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13 May 2024
New Hampshire Man Pleads Guilty to Wire Fraud, Identity TheftRead the Press Release
PORTLAND, Maine: A Manchester, New Hampshire man pleaded guilty today in U.S. District Court in Portland to committing wire fraud and aggravated identity theft.
According to court records, from at least March 2019 through March 2022, Dominic Barbosa (aka, Christopher Barnhart), 29, obtained the identifications of individuals without their knowledge or consent. Barbosa stole mail in Massachusetts, New Hampshire and Maine, including bank account statements, tax returns, and other documents containing others’ means of identification. He kept records of that information to use in the scheme. As part of the scheme, Barbosa would apply for duplicate licenses for others, often changing the address, and then use the stolen identification information and duplicate driver’s licenses to open bank accounts, credit card accounts and lines of credit in others’ names. He also used the stolen identifications to make purchases or enter into contracts. When questioned by a United States Postal Inspector, Barbosa stated he had a cloud database with stolen identities, and investigators in Massachusetts found bins of mail and photocopies of identifying information in a storage unit Barbosa rented.
Barbosa faces up to 20 years imprisonment and a fine up to the greater of $250,000 or twice the gain or loss on one count of wire fraud. He faces a minimum of two years, to be served consecutively to any other sentenced imposed, and a fine up to $250,000 on the aggravated identity theft charge. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Maine Bureau of Motor Vehicles, South Berwick Police Department, Litchfield Police Department (NH), North Reading Police Department (MA), Salem Police Department (NH), United States Postal Inspection Service investigated the case.
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Edited 05/13/24: Headline corrected to reflect current residence for defendant
Naugatuck Man Charged with Child Exploitation OffensesRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, and Michael J. Krol, Special Agent in Charge of Homeland Security Investigations (HSI), New England, today announced that TRAVIS TILLEY, 40, of Naugatuck, has been charged by federal criminal complaint with child exploitation offenses.
As alleged in court documents and statements made in court, in 2019, Tilley was convicted in state court of risk of injury to a child, which involved sexual intercourse with a person under 13, and possession of child pornography. In August 2022, he was released from state custody and began serving a 15-year term of probation. On March 9, 2023, state probation officers seized Tilley’s laptop and a flash drive. Analysis of the seized items revealed that Tilley had utilized prohibited software and had accessed sites that provide sexually explicit material; that he was using encrypted email and messenger services; that he had used an operating system that is configured to leave no digital footprint; and that he was a member of internet chat rooms that focused on child pornography and AI-generated child pornography. The analysis also revealed two videos depicting the sexual exploitation of prepubescent children, approximately 60 images of AI-generated child pornography, and sexually explicit chat room messages sent by the laptop user.
The complaint charges Tilley with receipt of child pornography, which carries a mandatory minimum term of imprisonment of 15 years and a maximum term of imprisonment of 40 years, and with possession of child pornography, which carries a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of 20 years. The penalties in this matter are enhanced because of Tilley’s prior state convictions.
Tilley has been detained in state custody March 2023. He made his initial appearance today in New Haven federal court.
U.S. Attorney Avery stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This investigation is being conducted by Homeland Security Investigations (HSI) with the assistance of the Connecticut Court Support Services Division – Adult Probation Services and the Westport Police Department. The case is being prosecuted by Assistant U.S. Attorney Daniel E. Cummings through the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
Missouri Resident Pleads Guilty to Attempted Attack on the White House with a Rented TruckRead the Press Release
WASHINGTON – Sai Varshith Kandula, 20, of St. Louis, Missouri, pleaded guilty today in an attempted attack on the White House, on May 22, 2023, that included driving a U-Haul truck into the fence surrounding the building. Kandula pleaded guilty to a charge of willful injury or depredation of property of the United States.
The plea agreement was announced by U.S. Attorney Matthew M. Graves, Special Agent in Charge Matthew Stohler of the U.S. Secret Service Washington Field Office, FBI Special Agent in Charge Sanjay Virmani of the FBI Washington Field Office’s Counterterrorism Division, Chief Jessica M. Taylor of the U.S. Park Police, and Chief Pamela A. Smith of the Metropolitan Police Department (MPD).
U.S. District Court Judge Dabney L. Friedrich scheduled sentencing for August 23, 2024.. Kandula is an Indian national who was born in Chandanagar, India. At the time of the incident, he was a lawful permanent resident of the U.S. with a green card.
According to court documents, Kandula flew on a commercial flight from St. Louis, Missouri, to Washington D.C. in the afternoon of May 22, 2023, connecting through another airport on a one-way airline ticket. Kandula arrived at Dulles International Airport about 5:20 p.m., and rented a truck at 6:30 p.m. He stopped for food and gas, and then drove to Washington, D.C., where he crashed into the barriers protecting White House and President’s Park at 9:35 p.m. at the intersection of H Street, Northwest and 16th Street, Northwest. Kandula drove onto the sidewalk, sending pedestrians running from the scene. After striking the barriers, the truck backed up in reverse, then lurched forward, striking the metal barriers a second time. The second impact disabled the truck which began smoking from the engine compartment and leaking fluids.
Kandula next exited the vehicle and went to the back of the truck. From a backpack he removed a flag, a three-by-five foot red-and-white banner with a Nazi Swastika in the center, and brandished it. U.S. Park Police and the U.S. Secret Service officers arrested Kandula at the scene and took him into custody.
According to the plea agreement, at the time Kandula crashed the truck into the White House perimeter, he was attempting to gain access to the White House to seize political power. Kandula’s intent was to replace the democratically elected government with a dictatorship fueled by ideology of Nazi Germany and for himself to be put in charge of the United States. Kandula admitted to investigators that he would have arranged for the killing of the U.S. President and others if necessary to achieve his objective. His actions were calculated to influence or affect the conduct of government by intimidation or coercion.
Kandula’s actions caused $4,322 in damage to the National Park Service and over $50,000 in damage to U-Haul International. This amount included costs for repairing the metal bollard barriers to their original condition and ensuring structural soundness, oil and chemical removal, spill cleanup, and disposal of fluids from the crashed U-Haul, and the cost of the destroyed U-Haul truck.
Kandula planned the attack for several weeks. Prior to renting the truck and crashing it on White House grounds, he made several attempts to gain access to vehicles or armed security guards. For example, on April 22, 2023, Kandula requested 25 armed guards and an armored convoy from a security company located in Virginia. On May 4, 2023, Kandula attempted to contact several other companies in an attempt to rent a large commercial tractor-trailer truck, a dump truck, or another large truck. Kandula was unsuccessful in arraigning for security guards or a tractor-trailer truck or dump truck. Kandula had attempted to arrange for the services of these security guards and the use of large vehicles in order to carry out his offense against the U.S. Government.
This case was investigated by the U.S. Secret Service, the FBI’s Counterterrorism Division, the U.S. Park Police, and the MPD. It was prosecuted by Special Assistant U.S. Attorney Alex Schneider.
Mississippi Man Indicted for Federal Gun and Drug ChargesRead the Press Release
NEW ORLEANS, LOUISIANA – JARVIS WILSON (WILSON), age 39, a resident of Jackson, Mississippi was charged on May 9, 2024 by a federal grand jury in a six-count indictment announced U.S. Attorney Duane A. Evans. Counts 1 and 2 charges him with distribution of 500 grams or more of methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1) and (b)(1)(A). Count 3 charges him with 50 grams or more of distribution of methamphetamine in violation of Title 21, United States Code, Sections 841(a)(1) and (b)(1)(B). Count 4 charges him with being a felon in possession of firearm and ammunition, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(8). Count 5 charges him with possession of a firearm in furtherance of a drug trafficking crime, in violation of Title 18, United States Code, Section 924(c)(1)(A)(i). Count 6 charges him with maintaining a drug involved premises, in violation of Title 21, United States Code, Sections 856(a)(1).
If convicted, WILSON faces a mandatory minimum of 10 years up to life of imprisonment, up to a $10,000,000 fine, and at least 5 years of supervised release for Counts 1 and 2, a mandatory minimum of 5 years up to 40 years of imprisonment, up to a $5,000,000 fine, and at least 4 years of supervised release for Count 3, up to 15 years imprisonment, up to a $250,000 fine, and up to 3 years of supervised release for Count 4, a mandatory minimum of 5 years up to life imprisonment, up to a $250,000 fine, and up to 5 years of supervised release for Count 5, and up to 20 years imprisonment, up to a $500,000 fine, and up to 3 years of supervised release for Count 6. WILSON also faces payment of a $100 mandatory special assessment fee as to all 6 counts.
According to court documents, on March 26, 2024, April 8, 2024, and May 2, 2024, WILSON knowingly and intentionally sold methamphetamine and maintained a drug involved premise to for the purpose of distributing the methamphetamine. WILSON was also a felon in possession of a Ruger Model LCR, .22 caliber revolver and Smith and Wesson Model 1000 Super, 12-gauge shotgun and ammunition in the furtherance of his drug trafficking crimes.
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.
U.S. Attorney Evans reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
The case was investigated by the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives. It is being prosecuted by Assistant United States Attorney Troy Bell of the Violent Crime Unit.
Middlesex County Woman Sentenced to Two Years in Prison for Stealing COVID-19 Unemployment BenefitsRead the Press Release
TRENTON, N.J. – A Middlesex County, New Jersey, woman was sentenced to 24 months in prison for conspiring to illegally obtain over $400,000 in COVID-19 unemployment benefits, U.S. Attorney Philip R. Sellinger announced today.
Yanira Abreu, 42, of Keasbey, New Jersey, previously pleaded guilty before U.S. District Judge Robert Kirsch to an information charging her with one count of conspiracy to commit wire fraud. Judge Kirsch imposed the sentence on May 9, 2024, in Trenton federal court.
Abreu’s conspirator, Christopher Valerio, 33, of Perth Amboy, New Jersey, previously pleaded guilty and was sentenced on April 30, 2024, to 30 months in prison. A third conspirator, Jose Tavares of New York, is charged by indictment and his case remains pending.
According to documents filed in this case and statements made in court:
From July 2020 through February 2021, Abreu, Valerio, and others submitted false and fraudulent applications for unemployment insurance benefits to the New York Department of Labor (NYDOL) through fictitious online profiles that they created using personally identifiable information, including names, dates of birth, and Social Security numbers, of other individuals without their consent. Once the NYDOL processed and approved the fraudulent applications, Abreu and her conspirators obtained debit cards with illegally obtained funds totaling $444,728, which they used for personal gain.
In addition to the prison term, Judge Kirsch sentenced Abreu to two years of supervised release and ordered restitution and forfeiture, each in the amount of $444,728.
U.S. Attorney Sellinger credited special agents of Homeland Security Investigations Newark, under the direction of Acting Special Agent in Charge William S. Walker; special agents of the U.S. Department of Labor, Office of Inspector General, Northeast Region, under the direction of Special Agent in Charge Jonathan Mellone, and postal inspectors of the U.S. Postal Inspection Service in Newark, under the direction of Inspector in Charge Christopher A. Nielsen, Philadelphia Division, with the investigation leading to the sentencing.
The District of New Jersey COVID-19 Fraud Enforcement Strike Force is one of five strike forces established throughout the United States by the U.S. Department of Justice to investigate and prosecute COVID-19 fraud. The strike forces focus on large-scale, multi-state pandemic relief fraud perpetrated by criminal organizations and transnational actors. The strike forces are interagency law enforcement efforts, using prosecutor-led and data analyst-driven teams designed to identify and bring to justice those who stole pandemic relief funds.
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 Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The government is represented by Assistant U.S. Attorney Fatime Meka Cano of the Economic Crimes Unit in Newark.
The charges and allegations against Tavares are merely accusations, and Taveras is presumed innocent unless and until proven guilty.
Michigan Resident and Heavy-Duty Diesel Parts Supplier Indicted for Conspiracy to Violate the Clean Air ActRead the Press Release
ALBANY, NEW YORK – Kyle Offringa, age 33, of Caledonia, Michigan, and Highway and Heavy Parts, LLC (“HHP”), a heavy-duty diesel parts supplier headquartered in Coleman, Michigan, were recently indicted by a grand jury in the Northern District of New York for conspiracy to violate the Clean Air Act (“CAA”) United States Attorney Carla B. Freedman and Tyler Amon, Special Agent in Charge of the United States Environmental Protection Agency (“EPA”)’s Criminal Investigations Division (“CID”), Northeast Area Branch, made the announcement.
According to the indictment, between at least June 5, 2017 and March 27, 2019, HHP and Offringa conspired with a diesel truck operator in Fultonville, New York, and others, to remove, delete and tamper with monitoring devices on heavy-duty diesel trucks required to be maintained by the CAA and EPA regulations.
Pursuant to the CAA, the EPA enacted regulations that require heavy-duty diesel engine manufacturers to limit emissions on those engines. To comply with these regulations, manufacturers install hardware components, including filters, exhaust recirculation systems and exhaust aftertreatment systems. Heavy-duty diesel trucks are also required under the CAA to maintain an onboard-diagnostic system (“OBD”), which monitors the functionality of the hardware emissions control components. If the OBD detects that an emissions control component is not working, or has been removed, it will ultimately put the truck into what is known as “limp mode,” which limits the top speed to as low as 5 miles per hour. This is designed to incentivize truck operators to repair any faulty components.
As alleged in the indictment, truck operators deleted the emissions control hardware on their heavy-duty diesel trucks, which significantly increased pollution emitted by those trucks but allowed them to run at higher horsepower, with greater fuel efficiency, and with reduced maintenance cost. To help truck operators who had deleted emissions hardware, HHP charged its customers a fee for the services of Offringa, who reprogrammed the OBDs on vehicles so they would not detect that the components had been tampered with. HHP was paid between $1,250 and $1,750 for each truck reprogrammed by Offringa – who then received a substantial portion of that payment from HHP.
The charges in the indictment are merely accusations. The defendants are presumed innocent unless and until proven guilty.
HHP was arraigned Friday in Albany before United States Magistrate Judge Christian F. Hummel. Offringa is scheduled to be arraigned May 15.
Two alleged coconspirators, Patrick Oare and DAIM Logistics, Inc. of Fultonville, previously pled guilty to violating the CAA and are scheduled to be sentenced by United States District Judge Mae A. D’Agostino in Albany on June 21, 2024.
The charge filed against Offringa carries a maximum term of 5 years in prison, a fine of up to $250,000, and a term of supervised release of up to 3 years. The charge filed against HHP carries a fine of up to $500,000 and a term of probation of up to 5 years. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
EPA CID is investigating the case, with the assistance of the Federal Bureau of Investigation and the New York State Department of Environmental Conservation Police. Assistant United States Attorney Benjamin S. Clark is prosecuting the case.
Mexican Man Pleads Guilty to Illegal ReentryRead the Press Release
BOSTON – A Mexican man pleaded guilty today to illegally reentering the United States after deportation.
Ramon Alfaro-Orona, 39, pleaded guilty to one count of unlawful reentry of a deported alien. U.S. District Court Judge Margaret R. Guzman scheduled sentencing for Aug. 5, 2024. In September 2023, Alfaro-Orona was charged by criminal complaint.
Alfaro-Orona was deported from the United States on eight prior occasions, with the most recent being Sept. 30, 2014. Sometime after his September 2014 removal, Alfaro-Orona unlawfully reentered the United States. On Aug. 23, 2023, Alfaro-Orona was taken into custody by immigration authorities following his arraignment in Leominster District Court for three counts of larceny by check over $1,200.
Alfaro-Orona was convicted for unlawful reentry on two prior occasions in November 2013 and March 2014.
The charge of unlawful reentry of a deported alien provides for a sentence of up to 10 years in prison, three years of supervised release, and a fine of up to $250,000. The defendant will be subject to deportation proceedings upon completion of an imposed sentence. 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 and Todd M. Lyons, Field Office Director, Boston, U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations made the announcement today. Assistant U.S. Attorney Brian Sullivan of the Major Crimes Unit is prosecuting the case.
Mercer County Man Charged with Communicating Threats to Attack White PeopleRead the Press Release
TRENTON, N.J. – A Mercer County, New Jersey, man was arrested Friday night for transmitting via the internet a post containing threats to kill white people, U.S. Attorney Philip R. Sellinger announced today.
Joshua Cobb, 23, of Trenton, New Jersey, was arrested and charged by complaint with one count of transmitting a threat in interstate and foreign commerce. He is scheduled to appear this afternoon before U.S. Magistrate Judge Rukhsanah Singh in Trenton federal court.
