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10 October 2023
Former CEO of Iconix Brand Group Sentenced to 18 Months in Prison for Accounting FraudRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced earlier today that NEIL COLE, the former Chief Executive Officer of Iconix Brand Group, Inc. (“Iconix”), was sentenced today in Manhattan federal court to 18 months in prison for participating in a scheme to fraudulently inflate Iconix’s revenue and earnings per share, making false filings with the U.S. Securities and Exchange Commission (“SEC”), and misleading the conduct of audits. In November 2022, a jury found COLE guilty following a four-week retrial before U.S. District Judge Edgardo Ramos, who imposed today’s sentence.
According to the allegations contained in the Indictment, the evidence offered at trial, and matters included in public filings:
Iconix, whose shares traded on the NASDAQ, was in the business of acquiring various brands, including clothing and fashion brands, and then licensing those brands to retailers, wholesalers, and suppliers who, in turn, produced and sold clothing and other products bearing the brand names.
Iconix utilized joint ventures (“JVs”) to profit from its brands in foreign markets. With respect to these JVs, Iconix transferred ownership of a trademark or brand to the JV while maintaining a 50% ownership interest in the JV itself. The other party involved in the JV purchased a 50% interest in the JV from Iconix. As part of the JV agreements, each JV partner was generally entitled to 50% of the JV’s licensing revenue. When it entered into a JV, Iconix recognized as revenue the buy-in purchase price paid by the JV partner, less Iconix’s cost basis in the trademarks.
Among the most critical financial metrics disclosed in Iconix’s public filings with the SEC were Iconix’s quarterly and annual revenue and non-GAAP diluted earnings per share (“EPS”). Iconix executives, including COLE, publicly identified revenue and EPS as the principal metrics demonstrating Iconix’s growth. They also touted Iconix’s consistent record of revenue and earnings growth and of meeting or exceeding Wall Street analyst consensus with respect to these metrics.
The Accounting Fraud Scheme
COLE engaged in a scheme to falsely inflate Iconix’s reported revenue and EPS by orchestrating a series of “round trip” transactions in which COLE and a senior Iconix executive induced a JV partner, a Hong Kong-based international apparel licensing company (“Company-1”), to pay artificially inflated buy-in purchase prices for JV interests, with the understanding that Iconix would then reimburse Company-1 for the overpayments. COLE executed the scheme for the purpose of enabling Iconix to report fraudulently inflated revenue and EPS figures based on the inflated buy-in purchase prices it obtained from Company-1.
COLE arranged for Iconix to enter into at least two JVs with Company-1 that included inflated buy-in purchase prices from Company-1: (i) an amendment to a preexisting Southeast Asia joint venture, which closed on or about June 30, 2014 (“SEA-2”), and (ii) a second amendment to the Southeast Asia joint venture, which closed on or about September 17, 2014 (“SEA-3”). SEA-2 and SEA-3 involved a fraudulent “round trip” transaction, lacking in economic substance, in which Company-1 paid an artificially inflated buy-in purchase price for its interest in the JV, in exchange for COLE’s agreement that Iconix would give back the inflated portion of the purchase price to Company-1. COLE and a senior Iconix executive hid from Iconix’s lawyers and outside auditors that COLE had reached an understanding with Company-1 to artificially increase the consideration Company-1 paid Iconix in exchange for COLE’s agreement to round-trip the overpayment back to Company-1.
Through the scheme, COLE caused Iconix to report fraudulently inflated revenue and EPS figures to the investing public. COLE did so, in part, to ensure that the reported figures met analyst consensus and to fraudulently convey the impression to the investing public that Iconix was growing quarter after quarter, as COLE had touted to the investing public.
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In addition to his prison term, COLE, 66, of New York, New York, was sentenced to three years of supervised release and ordered to pay forfeiture in the amount of $790,200.
Mr. Williams praised the outstanding work of the Federal Bureau of Investigation and the SEC Office of the Inspector General. Mr. Williams also thanked the SEC Division of Enforcement, which previously brought a separate civil action.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Jared Lenow, Justin V. Rodriguez, and Andrew Thomas are in charge of the prosecution.
Five Charged with Bank Fraud Conspiracy, Aggravated Identity TheftRead the Press Release
ALBANY, NEW YORK – Five people have been indicted and arrested in connection with a bank fraud conspiracy targeting SEFCU, now Broadview Federal Credit Union. United States Attorney Carla B. Freedman and Matthew Scarpino, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI), made the announcement.
According to the indictment, court filings, and statements made by prosecutors in court, between February and October 2022, the conspirators obtained customer account information from Caeshara Cannon, age 33, of Albany, formerly a Member Services Representative at SEFCU. They used that information to create counterfeit checks, which were presented for negotiation at SEFCU branches. The conspirators also obtained personal identifying information of other people, which they used to fraudulently obtain loans from SEFCU and then withdraw the proceeds in cash. The conspirators used fake New York State driver’s licenses, with pictures of the conspirators but bearing the personal identifying information of others, during the loan application process. The charges in the indictment are merely accusations. The defendants are presumed innocent unless and until proven guilty.
The following individuals were charged in the indictment handed up September 21, 2023:
- Allahson Allah, formerly known as Gwyn Cancer, age 53, of Albany, is charged with one count of conspiracy to commit bank fraud and two counts of aggravated identity theft.
- Evan Cutler, age 24, of Queensbury, New York, is charged with one count of conspiracy to commit bank fraud and four counts of aggravated identity theft.
- Dnauticah Taylor-Sterman, age 21, of Albany, is charged with one count of conspiracy to commit bank fraud and one count of aggravated identity theft.
- Davon Parson, age 20, of Troy, New York, is charged with one count of conspiracy to commit bank fraud and two counts of aggravated identity theft.
In addition, Cannon was previously arrested and pled guilty on September 14, 2023 to one count of conspiracy to commit bank fraud and one count of aggravated identity theft.
A conviction for conspiracy to commit bank fraud carries a term of up to 30 years in prison, and a conviction for aggravated identity theft carries a mandatory term of imprisonment of 2 years, which must be imposed consecutive to any term of incarceration imposed for the bank fraud offense. A defendant’s sentence is imposed by a judge based on the particular statutes the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
HSI is investigating the case, with assistance from the Bethlehem Police Department. Assistant United States Attorney Benjamin S. Clark is prosecuting this case.
District Nightclub Owner Guilty of Bribing Tax OfficialsRead the Press Release
Jury Finds Zeba Bar Owner Paid Off Officials for Five Years
WASHINGTON – Davoud Jafari, 72, a Washington D.C. nightclub owner, was found guilty today of bribery, conspiracy, and wire-fraud. The offenses arise from a multi-year-scheme in which he bribed former D.C. Tax Official Vincent Slater in order to avoid paying several hundred thousand dollars in business-related taxes. U.S. District Court Judge Reggie B. Walton will sentence Jafari on January 25, 2024.
The verdict was announced by U.S. Attorney Matthew M. Graves, FBI Special Agent in Charge Wayne A. Jacobs, with the Washington Field Office Criminal and Cyber Division, D.C. Inspector General Daniel W. Lucas, and the D.C.Chief Financial Officer Glen Lee.
According to the evidence at trial, Jafari owned a company called Gevani, Inc., which in turn owned and operated Zeba Bar and Grill, located in Columbia Heights. Between October 2012 and December 2017, Jafari collected sales and use taxes from Zeba Bar and Grill customers consisting of 10 percent of the cost of food and drinks purchased. Although Jafari was supposed to turn those tax dollars over to the district on a monthly basis, he instead wrote a check to middleman and co-defendant Anthony Merritt for approximately half the amount of taxes due. Merritt cashed the check and shared the proceeds with Slater, the then-manager of the District of Columbia’s Office of Tax Revenue’s (OTR) Adjustment Unit. In exchange, Slater took actions to falsify records for Jafari and to help Jafari’s company evade collection efforts by other OTR officials.
Merritt pleaded guilty to all charges in the indictment on the first day of trial. On June 7, 2023, a separate jury also convicted Merritt of bribery, conspiracy, and wire fraud for playing a similar role in a different scheme on behalf of businessman Andre De Moya (who was also convicted at trial). Merritt is scheduled to be sentenced in both cases on January 19, 2024. Slater previously pleaded guilty for his role in the Jafari scheme and the De Moya scheme and is awaiting a sentencing date.
“Today’s verdict, and the investigation that preceded it, demonstrate the U.S. Attorney’s Office’s unwavering commitment to prosecuting and holding accountable individuals who seek to corrupt our local government agencies by bribing the public officials who work within them,” said U.S. Attorney Matthew M. Graves. “The defendants in these cases entered multiyear conspiracies to defraud the District of Columbia and its citizens. We will continue our tireless efforts to confront and eradicate such acts of corruption.”
“Today’s guilty verdict is a positive step toward bringing Mr. Jafari and his co-conspirators to justice for their scheme to defraud the government and taxpayers of the District of Columbia,” said FBI Special Agent in Charge Jacobs. “The FBI will continue to work aggressively with our partners to enforce public corruption laws.”
The statutory maximum sentence for conspiracy is five years in prison; for bribery, is 15 years in prison; and for wire fraud, is 20 years in prison. U.S. District Judge Reggie B. Walton will determine the appropriate sentence based on the guideline range and other factors.
In announcing the verdict, U.S. Attorney Graves commended the work of the agencies who investigated the case, including the FBI’s Washington Field Office and the District of Columbia Office of the Inspector General, with substantial assistance by the District of Columbia Office of the Chief Financial Officer, Office of Integrity and Oversight. He also expressed appreciation for the efforts of those who handled the case for the U.S. Attorney’s Office, including Paralegal Specialists Liliana Villamizar Michon Tart, Amanda Rhode, and Mariela Andrade, and former paralegal specialist Aisha Keys.
Finally, he acknowledged the work of Assistant United States Attorneys Emily Miller and Timothy Visser, who prosecuted the case at trial, and Assistant United States Attorneys Emily Miller and Molly Gaston, who investigated the case.
Detroit, MI, Man Sentenced to 15 Years in Federal Prison for His Leadership Role in a Drug Trafficking Organization Targeting two of North Dakota’s Native American ReservationsRead the Press Release
FARGO – United States Attorney Mac Schneider announced that Devonsha Dabney a/k/a Kemell, age 29, of Detroit, Michigan, appeared before Chief Judge Peter D. Welte, U.S. District Court, Fargo, ND, on October 10, 2023, for his leadership in a drug trafficking organization targeting two of North Dakota’s Native American Reservations. Dabney pled guilty to Continuing Criminal Enterprise and admitted to forfeiture allegations involving US Currency, jewelry, and more. Dabney was sentenced to 180 months in federal prison, 4 years of supervised release, and $100 special assessment.
This case is part of “Operation Letter to Reub,” an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation into the multi-state trafficking of oxycodone and fentanyl laced pills. 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.
A multi-agency investigation led by the Bureau of Indian Affairs Division of Drug Enforcement revealed that Dabney and his co-conspirators targeted areas with fewer law enforcement resources where they could distribute controlled substances at a premium price. Dabney and his coconspirators used local residences and people for distribution and stash houses to further their criminal activities for monetary gain. In total, forty-one defendants were charged in the case including members of 5674 Reub Gang, IUR (Iced Up Records), and CCL (Chicken Chaser Loyalty).
Law enforcement learned of a drug trafficking organization affiliated with the 5674 Reub Gang, a violent street gang operating out of Michigan, which was involved in transporting thousands of oxycodone/fentanyl pills to North Dakota for distribution, in Bismarck, ND, Minot, ND, Fort Berthold Indian Reservation and Spirit Lake Indian Reservation. As part of this organization, in approximately 2015, Reuben Rambus began trafficking oxycodone pills from Detroit, MI, to North Dakota. After he died, his brother, Romel Rambus, took over operations and worked with the Devonsha Dabney, to distribute narcotics in North Dakota. Multiple individuals identified Devonsha as the leader of the pill operations in North Dakota beginning in approximately 2017. He recruited individuals from the Detroit, MI, area, as well as local users, to distribute pills for him and oversaw their activities.
Pill supplier turned trafficker, Jonathan B. Walker, a/k/a Jay, was sentenced on October 2, 2023, to 180 months incarceration, 5 years of supervised release, and $500 in special assessment fees. Walker pled guilty to various drug trafficking offenses including Continuing Criminal Enterprise. Jonathan Walker entered the drug trafficking organization initially as a supplier of opiate pills to Dabney and others but began trafficking pills in North Dakota himself after concerns of money coming up short. Walker collaborated with others and had several individuals working under his direction. These individuals would transport shipments of pills utilizing rental vehicles to assist in the distribution and sales of pills in North Dakota and other states, as well as collect drug proceeds that were returned to Walker.
“Drug traffickers who think Indian country is a soft target because of a perceived lack of law enforcement resources ought to think again,” Schneider said. “This sentence shows that if you prey on tribal communities, you will be doggedly pursued by federal, state, local, and tribal law enforcement and you will face justice as a defendant in federal court. The success in this case is a product of the determination of our career prosecutors and the cooperative, multi-agency approach taken by our law enforcement partners.”
"We are grateful to the US Department of Justice and all other agencies. This includes our own MHA Division of Drug Enforcement, who also played a role in this investigation leading to the arrests of these individuals,” said Chairman Mark N. Fox, Mandan, Hidatsa and Arikara Nation, Fort Berthold, ND. “We will continue to fight against illegal drug traffickers that are entering our boundaries and are extremely dangerous to our people."
“Today as tribal and state citizens of North Dakota, we at Spirit Lake Tribe are grateful for the determined work by all agencies to combat the dangers of drug trafficking and abuse in our communities,” said Chairwoman Lona J. Street, Spirit Lake Nation, Fort Totten, ND. “This is a result of excellent teamwork displayed by all local, state, and federal agencies.”
“Devonsha Dabney thought he could come out unscathed while plaguing our streets with poison,” said James Deir, Special Agent in Charge of the ATF’s Detroit Division. “This multi-state collaborative effort with the U.S. Attorney’s Office, our federal, tribal and local partners in North Dakota resulted in Mr. Dabney finding out about accountability.”
