Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
10 January 2024
SAP to Pay over $220M to Resolve Foreign Bribery InvestigationsRead the Press Release
SAP SE (SAP), a publicly traded global software company based in Germany, will pay over $220 million to resolve investigations by the U.S. Justice Department and the Securities and Exchange Commission (SEC) into violations of the Foreign Corrupt Practices Act (FCPA).
SAP’s resolution with the department stems from schemes to pay bribes to government officials in South Africa and Indonesia. The department’s resolution is coordinated with prosecutorial authorities in South Africa, as well as with the SEC.
According to court documents, SAP entered into a three-year deferred prosecution agreement (DPA) with the department in connection with a criminal information filed in the Eastern District of Virginia charging the company with two counts: conspiracy to violate the anti-bribery and books and records provisions of the FCPA relating to its scheme to pay bribes to South African officials, and conspiracy to violate the anti-bribery provision of the FCPA for its scheme to pay bribes to Indonesian officials.
“SAP paid bribes to officials at state-owned enterprises in South Africa and Indonesia to obtain valuable government business,” said Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division. “Today’s resolution—our second coordinated resolution with South African authorities in just over a year—marks an important moment in our ongoing fight against foreign bribery and corruption. We look forward to continuing to strengthen our relationship with South African authorities and others around the world. This case demonstrates not only the critical importance of coordinated international efforts to combat corruption, but also how our corporate enforcement policies incentivize companies to be good corporate citizens, by cooperating with our investigations and appropriately remediating, so that we can take strong action to address misconduct.”
“SAP has accepted responsibility for corrupt practices that hurt honest businesses engaging in global commerce,” said U.S. Attorney Jessica D. Aber for the Eastern District of Virginia. “We will continue to vigorously prosecute bribery cases to protect domestic companies that follow the law while participating in the international marketplace.”
According to court documents, SAP and its co-conspirators made bribe payments and provided other things of value intended for the benefit of South African and Indonesian foreign officials, delivering money in the form of cash payments, political contributions, and wire and other electronic transfers, along with luxury goods purchased during shopping trips. Specifically, with respect to South Africa, between approximately 2013 and 2017, SAP, through certain of its agents, engaged in a scheme to bribe South African officials and to falsify SAP’s books, records, and accounts, all with the goal of obtaining improper advantages for SAP in connection with various contracts with South African departments, agencies, and instrumentalities, including the City of Johannesburg, the City of Tshwane, the Department of Water and Sanitation (a South African state-owned and state-controlled custodian of water services), and Eskom Holdings Limited (a South African state-owned and state-controlled energy company).
“This successful resolution against SAP is another example of the power of relationships and persistence,” said Assistant Director in Charge Donald Always of the FBI’s Los Angeles Field Office. “The sustained diligence by the prosecution team and continuous collaboration with South African law enforcement, regulators, and prosecutors identified corrupt activity in multiple countries. The FBI will continue our nonstop efforts to identify, investigate, and prosecute companies willfully engaging in corrupt activities around the world.”
In addition, between approximately 2015 and 2018, SAP, through certain of its agents, engaged in a scheme to bribe Indonesian officials to obtain improper business advantages for SAP in connection with various contracts between and among SAP and Indonesian departments, agencies, and instrumentalities, including the Kementerian Kelautan dan Perikanan (the Indonesian Ministry of Maritime Affairs and Fisheries) and Balai Penyedia dan Pengelola Pembiayaan Telekomunikasi dan Informatika (an Indonesian state-owned and state-controlled Telecommunications and Information Accessibility Agency).
“When the mails are used in furtherance of a fraud or corruption scheme, borders are not an obstacle for U.S. Postal Inspectors,” said Postal Inspector in Charge of Criminal Investigations Eric Shen. “Postal inspectors, with our FBI law enforcement partners and Justice Department prosecutors, followed the wide-spread trail of bribes and corruption from South Africa to Indonesia. This joint effort resulted in the defendant company paying a significant criminal penalty and agreeing to long-term remedial measures.”
Pursuant to the DPA, SAP will pay a criminal penalty of $118.8 million and administrative forfeiture of $103,396,765. SAP will also continue cooperating with the department in any ongoing or future criminal investigation arising during the term of the DPA. In addition, the department will credit up to $55.1 million of the criminal penalty against amounts that SAP pays to resolve an investigation by law enforcement authorities in South Africa for related conduct. The department will credit up to the full forfeiture amount against disgorgement that SAP pays to the SEC or South African authorities.
Under Part I of the Criminal Division’s March 2023 Compensation Incentives and Clawbacks Pilot Program, SAP’s compliance obligations include a commitment to implementing criteria relating to compliance in the company’s compensation and bonus system, subject to local labor laws. Under Part II of the Pilot Program, the department reduced the criminal penalty by $109,141 for compensation that SAP withheld from qualifying employees, which action the company defended in substantial litigation.
The department reached this resolution with SAP based on a number of factors, including, among others, the nature and seriousness of the offense. SAP received credit for its cooperation with the department’s investigation, which included (i) immediately beginning to cooperate after South African investigative reports made public allegations of the South Africa-related misconduct in 2017 and providing regular, prompt, and detailed updates to the department regarding factual information obtained through its own internal investigation, which allowed the government to preserve and obtain evidence as part of its independent investigation; (ii) expeditiously producing relevant documents and other information to the department from multiple foreign countries, while navigating foreign data privacy and related laws; (iii) at the request of the department, voluntarily making company officers and employees available for interviews; (iv) taking significant affirmative steps to facilitate interviews while addressing witness security concerns; (v) raising and resolving potential deconfliction issues between SAP’s internal investigation and the investigation being conducted by the department; (vi) promptly collecting, analyzing, and organizing voluminous information, including complex financial information, at the request of the department; (vii) translating voluminous foreign language documents to facilitate and expedite review by the department; and (viii) imaging the phones of relevant custodians at the beginning of SAP’s internal investigation, thus preserving relevant and highly probative business communications sent on mobile messaging applications.
SAP also engaged in timely remedial measures, including: (i) conducting an analysis of the root causes of the underlying conduct and gap analysis, and undertaking appropriate remediation to address those root causes and enhance its compliance program; (ii) undertaking a comprehensive risk assessment focusing on high risk areas and controls around payment processes and enhancing its regular compliance risk assessment process, including by incorporating comprehensive operational and compliance data into its risk assessments; (iii) eliminating its third-party sales commission model globally, and prohibiting all sales commissions for public sector contracts in high-risk markets; (iv) significantly increasing the budget, resources, and expertise devoted to compliance and restructuring its Offices of Ethics and Compliance to ensure adequate stature, independence, autonomy, and access to executive leadership; (v) enhancing its code of conduct and policies and procedures regarding gifts, hospitality, and the use of third parties; (vi) enhancing its reporting, investigations, and consequence management processes; (vii) adjusting compensation incentives to align with compliance objectives and reduce corruption risk; (viii) enhancing and expanding compliance monitoring and audit programs, planning, and resources, including developing a well-resourced team devoted to audits of third-party partners and suppliers; (ix) expanding its data analytics capabilities to cover over 150 countries, including all high-risk countries globally; and (x) promptly disciplining any and all employees involved in the misconduct.
In light of these considerations as well as SAP’s prior history, which include a non-prosecution agreement from 2021 with the department’s National Security Division, as well as administrative agreements with the Departments of Commerce and the Treasury relating to export law violations, and a resolution in 2016 with the SEC concerning alleged FCPA violations in Panama, the criminal penalty calculated under the U.S. Sentencing Guidelines reflects a 40% reduction off the tenth percentile above the low end of the otherwise applicable guidelines fine range.
The FBI’s International Corruption Unit and the U.S. Postal Inspection Service are investigating the case.
Trial Attorneys William E. Schurmann, Anthony Scarpelli, and Gwendolyn A. Stamper and Assistant Chief Jonathan P. Robell of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Heidi B. Gesch for the Eastern District of Virginia are prosecuting the case.
The Justice Department’s Office of International Affairs and authorities in South Africa provided assistance in this matter.
The Criminal Division’s Fraud Section is responsible for investigating and prosecuting FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Information DPARepeat Offender Sentenced to 10 Years in Prison for Possessing Child PornographyRead the Press Release
NEWARK, N.J. – A Somerset County, New Jersey, man was sentenced today to 120 months in prison for possessing multiple images and videos of child sexual abuse, U.S. Attorney Philip R. Sellinger announced.
John Schulenburg, 68, of Basking Ridge, New Jersey, previously pleaded guilty by videoconference before U.S. District Judge John Michael Vazquez to a superseding information charging him with possession of child pornography. U.S. District Judge Brian R. Martinotti imposed the sentence today in Newark federal court. Schulenburg was previously convicted of endangering the welfare of a child/possession of child pornography in Somerset County in 2013. For a repeat offender, the charge of possession of child pornography carries a mandatory minimum term of 10 years in prison.
According to documents filed in this case and statements made in court:
In July 2019, an undercover law enforcement officer conducted an online session using a publicly available peer-to-peer program, which allows internet users to trade digital files. During this session, a user shared multiple files featuring images of child sexual abuse from an internet address traced to Schulenburg’s residence. On Nov. 6, 2019, law enforcement lawfully obtained a computer from Schulenburg’s residence that contained hundreds of images and videos of child sexual abuse, including images of prepubescent children.
In addition to the prison term, Judge Martinotti sentenced Schulenburg to five years of supervised release and ordered to pay $58,000 in restitution.
U.S. Attorney Sellinger credited special agents with the Newark Child Exploitation and Human Trafficking Task Force, under the direction of FBI Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to today’s sentencing. He also thanked the Somerset County Prosecutor’s Office for its assistance.
The government is represented by Assistant U.S. Attorney Shawn Barnes of the U.S. Attorney’s Office Criminal Division in Newark.
Registered Sex Offender Sentenced to 15 Years in Prison for His Enticement of an Orange County MinorRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that MATTHEW MILLS was sentenced to 15 years in prison by U.S. District Judge Nelson Román for his enticement of an 11-year-old minor. Today’s sentencing followed MILLS’s guilty plea on September 29, 2023.
U.S. Attorney Damian Williams said: “Matthew Mills’s crimes are the nightmare of every parent. Even after registering as a sex offender, Mills was able to prey on a young child from across the country, but the career prosecutors of this Office and our investigative partners were relentless in pursuing this predator. Today’s lengthy sentence ensures that Mills will face justice for his reprehensible conduct.”
According to documents filed in this case and statements made in related court proceedings:
From on or about July 30, 2020, up to and including on or about July 31, 2020, MATTHEW MILLS exchanged text messages with an 11-year-old minor (“Victim-1”) and directed Victim-1 to take and transmit sexually explicit photographs and videos of Victim-1 to MILLS. At the time of these communications, MILLS was in Colorado and Victim-1 was in Orange County.
Earlier in 2020, MILLS pled guilty to Sexual Exploitation of a Child, a Class 4 Felony, in the state of Colorado. As a result of this offense, on or about July 10, 2020, MILLS was sentenced to an eight-year term of probation and was required to register as a sex offender in Colorado.
* * *
In addition to the prison sentence, MILLS, 32, of Aurora, Colorado, was sentenced to a lifetime of supervised release.
Mr. Williams praised the efforts of the Federal Bureau of Investigation (“FBI”), the FBI Hudson Valley Safe Streets Task Force, the Orange County Sheriff’s Office, and the Denver Police Department in connection with this investigation.
The prosecution is being handled by the Office’s White Plains Division. Assistant U.S. Attorney Marcia S. Cohen is in charge of the prosecution.
Prior sex offender sentenced for new crimesRead the Press Release
GREENVILLE, Miss – A Nettleton, Mississippi man was sentenced today to more than 13 years in prison for possession of child sexual abuse materials.
According to court documents, Clyde Lee Hall, 49 years old, was originally charged with failure to register as a sex offender in the Northern District of Mississippi after absconding from the Dismas Charities Residential Reentry Center while on federal supervised release. A later Cybertip revealed that Hall had been transporting and viewing child pornography on his mobile device following his release from prison. Hall had over 180 videos stored in his Google account, many of which portrayed the sexual abuse of victims under the age of 12. Hall’s prior child pornography conviction enhanced the penalties available to the Court.