According to documents filed in this case and statements made in court:
On Dec. 17, 2022, Cobb used a social media application to post a message, stating:
- I want to cause mayhem on the white community. The reason i specifically want to target white people is because as a black male, they will NEVER understand my struggles. Same way I will never understand their struggles, but I don’t care to. I want to erase them. All of them really, but in this case as many as I possibly can. As of today I have officially began planning my attack. It is going to take place in 2023 in the state of New Jersey, I have not chosen a exact date but I am going to be sure it is close to an important holiday to their race. I have a location in mind already which I have frequented for the past year and I am certain nobody there is armed to be able to stop me from spraying them to the ground. I have already acquired 2 of the 4 firearms I plan to use for my attack, and I also know my entry and exit points already after the mayhem.
Following this post, in April and May 2023, Cobb made several additional posts on another social media application, in which he discussed his hopes of progressing into a serial killer, stating:
- Imagine the rush you’d feel while shooting some sh*t up. Probably could get literally high off the adrenaline alone. I’d probably OD on my own adrenaline after the 10th body goes down.
- 100% someday. Just not yet thought. I want to continue training and buying more ammunition.
- Tbh I hope I do progress into a serial killer because I f*cking hate life man... But one day everyone will suffer. I promise I will make everyone feel my f*ucking pain. My deep, sincere, raw, & sharp pain.
- There is no way out for me. The only way out is bloodshed.
- Just wait man. Remember [my username]. [I] will leave clues when im done.
- I’m just leaving evidence for whoever investigates my case.
Cobb joined the U.S. Marine Corps in 2023 and began basic training in June 2023. Cobb was stationed in California until his recent discharge.
In statements to law enforcement, Cobb admitted to writing the above-described posts and provided detailed information on locations he had considered as possible targets for his attack, including a Jersey Strong gym and an Aldi grocery store in Robbinsville, New Jersey. Cobb also discussed his access to guns and idolized other mass shooters.
A lawful search of Cobb’s cell phone revealed additional notes from April and May 2023 expressing Cobb’s homicidal ideations, stating:
- It’s all a f*cking game and you all are going to die. I currently lack the means necessary to kill as many as I intend to but one day I will have the available resources (finance) to purchase the appropriate weaponry for my killing(s).
- All my life I have been doubyed… Ive been taken as the joke… ive been f*cked around with… well now its my turn. I am going to kill one of you mother*ckers I f*cking hate humanity. All of you f*cking duck and I don’t give a single f*ck about any of you though I may appear I do.
- Im ready to grt to the good part of my story where I start taking you mother f*ckers out and killing you all… My rampage will soon happen… I plan to now continue accumulating the necessary equipment needed to execute. Once all equipment is in, time will then tell. You will all die.
- I hate all of this sh*t and I feel like my only way out of the pain and suffering is by exploding. So I await… I await that moment so I can make those moments final. For whomever… myself or a victim.
Cobb’s phone also contained notes on how to bring guns into New Jersey.
The charge of transmitting a threat in interstate and foreign commerce is punishable by a maximum penalty of five years in prison and a $250,000 fine.
U.S. Attorney Sellinger credited special agents and task force officers of the FBI Newark Joint Terrorism Task Force, under the direction of Special Agent in Charge James E. Dennehy, with the investigation leading to the arrest. He also thanked the Naval Criminal Investigative Service; the U.S. Attorney’s Office for the Central District of California, under the direction of U.S. Attorney E. Martin Estrada, agents of the FBI Field Office in Los Angeles, California, under the direction of Acting Assistant Director in Charge Mehtab Syed; the Hamilton Police Division, under the direction of Chief Kenneth R. DeBoskey; the Robbinsville Police Department, under the direction of Chief Michael K. Polaski; and the Mercer County Prosecutor’s Office, under the direction of Prosecutor Angelo J. Onofri.
The government is represented by Assistant U.S. Attorney Vera Varshavsky of the U.S. Attorney’s Office’s National Security Unit, with assistance from the U.S. Department of Justice’s Counterterrorism Section of the National Security Division.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
cobb.complaint.pdfLincoln Man Sentenced to Seven Years in Child Pornography CaseRead the Press Release
United States Attorney Susan Lehr announced that Joseph D. Maciarz, Jr., 63, of Lincoln, Nebraska, was sentenced on May 13, 2024, in federal court in Lincoln for receipt of child pornography. Senior United States District Court Judge John M. Gerrard sentenced Maciarz to 84 months’ imprisonment. There is no parole in the federal system. After Maciarz’s release from prison, he will begin a 12-year term of supervised release. Maciarz was further ordered to pay a total of $5,100 in special assessments, and $24,000 in restitution.
On November 5, 2022, an investigator with the Nebraska State Patrol was able to download a few files containing child pornography from a peer-to-peer file sharing network. The investigator was then able to obtain the IP address of the computer sharing the files. The IP address traced back to Maciarz’s residence. Police obtained a search warrant for the residence, which was executed on January 19, 2023. Numerous electronic devices were seized. Maciarz was home at the time and interviewed by police. He admitted that he had been downloading and uploading child pornography off and on for the past twenty years. The electronic devices were later examined and found to contain more than 4,000 files depicting child pornography. In some of the files, the victims ranged in age from infant to 9 years old.
This case was investigated by the Nebraska State Patrol.
Licking County man pleads guilty to conspiracy crime involving videos of monkey torture & mutilationRead the Press Release
COLUMBUS, Ohio – A plea agreement was unsealed today in which a Licking County man pleaded guilty to creating and distributing videos depicting acts of extreme violence and sexual abuse against monkeys.
Ronald P. Bedra, of Etna, pleaded guilty to conspiring to create and distribute “animal crush” videos.
According to court documents, Bedra conspired with others to create and distribute the videos that depicted acts of sadistic violence against baby and adult monkeys, including having digits and limbs severed and being forcibly sodomized with a heated screwdriver.
The conspirators used encrypted chat apps to direct money to individuals in Indonesia willing to commit the requested acts of torture on camera. Bedra also mailed a thumb drive containing 64 videos of monkey torture to a co-conspirator in Wisconsin.
Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division (ENRD) and U.S. Attorney Kenneth L. Parker for the Southern District of Ohio made today’s announcement.
The U.S. Fish and Wildlife Service and FBI investigated the case.
Trial Attorney Mark Romley and Senior Trial Attorney Adam Cullman of ENRD’s Environmental Crimes Section and Assistant U.S. Attorney Nicole Pakiz for the Southern District of Ohio are prosecuting the case.
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Klamath Falls Man Sentenced to Federal Prison for Illegally Possessing MethamphetamineRead the Press Release
MEDFORD, Ore.—A Klamath Falls, Oregon man with multiple previous drug- and firearm-related convictions was sentenced to federal prison today after he was caught by local law enforcement with methamphetamine and a handgun.
Andrew Miles Devos, 42, was sentenced to 75 months in federal prison and five years’ supervised release.
According to court documents, in January 2020, law enforcement learned that Devos, who at the time had eight prior felony convictions for drug and firearm offenses, was actively selling methamphetamine in Klamath Falls. After further investigation, on January 8, 2020, Devos was arrested when he arrived to complete a drug transaction. Law enforcement officers searched Devos’ vehicle and located 80 grams of methamphetamine, a 9mm firearm, 50 rounds of 9mm ammunition, a digital scale, and drug packaging materials concealed inside a backpack.
On June 3, 2020, Devos was charged by criminal complaint with illegally possessing a firearm and ammunition as a convicted felon, possessing a firearm in furtherance of a drug trafficking crime, and possessing with intent to distribute methamphetamine. Later, on September 17, 2020, a federal grand jury in Medford indicted Devos on the same charges.
Prior to being sentenced today, Devos pleaded guilty to a one-count superseding criminal information charging him with possessing with intent to distribute methamphetamine.
This case was investigated by the Basin Interagency Narcotics Enforcement Team (BINET) with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosive (ATF). It was prosecuted by John C. Brassell, Assistant U.S. Attorney for the District of Oregon.
BINET is a Klamath Falls area narcotics task force comprised of Oregon State Police, the Klamath Falls Police Department, and Oregon National Guard.
Kingdom City Business Owner Sentenced for $673,000 CARES Act FraudRead the Press Release
JEFFERSON CITY, Mo. – A Kingdom City, Mo., business owner was sentenced in federal court today for fraudulently receiving more than $673,000 in loans for several businesses under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
Scott Allen Maples, 40, was sentenced by U.S. District Judge Brian C. Wimes to 18 months in federal prison without parole. The court also ordered Maples to pay $684,034 in restitution to the Small Business Administration.
On Feb. 7, 2023, Maples pleaded guilty to one count of bank fraud. Maples admitted that he fraudulently applied for and received Paycheck Protection Program (PPP) loans for several businesses. When Maples applied for PPP loans, he reported exaggerated and inaccurate payroll expenses and submitted fabricated and altered bank statements and tax forms. Under the CARES Act, both the principal and interest on those loans were eligible for forgiveness if the loan money was spent for permissible expenses (such as payroll, mortgage interest, rent and utilities) and a requisite portion of the loan went towards payroll expenses.
After submitting five fraudulent loan applications, Maples received a total of $673,127.04 in loan proceeds.
Maples admitted that he submitted a loan application to Square, Inc., a company authorized to issue PPP loans, on May 6, 2020, on behalf of Area 23, LLC, claiming 21 employees and an average monthly payroll of $69,548. Maples submitted fabricated documents to support the loan application. He received a $173,872 loan. Maples also submitted a loan application to US Bank on May 15, 2020, for the same business, Area 23, making the same claims of employees and payroll and again including fabricated documents to support the loan application. Maples again received a $173,872 loan.
Maples also received a $51,750 PPP loan for Maples Enterprises through Square. In the loan application, Maples indicated that there were six employees earning a total of $20,700 per month on average. In reality, Department of Labor records reflected that there was only one employee earning $182.50 in the first quarter of 2019. Another business, Clearance Depot, received a $270,632 PPP loan. Maples submitted statements in support of this loan that were later found to be altered and incorrect.
Maples also submitted an application for an Economic Injury Disaster Loan seeking $30,000. This loan also contained suspected misrepresentations that overstated the prior year’s revenues. Maples received a $3,000 advance on this loan, but the loan that he sought was not issued.
This case was prosecuted by Assistant U.S. Attorney Lauren E. Kummerer. It was investigated by the Small Business Administration Office of Inspector General, the Treasury Inspector General for Tax Administration, the FDIC Office of Inspector General, and IRS-Criminal Investigation.
Kabbage Inc. Agrees to Resolve Allegations That the Company Defrauded the Paycheck Protection ProgramRead the Press Release
The Justice Department announced today that now-bankrupt financial technology company Kabbage Inc., doing business as KServicing, has agreed to resolve allegations that it violated the False Claims Act (FCA) by knowingly submitting thousands of false claims for loan forgiveness, loan guarantees, and processing fees to the U.S. Small Business Administration (SBA) in connection with its participation in the Paycheck Protection Program (PPP). Kabbage is now winding down its operations as KServicing Wind Down Corp. after filing for Chapter 11 bankruptcy in the District of Delaware in October 2022. As part of the resolution announced today, the United States will receive a general unsecured claim in the bankruptcy proceeding.
Congress created the PPP in March 2020, as part of the Coronavirus Aid, Relief and Economic Security (CARES) Act, to provide federally guaranteed loans to small businesses suffering economic hardship due to the COVID-19 pandemic. The PPP is administered by the SBA. The CARES Act authorized private lenders to approve PPP loans for eligible borrowers who could later seek forgiveness of the loans so long as they used loan funds on employee payroll and other eligible expenses. Among other things, participating PPP lenders were required to confirm borrowers’ average monthly payroll costs by reviewing the payroll documentation submitted with the borrower’s application. Lenders were also required to follow applicable Bank Secrecy Act/Anti-Money Laundering (BSA/AML) requirements. Any unforgiven or defaulted PPP loans were guaranteed by the SBA so long as the lender adhered to PPP requirements. Lenders who originated PPP loans were paid a fixed fee calculated as a percentage of the loan amount by the SBA.
“The PPP was intended to provide critical assistance to businesses to alleviate the economic challenges imposed by the pandemic,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department is committed to holding accountable lenders that knowingly contributed to the misuse of such funds by approving PPP loans for ineligible borrowers or otherwise failing to comply with applicable program requirements.”
“When the nation was facing a pandemic-induced crisis, Kabbage received tens of millions of dollars through the PPP to help lend taxpayer funds to businesses in need. Instead of safeguarding those funds, Kabbage doled out inflated and fraudulent loans, in an effort to maximize its profits,” said Acting U.S. Attorney Joshua S. Levy for the District of Massachusetts. “Then, Kabbage sold its assets and left the remaining company so low on cash that it ultimately went bankrupt, leaving taxpayers to take the loss for Kabbage’s conduct. This office will continue pursuing any company or individual, like Kabbage, that took advantage of the PPP.”
“Lenders who participated in PPP were trusted on their word that they would comply with PPP requirements and do their part in safeguarding taxpayer funds from fraudsters,” said U.S. Attorney Damien M. Diggs for the Eastern District of Texas. “PPP lenders and lender service providers who broke that trust should be held accountable, as they ignored signs of fraud, and chose profit at the expense of taxpayers and struggling small businesses badly hit by the COVID-19 pandemic. This settlement with Kabbage demonstrates our office’s firm commitment to pursuing all parties who played a part in committing PPP fraud.”
“The PPP Program provided those small businesses affected by the COVID-19 pandemic with forgivable loans for eligible payroll and non-payroll costs,” said General Counsel Therese R. Meers of the SBA. “SBA has made it a top priority to pursue participants in the PPP Program who committed fraud or otherwise abused the program.”
“Today we are sending a clear message that compliance with program rules is non-negotiable, especially when supporting the nation’s small businesses during the pandemic,” said Assistant Inspector General for Investigations Shafee Carnegie of the SBA Office of Inspector General. “This settlement highlights our dedication to preserving the integrity of the PPP and holding entities accountable for misusing taxpayer-funded programs. I want to thank the Justice Department and our law enforcement partners for their support and commitment to pursuing justice in this case."
“It is imperative that entities like Kabbage, which cause harm to federal programs for their own profit, face the consequences of their actions,” said Executive Assistant Director Timothy Langan of the FBI’s Criminal, Cyber, Response and Services Branch. “The FBI and our partners will continue to relentlessly pursue companies that are unwilling to comply with requirements in accordance with the law.”
The resolution announced today addresses two different violations allegedly committed by Kabbage that resulted in the submission and payment of false claims. First, the United States alleged that Kabbage systemically inflated tens of thousands of PPP loans, causing the SBA to guarantee and forgive loans in amounts that exceeded what borrowers were eligible to receive under program rules. As part of the settlement, KServicing Wind Down Corp. admitted and acknowledged that Kabbage: (1) double-counted state and local taxes paid by employees in the calculation of gross wages; (2) failed to exclude annual compensation in excess of $100,000 per employee and (3) improperly calculated payments made by employers for leave and severance. The United States alleged that Kabbage was aware of these errors as early as April 2020, yet Kabbage failed to remedy all incorrect loans that had already been disbursed and continued to approve additional loans with miscalculations.
Second, United States alleged that Kabbage knowingly failed to implement appropriate fraud controls to comply with its PPP and BSA/AML obligations. In particular, the United States alleged that Kabbage removed underwriting steps from its pre-PPP procedures to process a greater number of PPP loan applications and maximize processing fees. The government further alleged that Kabbage knowingly set substandard fraud check thresholds despite knowledge of SBA’s concerns that fraudulent borrowers might seek to benefit from the PPP, relied on automated tools that were inadequate in identifying fraud, devoted insufficient personnel to conduct fraud reviews, discouraged its fraud reviewers from requesting information from borrowers to substantiate their loan requests and submitted to the SBA thousands of PPP loan applications that were fraudulent or highly suspicious for fraud.
As part of the government’s resolution of these claims, the government will receive a total allowed, unsubordinated, general unsecured claim in the bankruptcy proceeding of up to $120 million. The amount the government will recover on this claim will depend on the ultimate amount of assets available to the bankruptcy estate for distribution to unsecured creditors. The resolution also provides for Kabbage Inc. to receive a $12.5 million credit for payments previously returned to the SBA during the department’s investigation of the alleged misconduct.
