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21 July 2023
Former Journalist Pleads Guilty to Child Sexual Abuse Material ChargesRead the Press Release
ALEXANDRIA, Va. – An Arlington man pleaded guilty today to transportation and possession of child sexual abuse material.
According to court documents, while visiting South Carolina in February 2020, James Gordon Meek, 53, used an online messaging platform on his iPhone to send and receive images and videos depicting minors engaged in sexually explicit conduct, and to discuss his sexual interest in children. Some of the images and videos depicted prepubescent minors and minors under the age of 12, including an infant being raped. Meek brought the iPhone containing the child sexual abuse material back with him when he returned to Virginia. Additionally, Meek possessed multiple electronic devices containing images and videos of minors engaged in sexually explicit conduct.
Meek is scheduled to be sentenced on September 29. He faces a mandatory minimum penalty of 5 years imprisonment and a maximum penalty of 20 years imprisonment for each charge. 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; Kenneth A. Polite, Jr, Assistant Attorney General. of the Justice Department’s Criminal Division; and David Sundberg, Assistant Director in Charge of the FBI Washington Field Office, made the announcement after U.S. District Judge Claude Hilton accepted the plea.
Assistant U.S. Attorney Zoe Bedell and Special Assistant U.S. Attorney Whitney Kramer are prosecuting the case.
This case was investigated by the FBI Washington Field Office’s Child Exploitation and Human Trafficking Task Force. The task force is composed of FBI agents, along with other federal agents and detectives from northern Virginia and the District of Columbia. The task force is charged with investigating and bringing federal charges against individuals engaged in the exploitation of children and those engaged in human trafficking. Valuable assistance was provided by the Arlington County Police Department.
This case was also brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the 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.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:23-cr-65.
Former Correctional Officer Sentenced to Prison for Sexual Abuse of an InmateRead the Press Release
Ocala, Florida – Senior United States District Judge John Antoon II has sentenced Fiona Eyana Palmer (39, Wesley Chapel) to 15 months in federal prison for sexual abuse of an inmate. A federal jury had found Palmer guilty on April 11, 2023.
According to testimony and evidence presented at trial, Palmer was employed as a correctional officer at the Coleman Federal Correction Complex when she engaged in sexual acts with an inmate at the prison between January 2018 and March 2019. In two recorded phone calls between Palmer and the inmate, Palmer discussed the sexual acts and offered to send money to one of the inmate’s relatives. Palmer also directed the inmate to lie to federal investigators if asked about the sexual relationship.
This case was investigated by the U.S. Department of Justice – Office of Inspector General. It was prosecuted by Assistant United States Attorneys William S. Hamilton and Hannah Nowalk.
Florida Attorney Charged in Fraudulent Charitable Contribution Tax SchemeRead the Press Release
A federal grand jury in Fort Lauderdale returned a 34-count indictment, unsealed today, charging an attorney with conspiracy to defraud the United States, mail and wire fraud conspiracy, aiding and assisting in the preparation of false tax returns, conspiracy to obstruct an official proceeding, and other crimes arising out of his promotion of an illegal tax shelter scheme involving false charitable contribution tax deductions.
According to the indictment, Michael L. Meyer of Davie, Florida, organized and sold an illegal tax shelter called the Ultimate Tax Plan to assist high-income individuals in reducing their taxes. Meyer allegedly marketed the scheme as a way for clients to claim charitable contribution tax deductions without giving up control over the assets they purportedly donated to charity and advised that clients could still access their donated assets for their own personal use through tax-free loans and execute an “exit strategy” to buy back their donations at a significantly discounted rate. The indictment further alleges that, to execute the scheme, Meyer prepared the boilerplate transaction documents, prepared appraisals of the purported donations, assisted clients in filing false tax returns, and controlled the charities that received the purported donations. For several clients, Meyer and his co-conspirators allegedly created backdated transaction documents to make it appear that a client had made a charitable contribution in a prior year and, in turn, assisted clients to falsely claim charitable tax deductions for the prior year.
The indictment further alleges that Meyer represented clients in audits with the IRS, during three of which Meyer allegedly provided false documents to the IRS.