On Wednesday, Chief U.S. District Judge Debra M. Brown sentenced Hall to 162 months in prison, followed by 10 years of supervised release.
“The U.S. Attorney’s Office will do everything possible to see that criminals who victimize children or who take pleasure in watching children being victimized are held accountable for their abhorrent crimes,” remarked U.S. Attorney Clay Joyner. “We applaud the work by the United States Marshals Service and the FBI in helping to bring this offender to justice and hope that this sentence will serve as a deterrent to others who would consider transporting or viewing child pornography.”
The United States Marshals Service and Federal Bureau of Investigation investigated the case.
Assistant U.S. Attorney Parker S. King prosecuted the case.
Previously Convicted Woman from Pinedale Charged with Escaping CustodyRead the Press Release
ALBUQUERQUE – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, announced that Betrina Harry Grey appeared in federal court on an indictment charging her with escape. Betrina, 32, of Pinedale, and an enrolled member of the Navajo Nation, will remain in temporary custody pending a detention hearing, which is scheduled for January 12, 2024.
According to the indictment, Grey knowingly escaped from custody at the Diersen Charities Residential Re-entry Center, an institutional facility in which she was lawfully confined to following her conviction for involuntary manslaughter and assault resulting in serious bodily injury on Nov. 11, 2022.
An indictment is only an allegation. A defendant is presumed innocent unless and until proven guilty. If convicted of the most serious allegation, Grey faces five years in prison followed by three years of supervised release.
The U.S. Marshals Service investigated this case. Assistant U.S. Attorney Nicholas J. Marshall is prosecuting the case.
View the Indictment# # #
24-14
Portsmouth Man Sentenced to 50 Months for Firearms and Drug OffensesRead the Press Release
NORFOLK, Va. – A Portsmouth man was sentenced today to 50 months in prison after illegally possessing two firearms, narcotics, and narcotics paraphernalia in a highly residential area close to downtown Portsmouth.
According to court documents, on March 16, 2023, federal agents from the Drug Enforcement Administration began surveillance on Danny Marcus Collins, 35, to assist the Portsmouth Police Department in arresting Collins as a result of two state summonses. While conducting surveillance, the investigative team observed Collins meet with multiple individuals and conduct hand-to-hand transactions from his vehicle. After noticing police, Collins rolled up the window of his vehicle and fled on foot. Collins was taken into custody.
Shortly thereafter, a Portsmouth police narcotics K9 conducted a narcotics sweep of Collins’ vehicle, which resulted in a positive alert. The vehicle was searched and approximately 27 grams of cocaine, 8.3 grams of crack cocaine, 2 grams of cocaine, and 7.5 grams of suspected marijuana were recovered. Two firearms (one loaded), $1,183, packaging material, ammunition, and a digital scale were also recovered.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Jason S. Miyares, Attorney General of Virginia; Jarod A. Forget, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Division; and Stephen Jenkins, Chief of Portsmouth Police, made the announcement after sentencing by U.S. District Judge Jamar K. Walker.
Special Assistant U.S. Attorney Alyssa Miller and Assistant U.S. Attorney Amanda Cheney prosecuted the case.
This case was part of the DEA’s Operation Overdrive, an initiative aimed at combatting the rising rates of drug-related violent crime and overdose deaths plaguing American communities.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:23-cr-38.
Pierce County repeat offender pleads guilty to illegally possessing firearms – including machine gunsRead the Press Release
Tacoma – A Pierce County, Washington man pleaded guilty today in U.S. District Court in Tacoma to unlawful possession of a machine gun and unlawful possession of firearms related to his October arrest at a Fife, Washington auto glass firm, announced Acting U.S. Attorney Tessa M. Gorman. Brady Lee Eltz, 39, is scheduled for sentencing before Chief U.S. District Judge David G. Estudillo on April 12, 2024.
According to records filed in the case, on October 4, 2023, Fife Police were dispatched to an auto-glass repair shop where workers at the shop reported seeing firearms in the trunk of a vehicle Eltz brought in for repair. Workers also reported seeing bullet holes in the vehicle.
After law enforcement took Eltz info custody, they checked the bathroom at the business. Eltz had gone into the bathroom when he saw police arrive. In the cabinet below the sink police found two firearms – 9 mm handguns. One, a Glock, had an illegal switch known as an “auto-sear” installed. The switch allows the gun to be fired automatically, making it a machine gun. The Glock had been reported stolen.
Fife Police towed Eltz’s vehicle and applied for a warrant to search it. During the search of the vehicle’s trunk, they found three additional firearms – including a stolen rifle that had been modified to fire automatically, making it a machine gun. Police then discovered a bag with two improvised explosive devices. Pierce County Sheriff’s Office bomb technicians were called in to evaluate the devices and make them safe. One was an explosive simulator likely stolen from the U.S. Army. It can cause serious bodily injury if exploded in a confined space. The second explosive was a thick cardboard tube filled with a black powder that appeared to be flammable.
After the explosives were made safe, police continued their search of the trunk and found two additional rifles, hundreds of rounds of ammunition, latex face masks, body armor, gun sites, holsters, and other firearms accessories. Eltz also had GPS trackers, several knives, and a voice-changing device.
All of the guns, ammunition and auto-sear devices are being forfeited to the government.
Eltz is prohibited from possessing any firearms because of criminal convictions including a 2013 conviction in the Western District of Washington. Eltz was sentenced to five years in prison for that crime.
Illegal possession of a firearm is punishable by up to 15 years in prison. Possession of a machine gun is punishable by up to 10 years in prison.
The case is being investigated by the Bureau of Alcohol, Tobacco, Firearms, & Explosives (ATF) with assistance from the Fife Police Department and the Pierce County Sheriff’s Office. The Washington State Patrol assisted with locating and arresting Eltz on a federal warrant after he posted bail and left state custody.
The case is being prosecuted by Assistant United States Attorney Marci L. Ellsworth.
Passaic County Man Admits Embezzling Funds from Bookkeeping ClientsRead the Press Release
NEWARK, N.J. – A Passaic County, New Jersey, man today admitted his role in embezzling funds from clients of his bookkeeping business, U.S. Attorney Philip R. Sellinger announced today.
Richard Winter, 53, of Pompton Lakes, pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to an information charging him with one count of wire fraud and one count tax evasion.
According to documents filed in this case and statements made in court:
From January 2016 through December 2019, Winter, while serving as a bookkeeper for various companies, devised a scheme to fraudulently misappropriate hundreds of thousands of dollars from his clients. Winter accomplished this fraud by authorizing bank wire transfers from the victim companies, diverting vendor payments to his own bank accounts through an online payment portal, and issuing checks payable to “cash” from the victim companies and depositing those checks into his bank accounts. Winter failed to file tax returns reporting the income he received from his fraud for tax years 2016 through 2019.
The wire fraud charge carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense, whichever is greatest. The tax evasion charge carries a maximum potential penalty of five years in prison and a $100,000 fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for July 9, 2024.
U.S. Attorney Sellinger credited U.S. Postal Inspection Service in Newark, under the direction of Inspector in Charge Christopher A. Nielsen, Philadelphia Division; and special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Tammy Tomlins in Newark, with the investigation leading to the today’s guilty plea.
The government is represented by Assistant U.S. Attorney Shontae D. Gray of the Economic Crimes Unit in Newark.
winter.information.pdfOswego County Man Sentenced to 135 Months for Possessing Child PornographyRead the Press Release
SYRACUSE, NEW YORK – Marcus Lombardo, age 40, of Hannibal, New York, was sentenced today to serve 135 months in federal prison for possessing child pornography, announced United States Attorney Carla B. Freedman and Craig L. Tremaroli, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
As part of his earlier guilty plea, Lombardo admitted that on February 18, 2021, during a visit at his home from his United States Probation Officer, Lombardo possessed at least 180 image and video files of child pornography on an SD card found inside a cell phone that he was prohibited from possessing under the conditions of his supervised release.
Lombardo was on federal supervision following a 2012 federal conviction for receipt and possession of child pornography and commission of a felony offense while on pretrial release. He was sentenced to a one-year term of imprisonment in 2019 for violating the conditions of his release on a prior occasion and was sentenced to 16-month term in 2021 for the violation that occurred on February 18, 2021.
United States District Judge David N. Hurd also imposed a 15-year term of supervised release, which will start after Lombardo is released from prison, and ordered him to pay a $100 special assessment and restitution in the amount of $12,000 to victims depicted in the images and videos he possessed. Lombardo will also be required to continue to register as a sex offender.
This case was investigated by the United States Probation Office (Syracuse) and the FBI Mid-State Child Exploitation Task Force, comprised of FBI Special Agents and Investigators of the New York State Police, Bureau of Criminal Investigation (BCI). The case was prosecuted by Assistant U.S. Attorney Thomas Sutcliffe as a part of Project Safe Childhood.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). 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 https://www.justice.gov/psc.
Oregon Man Pleads Guilty for Role in Conspiracy to Engage in Animal Crushing Resulting in the Torture, Mutilation and Murder of MonkeysRead the Press Release
EUGENE, Ore.—An Oregon man pleaded guilty today in federal court for his role in a conspiracy to produce and distribute videos depicting the torture, mutilation and murder of monkeys in exchange for money raised by an online animal abuse group the man administered.
David Christopher Noble, 48, of Prineville, Oregon, pleaded guilty to conspiring to engage in animal crushing and creating and distributing animal crush videos.
According to court documents, from an unknown date no later than January 19, 2022, and continuing until February 2, 2023, Noble conspired with others in the District of Oregon and elsewhere to send multiple online payments to co-conspirators overseas to fund the production of videos depicting the torture, mutilation and murder of monkeys. In furtherance of the conspiracy, Noble administered an online group wherein members would raise funds to produce, discuss ideas for, and share animal abuse videos.
In 2006, Noble, a former United States Air Force Officer, was dismissed from the Air Force and ordered to serve six months in military custody following a court martial for fraud and an unprofessional relationship. In early February 2023, following the investigation in this case, investigators executed a search warrant on Noble’s residence and found approximately 50 videos depicting animal abuse, along with several firearms and ammunition.
On May 18, 2023, a federal grand jury in Eugene returned an indictment charging Noble with conspiring to engage in animal crushing and creating and distributing animal crush videos, creating animal crush videos, and illegally possessing a firearm as a dishonorably discharged person.
After his home was searched, Noble relocated from Prineville to Henderson, Nevada, and, on June 13, 2023, was arrested in Henderson. The next day, he made his first appearance in federal court in Las Vegas and was ordered detained pending his transfer to Oregon. On July 21, 2023, after arriving in Oregon, Noble was again ordered detained based on the nature of his offenses, including the extreme violence associated, and his possession of firearms.
For his role in the conspiracy, Noble faces a maximum sentence of five years in prison, a $250,000 fine and three years’ supervised release. He will be sentenced on April 24, 2024.
This case was investigated by Homeland Security Investigations (HSI). It is being prosecuted by William M. McLaren and Adam E. Delph, Assistant U.S. Attorneys for the District of Oregon.
Omaha Man Sentenced for Possession of Child PornographyRead the Press Release
Acting United States Attorney Susan Lehr announced that Richard Allan Knight, 53, of Omaha, Nebraska, was sentenced on January 10, 2024, in federal court in Omaha for possession of child pornography. United States District Judge Brian C. Buescher sentenced Knight to 210 months’ imprisonment. There is no parole in the federal system. After Knight’s release from prison, he will begin a 15-year term of supervised release. Judge Buescher ordered Knight to pay restitution in the amount of $3,000. Knight will also be required to register as a sex offender.
On June 29, 2021, an officer with the Omaha Police Department responded to a radio call of found property by the owner of a residence on Curtis Avenue, in Omaha. Between May 2, 2021, and June 29, 2021, Knight had been living in the residence and a white 2011 Forrest River camper trailer parked at the residence. The officer conducted a search of the home and trailer where he found a digital hard drive in the trailer, which was owned by Knight. The homeowner also gave the officer a cellular phone belonging to Knight found in the garage of the residence.