The claims resolved by the resolution announced today include claims that were brought under the qui tam or whistleblower provisions of the False Claims Act in two actions: one by an accountant who submitted PPP loan applications to Kabbage and other lenders and the other by a former analyst in Kabbage’s collections department. Under the Act, a private party can file an action on behalf of the United States and receive a portion of any recovery. The qui tam cases are captioned U.S. ex rel. Berteletti v. Kabbage, Inc., et al., No. 1:20-cv-12114 (D. Mass.), and U.S. ex rel. Pietschner v. Kabbage, Inc., et al., No. 4:21-cv-110-SDJ (E.D. Tex.).
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Justice Department in partnership with agencies across the federal government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international actors committing civil and criminal fraud and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit www.justice.gov/coronavirus.
Tips and complaints from all sources about potential fraud affecting COVID-19 government relief programs can be reported by visiting the webpage of the Civil Division’s Fraud Section, which can be found here. Anyone with information about allegations of attempted fraud involving COVID-19 can also report it by calling the Justice Department’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The government’s investigation of Kabbage was a coordinated effort among the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, the U.S. Attorney’s Office for the District of Massachusetts and the U.S. Attorney’s Office for the Eastern District of Texas, with valuable assistance provided by the FBI; Federal Reserve Board, Office of Inspector General; Federal Deposit Insurance Corporation, Office of Inspector General and SBA’s Office of General Counsel and Office of the Inspector General. The United States is represented in the bankruptcy proceeding by the Justice Department’s Civil Division, Commercial Litigation Branch, Corporate/ Financial Litigation Section
Fraud Section Trial Attorney Sarah E. Loucks; Assistant U.S. Attorneys Brian M. LaMacchia and Diane Seol for the District of Massachusetts and Assistant U.S. Attorney Betty Young for the Eastern District of Texas handled the matter. Corporate/ Financial Litigation Section Trial Attorneys Alastair Gesmundo, Stanton McManus and Shane Huang represent the United States in the bankruptcy proceeding.
The claims asserted in the settlements are allegations only, and there has been no determination of liability.
DMA Settlement EDTX SettlementKabbage Agrees to Pay up to $120 Million to Resolve Allegations that it Defrauded the Paycheck Protection ProgramRead the Press Release
BOSTON – Bankrupt lender Kabbage, Inc. d/b/a KServicing, has agreed to resolve allegations that it knowingly submitted thousands of false claims for loan forgiveness, loan guarantees, and processing fees to the U.S. Small Business Administration (SBA) as part of the Paycheck Protection Program (PPP), in violation of the False Claims Act (FCA).
Kabbage is now winding down its operations as KServicing Wind Down Corp. after filing for Chapter 11 bankruptcy in the District of Delaware in October 2022. The resolution consists of two separate settlements with KServicing Wind Down Corp., that together provide the United States with an allowed, unsubordinated, general unsecured bankruptcy claim for recovery of up to $120 million. The amount the government will recover on this claim will depend on the ultimate amount of assets available to the bankruptcy estate for distribution to unsecured creditors.
“When the nation was facing a pandemic-induced crisis, Kabbage received tens of millions of dollars through the PPP to help lend taxpayer funds to businesses in need. Instead of safeguarding those funds, Kabbage doled out inflated and fraudulent loans, in an effort to maximize its profits,” said Acting United States Attorney Joshua S. Levy for the District of Massachusetts. “Then, Kabbage sold its assets and left the remaining company so low on cash that it ultimately went bankrupt, leaving taxpayers exposed to the risk of loss caused by Kabbage’s conduct. This office will continue pursuing any company or individual, like Kabbage, that took advantage of the PPP.”
“The PPP was intended to provide critical assistance to businesses to alleviate the economic challenges imposed by the pandemic,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department is committed to holding accountable lenders that knowingly contributed to the misuse of such funds by approving PPP loans for ineligible borrowers or otherwise failing to comply with applicable program requirements.”
“Lenders who participated in PPP were trusted on their word that they would comply with PPP requirements and do their part in safeguarding taxpayer funds from fraudsters,” said United States Attorney Damien M. Diggs for the Eastern District of Texas. “PPP lenders who broke that trust should be held accountable, as they ignored signs of fraud, and chose profit at the expense of taxpayers and struggling small businesses badly hit by the COVID-19 pandemic. This settlement with Kabbage demonstrates our office’s firm commitment to pursuing all parties who played a part in committing PPP fraud.”
“The PPP Program provided those small businesses affected by the COVID-19 pandemic with forgivable loans for eligible payroll and non-payroll costs,” said SBA General Counsel Therese R. Meers. “SBA has made it a top priority to pursue participants in the PPP Program who committed fraud or otherwise abused the program.”
“Today we are sending a clear message that compliance with program rules is non-negotiable, especially when supporting the nation’s small businesses during the pandemic,” said SBA OIG’s Assistant Inspector General for Investigations Shafee Carnegie. “This settlement highlights our dedication to preserving the integrity of the Paycheck Protection Program and holding entities accountable for misusing taxpayer-funded programs. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their support and commitment to pursuing justice in this case.”
“Today’s settlement resolves allegations that this financial services company sought to cash in on a public health crisis by inflating the loan applications of small business owners as well as intentionally profiting off of fraudulent loan applications,” said Jodi Cohen, Special Agent in Charge of the FBI Boston Division. “Anyone who tries to defraud the government and taxpayers like this will be held accountable by the FBI and our partners because every dollar diverted for fraudulent reasons is a dollar not available for legitimate applicants in need.”
The first settlement, which provides the United States with a claim for recovery of up to $63.2 million, resolves allegations that Kabbage systemically inflated tens of thousands of PPP loans, causing the SBA to guarantee and forgive loans in amounts that exceeded what borrowers were eligible to receive under program rules. As part of the settlement, KServicing Wind Down Corp. admitted and acknowledged that Kabbage double-counted state and local taxes paid by employees in the calculation of gross wages; failed to exclude annual compensation in excess of $100,000 per employee; and improperly calculated payments made by employers for leave and severance. The United States alleged that Kabbage was aware of its errors as early as April 2020, yet Kabbage failed to remedy all incorrect loans that had already been disbursed and continued to approve additional loans with miscalculations. The resolution also provides for Kabbage to receive a $12.5 million credit for payments it previously returned to the SBA during the Department’s investigation of this alleged misconduct.
The second settlement, which provides the United States with a claim for recovery of up to $56.7 million, resolves allegations that Kabbage knowingly failed to implement appropriate fraud controls to comply with its PPP and BSA/AML obligations. In particular, the United States allege that Kabbage removed underwriting steps from its pre-PPP procedures in order to process a greater number of PPP loan applications and maximize processing fees. The government further alleged that Kabbage knowingly set substandard fraud check thresholds despite knowledge of SBA’s concerns that fraudulent borrowers might seek to benefit from the PPP; relied on automated tools that were inadequate in identifying fraud; devoted insufficient personnel to conduct fraud reviews; discouraged its fraud reviewers from requesting information from borrowers to substantiate their loan requests; and submitted to the SBA thousands of PPP loan applications that were fraudulent or highly suspicious for fraud.
The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act in two actions, one by an accountant who submitted PPP loan applications to Kabbage and other lenders; and the other by a former legal analyst in Kabbage’s collections department. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. The qui tam cases are captioned United States ex rel. Berteletti v. Kabbage, Inc., et al., No. 1:20-cv-12114-GAO (D. Mass.) and United States ex rel. Pietschner v. Kabbage, Inc., et al., No. 4:21-cv-110-SDJ (E.D. Tex.).
Congress created the PPP in March 2020, as part of the Coronavirus Aid, Relief and Economic Security (CARES) Act, to provide federally guaranteed loans to small businesses suffering economic hardship due to the COVID-19 pandemic. The SBA administers the PPP. The CARES Act authorized private lenders to approve PPP loans for eligible borrowers who could later seek forgiveness of the loans, so long as they used loan funds on employee payroll and other eligible expenses. Among other things, the Cares Act/SBA required participating PPP lenders to confirm borrowers’ average monthly payroll costs by reviewing the payroll documentation submitted with the borrower’s application. The Cares Act/SBA also required lenders to follow applicable Bank Secrecy Act/Anti-Money Laundering (BSA/AML) requirements. So long as the lender adhered to PPP requirements, the SBA guaranteed any unforgiven or defaulted PPP loans. The SBA paid a fixed fee calculated as a percentage of the loan to lenders who originated PPP loans.
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.
Tips and complaints from all sources about potential fraud affecting COVID-19 government relief programs can be reported by visiting the webpage of the Civil Division’s Fraud Section, which can be found here. Anyone with information about allegations of attempted fraud involving COVID-19 can also 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.
Acting U.S. Attorney Levy; Principal Deputy AAG Boynton; U.S. Attorney Featherston; GC Meers; Assistant IG Carnegie and FBI SAC Cohen made the announcement today. Valuable assistance was provided by the Federal Reserve Board, Office of Inspector General; the Federal Deposit Insurance Corporation, Office of Inspector General; and SBA’s Office of General Counsel and Office of the Inspector General. This matter was handled by Assistant U.S. Attorney Brian M. LaMacchia, Chief of the Affirmative Civil Enforcement Unit and Assistant U.S. Attorney Diane Seol for the U.S. Attorney’s Office for the District of Massachusetts; Fraud Section Trial Attorney Sarah E. Loucks; and Assistant U.S. Attorney Betty Young for the U.S. Attorney’s Office for the Eastern District of Texas. Corporate/ Financial Litigation Section Trial Attorneys Alastair Gesmundo, Stanton McManus and Shane Huang represented the United States in the bankruptcy proceeding.
Justice Department’s Civil Rights Division in Partnership with the United States Attorney’s Office for the District of Maryland to Monitor Compliance with Federal Voting Rights Laws in MarylandRead the Press Release
The Justice Department announced today that it will monitor elections on May 14 in Prince George’s County, Maryland, to ensure compliance with federal voting rights laws.
The department’s Civil Rights Division and the United States Attorney’s Office for the District of Maryland work in partnership to enforce the federal voting rights laws that protect the rights of all citizens to access the ballot. These Department of Justice components regularly deploy their staff to monitor for compliance with federal civil rights laws in elections in communities all across the country. In addition, the Civil Rights Division also deploys federal observers from the Office of Personnel Management, where authorized by federal court order.
The Civil Rights Division’s Voting Section and the United States Attorney’s Office for the District of Maryland enforces the civil provisions of federal statutes that protect the right to vote, including the Voting Rights Act, National Voter Registration Act, Help America Vote Act, Civil Rights Act and Uniformed and Overseas Citizens Absentee Voting Act.
More information about voting and elections is available on the Justice Department’s website at www.justice.gov/voting. Learn more about the Voting Rights Act and other federal voting laws at www.justice.gov/crt/voting-section. Complaints about possible violations of federal voting rights laws can be submitted through the Civil Rights Division’s website at civilrights.justice.gov or by telephone at 1-800-253-3931.
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Justice Department to Monitor Compliance with Federal Voting Rights Laws in MarylandRead the Press Release
The Justice Department announced today that it will monitor elections on May 14 in Prince George’s County, Maryland, to ensure compliance with federal voting rights laws.
The department’s Civil Rights Division and the U.S. Attorney’s Office for the District of Maryland work in partnership to enforce the federal voting rights laws that protect the rights of all citizens to access the ballot. The department regularly deploys its staff to monitor for compliance with federal civil rights laws in elections in communities all across the country. In addition, the Civil Rights Division also deploys federal observers from the Office of Personnel Management, where authorized by federal court order.
The Civil Rights Division’s Voting Section, working with U.S. Attorneys’ Offices, enforces the civil provisions of federal statutes that protect the right to vote, including the Voting Rights Act, National Voter Registration Act, Help America Vote Act, Civil Rights Act and Uniformed and Overseas Citizens Absentee Voting Act.
More information about voting and elections is available on the Justice Department’s website at www.justice.gov/voting. Learn more about the Voting Rights Act and other federal voting laws at www.justice.gov/crt/voting-section. Complaints about possible violations of federal voting rights laws can be submitted through the Civil Rights Division’s website at civilrights.justice.gov or by telephone at 1-800-253-3931.
Justice Department and City of Albuquerque Seek Partial Termination of Consent Decree for Albuquerque Police Department After Consistent Policing Reform ProgressRead the Press Release
The Justice Department and the City of Albuquerque, New Mexico, filed a joint motion today seeking court approval to terminate certain portions of the consent decree covering the Albuquerque Police Department (APD). The joint motion comes on the heels of the independent monitor’s 19th report, also filed today, which concluded that the city and APD have reached full compliance with 96% of the consent decree’s terms, the highest level of compliance APD has achieved to date.
The joint motion asks the court to terminate 93 provisions of the consent decree with which APD has been in full compliance for at least two years. The provisions cover a range of topics, including use of firearms, crowd control and incident management, use of force reporting and training, behavioral health training, reporting misconduct, on-body recording devices and community and problem-oriented policing.
“Our joint motion to terminate parts of this consent decree demonstrates that the Justice Department’s ultimate goal of ensuring constitutional and effective policing is closer to becoming a reality,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Albuquerque Police Department has shown that real progress is possible through consistent improvements in its policing over the last eight years, while also fulfilling its obligation to protect public safety. The Justice Department will continue working with police and city leaders and the community as they work to achieve full compliance with the remaining provisions of the consent decree. We will continue pushing for fair and constitutional policing in Albuquerque because residents deserve nothing less.”
“Meaningful change is always gradual,” said U.S. Attorney Alexander M.M. Uballez for the District of New Mexico. “Partial termination is the natural next step after years of hard work from the City of Albuquerque and the brave men and women of the Albuquerque Police Department who chose service every single day. The goal of training wheels is to figure out how to ride without them, not how to install them permanently. My congratulations on this milestone; together, we will build the department that we deserve.”
APD has made substantial changes in reaching compliance with provisions of the consent decree the parties seek to terminate, including:
- APD has ensured that all officers are properly trained on using firearms and APD tracks all critical firearm discharges;
- Use of force is properly reported within APD and officers are required to record all use of force incidents;
- APD’s use of force training is based on constitutional principles and officers and supervisors receive necessary training on an annual basis;
- APD provides behavioral health and crisis intervention training to all new officers, as well as behavioral health training to all new telecommunicators, and ensures that existing officers and telecommunicators receive biannual behavioral health-related in-service training;
- APD and the Civilian Police Oversight Agency have ensured that there is an effective and efficient system in place to accept, classify and track civilian complaints of police misconduct;
- All new APD supervisors receive 40 hours of supervisory, management, leadership and command accountability training before assuming supervisory responsibility, followed by a minimum of 24 hours of annual management training;
- APD has fulfilled all requirements regarding on-body recording devices (OBRD), including implementing approved policy and training on OBRD, requiring that officers operate OBRDs according to policy and holding supervisors accountable for ensuring that officers use OBRDs as required by APD policy;
- APD has integrated community and problem-oriented policing principles into its operations, including its staffing allocations and deployment; and
- The city has established Community Policing Councils that facilitate communication and cooperation between APD and local community leaders to enable collaboration on addressing crime and safety issues.
The U.S. District Court for the District of New Mexico entered the consent decree in June 2015. The decree, as well as information about the Civil Rights Division, are available on the Special Litigation Section Cases and Matters website. Additional information about the implementation of the consent decree is also available on the U.S. Attorney’s Office for the District of New Mexico’s website. If you believe your civil rights have been violated, please submit a complaint through our online portal.
Justice Department Moves to Intervene as Plaintiff-Intervenor in Muscogee (Creek) Nation’s Lawsuit Against Tulsa Alleging the City Has Unlawfully Asserted Criminal Jurisdiction Against Tribal MembersRead the Press Release
The Justice Department, on behalf of the Department of the Interior, filed a motion to intervene today in the Muscogee (Creek) Nation’s lawsuit against the City of Tulsa, Oklahoma, and its mayor, chief of police and city attorney in the U.S. District Court for the Northern District of Oklahoma. The Justice Department also filed a proposed complaint against Tulsa, alleging that it has unlawfully asserted criminal jurisdiction against tribal members within the Muscogee (Creek) Reservation.
The Muscogee (Creek) Nation filed its complaint against Tulsa on Nov. 11, 2023, after Tulsa continued to prosecute tribal members within the reservation for alleged violations of Tulsa’s traffic ordinances. The city has used those court prosecutions to argue it has criminal jurisdiction over Indians in Indian country.