This case was investigated by the Bureau of Indian Affairs Division of Drug Enforcement, the Bureau of Alcohol Tobacco Firearms and Explosives (Detroit), the Drug Enforcement Administration, Ward County Narcotics Task Force, Metro Area Narcotics Task Force, Mandan Hidatsa Arikara Division of Drug Enforcement, North Dakota Bureau of Criminal Investigation, North Dakota Crime Laboratory, and Minot Police Department.
The case was prosecuted by the United States Attorney’s Office, with Assistant United States Attorneys Dawn Deitz and Alex Stock assigned with the assistance of lead investigator Bureau of Indian Affairs Division of Drug Enforcement Special Agent Isaiah Soldier.
Delray Beach convicted felon pleads guilty to discharging firearm in Allapattah Flats Wildlife Management AreaRead the Press Release
MIAMI – On Oct. 4, a man pleaded guilty to possession of a firearm by a convicted felon after discharging a firearm in the Allapattah Flats Wildlife Management Area in Martin County, Florida.
Dominic Elvir, 26, of Delray Beach, discharged a Glock, model 19, 9mm pistol into the air in the Allapattah Flats Wildlife Management Area. Law enforcement agents located a video of Elvir on a social media platform discharging the firearm. In 2019, Elvir was previously convicted of burglary and grand theft.
Sentencing is scheduled for Dec. 21, before United States District Court Judge Aileen M. Cannon. Elvir faces up to 10 years in federal prison.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida; Special Agent in Charge Christopher A. Robinson of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Miami Field Office; and Special Agent in Charge Anthony Salisbury of Homeland Security Investigations (HSI), Miami Field Office, announced the guilty plea.
ATF Fort Pierce Field Office and HSI Fort Pierce Office investigated the case. Assistant U.S. Attorney Christopher Hudock is prosecuting it.
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 22-cr-14058.
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DC Solar Attorney Indicted in the DC Solar Billion Dollar Ponzi SchemeRead the Press Release
SACRAMENTO, Calif. — On Oct. 5, 2023, a federal grand jury returned a 23‑count indictment against Ari J. Lauer, 59, of Lafayette, charging him with conspiracy to commit wire and bank fraud, bank fraud, and wire fraud affecting a financial institution, for his role in the biggest criminal fraud scheme in the history of the Eastern District of California, U.S. Attorney Phillip A. Talbert announced.
Lauer is an attorney licensed to practice law in California, and from approximately 2009 to January 2019, he was outside counsel to DC Solar and provided legal and business advice concerning DC Solar’s operations. The indictment was unsealed today following Lauer’s arrest.
According to court documents, between 2011 and 2018, DC Solar manufactured mobile solar generators that were mounted on trailers. The company touted the versatility and environmental sustainability of the generators and claimed that they were used to provide emergency power to cellphone towers and lighting at sporting and other events. A significant incentive for investors were generous federal tax credits due to the solar nature of the generators. Jeff Carpoff, 52, Paulette Carpoff, 49, both of Martinez, and their co-conspirators solicited investors to invest in the generators in large multimillion-dollar transactions using a variety of fraudulent techniques.
A key part of the fraud was that investors would never actually take possession of the generators. Instead, DC Solar typically leased those generators back from the investors, and claimed to sublease them to third parties to generate revenue. In reality there was very little actual third-party rental demand for the generators, yet when Lauer and the other co-conspirators learned this, they continued to represent falsely to investors that the rental market for the generators was robust.
In June 2012, Lauer, Jeff Carpoff, and others met to discuss the failure to generate third-party lease revenue sufficient to meet their financial obligations to the investors. The conspirators agreed to conceal that lack of third-party lease revenue from current and prospective investors, by, among other things, making periodic transfers of investor money from one account to another while misrepresenting the flow of funds as third-party lease revenue. Lauer and other members of the conspiracy created a circular payment system they referred to as “re-rent.” In 2014, they created a “re-rent agreement,” backdating the document to 2011, and used it to explain the large sums of money being transferred from one account to another. In fact, the real source of money was new investor money, which was being used to pay obligations to existing investors. The indictment further alleges that Lauer and other members of the conspiracy prepared sublease agreements with “concealed addendums” that materially altered the terms of the contracts. They used the sublease agreements to defraud investors.
Between March 2011 and Dec. 18, 2018, investors collectively invested approximately $759,400,000 and several financial institutions and other investors transferred collectively $152,700,000 to DC Solar as part of related transactions for the purchase and lease of generators. In total, DC Solar closed transactions with investors that contributed an aggregate of more than $912 million to purchase generators. Those transactions purportedly involved approximately 17,000 generators, at approximately $2.5 billion in purported value.
During the conspiracy, approximately 94% to 95% of the supposed lease revenue on the books was actually intercompany transfers disguised as new investor money. In truth, third-party end-user demand for generators never exceeded 5% of the revenue that was claimed.
This case is the product of an investigation by the Federal Bureau of Investigation, IRS Criminal Investigation, and the Federal Deposit Insurance Corporation Office of Inspector General. Assistant U.S. Attorney Audrey Hemesath is prosecuting the case.
On Nov. 9, 2021, Jeff Carpoff was sentenced to 30 years in prison and ordered to pay $790,600,000 in restitution for conspiracy to commit wire fraud and money laundering. His wife Paulette Carpoff pleaded guilty to conspiracy to commit an offense against the United States and money laundering. She was sentenced on June 28, 2022, to 11 years and three months in prison.
On Nov. 16, 2021, Joseph W. Bayliss, 48, of Martinez, was sentenced to three years in prison and ordered to pay $481,300,000 in restitution for securities fraud and conspiracy in connection with the DC Solar scheme. On April 12, 2022, DC Solar CFO Robert A. Karmann, 57, of Clayton, was sentenced to six years in prison and ordered to pay $624 million. On May 31, 2022, Alan Hansen was sentenced to eight years in prison for conspiracy to commit an offense against the United States and aiding and abetting money laundering. Ryan Guidry, 48, of Pleasant Hill, was sentenced on Jan. 31, 2023, to six years and six months in prison and ordered to pay $619,415,950 in restitution for to conspiracy to commit an offense against the United States and aiding and abetting money laundering.
Ronald J. Roach, 55, of Walnut Creek, pleaded guilty to criminal offenses related to the fraud scheme and is scheduled to be sentenced on Nov. 14, 2023. Roach faces a maximum statutory penalty of 10 years prison. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
lauer_indictment.pdfCrescent City Connection Shooter Pleads Guilty to Possession of a Machine GunRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced that on October 3 ,2023 XAVIER DUHON, age 21, pled guilty to a superseding bill of information for possession of a machinegun, in violation of 18 U.S.C. § 922(o). DUHON faces a maximum term of imprisonment of 10 years, up to a $250,000 fine, up to 3 years of supervised release, and a mandatory special assessment fee of $100. DUHON is set for sentencing on January 9, 2024.
On March 23, 2023, following a traffic collision, DUHON fired upon another vehicle while crossing the Crescent City Connection bridge, Eastbank-bound. Law enforcement officers attempted to stop DUHON’s vehicle, but DUHON led officers on a vehicle, and then foot, pursuit. DUHON was arrested a short time later in the 900 block of Magazine Street. As officers reviewed surveillance video and retraced DUHON’s path of flight, they recovered two pistols, each equipped with a machinegun conversion device.
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 Sarah Dawkins of the Violent Crime Unit is in charge of the prosecution.
Congressman George Santos Charged in Campaign Finance Fraud SchemeRead the Press Release
A federal grand jury in Central Islip, New York, returned a superseding indictment today charging George Anthony Devolder Santos (George Santos), 35, a U.S. Congressman representing the Third District of New York, with one count of conspiracy to commit offenses against the United States, two counts of wire fraud, two counts of making materially false statements to the Federal Election Commission (FEC), two counts of falsification of records submitted to the FEC, two counts of aggravated identity theft, and one count of access device fraud. Santos was previously charged with an additional seven counts of wire fraud, three counts of money laundering, one count of theft of public funds, and two counts of making materially false statements to the U.S. House of Representatives in the original indictment.
According to court documents, Santos, who was elected to Congress last November and sworn in as the U.S. Representative for New York’s Third Congressional District on Jan. 7, engaged in two fraudulent schemes, in addition to the multiple fraudulent schemes alleged in the original indictment.
The Party Program Scheme
According to the allegations in today’s superseding indictment, during the 2022 election cycle, Santos was a candidate for the U.S. House of Representatives in New York’s Third Congressional District. Nancy Marks was the treasurer for his principal congressional campaign committee. During that election cycle, Santos and Marks allegedly devised and executed a fraudulent scheme to obtain money for the campaign by submitting materially false reports to the FEC on behalf of the campaign, in which Santos and Marks inflated the campaign’s fundraising numbers for the purpose of misleading the FEC, a national party committee, and the public.
Specifically, the purpose of the scheme was to ensure that Santos and his campaign qualified for a program that the national party committee administered, pursuant to which the national party committee would provide financial and logistical support to Santos and his campaign committee. To qualify for the program, Santos had to demonstrate, among other things, that his congressional campaign had raised at least $250,000 from third-party contributors in a single quarter.
To create the public appearance that his campaign had met that financial benchmark and was otherwise financially viable, Santos and Marks allegedly agreed to falsely report to the FEC that at least 10 family members of Santos and Marks had made significant financial contributions to the campaign, when Santos and Marks both knew that these individuals had neither made the reported contributions nor given authorization for their personal information to be included in such false public reports. In addition, understanding that the national party committee relied on FEC fundraising data to evaluate candidates’ qualification for the program, Santos and Marks allegedly agreed to falsely report to the FEC that Santos had loaned the campaign significant sums of money, including in one instance a $500,000 loan, when, in fact, Santos had not made the reported loans and, at the time the loans were reported, did not have the funds necessary to make such loans.
Through the execution of this scheme, Santos and Marks ensured that Santos met the necessary financial benchmarks to qualify for the program that the national party committee administered. As a result of qualifying for the program, the congressional campaign received financial support.
The Credit Card Fraud Scheme
As alleged in the superseding indictment, between approximately December 2021 and August 2022, Santos devised and executed a fraudulent scheme to steal the personal identity and financial information of contributors to his campaign. He then allegedly charged contributors’ credit cards repeatedly, without their authorization. Because of these unauthorized transactions, funds were transferred to Santos’ campaign, to the campaigns of other candidates for elected office, and to his own bank account. To conceal the true source of these funds and to circumvent campaign contribution limits, Santos falsely represented that some of the campaign contributions were made by other persons, such as his relatives or associates or other contributors, rather than the true cardholders. Santos did not have authorization to use the cardholders’ names in this way.
For example, in December 2021, one contributor (the contributor) texted Santos and others to make a contribution to his campaign, providing billing information for two credit cards. In the days after he received the billing information, Santos allegedly used the credit card information to make numerous contributions to his campaign and affiliated political committees in amounts exceeding applicable contribution limits, without the contributor’s knowledge or authorization. To mask the true source of these contributions and thereby circumvent the applicable campaign contribution limits, Santos falsely identified the contributor for one of the charges as one of his relatives. In the following months, Santos allegedly repeatedly charged the contributor’s credit card without the contributor’s knowledge or authorization, attempting to make at least $44,800 in charges and repeatedly concealing the true source of funds by falsely listing the source of funds as Santos himself, his relatives, and other contributors. On one occasion, Santos charged $12,000 to the contributor’s credit card, ultimately transferring the vast majority of that money into Santos’s own personal bank account.
The case is currently scheduled for a status conference before Judge Seybert on Oct. 27. If convicted, he faces a mandatory minimum penalty of two years in prison for the aggravated identity theft counts and a maximum penalty of 20 years in prison for the other counts. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division, U.S. Attorney Breon Peace for the Eastern District of New York, Assistant Director in Charge James Smith of the FBI New York Field Office, and Nassau County District Attorney Anne T. Donnelly made the announcement.
The FBI is investigating the case, with assistance from the Nassau County District Attorney’s Office.
Trial Attorneys Jacob Steiner and John Taddei of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorneys Ryan Harris, Anthony Bagnuola, and Laura Zuckerwise for the Eastern District of New York are prosecuting the case, with assistance from Paralegal Specialist Rachel Friedman. Former Trial Attorney Jolee Porter of the Criminal Division’s Public Integrity Section provided substantial contributions to the prosecution.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Congressman George Santos Charged with Conspiracy, Wire Fraud, False Statements, Falsification of Records, Aggravated Identity Theft, and Credit Card FraudRead the Press Release
CENTRAL ISLIP, NY – A 23-count superseding indictment was filed today in the United States District Court for the Eastern District of New York, charging George Anthony Devolder Santos, better known as “George Santos,” the United States Representative for the Third District of New York, with one count of conspiracy to commit offenses against the United States, two counts of wire fraud, two counts of making materially false statements to the Federal Election Commission (FEC), two counts of falsifying records submitted to obstruct the FEC, two counts of aggravated identity theft, and one count of access device fraud, in addition to the seven counts of wire fraud, three counts of money laundering, one count of theft of public funds, and two counts of making materially false statements to the United States House of Representatives that were charged in the original indictment. Santos is due back in federal court in Central Islip on October 27, 2023.
Breon Peace, United States Attorney for the Eastern District of New York, Nicole M. Argentieri, Acting Assistant Attorney General of the Justice Department’s Criminal Division, and James Smith, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Anne T. Donnelly, Nassau County District Attorney, announced the superseding indictment.
“As alleged, Santos is charged with stealing people’s identities and making charges on his own donors’ credit cards without their authorization, lying to the FEC and, by extension, the public about the financial state of his campaign. Santos falsely inflated the campaign’s reported receipts with non-existent loans and contributions that were either fabricated or stolen” stated United States Attorney Peace. “This Office will relentlessly pursue criminal charges against anyone who uses the electoral process as an opportunity to defraud the public and our government institutions.”
“Santos allegedly led multiple additional fraudulent criminal schemes, lying to the American public in the process. The FBI is committed to upholding the laws of our electoral process. Anyone who attempts to violate the law as part of a political campaign will face punishment in the criminal justice system,” stated FBI Assistant Director-in-Charge Smith.
“The defendant - a Congressman - allegedly stole the identities of family members and used the credit card information of political contributors to fraudulently inflate his campaign coffers,” stated District Attorney Donnelly. “We thank our partners in the US Attorney’s Office and the FBI as we work together to root out public corruption on Long Island.”