A search warrant was obtained for digital hard drive and the cellular phone. Forensic review of the devices revealed images and videos depicting minors, some under the age of 12, engaging in sexually explicit conduct. There were also numerous images and personal information found on the devices confirming Knight’s ownership of both.
Knight was convicted on March 14, 1997, of 1st Degree Sexual Abuse in Marion County, Oregon. Knight was also on federal supervised release for failing to register as a sex offender when the instant offense occurred.
This case was investigated by the Omaha Police Department.
Nigel John-Ross Henry Sentenced to 75 Months in Prison for Conspiracy to Commit Wire and Mail Fraud and Identity Theft in an Elder Sweepstakes ScamRead the Press Release
KNOXVILLE, Tenn. – On January 10, 2024, Nigel John-Ross Henry, 38, a Jamaica citizen, was sentenced by the Honorable Thomas A. Varlan, in the United States District Court for the Eastern District of Tennessee at Knoxville.
As part of the plea agreement filed with the court, Henry agreed to plead guilty to an indictment charging him with, one count of conspiracy to commit wire and mail fraud in violation of 18 U.S.C. §§ 1349, 1341, and 1343; and one count of aggravated identity theft in violation of 18 U.S.C. §1028A. Henry was sentenced to 75 months in prison, followed by five years’ supervised release. Henry has been ordered to pay restitution in the amount of $331,569.39, jointly, and severally with co-conspirators, Diedre Rochelle Weir and Diedria Roseanne Faulkner, who were both sentenced to 21 months imprisonment in December 2023.
According to filed court documents, the conspiracy was a sweepstakes scam that targeted the elderly. Elderly victims from across the United States were targeted by telephone being told they had won a large sum of money even though they had never entered the lottery. In order to claim the prize money, victims were told they had to pay taxes on the winnings first. If the victim fell for the scam, a co-conspirator continued to call the victim for more “tax” money. The number of calls to the victim became more frequent. If needed, the co-conspirator pretended to become the victim’s paramour, making the continued requests for additional “tax” money more palatable. The scam did not stop until the victim had no more money, or the victim figured out s/he was being deceived. Sometimes the conspiracy was able to fraudulently obtain Personal Identity Information (PII) from the victim. Armed with the PII, the conspiracy took over the victim’s identity and bilked the victim’s financial accounts directly. There were instances when a victim had been bilked of their life savings and that the victim was brought into the conspiracy as a “mule” to receive “tax” money from other victims. The “mule” would be told where and how to send the money minus a nominal fee for his/her trouble. Ultimately, the stolen money was sent to Henry, who took his cut and wired the rest to unknown conspirators in Jamaica.
U.S. Attorney Francis M. Hamilton, III of the Eastern District of Tennessee, and Resident Agent in Charge, Jason Brown, of the United States Secret Service, made the announcement.
The criminal indictment was the result of an investigation by the United States Secret Service. This investigation was led by USSS Senior Special Agent Lesley Cochran.
Assistant United States Attorney Jennifer Kolman represented the United States.
###
New Orleans Man Sentenced for Distributing Methamphetamine and Maintaining Drug PremisesRead the Press Release
NEW ORLEANS, LOUISIANA – RYAN NEGROTTO, a/k/a “WHITE BOY,” age 43, a resident of New Orleans, was sentenced on January 4, 2024 by U.S. District Judge Eldon E. Fallon to 255 months incarceration after previously pleading guilty to eight counts of the superseding indictment pending against him. Judge Fallon also ordered that NEGROTTO be placed on supervised release for five (5) years following release from imprisonment and pay a mandatory $100 assessment special assessment fee as to each count.
Count 1 charged NEGROTTO with conspiracy to distribute methamphetamine, in violation of 21 U.S.C § 841(a)(1) and 21 U.S.C. §§ 841(b)(1)(A), and 846. Count 2 charged NEGROTTO with distribution and possession with the intent to distribute methamphetamine, in violation of 21 U.S.C. §§841(a)(1), and 841(b)(1)(B), and 18 U.S.C. § 2. Count 3 charged NEGROTTO with distribution and possession with the intent to distribute methamphetamine, in violation of 21 U.S.C. §§ 841(a)(1) and 841(b)(1)(A), and 18 U.S.C § 2. Count 4 charged NEGROTTO with distribution of methamphetamine, in violation of 21 U.S.C §§ 841(a)(1) and 841(b)(1)(A), and 18 U.S.C § 2. Counts 5 and 7 charged NEGROTTO with possession of a firearm in furtherance of a drug trafficking crime, in violation of 18 U.S.C § 924(c)(1)(A)(i). Count 6 charged NEGROTTO with possession with the intent to distribute methamphetamine, in violation of 21 U.S.C. §§ 841(a)(1) and 841(b)(1)(B). Count 8 charged NEGROTTO with using or maintaining a drug premises, in violation of 21 U.S.C § 856(a)(1) and 18 U.S.C § 2.
According to public records, prior to March 2, 2021, the Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”) was informed that a New Orleans motorcycle shop harbored drug dealers. ATF used a confidential informant (“CI”) who both visited the shop numerous times, saw drug sales occurring and heard discussions about other drug sales. The CI learned that NEGROTTO was the co-renter of the shop.
On separate occasions in March 2021, NEGROTTO sold methamphetamine to a CI, one sale of which totaled over 300 grams, and also provided prices for future purchases. In May 2021, NEGROTTO sold over 400 grams of methamphetamine to a CI.
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.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the New Orleans Police Department, and the Louisiana State Police. Assistant United States Attorney Mike Trummel of the Violent Crime Unit handled the prosecution.
New Jersey Laboratory and Owner/CEO Agree to Pay $13 Million to Settle Allegations of Kickbacks and Unnecessary TestingRead the Press Release
NEWARK, N.J. – A clinical laboratory and its owner and chief executive officer have agreed to pay $13.25 million to resolve False Claims Act allegations involving illegal kickbacks and medically unnecessary laboratory testing, U.S. Attorney Philip R. Sellinger announced today.
RDx Bioscience Inc. (RDx), of Kenilworth, New Jersey, and its owner and chief executive officer, Eric Leykin, of Brooklyn, New York, agreed to pay the United States $10.32 million and will pay an additional $2.93 million to the state of New Jersey. RDx and Leykin have agreed to cooperate with the Department of Justice’s investigations of, and litigation against, other participants in the alleged schemes.
U.S. Attorney Philip R. Sellinger“Kickbacks have no place in our healthcare system. Patients need to trust that health care referrals are made in their best interests, not in the interests of lining someone else’s pockets. We have pursued and will continue to pursue laboratories that enter into unlawful financial arrangements that waste taxpayer dollars and improperly influence healthcare providers.”
“Regardless of how they are disguised, kickbacks for laboratory referrals are illegal and can corrupt medical providers’ decision making and subject patients to expensive and unnecessary testing,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will hold accountable individuals and entities who participate in kickback schemes that harm taxpayers and threaten the integrity of federal healthcare programs.”
“This settlement demonstrates our commitment to ensuring that health care providers are not permitted to induce referrals, thereby causing unnecessary medically testing,” Special Agent in Charge Naomi Gruchacz of the Department of Health and Human Services Office of Inspector General (HHS-OIG), said. “The defendants in this case disguised payments, which is a violation of the Anti-Kickback Statute.”
The Anti-Kickback Statute prohibits offering, paying, soliciting, or receiving remuneration to induce referrals of items or services covered by Medicare, Medicaid, and other federally funded healthcare programs. The Anti-Kickback Statute is intended to ensure that medical providers’ judgments are not compromised by improper financial incentives and are instead based on the best interests of their patients. Claims that are knowingly submitted in violation of the Anti-Kickback Statute are ineligible for payment and can violate the False Claims Act.
The settlement announced today resolves allegations concerning five types of kickbacks paid to induce referrals to RDx for laboratory testing:
- From 2018 to 2022, RDx and Leykin allegedly paid commissions based on the volume and value of Medicare and Medicaid referrals to independent contractor marketers to arrange for and recommend that healthcare providers order RDx laboratory tests.
- From 2018 to 2022, RDx marketer Corum Group LLC allegedly paid healthcare providers thousands of dollars in purported management services organization (MSO) payments, which were disguised as investment returns but actually were offered to induce the providers to order RDx laboratory tests.
- From 2017 to 2023, RDx marketers BeauMed Consultants LLC and Ralston Health Group Inc. allegedly paid thousands of dollars to healthcare providers that were disguised as consulting or medical director fees but were actually offered to induce orders, among other things, for RDx laboratory tests.
- From 2019 to 2020, RDx marketer Seaworthy Recovery Services Inc. allegedly paid thousands of dollars in kickbacks to one or more principals of certain substance abuse recovery centers to induce their referrals to RDx for laboratory testing.
- RDx and Leykin allegedly paid specimen collection fees to the staff members of referring healthcare providers to induce those providers to order RDx laboratory testing.
The settlement resolves allegations that RDx and Leykin billed or caused Medicare and Medicaid to be billed for the tests despite paying or knowing of these kickbacks.
In addition, from 2017 to 2023, RDx and Leykin allegedly submitted or caused false claims to be submitted to Medicare and Medicaid for laboratory tests that were not reasonable and necessary; not covered because they were identical orders of urine drug testing panels for all patients within a clinician’s practice without individualized decision-making; or not covered because they were improperly duplicative of other claims for urine drug testing for the same date of service, the same patient, and the same drugs.
The settlements were the result of a coordinated effort between the U.S. Attorney’s Office for the District of New Jersey and the Civil Division’s Commercial Litigation Branch, Fraud Section, with assistance from HHS-OIG.
The government is represented by Assistant U.S. Attorney Kruti Dharia of the U.S. Attorney’s Office, District of New Jersey, Opioid Abuse Prevention and Enforcement Unit and Senior Trial Counsel Christopher Terranova in the Civil Division’s Commercial Litigation Branch (Fraud Section).
The government’s pursuit of these matters illustrates the government’s emphasis on combating healthcare fraud. 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 the Department of Health and Human Services, at 1-800-HHS-TIPS (800-447-8477).
The claims resolved by the settlements are allegations only, and there has been no determination of liability.
rdx.settlement.pdfNew Jersey Laboratory and Its Owner and CEO Agree to Pay over $13 Million to Settle Allegations of Kickbacks and Unnecessary TestingRead the Press Release
Clinical laboratory RDx Bioscience Inc. (RDx), of Kenilworth, New Jersey, and its owner and Chief Executive Officer Eric Leykin, of Brooklyn, New York, have agreed to pay to the United States $10,315,023 to resolve False Claims Act allegations involving illegal kickbacks and medically unnecessary laboratory testing. RDx and Leykin will pay an additional $2,934,977 to the State of New Jersey, which jointly funded claims paid by the New Jersey Medicaid program. RDx and Leykin have agreed to cooperate with the Justice Department’s investigations of, and litigation against, other participants in the alleged schemes.
“Regardless of how they are disguised, kickbacks for laboratory referrals are illegal and can corrupt medical providers’ decision making and subject patients to expensive and unnecessary testing,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will hold accountable individuals and entities who participate in kickback schemes that harm taxpayers and threaten the integrity of federal healthcare programs.”
The Anti-Kickback Statute prohibits offering, paying, soliciting or receiving remuneration to induce referrals of items or services covered by Medicare, Medicaid and other federally funded healthcare programs. The Anti-Kickback Statute is intended to ensure that medical providers’ judgments are not compromised by improper financial incentives and are instead based on the best interests of their patients. Claims that are knowingly submitted in violation of the Anti-Kickback Statute are ineligible for payment and can violate the False Claims Act.