The Justice Department’s motion to intervene and proposed complaint argue that Tulsa’s assertion of jurisdiction violates fundamental principles of federal Indian law that are rooted in the Constitution and were reaffirmed in the U.S. Supreme Court’s 2020 decision in McGirt v. Oklahoma. The filings say that these principles bar states and their political subdivisions from exercising criminal jurisdiction over Indians in Indian country unless Congress expressly authorizes it, which it has not done in this instance, leaving the United States and the Muscogee (Creek) Nation with exclusive criminal jurisdiction over Indians in Indian country.
The motion to intervene and proposed complaint outline the United States’ governmental interest, in this and similar cases, in supporting the inherent sovereign power of all federally recognized tribes to exercise criminal jurisdiction over Indians for conduct occurring on their reservations, and in defending Congress’ plenary and exclusive authority over Indian affairs. The filings also cite the 1832 Treaty with the Creeks that no “State or Territory [shall] ever have a right to pass laws for the government of such Indians, but they shall be allowed to govern themselves.”
Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division made the announcement.
The Environment and Natural Resources Division’s Indian Resources Section is handling the case.
Jamestown man pleads guilty for his role in narcotics conspiracyRead the Press Release
BUFFALO, N.Y.-U.S. Attorney Trini E. Ross announced today that Jacob Snow, 37, of Jamestown, NY, pleaded guilty before U.S. Magistrate Judge Michael J. Roemer to narcotics conspiracy, which carries a mandatory minimum penalty of five years in prison, a maximum of 40 years, and a $5,000,000 fine.
Assistant U.S. Attorney Joshua A. Violanti, who is handling the case, stated that between January and May 24, 2021, Snow conspired with Alisha A. Klinger and others to sell heroin, fentanyl, and methamphetamine in the Jamestown area. Snow sold drugs and collected payments on behalf of Klinger. On May 24, 2021, an individual was kidnapped at gunpoint and driven to a wooded area, where the individual was then hit multiple times, including by Snow. This incident involved approximately $10,000 worth of heroin/fentanyl and methamphetamine that the individual had taken from Snow a day prior. Asked if the individual should be killed, Snow responded, “no, I think we should give her the opportunity to pay that back.”
Charges remain pending against Klinger.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The plea is the result of an investigation by the Jamestown Police Department, under the direction of Chief Timothy Jackson, the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Frank A. Tarentino III, New York Field Division, and the Chautauqua County Sheriff’s Office, under the direction of Sheriff James Quattrone.
Sentencing will be scheduled at a later date.
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Hayward Company to Pay $250,000 to Settle False Claims Act Allegations That It Provided Unapproved Network Communications Equipment for BART Rail ProjectRead the Press Release
SAN FRANCISCO – HSQ Technology, A Corporation, a Hayward-based subsidiary of RailWorks Corporation, has agreed to pay $250,000 in penalties to resolve allegations that it knowingly violated the False Claims Act by submitting false claims for payment for network communications equipment it provided for the Santa Clara Valley Transportation Authority’s (VTA) Silicon Valley Berryessa Extension Project (Project) for the Bay Area Rapid Transit rail system, announced United States Attorney Ismail J. Ramsey and U.S. Department of Transportation Office of the Inspector General (DOT OIG) Western Region Special Agent in Charge Cory LeGars. The Project was partially funded by a federal grant provided by the Federal Transit Administration, an operating administration of the U.S. Department of Transportation.
As part of the settlement, HSQ acknowledged and accepted responsibility for the following facts:
• In August 2012, HSQ entered into a subcontract to deliver a communications system for the Project. In carrying out its work on the Project, HSQ purchased and installed network communications equipment.
• The subcontract required HSQ to procure network communications equipment from authorized distributors except when specifically approved by VTA to do otherwise. Yet, HSQ purchased some of the network communications equipment through internet sites from unauthorized distributors and without approval by VTA to do so.
• Between July 2015 and August 2016, HSQ submitted eight claims for payment for purchases of network communications equipment for which HSQ lacked documentation confirming that the equipment came from an authorized distributor.
• Each of these claims for payment sought the payment of money funded in part by a DOT grant.
“Contractors or subcontractors that receive federal funds must be truthful about the goods they are supplying and whether they meet contract requirements,” said U.S. Attorney Ramsey. “This Office will continue using the False Claims Act to address fraudulent conduct by government contractors, subcontractors, and suppliers.”
“Government contractors are expected to adhere to the contractual obligations to which they agreed and for which they have been paid,” said Special Agent-in-Charge LeGars. “The settlement announced today demonstrates our commitment to working with our prosecutorial colleagues to protect the integrity of Federal-aid programs.”
Assistant U.S. Attorney Emmet P. Ong handled this matter for the government, with assistance from Jacqueline Hollar and Garland He. The investigation and settlement resulted from a coordinated effort by the U.S. Attorney’s Office for the Northern District of California and DOT OIG.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
The investigation and resolution of this matter illustrate the government’s emphasis on combating fraud in federal grants. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to DOT OIG at https://www.oig.dot.gov/report-fraud-hotline.
Hartford Man Sentenced to Federal Prison for Trafficking FentanylRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that EFRAIN CHEVEREZ, 42, of Hartford, was sentenced today by U.S. District Judge Sarala V. Nagala in Hartford to 28 months of imprisonment, followed by two years of supervised release, for trafficking fentanyl.
According to court documents and statements made in court, an investigation revealed that Issachamil Torres, also known as “Chamil,” was trafficking fentanyl from his residence on Crown Street in Hartford, and that he was using an apartment on Nutmeg Lane in East Hartford to store, process and package narcotics for street sale. On January 25, 2023, investigators conducted a court-authorized search of the East Hartford apartment and seized approximately 5,400 dose bags of fentanyl, approximately one kilogram of unpackaged fentanyl, and items used to process and package narcotics. Torres, Cheverez, and Enrique Rodriguez Rivera, who were present in the apartment, were arrested at that time. That same day, a search of Torres’s Hartford residence revealed distribution quantities of fentanyl and crack cocaine, and approximately $30,000 in cash.
On July 18, 2023, Cheverez pleaded guilty to conspiracy to distribute, and to possess with intent to distribute, fentanyl.
Cheverez, who is released on a $50,000 bond, is required to report to prison on July 1.
Torres and Rodriguez pleaded guilty to related charges. On December 19, 2023, Rodriguez was sentenced to 12 months and one day of imprisonment. Torres awaits sentencing.
This investigation was conducted by the DEA’s Hartford Task Force, which includes personnel from the DEA Hartford Resident Office, the Connecticut State Police, and the Bristol, Hartford, East Hartford, Enfield, Manchester, New Britain, Rocky Hill, Wethersfield, and Windsor Locks Police Departments.
This case is being prosecuted by Assistant U.S. Attorney Geoffrey M. Stone through the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. OCDETF identifies, disrupts, and dismantles drug traffickers, money launderers, gangs and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state, and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Georgia man pleads guilty to calling in threats days after Walmart shootingRead the Press Release
NORFOLK, Va. – An Atlanta man pleaded guilty today to making interstate threats just three days after a gunman shot and killed six people at a Walmart in Chesapeake, Virginia.
According to court documents, on Nov. 25, 2022, DeAndre Tamir Murphy, aka DeAdre Murphy, 30, called two Walmart stores in Virginia Beach and threatened that he had gunmen in place prepared to enter the stores. That date was the day following Thanksgiving, known as “Black Friday,” when stores were full for the busiest shopping day of the year. Identifying himself as “Mohammed,” Murphy demanded $20,000 or, he threatened, his gunmen would enter the stores and “start shooting people.”
Investigators - who recorded the second call - traced the call back to Murphy in Atlanta.
Murphy is scheduled to be sentenced on Sept. 27. He faces a statutory maximum of 20 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after U.S. Magistrate Judge Robert J. Krask accepted the plea.
Assistant U.S. Attorney Joseph L. Kosky is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:24-cr-9.
Correction: This release has been revised to reflect that six people, not eight, were killed in the shooting in Chesapeake on Nov. 22, 2022.
Georgia Inmate, Leader of Methamphetamine Conspiracy, Pleads GuiltyRead the Press Release
ABINGDON, Va. – The leader of a wide-ranging methamphetamine conspiracy, who was incarcerated in Georgia at the time, pled guilty last week in U.S. District Court to federal drug charges.
Christopher David Johnson, 46, pled guilty last week to one count of conspiring to possess with the intent to distribute and to distributing 500 grams or more of methamphetamine. At sentencing, Johnson faces a mandatory minimum sentence of 15 years in prison and a statutory maximum of life.
According to court documents, Johnson conspired with numerous individuals, including Michael Paul Brown, who was sentenced last week to 180 months of imprisonment for his role in the conspiracy, to traffic and distribute multiple kilograms of methamphetamine from Georgia into Southwest Virginia. At the time, Johnson was incarcerated in Georgia and used multiple cell phones to direct the methamphetamine distribution operation from prison.
Johnson regularly communicated with his co-conspirators using both Facebook and text messaging to coordinate methamphetamine pricing, quantities, recruitment, sales, and deliveries.
United States Attorney Christopher R. Kavanaugh and Jared Forget, Special Agent in Charge of Drug Enforcement Administration’s Washington Division made the announcement.
The Drug Enforcement Administration and multiple law enforcement agencies in Georgia, Tennessee, and Virginia investigated the case, including the Bristol (Tennessee) Police Department, the Bristol (Virginia) Police Department, the Sullivan County Sheriff’s Office, the 2nd Judicial Drug Task Force, and the Georgia State Patrol.
Assistant U.S. Attorneys Corey Hall and Whit Pierce are prosecuting the case.
Fresno Man Sentenced to over 10 Years for Dealing FentanylRead the Press Release
FRESNO, Calif. — Alden Nunez-Rosales, 27, of Fresno, was sentenced today to 121 months in prison for possessing with intent to distribute over 400 grams of fentanyl, United States Attorney Phillip A. Talbert announced.
According to court documents, on April 26, 2023, Nunez-Rosales delivered 5,000 fentanyl pills to a person that he believed was a customer but was actually a government informant. Law enforcement officers then followed Nunez-Rosales back to his residence, where Nunez-Rosales obtained 45,000 more fentanyl pills that he intended to distribute. Minutes later, police officers attempted to conduct a traffic stop on Nunez-Rosales’s car, but he sped off, eventually crashed his car into a tree, and then fled on foot. Officers apprehended him and then searched his residence under a warrant. In total, officers seized over 12 kilograms of fentanyl pills as well as a firearm, ammunition, a scale, and over $3,500 in cash. Nunez-Rosales was charged and pled guilty to the offense in February 2024.
This case was the product of an investigation by Homeland Security Investigations and the Fresno Police Department. Assistant United States Attorney Justin J. Gilio prosecuted the case.
This case is part of Operation Synthetic Opioid Surge (S.O.S.) a program designed to reduce the supply of deadly synthetic opioids in high impact areas as well as identifying wholesale distribution networks and international and domestic suppliers. In July 2018, the Justice Department announced the creation of S.O.S., which is being implemented in the Eastern District of California and nine other federal districts.
Four Individuals Indicted for Smuggling Tropical Bird Species from the United States to the Dominican RepublicRead the Press Release
SAN JUAN, Puerto Rico – On Thursday, May 9, 2024, a federal grand jury in the District of Puerto Rico returned an indictment charging four Dominican nationals with smuggling wildlife from the United States and Lacey Act trafficking, announced W. Stephen Muldrow, United States Attorney for the District of Puerto Rico.
According to court documents, on or about May 3, 2024, defendants Frankluis Carela De Jesús, Waner Balbuena, Juan Graviel Ramírez Cedano, and Domingo Heureau Altagracia traveled together in a flagless vessel departing from San Juan, Puerto Rico to the Dominican Republic. The purpose of the travel was to smuggle various species of tropical birds to the Dominican Republic for financial gain. When the vessel was approximately 30 nautical miles north of Puerto Rico the United States Coast Guard (USCG) approached the vessel, witnessed the crew throwing objects overboard, stopped the vessel, and boarded the vessel. A number of the objects thrown overboard were successfully recovered by the USCG from the ocean waters and were identified as wood cages containing tropical birds.
Crates where birds were transported.
A total of approximately one hundred thirteen (113) deceased birds, depicted in the indictment, were recovered from the ocean inside the wood cages jettisoned by the defendants. The defendants lacked any license to export the wildlife and failed to declare the tropical birds as required by federal regulations governing the exportation of wildlife.
Deceased birds recovered from the ocean.
“The defendants violated laws protecting tropical birds and regulating the international sale and exportation of wildlife. When confronted by law enforcement, the defendants tried to cover up those crimes by killing the protected birds by throwing them into the sea while still in their wooden crates,” said U.S. Attorney Muldrow. “I commend the excellent collaboration of the prosecutors and our law enforcement partners who remain steadfast in their commitment to protecting our wildlife.”
“This successful apprehension of four smugglers highlights the unwavering resolve of Coast Guard Sector San Juan, we work daily to interdict a wide range of illicit activities in Puerto Rico and the U.S. Virgin Islands,” said Captain José Díaz, Commander of U.S. Coast Guard Sector San Juan. “Unfortunately, the cruelty displayed by the smugglers in this case resulted in the loss of over 100 exotic birds. We will not stop in our commitment to control illicit trafficking in our region.”
“The U.S. Fish and Wildlife Service will work tirelessly to investigate brazen attempts to smuggle exotic birds from Puerto Rico,” said Edward Grace, Assistant Director for the U.S. Fish and Wildlife Service, Office of Law Enforcement. “Thanks to the quick actions of the U.S. Coast Guard and the U.S. Customs and Border Protection, the four smugglers were caught before successfully concealing their crimes and evading capture. Their decision to recklessly jettison smuggled birds and other evidence from their vessel resulted in the death of numerous exotic birds. This case underscores the cruel reality of the illegal wildlife trade and our commitment to vigorously pursue those engaged in wildlife trafficking. We will continue working towards fully prosecuting these criminals to the fullest extent of the law.”
“As part of our ongoing efforts to safeguard our borders and protect our communities, U.S. Customs and Border Protection (CBP) remains steadfast in our commitment to deterring smuggling activities of all kinds, including the reprehensible trade in wildlife,” indicated Christopher Hunter, Director of CBP Air and Marine Operations in the Caribbean. “AMO is dedicated to working collaboratively with our domestic and international partners to combat wildlife smuggling and uphold the rule of law.”
The defendants had their arraignment and detention hearings today before U.S. Magistrate Judge Marcos E. López of the U.S. District Court for the District of Puerto Rico and three were ordered detained pending trial. Domingo Heureau-Altagracia was placed on home confinement. If convicted, they face a total maximum of fifteen years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The U.S. Fish and Wildlife Service, the United States Coast Guard, and Customs and Border Protection are investigating the case.
Assistant U.S. Attorney Seth A. Erbe, Environmental Litigation Coordinator is prosecuting the case with the assistance of Trial Counsel Patrick Duggan of the U.S. Department of Justice Environmental Crimes Section.
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 West Virginia Official Sentenced for Making False StatementRead the Press Release
CHARLESTON, W.Va. – Timothy Priddy, 49, of Buffalo, West Virginia, was sentenced today to one year of federal probation for making a false statement. Priddy admitted that he lied to federal investigators about the verification of invoices for COVID-19 testing that he certified for payment while an official with the West Virginia Department of Health and Human Resources (WVDHHR).
According to court documents and statements made in court, in the summer of 2021, a federal investigation was initiated to determine whether the State of West Virginia had been defrauded of federal funds allocated for COVID-19 testing and mitigation services. Investigators focused on one vendor that had submitted invoices approved by Priddy for payments exceeding $34,000,000. Priddy approved the invoices while deputy director of WVDHHR’s Center for Threat Preparedness. The vendor submitted the invoices under WVDHHR programs for providing COVID-19 testing services to West Virginia schools and Emergency Medical Services providers.
On August 2, 2022, federal agents interviewed Priddy, who by then was director of the Center for Threat Preparedness, at his WVDHHR office. Priddy explained in detail how he and WVDHHR staff would verify the invoices before approving them. Priddy’s explanation was false. Neither Priddy nor other WVDHHR staff ever verified the invoices before Priddy approved payment.
