firearm and fled. Law enforcement investigating the crime issued a warrant for Farris’s arrest. On April 18, 2023, law enforcement uncovered the outstanding warrant during a routine traffic stop. Faced with arrest, Farris led officers on a chase at speeds in excess of 100 miles per hour and fired upon pursuing officers.
The crimes occurred in Seminole County, within the boundaries of the Seminole 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. Farris will remain in the 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 Erin Cornell represented the United States at sentencing.
Westerville man sentenced to 7 years in prison for possessing machine gun after prior felony convictionsRead the Press Release
COLUMBUS, Ohio – Raymond A. Small, 38, of Westerville, was sentenced in U.S. District Court today to 84 months in prison for possessing a fully-automatic weapon as a previously convicted felon.
According to court documents, from August to December 2022, Small was involved in numerous illegal narcotics and firearms transactions with an undercover agent. The transactions involved one machine gun and seven other guns.
Small regularly recruited others to participate in firearms trafficking, including recruiting two co-defendants in this case.
For example, Small and a friend met up with the undercover agent in August 2022 and brought with them Oxycodone pills and a machine gun that had no serial numbers. In October 2022, Small accompanied a second individual and met again with the undercover agent to sell the agent two pistols.
Small committed these crimes while on probation for prior drug and weapons offenses.
Small pleaded guilty in August 2023 to possessing a machine gun and possessing a firearm as a previously convicted felon.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio, and Daryl S. McCormick, Special Agent in Charge, U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), announced the sentence imposed by Chief U.S. District Court Judge Algenon L. Marbley. Assistant United States Attorneys Kevin W. Kelley and S. Courter Shimeall are representing the United States in this case.
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Utah Man Sentenced to Seven Years in Prison for Murder-for-Hire SchemeRead the Press Release
UTICA, NEW YORK – Christopher Pence, age 43, of Cedar City, Utah, was sentenced yesterday to 84 months in prison for using the Internet to solicit and pay for the murders of two Rensselaer County residents.
United States Attorney Carla B. Freedman and Craig L. Tremaroli, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), made the announcement.
As part of his previously entered guilty plea, Pence admitted that between July 16 and August 9, 2021, from his computer at his home in Utah, he accessed a “darknet” website dedicated to arranging contract killings. Through the website, Pence arranged for the murder of two residents of Hoosick Falls, New York, and paid a website administrator approximately $16,000 worth of Bitcoin to facilitate the murders. Pence then provided the website administrator with the names, address and photographs of the intended victims, instructed the administrator to make the murders look like an accident or botched robbery, and requested that care be taken not to harm any of the children who resided with the victims.
The intended victims were not harmed and the FBI arrested Pence in Utah on October 27, 2021. He has remained in federal custody since that time. Following his arrest, Pence told investigators that he solicited the murders of the victims because of the fraught relationship between his family and the victims following Pence’s family’s adoption of several of the victims’ children.
United States District Judge David N. Hurd also ordered Pence to serve a 3-year term of supervised release following his release from prison.
The FBI investigated this case and Assistant U.S. Attorney Emmet J. O’Hanlon prosecuted this case.
United States Attorney’s Office and the U.S. Marshals Service Warn the Public of Jury Duty ScamRead the Press Release
Montgomery, Alabama – Acting United States Attorney Jonathan S. Ross and United States Marshal Jesse Seroyer, Jr., warn the public of scams involving supposed federal jury duty.
These scams typically involve a caller posing as a United States Marshal’s Service representative. The caller informs the victim that he or she is about to be arrested for failing to appear for federal jury duty. The perpetrator then instructs the victim that he or she can avoid arrest by paying a “fine” in accordance with specific instructions. To make the scam believable, the scammer may provide convincing information, including personal details about the victim (e.g., name, address, date of birth, etc.), the title and badge number of a law enforcement officer or court official, the name of a federal judge, or the courthouse address. Scammers are even using technology to mask their phone numbers and make it appear as if the call is coming from the court or a government agency. This tactic is called “spoofing” and has become very common with scammers nationwide. In some cases, the scammer may carry the scheme out via email using an official-looking email address.
The Middle District of Alabama has recently seen an increase in reports of these phone calls. The United States Attorney’s Office and the United States Marshals Service hope to raise awareness and, as a result, prevent more people from being victimized by the scam.