In April 2018, the United States filed a Complaint for Permanent Injunction and Other Relief against Meyer seeking to enjoin him from, among others, continuing to promote the Ultimate Tax Plan. The United States allegedly issued civil subpoenas to witnesses requesting records related to the Ultimate Tax Plan. In response to the civil subpoenas, Meyer and his co-conspirators allegedly prepared backdated documents and directed clients to submit those backdated documents in response to the subpoenas. Meyer also allegedly provided backdated documents in response to document requests from the United States. In April 2019, a federal district court entered a permanent injunction against Meyer. The indictment alleges that Meyer violated the terms of his permanent injunction through various means, including filing tax returns, assisting clients in taking charitable tax deductions, and providing advice on charitable tax deductions.
Since 2013, Meyer and his co-conspirators allegedly earned more than $10 million from selling the Ultimate Tax Plan. Meyer allegedly used that income to purchase a multi-million-dollar estate and a luxury vehicle collection that included Lamborghinis, Rolls Royces, Mercedes Benzes, a Bentley, and a Ferrari.
Meyer made his initial court appearance today before U.S. Magistrate Judge Alicia M. Otazo-Reyes of the Southern District of Florida. If convicted, Meyer faces a maximum penalty of five years in prison for conspiracy to defraud the United States, twenty years in prison for mail and wire fraud conspiracy, three years in prison for each false return count, three years for each count of endeavoring to impede the internal revenue laws, and twenty years each for obstructing and conspiracy to obstruct an official proceeding. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement.
IRS-Criminal Investigation is investigating the case.
Assistant Chief Michael Boteler and Trial Attorneys Casey S. Smith and Andrew Ascencio of the Justice Department’s Tax Division are prosecuting the case with assistance from the United States Attorney’s Office for the Southern District of Florida.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
First Tribal Community Response Plan Adopted in the District of OregonRead the Press Release
PORTLAND, Ore.—In a first for the District of Oregon, the Confederated Tribes of Warm Springs Tribal Council has unanimously adopted a Missing and Murdered Indigenous Persons (MMIP) Tribal Community Response Plan (TCRP).
“When someone goes missing from a Tribal community, it is an urgent and time-sensitive situation. A community response plan ensures that all available resources—government, law enforcement, and community members—are quickly deployed in support of a full and thorough investigation,” said Natalie Wight, U.S. Attorney for the District of Oregon. “We thank the Confederated Tribes of Warm Springs for their leadership in addressing this important issue.”
A TCRP is a guide for how Tribal law enforcement and community members will respond when someone goes missing from a Tribal community. TCRPs are tailored to the needs, resources, and culture of individual Tribal communities. The Warm Springs TCRP was created in partnership with the U.S. Attorney’s Office for the District of Oregon as part of the U.S. Department of Justice national MMIP initiative. The District of Oregon is one of six pilot program districts working to develop community response plans in accordance with this initiative.
The Warm Springs TCRP establishes four different sets of guidelines relevant to MMIP: law enforcement, victim services, public and media communications, and community outreach. The overall goal of the TCRP is to recognize the critical need for an immediate and consistent response to missing persons reports from the Warm Springs Indian Reservation, establish a formal process for responding to and investigating these reports, and outline the actions that will be taken by Tribal authorities.
In early 2022, the District of Oregon established an MMIP Working Group to increase multi-agency communication and collaboration in support of and response to Oregon-connected MMIP cases. The working group includes at least one representative from each of the nine federally recognized Tribes in Oregon, the FBI, Bureau of Indian Affairs, U.S. Department of Interior Regional Solicitor’s Office, U.S. Marshals Service, Oregon Department of Justice, Oregon State Medical Examiner’s Office, and Oregon State Police.
If you have questions about the U.S. Attorney’s Office MMIP program, please email USAOR.PublicAffairs@usdoj.gov or call (503) 727-1000.
Federal Contractor Agrees to Pay $7 Million to Settle False Claims Act AllegationsRead the Press Release
DETROIT - Foresee Results, Inc. and Verint Americas, Inc. (collectively, Foresee) have agreed to pay $7,000,000 to resolve allegations that they violated the False Claims Act by falsely representing to the United States that they used the methodology of the American Customer Satisfaction Index (ACSI) to measure customer satisfaction.