As alleged in the superseding indictment, Santos, who was elected to Congress last November and sworn in as the U.S. Representative for New York’s Third Congressional District on January 7, 2023, engaged in two fraudulent schemes, in addition to the multiple fraudulent schemes alleged in the original indictment.
The Party Program Scheme
During the 2022 election cycle, Santos was a candidate for the United States House of Representatives in New York’s Third Congressional District. Nancy Marks, who pleaded guilty on October 5, 2023 to related conduct, was the treasurer for his principal congressional campaign committee, Devolder-Santos for Congress. During this election cycle, Santos and Marks conspired with one another to devise and execute a fraudulent scheme to obtain money for the campaign by submitting materially false reports to the FEC on behalf of the campaign, in which they inflated the campaign’s fundraising numbers for the purpose of misleading the FEC, a national party committee, and the public.
Specifically, the purpose of the scheme was to ensure that Santos and his campaign qualified for a program administered by the national party committee, pursuant to which the national party committee would provide financial and logistical support to Santos’s campaign. To qualify for the program, Santos had to demonstrate, among other things, that his congressional campaign had raised at least $250,000 from third-party contributors in a single quarter.To create the public appearance that his campaign had met that financial benchmark and was otherwise financially viable, Santos and Marks agreed to falsely report to the FEC that at least 10 family members of Santos and Marks had made significant financial contributions to the campaign, when Santos and Marks both knew that these individuals had neither made the reported contributions nor given authorization for their personal information to be included in such false public reports. In addition, understanding that the national party committee relied on FEC fundraising data to evaluate candidates’ qualification for the program, Santos and Marks agreed to falsely report to the FEC that Santos had loaned the campaign significant sums of money, when, in fact, Santos had not made the reported loans and, at the time the loans were reported, did not have the funds necessary to make such loans. These false reported loans included a $500,000 loan, when Santos had less than $8,000 in his personal and business bank accounts.
Through the execution of this scheme, Santos and Marks ensured that Santos met the necessary financial benchmarks to qualify for the program administered by the national party committee. As a result of qualifying for the program, the congressional campaign received financial support.
The Credit Card Fraud Scheme
In addition, between approximately December 2021 and August 2022, Santos devised and executed a fraudulent scheme to steal the personal identity and financial information of contributors to his campaign. He then charged contributors’ credit cards repeatedly, without their authorization. Because of these unauthorized transactions, funds were transferred to Santos’s campaign, to the campaigns of other candidates for elected office, and to his own bank account. To conceal the true source of these funds and to circumvent campaign contribution limits, Santos falsely represented that some of the campaign contributions were made by other persons, such as his relatives or associates, rather than the true cardholders. Santos did not have authorization to use their names in this way.
For example, in December 2021, one contributor (the “Contributor”) texted Santos and others to make a contribution to his campaign, providing billing information for two credit cards. In the days after he received the billing information, Santos used the credit card information to make numerous contributions to his campaign and affiliated political committees in amounts exceeding applicable contribution limits, without the Contributor’s knowledge or authorization. To mask the true source of these contributions and thereby circumvent the applicable campaign contribution limits, Santos falsely identified the contributor for one of the charges as one of his relatives. In the following months, Santos repeatedly charged the Contributor’s credit card without the Contributor’s knowledge or authorization, attempting to make at least $44,800 in charges and repeatedly concealing the true source of funds by falsely listing the source of funds as Santos himself, his relatives and other contributors. On one occasion, Santos charged $12,000 to the Contributor’s credit card, ultimately transferring the vast majority of that money into his personal bank account.
The charges in the superseding indictment are allegations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The government’s case is being handled by the Office’s Public Integrity Section, the Long Island Criminal Division, and the Justice Department Criminal Division’s Public Integrity Section. Assistant United States Attorneys Ryan Harris, Anthony Bagnuola, and Laura Zuckerwise, along with Trial Attorneys Jacob Steiner and John Taddei, are in charge of the prosecution with assistance from Paralegal Specialist Rachel Friedman. Former Trial Attorney Jolee Porter of the Criminal Division’s Public Integrity Section also provided substantial contributions to the prosecution.
The Defendant:
GEORGE ANTHONY DEVOLDER SANTOS
Age: 35
Washington, District of ColumbiaE.D.N.Y. Docket No. 23-CR-197 (JS)
Cardiac imaging company and founder to pay historic $85M settlementRead the Press Release
HOUSTON – Cardiac Imaging Inc. (CII), headquartered in Illinois, and its founder, owner and CEO Sam Kancherlapalli, a resident of Florida, have agreed to pay a total of $85,480,000, to resolve False Claims Act allegations that they paid referring cardiologists excessive fees to supervise PET scans in violation of the Anti-Kickback Statute (AKS) and the Physician Self-Referral Law (Stark Law).
This is the largest single district civil settlement in the history of the Southern District of Texas (SDTX).
CII agreed to pay $75 million plus additional amounts based on future revenues, while Kancherlapalli agreed to pay $10,480,000. These settlements are based on their ability to pay.
“Paying illegal kickbacks to cardiologists so they refer patients undermines the integrity of federal healthcare programs and needlessly increases costs,” said Alamdar Hamdani, U.S. Attorney for the SDTX. “Patients deserve care based on their medical need and not on a doctor or company’s financial interest or gain. This outcome emphasizes my office’s commitment to pursing justice, ensuring the public’s trust in the federal healthcare system and holding the corrupt accountable.”
“Healthcare providers that pursue patient referrals through illegal kickbacks and other unlawful financial arrangements will be held accountable,” said Principal Deputy Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will continue to safeguard federal healthcare funds by rooting out financial relationships between healthcare providers and referring physicians that can corrupt medical decision making and increase the cost of care.”
The United States alleged that between March 1, 2014, and May 31, 2023, CII and Kancherlapalli knowingly caused false or fraudulent claims to federal health care programs arising from violations of the AKS and the Stark Law. Specifically, with Kancherlapalli’s oversight and approval, CII allegedly paid kickbacks to referring cardiologists in the form of above-fair market value fees of $500 or more per hour, ostensibly for the cardiologists to supervise the PET scans for the patients they referred to CII. The United States alleged these fees substantially exceeded fair market value for the cardiologists’ services because CII paid the referring cardiologists for each hour CII spent scanning the cardiologists’ patients, including time the cardiologists were away from CII’s mobile scanning units providing care for other patients or were not even on site. CII’s fees also purportedly compensated the cardiologists for additional services beyond supervision that were not actually provided. CII purported to rely on a consultant’s fair market value analysis that the U.S. government contends CII knew was premised on fundamental inaccuracies about the services referring physicians provided and that the consultant ultimately withdrew.
“Illegal kickback payments not only corrupt the medical decision-making process but also cause harm and financial loss to Medicare and other federally funded healthcare programs,” said Special Agent in Charge Jason E. Meadows for the Department of Health and Human Services Office of Inspector General (DHHS-OIG). “DHHS-OIG works closely with our law enforcement partners to root out and hold accountable those who put profit and personal gain ahead of legitimate medical services.”
In connection with the settlement, CII and Kancherlapalli entered into a five-year Corporate Integrity Agreement (CIA) with DHHS-OIG. The CIA requires, among other compliance provisions, that CII implement measures designed to ensure that arrangements with referring physicians are compliant with the AKS and the Stark Law. The CIA also requires that CII implement a centralized annual risk assessment and internal review process to identify and address the AKS and the Stark Law risks associated with arrangements and retain an Independent Review Organization to perform a systems and transactions review of arrangements.
The civil settlement resolves claims brought under the qui tam or whistleblower provisions of the False Claims Act by Lynda Pinto, a former billing manager at CII. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. The qui tam action also raises claims against CII’s former president and part-owner Richard Nassenstein, which are not resolved in this settlement. The qui tam case is captioned U.S. ex rel. Pinto v. Cardiac Imaging Inc., et al., No. 18-cv-2674 (S.D. Tex.). The relator’s share of the settlement has not yet been determined.
The resolution obtained in this matter was the result of a coordinated effort between the SDTX and the Justice Department’s Civil Division - Commercial Litigation Branch, Fraud Section, and with assistance from DHHS-OIG, Defense Health Agency OIG, Railroad Retirement Board OIG and Veteran’s Affairs OIG.
The investigation and resolution of this matter 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 800-HHS-TIPS (800-447-8477).
Assistant U.S. Attorney Melissa M. Green handled the matter along with Commercial Litigation Branch Trial Attorneys Samuel R. Lehman and Jake M. Shields.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Bradenton Felon Sentenced to Four Years for Firearms TraffickingRead the Press Release
Tampa, Florida – U.S. District Judge Virginia Hernandez Covington has sentenced Kranston Algeno Rolle (33, Bradenton) to four years in federal prison for firearms trafficking. Rolle had pleaded guilty on June 14, 2023.
According to court documents, on December 30, 2022, Rolle trafficked in and received multiple firearms, specifically: a Smith & Wesson Model SD9 VE 9mm caliber pistol, a Glock Model 45 .9mm caliber pistol and, a GForce Arms Model GF2P semi-automatic shotgun. Rolle discharged the firearms at a shooting range in Palmetto. Rolle had received the firearms knowing that receiving them would constitute a felony. Additionally, Rolle purchased a box of shotgun shells at the shooting range and signed a liability release form where he knowingly misrepresented his status as a convicted felon.
On March 17, 2022, deputies from the Manatee County Sheriff’s Office executed a search warrant at Rolle’s residence and located two firearms that matched the type used by Rolle to the shooting range on December 30, 2022. Rolle confirmed his identity in a video recording showing him discharging the firearms. He also confirmed his identity in a photograph showing him posing with one of the pistols. Rolle later admitted to using the pistols at the shooting range and having unlawfully received and fired the shotgun.
At the time of the offense, Rolle had multiple prior felony convictions including robbery, grand theft of a motor vehicle, felony battery, and fleeing and eluding a police officer. As such, he is prohibited from possessing firearms or ammunition under federal law.
This case was investigated by the Manatee County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorneys David W.A. Chee and David P. Sullivan.
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.
Blair County Man Sentenced to 14 Years in Prison for Violating Federal Child Exploitation and Firearms LawsRead the Press Release
JOHNSTOWN, Pa. – A resident of Altoona, Pa., has been sentenced in federal court to 168 months in prison and a lifetime term of supervised release on his conviction of violating a federal child pornography law, United States Attorney Eric G. Olshan announced today.
Senior United States District Judge Kim R. Gibson imposed the sentence on Jamie Lee Richardson, 53, of Altoona, Pa.
According to information presented to the court, on or about October 30, 2014, Richardson did knowingly distribute a visual depiction of a minor engaged in sexually explicit conduct in individual computer graphic files which were produced using prepubescent minors engaging in sexually explicit conduct. All computer graphic files were shipped or transported in interstate or foreign commerce.
Assistant United States Attorney Maureen Sheehan-Balchon prosecuted this case on behalf of the government.
This case was brought as a part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Mr. Olshan commended the Department of Homeland Security Investigations for theinvestigation that led to the successful prosecution of Richardson.
Bangor Bank Robber Sentenced to 17 ½ Years in Federal PrisonRead the Press Release
BANGOR, Maine: A Bangor, Maine, man was sentenced on Friday, October 6 in U.S. District Court in Bangor for bank robbery and possession of a firearm by a felon.
U.S. District Judge Lance E. Walker sentenced Donald Turner, 52, to 210 months in prison and a consecutive 24-month sentence for violating his supervised release in a separate docket. Following incarceration, Turner will be on supervised release for five years.
According to court records, Turner entered Bangor Savings Bank in Bangor on September 10, 2020 and handed a bank teller a note indicating his intent to rob the bank, that he had a firearm, and ordering the teller not to speak to anyone. After the bank teller gave Turner money, he walked out of the bank. Law enforcement responded to the bank and obtained surveillance videos. Several surveillance images were sent to local media, leading to multiple citizens to contact law enforcement and identify Turner as the robber. Law enforcement located Turner at an apartment in Bangor, and at the time of his arrest, Turner had a firearm in the front waistband of his pants. Turner admitted he had robbed the bank but denied having the gun with him during the robbery.
At the time he committed this bank robbery, Turner was on supervised release for a 2011 conviction for bank robbery. Turner has two previous convictions for bank robberies he committed in 2006.
The Federal Bureau of Investigations, the Bangor Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated the case.
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Bakersfield Men Indicted for $25 Million Tax Refund Fraud Scheme Using Stolen IdentitiesRead the Press Release
FRESNO, Calif. — On Sept. 21, 2023, a federal grand jury returned an 11-count indictment charging Bakersfield residents Miguel Martinez, 39, and Victor Cruz, 38, for their involvement in a $25 million tax refund fraud scheme, U.S. Attorney Phillip A. Talbert announced today.
Martinez and Cruz were each charged with conspiracy to defraud the United States and submission of false claims to the Internal Revenue Service. Martinez was also charged with identity theft. He has been in custody since his arrest in June 2023 on a criminal complaint. Cruz was arrested Monday at the Los Angeles airport upon his arrival from Mexico.
According to court documents, between November 2019 and June 2023, the defendants and others participated in a scheme to file hundreds of fraudulent individual federal income tax returns that claimed over $25 million in refunds. The defendants used stolen identities to create fake businesses and reported phony wage and withholding information to the IRS that the businesses never actually paid. The purported owners of the businesses listed on these documents were unaware that the businesses even existed. The defendants then submitted hundreds of individual income tax returns to the IRS in the names of the individuals whose identities they had stolen, claiming tax refunds based on the income and withholding information. Cruz was a tax preparer in Bakersfield who filed a significant number of the fraudulent returns. In many cases, the fraudulent tax returns resulted in tax refunds being paid out through checks issued by the IRS. The checks were primarily cashed at businesses in Kern County.
According to court documents, at arrest, Martinez was in possession of more than $750,000 in fraudulent tax refund checks and identification cards for more than 200 people.
This case is the product of an investigation by the Internal Revenue Service Criminal Investigation. Assistant U.S. Attorneys Joseph D. Barton and Henry Z. Carbajal III are prosecuting the case.