On September 8, 2022, Priddy testified before a federal grand jury and repeated his false claim of having personally verified or directing WVDHHR staff to verify the invoices prior to approving payment.
Priddy’s false statements made it difficult, if not impossible, for investigators to ascertain whether the vendor had provided the services for which it had been paid. The investigation continued for over two years, requiring the expenditure of tremendous manpower and other resources. Investigators found no evidence that Priddy colluded with the vendor or received financial or other personal benefits in exchange for approving the vendor’s invoices.
“The investigation revealed Mr. Priddy’s appalling failure to make any effort to assure that public funds were properly expended,” said United States Attorney Will Thompson. “Significant questions remain regarding the legitimacy of the vendor’s invoices, but there is no evidence that Mr. Priddy lied to protect the vendor or further its business. Instead, it appears that Mr. Priddy lied to hide his own dereliction of duty.”
Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI), the U.S. Postal Inspection Service, the Internal Revenue Service-Criminal Investigation (IRS-CI), and the West Virginia Legislature’s Commission on Special Investigations.
“Shamelessly manipulating financial relief systems for personal gain, lying about it despite being given ample opportunity to tell the truth, and doing so while being in a position that is supposed to serve the best interests of the public is something the FBI will not stand for,” said FBI Pittsburgh Special Agent in Charge Kevin Rojek. “The FBI and our partners stand firm in our resolve to root out financial fraud and abuse, no matter who the individual is or what position they may hold.”
Chief United States District Judge Thomas E. Johnston imposed the sentence. Assistant United States Attorneys Joshua Hanks, Holly Wilson and Kathleen Robeson and former Assistant United States Attorney Philip Wright prosecuted 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. 2:23-cr-162.
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Former Gibson County Resident Indicted on Federal Child Exploitation OffensesRead the Press Release
Jackson, TN – A federal grand jury in Jackson, Tennessee recently returned an indictment charging Philip Stephen Plyler, 41, of Fairmont, West Virginia with federal child exploitation offenses. United States Attorney Kevin G. Ritz announced the return of the indictment today.
Plyler is charged in a two-count indictment with transporting a minor in interstate commerce with intent that the minor engage in illegal sexual activity and with traveling in interstate commerce with the motivating purpose of engaging in illicit sexual conduct with the minor.
If convicted of both charges, Plyler is facing a sentence of up to life in prison. This case is pending before United States District Court Judge S. Thomas Anderson in Jackson, Tennessee. If Plyler is convicted of the charged offenses, Judge Anderson will determine the sentence to impose on the defendant after considering the U.S. Sentencing Guidelines and other statutory factors. There is no parole in the federal system.
This case is being investigated by the FBI Memphis Child Exploitation Task Force and the Milan, Tennessee Police Department. Anyone with additional information on this case is asked to contact FBI Task Force Officer Dennis Mitchell.
The charges and allegations contained in the indictment are merely accusations of criminal conduct, not evidence. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt and convicted through due process of law.
Assistant United States Attorneys Josh Morrow and Christie Hopper are prosecuting this case on behalf of the government.
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For more information, please contact the media relations team at [email protected]. Follow the U.S. Attorney’s Office on Facebook or on X at @WDTNNews for office news and updates.
Former Diversity Program Manager at Facebook and Nike Sentenced to Federal Prison for $5 Million FraudRead the Press Release
ATLANTA - Barbara Furlow-Smiles, a former diversity program manager at Facebook and Nike, has been sentenced for stealing more than $5 million based on an elaborate scheme involving fraudulent vendors, fictitious paperwork, and cash kickbacks.
“Furlow-Smiles shamelessly violated her position of trust as a DEI executive at Facebook to steal millions from the company utilizing a scheme involving fraudulent vendors, fake invoices, and cash kickbacks,” said U.S. Attorney Ryan K. Buchanan. “After being terminated from Facebook, she brazenly continued the fraud as a DEI leader at Nike, where she stole another six-figure sum from their diversity program. Her prison sentence reflects the consequences of her decision to orchestrate an intricate scheme to defraud two of her employers for personal profit.”
“As Lead Strategist at Facebook, Furlow-Smiles’ employer put an extreme amount of trust in her, only to have that trust completely violated,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “After she was fired, she carelessly continued her fraudulent schemes at Nike, thinking she was untouchable. As a result, she not only threw away a lucrative career, but will serve time behind bars for her excessive greed.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: Barbara Furlow-Smiles served as Lead Strategist, Global Head of Employee Resource Groups and Diversity Engagement at Facebook, Inc., now known as Meta Platforms, Inc., doing business as Meta. From January 2017 to September 2021, she led Diversity, Equity, and Inclusion (DEI) programs at Facebook and was responsible for developing and executing DEI initiatives, operations, and engagement programs. In her position, Furlow-Smiles had access to company credit cards. She also had the authority to submit purchase requisitions and approve invoices for authorized vendors of Facebook.
Furlow-Smiles used her position at Facebook to cheat and defraud the company. She caused Facebook to pay numerous individuals for goods and services that were never provided and then directed those individuals to kick back the fraudulent proceeds to her, often in cash. Her scheme operated in two ways.
First, Furlow-Smiles linked PayPal, Venmo, and Cash App accounts to her Facebook credit cards and used those accounts to pay friends, relatives, and other associates for goods and services that in truth were never provided to Facebook. To conceal the bogus charges, Furlow-Smiles submitted fraudulent expense reports, falsely claiming that her associates or their businesses had performed work on programs and events for Facebook, such as providing swag or marketing services, when in fact they had not done so.
After these individuals received the payments from Facebook, they returned the vast majority of the money to Furlow-Smiles. They paid these kickbacks in cash and through account transfers to others, including her husband. They paid the cash kickbacks in person and by Federal Express or mail, sometimes wrapping the cash in other items, such as T-shirts. Furlow-Smiles also directed associates to pay one another, or others to whom she owed money, to conceal her involvement in the scheme.
Second, Furlow-Smiles caused Facebook to onboard several vendors that were owned and operated by friends and associates who paid her kickbacks. Furlow-Smiles approved fraudulent invoices for these vendors. After Facebook paid the invoices, Furlow-Smiles directed the vendors to return a portion of the money they received to her.
Furlow-Smiles recruited numerous individuals to participate in the scheme. These individuals included friends, relatives, former interns from a prior job, nannies and babysitters, a hair stylist, and her university tutor. She also caused Facebook to make payments for her benefit to others who did not pay kickbacks. For example, Furlow-Smiles caused Facebook to pay nearly $10,000 to an artist for specialty portraits and more than $18,000 to a preschool for tuition.
After Furlow-Smiles was terminated from Facebook, she worked for Nike from November 2021 to February 2023, serving as Senior Director of Diversity, Equity & Inclusion. In that position, she was responsible for supporting DEI initiatives, developing strategies, and hosting DEI events. She was primarily responsible for a Juneteenth event in New York during her time at Nike.
As she had done at Facebook, Furlow-Smiles circumvented the vendor process at Nike to commit fraud. She linked her Nike corporate card to her PayPal and Venmo accounts. She then paid her associates with PayPal and Venmo, causing fraudulent charges to her Nike card. The associates kicked back portions of the payments to Furlow-Smiles, who submitted fraudulent expense reports to Nike to cover her tracks. The expense reports falsely claimed that the payments were related to the Juneteenth event.
In total, Furlow-Smiles stole more than $4.9 million from Facebook and over $120,000 from Nike based on fictitious charges and fraudulent invoices. She used the money to fund a luxury lifestyle in California, Georgia, and Oregon.
Barbara Furlow-Smiles, 38, of Marietta, Georgia, was sentenced by U.S. District Judge Steven D. Grimberg to five years, three months in prison to be followed by three years of supervised release. She was also ordered to pay restitution in the amount of $4,981,783.58 to Facebook and $121,054.50 to Nike, for a total of $5,102,838.08. Furlow-Smiles was convicted of wire fraud on December 11, 2023, after she pleaded guilty.
This case was investigated by the Federal Bureau of Investigation.
Assistant U.S. Attorneys Stephen H. McClain and Bernita B. Malloy 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.
Florida Man Sentenced to 3½ Years in Federal Prison for Helping Two Orange County Men Firebomb Planned Parenthood ClinicRead the Press Release
SANTA ANA, California – A Florida man was sentenced today to 42 months in federal prison for helping the perpetrators of the March 2022 firebombing of a Planned Parenthood clinic in Orange County construct a Molotov cocktail.
Xavier Batten, 21, of Brooksville, Florida, was sentenced by United States District Judge Cormac J. Carney, who also ordered him to pay $1,000 in restitution and imposed a three-year term of supervised release – to follow after Batten finishes serving his prison sentence – permitting suspicion-less searches of Batten by law enforcement.
At today’s hearing, Judge Carney said Batten had committed a “cowardly crime” that showed “no empathy for women and their rights.”
Batten pleaded guilty on January 19 to one felony count of possessing an unregistered destructive device and one misdemeanor count of intentionally damaging a reproductive health services facility, in violation of the Freedom of Access to Clinic Entrances Act. He has been in federal custody since July 2023.
In February and March of 2022, Batten conspired with Chance Brannon, 24, of San Juan Capistrano, who at the time was an active-duty member of the United States Marine Corps stationed at Camp Pendleton, to damage a reproductive health clinic that was open to the public.
On March 12, 2022, Brannon and Tibet Ergul, 22, of Irvine, met in Ergul’s garage and constructed a Molotov cocktail, an incendiary and destructive device which they did not register with the National Firearm Registration and Transfer Record. Batten, who was in Florida at the time, helped Brannon by advising him on how to build the Molotov cocktail, knowing Brannon intended to use the device to firebomb a reproductive health clinic.
During the early morning of March 13, 2022, Brannon and Ergul drove to a Planned Parenthood clinic in Costa Mesa, ignited the Molotov cocktail, and threw it at the clinic entrance, intentionally starting a fire, before fleeing. The damage to the clinic forced it to temporarily close and to reschedule approximately 30 patients’ appointments. Within minutes of firebombing the clinic, Brannon texted Batten to inform him that their plan had been successful and Batten congratulated Brannon on his success.
Prosecutors argued in a sentencing memorandum that Batten has a history of threatening to commit mass shootings and his communications and internet searches reflect a violent and racially motivated ideology. In May 2022, two months after Batten helped orchestrate Brannon’s Planned Parenthood attack, Batten messaged Brannon for advice on how to “get away with” committing a similar attack against another fertility clinic, according to the prosecution’s sentencing memorandum.
“[Batten’s] willingness to help his codefendants firebomb a healthcare clinic from afar, without being present to check for people or control the circumstances, reflects a seeming apathy to whether anyone would be hurt or killed as a result of his tutelage,” prosecutors argued in the sentencing memorandum.
On April 15, Judge Carney sentenced Brannon to nine years in federal prison for his role in the attack and for plotting other attacks – including an attack on the Orange County power grid in furtherance of a race war, an attack at Dodger Stadium during an LGBTQ+ pride night celebration, and the home invasions of Jewish residences in Los Angeles.
Brannon pleaded guilty in November 2023 to one count of conspiracy, one count of malicious destruction of property by fire and explosives, one count of possession of an unregistered destructive device, and one count of intentionally damaging a reproductive health services facility in violation of the Freedom of Access to Clinic Entrances Act.
Ergul pleaded guilty on February 29 to one felony count of conspiracy to damage an energy facility and one misdemeanor count of intentional damage to a reproductive health services facility. His sentencing hearing is scheduled for May 30.
The FBI’s Joint Terrorism Task Force and the Naval Criminal Investigative Service investigated this matter. The Costa Mesa Police Department and the Costa Mesa Fire Department provided substantial assistance.
Assistant United States Attorney Kathrynne N. Seiden of the Terrorism and Export Crimes Section is prosecuting this case with substantial assistance from Trial Attorney Jacob Warren from the Justice Department’s National Security Division’s Counterterrorism Section.
Final Member of Drug Trafficking Conspiracy Sentenced for Fentanyl and Methamphetamine TraffickingRead the Press Release
PHOENIX, Ariz. – Keivin Crosswell-Cervantes, 27, of Mexico, was sentenced on April 29, 2024, by United States District Judge Steven P. Logan to 17 years in prison for Conspiracy to Distribute Fentanyl and Methamphetamine. Crosswell-Cervantes pleaded guilty to the charge on May 2, 2023.
Crosswell-Cervantes’ two co-conspirators both also pleaded guilty to Conspiracy to Distribute Fentanyl and Methamphetamine and were sentenced by Judge Logan. On September 20, 2023, Carlos Alberto Castro-Ruiz, 26, of Phoenix, was sentenced to 11 years and three months in prison. On November 13, 2023, Alexander Ortega-Islas, 22, of Phoenix, was sentenced to 12 years in prison.
The three co-conspirators all admitted that they delivered approximately 400,000 blue fentanyl pills, approximately 20,000 multi-colored fentanyl pills (“skittles”), and approximately 25 pounds of methamphetamine to undercover officers on September 22, 2022. Law enforcement officers also seized an AK-47-style pistol, a .45 caliber Kimber 1911 semi-automatic pistol with two magazines, and a .45 caliber FN semi-automatic pistol.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Homeland Security Investigations, Nogales, and the Drug Enforcement Administration, Nogales, conducted the investigation in this case. Assistant United States Attorney Matthew G. Eltringham, District of Arizona, Tucson, handled the prosecution.
CASE NUMBER: CR-22-01295-PHX-SPL
RELEASE NUMBER: 2024-062_Crosswell-Cervantes# # #
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.Federal Prisoner Sentenced for Mailing Threats to Government OfficialsRead the Press Release
CLARKSBURG, WEST VIRGINIA – Stephen Elbert Boykin, age 52, a federal prisoner at Federal Correctional Institution Gilmer, was sentenced today to an additional 51 months in federal prison for mailing threats directed at government officials and family members.
According to court documents and statements made in court, prison staff intercepted several threatening letters Boykin attempted to mail while incarcerated. In a few of the letters, the threats were directed at President Barrack Obama and Michelle Obama, Florida Governor Ron DeSantis, and Vice President Kamala Harris. Other letters threatened an Assistant U.S. Attorney in South Carolina, where Boykin was last prosecuted.
At the time of the crime, Boykin was serving a 125-month sentence for mailing threatening communications to federal officials.
Assistant U.S. Attorney Andrew Cogar prosecuted the case on behalf of the government.
The Federal Bureau of Prisons investigated.
Chief U.S. District Judge Thomas S. Kleeh presided.
Estado de Rhode Island Considerado en Violación de las Leyes Federales de Discapacidad por Hospitalización Excesiva de Niños con Discapacidades Conductuales Bajo Cuidado EstatalRead the Press Release
PROVIDENCE, RI - Una investigación realizada por la Oficina del Fiscal de los Estados Unidos para el Distrito de Rhode Island y la Oficina de Derechos Civiles del Departamento de Salud y Servicios Humanos de los Estados Unidos (HHS OCR) ha descubierto que el Estado de Rhode Island ha violado las leyes federales de derechos civiles al rutinariamente e innecesariamente segregar a niños con discapacidades de salud mental y/o del desarrollo en el Hospital Bradley, un hospital psiquiátrico de cuidados intensivos, anunciaron el fiscal de los Estados Unidos Zachary A. Cunha y la directora de la Oficina de Derechos Civiles del Departamento de Salud y Servicios Humanos de los Estados Unidos (HHS OCR), Melanie Fontes Rainer.
Como se detalla en una Carta de Conclusiones transmitida al Gobernador de Rhode Island y al Director del Departamento de Niños, Jóvenes y Familias de Rhode Island (DCYF), la investigación integral de varios años del gobierno federal encontró que, en lugar de cumplir con su obligación legal de proporcionar servicios en el entorno más integrado y apropiado a las necesidades de estos niños, el estado los ha dejado hospitalizados en Bradley durante mucho más tiempo del necesario.
Mientras que las admisiones de pacientes hospitalizados en el Hospital Bradley están diseñadas para durar sólo una o dos semanas, la investigación federal concluyó que los niños con discapacidades de salud conductual bajo el cuidado del DCYF a menudo fueron obligados a languidecer en el hospital durante semanas, meses y, en algunos casos, durante más de un año, a pesar de estar listos para ser dados de alta del hospital y a pesar de que estos niños estarían mejor atendidos en un hogar familiar.