In 2011, the Federal Consulting Group (FCG), which is part of the United States Department of the Interior, awarded Foresee a five-year contract for website assessment and improvement services, through which Foresee agreed to measure the public’s satisfaction with certain government websites and make recommendations regarding how to improve satisfaction. In awarding the contract to Foresee, the FCG understood that Foresee would be applying the trusted methodology of the ACSI to provide federal agencies with an ACSI measurement. The settlement announced today resolves the government’s allegations that Foresee did not use the ACSI methodology, but instead used a different methodology to measure the public’s satisfaction with certain government websites.
“The False Claims Act is an important tool to deter and hold accountable those who misuse public funds,” said U.S. Attorney Dawn N. Ison for the Eastern District of Michigan. “Federal contractors must deal honestly with federal agencies, and this settlement demonstrates that our office will diligently investigate and hold accountable those companies that fail to uphold their end of the bargain.”
“Government contractors are expected to adhere to the requirements of their contracts and not cut corners in order to increase profits,” said Special Agent in Charge Jeffrey Ryan, Office of the Inspector General for the U.S. General Services Administration. “The U.S. Attorney’s Office, GSA-OIG, and DOI-OIG worked diligently to investigate these allegations, which resulted in a substantial settlement for the U.S. Government,” said Katie Balestra, Special Agent in Charge, Office of the Inspector General for the U.S. Department of Interior. “We will continue to work with our law enforcement partners to investigate those who commit fraud.”
The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by CFI Group USA, LLC and American Customer Satisfaction Index, LLC (collectively, Relators). Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. In this case, Relators will receive $1,540,000.00 as part of the settlement. The qui tam case is captioned United States ex rel. CFI Group USA, LLC, et al. v. Verint Americas, Inc., Case No. 19-12557 (E.D. Mich.).
The resolution was the result of a coordinated effort by the United States Attorney’s Office for the Eastern District of Michigan, the Office of the Inspector General for the U.S. General Services Administration, and the Office of the Inspector General for the U.S. Department of the Interior. The matter was handled by Assistant United States Attorney John Postulka from the U.S. Attorney’s Office for the Eastern District of Michigan.
The claims resolved by the settlement are allegations only; there has been no determination of liability.
Fairfield Man Sentenced to 10 Years in Prison for Being a Felon in Possession of a FirearmRead the Press Release
SACRAMENTO, Calif. — William Josiah Scrivner, 37, of Fairfield, was sentenced Thursday to 10 years in prison for being a felon in possession of a firearm, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on March 23, 2022, law enforcement officers observed Scrivner as the driver and sole occupant of a vehicle in the parking lot of the NorthBay Medical Center in Fairfield. The officers arrested Scrivner on an outstanding Solano County arrest warrant. A post-arrest search of his person and vehicle resulted in approximately 40 grams of methamphetamine, $551 on his person, and a digital scale found in his car. A probation search of Scrivner’s residence resulted in the discovery of two firearms, one of which was stolen, firearm parts and ammunition, additional methamphetamine, and two more scales. Scrivner is prohibited from possessing firearms or ammunition because he has been convicted of several felonies, including two prior convictions for possession of methamphetamine for sale and a prior conviction for being a felon in possession of ammunition.
This case was the product of an investigation by the Fairfield Police Department, the Solano County District Attorney’s Office, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the FBI’s Solano County Violent Crimes Task Force. Assistant U.S. Attorney Adrian T. Kinsella 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 U.S. Department of Justice 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.
Dominican Man Sentenced to over Seven Years in Prison for Fentanyl and Cocaine Trafficking and Illegal ReentryRead the Press Release
BOSTON – A Dominican man has been sentenced in federal court in Boston for trafficking fentanyl and cocaine, and for unlawful reentry of a deported alien.