If you receive a jury duty related call or email, do not provide any personal information or send money. Federal courts do not call or email prospective jurors to ask for money or personal information and they never serve an arrest warrant by phone. Real, valid arrest warrants are always served in person. The court also does not demand the payment of money in lieu of arrest, nor does it accept payment via gift cards, pre-paid cards, wire transfers, or cryptocurrency deposits.
Anyone who receives a “jury duty scam” phone call or email should report it right away to the Federal Trade Commission at https://reportfraud.ftc.gov/#/, the U.S. Marshals Service at (334) 922-6960, or your local FBI Field Office. If available, please have the caller ID or email address information of the scammer when you call. You can authenticate a call by contacting the Clerk’s Office of the United States District Court in your area and verify the information given by the caller. Contact information for the U.S. District Court for the Middle District of Alabama can be found at www.almd.uscourts.gov/.
United States Attorney’s Office and Atlanta Field Office IRS Criminal Investigation Warn the Public of Unlawful Tax Return PreparersRead the Press Release
Montgomery, Alabama – As the April 15th federal tax filing deadline approaches, Acting United States Attorney Jonathan S. Ross for the Middle District of Alabama, and Acting Special Agent in Charge Demetrius Hardeman with the IRS Criminal Investigation Atlanta Field Office, urge taxpayers to be cautious when choosing return preparers and to review their returns thoroughly. An unscrupulous preparer who includes errors or false information on a tax return could leave a taxpayer open to liability for unpaid taxes, penalties, and interest.
“Tax time can be very stressful,” said Acting United States Attorney Ross. “Rushing to beat the deadline can result in overlooked mistakes and the filing of a false return to the IRS. Always inspect your returns before they are filed. If your tax preparer asks you to sign a blank return, refuses to sign your return as your preparer, or fails to give you a copy of your return, extra caution may be warranted. Taxpayers are responsible for the information on their tax returns, so it is important to choose a tax professional that you trust to prepare your returns correctly.”
“As we come to the end of this year’s tax season, I want to urge taxpayers to not let the deadline lead them to being less careful in choosing a reputable tax preparer,” said Acting Special Agent in Charge Hardeman. “For those who have already filed, it doesn’t hurt to review your tax information to ensure the information is correct.”
Over the years, the United States Attorney’s Office has worked with the IRS to bring criminal actions against dishonest tax preparers operating in the Middle District. The message of each prosecution is clear — those who prepare fraudulent returns will face serious and lasting consequences.
In the most recent example, on February 2, 2024, a federal judge sentenced 44-year-old April Michelle Nesbitt to 33 months in prison for including false information on a client’s return causing the taxpayer to receive greater refunds than he or she was entitled to receive. The judge also ordered Nesbitt to pay restitution in the amount of $46,669 to the IRS.
Acting United States Attorney Ross and Acting Special Agent in Charge Hardeman remind taxpayers that the IRS has information, tips and reminders on its site for choosing a tax preparer carefully (Choosing a Tax Professional and How to Choose a Tax Return Preparer) and has launched a free directory of credentialed federal tax preparers. The IRS also offers taxpayers tips to protect their identities and wallets when filing their taxes.
In addition, IRS Free File, a public-private partnership, offers free online tax preparation and filing options on IRS partner websites for individuals whose adjusted gross income is under $79,000. For individuals whose income is over that threshold, IRS Free File offers electronic federal tax forms that can be filled out and filed online for free. The IRS has tips on how seniors and individuals with low to moderate income can get other help or guidance on tax return preparation, too.
U.S. Court of Appeals Confirms Justice Department’s Authority to Investigate Potentially Anticompetitive Conduct by the National Association of RealtorsRead the Press Release
Today, the U.S. Court of Appeals for the District of Columbia Circuit lifted restrictions imposed by a lower court that had prevented the Justice Department from investigating potentially anticompetitive conduct by the National Association of Realtors (NAR). The D.C. Circuit’s decision confirms the United States’ position that it retains the authority to investigate NAR’s Participation Rule and Clear Cooperation Policy to protect competition for the benefit of homebuyers.
“Real-estate commissions in the United States greatly exceed those in any other developed economy, and this decision restores the Antitrust Division’s ability to investigate potentially unlawful conduct by NAR that may be contributing to this problem,” said Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division. “The Antitrust Division is committed to fighting to lower the cost of buying and selling a home. I would like to commend the staff of the Antitrust Division and our colleagues in the department for achieving this important result.”
The United States has filed several amicus briefs and statements of interest supporting competition in the real-estate industry and meaningful relief for homebuyers and sellers.