If convicted, Martinez and Cruz each face a statutory maximum of 10 years in prison and a $250,000 fine for the conspiracy count, and five years in prison and a $250,000 fine for each of the false claims counts. Martinez also faces a statutory maximum of five years in prison and a $250,000 fine for the identity theft count. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
martinez_criminal_complaint.pdf martinez_cruz_indictment.pdfBakersfield Man Pleads Guilty to Stealing over $160,000 in COVID-19 Relief MoneyRead the Press Release
FRESNO, Calif. — Jaswinder Bhangoo, 50, of Bakersfield, pleaded guilty today to stealing $163,750 in COVID-19 relief money, U.S. Attorney Phillip A. Talbert announced.
According to court documents, between May 2020 and November 2021, Bhangoo applied for over $250,000 in COVID-19 relief loans from the U.S. Small Business Administration. In the applications, Bhangoo falsely represented that he owned multiple businesses with several employees and substantial revenues. He also represented that he had not been convicted of a felony in the previous five years when, in fact, he had been convicted of insurance fraud. Based on Bhangoo’s false representations, some of his loan applications were approved, and he received approximately $163,750 in federal funds to which he was not entitled.
This case is the product of an investigation by the Treasury Inspector General for Tax Administration. Assistant U.S. Attorneys Brittany M. Gunter and Joseph Barton are prosecuting the case.
Bhangoo is scheduled to be sentenced by U.S. District Judge Ana de Alba on Feb. 20, 2024. Bhangoo faces a maximum statutory penalty of 10 years in prison and a fine of $250,000. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This effort is part of a California COVID-19 Fraud Enforcement Strike Force operation, one of five interagency COVID-19 fraud strike force teams established by the U.S. Department of Justice. The California Strike Force combines law enforcement and prosecutorial resources in the Eastern and Central Districts of California and focuses on large-scale, multistate pandemic relief fraud perpetrated by criminal organizations and transnational actors. The strike forces use prosecutor-led and data analyst-driven teams to identify and bring to justice those who stole pandemic relief funds.
Attorney General Garland Appoints Seven U.S. Attorneys to Advisory CommitteeRead the Press Release
WASHINGTON – Attorney General Merrick B. Garland today announced the appointment of the following seven U.S. Attorneys to serve on the Attorney General’s Advisory Committee (AGAC): Alexander M.M. Uballez, District of New Mexico; Breon Peace, Eastern District of New York; Kenneth Parker, Southern District of Ohio; Natalie K. Wright, District of Oregon; Eric G. Olshan, Western District of Pennsylvania; Alamdar Hamdani, Southern District of Texas; and Christopher R. Kavanaugh, Western District of Virginia.
“United States Attorneys work every day throughout the country to advance our mission of upholding the rule of law, keeping our country safe, and protecting civil rights,” said Attorney General Merrick B. Garland. “I am grateful for the perspective the newest members of the Committee will provide on behalf of federal prosecutors across the country and the communities they serve.”
In addition, the Attorney General has selected Gary Restaino, District of Arizona, to serve as the committee’s Vice Chair, replacing Cindy Chung, the former U.S. Attorney for the Western District of Pennsylvania who is now a judge on the Third Circuit Court of Appeals.
The Attorney General also thanked the following U.S. Attorneys who have completed their terms and are rotating off the committee: Cole Finegan, District of Colorado; Brandon Brown, Western District of Louisiana; Dawn Ison, Eastern District of Michigan; Trini Ross, Western District of New York; and Sandra Hairston, Middle District of North Carolina.
The AGAC was created in 1973 and advises the Attorney General on matters of policy, procedure, and management impacting the Offices of the U.S. Attorneys and elevates the voices of U.S. Attorneys in Department of Justice policies.
The bios of all U.S. Attorneys are available here.
Armed Mobile Drug Dealer Sentenced to Five Years in Federal PrisonRead the Press Release
MOBILE, AL – A Mobile man was sentenced to 60 months in prison for illegally possessing firearms in furtherance of drug-trafficking crimes.
According to court documents, Quentarious Jamaro Davis, 27, was arrested in June 2022 by narcotics agents who had obtained a search warrant for his house in Mobile. During the search at Davis’s house, agents found, among other things, 1.9 pounds of marijuana, digital scales, sandwich baggies, more than $2,400 in cash, and four guns—including two .40 caliber pistols, a 9mm pistol, and a 7.62x39 caliber pistol. In an interview with detectives, Davis admitted that he had a third party buy three of the guns for him at a gun show because he knew he was under a felony indictment in Mobile County Circuit Court and could not legally purchase the guns. Agents also seized and searched Davis’s cell phone, which contained hundreds of pictures and videos of bulk marijuana, pictures and videos that Davis took of himself holding bulk cash, and pictures and videos of Davis possessing guns in close proximity to vacuum-sealed marijuana, cash, and drug paraphernalia.
In August 2022, agents executed a separate search warrant at a storage unit in Mobile that Davis directed his girlfriend to rent on his behalf while he was incarcerated. Inside the unit, agents found an additional five pounds of vacuum-sealed marijuana. Agents then executed another search warrant at Davis’s house, seizing more than $9,800 in cash, additional marijuana, and jewelry.
In addition to the 60-month prison term (with credit for time served since June 2022), Chief United States District Judge Jeffrey U. Beaverstock ordered Davis to serve a five-year term of supervised release upon his release from prison, during which time he will undergo drug testing and treatment. The court did not impose a fine, but Chief Judge Beaverstock ordered Davis to pay $100 in special assessments. The court also forfeited Davis’s firearms to the United States.
U.S. Attorney Sean P. Costello of the Southern District of Alabama made the announcement.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Mobile Police Department investigated the case.
Assistant U.S. Attorney Justin Roller prosecuted the case on behalf of the United States.
Arizona Man Charged with Domestic ViolenceRead the Press Release
ALBUQUERQUE – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Raul Bujanda, Special Agent in Charge of the FBI’s Albuquerque Field Office, announced that Norbert Michael Tsosie appeared in federal court on an indictment charging him with assault of intimate partner by strangulation or suffocation. Tsosie, 31, of Tsalie, Arizona, and an enrolled member of the Navajo Nation, will remain in custody pending trial.
According to court documents, Tsosie assaulted his intimate partner, Jane Doe, by strangling and attempting to suffocate her.
An indictment is only an allegation. A defendant is presumed innocent unless and until proven guilty. If convicted, Tsosie faces up to 10 years imprisonment and up to 3 years of supervised release thereafter.
The Farmington Resident Agency of the FBI Albuquerque Field Office investigated this case with the assistance of the Jicarilla Apache Police Department. Assistant U.S. Attorney Kimberly Bell is prosecuting the case.
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U.S. Attorney Vanessa R. Waldref Honored by Washington Women Lawyers for “Passing the Torch” and Going “Above and Beyond” to Mentor Women LawyersRead the Press Release
Seattle, Washington – On October 7, 2023, Washington Women Lawyers (“WWL”) selected United States Attorney Vanessa R. Waldref as the 2023 recipient of the Justice Mary Fairhurst Passing the Torch Award. U.S. Attorney Waldref was honored at WWL’s Annual Event, which was held at the Seattle Art Museum.
Each year, WWL awards the Chief Justice Mary Fairhurst Passing the Torch Award to an attorney that “has gone above and beyond in mentoring women lawyers, making a difference, and ‘passing the torch’ to others in a way that supports” WWL’s Mission — a mission, which is “to further the full integration of women in the legal profession, promote equal rights and opportunities for women, and prevent discrimination against them.”
During this year’s WWL event, U.S. Attorney Waldref was specifically recognized for her commitment to public service as a federal prosecutor, work as an adjunct professor at the Gonzaga University School of Law, and her dedication to mentoring students and lawyers alike. Vanessa Waldref is the first woman to serve as U.S. Attorney in the Eastern District of Washington.
After the award was announced, First Assistant United States Attorney for the Eastern District of Washington, Rich Barker, joined in congratulating U.S. Attorney Waldref on this prestigious honor: “Vanessa is a trailblazer and incredible example of what it means to be a leader and mentor. During her first two years as our United States Attorney, Vanessa has opened a new branch office in the Tri-Cities, led some of the most significant criminal and civil cases in our district, and encouraged new leadership opportunities for women within the office. Vanessa has also worked tirelessly to build an office that is not only diverse in background, skill, and experience, but also promotes equal opportunity, creates an inclusive culture, and promotes a workforce that reflects the diversity of Eastern Washington.”
In accepting the award, U.S. Attorney Waldref stated, “I am truly honored to receive this award, which recognizes Justice Fairhurst’s legacy of justice and stewardship in our great state. Justice Fairhurst is a mentor to so many women lawyers in Washington and beyond. She is an example of the type of lawyer and leader I strive to be — a person of integrity, who leads with conviction, compassion, and a commitment for doing what is right.” She added, “Trailblazers like Justice Fairhurst inspired me as I took the helm as U.S. Attorney for the Eastern District of Washington. I am grateful for the unique opportunity to lead such an incredible office and work closely with attorneys, law enforcement, and community stakeholders to build safer and stronger communities for everyone.”
First Assistant Barker added, “At both the U.S. Attorney’s Office and as an adjunct professor at Gonzaga, I have seen firsthand how Vanessa dedicates herself to mentoring law students and lawyers. She has dedicated her life to public service. In doing so, she inspires us to be better attorneys, better prosecutors, and most importantly, better people. There is no one more deserving than U.S. Attorney Waldref for the Justice Mary Fairhurst Passing the Torch Award.”
The award is named in honor of the Honorable Mary Fairhurst, who retired as a justice on the Washington Supreme Court in January 2020. She also served a four-year term as chief justice in 2016.
Additional information regarding WWL is available at www.wwl.org.
From left to right, King County Superior Court Judge Jaime Hawk, Senior Counsel at Recurrent Energy, Rachael Proctor, United States Attorney for the Eastern District of Washington, Vanessa R. Waldref, Spokane Municipal Court Judge Gloria Ochoa-Bruck
6 October 2023
Zapata resident admits to defrauding public assistance programs and community membersRead the Press Release
LAREDO, Texas – A 45-year-old woman has entered a guilty plea to bank fraud, announced U.S. Attorney Alamdar S. Hamdani.
Mirza Lydia Rodriguez admitted to defrauding Falcon International Bank in a scheme that lasted five years.
In April 2020, law enforcement began investigating Rodriguez after receiving several reports of identity theft from Zapata residents. Authorities discovered Rodriguez claimed to be a tax preparer or could assist others with unemployment benefits. Multiple victims sought assistance from Rodriguez based those representations. Rodriguez collected and stored the victims’ personal identifying information (PII) at her residence.
In October 2021, authorities conducted a search and seized tax returns, W2s, bank records, birth certificates, Social Security cards and credit cards, all in other individuals’ names. Authorities also seized multiple spiral notebooks that contained approximately 1000 pages of PII.
Law enforcement obtained copies of Rodriguez’s bank records and discovered she received direct deposits from tax refunds, COVID-19 stimulus checks and Texas Workforce Commission (TWC) unemployment benefits. All deposits were meant for other individuals to include the victims who reported the theft.
During her plea, Rodriguez admitted to submitting a fraudulent application to Laredo Housing Authority (LHA) for public assistance in May 2015. She used her banking information and a relative’s PII on the application without permission. The application was approved, and Falcon International Bank, which maintains LHA’s accounts, began disbursing housing assistance payments to Rodriguez.
The bank disbursed 57 housing and 43 utility assistance payments totaling $32,715.
Additionally, Rodriguez received 16 deposits addressed to three individuals totaling $30,505. The victims admitted they used Rodriguez’s services for assistance with unemployment benefits and never received any money. The TWC issued letters to the victims indicating they owed thousands of dollars.
Part of Rodriguez’s guilty plea includes restitution payments to LHA and TWC.
U.S. District Judge Diana Saldaña accepted the plea and will sentence Rodriguez at a later date. At that time, she faces up to 30 years in federal prison.
Rodriguez has been and will remain in custody pending sentencing.
The FBI, Texas Department of Public Safety-Texas Rangers, Zapata County Sheriff’s Office and Housing and Urban Development-Office of Inspector General conducted the investigation with assistance from the Drug Enforcement Administration, Federal Deposit Insurance Corporation, TWC and the LHA.
Assistant U.S. Attorney Brian Bajew is prosecuting the case.
Worcester Man Arrested for Passport Fraud and Illegal ReentryRead the Press Release
BOSTON – A Worcester man was arrested today for allegedly using a stolen identity to apply for a United States passport after he had unlawfully reentered the United States following deportation.
Rohan Andrew Brown, 56, was indicted by a federal grand jury in Worcester on one count of illegal reentry of a removed alien, one count of passport fraud and one count of aggravated identity theft. Following an initial appearance in federal court in Boston this afternoon, Brown was detained pending a hearing set for Oct. 12, 2023.
According to the charging documents, Brown was previously deported in August 2002. It is alleged that, sometime after his is removal, Brown unlawfully reentered the United States. In May 2023, Brown allegedly used another person’s identity to apply for a United States passport.
The charge of illegal reentry of a removed alien provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of up to $250,000. The charge of passport fraud provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of up to $250,000. The charge of aggravated identity theft provides for a mandatory sentence of two years in prison to be served consecutive to any other sentence imposed. 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; Matthew O’Brien, Special Agent in Charge of U.S. Department of State’s Diplomatic Security Service, Boston Field Office; and Todd M. Lyons, Field Office Director, Boston, U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations made the announcement today. Assistant U.S. Attorney Kristen M. Noto of the Worcester Branch Office is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Wildwood Man Sentenced to 60 Months in Prison on Child Pornography ChargesRead the Press Release
ST. LOUIS – U.S. District Judge Catherine D. Perry on Friday sentenced a man from Wildwood, Missouri to 60 months in prison for possessing and transporting child pornography.
Matthew Ryan O’Connell, 31, was also ordered to pay $10,000 restitution to one of the victims who appeared in the child sexual abuse material he collected.
A St. Louis County Police Department sergeant was investigating the use of online and cell phone apps to distribute child pornography in 2020 when someone contacted his undercover profile on “Grindr.” O’Connell told the sergeant that he was into young boys and said he had a collection of child sexual abuse material. He later sent images containing child sexual abuse material via the Kik and Wickr apps.