Francisco Alberto Martinez, 52, was sentenced on July 19, 2023 by U.S. District Court Judge Nathaniel M. Gorton to 87 months in prison and five years of supervised release. On April 19, 2023, Martinez pleaded guilty to one count of distribution and possession with intent to distribute cocaine; three counts of distribution and possession with intent to distribute fentanyl; three counts of distribution and possession with intent to distribute 40 grams or more of fentanyl; one count of distribution and possession with intent to distribute 40 grams or more of fentanyl and cocaine; one count of possession with intent to distribute 40 grams or more of fentanyl and cocaine; and one count of unlawful reentry of a deported alien.
On nine separate occasions between August 2018 and May 2019, Martinez sold fentanyl and cocaine to a cooperating witness. Martinez first unlawfully entered the United States on an unknown date. In 2010, he was convicted in federal court in Boston of cocaine conspiracy and sentenced to 66 months in prison. Upon completion of his sentence in 2014, Martinez was deported to the Dominican Republic. Sometime after his removal, Martinez unlawfully reentered the United States and continued to distribute controlled substances.
Acting United States Attorney Joshua S. Levy; Christopher DiMenna, Acting Special Agent in Charge of the Federal Bureau of Investigation; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; and Peabody Police Chief Thomas M. Griffin made the announcement. Valuable assistance in the investigation was provided by the Massachusetts Department of Correction; Norfolk Sheriff’s Office; the Suburban Middlesex County Drug Task Force; and the Peabody, Concord, Reading, Watertown, Braintree, Waltham, Woburn, Salem, Revere, and Beverly Police Departments. Assistant U.S. Attorneys Craig Estes, Charles Dell’Anno and Alathea Porter of the Criminal Division are prosecuting the case.This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
District Man Sentenced to 20 Years in Prison for Killing His Childhood FriendRead the Press Release
WASHINGTON – Jean Paul Kearney, 36, of Washington, D.C., was sentenced to 20 years in prison for second degree murder while armed, and other charges, in connection with the April 4, 2021, shooting death of Dontra Harris. Superior Court Judge Maribeth Raffinan handed down the sentence on July 18, 2023, and also ordered five years of supervised release.
Kearney was convicted by a jury of assault on a police officer while armed, possession of a firearm during a crime of violence, obstruction of justice, unlawful possession of a firearm (prior conviction), and possession of a large capacity ammunition feeding device); he pleaded guilty on April 27, 2023 to second degree murder while armed..
According to the Government’s evidence, on April 4, 2021 shortly before 9 p.m., Kearney tailed his childhood friend, Dontra Harris, on a motorcycle. They both pulled over by the side of the road and verbally argued and then went their separate ways. Kearney, who lived nearby, went back home to switch out his motorcycle for his mother’s vehicle. He then drove to the victim’s apartment building and waited for 15 minutes for the victim to return home. When the victim attempted to enter his building, Kearney ambushed him, and shot him several times in the back. When law enforcement and paramedics arrived on scene, they located the victim near the front of the building and pronounced him dead. On May 13, 2021, when the Gun Recovery Unit executed a residential search warrant in connection with the homicide investigation, Kearney fired multiple times at the officers with an AK-47 assault rifle. Several days later, upon learning that the police had collected his cellphone during the warrant execution, Kearney provided his family member with instructions over the phone on how to remotely erase the contents of his phone.
Officers with the Metropolitan Police Department arrested Kearney on May 13, 2021. He has been in custody since.
In announcing the sentence, U.S. Attorney Matthew M. Graves and Acting Chief Pamela Smith, of the Metropolitan Police Department (MPD), commended the work of the MPD officers and detective who investigated the case. They acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Stephanie Gilbert and Debra Forte, Investigative Analyst Zachary McMenamin; Supervisory Victim/Witness Advocate Jennifer Clark; Victim/Witness Advocates Karina Hernandez and Paola Molina, Supervisory Victim Witness Service Coordinator Katina Adams-Washington; and Supervisory Litigation Technology Specialist Leif Hickling, and Litigation Technology Specialist William Henderson
Finally, they commended the work of Assistant U.S. Attorneys Sitara Witanachchi and Erin DeRiso, who investigated and prosecuted the case.