The settlement announced today resolves allegations concerning five types of kickbacks paid to induce referrals to RDx for laboratory testing. First, from 2018 to 2022, RDx and Leykin allegedly paid commissions based on the volume and value of Medicare and Medicaid referrals to independent contractor marketers to arrange for and recommend that healthcare providers order RDx laboratory tests. Second, from 2018 to 2022, RDx marketer Corum Group LLC allegedly paid healthcare providers thousands of dollars in purported management services organization (MSO) payments, which were disguised as investment returns but actually were offered to induce the providers to order RDx laboratory tests. Third, from 2017 to 2023, RDx marketers BeauMed Consultants LLC and Ralston Health Group Inc. allegedly paid thousands of dollars to healthcare providers that were disguised as consulting or medical director fees but were actually offered to induce orders, among other things, for RDx laboratory tests. Fourth, from 2019 to 2020, RDx marketer Seaworthy Recovery Services Inc. allegedly paid thousands of dollars in kickbacks to one or more principals of certain substance abuse recovery centers to induce their referrals to RDx for laboratory testing. Fifth, RDx and Leykin allegedly paid specimen collection fees to the staff members of referring healthcare providers to induce those providers to order RDx laboratory testing. The settlement resolves allegations that RDx and Leykin billed or caused Medicare and Medicaid to be billed for the tests despite paying or knowing of these kickbacks.
In addition, from 2017 to 2023, RDx and Leykin allegedly submitted or caused false claims to be submitted to Medicare and Medicaid for laboratory tests that were not reasonable and necessary; not covered because they were identical orders of urine drug testing panels for all patients within a clinician’s practice without individualized decision-making; or not covered because they were improperly duplicative of other claims for urine drug testing for the same date of service, the same patient, and the same drugs.
“Kickbacks have no place in our healthcare system,” said U.S. Attorney Phillip R. Sellinger for the District of New Jersey. “Patients need to trust that health care referrals are made in their best interests, not in the interests of lining someone else’s pockets. We have pursued and will continue to pursue laboratories that enter into unlawful financial arrangements that waste taxpayer dollars and improperly influence healthcare providers.”
“This settlement demonstrates our commitment to ensuring that health care providers are not permitted to induce referrals, thereby causing unnecessary medically testing,” said Special Agent in Charge Naomi Gruchacz of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “The defendants in this case disguised payments, which is a violation of the Anti-Kickback Statute.”
The settlement was the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch, Fraud Section and the U.S. Attorney’s Office for the District of New Jersey, with assistance from HHS-OIG.
Senior Trial Counsel Christopher Terranova of the Civil Division’s Commercial Litigation Branch, Fraud Section and Assistant U.S. Attorney Kruti Dharia for the District of New Jersey handled the settlement.
The United States has recovered over $46 million relating to conduct involving MSO kickbacks to healthcare providers, including False Claims Act settlements with 43 physicians, three laboratories, five medical practices, three healthcare executives and one office manager.
The government’s pursuit of these matters illustrates the government’s emphasis on combating healthcare fraud. 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 HHS at 1-800-HHS-TIPS (800-447-8477).
The claims resolved by the settlements are allegations only, and there has been no determination of liability.
SettlementNew Hampshire Man Pleads Guilty in Harvard University Bomb Extortion CaseRead the Press Release
BOSTON – A Manchester, N.H., man pleaded guilty today in federal court in Boston for a series of extortionate bomb threats against Harvard University. The extortionate threats caused the evacuation of Harvard’s Science Center Plaza and surrounding academic buildings, and the controlled detonation of what was later determined to be a hoax device on April 13, 2023.
William A. Giordani, 55, pleaded guilty to one count of concealing a federal felony. U.S. District Court Judge Angel Kelley scheduled sentencing for April 25, 2024. Giordani was initially arrested and charged by criminal complaint in May 2023 and subsequently indicted by a federal grand jury in June 2023.
In the early afternoon of April 13, 2023, Giordani placed a large tool bag, which concealed a locked safe containing fireworks and electrical wires, in the center of Harvard’s Science Center Plaza, where students and others had gathered. Shortly thereafter, a caller, using a voice changing app to conceal his identity, called the Harvard University Police Department (HUPD) and said that he had placed three bombs on the Harvard campus. The caller demanded an unspecified amount in Bitcoin to prevent the remote detonation of the bombs. In several ensuing calls, the caller told HUPD that he was serious about his demands and that they could find the first bomb in the Science Center Plaza.
HUPD discovered the device planted by Giordani, next to a bench in the center of Science Center Plaza and issued an emergency evacuation order of the area and nearby buildings. A responding bomb squad from the Cambridge Police Department assessed and disabled the device. No additional devices were found on campus that day.
A subsequent investigation revealed that Giordani had been recruited to join the extortion scheme via a craigslist.org advertisement. Once Giordani knew he had been recruited to assist in an extortionate bomb scheme, he had an obligation under federal law to report that scheme to law enforcement authorities. Instead, he deleted incriminating text messages, told his girlfriend not to speak to anyone about it and went on the run from police.
The charge of concealing a felony provides for a sentence of up to three years in prison and one year of supervised release. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation Boston Division; Harvard University Police Chief Victor Clay; and Cambridge Police Commissioner Christine Elow made the announcement. Assistance was provided by the Nashua (N.H.) Police Department. Assistant U.S. Attorney John T. McNeil of the National Security Unit is prosecuting the case.Multi-convicted felon sentenced to prison for committing numerous armed robberies while on federal supervised releaseRead the Press Release
MIAMI – On Jan. 9, a South Florida multi-convicted felon was sentenced to 324 months, followed by five years of supervised release, for convictions of armed bank robbery, armed credit union robbery, and brandishing a firearm during a crime of violence, while on federal supervised release.
On April 6, 2022, Javonne Wilks, 42, of Miami, Florida, and two co-conspirators entered a bank, in Cooper City, Florida, wearing dark colored skull hats, dark face masks and coveralls, and carrying an AR-15 style long gun and two handguns. Upon entering the lobby, Wilks and his co-conspirators approached two bank tellers who were behind the counter, jumped the counter, and demanded access to the cash drawers and vault. Wilks and his co-conspirators then forced two bank employees to lie face down on the ground at gunpoint. Wilks and his co-conspirators fled after stealing $242,113.
On June 6, 2023, Wilks and a co-conspirator entered a credit union, in Miami Springs, Florida, wearing sweatshirts, long pants, masks and bicycle helmets, and carrying a semiautomatic handgun and a revolver. Wilks and the co-conspirator entered the credit union waving their firearms and ordering the employees to go to the lobby. Wilks and the co-conspirator then ordered one of the tellers and the manager to open the vault at gunpoint and demanded money. After Wilks and his co-conspirator had placed the manager on his knees and patted him down, the teller complied and put money from the vault into Wilks and his co-conspirator’s duffel bag. Then, Wilks and his co-conspirator demanded more money, so another teller put additional money into the duffel bag. Wilks and the co-conspirator fled after stealing around $29,000. Later that day, law enforcement officers arrested Wilks. Inside of Wilks’s vehicle, law enforcement officers found about $11,395 in cash, three coveralls consistent with the ones worn during the bank robbery, and bait money (bills with known serial numbers that are used by banks to aid the tracing of bank robbers) from the credit union robbery.
In 2005, Wilks was sentenced to 212 months in federal prison, followed by five years of supervised release for possession with intent to distribute crack cocaine and possession of a firearm by a convicted felon. He was on federal supervised release when he committed the armed robberies.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida and Special Agent in Charge Jeffrey B. Veltri of FBI, Miami Field Office, announced the sentence imposed by U.S. District Judge Rodney Smith.
FBI Miami investigated the case with assistance from the Broward Sheriff’s Office, Miami Police Department, Miami-Dade Police Department, Miami Gardens Police Department, South Miami Police Department and Miami Springs Police Department. Assistant U.S. Attorney Ajay J. Alexander is prosecuting the case. Assistant U.S. Attorney Jorge Roberto Delgado is handling asset forfeiture.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 23-cr-60123.
###
Monroe Man Sentenced to Federal Prison for Receipt of Child PornographyRead the Press Release
MONROE, La. – United States Attorney Brandon B. Brown announced that Robert Scott Brown, Jr., 40, of Monroe, Louisiana, has been sentenced by United States District Judge Terry A. Doughty to 121 months in prison, followed by a lifetime of supervised release, for receipt of child pornography. Brown pleaded guilty to the charge on October 10, 2023.
In 2021, agents with the Child Exploitation Unit of the Federal Bureau of Investigation (FBI) began investigating individuals who were suspected of distributing and receiving child sexual abuse material over the internet through a peer-to-peer network. On or about February 1, 2022, in connection with this investigation, the FBI and Ouachita Parish Sheriff’s Office executed a search warrant at the apartment of Brown. Agents located and seized four hard drives from the apartment, and a subsequent search confirmed the hard drives contained child pornography. One of the images which was downloaded to the hard drive on or about January 31, 2021, was a 23-second video of a girl performing oral sex on an adult male.
A restitution hearing has been scheduled for April 3, 2024.
The case was investigated by the Federal Bureau of Investigation and Ouachita Parish Sheriff’s Office and prosecuted by Assistant United States Attorney Jessica D. Cassidy.
This case is part of Project Safe Childhood, a U.S. Department of Justice nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood combines 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.
# # #
Mexican men indicted for forging federal documents related to human smuggling schemeRead the Press Release
LAREDO, Texas – Two Mexican citizens illegally present in the United States have been taken into federal custody on charges relating to conspiracies to forge I-551 stamps as part of human smuggling activities, announced U.S. Attorney Alamdar S. Hamdani.
Juan Francisco Reyna-Robles, 52, is set to make an initial appearance Jan. 11 at 9:40 a.m. before U.S. Magistrate Judge Diana Song Quiroga.
Authorities previously arrested Eugolio Araus Ocampo, 49, who has already made his appearance in federal court.
According to the two-count indictment returned Dec. 12, 2023, Reyna-Robles and Ocampo engaged in conspiracies dating back to 2022 to forge and distribute I-551 stamps as part of a broader human smuggling scheme.
The Department of Homeland Security (DHS) issues “ADIT” or I-551 stamps on foreign passports as temporary evidence of permanent resident status. Such stamps can be used as proof of status for travel, identity verification and employment authorization, according to the charges.
If convicted, they face up to five years for immigration document fraud conspiracy and up to 10 years for human smuggling charges. They could also be ordered to pay hundreds of thousands in fines.
DHS-Office of the Inspector General led the multi-agency investigation with assistance from Customs and Border Protection - Office of Professional Responsibility, Border Patrol, Homeland Security Investigations, Webb County Constable’s Office – 2nd and 4th Precincts and the Laredo Police Department.
Special Assistant U.S. Attorney Terence A. Check Jr. is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Mexican National Sentenced to 18 Months for Transporting Heroin in 2019Read the Press Release
Orlando, Florida – U.S. District Judge Gregory A. Presnell today sentenced Denisse Munoz-Mora (31, Mexico) to 18 months in federal prison for possession with the intent to distribute heroin. Munoz-Mora had pleaded guilty on October 25, 2023. Munoz-Mora’s conspirator, Irving Cepeda-Chico, previously pleaded guilty and was sentenced in 2021 to 14 years in federal prison for engaging in distribution of heroin and fentanyl-laced heroin that resulted in a drug poisoning death.
According to court documents, Munoz-Mora worked with an individual using a Mexican-based phone number who arranged for Munoz-Mora to supply Cepeda-Chico with heroin. Munoz-Mora communicated with Cepeda-Chico and arranged to deliver 377 grams of heroin to him at a hotel near the Orlando International Airport on August 4, 2019. Munoz-Mora was subsequently detained and admitted that she was paid $3,000 to enter the United States from Mexico, meet an individual in California, receive drugs from that individual, and transport the heroin by concealing it while she flew to Orlando. Munoz-Mora stated that she had done so on at least one prior occasion. After she was indicted and a federal arrest warrant was issued, Munoz Mora was not found and apparently returned to Mexico.
In 2020, on the eve of Cepeda-Chico’s trial, Munoz-Mora emailed representatives of the United States Attorneys’ Office and DEA protesting the fairness of her being charged in the case, although she refused to turn herself in to a port of entry. In 2023, Munoz-Mora was again found crossing the border from Mexico and was arrested on the outstanding federal warrant.
This case was investigated by the Drug Enforcement Administration, with assistance from U.S. Customs and Border Patrol. It was prosecuted by Assistant United States Attorney Dana E. Hill.