The National Center for Missing and Exploited Children also notified the St. Louis County Police Department that someone had used Snapchat to send images containing child sexual abuse material. A detective traced the material to O’Connell and applied for a search warrant. A Homeland Security Investigations agent, who was also investigating O’Connell, joined the search. Investigators found child sexual abuse material on O’Connell’s two cell phones and the laptop he hid under a treadmill when officers arrived to perform the search.
O’Connell pleaded guilty in May to one felony count each of transportation of child pornography and possession of child pornography. The transportation charge carries a mandatory minimum sentence of five years in prison.
The St. Louis County Police Department and Homeland Security Investigations investigated the case. Assistant U.S. Attorney Carrie Costantin prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Department of Justice Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
WMATA Employee Charged with Extortion and Bribery Connected to Surplus Property SalesRead the Press Release
WASHINGTON – An indictment was unsealed today charging Washington Metropolitan Area Transit Authority (WMATA) employee Tyrone Hunter, 52, of Seat Pleasant, Maryland, with two counts of extortion under color of official right and two counts of bribery concerning federal programs. Hunter, whose job duties included responsibility for the disposal of WMATA surplus property, allegedly demanded and accepted cash payments from a WMATA surplus customer in exchange for giving that customer favorable treatment in two surplus property sales.
The announcement was made by U.S. Attorney Matthew M. Graves, Special Agent in Charge Wayne A. Jacobs, of the FBI Washington Field Office’s Criminal and Cyber Division, and WMATA Inspector General Rene Febles. Hunter made an initial appearance today in the District of Columbia before U.S. Magistrate Judge Moxilla A. Upadhyaya.
According to the indictment, WMATA permits customers to conduct vehicle inspections free of charge but does not allow test drives. All WMATA surplus property sales are “as is” with no refunds. Hunter, an Investment Recovery Administrator for WMATA’s Office of Property Reutilization and Disposition Services, demanded that a WMATA customer pay him in exchange for the opportunity to fully inspect and test drive WMATA paratransit vans - which were offered for sale as surplus property - before bidding on them.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case is being investigated by FBI’s Washington Field Office and the WMATA Office of Inspector General. The case is being prosecuted by the Fraud, Public Corruption, and Civil Rights Section of the U.S. Attorney’s Office for the District of Columbia.
United States Attorney and Grant County Prosecuting Attorney Announce Appointment of Deputy Prosecutor Carlee Bittle as a Special Assistant United States AttorneyRead the Press Release
Spokane, WA – United States Attorney Vanessa R. Waldref and Grant County Prosecuting Attorney Kevin McCrae jointly announced today that Carlee Bittle, who serves as a Deputy Prosecuting Attorney in Grant County, has been appointed as a Special Assistant United States Attorney (SAUSA) for the Eastern District of Washington. As a SAUSA, Bittle will prosecute cases in both state and federal court, focusing primarily on crimes against children.
In making this announcement, U.S. Attorney Waldref reiterated her office’s commitment to holding accountable those who harm children: “We will continue to prosecute the area’s most dangerous criminals to the fullest extent. Today’s announcement should serve as yet another signal to those who victimize children that such crimes will not be tolerated in our communities.”
U.S. Attorney Waldref continued, “Federal, State, Tribal, and local partnerships are essential to building safer and stronger communities in Eastern Washington. Many of these partnerships exist on the law enforcement level, including through joint task forces and cross deputization agreements.” U.S. Attorney Waldref further emphasized, “By combining federal and state resources, we are able to accomplish more to keep our communities safe than we otherwise could.” The SAUSA program applies this same principle to criminal prosecution – permitting experienced prosecutors to handle criminal cases in both state court and federal court.
Grant County Prosecuting Attorney Kevin McCrae similarly addressed the importance of utilizing state and federal partnerships to address crime against children, “As a Deputy Prosecuting Attorney and a SAUSA, Carlee Bittle will have the ability to rely on both federal and state laws to prosecute those who commit crimes against our children, allowing us to better protect children and achieve justice on behalf of children who are harmed.”
Both U.S. Attorney Waldref and Prosecuting Attorney McCrae also commended SAUSA Bittle’s commitment and dedication to public service. Bittle has served as a Deputy Prosecuting Attorney for Grant County since July of 2017. She is primarily responsible for the prosecution of SAU cases. The Special Assault Unit (SAU) prosecutes sex offenses, crimes against children and crimes of domestic violence.
Newly appointed SAUSA Bittle expressed her continued desire to protect the most vulnerable in our communities. “I’m excited to join the U.S. Attorney’s Office, while also continuing my work as a state prosecutor in Grant County. It is an honor to work with the talented state and federal investigators, who devote their careers to protecting young children from physical and sexual abuse. Through combined state and federal efforts, we can make Grant County a safer place to live, work, and raise our families.”
During a resent visit to the federal courthouse in Spokane, SAUSA Bittle was sworn in as a member of the federal bar for the Eastern District of Washington. Photographs of SAUSA Bittle are included below.
U.S. Attorney’s Office for the Eastern District of Louisiana Observes Domestic Violence Awareness MonthRead the Press Release
NEW ORLEANS - October marks the observance of Domestic Violence Awareness Month (DVAM). U.S. Attorney Duane A. Evans joins the U.S. Department of Justice in commemorating DVAM, paying tribute to victims and survivors, and saluting the dedication of the advocates, service providers, justice professionals, law enforcement officers, and first responders who tirelessly work in support of survivors.
Domestic violence, dating violence, and intimate partner violence can have long-lasting impacts and consequences. Approximately one in four women, and one in seven men, will experience severe domestic violence in their lifetimes. Significantly, the rates of such violence are disproportionately higher for American Indian and Alaskan Native populations, women of color, lesbian, gay, bisexual, transgender, queer, intersex, two-spirit people, and people with disabilities. DVAM provides an opportunity to heighten public awareness of domestic violence and encourage everyone to play a role in stopping gender-based violence.
“We want the people of Southeastern Louisiana to know that we are here to support victims and survivors in our Eastern District communities – not just in October, but every month,” said U.S. Attorney Evans. “All of us who serve as federal prosecutors, investigators, and support staff in the Eastern District of Louisiana, have a sworn duty not only to use every tool at our disposal, but also to positively leverage our law enforcement partnerships to provide victims with the safety and justice they deserve.”
U.S. Attorney Parker appointed to serve on Attorney General Merrick B. Garland’s Advisory CommitteeRead the Press Release
CINCINNATI – Attorney General Merrick B. Garland today announced the appointment of U.S. Attorney Kenneth L. Parker for the Southern District of Ohio and six other U.S. Attorneys to serve on the Attorney General’s Advisory Committee (AGAC).
Created in 1973, the AGAC advises the Attorney General on matters of policy, procedure, and management impacting the Offices of the U.S. Attorneys and elevates the voices of U.S. Attorneys in Department policies.
“I sincerely appreciate this appointment to the advisory committee and look forward to continuing my commitment to fairness and accountability in upholding the law,” said U.S. Attorney Parker.
Parker added that as a member of the committee, he will reinforce the Southern District of Ohio’s law enforcement and community outreach efforts in order to strengthen the collaborative work of his office with the entire Department of Justice to promote safer communities nationwide.
The AGAC appointees also include Alexander M.M. Uballez for the District of New Mexico, Breon Peace for the Eastern District of New York, Natalie K. Wright for the District of Oregon, Eric G. Olshan for the Western District of Pennsylvania, Alamdar Hamdani for the Southern District of Texas, and Christopher R. Kavanaugh for the Western District of Virginia.
“United States Attorneys work every day throughout the country to advance our mission of upholding the rule of law, keeping our country safe, and protecting civil rights,” said Attorney General Merrick B. Garland. “I am grateful for the perspective the newest members of the Committee will provide on behalf of federal prosecutors across the country and the communities they serve.”
The bios of all U.S. Attorneys are available here.
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U.S. Attorney Parker announces more than $105 million in grants to support community safety in Southern District of OhioRead the Press Release
COLUMBUS, Ohio – Kenneth L. Parker, United States Attorney for the Southern District of Ohio, announced today that the U.S. Department of Justice has awarded 31 grants totaling $17 million to cities, counties, local law enforcement agencies, colleges and universities, and social service agencies in the 48-county Southern District of Ohio. Additionally, the Justice Department awarded more than $88.4 million to state agencies and elected offices in Ohio.
“The grants will promote safety and strengthen trust, helping communities tackle the proliferation of gun violence and restore bonds of trust between community residents and the justice system,” U.S. Attorney Parker said. “These grants are also going to accelerate justice system reforms, improve the fairness and effectiveness of the juvenile justice system, expand access to victim services, and advance science and innovation to strengthen the knowledge base that policy makers and practitioners can use to develop better strategies to improve community safety.”
Parker said the Bureau of Justice Assistance awarded 25 grants totaling $14 million to cities, counties, and non-profit agencies in the district. The funds will support community response to the opioid epidemic, improve reentry education, increase mental health services for those charged with crimes and support investigations into crimes against children.
Grants from the Office for Victims of Crime include:
Adult Advocacy Center $747,917
OhioHealth Research Institute $400,000
Ohio University $323,000
Women Helping Women $764,000
The National Institute of Justice awarded the University of Cincinnati $105,000 for a graduate research fellowship. Other grants were awarded by the Bureau of Justice Statistics, the Sex Offender Monitoring, Apprehending Registering and Tracking (SMART) Office, and the Office of Juvenile Justice and Delinquency Prevention.
Nine state agencies and elected offices received grants from the Department of Justice to support increasing community safety statewide.
In total, the Justice Department awarded more than $4.4 billion nationwide to support community safety efforts. Visit the OJP website for the complete list of grantees as well as more information on the programs.
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U.S. Attorney Alexander M.M. Uballez Appointed to Serve on Attorney General Merrick B. Garland’s Advisory CommitteeRead the Press Release
ALBUQUERQUE – Attorney General Merrick B. Garland has appointed United States Attorney Alexander M.M. Uballez of the District of New Mexico to serve on the Attorney General’s Advisory Committee of U.S. Attorneys (AGAC). The AGAC was created in 1973 and advises the Attorney General on matters of policy, procedure, and management impacting the Offices of the U.S. Attorneys and elevates the voices of U.S. Attorneys on essential matters facing the Department of Justice.
“United States Attorneys work every day throughout the country to advance our mission of upholding the rule of law, keeping our country safe, and protecting civil rights,” said Attorney General Merrick B. Garland. “I am grateful for the perspective the newest members of the Committee will provide on behalf of federal prosecutors across the country and the communities they serve.”
“It is an honor to advise Attorney General Garland and amplify the needs of New Mexico, the Tenth Circuit, and the hundreds of career civil servants who serve our southwestern communities,” said U.S. Attorney Uballez. “The issues we face are many, but it is through strong partnerships that we rise above our most intractable challenges. I am proud to work collaboratively with U.S. Attorneys from across the nation to shape Department policy and develop innovative and effective strategies to serve our communities.”
U.S. Attorney Uballez was appointed by the President Biden and sworn in as United States Attorney on May 24, 2022. As United States Attorney, Mr. Uballez is the chief federal law enforcement officer for the District of New Mexico. He also serves as the vice-chair of the Native American Issues Subcommittee to the AGAC, as well as a member of the Border & Immigration, Environmental Justice and Environmental Issues, Office Management and Budget and Violent & Organized Crime Subcommittees.
Prior to his confirmation as United States Attorney, Mr. Uballez was as an Assistant United States Attorney in the District of New Mexico where he led organized crime investigations and prosecuted child sexual abuse and human trafficking crimes, transnational and organized crime, and violent crime. Previously, Mr. Uballez served as an Assistant District Attorney in the First and Second Judicial District Attorney’s Offices of New Mexico where he prosecuted crimes against children, community and drug crimes, domestic violence and driving while intoxicated offenses.
The AGAC is comprised of 14 United States Attorneys, and U.S. Attorney Uballez will serve alongside the Committee’s Chair: U.S. Attorney Damian Williams (SDNY), Vice-Chair: U.S. Attorney Gary Restaino (DAZ), as well as U.S. Attorney Ryan Buchanan, (NDGA), U.S. Attorney Matthew Graves (DDC), U.S. Attorney Alamdar Hamdani (SDTX), U.S. Attorney Gregory Harris (CDIL), U.S. Attorney Christopher R. Kavanaugh (WDVA), U.S. Attorney Andrew Luger (DMN), U.S. Attorney Darcie McElwee (DME), U.S. Attorney Eric Olshan (WDPA), U.S. Attorney Kenneth Parker (SDOH), U.S. Attorney Breon Peace (EDNY), and U.S. Attorney Natalie Wight (DOR).
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Two Gang Members Sentenced in Connection with the Murder of 10-year-old Makiyah WilsonRead the Press Release
Opened Fire on Innocent Bystanders
WASHINGTON – Two members of the Wellington Park Crew were sentenced today in connection with the murder of 10-year-old Makiyah Wilson, an innocent bystander gunned down on July 16, 2018, in the courtyard of a Washington, D.C., apartment complex that also left multiple people wounded.
The sentences were announced by U.S. Attorney Matthew M. Graves and Acting Chief Pamela Smith of the Metropolitan Police Department (MPD).
Isaiah Murchison, 23, was sentenced to 60 years in prison today by D.C. Superior Court Judge Robert Okun after being found guilty on June 13 of first-degree murder while armed, conspiracy to commit a crime of violence, participation in a criminal street gang, multiple counts of assault with intent to kill while armed, and related firearms offenses.
Marquell Cobbs, 21, was sentenced to 72 months in prison and three years of supervised release today after being found guilty on June 13 of conspiracy to commit a crime of violence. Previously, the jury found Cobbs not guilty of the charges related to the murder of Makiyah Wilson. However, it did find him guilty of his membership in the Wellington Park Crew.
According to the government's evidence, on July 16, 2018, Murchison, Gregory Taylor, Qujuan Thomas, and two others drove to the Clay Terrace neighborhood in Northeast Washington, D.C., armed with guns. The four men stepped out of the car and opened fire on the Clay Terrace courtyard, indiscriminately firing more than 50 shots.