Delaware County Cherokee Citizen Convicted of MurderRead the Press Release
TULSA Okla. – A federal jury convicted James William Buzzard, 50, a Cherokee citizen and Delaware county resident of first-degree murder in Indian Country; assault with a dangerous weapon with intent to do bodily harm; and discharge of a firearm during the commission of a federal crime of violence. The crime occurred within the Cherokee Nation reservation.
“Today the jury convicted the last of three defendants for a brutal murder in rural Indian Country,” said U.S. Attorney Clinton Johnson. “This case follows a prolonged and meticulous investigation by our local, state, and federal law enforcement partners. Violent crime within the Northern District of Oklahoma will be thoroughly investigated and the perpetrators brought to justice.”
According to court documents and evidence presented at trial, on Aug. 1, 2019, the Delaware County Sheriff’s Office responded to a shooting near Jay, Okla. Deputies discovered Jerry Tapp deceased in his front yard. It appeared that Tapp sustained multiple gunshot wounds and that a second victim had a gunshot wound to her arm. According to court testimony, the surviving victim told investigators that she heard a noise outside the home early that morning. When she turned on the light and opened the door, she heard gunfire and felt a sudden pain in her wrist. The victim noticed a four-door car before she shut and locked the front door, crawled to another room, and called 911. While investigating the crime, OSBI agents located and seized multiple shell casings.
Dakota Buzzard, son of James Buzzard, was located by deputies from the McDonald County Sheriff’s Office driving a white 4-door Altima matching the surviving victim’s description. OSBI agents later found four spent shell casings inside the vehicle. Dakota provided the location of the rifle used, as well as additional bullets. During the investigation, the shell casings found at the scene of the crime were identified as having been fired by the same rifle.
On Aug. 6, 2019, investigators obtained Facebook records of Cody Buzzard, another son of James Buzzard. The day prior to the shooting, Cody made Facebook inquiries about getting a vehicle and firearm. He indicated that he “had business to tend to,” and he was going to “take care of a problem.”
During an interview with authorities, Dakota Buzzard stated that he, Cody, and James Buzzard drove toward Tapp’s residence, parked up the road from the home, and waited for him to return from work. James Buzzard allegedly told his sons to retrieve the rifle from the trunk of the car. Dakota stated that once Tapp drove by they followed him to his home where Tapp was shot and killed. Prosecutors proved the Buzzards aided and abetted one another to shoot and kill Tapp and then shoot his girlfriend.
The two brothers in this case, both Cherokee citizens from Grove, entered earlier pleas. Cody Dwayne Buzzard, 29, pled guilty to second degree murder in Indian Country; and brandishing and discharging a firearm during and in relation to a crime of violence. Dakota Chase Buzzard, 22, pled to conspiracy to carry, use, brandish, and discharge a firearm during and in relation to a crime of violence.
The FBI, Oklahoma State Bureau of Investigation, and the Delaware County Sheriff’s Office investigated the case.
Assistant U.S. Attorney’s Reagan Reininger, Eric Johnston, and Elizabeth Dick prosecuted the case.
Defendants Charged in Joint Federal, State, and Local Investigation of Firearms Trafficking and Drug DistributionRead the Press Release
DES MOINES, Iowa – Eleven defendants are facing federal criminal charges as part of a joint federal, state, and local law enforcement investigation. These charges result from a year-long investigation into violent acts, shootings, the possession and use of firearms, including the use of automatic switches, which qualify as machine guns under federal law, firearm straw purchasing, firearm trafficking, and distribution of fentanyl within the Des Moines area by members and associates of the criminal street gang OMB (Only My Brothers), a subset of the C-Block criminal street gang. During the investigation, law enforcement recovered shell casings at various shootings and generated investigative leads. Ninety-two guns were involved, with 73 of the involved guns seized.
“Federal, state, and local law enforcement agencies will continue to work side by side to aggressively investigate crimes of violence and conduct that promotes and sustains this violence, including the trafficking of fentanyl, firearms trafficking, and straw purchasing,” stated United States Attorney Richard Westphal. “Our thanks to the dedicated local, state and federal law enforcement agents and officers whose tireless dedication to the protection of this community is exemplified by this investigation. To individuals and groups that use violent crime, firearms and drug trafficking as a means to any end, please stop or face similar consequences.”