- Media Advisory – U.S. Attorney to Host Human Trafficking Awareness Training in Southeast Raleigh
Maryland man sentenced for theft, trafficking of firearmsRead the Press Release
MARTINSBURG, WEST VIRGINIA – Richard Lee Tyndall, Jr., 45, of Brooklyn Park, Maryland, was sentenced to 60 months for a firearms trafficking conspiracy.
According to court documents and statements made in court, Tyndall stole 13 firearms from licensed firearms dealers in Mineral County. Tyndall pawned several of the stolen firearms and sold one to a confidential informant.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the West Virginia State Police investigated.
Assistant U.S. Attorney Lara Omps-Botteicher prosecuted the case on behalf of the government.
U.S. District Judge Gina M. Groh presided.
###
Maryland Man Pleads Guilty to Federal Arson Charge by Pouring Gasoline on Several Supreme Court VehiclesRead the Press Release
WASHINGTON – Cody Tarner, 26, of Hagerstown, Maryland, pleaded guilty on January 9, 2024, in federal court to Arson. U.S. District Court Judge Royce C. Lamberth scheduled a sentencing hearing for May 14, 2024.
The announcement was made by U.S. Attorney Matthew M. Graves, Acting Special Agent in Charge Michael O’Callaghan of the FBI Washington Field Office’s Counterterrorism Division, and Chief Pamela Smith of the Metropolitan Police Department (MPD).
According to the government’s evidence, on July 15, 2020, Tarner drove onto the United States Supreme Court’s property located on First Street Northeast, Washington D.C., and parked his vehicle in an employee only parking spot. The defendant got out of his car and walked around the Supreme Court property. Tarner then returned to his car and pulled out a red gas can. At approximately 1:48 p.m., Tarner was observed on security camera footage pouring gasoline onto three Supreme Court Police unmarked vehicles parked in Supreme Court employee only parking spaces. While pouring the gasoline on the vehicles, it was observed that some of the gasoline was splashing onto his person and clothing. The unmarked vehicles had emergency police lights visible from the outside of the vehicles, and one of the vehicles had emergency police lights on the roof of the vehicle. Tarner was then seen lighting one of the vehicles on fire resulting in a violent ignition of the gasoline. This action resulted in Tarner also being engulfed in the fire causing severe burns and injuries to himself. Tarner admitted to starting the fire with 87 octane unleaded gasoline he had purchased in Pennsylvania for that purpose. The investigation revealed that Tarner had several prior encounters with law enforcement in which he expressed anti-government and militia extremist ideologies. Tarner also claimed to be the leader of an identified militia group.
This case was investigated by FBI, Supreme Court of the United States Police – Protective Intelligence Unit, and Metropolitan Police Department. It was prosecuted by Assistant U.S. Attorneys Emory V. Cole and DOJ Attorney James Peterson.
Mansfield Man Charged in Fraudulent Tax Return ScamRead the Press Release
A Mansfield man has been charged with 33-counts of filing fraudulent tax returns, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
John Anthony Castro, 40, was indicted on thirty-three counts of aiding and assisting in the preparation and presentation of a false and fraudulent return. He made his initial appearance Tuesday before U.S. Magistrate Judge Hal R. Ray, Jr.
“Mr. Castro’s alleged crimes are stunning in their brazenness,” said U.S. Attorney Simonton. “The Department of Justice will continue to hold people accountable who steal from the federal government’s—and the American public’s—pockets.”
"This is precisely the type of conduct IRS Criminal Investigation and our law enforcement partners are committed to deterring,” said Tammy Tomlins, Special Agent in Charge of the Newark Field Office. “Today’s indictment sends a clear message, you will be held accountable, if you abuse our tax system for your personal financial gain.”
According to the indictment, Mr. Castro owned and operated Castro & Company LLC. a virtual tax preparation business with locations in Orlando, Florida, Mansfield, Texas, and Washington, D.C. Starting in 2016, Mr. Castro devised a scheme to falsely create and submit false tax returns on behalf of unsuspecting taxpayers. Taxpayers would seek out Castro’s assistance in filing personal tax returns and Mr. Castro would promise a significantly higher refund than taxpayers could receive from other prepares and on many occasions offered to split the additional refund with taxpayers. In order to achieve these larger refunds, Mr. Castro generated false deductions without the taxpayer’s knowledge.
In 2018, an undercover agent, posing as a taxpayer, contacted Castro & Company, LLC for assistance. Castro refused to meet in person unless a $5,000 retainer was paid but offered to assist the undercover agent virtually. During a recorded telephone conversation, Mr. Castro stated that he could project the amount of the tax refund the undercover agent would likely receive from another firm and then compare that figure with the refund that Mr. Castro would obtain.
According to the indictment, an employee of Mr. Castro’s interviewed the agent over the telephone regarding deductions. The employee stated that Mr. Castro would make any decisions regarding what items would be included on the tax filing. The employee did not identify any deductions that would apply to the agent and in the course of the interview, the undercover agent denied any facts that would support deductions. On March 14, 2018, Mr. Castro filed the agent’s tax return claiming $29,339 in fraudulent deductions. The IRS issued a refund of $6,007, Mr. Castro received $2,999 for his services and the agent received the remaining amount of $3,008. As Castro told the taxpayer, he would have received only a $300 deduction had he used another tax preparer.
Mr. Castro continued in a similar pattern with dozens of other taxpayers, resulting in hundreds of thousands of improperly paid claims.
An indictment is merely an allegation of criminal conduct, not evidence. Mr. Castro is presumed innocent until proven guilty in a court of law.
If convicted on all counts, he faces up to 99 years in federal prison – 3 years per count.
The Internal Revenue Service, Criminal Investigation conducted the investigation. Assistant U.S. Attorney P.J. Meitl is prosecuting the case.
Man Found with Methamphetamine Hidden Under Car Hood Sentenced to Fourteen Years in Federal PrisonRead the Press Release
A man who committed a drug trafficking offense was sentenced on January 10, 2024, to fourteen years in federal prison for possessing large quantities of methamphetamine.
Cody James Darland Heinrichs, age 34, from Newton, Iowa, received the prison term after an August 1, 2023 guilty plea to one count of possession with intent to distribute a controlled substance.
After Heinrichs was traffic stopped by police in Waterloo, Iowa, they located over 1,200 grams of methamphetamine hidden under the hood of his vehicle and $2,000 on his person.
Heinrichs was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Heinrichs was sentenced to 168 months’ imprisonment. He must also serve a five-year term of supervised release after the prison term. There is no parole in the federal system.
Heinrichs is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Nicole L. Nagin, and it was investigated by the Federal Bureau of Investigation, the Tri-County Drug Enforcement Task Force, the Iowa Division of Narcotics Enforcement, and the Black Hawk County Sherriff’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 23-CR- 2017.
Follow us on Twitter @USAO_NDIA.
Justice Department, Local Law Enforcement Partner to Fight Firearm TheftRead the Press Release
SAN ANTONIO – The U.S. Attorney’s Office for the Western District of Texas is partnering with Bexar County and San Antonio law enforcement to urge residents to properly secure their firearms when they’re not in use.
According to data, more than 25,000 firearms have been stolen from vehicles across Texas’ four largest cities—Austin, Dallas-Fort Worth, Houston and San Antonio—over the past three years. In 2023, 3,146 firearms were stolen in San Antonio alone.
In many cases, investigators find that weapons used in violent crimes are those stolen from law-abiding gun owners. In August, two San Antonio police officers were injured, one of whom lost an eye, during their pursuit of a man wanted on three warrants. The gun used by the suspect against the officers turned out to be one of many that were stolen from a vehicle parked overnight outside a hotel. Stolen firearms have also been recovered from the scenes of other shootings, robberies, and murders.
Maps highlighting the areas where gun thefts are most common in Bexar County show that retail parking lots on the northwest side of San Antonio, as well as parts of Alamo Ranch, are hot spots for activity.
It takes a thief less than 15 seconds to break into a vehicle and steal a gun. While it’s common for gun owners to leave their firearms unsecured under a vehicle seat or in an unlocked compartment, legitimate gun safes concealed and fixed to the inside of a vehicle can assist in the prevention of theft.
“Leaving a firearm unsecured in your vehicle is not just negligence. It’s an open invitation to chaos and every responsible gun owner must recognize that,” said U.S. Attorney Jaime Esparza for the Western District of Texas. “Don’t make it any easier for criminals. Carry with a plan and understand that a locked car is not a locked safe.”
“We have seen a dramatic increase in the number of guns stolen from vehicles in Bexar County in the last year,” said Bexar County District Attorney Joe Gonzales. “When a gun is stolen from a gun owner who leaves it in a vehicle, that same weapon can be used in another crime that causes serious injury or death. Please take your gun with you whenever possible or secure it in a gun safe and never leave your weapon in your vehicle overnight.”
“The fact that criminal organizations have now prioritized stealing firearms left in unsecured vehicles, has increasingly become a threat to public safety nationwide,” said Bexar County Sheriff Javier Salazar. “Responsible gun ownership can decidedly reduce violent crime alone, but more importantly eliminate the opportunity of illegal weapons falling into the hands of violent criminals.”
“I’ve been to many shooting scenes. They’re terrible scenes,” said Chief William McManus for the San Antonio Police Department. “When I learn that the weapon used was stolen, it’s frustrating because it takes single responsible action to make sure the gun doesn’t get into the hands of the wrong person.”
In November, the DOJ named San Antonio as one of five new cities in its National Public Safety Partnership (PSP) program. PSP is managed by the Office of Justice Program’s (OJP) Bureau of Justice Assistance (BJA) and has a proven track record of helping partner sites reduce crime, improve homicide clearance rates, and enhance the quality of life for community members.
In addition to combatting gun violence, PSP brings opportunities over a three-year span to broaden federal partnerships and create task forces, develop innovative technological solutions, enhance crime analysis capabilities, further community engagement, and more. The DOJ is committed to advancing work that promotes civil rights, increases access to justice, supports crime victims, protects the public from crime and evolving threats, and builds trust between law enforcement and the community. The PSP initiative supports and advances the DOJ’s principles in all of its activities.
###
Justice Department Releases New Guide on the Use of Specialized Units in Law Enforcement AgenciesRead the Press Release
WASHINGTON, D.C. – Today, Associate Attorney General Vanita Gupta announced the release of a new publication, Considerations for Specialized Units: A Guide for State and Local Law Enforcement Agencies to Ensure Appropriateness, Effectiveness, and Accountability, commissioned in the wake of the killing of Tyre Nichols and amid mounting public concern over the use of specialized units in police agencies. The guide is designed to support law enforcement agencies and communities across the country as they assess the appropriateness of the use of specialized units, and, where units are deemed appropriate, ensure the necessary management and oversight of such units to advance effective and just policing practices.
The guide is the result of a series of convenings, roundtable discussions, and interviews with law enforcement, civil rights organizations, and other stakeholders, led by the Department’s Office of Community Oriented Policing Services (COPS Office) and the National Policing Institute (NPI). It provides law enforcement leaders, mayors, and community members with actionable considerations for the formation, management, and accountability of specialized units.
“After the tragic death of Tyre Nichols and public scrutiny of the SCORPION unit, we made it a priority at the Justice Department to develop a practical resource for law enforcement and community leaders assessing the use of specialized units in police agencies,” said Associate Attorney General Gupta. “We hope that police chiefs, mayors, and community stakeholders will use the guide when considering whether a specialized unit should be formed to focus on a particular problem, and, if formed, how to ensure proper transparency, oversight, accountability, and evaluation of such units. The Justice Department is grateful for the engagement of law enforcement and community stakeholders that helped make this vital resource a reality.”
The guide looks at four main stages of specialized units: (1) formation, (2) personnel selection and supervision, (3) management and accountability, and (4) community engagement. Each section of the guide offers key considerations for agencies as they are creating or reviewing their own specialized units. If law enforcement and the community determine that a law enforcement response is required to address a problem and that standard patrol units are unable to effectively address the concern, this publication offers actionable guidance for defining the specialized unit’s mission and culture, hiring the most suitable personnel and supervisors, developing innovative unit and personnel performance metrics, and establishing policies and practices to mitigate the risks of specialized units.