Makiyah Wilson, sitting on the front stoop of her home, was killed. Several other people were wounded. Fellow gang members Quentin Michals and Darrise Jeffers assisted the shooters by obtaining the weapons and vehicle used in the shooting. Despite having watched the defendants preparing for the shooting, no witnesses were willing to provide information regarding the gunmen's identity. The government presented forensic evidence, statements the defendants made over social media, and motive evidence in presenting its case.
Judge Okun will sentence the four other defendants on October 20.
In announcing the sentences, U.S. Attorney Graves and Acting Chief Smith commended the work of the detectives with the Metropolitan Police Department who investigated the case as well as members of the prosecution team. The team included paralegal specialists Sharon Newman and Grazy Rivera and Assistant U.S. Attorneys Richard Barker and Melissa Jackson, along with former Assistant U.S. Attorney John Timmer, who investigated the case. Finally, they thanked Assistant U.S. Attorneys Laura Bach and Lindsey Merikas, who prosecuted the case.
Tennessee Man Pleads Guilty to Conspiracy to Transport AliensRead the Press Release
ALBANY, NEW YORK – Juan Manuel Rivera-Aguilar, age 36, of Hixson, Tennessee, pled guilty today to conspiring to transport aliens for financial gain.
United States Attorney Carla B. Freedman and Chief Patrol Agent Robert N. Garcia, United States Border Patrol, Swanton Sector, made the announcement.
Rivera-Aguilar admitted that on April 1, 2023, he and German Ojeda-Solano drove to the U.S. side of the international border with Canada in Mooers, New York, seeking to pick up three people who had recently crossed over the border on foot without authorization. When Rivera-Aguilar and Ojeda-Solano saw U.S. Border Patrol agents searching for the people in the woods, Ojeda-Solano reversed the vehicle and began travelling south. Shortly thereafter, agents stopped their vehicle and arrested Rivera-Aguilar and Ojeda-Solano. Rivera-Aguilar admitted that he expected to be paid for transporting the three people to a destination in the United States.
On September 18, 2023, Ojeda-Solano pled guilty to conspiring to transport aliens for financial gain, and was sentenced to 6 months’ imprisonment by Chief United States District Judge Brenda K. Sannes.
Sentencing for Rivera-Aguilar is scheduled for February 2, 2024, before Chief Judge Sannes. Rivera-Aguilar faces up to 10 years in prison, a fine of up to $250,000, and a term of supervised release of up to 3 years. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
Border Patrol investigated this case. Assistant U.S. Attorney Emmet O’Hanlon is prosecuting this case.
Telemedicine Nurse Practitioner Charged with $7.8 Million Durable Medical Equipment Fraud SchemeRead the Press Release
BOSTON – A Virginia-based nurse practitioner has been charged in connection with a $7.8 million telemedicine fraud scheme involving medically unnecessary durable medical equipment (DME), including orthotics such as back and knee braces.
Daphne Jenkins, 64, was charged with one count of conspiracy to commit health care fraud.
According to the charging documents, between December 2018 and April 2020, Jenkins worked with a telemedicine company to sign orders for medically unnecessary durable medical equipment. It is alleged that these orders signed by Jenkins were pre-populated based on telemarketing calls made to Medicare beneficiaries, that Jenkins never had any contact with the beneficiaries herself and had no medical relationship with the patients, and that she generally signed these orders without even reading them. It is alleged that once Jenkins signed these orders, the telemarketing company sold the orders to DME suppliers and laboratories, which then submitted claims to Medicare. As a result of Jenkins’ alleged participation in this conspiracy, over $7.8 million in claims were submitted to Medicare for DME that was medically unnecessary, based on false documentation, and tainted by kickbacks.
The charge of conspiracy to commit health care fraud provides for a sentence of up to 10 years in prison, up to three years of supervised release and a fine of up to $250,000 or twice the gross pecuniary gain or loss, whichever is greater. 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; Roberto Coviello, Special Agent in Charge, Health and Human Services-Office of Inspector General; Jodi Cohen, Special Agent in Charge, Federal Bureau of Investigations, Boston Division; Ketty Larco-Ward, Inspector in Charge, United States Postal Inspection Service, Boston Division; Carol S. Hamilton, Regional Director, Employee Benefits Security Administration, U.S. Department of Labor; and Patrick Hegarty, Special Agent in Charge, Defense Criminal Investigation Service, North East Field Office made the announcement today. Assistant U.S. Attorneys Lauren Graber and Howard Locker of the Health Care Fraud Unit and Alexandra Brazier and Lindsey Ross of the Affirmative Civil Enforcement Units are prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Tax preparer pleads guilty to falsifying returnsRead the Press Release
HOUSTON – A tax service operator has admitted to willfully preparing a false 2018 joint income tax return, announced U.S. Attorney Alamdar S. Hamdani.
As part of her plea, Lynettia Profit admitted that from 2016 to 2019, she operated JNL Tax Services in Houston. She admitted she often placed false education credits and Schedule C items on the returns she prepared, generating larger refunds to which her clients were not entitled.
According to the plea, she would make money by charging preparation fees that were deducted from refunds paid to clients.
Profit pleaded guilty to an information charging her with one count of aiding or assisting in the preparation of a false return. Specifically, she admitted to placing two false American Opportunity Tax Credits in the amount of $2,500 each on the joint return as well as $70,743 in false expenses that were listed on the Schedule C. This resulted in a tax loss of approximately $22,101.
Profit took responsibility of $336,847 in loss to the IRS and has agreed to pay that amount in restitution.
U.S. District Judge Lee H. Rosenthal will impose sentencing Jan. 24, 2024. At that time, she faces up to three years in prison and a possible $250,000 maximum fine.
She was permitted to remain on bond pending that hearing.
IRS Criminal Investigation conducted the investigation. Assistant U.S. Attorneys Brad Gray and Andrew Swartz are prosecuting the case.
Tacoma man sentenced to more than 16 years in prison for production and possession of images of child sexual abuseRead the Press Release
Tacoma – A 37-year-old Tacoma, Washington, man was sentenced today in U.S. District Court in Tacoma to 198 months in prison for production and possession of images of child sexual abuse. William Alexander Crisolo has been detained since his arrest on October 1, 2021, when an investigation revealed Crisolo was using computer networks to trade sexually explicit images of young children. At the sentencing hearing, Chief U.S. District Judge David G. Estudillo said, "There is one unbreakable rule.... to protect (a) child. To do no harm. You betrayed that rule... The trauma you caused will last a lifetime."
According to records filed in the case, Homeland Security Cyber Crimes Center received a tip from a foreign law enforcement agency that Crisolo was claiming, via internet chats, that he was abusing two different minor children and filming the abuse. Law enforcement moved to search Crisolo’s residence and electronic devices. On his custom-built computer, investigators found more than 4,000 child sexual abuse images and 100 child sexual abuse videos. On Crisolo’s phone, law enforcement identified sexually explicit images of the two young child victims.
The case was investigated by Homeland Security Investigations with assistance from the Tacoma Police Department.
The case is being prosecuted by Assistant United States Attorneys Zachary Dillon and Matthew Hampton.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc
St. Francis Man Convicted of AssaultRead the Press Release
PIERRE - United States Attorney Alison J. Ramsdell announced that a jury has convicted Edward Wilson, a/k/a Eddie Wilson, age 41, of St. Francis, South Dakota of Domestic Assault by a Habitual Offender following a three-day jury trial in federal district court in Pierre, South Dakota. The verdict was returned on October 4, 2023.
The charges carry a maximum penalty of five years in custody and/or a $250,000 fine, three of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Wilson was indicted by a federal grand jury in July of 2023.
On May 29, 2023, shortly after 8:00 am, Rosebud Sioux Tribe Law Enforcement Services responded to St. Francis after the victim called 911 reporting an assault. The victim reported to officers that Wilson had assaulted her the night prior, punching her in the face and kicking her in the body numerous times. The responding officers noticed marks on the victim’s face and body consistent with her statement. Wilson later sent text messages to the victim, stating that in a prayer he apologized for what happened and swore he’d never lay a hand on the victim. Wilson has previously been convicted of domestic assault on two separate occasions in U.S. District Court, District of South Dakota.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Abby Roesler prosecuted the case.
A presentence investigation will be ordered and a sentencing date will be set. The defendant was remanded to the custody of the U.S. Marshals Service.
Six Charged in Cocaine and Fentanyl ConspiracyRead the Press Release
Burlington, Vermont – The United States Attorney’s Office stated that six defendants have been indicted in Burlington on charges of conspiring to distribute cocaine and fentanyl. Specifically, those charged in the superseding indictment are Tyler Orvis, 40, of Milton Vermont, Christopher Purvis, 27 of Hartford, Connecticut, Alexis Sutton, 23 of Windsor, Connecticut, Russell Mitchell, 26, of Chesapeake, Virginia, Sierra Fuentes, 30, of Bristol, Connecticut, and Dorothy Wilde, 55, of Hyde Park, Vermont.
To date, all six defendants have been arraigned. Most recently, Christopher Purvis appeared in the District of Vermont on October 4, 2023. Previously, on August 11, 2023, Tyler Orvis pleaded guilty to conspiracy to distribute cocaine and fentanyl before United States District Judge Christina Reiss. Orvis is detained pending sentencing, which is scheduled to occur on December 5, 2023. Purvis, Mitchell, Fuentes, and Wilde are detained pending trial. Sutton was released on conditions. A trial date has not yet been set.
According to court records, from September 2022 through December 30, 2022, the conspiracy involved the distribution of cocaine and fentanyl in Burlington, Vermont and elsewhere. The defendants also used a residence in Milton, Vermont to store drug packaging materials.
The United States Attorney’s Office emphasizes that an indictment contains allegations only and that the defendants are presumed innocent unless and until they are convicted of a crime. As presently charged, if convicted, the six defendants face a maximum possible penalty of 20 years in prison and fines of up to $1,000,000. The actual sentence, however, would be determined by the federal district court with guidance from the advisory United States Sentencing Guidelines and statutory sentencing factors.
United States Attorney Nikolas P. Kerest thanked the DEA Burlington Office, and acknowledged significant assistance from the Milton Police Department, the Lamoille County Sheriff’s Department, the Morristown Police Department, the DEA Hartford Office, the United States Postal Service Office of Inspector General, the Massachusetts State Police and the Massachusetts Bureau of Prisons.
Assistant United States Attorney Zachary Stendig is handling the case for the government. Mark Kaplan, Esq. represents Tyler Orvis, Federal Public Defender Michael Desautels represents Christopher Purvis, Richard Bothfeld, Esq. represents Alexis Sutton, William A. Vasiliou, II, Esq. represents Sierra Fuentes, and John Mabie, Esq. represents Dorothy Wilde.
Sells Man Sentenced to 107 Months for Assault and Failing to Register as a Sex OffenderRead the Press Release
TUCSON, Ariz. – Alan Flores, 53, of Sells, Arizona, was sentenced on Monday by United States District Judge John C. Hinderaker to 107 months in prison, followed by a lifetime term of supervised release. Flores pleaded guilty to Assault Resulting in Serious Bodily Injury to a Child Under the Age of 16 Years and Failure to Register as a Sex Offender.
On September 17, 2021, Flores, an enrolled member of the Tohono O’odham Nation, assaulted a 12-year-old juvenile by stabbing the juvenile in the face with a knife. Flores, who is a convicted sex offender, also failed to abide by his registration requirements and was not living at the address listed on his sex offender registration documents. These offenses occurred on the Tohono O’odham Indian Reservation.
The Federal Bureau of Investigation and Tohono O’odham Police Department conducted the investigation in this case. Assistant U.S. Attorney Frances M. Kreamer Hope, District of Arizona, Tucson, handled the prosecution.
CASE NUMBER: CR 22-1321-TUC-JCH
RELEASE NUMBER: 2023-151_Flores# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Salem Resident Pleads Guilty to Child Pornography OffensesRead the Press Release
BOSTON – A Salem, Mass. man pleaded guilty yesterday in federal court in Boston to distributing and possessing child sexual abuse material (CSAM).
Andrew R. Sorrento, 35, pleaded guilty to possession and distribution of child pornography. U.S. District Judge Indira Talwani scheduled sentencing for Jan. 10, 2024.
In July 2022, Sorrento was identified as an individual distributing CSAM via social media and text messages. During a search of Sorrento’s Salem residence on Dec. 9, 2022, his cell phone was seized and found to contain 23 images and seven videos depicting CSAM – including images of a child under 12-years-old.
The charge of possession of child pornography provides for a sentence of up to 20 years in prison, at least five years of supervised release and a fine of $250,000. The charge of distribution of child pornography provides for a mandatory minimum sentence of five years and up to 20 years in prison, at least five years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy and Michael J. Krol, Special Agent in Charge of Homeland Security Investigations in New England made the announcement today. Valuable assistance was provided by Homeland Security Investigations in Calgary (Canada). Assistant U.S. Attorney David G. Tobin of the Major Crimes Unit is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
SDTX and RI USAOs jointly resolve False Claims Act violationRead the Press Release
HOUSTON – U.S. Attorney’s Offices in two districts have resolved a civil investigation into RPS Group Inc, a global professional services firm, that will result in a recovery of over $465,000, announced U.S. Attorney Alamdar S. Hamdani and Zachary A. Cunha, U.S. Attorneys for the Southern District of Texas and Rhode Island, respectively.
RPS Group Inc. held several contracts with the federal government. Between June 2011 and July 2020, in order to maximize revenue and avoid hitting budgetary ceilings, the company unlawfully engaged in a practice of moving recorded labor hours between government projects with different funding sources, according to the allegations in the investigation. RPS also allegedly submitted invoices for work that was not performed on government contracts and falsely inflated employee billing rates. These practices occurred across numerous government contracts and resulted in the submission of false invoices to multiple government agencies, according to the allegations.
The conduct was brought to the government’s attention both through an RPS corporate disclosure and through complaints four former employees had raised. As part of a civil settlement, RPS Group Inc. will pay $465,293.
At the time of the conduct alleged in this matter, RPS Group’s headquarters in the United States were located in Houston with a subsidiary in North Kingstown, Rhode Island. Another company has since acquired it.
Assistant U.S. Attorneys Jill Venezia and Bethany Wong of the Southern District of Texas and Rhode Island, respectively, litigated this matter.