Eleven defendants are charged in five criminal indictments with federal drug and firearm related offenses:
• Armani Eugene Gates, 19, also known as “OMB74” and “74,” of Des Moines,
• Majok Majok, 18, also known as “Jok” and “Magok Magok,” of Des Moines,
• Trent Douglas Brown, Jr., 19, also known as “TB,” of Des Moines,
• Semaj Johnson, 19, also known as “Maj” and “10mill,” of Des Moines,
• Santiz Cortez Langford, Jr., 19, also known as “Tiz” and “Tizwick,” of Des Moines,
• Dawn Ellease Robinson, 44, also known as “Dawn Ellease Colbert,” of Des Moines,
• Deon Ellease Cooper, 27, of Des Moines,
• Deadrian Maurice Nelson, 18, also known as “Shiesty” and “D,” of Des Moines,
• Johnetta Marie Strode, 36, of Des Moines,
• Avontae Lamar Tucker, 20, also known as “Tae Tae,” of Des Moines, and
• Bakier Esmaeil, 18, of Des Moines.On July 20, 2023, federal, state, and local law enforcement agencies executed nine federal search warrants that resulted in the arrest of eleven defendants, two of which were already in federal custody. The search warrants also lead to the seizure of approximately 13,000 suspected fentanyl pills, seven firearms, one machine gun conversion device, and $23,000 in cash.
According to public court documents and information discussed at court hearings, Strode is Nelson’s mother and allegedly conspired to straw purchase a firearm, later found in Nelson’s possession. Robinson is the mother of both Langford and Cooper and allegedly conspired with Langford to straw a purchase a firearm later found in possession of a victim in the January 2023 Starts Right Here double homicide in Des Moines. Cooper, who is Langford’s sister, is also alleged to have purchased firearms at Langford’s direction.
Gates, Majok, and Brown are charged with conspiracy to distribute fentanyl. This charge carries a mandatory minimum sentence of ten years in prison, up to life in prison.
Gates, Cooper, Langford, Robinson, and Strode are charged with conspiracy to straw purchase firearms. Cooper and Robinson were charged with individually straw purchasing firearms. These charges carry a maximum sentence of 15 years in prison, with Gates facing a maximum of 25 years in prison.
Cooper, Robinson, and Strode are charged with false statement during the purchase of a firearm. These charges carry a maximum sentence of five to 10 years in prison.
Gates, Majok, Johnson, and Langford are charged with firearm trafficking conspiracies. Langford was charged with firearms trafficking. These charges carry a maximum sentence of 15 years in prison.
Johnson and Tucker are charged with possession with intent to distribute fentanyl. Gates, Brown, and Majok were charged with distribution of fentanyl. These charges carry a maximum penalty of 20 years in prison.
Langford is charged with possession with intent to distribute marijuana. This charge carries a maximum penalty of five years in prison.
Tucker is charged with possession with intent to distribution five grams or more of methamphetamine. This charge carries a minimum sentence of five years in prison and a maximum sentence of 40 years in prison. Tucker is also charged with possessing and brandishing a firearm in furtherance of a crime of violence, which carries a mandatory seven-year consecutive sentence, up to life in prison. Further, Tucker is charged with interference with commerce through robbery. This charge carries a maximum penalty of 20 years in prison.
Johnson and Tucker are charged with possession of a firearm in furtherance of a drug trafficking crime. This charge carries a mandatory five-year consecutive sentence, up to life in prison.
Majok and Langford are charged with illegal possession of a machinegun. Majok and Langford were also charged with possession of a machinegun in furtherance of a drug trafficking crime. These charges carry a mandatory 30-year consecutive sentence, up to life in prison.
Gates, Esmaeil, Johnson, Majok, Robinson, Langford, Strode, and Tucker are charged with being an unlawful drug user in possession of a firearm. Nelson was charged with being a felon and an unlawful drug user in possession of a firearm. These charges carry a maximum penalty of 10 to 15 years in prison.
A federal district court judge will determine any sentence after considering the United States Sentencing Guidelines and other statutory factors.