La investigación encontró que el DCYF no garantizó que los niños con discapacidades pudieran acceder a los servicios intensivos basados en el hogar y en la comunidad que necesitaban, y fallaron en facilitar las altas inmediatas del Hospital Bradley a hogares familiares, lo cual resultó en hospitalizaciones prolongadas e innecesarias, o riesgo de hospitalización en el futuro, todo lo cual que esta en violación de la ley federal, específicamente el Título II de la Ley de Estadounidenses con Discapacidades y la Sección 504 de la Ley de Rehabilitación de 1973.
"Es nada menos que espantoso que el estado haya optado por internar a los niños en una institución psiquiátrica, en lugar de dar un paso adelante para brindarles la atención, el apoyo y los servicios comunitarios que estos niños necesitan y que exige la ley", comentó el fiscal federal Zachary. A. Cunha. "Tengo la esperanza de que los hallazgos que anunciamos hoy impulsen una acción rápida
por parte del estado para cumplir con sus obligaciones bajo la ley federal y, mucho más importante, para garantizar que se respeten los derechos civiles de estos niños".
"Los niños con discapacidades deberían poder regresar a casa con el amor y el apoyo de sus familias y no ser confinados en una institución durante meses", dijo la Fiscal General Adjunta Kristen Clarke de la División de Derechos Civiles del Departamento de Justicia. "Continuaremos nuestra aplicación vigorosa de la ADA para garantizar que los niños con discapacidades puedan recibir los servicios comunitarios que necesitan para vivir con sus familias y participar en sus comunidades".
"El hallazgo de hoy sigue los pasos de los esfuerzos de la Oficina de Derechos Civiles para fortalecer el acceso al cuidado para personas con discapacidades como estos niños", dijo la directora de la OCR del HHS, Melanie Fontes Rainer. “Debemos hacerlo mejor para nuestros niños y las comunidades a las que servimos, y los estados y los demás deben seguir las leyes federales de derechos civiles para garantizar que todos los niños puedan acceder cuidado sin discriminación. A medida que nos acercamos al vigésimo quinto aniversario de la decisión de Olmstead, la acción de hoy también enfatiza nuestro compromiso de continuar protegiendo el derecho fundamental de las personas a vivir en sus propios hogares y comunidades”.
Como se detalla en la Carta de Conclusiones del gobierno, desde el 1 de enero del 2017 hasta el 30 de septiembre del 2022, la asombrosa cifra de 527 niños, ya sea bajo el cuidado y custodia del DCYF o que recibieron servicios voluntariamente a través del DCYF, fueron admitidos en el Hospital Bradley. De estos 527 niños, 116 fueron hospitalizados en una sola admisión durante más de 100 días consecutivos; 42 estuvieron hospitalizados por más de 180 días; y siete niños estuvieron hospitalizados durante más de un año. Muchos de estos niños fueron sometidos a hospitalizaciones evitables e innecesariamente largas en Bradley porque el DCYF no les proporcionó los servicios comunitarios que necesitaban. Mantener a un niño hospitalizado durante un período prolongado cuando sus necesidades podrían satisfacerse en un entorno menos restrictivo sólo sirve para exacerbar las necesidades agudas del niño. De hecho, la investigación encontró que la hospitalización prolongada a menudo traumatiza tanto a los niños como a sus familias.
Según la Carta de Conclusiones, el DCYF tampoco planifica las altas hospitalarias de una manera que coloque a los niños en el entorno más integrado y apropiado para satisfacer sus necesidades. El hecho de que el DCYF no busque colocaciones en un hogar familiar con servicios provoca retrasos a las altas hospitalarias y a las colocaciones inapropiadas después de que hayan sido dados de alta, lo que, a su vez, a menudo conduce a hospitalizaciones posteriores.
Esta investigación conjunta de la Fiscalía de los Estados Unidos y la OCR del HHS fue realizada por la fiscal federal adjunta Amy R. Romero y la especialista en igualdad de oportunidades Erin Walker del HHS.
La Sección 504 de la ADA y la decisión judicial de la Corte Suprema en Olmstead v. L.C. exigen que los gobiernos estatales y locales pongan servicios a disposición de las personas con discapacidades en el entorno más integrado y adecuado a sus necesidades, independiente de su edad o tipo de discapacidad. La aplicación del Título II de la ADA, Sección 504, y el mandato de integración de la decisión Olmstead, es una prioridad del Departamento de Justicia y del Departamento de Salud y Servicios Humanos.
Puede encontrar información adicional sobre la ADA en la página web www.ada.gov o llamando a la línea gratuita de información sobre la ADA del Departamento de Justicia al 800-514-0301 o al 800-514-0383 (TDD). Para obtener más información sobre la Sección 504 de la Ley de Rehabilitación y cómo protege a las personas con discapacidades, visite la página web: https://www.hhs.gov/civil-rights/for-individuals/disability/index.html. Para más información sobre las actividades Olmstead de la OCR, visite la página web: https://www.hhs.gov/civil-rights/for-individuals/special-topics/community-living-and-olmstead/index.html.
Las personas que crean que sus derechos civiles han sido violados pueden presentar una queja ante la Oficina de Derechos Civiles en la página web: www.hhs.gov/civil-rights/filing-a-complaint/index.html. Cualquier persona en Rhode Island también puede denunciar violaciones de derechos civiles directamente a la Fiscalía Federal para el Distrito de Rhode Island en la página web: https://www.justice.gov/usao-ri/civil-rights-enforcement o llamando a 401-709-5000.
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us_ada_and_section_504_violation_findings_letter_to_rhode_island_5.13.24_508.pdfDefendants in Poland and Florida Indicted for Scheme to Import Used Airbags, Sold as New, into the United StatesRead the Press Release
FRESNO, Calif. — A federal grand jury returned an indictment against Pawel Pankow, 41, of Wolow, Poland, and Magdalena Pankow, 48, of Palm Coast, Florida, charging them with conspiracy to smuggle goods into the United States by means of false statements and to commit wire and mail fraud, as well as four separate counts of mail fraud, U.S. Attorney Phillip A. Talbert announced. Magdalena Pankow was arrested over the weekend in Flagler County, Florida, after the indictment issued last Thursday.
According to court documents, Pawel Pankow began shipping airbags into the United States no later than in 2008 and sold thousands of them through online sales, mostly through eBay. Pankow listed the items as in brand new condition and as genuine original equipment parts even though the items were used, counterfeit, assembled from used components, and/or not authorized for sale in the United States. Pawel Pankow shipped airbags, purchased from sources in Europe and China, to Magdalena Pankow in Florida and often mislabeled the shipments as products other than airbags. Magdalena Pankow then fulfilled orders from locations in Florida by sending them through the United States Postal Service. Federal regulations classify airbags as hazardous material, and they cannot be shipped by air or ground through the United States Postal Service.
This case is the product of an investigation by FBI offices in Fresno, California, and Jacksonville, Florida, with assistance from the Intellectual Property Rights Center in Arlington, Virginia, United States Customs and Border Protection, and Homeland Security Investigations. Assistant U.S. Attorney David Gappa is prosecuting the case.
Magdalena Pankow is scheduled to make her initial appearance before a United States magistrate judge in Jacksonville, Florida. Pawel Pankow has not yet been arrested or appeared in court on the case.
If convicted, the defendants each face a maximum statutory penalty of 20 years in prison on each fraud count and five years in prison on the conspiracy count. Each charge has a maximum potential fine of $250,000 and a three-year term of supervised release. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Covington Man Charged with Production and Possession of Child Sexual Abuse MaterialsRead the Press Release
NEW ORLEANS, LA – U.S. Attorney Duane A. Evans announced today that KEITH THOMAS CHANDLER (“CHANDLER”), age 54, of Covington, Louisiana, was charged in a two-count indictment for Production of Materials Involving the Sexual Exploitation of Minors, in violation of Title 18, United States Code, Sections 2251(a) and (e); and for Possession of Materials Involving the Sexual Exploitation of Minors, in violation of Title 18, United States Code, Sections 2252(a)(4)(B) and (b)(2). If convicted, CHANDLER faces a mandatory minimum sentence of not less than fifteen (15) years and a maximum sentence of thirty (30) years, and/or a fine of $250,000.00, or the greater of twice the gross gain to the defendant or twice the gross loss to any person of the offense under Title 18, United States Code, Section 3571. In addition, CHANDLER faces a term of supervised release of no less than five (5) years and up to life after his release from prison.
According to filed case documents, the case against CHANDLER developed as a result of a complaint to the National Center for Missing and Exploited Children (“NCMEC”). On April 29, 2024, Homeland Security Investigations (“HSI”) special agents, along with the St. Tammany Parish Sheriff’s Office, and the Louisiana Bureau of Investigation, executed a federal search warrant at CHANDLER’s residence in Covington, Louisiana. During the execution of the search warrant, CHANDLER was arrested for production of child pornography and possession of pre-pubescent child pornography. CHANDLER has been in custody since he was arrested on April 29, 2024.
U.S. Attorney Evans reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The U.S. Attorney’s Office would also like to acknowledge the assistance of the U.S. Department of Homeland Security, Homeland Security Investigations, the St Tammany Parish Sheriff’s Office, and the Louisiana Bureau of Investigation with this matter. The prosecution of this case is being handled by Assistant U.S. Attorney Brian M. Klebba, Chief of the Financial Crimes Unit.
Chinese National Accused of Defrauding the ElderlyRead the Press Release
ST. LOUIS – A man from China has been indicted and accused of taking $95,000 from a 79-year-old Missouri woman who was victimized by scammers.
Dongyi Guo, 27, was indicted in U.S. District Court in St. Louis on May 8 with one count of conspiracy to commit wire fraud. He pleaded not guilty Monday.
The indictment says the conspirators contacted elderly victims via telephone calls and electronic messages and tricked them into turning over cash. Couriers such as Guo were paid to pick up the cash from their victims, the indictment says.
Guo was arrested after scammers contacted a 79-year-old woman in Knox County, Missouri, claiming in multiple conversations to be representatives of financial institutions and the Social Security office, the indictment says. They told her that her accounts had been compromised and she needed to pay cash to prevent her money from being stolen, the indictment says.
Guo collected $40,000 from the victim on March 4, another $35,000 the next day and $20,000 on March 6, the indictment says. He was arrested on March 7 trying to take another $15,000, it says.
The conspiracy charge carries a penalty of up to 20 years in prison, a $250,000 fine or both prison and a fine.
Charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
The Knox County Sheriff’s Office and the FBI investigated the case. Assistant U.S. Attorney Derek Wiseman is prosecuting the case.
If you or someone you know is age 60 or older and has experienced financial fraud, contact the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This Justice Department hotline, managed by the Office for Victims of Crime, can identify appropriate reporting agencies, provide information to callers to assist them in reporting and provide resources and referrals. Reporting frauds can increase the likelihood of recovering losses. The hotline is open Monday through Friday from 10:00 a.m. to 6:00 p.m. ET. English, Spanish, and other languages are available. The Federal Trade Commission also provides a hotline at 877-FTC-HELP and a website at www.ftccomplaintassistant.gov to receive consumer complaints.
Charleston Man Sentenced to 20 Years in Prison for Federal Drug CrimeRead the Press Release
CHARLESTON, W.Va. – Che Dushon Lark, 48, of Charleston, was sentenced today to 20 years in prison, to be followed by three years of supervised release, for possession with intent to distribute heroin and methamphetamine.
According to court documents and statements made in court, on March 6, 2020, law enforcement officers responded to reports of a vehicle parked without permission in a private driveway on Charleston’s West Side. Officers encountered Lark slumped over in the vehicle’s driver’s seat, and observed a package on Lark’s lap containing 4.4 grams of methamphetamine and 11.2 grams of a mixture of heroin and methamphetamine.
Officers removed the package from the vehicle. As officers attempted to remove Lark from the vehicle, he drove off and fled at a high rate of speed through narrow streets. Lark struck and fatally injured Heather Ross of Charleston with his vehicle as she was escorting her four children to their bus stop for school. Lark abandoned his vehicle following the hit-and-run and fled on foot.
On June 11, 2020, law enforcement officers captured Lark in a residence in Chillicothe, Ohio, where he was found hiding in the attic under insulation. Lark possessed a fake Michigan driver’s license, gave officers a false name and did not have the consent of the property owner to be in the residence.
In early 2021, Lark used various third parties to distribute drugs, coordinating those distributions by cell phone. On February 23, 2021, Lark’s girlfriend sold approximately 12 grams of methamphetamine to a confidential informant after setting up the sale by cell phone. On March 4, 2021, Lark coordinated the sale of a quantity of fentanyl by Rebecca Dunlap, an associate of Lark’s, to a confidential informant.
On March 17, 2021, Dunlap drove from Charleston to Columbus, Ohio, to pick up controlled substances for Lark. Dunlap was stopped by law enforcement officers on her way back to Charleston with approximately 799 grams of methamphetamine and 200 grams of fentanyl. Dunlap admitted that she made that trip to Columbus to pick up drugs for Lark and further admitted that she delivered drugs to Lark from Columbus on two other occasions.
Dunlap, 48, of Charleston, pleaded guilty on September 2, 2021, to traveling in interstate commerce to promote, carry on, and facilitate a methamphetamine and fentanyl drug conspiracy, and awaits sentencing.
Lark has a long criminal history that includes at least nine prior convictions in Michigan, Minnesota, Tennessee and West Virginia, including four convictions for controlled substances-related offenses and three for fleeing from law enforcement.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Charleston Police Department, the Drug Enforcement Administration (DEA) and the Metropolitan Drug Enforcement Network Team (MDENT), and the assistance provided by the West Virginia State Police. MDENT is composed of the Charleston Police Department, the Kanawha County Sheriff’s Office, the Putnam County Sheriff’s Office, the Nitro Police Department, the St. Albans Police Department and the South Charleston Police Department.
United States District Judge Joseph R. Goodwin imposed the sentence. Assistant United States Attorneys Brian D. Parsons and Nowles Heinrich prosecuted 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. 2:21-cr-84.
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Charleston Man Pleads Guilty to Federal Gun CrimeRead the Press Release
CHARLESTON, W.Va. – Timothy Jarrett Brown, 43, of Charleston, pleaded guilty today to being a felon in possession of a firearm.
According to court documents and statements made in court, on June 24, 2023, a law enforcement officer conducted a traffic stop of a vehicle driven by Brown in the Jefferson area of Kanawha County. During the traffic stop, a police K-9 alerted to the presence of controlled substances in the vehicle. A search of the vehicle revealed a small amount of methamphetamine in Brown’s person and a Smith & Wesson model SW40VE .40-caliber semiautomatic pistol and 9mm ammunition in the vehicle.
Federal law prohibits a person with a prior felony conviction from possessing a firearm or ammunition. Brown knew he was prohibited from possessing a firearm because of his prior felony conviction for possession with intent to deliver a controlled substance, heroin, in Kanawha County Circuit Court on January 31, 2020.
Brown is scheduled to be sentenced on September 5, 2024, and faces a maximum penalty of 15 years in prison, up to 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 Kanawha County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Chief United States District Judge Thomas E. Johnston presided over the hearing. Assistant United States Attorney Alexander A. Redmon 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. 2:23-cr-203.
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Canadian man going to prison for smuggling marijuana at the Peace BridgeRead the Press Release
BUFFALO, N.Y. - U.S. Attorney Trini E. Ross announced today that Ajaypal Dhillon, 20, of Ontario, Canada, who was convicted of smuggling merchandise into the United States, was sentenced to serve 30 months in prison by U.S. District Judge John L. Sinatra, Jr.
Assistant U.S. Attorney Michael J. Adler, who handled the case, stated that on the afternoon of July 27, 2023, Dhillon drove a commercial tractor-trailer to the Peace Bridge Port of Entry seeking entry into the United States from Canada. At primary inspection, Dhillon indicated he was transporting frozen waffles destined for a Publix grocery store warehouse in Georgia. Publix representatives stated that the shipment was not expected, and the purported shipper of the product confirmed that the shipment was fraudulent. Dhillon was referred to secondary inspection, where Customs and Border Protection officers discovered boxes containing over 2000 pounds of marijuana and over 50 kilograms of ketamine. Subsequent investigation identified five prior fraudulent trips made by Dhillon, four of the trips alleged the transport of candy, the fifth was also for waffles after an attempt to transport “candy” was denied by the customs broker.