“This guide is based on input from representatives from law enforcement, the community, academic institutions, and advocacy organizations across the country,” said Director of the COPS Office Hugh T. Clements, Jr. “I feel confident this guide will help both law enforcement and the communities they serve to demonstrate and uphold the principles of effective, constitutional policing.”
The report is available at www.portal.cops.usdoj.gov/resourcecenter?item=cops-r1140.
Jury Finds Virginia Man Guilty of First-Degree Burglary in Northwest WashingtonRead the Press Release
WASHINGTON – James Miller, 41, of Virginia, has been found guilty by a jury of first-degree burglary, simple assault, and destruction of property in a break-in that took place in Northwest Washington in the middle of the night, announced U.S. Attorney Matthew Graves and Chief Pamela Smith, of the Metropolitan Police Department (MPD).
The verdict was returned on January 10, 2024, following a trial in the Superior Court of the District of Columbia. The Honorable Judge Robert A. Salerno scheduled sentencing for March 8, 2024.
According to the government’s evidence, on September 19, 2023, at approximately 1:42 a.m., Miller broke into his pregnant ex-wife’s home by breaking through the front door. Immediately upon breaking into her home, the defendant charged at his ex-wife and assaulted her by grabbing her by the throat and throwing her to the ground. After she got back up, the defendant grabbed her by her bathrobe and threw her onto the couch. The victim and her 22-year-old-daughter (who witnessed Mr. Miller standing over her mother) called 911. Police arrived quickly at 1:49 a.m. and arrested Miller on scene.
This case was investigated by the Metropolitan Police Department and the U.S. Attorney’s Office for the District of Columbia. It is being prosecuted by Assistant U.S. Attorneys Callie Hyde and Matthew Covert.
Jury Convicts Hannibal Man of Gun, Drug CrimesRead the Press Release
ST. LOUIS – A jury in U.S. District Court in St. Louis on Tuesday found a man from Hannibal, Missouri guilty of a methamphetamine offense and two gun crimes.
At the end of the second day of his trial, Justin Fuget, 35, was found guilty of three felony counts: being a felon in possession of a firearm, possession with the intent to distribute 50 grams or more of a mixture or substance containing methamphetamine and possession a firearm in furtherance of a drug trafficking crime.
According to evidence and testimony during the trial, officers with the Hannibal Police Department made a traffic stop on March 25, 2022 and spotted a large safe on the passenger seat of Fuget’s vehicle. Fuget also appeared nervous. A drug-sniffing dog alerted to the vehicle, and police then found a firearm between the driver’s seat and the center console. Fuget is a felon and is thus barred from possession of a firearm.
During a subsequent court-approved search of the safe, officers found meth, drug paraphernalia and ammunition. They also found text messages on Fuget’s phone that indicated that he was distributing meth.
Fuget is scheduled to be sentenced April 9. He faces at least 10 years in prison for his crimes.
The Hannibal Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Drug Enforcement Administration investigated the case. Assistant U.S. Attorneys Catherine Hoag and Paul D’Agrosa are prosecuting the case.
Independence Woman Pleads Guilty to Stealing $500,000 from EmployerRead the Press Release
KANSAS CITY, Mo. – An Independence, Mo., woman pleaded guilty in federal court today to stealing more than $500,000 from her employer.
Tammy Myers, 50, waived her right to a grand jury and pleaded guilty before U.S. District Judge Howard F. Sachs to a federal information that charges her with one count of wire fraud.
Myers was employed by Builders Overhead Door Service, Inc., in Blue Springs, Mo., from 1998 through 2022. Myers, who became the head of accounting in 2012, admitted that she engaged in a scheme to defraud Builders Overhead Door Service from January 2013 to December 2022.
Myers admitted she used the company’s bank account information to pay off the balances on her personal credit cards, totaling $429,025.
In addition to paying her personal credit cards, Myers admitted she wrote checks to herself from the company’s bank account without the authorization of the owner. Myers deposited the unauthorized checks, which had been pre-signed by the owner, into her personal bank account and spent that money on personal expenses. The total amount of unauthorized checks she wrote to herself was $86,477.
Under the terms of today’s plea agreement, Myers must pay $521,996 in restitution to Builders Overhead Door Service, which represents the total loss she caused and includes loss attributable to related criminal activity. Myers must also pay a money judgment to the government of $429,025.
Myers also admitted that while she was using company funds to pay her personal credit cards and writing checks to herself, she let the company fall behind on payroll, real estate, and sales and use taxes.
Under federal statutes, Myers is subject to a sentence of up to 20 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Special Assistant U.S. Attorney Bradley Cooper. It was investigated by the FBI.
Illegal possession of firearm sends Billings felon to prison for 16 monthsRead the Press Release
BILLINGS — A Billings felon who admitted to illegally possessing a rifle after fleeing law enforcement was sentenced today to 16 months in prison, to be followed by three years of supervised release, U.S. Attorney Jesse Laslovich said.
Devin Miranda American Horse, 34, pleaded guilty in August 2023 to prohibited person in possession of a firearm.
U.S. District Judge Susan P. Watters presided.
The government alleged in court documents that in February 2023, while conducting routine night patrol, a Billings police officer saw four or five people sitting in a car outside of a residence. Before the officer made any contact, the driver got out and fled. The officer chased but did not catch the driver. As he ran by the car, the officer recognized American Horse as the front seat passenger. The car fled the scene and was stopped a short time later. The only remaining occupant, who was the owner and now driver, told officers that American Horse had fled with a rifle. Police found American Horse hiding in some bushes and a rifle nearby. American Horse was arrested on a parole violation for a 2019 felony drug conviction in Yellowstone County. She was prohibited from possessing firearms.
Assistant U.S. Attorney Lori Harper Suek prosecuted the case. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Billings Police Department conducted the investigation.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
XXX
Hudson County Man Admits Possessing Child Pornography and Committing Naturalization FraudRead the Press Release
NEWARK, N.J. – A Hudson County, New Jersey, man today admitted possessing images of child sexual abuse and committing naturalization fraud, U.S. Attorney Philip R. Sellinger announced.
Ramy Mercado, 29, of Jersey City, New Jersey, pleaded guilty before Judge Claire C. Cecchi to an information charging him with one count of possession of child pornography and one count of naturalization fraud.
According to documents filed in this case and statements made in court:
From June 2022 to October 2022, Mercado used his cell phone to transmit more than 20 video files depicting the sexual abuse of minors, including infants or toddlers. Mercado also used his cell phone to communicate his desire for sexual encounters with young children.
During this time, Mercado applied for and obtained U.S. citizenship and stated under penalty of perjury that since his citizenship interview, he had not committed any crime or offense for which he had not been arrested. In fact, Mercado had illegally possessed child pornography. Mercado became a naturalized U.S. citizen on June 22, 2023.
The count of possession of child pornography carries a maximum penalty of 20 years in prison, and a fine of $250,000. The count of naturalization fraud carries a maximum penalty of 10 years in prison, and a fine of $250,000. Sentencing is scheduled for May 22, 2024.
U.S. Attorney Sellinger credited special agents of Homeland Security Investigations Newark, under the direction of Acting Special Agent in Charge Michael Alfonso, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Matthew Specht of the Opioid Abuse Prevention and Enforcement Unit in Newark.
mercado.information_0.pdfHouston man sentenced to federal prison for Beaumont bank robberyRead the Press Release
BEAUMONT, Texas– A Houston man has been sentenced to federal prison for bank robbery in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs.
Michael Raymond Karras, 65, pleaded guilty to bank robbery and was sentenced to 188 months in federal prison by U.S. District Judge Marcia Crone on Jan. 9, 2024.
According to information presented in court, on June 6, 2023, Karras robbed the Chase Bank on Eastex Freeway in Beaumont. Within minutes of the robbery, Karras was located at a convenience store wearing a trench coat and driving the vehicle described in the robbery. After detaining Karras and obtaining consent to search his vehicle, officers discovered $2,870.00 in cash and the handwritten note Karras had used in the robbery.
This case was investigated by the Beaumont Police Department and the FBI and prosecuted by Assistant U.S. Attorney Joseph R. Batte.
# # #
Honduran National Sentenced for Illegal Use of a Social Security NumberRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that JOSE CASTRON MURCIA, age 22, of Honduras, was sentenced today by the Honorable Greg G. Guidry, U.S. District Judge, Eastern District of Louisiana, for unauthorized use of a social security number.
According to documents filed in federal court, the defendant unlawfully used a social security account number belonging to another individual to complete documents necessary to maintain employment with a local business. The defendant was sentenced to one year of probation and ordered to pay a special assessment of one hundred dollars.
U.S. Attorney Evans praised the work of the Department of Homeland Security in investigating this matter. Assistant United States Attorney Richard R. Pickens, II is in charge of the prosecution.
Harrisburg Man and Woman Sentenced to Prison for Conspiring to Steal Cell Phone ShipmentsRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Parmod Kumar, age 41, and Reecha Saini, age 36, both of Harrisburg, Pennsylvania, were sentenced today by U.S. District Court Judge Sylvia H. Rambo for conspiring to steal interstate shipments of cell phones. The Court sentenced Kumar to 12 months’ imprisonment and Saini to 8 months’ imprisonment. The Court also ordered that Kumar and Saini pay over $142,000 in restitution.
According to United States Attorney Gerard M. Karam, Kumar and Saini previously admitted that from 2018 to 2021, they enlisted employees at a UPS facility in Harrisburg to steal packages that they believed contained smartphones. Kumar and Saini then paid the employees for the phones and arranged for their sale at a convenience store in Harrisburg. The stolen phones had a total value of over $142,000.
The case was investigated by Homeland Security Investigations and the Swatara Township Police Department. Assistant U.S. Attorney Carlo D. Marchioli prosecuted the case.
# # #Grand Jury Returns Five IndictmentsRead the Press Release
MADISON, WIS. - A federal grand jury in the Western District of Wisconsin, sitting in Madison, returned the following indictments today. You are advised that a charge is merely an accusation and a person named as defendant in an indictment is presumed innocent unless and until proven guilty.
Wisconsin Man Charged with Possessing Destructive Devices
James Morgan, 30, Janesville, Wisconsin, is charged with unlawfully possessing destructive devices. The indictment alleges that Morgan possessed the devices on December 21, 2023.
If convicted, Morgan faces a maximum penalty of 10 years in federal prison. The charge against him is the result of an investigation by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Janesville and Whitewater Police Departments.
Assistant U.S. Attorney Meredith Duchemin for the Western District of Wisconsin, Assistant U.S. Attorney John Scully for the Eastern District of Wisconsin, and Trial Attorney Justin Sher of the Justice Department’s National Security Division’s Counterterrorism Section are prosecuting the case.
Illinois Man Charged with Drug Crimes
Jerry Tate, a/k/a/ “Blue,” 51, Waukegan, Illinois, is charged with drug crimes involving fentanyl and methamphetamine. The indictment alleges that between September 22, 2022 and May 4, 2023, Tate distributed fentanyl on four occasions and distributed a mixture or substance containing fentanyl and methamphetamine on one occasion. The indictment further alleges that on May 5, 2023, Tate possessed 50 grams or more of a mixture or substance containing fentanyl and methamphetamine with intent to distribute.
If convicted, Tate faces a mandatory minimum penalty of 5 years and a maximum of 40 years in federal prison on the charge of possessing 50 grams or more of fentanyl and methamphetamine for distribution. He faces maximum penalties of 20 years on each of the distribution charges.
The charges against Tate are the result of an investigation by the La Crosse, Campbell, and Onalaska Police Departments. Assistant U.S. Attorney Steven Ayala is handling the case.
Eau Claire Man Charged with Distributing Methamphetamine
Joshua Reedy, 30, Eau Claire, Wisconsin, is charged with distributing methamphetamine and possessing methamphetamine with intent to distribute. The indictment alleges that Reedy distributed methamphetamine on September 28, 2023 and October 2, 2023. The indictment also alleges that on October 4, 2023, Reedy distributed methamphetamine and possessed 50 grams or more of methamphetamine with intent to distribute.
If convicted, Reedy faces a mandatory minimum penalty of 5 years and a maximum of 40 years in federal prison on the charge of possessing with intent to distribute 50 grams or more of methamphetamine. He faces maximum penalties of 20 years on each distribution charge.