The charges were announced by Richard D. Westphal, United States Attorney for the Southern District of Iowa; Bernard Hansen, Special Agent-in-Charge of the Kansas City Field Division of the Bureau of Alcohol, Tobacco, Firearms, and Explosives; Bryan Musgrove, Postal Inspector in Charge of the Denver Division of the United States Postal Inspection Service; and Dana Wingert, Chief of Police of the Des Moines Police Department. Assistant United States Attorneys Kristin Herrera and Mallory Weiser are prosecuting the case.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Des Moines Police Department, and the United States Postal Inspection Service are investigating the case, with assistance from the Iowa Division of Narcotics Enforcement (DNE), Iowa State Patrol, Iowa Division of Intelligence and Fusion Center, Iowa State Patrol SWAT, United States Marshals Service, Clive Police Department, West Des Moines Police Department, Ames Police Department, Altoona Police Department, Mid-Iowa Narcotics Task Force, Polk County Sheriff’s Office, Suburban Emergency Response Team (SERT), and Metro Special Tactics and Response (STAR).
This investigation is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt.
Defendant on the Run for 12 Years Extradited from Spain to Face Child Pornography Charges in Miami Federal CourtRead the Press Release
MIAMI – After skipping bond and remaining on the lam for 12 years, 71-year-old Carlos Blanco has been extradited from Spain to the United States to face federal child pornography possession and distribution charges in the Southern District of Florida. Blanco made his initial appearance in Miami federal court this week after arriving on a flight from Spain, where he was arrested pursuant to a request from the U.S. government.
Federal law enforcement originally arrested Blanco (a citizen of the United States, Honduras, and Cuba) on November 3, 2010, charging him by criminal complaint with possessing and distributing child pornography. He was released on bond following initial hearings before a federal magistrate judge. Following a grand jury’s decision to indict Blanco, the court set a February 24, 2011 hearing, at which Blanco was expected to plead guilty. Blanco failed to appear for the change of plea hearing, and the judge issued an arrest warrant. The court declared Blanco a fugitive on February 25, 2011 -- a designation Blanco held for over 12 years.
In March 2023, Blanco was arrested in Spain pursuant to a request for his provisional arrest made by the U.S. Department of Justice Criminal Division’s Office of International Affairs (OIA). Blanco consented to his extradition to the United States. Blanco lived in Spain from July 2022 through the date of his arrest. Before that, he lived in Honduras for 11 years.
Markenzy Lapointe, U.S. Attorney for the Southern District of Florida, and Jeffrey B. Veltri, Special Agent in Charge, FBI Miami, announced the extradition.
U.S. Attorney Lapointe extends his gratitude to FBI Miami’s Crimes Against Children and Human Trafficking Task Force and the government of Spain for making the extradition possible, as well as OIA for its significant assistance in securing the defendant’s extradition. The U.S. Attorney also extends his gratitude to the Spanish Civil Guard and Interpol for their assistance in capturing this fugitive and in bringing him back to the United States.
FBI Miami investigated the criminal case against Blanco, which Assistant U.S. Attorney Cory O’Neal is prosecuting.
An indictment is merely an accusation, and a defendant is innocent until proven guilty in a court of law.
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 Case #10-20837-CR-King.
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Daviess County Man Pleads Guilty to Defrauding Covid Agricultural ProgramRead the Press Release
KANSAS CITY, Mo. – A Jameson, Mo., man has pleaded guilty in federal court to defrauding the Coronavirus Food Assistance Program, a program created by the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
Troy Jennings, 49, waived his right to a grand jury and pleaded guilty before Chief U.S. District Judge Beth Phillips to a federal information that charges him with one count of theft of government funds.
The Coronavirus Food Assistance Program (CFAP)—a program administered by the United States Department of Agriculture through the Farm Service Agency (FSA)—was created to provide financial assistance to producers of agricultural commodities during the coronavirus pandemic. As part of the program, cattle producers could receive a per-head payment for cattle sold between January 15, 2020, and April 15, 2020.
In June 2020, Jennings provided false information on his CFAP application regarding the number of cattle he sold. When asked by the FSA to substantiate his numbers, Jennings submitted multiple fraudulent documents and activated a pre-paid phone in an attempt to impersonate another man.