The sentencing is the result of an investigation by Customs and Border Protection, under the direction of Director of Field Operations Rose Brophy, and Homeland Security Investigations, under the direction of Special Agent-in-Charge Matthew Scarpino.
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Calaveras County Man Sentenced for COVID-19 Paycheck Protection Program FraudRead the Press Release
SACRAMENTO, Calif. — Tracy Emery Smith, 42, of Valley Springs, was sentenced today to 37 months in prison and ordered to pay $901,035 in restitution for COVID-19 Paycheck Protection Program (PPP) loan fraud and money laundering, U.S. Attorney Phillip A. Talbert announced.
Congress created the PPP in March 2020, as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, to provide emergency financial support to the millions of Americans suffering economic hardship due to the COVID-19 pandemic. The CARES Act authorized billions of dollars in forgivable loans to small businesses struggling to pay employees and other business expenses. When applying for PPP loans, borrowers were required to certify the truthfulness and accuracy of all information provided in their loan applications, including their number of employees and average monthly payroll.
“Smith’s bogus loan applications drained the PPP program of funds intended for actual businesses that were negatively impacted by the pandemic,” said U.S. Attorney Talbert. “The U.S. Attorney’s Office will continue to investigate and prosecute those who obtained PPP funds through fraud.”
“The FBI is proud to partner with our fellow agencies. Collaboration ensures a thorough investigation by leveraging the strengths and unique abilities of each agency,” said Special Agent in Charge Siddhartha Patel of the FBI Sacramento Field Office. “This case is an example of how federal agencies work together to protect taxpayer funded programs.”
“Tracy Smith fraudulently falsified Paycheck Protection Program loan applications and obtained funds designated to provide Americans financial relief during the COVID-19 pandemic under the CARES Act,” said IRS Criminal Investigation Acting Special Agent in Charge Michael Mosley of the Oakland Field Office. “Today’s sentencing reinforces that IRS Criminal Investigation special agents and investigative staff are following the money and targeting fraudsters who seek to exploit the government’s relief efforts for their personal gain.”
“Mr. Smith created ghost employees and falsified loan applications in order to fraudulently obtain PPP loan proceeds earmarked to help struggling businesses during the COVID-19 pandemic. Mr. Smith’s actions not only defrauded the PPP Loan Program, but also disadvantaged business owners who were actually entitled to the benefits,” said Special Agent in Charge Ryan L. Korner from the San Francisco Regional Office of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC OIG). “The FDIC OIG is committed to working alongside our law enforcement partners to protect the Nation’s financial system and hold accountable those individuals, like Mr. Smith, who steal benefits designated to help those in need.”
“Tracy Smith defrauded the federal government of pandemic relief funds for his own personal gain and will now pay the price for his crimes,” said Jon Ellwanger, Special Agent in Charge, Western Region, Office of Inspector General for the Board of Governors of the Federal Reserve System and Consumer Financial Protection Bureau. “We are proud to have worked with our federal law enforcement partners and the U.S. Attorney’s Office to hold Mr. Smith accountable.”
According to court documents, in 2020, in order to receive PPP loans to which he was not entitled, Smith submitted loan applications for three companies containing false information such as the number of employees, the average monthly payroll for the company, and that he had not been involved in any bankruptcy. Smith was listed as sole owner of Sharp Holding, and in the PPP loan application for that company, Smith claimed 27 employees with an average monthly payroll of $105,791. He certified that he was not involved in a bankruptcy when, in fact, his bankruptcy was pending at the time of the application. Smith received PPP loan proceeds of $220,600.
According to court documents, Smith submitted similar false loan applications for Real Fund 360 and Sharp Investor, receiving $452,800 and $242,000 respectively. As with Sharp Holdings, neither company had employees or a payroll.
This case was the product of an investigation by the Federal Bureau of Investigation, the IRS Criminal Investigation, the Federal Deposit Insurance Corporation Office of Inspector General, and the Board of Governors of the Federal Reserve System and Consumer Financial Protection Bureau Office of Inspector General. Assistant U.S. Attorney Roger Yang prosecuted the case.
This effort is part of a California COVID-19 Fraud Enforcement Strike Force operation, one of five interagency COVID-19 fraud strike force teams established by the U.S. Department of Justice. The California Strike Force combines law enforcement and prosecutorial resources in the Eastern and Central Districts of California and focuses on large-scale, multistate pandemic relief fraud perpetrated by criminal organizations and transnational actors. The strike forces use prosecutor-led and data analyst-driven teams to identify and bring to justice those who stole pandemic relief funds.
Brooklyn Man Indicted in Scheme to Steal Checks and Defraud BanksRead the Press Release
NEWARK, N.J. – A Brooklyn, New York, man was charged for his role in a scheme to steal and alter checks from the mail and fraudulently obtain funds from banks by depositing the stolen and altered checks into bank accounts belonging to individuals other than the intended recipients, U.S. Attorney Philip R. Sellinger announced today.
Noah Aranzamendi, 25, of Brooklyn, New York, is charged by indictment with conspiracy to commit bank fraud and the receipt and possession of stolen mail. Aranzamendi was arraigned on May 9, 2024, before U.S. Magistrate Judge Leda Dunn Wettre in Newark federal court and was detained.
According to documents filed in this case and statements made in court:
From February 2020 to February 2022, Aranzamendi conspired with others to steal checks from the mail in Bergen County and elsewhere, which he then sold to third parties or deposited, sometimes in altered or duplicate form, into the bank accounts of complicit accountholders who had provided access to their bank accounts for the scheme. Aranzamendi obtained stolen official USPS arrow keys, which Aranzamendi used to access mail and steal checks directly from USPS receptacles. Aranzamendi and his conspirators then targeted the accounts associated with the checks he stole and created false identifications in the names of the accountholders, which he and his conspirators used to make fraudulent withdrawals from those accounts. The scheme resulted in losses to victims of at least $240,213.
The count of bank fraud conspiracy is punishable by a maximum penalty of 30 years in prison. The count of receipt and possession of stolen mail is punishable by a maximum penalty of five years in prison. The bank fraud conspiracy count is also punishable by a fine of up to $1 million; all other charges are punishable by a maximum potential fine of up to $250,000 or twice the pecuniary gain or loss, whichever is greatest.
U.S. Attorney Sellinger credited postal inspectors of the U.S. Postal Inspection Service in Newark, under the direction of Postal Inspector in Charge Christopher A. Nielsen, Philadelphia Division; and special agents with the U.S. Postal Service – Office of Inspector General, under the direction of Special Agent in Charge Matthew Modafferi, Northeast Area Field Office. He also thanked the Teaneck Police Department under Chief Andrew R. McGurr.
The government is represented by Assistant U.S. Attorney Rachelle M. Navarro of the Organized Crime and Gangs Unit in Newark.
The charges and allegations in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
aranzamendi.indictment.pdfBoston Man Arrested for Aiming High-Powered Laser Pointer at Coast Guard HelicopterRead the Press Release
BOSTON – A Boston man was arrested today for allegedly aiming a high-powered laser pointer at a Coast Guard helicopter that was attempting to land at Massachusetts General Hospital during a training mission.
Philip Gagnon, 59, was arrested and indicted on one count of aiming a laser pointer at a Coast Guard helicopter. He was released on conditions following an initial appearance in federal court in Boston earlier today.
According to the indictment, on the evening of Sept. 21, 2023, Coast Guard helicopter 6039 was attempting to land at the Massachusetts General Hospital (MGH) as part of a routine training mission with four crew members on board. It is alleged that, as the helicopter descended towards MGH, Gagnon knowingly aimed a high-powered green laser beam at the helicopter from inside his apartment. The laser beam allegedly illuminated the side of the helicopter and shone through the helicopter’s windows. In response, the pilot aborted the MGH landing and flew north for several miles, eventually landing at another Boston area hospital.
The charge of aiming a laser pointer at an aircraft provides for a sentence of up to five years in prison, three years of supervised release and a $250,000 fine. 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 and Steven Firth, Acting Special Agent in Charge of the United States Coast Guard Investigative Service Northeast Field Office made the announcement today. Assistance U.S. Attorney Jason A. Casey of the National Security Unit is prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Beckley Man Pleads Guilty to Federal Gun CrimeRead the Press Release
BECKLEY, W.Va. – Jalen O. Thomas, 26, of Beckley, pleaded guilty today to being a felon in possession of a firearm.
According to court documents and statements made in court, on November 27, 2023, law enforcement officers executed a search warrant at a Beckley residence where Thomas was staying. During the search, officers seized a Smith & Wesson model SD9VE 9mm semiautomatic handgun, a Glock model 17 Gen 5 9mm semi-automatic handgun with an extended magazine, and a Taurus .38-caliber revolver. Thomas admitted to possessing the seized firearms.
Federal law prohibits a person with a prior felony conviction from possessing a firearm or ammunition. Thomas knew he was prohibited from possessing a firearm because of his prior conviction for felony fleeing in Cabell County Circuit Court on May 11, 2018.
Thomas is scheduled to be sentenced on September 13, 2024, and faces a maximum penalty of 15 years in prison, up to 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 U.S. Postal Inspection Service and the Beckley/Raleigh County Drug and Violent Crime Unit, which consists of officers from the West Virginia State Police, the Raleigh County Sheriff’s Department, and the Beckley Police Department.
United States Magistrate Judge Omar J. Aboulhosn presided over the hearing. Assistant United States Attorney Andrew D. Isabell 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. 5:23-cr-197.
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Beckley Man Pleads Guilty to Federal Drug CrimeRead the Press Release
BECKLEY, W.Va. – Davon Jamir Linder, 24, of Beckley, pleaded guilty today to distribution of methamphetamine.
According to court documents and statements made in court, on February 27, 2023, Linder sold a controlled substance containing methamphetamine to a confidential informant in Beckley. Linder admitted to the transaction.
Linder is scheduled to be sentenced on September 13, 2024, and faces a maximum penalty of 20 years in prison, at least three years of supervised release, and a $1 million fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI) and the Beckley/Raleigh County Drug and Violent Crime Unit, which consists of officers from the West Virginia State Police, the Raleigh County Sheriff’s Department, and the Beckley Police Department.
United States Magistrate Judge Omar J. Aboulhosn presided over the hearing. Assistant United States Attorney Andrew D. Isabell 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. 5:23-cr-171.
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11 May 2024
U.S. Attorney Dena J. King Delivers Commencement Address at Isothermal Community CollegeRead the Press Release
CHARLOTTE, N.C. – Today, U.S. Attorney Dena J. King delivered the commencement address for two graduation ceremonies held at Isothermal Community College (ICC) in Spindale, North Carolina. The first ceremony recognized graduates who earned associate degrees, diplomas, and certificates. The second ceremony recognized students who graduated with adult high school diplomas or general equivalency diplomas.
“It is an honor and a privilege to address the graduating classes of 2024,” said U.S. Attorney King. “I commend the graduates for their determination, resilience, and perseverance to reach this pivotal moment in their lives. I congratulate each of them for reaching this significant milestone and I wish them a future filled with success and endless possibilities as they embark on a new chapter in their lives. I am certain that they will continue to pursue their dreams and make a positive impact on society.”
In her commencement speech, U.S. Attorney King encouraged the graduates to embrace the challenges and opportunities that lie ahead and urged them to continue their journey of lifelong learning. U.S. Attorney King also stressed the importance of acknowledging those who aided graduates along the way, and to pay it forward by supporting others in the pursuit of their aspirations, noting that this is how “we progress in our own lives, and how we advance as a society.”
ICC is one of North Carolina’s leading community colleges serving Rutherford and Polk counties, with three locations, and a leading online learning college. ICC is an accredited institution with more than 100 associate degrees, diplomas, and certificates that prepare students for University transfer or immediate employment. The college also offers short-term, non-degree programs in healthcare, hospitality, emergency services, and more. ICC also serves high school students in the Rutherford Early College High School (REaCH) program, and also offers classes at area high schools through Career and College Promise program.
10 May 2024
Zuni Man Pleads Guilty to AssaultRead the Press Release
ALBUQUERQUE – A Zuni man pleaded guilty in federal court to assault with a dangerous weapon.
In his plea agreement, Brian Aragon, 35, an enrolled member of the Zuni Pueblo, admitted that on June 19, 2019, he beat Jane Doe with a candelabra. As a result of the assault, Jane Doe suffered bodily injury.
The Court ordered that Aragon remain in custody pending sentencing, which has not been scheduled. At sentencing, Aragon faces up to 10 years in prison. Upon his release from prison, Aragon will be subject to three years of supervised release.
U.S. Attorney Alexander M.M. Uballez made the announcement today.
The Bureau of Indian Affairs investigated the case with the assistance of the Acoma Police Department. Assistant U.S. Attorneys Brittany DuChaussee and Alexander F. Flores are prosecuting the case.
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Violent Shooting Spree Leads to Arrest of Suspect in GallupRead the Press Release
ALBUQUERQUE – A man is facing federal charges for murder following a violent day-long crime spree in Gallup, New Mexico.
The criminal complaint alleges that on April 24, 2024, a family traveling south on U.S. Highway 491 reported to law enforcement that they had been followed, rear-ended, and shot at by someone sitting in the front passenger seat of a white SUV.
Further investigation revealed that earlier that day, Rydell Happy, 30, and two others had been involved in a separate shooting incident in Gallup, New Mexico, where a third individual was shot at Happy's direction.
After the shooting on the highway, the group continued driving south, and one of the vehicle's occupants, John Doe, began to argue with Happy. Happy then ordered the group to get out of the car, and once they had done so, he shot John Doe. Happy then grabbed a baseball bat and began hitting John Doe in the head. Happy and one of the others then dragged John Doe's body over the edge of a nearby cliff.
Following reports of the earlier shooting on Highway 491, officers from the Navajo Nation Police Department were on the lookout for a white SUV. Officers later observed a vehicle matching the description and pursued. The driver fled, but eventually crashed the SUV, and three individuals, including Happy, were apprehended.
Through follow-up investigation, investigators were able to find John Doe's body, which showed signs of severe head trauma.
If convicted of the current charges, Happy faces up to life in prison.
U.S. Attorney Alexander M.M. Uballez, and Raul Bujanda, Special Agent in Charge of the Federal Bureau of Investigation’s Albuquerque Field Office, made the announcement today.
The Farmington Resident Agency of the Federal Bureau of Investigation’s Albuquerque Field Office investigated this case with assistance from the Navajo Police Department and Navajo Department of Criminal Investigations. Assistant United States Attorney Eliot Neal is prosecuting the case.
This case is being prosecuted as part of the Department of Justice’s Missing or Murdered Indigenous Persons (MMIP) Regional Outreach Program, which aims to aid in the prevention and response to missing or murdered Indigenous people through the resolution of MMIP cases and communication, coordination, and collaboration with federal, Tribal, state, and local partners. The Department views this work as a priority for its law enforcement components. Through the MMIP Regional Outreach Program, a broad spectrum of stakeholders work together to identify MMIP cases and issues in Tribal communities and develop comprehensive solutions to address them. This prosecution upholds the Department’s mission to the unwavering pursuit of justice on behalf of Indigenous victims and their families.
View the Criminal ComplaintA criminal 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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U.S. Law Enforcement Takes Action Against More Than 3,000 Money Mules in Initiative to Disrupt Transnational Fraud SchemesRead the Press Release
The Justice Department, FBI, U.S. Postal Inspection Service (USPIS), and other federal law enforcement agencies announced today the completion of the Money Mule Initiative, an annual campaign to identify, disrupt, and criminally prosecute networks of individuals who transmit funds from fraud victims to international fraudsters. Fraudsters rely on money mules to facilitate a range of fraud schemes, including those that predominantly impact older Americans, such as lottery fraud, romance scams and grandparent scams as well as those that target businesses or government pandemic funds.
As part of this year’s initiative, law enforcement took action to stop over 3,000 money mules responsible for facilitating a range of fraud schemes. These thousands of actions ranged from criminal prosecutions designed to punish those intentionally assisting fraudsters to warning letters intended to advise those who may have been unknowingly recruited by fraudsters. Agencies are also conducting outreach to educate the public about how fraudsters use money mules and how to avoid unknowingly assisting fraud by receiving and transferring money.
“The Justice Department is committed to using every tool at our disposal to protect Americans from fraud,” said Acting Associate Attorney General Benjamin C. Mizer. “By working with our federal partners to disrupt money mule networks, educate consumers about scams, and prosecute criminals, we can keep money out of the hands of international fraudsters and in the pockets of hard-working Americans.”