The charges against Reedy are the result of an investigation by the West Central Drug Task Force, Chippewa County Sheriff’s Department, Wisconsin Department of Justice Division of Criminal Investigation, Eau Claire Police Department, Clark County Sheriff’s Office, Eau Claire Sheriff’s Department, and the Drug Enforcement Administration. Assistant U.S. Attorney Jennifer Remington is prosecuting the case.
Janesville Man Charged with Distributing Cocaine and Possessing Firearms as A Felon
Taiwan R. Edwards, 28, Janesville, Wisconsin, is charged with distributing cocaine, possessing cocaine for distribution, and possessing firearms as a felon. The indictment alleges that Edwards distributed cocaine on August 29, 2023 and September 15, 2023. The indictment also alleges that Edwards possessed 500 grams or more of cocaine with intent to distribute on October 4, 2023. Finally, the indictment alleges that on October 4, 2023, Edwards possessed four firearms as a felon.
If convicted, Edwards faces a mandatory minimum penalty of 5 years and a maximum of 40 years in federal prison on the charge of possessing 500 grams or more of cocaine for distribution, a maximum of 20 years on the cocaine distribution charges, and a maximum of 15 years for possessing firearms as a felon.
The charges against Edwards are the result of an investigation by Janesville Police Department, Wisconsin Department of Justice Division of Criminal Investigation, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Megan Stelljes is handling the case.
Madison Man Charged with Drug and Gun Crimes
Joseph P. Rehbein, 32, Madison, Wisconsin, is charged with possessing methamphetamine for distribution and possessing a firearm as a felon. The indictment alleges that Rehbein possessed 50 grams or more of methamphetamine with intent to distribute on August 3, 2023. The indictment also alleges that Rehbein possessed a loaded 9 mm handgun the same day.
If convicted, Rehbein faces a mandatory minimum of 5 years and a maximum of 40 years in federal prison on the charge alleging possession with intent to distribute 50 or more grams of methamphetamine. The charge of being a felon in possession of a firearm has a maximum penalty of 15 years in federal prison.
The charges against Rehbein are the result of an investigation by the Madison Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney William Levins is handling the prosecution.
The cases against Rehbein and Edwards have been brought as part of Project Safe Neighborhoods (PSN), the U.S. Justice Department’s program to reduce violent crime. The PSN approach emphasizes coordination between state and federal prosecutors and all levels of law enforcement to address gun crime, especially felons illegally possessing firearms and ammunition and violent and drug crimes that involve the use of firearms.
# # # #
Fort Wayne Man Sentenced to 120 Months in PrisonRead the Press Release
FORT WAYNE –Tharren Caldwell, 32 years old, of Fort Wayne, Indiana, was sentenced by United States District Court Chief Judge Holly A. Brady after pleading guilty to distributing methamphetamine, announced United States Attorney Clifford D. Johnson.
Caldwell was sentenced to 120 months in prison, 3 years of supervised release and ordered to pay $2800 in restitution.
According to documents in the case, in late 2020, Caldwell sold methamphetamine on two occasions and then attempted to sell eight ounces of methamphetamine to an undercover officer.
This case was investigated by the Drug Enforcement Administration, with the assistance of the Fort Wayne Police Department, the Allen County Police Department, and the Drug Enforcement Administration Laboratory. The case was prosecuted by Assistant United States Attorney Stacey R. Speith.
Former Pennsylvania Resident Pleads Guilty to Possessing with Intent to Distribute Illegal DrugsRead the Press Release
PITTSBURGH, PA – Jamir Hughes was convicted of possessing trans-3-methylfentanyl, cis-3-methylfentanyl, and cocaine with intent to distribute, United States Attorney Eric G. Olshan announced today.
Hughes, age 23, formerly of Delaware County (Pennsylvania), pleaded guilty before United States District Judge Robert J. Colville. Judge Colville scheduled sentencing to occur on May 8, 2024, at 10:00 a.m.
In connection with the guilty plea, the Court was advised that, on May 27, 2020, Hughes possessed 17 grams of a mixture of trans-3-methylfentanyl and cis-3-methylfentanyl and 115 grams of cocaine in a car that was traveling on the Pennsylvania Turnpike in Somerset County.
Hughes was on his way from the Philadelphia area to Butler in Butler County. Hughes intended to distribute the controlled substances after arriving in Butler. Hughes, however, did not make it to Butler because the Pennsylvania State Police stopped the car in Somerset County and thereafter seized the controlled substances.
The law provides for a sentence of at least 5 years up to 40 years in prison, a fine of up to $5,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Craig W. Haller is prosecuting this case on behalf of the United States.
The Pennsylvania State Police, the Federal Bureau of Investigation, and the Butler County District Attorney’s Drug Task Force led the investigation leading to the conviction in this case.
Former Detention Officer Pleads Guilty to Abusive Sexual Contact with Federal InmateRead the Press Release
OKLAHOMA CITY – Yesterday, LAMARCUS DEWAYNE EDWARDS, 35, of Houston, Texas, pleaded guilty to engaging in abusive sexual contact with a federal inmate while working at a correctional facility housing federal inmates, announced U.S. Attorney Robert J. Troester.
On January 2, 2024, Edwards was charged by Superseding Information with engaging in abusive sexual contact. The Superseding Information alleges that Edwards worked as a detention officer at Cimmarron Correctional Facility, which was under contract with the United States Marshals Service to house federal inmates. The Superseding Information further alleges that on June 18, 2023, Edwards engaged in sexual contact with an inmate, despite having authority over her.
Yesterday, Edwards pleaded guilty and admitted to having sexual contact with an inmate over whom he had supervisory and disciplinary authority. At sentencing, Edwards faces up to two years in federal prison and a fine of up to $250,000.
This case is the result of an investigation by the Department of Justice Office of the Inspector General. Assistant U.S. Attorney Tiffany Edgmon is prosecuting the case.
Reference is made to public filings for additional information.
Florida Man Pleads Guilty to Defrauding Small Business Administration to Obtain COVID Relief Loan while in Federal CustodyRead the Press Release
OKLAHOMA CITY – Today, ADONIJAH LINDSAY, 38, of Miami, Florida, pleaded guilty to two counts of wire fraud, announced U.S. Attorney Robert J. Troester.
On August 16, 2023, a federal grand jury returned an Indictment, which charged Lindsay with two counts of wire fraud. According to the Indictment, on June 24, 2020, Lindsay applied to the Small Business Administration (SBA) for an Economic Injury Disaster Loan (EIDL), which provided loans to small businesses affected by the COVID-19 pandemic. The Indictment alleges that in his loan application, Lindsay claimed to own a business with revenue of more than $200,000 in 2019. In fact, Lindsay did not own a business. The Indictment explains that Lindsay spent most of 2019 incarcerated in federal prison and applied for the loan while in a Bureau of Prisons residential reentry center in Florida. Based on his false statements, Lindsay’s application was approved by the SBA, and $74,000 was disbursed to a banking account in Enid, Oklahoma in June 2020.
Today, Lindsay pleaded guilty to the Indictment, and admitted he provided false information to defraud the SBA. At sentencing, he faces up to 30 years in federal prison and a fine of up to $1,000,000.
This case is the result of an investigation by the Pandemic Response Accountability Committee (PRAC). The PRAC was established to promote transparency and facilitate coordinated oversight of the federal government’s COVID-19 pandemic response. The PRAC’s 20-member Inspectors General identify major risks that cross program and agency boundaries to detect fraud, waste, abuse, and mismanagement in the more than $5 trillion in COVID-19 spending, including spending via the Paycheck Protection Program and EIDL program. The PRAC’s Pandemic Analytics Center of Excellence applies the latest advances in analytic and forensic technologies to help OIGs and law enforcement pursue data-driven pandemic relief fraud investigations.
Assistant U.S. Attorney D.H. Dilbeck is prosecuting the case.
Reference is made to public filings for additional information.
Fifth Defendant to Be Arraigned for Allegedly Conspiring to Rob ATMs in Illinois, Indiana, and IowaRead the Press Release
CHICAGO — A fifth defendant will be arraigned today in Chicago on federal charges of conspiring with four others to rob automated teller machines in Illinois, Indiana, and Iowa.
The robbers often used chains connecting the ATMs to stolen pickup trucks to break into the machines and steal cash, according to an indictment returned in U.S. District Court in Chicago. After the heists, the robbers abandoned the trucks and fled in another vehicle, the indictment states. One of the pickup trucks was stolen from an auto dealership in Portage, Ind., and some of the chains and other materials used in the robberies were obtained from a hardware store in Burbank, Ill., according to the indictment.
The indictment identifies eight ATMs allegedly robbed as part of the conspiracy:
- March 12, 2022: First Source Bank ATM in Portage, Ind.
- March 23, 2022: Inland Bank ATM in Countryside, Ill.
- March 25, 2022: Parkway Bank ATM in Glen Ellyn, Ill.
- March 30, 2022: Grundy National Bank ATM in Conrad, Iowa.
- April 1, 2022: First State Bank ATM in Lynnville, Iowa.
- April 1, 2022: First Central State Bank ATM in LeClaire, Iowa.
- April 2, 2022: Solon State Bank ATM in Tiffin, Iowa.
- April 3, 2022: Resource Bank ATM in Hinckley, Iowa.
Charged with conspiracy to commit robbery are DANNY ROLAND, 27, of Missouri City, Texas, BRYCE JONES, 26, of Webster, Texas, CHANDLER WILLIAMS, 27, of Missouri City, Texas, DAQUAN BENS, 29, of Houston, Texas, and TRISTIAN MILLER, 27, of Stafford, Texas.
Miller was arrested last month in Houston, Texas. He is scheduled to be arraigned today at 2:00 p.m. before U.S. Magistrate Judge Sunil R. Harjani in Chicago. The four other defendants have pleaded not guilty and are awaiting trial.
The charges were announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI, and Douglas A. Williams, Jr., Special Agent-in-Charge of the Houston Field Office of the FBI. Substantial assistance in this investigation has been provided by the Countryside, Ill. Police Department, DuPage County, Ill. Sheriff’s Office, DeKalb County, Ill. Sheriff’s Office, Portage, Ind. Police Department, LeClaire, Iowa Police Department, Bettendorf, Iowa Police Department, Johnson County, Iowa Sheriff’s Office, Grundy County, Iowa Sheriff’s Office, Jasper County, Iowa Sheriff’s Office, and the Houston, Texas Police Department. The government is represented by Assistant U.S. Attorney Megan DeMarco.
The public is reminded that an indictment is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Roland et al indictmentFentanyl and Cocaine Trafficker Sentenced to Nearly 12 YearsRead the Press Release
BOISE – Peter Timothy Eromenok, 34, of Idaho Falls, was sentenced to nearly 12 years in federal prison for possession with intent to distribute fentanyl and cocaine, U.S. Attorney Josh Hurwit announced today.
According to court records, Eromenok was interviewed by investigators on May 9, 2022, about suspected fentanyl left behind at an Airbnb. During his interview, he admitted to possessing between 10,000 and 15,000 fentanyl pills in his room at a relative’s house in New Plymouth, Idaho. Investigators searched this residence and found 1,419 grams of fentanyl in pill form (approximately 14,000 fentanyl pills) and more than a half-pound of cocaine.
On May 24, 2022, investigators again encountered Eromenok and found 71.1 grams of fentanyl in pill form (approximately 710 fentanyl pills) and 35.2 grams of methamphetamine in his vehicle.
“Unfortunately, we are seeing significant amounts of fentanyl on our streets and, in this case, left dangerously behind in an Airbnb,” said U.S. Attorney Hurwit. “But we are also seeing law enforcement rise to the challenge and seize larger and larger amounts of fentanyl. And we stand ready to bring to justice anyone who would distribute this poisonous drug in Idaho.”
On January 9, 2024, Chief U.S. District Judge David C. Nye sentenced Eromenok to 140 months in federal prison followed by five years of supervised release.
U.S. Attorney Hurwit commended the investigations by the Drug Enforcement Administration, the Nampa Police Department, and the Malheur County Sheriff’s Office, which led to the charges. Assistant U.S. Attorney David Morse prosecuted the case.