Department of Commerce - Office of Inspector General (OIG), Army Criminal Investigation Division, Coast Guard Investigative Service, General Services Administration – OIG, National Aeronautics and Space Administration – OIG, Department of Defense Criminal Investigative Service, Environmental Protection Agency – OIG, Department of Interior - OIG, and Naval Criminal Investigative Service.
Riverton Man Sentenced for Assault by StrangulationRead the Press Release
Steven Cole C’Bearing, age 29, of Riverton, Wyoming, was sentenced to 30 months in prison for assault by strangulation. U.S. District Court Judge Alan B. Johnson imposed the sentence on October 5, 2023, in Cheyenne, Wyoming.
According to court documents, on May 18, 2023, C’Bearing had been drinking and became upset with the victim in this case. He struck the victim in the head and neck, then strangled the victim with his hands and later with his leg around the victim’s neck. The defendant was charged by complaint in June, waived the indictment, and pled guilty in July.
This crime was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Michael J. Elmore.
Case No. 23-CR-00086
Riverside County Man Sentenced to Five Years for Federal Firearm and Drug Charges After High-Speed ChaseRead the Press Release
NEWS RELEASE SUMMARY –October 6, 2023
SAN DIEGO – Shane Glazer of Riverside County was sentenced in federal court today to 60 months for possessing a firearm in furtherance of his intent to distribute fentanyl, methamphetamine, and heroin.
According to the government’s sentencing papers, on June 10, 2022, San Diego police officers found the defendant in his car, slumped over and unconscious, with the keys in the ignition and the vehicle running. Glazer was wearing a fanny pack. In the pack, officers found fentanyl and methamphetamine as well as $3,600. In the car, officers also found an unserialized personally manufactured firearm, or “ghost gun,” loaded with ten rounds of ammunition, as well as a high-capacity magazine loaded with 29 rounds of ammunition. The defendant was released on bond pending trial.
Five weeks later, officers found Glazer again slumped over in the driver’s seat with the keys in the ignition and the vehicle running. This time, the defendant used his car to flee the scene. In his attempts to evade officers, Glazer ran a stop sign and two red lights, and then led officers on a vehicle pursuit that reached speeds of over 125 mph. The defendant swerved in and out of traffic, at one point nearly missing another vehicle as he rapidly careened through traffic lanes and drove onto the freeway. As the defendant attempted to enter the I-8 East freeway, he lost control of the vehicle, crashing into an embankment and eventually stopping at the I-8 median barrier. He then threw a loaded gun onto the I-8 West freeway and ran across the lanes of traffic. Vehicles were forced to swerve around Glazer, who narrowly avoided being hit. In addition to seizing the gun, officers searched Glazer’s vehicle and again found fentanyl, methamphetamine, and heroin, as well as $1,546 in cash.
“Drugs, guns and high-speed pursuits could have been a deadly combination,” said U.S. Attorney Tara McGrath. “But for the intervention by the San Diego Police Department, this could have been a catastrophe. Today, Mr. Glazer is being held accountable for his brazen disregard for the law.”
“ATF acknowledges individuals may lawfully possess, make and use privately made firearms under federal law, but those that use them in furtherance of drug trafficking will be held accountable,” said Chris Bombardiere, Bureau of Alcohol, Tobacco, Firearms and Explosives Special Agent in Charge of Los Angeles Field Division. “ATF will continue to focus on the misuse of firearms to combat violent crime in our communities.”
This case was prosecuted by Assistant U.S. Attorney Sandor Callahan.
DEFENDANT Case Number 22cr1972
Shane Glazer Age: 30 Sun City, CA
SUMMARY OF CHARGES
Possession of a Firearm in Furtherance of a Drug Trafficking Crime – Title 18 U.S.C. Section 924(c)(1)
Maximum penalty: Life in Prison
Possession of Fentanyl with Intent to Distribute – Title 21 U.S.C. Section 841(a)(1)
Maximum Penalty: Twenty Years in Prison
Possession of Methamphetamine with Intent to Distribute – Title 21 U.S.C. Section 841(a)(1)
Maximum Penalty: Twenty Years in Prison
Possession of Heroin with Intent to Distribute – Title 21 U.S.C. Section 841(a)(1)
Maximum Penalty: Twenty Years in Prison
AGENCY
The Bureau of Alcohol, Tobacco, and Firearms.
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.
Richmond Man Sentenced for Two Armed Carjackings in Central VirginiaRead the Press Release
RICHMOND, Va. – A Richmond man was sentenced today to 14 years in prison for brandishing firearms during two separate carjackings.
According to court documents, on April 13, 2021, Treon Jackson, 37, had a Ruger 9mm firearm in hand when he approached the first victim in Richmond. The car that Jackson had been using had run out of gas and he wanted to travel to Petersburg. Approximately five minutes prior to committing the first carjacking, Jackson texted an individual telling them that he was looking for a car. Just minutes later, Jackson approached the victim with his gun drawn while they were parked outside a residence where the victim was working. Jackson pointed the firearm at the victim and demanded that they get out of their work truck. The victim complied with Jackson’s demand and Jackson entered the victim’s truck and drove away from the area. Jackson then traveled to Chesterfield, arriving at a restaurant parking lot about 30 minutes after the first carjacking. He parked the work truck and waited next to an SUV. When the second victim exited the restaurant a few minutes later, Jackson got out of the truck and pointed the firearm at the second victim, demanding the keys to the SUV. The second victim also complied and Jackson drove away in the SUV.
Chesterfield police were able to determine the SUV that Jackson had carjacked was in Petersburg. There, a Petersburg Police Officer noticed the SUV fitting the description of the carjacked vehicle. As the officer attempted to stop the SUV, Jackson fled at a high rate of speed, running through multiple stop lights in an effort to get away. As he was about to get onto Interstate 95 North, the SUV was remotely disabled by a stolen-vehicle tracking system installed in the SUV and Jackson was taken into custody.
Investigators located the keys to both stolen vehicles insidethe SUV, along with the high-capacity Ruger 9mm firearm, which was loaded with 16 rounds of ammunition with a round in the chamber. As part of his plea, Jackson admitted that he had committed the two car jackings by force, violence, and intimidation with the intent to cause death or serious bodily injury.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Craig Kailimai, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives Washington Field Division; Stanley M. Meador, Special Agent in Charge of the FBI’s Richmond Field Office; Colonel Jeffrey S. Katz, Chesterfield County Police Department; and Travis C. Christian, Chief of Petersburg Bureau of Police, made the announcement after sentencing by U.S. District Judge David J. Novak.
Assistant U.S. Attorneys Angela Mastandrea-Miller and Avi Panth prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:21-cr-81.
Possession of Machinegun Conversion Devices Leads to 65 Month Sentence in Federal Prison for Purcell ManRead the Press Release
OKLAHOMA CITY – Yesterday, MICHAEL ADRIAN ALLEN SMITH, 37, of Purcell, Oklahoma, was sentenced to serve 65 months in federal prison for illegally possessing a firearm after a previous felony conviction and unlawful possession of machine guns, announced U.S. Attorney Robert J. Troester.
On March 1, 2023, Smith was charged by information with felon in possession of a firearm and unlawful possession of machine guns. According to an affidavit filed in support of a criminal complaint, on February 10, 2023, a federal search warrant was issued for Smith’s residence after probable cause was shown Smith was in possession of ammunition. Smith is a convicted felon in the Superior Court of California, County of Riverside, for possession of a controlled substance for sale by an armed person with a firearm. Agents with the Bureau of Alcohol, Tobacco, Firearms, and Explosives served the warrant, and found two machinegun conversion devices, which enable a firearm to fire more than one round for each pull of the trigger.
On March 22, 2023, Smith pleaded guilty to Counts 1 and 2. As part of his plea, Smith admitted to possession of two machine gun conversion kits, the possession of which is prohibited under federal law.
At the sentencing hearing on Thursday, U.S. District Judge Bernard M. Jones sentenced Smith to serve 65 months in federal prison. In announcing the sentence, the court noted Smith’s criminal history which includes convictions for domestic violence offenses, and the illegal sale of firearms present in the community.
This case is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Mary E. Walters prosecuted the case.
Reference is made to court filings for further information.
Polk County Drug Trafficker Convicted for Possession with Intent to Distribute MethamphetamineRead the Press Release
Tampa, Florida – United States Attorney Roger B. Handberg announces that Floyd Hintteon Green, Jr. (62, Winter Haven) has been found guilty, following a bench trial before United States District Judge Thomas P. Barber, of possession with the intent to distribute methamphetamine. Green faces a minimum mandatory penalty of 10 years, up to life, in federal prison. His sentencing hearing is scheduled for December 7, 2023.
According to evidence presented at trial, Green was stopped by officers from the Winter Haven Police Department for an illegal tint violation. During a search of Green’s vehicle, K-9 units alerted their handlers to the presence of narcotics. The officers recovered a large toiletry bag containing approximately 437.2 grams of pure substance methamphetamine. Green later admitted to being a drug dealer, knowing the methamphetamine was present in the vehicle, and to selling it for approximately $2,600 per pound. Green also admitted to previously serving a sentence in Florida State Prison for drug trafficking.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case was investigated by the Drug Enforcement Administration and the Winter Haven Police Department. It is being prosecuted by Assistant United States Attorneys Samantha J. Newman and David W.A. Chee.
Owner of the Sportsmans Grille in Williamsburg Pleads Guilty to Tax FraudRead the Press Release
NEWPORT NEWS, Va. – A Williamsburg man pleaded guilty yesterday to tax fraud.
According to court documents, from 2016 to at least 2020, Stephen G. Genakos, 62, was the sole owner and managing director of Sarantos, Inc., a Virginia corporation, having made a Subchapter S election, doing business as a restaurant, Sportsmans Grille, in York County. Since 2016, Genakos skimmed U.S. currency from the Sportsmans Grille.
In 2020, Genakos listed the Sportsmans Grille for sale for $795,000. In 2021, undercover agents from the Internal Revenue Service (IRS) made contact with Genakos. During this operation, Genakos provided IRS agents the chance to view the true books and records of the Sportsmans Grille. For tax years 2016 through 2020, Genakos filed materially false tax returns for himself and his business, Sarantos Inc.
Genakos pleaded guilty to aiding and assisting in the preparation of a materially false tax return and is scheduled to be sentenced on March 21, 2024. He faces a maximum penalty of three years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Kareem A. Carter, IRS Criminal Investigation Special Agent in Charge of the Washington D.C. Field Office, made the announcement after U.S. District Judge Arenda Wright Allen accepted the plea.
Assistant U.S. Attorneys Mack Coleman and Brian Samuels are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:23-cr-37.
One of the Largest-Ever Fentanyl Seizures in New York City Results in Four Charged for Operating Fentanyl Mill in Bronx ResidenceRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, Frank A. Tarentino III, the Special Agent in Charge of the New York Field Office of the Drug Enforcement Administration (“DEA”), and Ivan J. Arvelo, the Special Agent in Charge of the New York Field Office of Homeland Security Investigations (“HSI”), announced today the filing of a Complaint in Manhattan federal court charging WELLINGTON EUSTATE ESPINAL, a/k/a “Ronny,” CRISTIAN EUSTATE ESPINAL, HERIBERTO EUSTATE ESPINAL, a/k/a “Daulin,” and ROBERTO JOSE VARGAS-PAULINO with conspiracy to distribute narcotics and distribution of narcotics. The defendants were arrested yesterday afternoon in the Belmont neighborhood of the Bronx. The defendants were presented today before U.S. Magistrate Judge Stewart D. Aaron.
U.S. Attorney Damian Williams said: “Last night, while conducting a Court-authorized search of a residence in the Bronx, law enforcement made one of the largest-ever seizures of fentanyl in New York City’s history — apparently more than 50 pounds of the poisonous drug. And now four defendants are in federal custody for allegedly operating a pill mill. The thought of the potential damage this stunning amount of fentanyl could have inflicted on New Yorkers is terrifying. I express deep gratitude to our law enforcement partners and the career prosecutors of this Office for their continued vigilance in keeping fentanyl off of our streets.”
DEA Special Agent in Charge Frank Tarentino said: “This is one of the largest fentanyl pill mills we have seen in New York City. The DEA recently announced that 7 out of 10 pills tested by the DEA laboratories across the county contain a lethal dose of fentanyl. Allegedly, this industrial pill mill, located in the heart of the Bronx, had enough lethal fentanyl to dispense well over a million lethal doses. Fentanyl pills are being manufactured in these clandestine pill mills right here, in our neighborhoods, and unleashed into our communities. They are then marketed and sold to many who have no idea the pills — many of which are purposefully made to look like other prescription or party drugs — contain fentanyl. With the growing increase of fentanyl-related poisonings, this toxic operation is unacceptable and law enforcement, at all levels, is vigilantly tracking down drug trafficking organizations responsible for bringing the most harm to our communities.”
HSI Special Agent in Charge Ivan J. Arvelo said: “The HSI New York El Dorado Task Force, in conjunction with our dedicated partners, has dismantled yet another clandestine lab, suspected to have operated within a residential building, dangerously close to where families reside and children innocently play. These areas were designated as 'drug-free zones,' emphasizing the severity of the situation. In recent months, we have witnessed a devastating pattern, with multiple instances of deadly activities occurring mere feet away from places we entrust our children's safety. This alarming reality underscores the urgency of our commitment to collaborate with our partners in the relentless fight of safeguarding our communities. HSI New York remains steadfast in our vow to disrupt and dismantle criminal organizations who seek to poison our communities in the ongoing lethal epidemic of fentanyl poisoning.”
As alleged in the Complaint filed today in Manhattan federal court:[1]
Since at least in or about September 2023, members of law enforcement have been investigating a network of drug traffickers who, among other things, appear to have converted an apartment within a two-family house in a residential neighborhood in the Bronx, New York, to be utilized for the purpose of packaging large quantities of fentanyl into portions for wholesale distribution. In particular, the traffickers used the apartment (the “Fentanyl Mill”) to store kilogram-quantities of fentanyl, combine the fentanyl with other fillers, use dyes to color the combined powders, and use large industrial-scale pill presses to create hundreds of thousands of deadly fentanyl pills at a time.