“The FBI and its partners will relentlessly pursue individuals looking to illegally move funds for illicit purposes,” said Assistant Director Michael Nordwall of the FBI’s Criminal Investigative Division. “Our work of protecting the American people includes prosecuting individuals and networks who knowingly facilitate fraud schemes, while educating consumers and unwitting participants on the dangers of illicit money mule networks.”
“The dismantling of these criminal networks should send a strong message that the U.S. Postal Inspection Service, along with our partners, is committed to taking down these criminal networks designed to inflict financial harm, oftentimes to our most vulnerable population, older Americans,” said Inspector in Charge Eric Shen of USPIS. “The Inspection Service will continue to participate in public education efforts, while remaining committed to enforcing the laws that bring money mules and their international puppeteers to justice.”
This year’s effort was coordinated by the Justice Department’s Consumer Protection Branch, FBI, and USPIS. Other participating agencies were the Department of Labor Office of Inspector General, Federal Deposit Insurance Corporation Office of Inspector General, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), and IRS Criminal Investigation (IRS-CI).
Participating agencies served approximately 2,970 letters warning individuals that their actions were facilitating fraud schemes. Many money mules begin as victims of romance or lottery scams and are unknowingly lured by fraudsters into transmitting fraud proceeds based on lies. Other money mules are recruited into what they initially believe to be legitimate work-at-home jobs. In order to educate and deter these types of unknowing money mules, the letters served by law enforcement warned individuals that their activities are facilitating fraud and outlined the potential consequences of continuing to transmit illegally acquired funds.
Additionally, more than 20 individuals were criminally charged for knowingly receiving and forwarding victim funds or otherwise laundering fraud proceeds. These cases included:
- The Consumer Protection Branch and the U.S. Attorney’s Office for the District of New Jersey charged five defendants for allegedly acting as couriers who went to the homes of elderly victims of a grandparent scam to pick up cash, often using false names and providing victims with fake receipts. The couriers then brought the cash to other members of the conspiracy, who sent the victims’ money to the Dominican Republic.
- The U.S. Attorney’s Office for the Western District of North Carolina charged two men for allegedly laundering over $4.5 million in proceeds of business email compromise schemes and online romance scams targeting elderly victims. The defendants opened bank accounts to receive wires and other transfers of funds from fraud victims. The defendants then withdrew and transferred the fraud proceeds, including transfers into overseas accounts, and kept a portion of the proceeds for themselves.
- The U.S. Attorney’s Office for the Eastern District of Missouri charged three men for their roles in allegedly collecting and transmitting funds from victims of a nationwide tech support fraud scam targeting the elderly. According to charges, one of the defendants recruited college students to act as couriers to collect payments from victims around the country and to fraudulently open bank accounts into which the proceeds of the scam would be deposited. The other two defendants allegedly provided the couriers with assignments, instructions, and payment. The defendants deposited about $7 million in cashier’s checks into one bank account between March 2020 and July 2023.
As in past years, participating agencies are also working to raise public awareness about how fraudsters recruit and use individuals to assist their fraud operations. IRS-CI implemented a public awareness campaign to warn taxpayers about the ways in which fraudsters recruit money mules. Additionally, the Justice Department and USPIS partnered with the American Banking Association Foundation to present a webinar to banks regarding money mules and the role banks can play in identifying and stopping them.
The agencies involved in this effort urge consumers to be on the lookout for signs someone is trying to recruit them to receive and transmit fraud proceeds. Do not agree to receive money or checks mailed to you or sent to your bank account for someone you have met over the phone or online. Do not open a bank or cryptocurrency account at someone else’s direction. Fraudsters will lie to persuade you to help them. They may falsely tell you that they are helping you get a lottery prize, initiate a purported romantic relationship and then tell you that they need money, or pretend to offer you a job, an opportunity to invest in a business venture, or the chance to help in a charitable effort.
If you or someone you know is age 60 or older and has experienced financial fraud, experienced professionals are standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This Justice Department hotline, managed by the Office for Victims of Crime, can provide personalized support to callers by assessing the needs of the victim and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is open Monday through Friday from 10:00 a.m. to 6:00 p.m. ET. English, Spanish, and other languages are available. The Federal Trade Commission also provides a hotline at 877-FTC-HELP and a website at www.ReportFraud.Ftc.gov to receive consumer complaints.
More information about the Department’s efforts to help American seniors is available at its Elder Justice Initiative webpage. For more information about the Consumer Protection Branch and its enforcement efforts, visit www.justice.gov/civil/consumer-protection-branch. The Justice Department provides information about a variety of resources relating to elder fraud victimization through its Office for Victims of Crime, which are available at www.ovc.gov.
U.S. Attorney’s Office for the District of Vermont Recognizes National Police WeekRead the Press Release
Burlington, Vermont - In honor of National Police Week, United States Attorney Nikolas P. Kerest recognizes the service and sacrifice of federal, state, county, and local law enforcement officers in Vermont. This year, the week is observed from Sunday, May 12 through Saturday, May 18, 2024.
In 1962, President Kennedy issued the first proclamation for Peace Officers Memorial Day and National Police Week to remember and honor law enforcement officers for their service and sacrifices. According to preliminary data compiled by the National Law Enforcement Officers Memorial Fund (NLEOMF), as of December 31, 2023, 136 federal, state, tribal and local law enforcement officers died in the line-of-duty in 2023, including one police officer from Rutland, Vermont.
Peace Officers Memorial Day, which every year falls on May 15, specifically honors law enforcement officers killed or disabled in the line of duty and the U.S. Attorney’s Office encourages Vermonters and citizens across the country to remember and honor those who gave their lives so the rest of us can live peacefully.
U.S. Attorney Kerest stated, “Every day in Vermont, law enforcement officers face uncertain and dangerous situations, putting themselves in harm’s way to confront violence and protect our communities. This is difficult work and is vital to the safety of all Vermonters. My office commends and thanks each of them for their commitment and dedication to our Vermont communities. National Police Week also is a time to think about officer wellness. The pressures of responding to unknown circumstances take a toll on law enforcement officers and deserve attention. I encourage everyone to reach out to a police officer or your local police department this week and convey gratitude for their sacrifices.”
Each year, as stated on the NLEOMF’s website, hundreds of names of officers killed in the line of duty are engraved on the walls of the National Law Enforcement Officers Memorial in Washington D.C. These names are then read out loud during the annual Candlelight Vigil held on the National Mall, in Washington, D.C., to memorialize those who made the ultimate sacrifice. 2024 will mark the 36th Annual Candlelight Vigil and will be held on Monday, May 13, 2024, at 8:00 PM EDT. The schedule of National Police Week events is available on NLEOMF’s website.
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Reference to any specific organization or service(s) offered by an organization is for the information and convenience of the public, and does not constitute endorsement, recommendation, or favoring by the United States Department of Justice.
U.S. Attorney's Office Joins Department of Justice Initiative to Disrupt Transnational Fraud SchemesRead the Press Release
CHARLOTTE, N.C. – The U.S. Attorney’s office for the Western District of North Carolina joined the Justice Department, FBI, U.S. Postal Inspection Service (USPIS), and other federal law enforcement agencies to announce the completion of the Money Mule Initiative, an annual campaign to identify, disrupt, and criminally prosecute networks of individuals who transmit funds from fraud victims to international fraudsters. Fraudsters rely on money mules to facilitate a range of fraud schemes, including those that predominantly impact older Americans, such as lottery fraud, romance scams and grandparent scams as well as those that target businesses or government pandemic funds.
“Criminals perpetrating lucrative financial schemes that defraud unsuspecting American businesses and individual consumers are serious threats to our economic security and stability,” said U.S. Attorney King. “Through our collaboration with our law enforcement counterparts, we aim to identify and dismantle money mule networks and bring perpetrators to justice. Equally important are our efforts to increase public awareness, by educating consumers on how to avoid becoming unwitting money mules and understanding the risks and consequences of being involved in this illegal activity.”
As part of this year’s initiative, law enforcement took action to stop over 3,000 money mules responsible for facilitating a range of fraud schemes. These thousands of actions ranged from criminal prosecutions designed to punish those intentionally assisting fraudsters to warning letters intended to advise those who may have been unknowingly recruited by fraudsters. Agencies are also conducting outreach to educate the public about how fraudsters use money mules and how to avoid unknowingly assisting fraud by receiving and transferring money.
More than 20 individuals were criminally charged for knowingly receiving and forwarding victim funds or otherwise laundering fraud proceeds. These cases included:
- The U.S. Attorney’s Office for the Western District of North Carolina charged two men for allegedly laundering over $4.5 million in proceeds of business email compromise schemes and online romance scams targeting elderly victims. The defendants opened bank accounts to receive wires and other transfers of funds from fraud victims. The defendants then withdrew and transferred the fraud proceeds, including transfers into overseas accounts, and kept a portion of the proceeds for themselves.
- The Consumer Protection Branch and the U.S. Attorney’s Office for the District of New Jersey charged five defendants for allegedly acting as couriers who went to the homes of elderly victims of a grandparent scam to pick up cash, often using false names and providing victims with fake receipts. The couriers then brought the cash to other members of the conspiracy, who sent the victims’ money to the Dominican Republic.
- The U.S. Attorney’s Office for the Eastern District of Missouri charged three men for their roles in allegedly collecting and transmitting funds from victims of a nationwide tech support fraud scam targeting the elderly. According to charges, one of the defendants recruited college students to act as couriers to collect payments from victims around the country and to fraudulently open bank accounts into which the proceeds of the scam would be deposited. The other two defendants allegedly provided the couriers with assignments, instructions, and payment. The defendants deposited about $7 million in cashier’s checks into one bank account between March 2020 and July 2023.
“The Justice Department is committed to using every tool at our disposal to protect Americans from fraud,” said Acting Associate Attorney General Benjamin C. Mizer. “By working with our federal partners to disrupt money mule networks, educate consumers about scams, and prosecute criminals, we can keep money out of the hands of international fraudsters and in the pockets of hard-working Americans.”
Additionally, participating agencies served approximately 2,970 letters warning individuals that their actions were facilitating fraud schemes. Many money mules begin as victims of romance or lottery scams and are unknowingly lured by fraudsters into transmitting fraud proceeds based on lies. Other money mules are recruited into what they initially believe to be legitimate work-at-home jobs. In order to educate and deter these types of unknowing money mules, the letters served by law enforcement warned individuals that their activities are facilitating fraud and outlined the potential consequences of continuing to transmit illegally acquired funds.
This year’s effort was coordinated by the Justice Department’s Consumer Protection Branch, FBI, and USPIS. Other participating agencies were the Department of Labor Office of Inspector General, Federal Deposit Insurance Corporation Office of Inspector General, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), and IRS Criminal Investigation (IRS-CI).
“The FBI and its partners will relentlessly pursue individuals looking to illegally move funds for illicit purposes,” said Assistant Director Michael Nordwall of the FBI’s Criminal Investigative Division. “Our work of protecting the American people includes prosecuting individuals and networks who knowingly facilitate fraud schemes, while educating consumers and unwitting participants on the dangers of illicit money mule networks.”
“The dismantling of these criminal networks should send a strong message that the U.S. Postal Inspection Service, along with our partners, is committed to taking down these criminal networks designed to inflict financial harm, oftentimes to our most vulnerable population, older Americans,” said Inspector in Charge Eric Shen of USPIS. “The Inspection Service will continue to participate in public education efforts, while remaining committed to enforcing the laws that bring money mules and their international puppeteers to justice.”
As in past years, participating agencies are also working to raise public awareness about how fraudsters recruit and use individuals to assist their fraud operations. IRS-CI implemented a public awareness campaign to warn taxpayers about the ways in which fraudsters recruit money mules. Additionally, the Justice Department and USPIS partnered with the American Banking Association Foundation to present a webinar to banks regarding money mules and the role banks can play in identifying and stopping them.
The agencies involved in this effort urge consumers to be on the lookout for signs someone is trying to recruit them to receive and transmit fraud proceeds. Do not agree to receive money or checks mailed to you or sent to your bank account for someone you have met over the phone or online. Do not open a bank or cryptocurrency account at someone else’s direction. Fraudsters will lie to persuade you to help them. They may falsely tell you that they are helping you get a lottery prize, initiate a purported romantic relationship and then tell you that they need money, or pretend to offer you a job, an opportunity to invest in a business venture, or the chance to help in a charitable effort.
If you or someone you know is age 60 or older and has experienced financial fraud, experienced professionals are standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This Justice Department hotline, managed by the Office for Victims of Crime, can provide personalized support to callers by assessing the needs of the victim and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is open Monday through Friday from 10:00 a.m. to 6:00 p.m. ET. English, Spanish, and other languages are available. The Federal Trade Commission also provides a hotline at 877-FTC-HELP and a website at www.ftccomplaintassistant.gov to receive consumer complaints.
More information about the Department’s efforts to help American seniors is available at its Elder Justice Initiative webpage. For more information about the Consumer Protection Branch and its enforcement efforts, visit www.justice.gov/civil/consumer-protection-branch. The Justice Department provides information about a variety of resources relating to elder fraud victimization through its Office for Victims of Crime, which are available at www.ovc.gov.
Two Men Plead Guilty to Defrauding COVID-19 Pandemic Relief ProgramsRead the Press Release
Spokane, Washington - Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington, announced today that two individuals pleaded guilty to fraud in connection with COVID-19 relief funding.
On March 27, 2020, the President signed into law the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The CARES Act provided a number of programs through which eligible small businesses could request and obtain relief funding intended to mitigate the economic impacts of the pandemic for small and local businesses. One such program, the Paycheck Protection Program (PPP), provided forgivable loans to eligible small businesses to retain jobs and maintain payroll during the pandemic. Another program, the Economic Injury Disaster Loan (EIDL) program, provided low-interest bridge funding for small businesses placed at risk during the pandemic.
David Kurt Schneider, 54, pleaded guilty to Conspiracy to Commit Wire Fraud and Bank Fraud. Chief United States District Judge Stanley A. Bastian accepted Schneider’s guilty plea, and set sentencing for August 13, 2024, at 9:00 a.m., in Yakima.
In the plea agreement accepted by the court, and in information disclosed during court proceedings, Schneider admitted that he conspired, along with two other defendants, to fraudulently obtain CARES Act funding through the PPP program, collectively obtaining over $265,000 in PPP funding. Schneider further admitted that he and his co-defendants submitted additional fraudulent applications seeking over $560,000 in CARES Act funding through the PPP and EIDL programs, applications which were ultimately not approved. Schneider, as part of the conspiracy, admitted all three defendants submitted false information and documents to the SBA and participating PPP lenders regarding gross revenues, number of employees, and amount spent on payroll in an attempt to obtain CARES Act funds to which they were not otherwise entitled. According to the plea agreement, Schneider and others submitted funding applications in the name of Larsen Firearms, owned by co-defendant Leif Gerald Larsen, and Solar Mobility LLC, RealNZ Water LLC, and Tempest Tactical Solutions, LLC, all owned by Schneider.
In a separate case, Nathan Michael Triano, 40, pleaded guilty to Wire Fraud. United States District Judge Thomas O. Rice accepted Tirano’s guilty plea, and set sentencing for August 7, 2024, at 10:00 a.m. in Spokane.
In the plea agreement accepted by the court, and in information disclosed during court proceedings, Triano admitted he obtained six PPP loans totaling $140,865.00 by submitting materially false and fraudulent information concerning various purported businesses. In addition to the PPP funds dispersed to Triano, the United States also incurred a loss of $15,000.00 in lender fees for the PPPs, resulting in a total actual and intended loss of at least $155,865.00.
“Both of these defendants repeatedly used fraudulent schemes to defraud the United States Government and take critical funds that were to be used as a lifeline to small and local businesses struggling during the COVID-19 pandemic,” stated U.S. Attorney Waldref. “My Office will continue to lead the effort to prosecute those who stole money intended for those in legitimate need.”
United States v. Schneider was investigated by the Eastern District of Washington COVID-19 Fraud Strike Force and by and by FBI and SBA OIG.
United States v. Triano was investigated by the Eastern District of Washington COVID-19 Fraud Strike Force and by SBA-OIG, TIGTA, DOL-OIG, DHS-HSI and DHS-OIG.
Both cases are being prosecuted by Assistant United States Attorneys Frieda K. Zimmerman and Jeremy J. Kelley.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.