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.
###
Federal Officer Charged with Stealing Cash from Airline Passenger at Naples AirportRead the Press Release
Fort Myers, Florida – United States Attorney Roger B. Handberg announces the arrest and filing of a criminal complaint charging William Joseph Timothy (43, Naples), a U.S. Customs and Border Protection Officer (CBP), with stealing cash from an international airline passenger during the course of his employment as a CBP Officer at Naples Airport. If convicted, Timothy faces a maximum penalty of 10 years in federal prison.
According to court documents, after an international airline passenger reported that more than $2,000 in cash was missing after it had been inspected by a CBP officer at Naples Airport, an investigation was undertaken by agents from CBP’s Office of Professional Responsibility. During the investigation, surveillance video was examined which showed Timothy hiding and taking approximately 22 bills of U.S. currency belonging to the airline passenger during a border enforcement examination in May 2023.
A criminal complaint is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case is being investigated by U.S. Customs and Protection’s Office of Professional Responsibility. It is being prosecuted by Assistant United States Attorney Simon R. Eth.
If you believe you have also been a victim of such a theft from the Naples Airport, please contact the CBP Joint Intake Center at (877) 246-8253 or jointintake@cbp.dhs.gov.
Download Criminal ComplaintFederal Jury Finds St. Albans Man Guilty of Fentanyl TraffickingRead the Press Release
BANGOR, Maine: A St. Albans man was found guilty this week of conspiring to distribute and possess controlled substances. The verdict came after a two-day jury trial in U.S. District Court in Bangor with Judge Lance E. Walker presiding.
According to evidence presented at trial, between June 2017 and February 2018, Adam Johnson, 32, participated in a conspiracy to traffic fentanyl in central Maine. Johnson would travel out of state to meet the source and pick up fentanyl that he would then bring back to Maine to package and sell to dealers. The amount of fentanyl exceeded 400 grams. Just 2 milligrams of fentanyl is a potentially lethal dose.
Johnson faces a minimum of 10 years and up to life in prison followed by five years to life of supervised release and a fine of up to $10 million. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The U.S. Drug Enforcement Administration (DEA); Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); and Somerset County Sheriff’s Office investigated the case.
###
Federal Jury Convicts Tennessee Man for Armed Bank Robbery in AshevilleRead the Press Release
ASHEVILLE, N.C. – A federal jury has convicted Paul Gordon Day, 36, of Brentwood, Tennessee, for the armed robbery of a bank in Asheville, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Robert M. DeWitt, Special Agent in Charge of the Federal Bureau of Investigation (FBI) in North Carolina and Interim Chief Michael Lamb of the Asheville Police Department join U.S. Attorney King in making today’s announcement.
According to filed court documents, trial evidence, and witness testimony, on November 9, 2022, at approximately 4:20 p.m., Day entered the PNC Bank branch at 8 O’Henry Avenue, located across the street from the federal courthouse in Asheville. Upon entering the bank, Day walked up to the teller counter, held up a firearm, and demanded money from tellers. According to trial evidence, the tellers complied and gave Day the cash. Unbeknownst to Day, the tellers also included a GPS tracking device concealed within the money. Day then fled the scene on a bicycle.
According to trial evidence, law enforcement tracked the GPS device and determined it was located inside a vehicle traveling on I-26 highway toward Weaverville, North Carolina. Law enforcement conducted a traffic stop of the vehicle and arrested Day, who was the sole driver and occupant of the vehicle. Law enforcement searched the vehicle and recovered the firearm, the stolen cash and GPS tracking device, a bicycle, and numerous articles of clothing worn by Day during the commission of the robbery.
Today, the jury convicted Day of bank robbery using a dangerous weapon, which carries a maximum statutory sentence of 25 years in prison, and possession and brandishing of a firearm in furtherance of a crime of violence, which carries a minimum sentence of seven years in prison, consecutive to any other term of imprisonment imposed. Day will remain in federal custody. A sentencing date has not been set.
In making today’s announcement, U.S. Attorney King thanked the FBI, the Asheville Police Department, and the Weaverville Police Department for their investigation of the case.
Assistant U.S. Attorney Alex M. Scott of the U.S. Attorney’s Office in Asheville is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Essex County Man Sentenced to 20 Months in Prison for Conspiring to Commit Mortgage FraudRead the Press Release
NEWARK, N.J. – An Essex County man was sentenced today to time already served – 20 months – for conspiring to commit mortgage fraud, U.S. Attorney Philip R. Sellinger announced.
Cabral Simpson, 47, of Orange, New Jersey, previously pleaded guilty before U.S. District Judge Kevin McNulty to Count One of an indictment charging him with conspiring to commit wire fraud. U.S. District Judge Julien X. Neals imposed the sentence today in Newark federal court.
According to documents filed in the case and statements made in court:
Simpson, a real estate investor, and his conspirators engaged in mortgage fraud by creating fake bank statements and fake employee verification records for buyers of properties and transferring money into the buyers’ bank accounts for payment of the deposit for a property. Simpson and his conspirators submitted fraudulent mortgage loan applications, supporting documents, and closing documents on behalf of the buyers. They also induced lenders to issue more than $1 million in loans, resulting in defaults and exposing the lenders and the U.S. Department of Housing and Urban Development to more than $1 million in losses.
In addition to the prison term, Judge Neals sentenced Simpson to two years of supervised release and ordered restitution of $1.29 million.
U.S. Attorney Sellinger credited special agents of the U.S. Department of Housing and Urban Development – Office of the Inspector General, under the direction of Special Agent in Charge Janine Rocheleau in Newark, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Andrew Kogan of the U.S. Attorney’s Office Cybercrime Unit in Newark.
District Man Sentenced to 42 Years in Prison for 2019 Shooting of Four People in Northeast Washington D.C.Read the Press Release
WASHINGTON - Travis Littlejohn, 38, of Washington, D.C., was sentenced today to 42 years in prison for the July 5, 2019, shooting of three men and a woman in Northeast Washington, D.C., announced U.S. Attorney Matthew M. Graves and Chief Pamela A. Smith, of the Metropolitan Police Department (MPD). He was sentenced by the Honorable Maribeth Raffinan of the Superior Court of the District of Columbia.
Littlejohn was found guilty by a jury on March 10, 2023, of all charges in the 28-count indictment, following a two-week trial in the Superior Court. Specifically, the jury found Littlejohn guilty of four counts of assault with intent to kill while armed, one count of aggravated assault while armed, and three counts of assault with significant bodily injury, along with related firearms offenses.
According to the government’s evidence, on the night of July 5, 2019, after getting into a verbal and physical altercation with a group of people gathered in the 3800 block of Minnesota Avenue NE, Washington, D.C., Littlejohn drove to a nearby apartment and returned to the block minutes later armed with a handgun. After exchanging words with the group again, Littlejohn fired at least seven rounds at them from a semiautomatic firearm from a short distance away. Four people in that group were struck before two members of the group returned gunfire. Three of the victims suffered significant injuries, but one victim was more seriously injured.
This case was investigated by Metropolitan Police Department the Sixth District Detectives with valuable assistance from Sixth District Patrol Officers who initially responded to the scene. The case was prosecuted and tried by Assistant U.S. Attorneys Michael Toogun and Samuel White, and indicted by Assistant U.S. Attorney Michael McCarthy of the Major Crimes Section of the U.S. Attorney’s Office for the District of Columbia. Valuable assistance was provided by Paralegal Specialists Renee Prather, Debra McPherson & Crystal Waddy, SA Nelson Rhone of the Case Investigation Unit, and Litigation Technology Specialist Lief Hickling.
Deland Man Pleads Guilty to Tax EvasionRead the Press Release
Orlando, Florida – United States Attorney Roger B. Handberg announces that Francis Galen Dulac has pleaded guilty to one count of tax evasion. Dulac faces a maximum penalty of five years in federal prison. A sentencing date has not yet been set.
According to the plea agreement, from 2016 through 2022, Dulac filed taxes with the IRS each year showing a total income of between $12,000 and $20,000, while in reality, he was earning between $275,000 and $366,000 annually. By doing so, Dulac avoided paying more than half a million dollars in income taxes over seven years. Dulac was operating a nutrition and supplements business and derived more than $10,000 from the sale of illegal steroids. Dulac made extensive use of cash in his business, and purchased numerous Mercedes, Lamborghini, and Ferrari sports cars worth hundreds of thousands of dollars, which he financed by claiming annual incomes of $125,000 and $480,000.
This case was investigated by the Internal Revenue Service – Criminal Investigation. It is being prosecuted by Assistant United States Attorney Dana E. Hill.
DEA Controlled Buys Lead to 6-Year Sentence for Violent Massachusetts FelonRead the Press Release
PORTLAND, Maine: A Worcester, Massachusetts man was sentenced today in U.S. District Court in Portland for distributing and possessing with intent to distribute controlled substances.
U.S. District Judge Nancy Torresen sentenced Devon Ashton, 28, to 72 months in prison followed by four years of supervised release. Ashton pleaded guilty on July 26, 2023.
According to court records, between January and March 2023, the U.S. Drug Enforcement Administration (DEA) conducted four controlled purchases of fentanyl from Ashton, for a total of approximately 192 grams. At the end of March 2023, Ashton was stopped for speeding in Lewiston, and $8,000 and approximately 59 grams of cocaine were seized. He was arrested in May 2023.
Ashton has previous convictions for unlawful firearms possession and assault, among other offenses. While awaiting sentencing, he was involved in an altercation at the Strafford (NH) County Department of Corrections and has been indicted in New Hampshire state court for the crime of Assault by Prisoner.
The DEA investigated the case.
###
DC Rapper Pleads Guilty to Possessing a Firearm in Connection with Drug TraffickingRead the Press Release
WASHINGTON – Earl Isaac III, a previously convicted felon, pleaded guilty yesterday in connection with possessing a Glock “ghost gun” with a machine gun conversion device, narcotics trafficking, and related counts.
The plea was announced by U.S. Attorney Matthew Graves, Special Agent in Charge Craig Kailimai of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) Washington Field Division, and Chief Pamela Smith of the Metropolitan Police Department (MPD).
Isaac, 20, aka “Frontline,” of Washington D.C., pleaded guilty on January 9, 2024, to a four-count information in U.S. District Court for possessing a firearm in connection with drug trafficking; unlawful possession of a firearm and ammunition by a person convicted of a crime punishable by imprisonment for a term exceeding one year; unlawful possession with intent to distribute fentanyl; and unlawful possession with intent to distribute marijuana.
U.S. District Court Judge Colleen Kollar-Kotelly set a sentencing date for May 8, 2024.
Isaac styled himself as a rapper and was known to the YouTube community as “Frontline.” On the video sharing website, he posted veiled threats, to a specific group, with automatic firearms pointed directly at the viewer. Under the Frontline alias he uploaded several rap tracks glorifying violence with guns. Isaac posted “Frontline – PTSD” while he was on probation in 2021 and pointed firearms directly at the camera.
According to the government’s evidence, police executed a search warrant at a residence on Stanton Road on June 1, 2023. Under a bathroom sink, police found a .40 caliber Glock firearm, outfitted with a machinegun conversion device, and loaded with a high-capacity magazine that contained 21 rounds of ammunition. Police also found 100 small, round, blue pills inscribed with “M30” littered throughout the premises that were determined to contain fentanyl; 2.68 kilos of marijuana; and $2,020 in cash in the front left pocket of Isaac’s jeans.
Isaac previously was convicted and sentenced to a 14-month suspended prison term under the Youth Rehabilitation Act with a one-year probationary term in D.C. Superior Court for carrying a pistol without a license on October 28, 2022.
Isaac’s social media account showed that Isaac advertised marijuana for sale, sold marijuana and fentanyl, and posed with marijuana and the money he had earned from drug sales.
The case is being handled by Special Assistant U.S. Attorney Jordan Leiter and Assistant U.S. Attorney Sitara Witanachchi of Violence Reduction and Trafficking Offenses Section of the U.S. Attorney’s Office. The investigation was handled by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) with valuable assistance from the Drug Enforcement Administration.
###