On or about October 5, 2023, members of law enforcement searched the Fentanyl Mill and found all four defendants inside. During their search, investigators found, among other things, approximately 24 kilograms of suspected fentanyl in powder form — comprised of approximately 14 kilograms of compressed powder in brick-shapes members of law enforcement believe to contain fentanyl and approximately 10 kilograms of loose powder members of law enforcement believe to contain fentanyl — as well as over 200,000 suspected fentanyl pills already packaged and ready for distribution to other traffickers for further sale. Some of the pills appear to have been manufactured to mimic prescription drugs, and others were pressed into colorful shapes to resemble party drugs such as ecstasy. A photograph of narcotics and other items recovered during the search is below:
Members of law enforcement also found three commercial pill presses and another disassembled pill press; one kilogram press; and various manufacturing and distribution paraphernalia including blenders, dyes, and jars of calcium citrate, that are used in connection with pressing narcotics into pill form and packaging narcotics for further distribution, as well as what appear to be industrial-grade protective face masks. Two of the pill presses found are pictured below.
Law enforcement further found that the interior of the Fentanyl Mill appeared to have been converted for dedicated use as a fentanyl repackaging and redistribution facility. For example, in an apparent effort to conceal the narcotics operation occurring in the Fentanyl Mill, the first-floor windows were covered with black trash bags and dark fabric, preventing outside observers from a view of what was occurring inside. The Fentanyl Mill also had a surveillance system, including a television screen mounted in the basement displaying a live feed of camera footage from outside the Fentanyl Mill.
Although lab testing is pending for the pills and powders discovered during the search, preliminary field tests reveal that the powders have tested positive for fentanyl.
* * *
WELLINGTON EUSTATE ESPINAL, 41, of New York, New York; CRISTIAN EUSTATE ESPINAL, 20, of the Bronx, New York; HERIBERTO EUSTATE ESPINAL, 27, of New York, New York; and ROBERTO JOSE VARGAS-PAULINO, 31, of the Bronx, New York, are charged in Count One with conspiracy to distribute narcotics and in Count Two with narcotics distribution. Both Count One and Count Two carry a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison.
The statutory minimum and maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Williams praised the outstanding investigative work of the El Dorado Task Force International Narcotics and Money Laundering Unit, which is comprised of law enforcement officers from the DEA, the Department of Homeland Security, HSI, and the New York City Police Department, as well as the work of the New York State Police and the United States Postal Service. Mr. Williams also thanked the New York State Police Contaminated Response Team and the DEA Chemist Team for their processing of the scene.
This case is being handled by the Office’s Narcotics Unit. Assistant U.S. Attorney Maggie Lynaugh is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Omaha Women Sentenced for Paycheck Protection Program FraudRead the Press Release
Acting United States Attorney Susan Lehr announced that Tamika R. Cross, 44, of Omaha, Nebraska, was sentenced today in Omaha by Chief United States District Judge Robert F. Rossiter, Jr. to 42 months’ imprisonment for Conspiracy to Commit Wire Fraud. There is no parole in the federal system. After her release from prison, Cross will begin a three-year term of supervised release. Chief Judge Rossiter ordered Cross to pay restitution of $552,287.26.
Co-defendant Davida J. Anderson, 53, of Omaha, was sentenced on October 5, 2023, in Omaha by Chief Judge Rossiter to four years of probation, with the condition of five months’ home detention, and a fine of $5,000. Anderson pleaded guilty in June 2023 to making False Statements to the Small Business Administration. Anderson was also ordered to pay restitution of $3,921.60, in addition to the loan repayments she had already made in the amount of approximately $78,432.
During 2020 and 2021, Cross submitted applications for PPP and EIDL loans on behalf of her purported businesses and herself, as a sole proprietor, and obtained several PPP loans and an EIDL grant. Those loans were created or expanded by the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act, which was designed to provide emergency financial assistance to the millions of Americans suffering the economic effects caused by the COVID-19 pandemic.
In the loan applications, Cross misrepresented the average monthly payroll that her purported businesses paid, the net revenue from her purported businesses, and the gross income she received as a sole proprietor. In fact, the businesses did not have employees and thus had no payroll, and Cross did not generate revenue as a sole proprietor.
In addition to loan applications submitted on her own behalf, Cross provided direction and guidance to others concerning creating the appearance of ongoing businesses, creating phony supporting documents, and obtaining larger loans by inflating the amount the applicant businesses purportedly paid in past compensation or had received in revenue. Cross assisted with preparing fraudulent PPP and EIDL applications on behalf of more than ten other persons. The applications substantially inflated the compensation paid by the businesses and the gross revenues earned by the businesses. Cross also prepared fraudulent documents for submission in support of loan applications, such as false tax documents.
Cross submitted, and assisted others in submitting, fraudulent applications for PPP and EIDL loans and advances totaling $3,399,769. The applications contained material misrepresentations and were supported by false documents. Cross and the co-defendants obtained approximately $903,238 in loans and advances.
“This defendant submitted false documents certifying a number of employees and payroll for a business that had neither. She collected PPP loan proceeds based on lies and helped others do likewise,” said IRS Criminal Investigation (CI) Special Agent in Charge Thomas F. Murdock. “We are committed to investigating those who defrauded the government and robbed businesses truly in need of pandemic relief.”
Co-defendant Anderson submitted or caused to be submitted applications for Paycheck Protection Program loans in 2020 and 2021.
Anderson worked with Cross to prepare and submit loan applications that misrepresented payroll for a purported business, revenue for a sole proprietorship and falsely stated she had no other business. In fact, the business had no employees and Anderson did not earn income as a sole proprietor. The PPP applications were also supported by false tax documents, some of which Anderson signed. Anderson submitted or caused to be submitted fraudulent applications for loans totaling approximately $118,532, and she obtained $78,432.
The following co-defendants were sentenced previously:
Bion A. Flint, sentenced on September 15, 2022, to 10 months’ imprisonment, three years supervised release, and ordered to pay $45,833 in restitution;
Jeremy D. Sanders, sentenced on March 10, 2023, to four years of probation, and ordered to pay $21,304.88 in restitution;
Lakeda R. Sanders, sentenced on March 10, 2023, to four years of probation, and ordered to pay $27,793.79 restitution; and
Ronnie E. Cross, sentenced on June 23, 2023, to 21 months’ imprisonment, three years of supervised release, and ordered to pay $78,427.30 restitution.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The cases were investigated by the Internal Revenue Service and the Federal Bureau of Investigation.
Nurse Charged with Tampering with Lorazepam VialsRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, today announced that a federal grand jury in New Haven has returned an indictment charging SEAN FALZARANO, 37, of Southbury, with five counts of tampering with a consumer product.
Falzarano is a Registered Nurse. The indictment alleges that, on January 31, 2022, Falzarano took five vials containing 2mg/ml of Lorazepam solution that he knew was intended to be dispensed to patients, removed the Lorazepam solution from the vials, replaced it with saline, and returned the adulterated vials to be used in medical procedures.
The indictment was returned on October 3. Falzarano appeared today before U.S. Magistrate Judge Maria E. Garcia in New Haven and pleaded not guilty to the charges. He is released on a $50,000 bond pending trial.
Each charge of tampering with a consumer product carries a maximum term of imprisonment of 10 years.
Falzarano’s nursing license is currently suspended.
This matter is being investigated by the Food and Drug Administration, Office of Criminal Investigations; the DEA’s Hartford Diversion Control Division; and the Connecticut Department of Consumer Protection, Drug Control Division. The case is being prosecuted by Assistant U.S. Attorney Ray Miller.
North Redington Shores Man Sentenced to More Than 17 Years in Federal Prison for Fraud SchemesRead the Press Release
Tampa, Florida – U.S. District Judge Mary S. Scriven has sentenced Alexander Leszczynski (24, North Redington Beach) to 17 years and 6 months in federal prison for three different fraud schemes in which he attempted to obtain more than $10 million. The court furthered ordered Leszczynski to forfeit the proceeds and facilitating property of the offense—$337,000—and ordered Leszczynski to pay a total of $621,000 in restitution to the victims of the offenses.
According to the court documents, Leszczynski used fictitious religious organizations—Love & Bliss, Aura, Inc., King Neptune, Inuyasha, Inc., Rhone, Inc., King Cobra, Inc., Tinnitus Institute of Love & Bliss, Inc., and King Country Road, Inc. entities—to engage in numerous frauds. The schemes included fraudulently applying for Payroll Protection Plan (“PPP”) loans totaling approximately $1.3 million, engaging in a check kiting scheme, and attempting to deposit more than $3 million of worthless checks into the Love & Bliss, Inc. business account. Leszczynski laundered the proceeds of the PPP and check kiting schemes through multiple accounts in an effort to conceal those proceeds from the United States and forestall its recovery. The United States ultimately seized $337,000 from an account Leszczynski controlled and, when he discovered that the money had been frozen, he attempted to have it released by producing a fabricated pardon purportedly signed by former President Donald Trump.
In a separate fraud scheme, Leszczynski filed fraudulent warranty deeds purporting to deed to himself and his businesses 10 properties around the United States collectively valued at more than $300 million. When property owners and attorneys attempted to correct the fraudulent deeds, Leszczynski responded by sending harassing and threatening letters, emails, and faxes. Among the victims of Leszczynski’s deed scheme were Victim 1 and Victim 2.
In April 2022, a grand jury in the Middle District of Florida charged Leszczynski with the PPP, check, and deed frauds, as well as multiple counts of money laundering in case United States v. Alexander Leszczynski, 8:22-cr-155-MSS-SPF. He was arraigned on May 17, 2022, and ordered detained.
In August 2022, the FBI became aware that while incarcerated at the Pinellas County Jail, Leszczynski sought out a hitman to kill Victim 1 and Victim 2. Leszczynski reported to a confidential informant that he had $45,000 hidden at his home available to pay someone to kill the victims. Leszczynski relayed to the confidential informant that his pending criminal case (the fraud case) would have to be dropped if the victims were dead. The confidential informant agreed to put Leszczynski in contact with a purported hitman, who was an undercover agent.
On September 8 and 9, 2022, Lesczcynski had calls with the undercover agent. Among other details, Leszczynski shared the names, addresses, physical descriptions, and approximate ages of Victim 1 and Victim 2, and provided additional details that would allow the undercover agent to find photographs of Victim 1 and Victim 2 online. Leszczynski also negotiated a price, settling on paying $30,000, and repeatedly assured the undercover agent that he wanted Victim 1 and Victim 2 dead.
Leszczynski pleaded guilty to both cases in November 2022. He later withdrew his plea in the murder-for-hire case, but again pleaded guilty in June 2023. Since he pleaded guilty to both cases, Leszczynski has written numerous letters—intercepted by the United States—attempting to solicit others to come forward and fraudulently take responsibility for his crimes.
Leszczynski’s sentencing in the murder-for-hire case is pending before U.S. District Judge James Moody, in case number 8:22-cr-155-MSS-SPF, on November 7, 2023, at 9:45 a.m.
The fraud case was investigated by the Federal Bureau of Investigation, the Largo Police Department, the Indian Shores Police Department, and the Palm Beach Police Department. It is being prosecuted by Assistant United States Attorney Rachel Jones. The murder-for-hire case was investigated by the Federal Bureau of Investigation and the Pinellas County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Shauna S. Hale.
New Orleans Woman Pleads Guilty to Misprision of a FelonyRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced that BYRONEISHA BUTLER, pled guilty on October 4, 2023 to a bill of information, charging her with Misprision of a Felony, in violation of Title 18, United States Code, Section 4, before United States District Judge Jane Triche Milazzo.
According to court records, between January 2019 and December 16, 2021, BUTLER, having knowledge of the commission of a felony, specifically conspiracy to distribute controlled substances, did conceal the same by deleting pictures and text messages from her phone at a co-conspirator’s request, attempting to delete pictures and text messages from the co-conspirators phone, and attempting to conceal the co-conspirator's identity and involvement in a crime, from law enforcement.
BUTLER faces a maximum sentence of 3 years imprisonment, up to a $250,000 fine, up to 1 year of supervised release, and a mandatory special assessment fee of $100. BUTLER’s sentencing is scheduled for January 17, 2024, at 9:30 a.m.
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 Federal Bureau of Investigation, the New Orleans Police Department, and the St. Bernard Sheriff’s Office. It is being prosecuted by Assistant United States Attorneys Maurice Landrieu of the Narcotics Unit and Elizabeth Privitera, Chief of the Violent Crime Unit.
New Orleans Man Pleads Guilty to Violating Federal Controlled Substances and Federal Gun Control ActsRead the Press Release
NEW ORLEANS, LOUISIANA – NATHANIEL WILLIAMS, age 27, a resident of New Orleans, Louisiana, pleaded guilty as charged to a three-count indictment on October 3, 2023 before U.S. District Judge Greg G. Guidry. Specifically, WILLIAMS pleaded guilty to being a felon in possession of a firearm, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(8) (Count 1); possession with intent to distribute cocaine, in violation of Title 21, United States Code, Sections 841(a)(1) and (b)(1)(C) (Count 2); and possession of a firearm in furtherance of a drug trafficking crime, in violation of Title 18, United States Code, Section 924(c)(1)(A) (Count 3).
According to court documents, on March 29, 2023, WILLIAMS was conducting hand-to-hand drug sales near the Valero gas station on South Claiborne Avenue. When marked NOPD vehicles arrived at the gas station, WILLIAMS fled across South Claiborne and threw a loaded gun in the neutral ground. WILLIAMS then hid underneath a house nearby and discarded 66 baggies of cocaine before being apprehended by NOPD.
As to Count 1, WILLIAMS faces a maximum term of imprisonment of 15 years, up to a $250,000 fine, and up to 3 years of supervised release. As to Count 2, he faces a maximum term of imprisonment of 20 years, up to a $1,000,000 fine, and at least 3 years of supervised release. As to Count 3, he faces a mandatory minimum sentence of five years up to life imprisonment, which must run consecutively to the sentences imposed on the other counts, up to a $250,000 fine, and up to five years of supervised release. WILLIAMS must also pay a mandatory special assessment fee of $100 per count.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case was investigated by the Bureau of Alcohol, Firearms, Tobacco, and Explosives. It is being prosecuted by Assistant United States Attorney David Berman of the Violent Crime Unit.