As part of his plea agreement, Jennings will be required to pay restitution in the amount of $114,267, the full amount he received from the CFAP.
Under federal statutes, Jennings is subject to a sentence of up to 10 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes only, as the sentence of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Nicholas P. Heberle. It was investigated by the U.S. Department of Agriculture Office of Inspector General.
Davenport Woman Sentenced to Six Months in Prison Related to PerjuryRead the Press Release
DAVENPORT, IA – A Davenport woman was sentenced today to six months in federal prison for providing false statements during federal grand jury testimony.
According to court documents and evidence presented at sentencing, LaRhonda Dawnielle Jenkins, 30, was present at a shooting at the Dam View Inn in Davenport on March 9, 2021, where an individual was shot multiple times. When Jenkins was called to testify at federal grand jury proceedings, Jenkins lied about her knowledge of the identified shooter.
After completing her term of imprisonment, Jenkins will be required to serve three years of supervised release. There is no parole in the federal system.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. This case was investigated by the Davenport Police Department.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. In May 2021, the Department of Justice 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.Danville, Illinois, Man Sentenced to 25 Years in Prison for Possession of a Firearm by a Felon as an Armed Career CriminalRead the Press Release
URBANA, Ill. – A Danville, Illinois, man, Alvin Beasley, 38, was sentenced today to 300 months of imprisonment, to be followed by a five-year term of supervised release, after being convicted of possessing a firearm as a felon following a jury trial in September 2021.
At the sentencing hearing in front of U.S. District Judge Colin S. Bruce, the government highlighted evidence that Beasley did not just possess a firearm, he discharged several shots at his pregnant girlfriend’s Danville home during a drive-by shooting while she was inside the residence. Beasley was on parole for a second-degree murder conviction at the time. In addition, the government pointed to jailhouse phone calls made after the shooting where Beasley said he “just snap[s] out for no reason” and wants to “hurt people.” Beasley also explained during another call that he was tired of dealing drugs and “just want[ed] to kill people.”
Judge Bruce found that Beasley qualified as an Armed Career Criminal based on his prior state convictions for armed robbery, aggravated battery, and second-degree murder. That determination raised Beasley’s statutory penalties to fifteen years to life imprisonment.
Judge Bruce further noted that the facts of Beasley’s case were serious and troubling and stated that Beasley attempted to obstruct justice with his testimony at trial. Specifically, after hearing the evidence against him, Beasley took the stand and admitted that he shot at his pregnant girlfriend’s residence, but tried to claim that he did so with a different gun than the one he was charged with possessing. The jury rejected his testimony and found him guilty.
“Gun violence has no place in our communities, said U.S. Attorney Gregory K. Harris. “The U.S. Attorney’s Office for the Central District of Illinois will continue to work with our federal, state, and local law enforcement partners to protect our communities and ensure those who engage in gun violence are held accountable.”
The case was investigated by the Danville Police Department, the Vermilion County Sheriff’s Office, the Vermilion County Metropolitan Enforcement Group, the Illinois State Police, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorneys Bryan Freres and William Lynch represented the United States in this prosecution.
Convicted Felon Sentenced to More Than Four Years in Federal Prison for Possession of AmmunitionRead the Press Release
Tampa, FL – U.S. District Judge Charlene Honeywell has sentenced Dartis Cobb (35, St. Petersburg) to four years and three months in federal prison for possessing ammunition as a convicted felon. Cobb had pleaded guilty on March 9, 2023.
According to court documents, on August 13, 2022, deputies with the Pinellas County Sherriff’s Office attempted to pull over a vehicle being driven by Cobb. Cobb refused to stop the car and fled from the deputies, leading them on a chase through a neighborhood. Eventually, deputies were able to stop the vehicle on a residential street. They then placed Cobb under arrest for felony fleeing and recovered one round of 9 mm ammunition from Cobb’s front pants pocket.
Deputies also located a bag in the passenger seat. The bag was open, and deputies could see the magazine well of a firearm sticking out of the bag. They could also see the magazine was inside the well. Deputies took the weapon and the magazine containing 12 rounds of 9mm ammunition into evidence. They deputies also concluded that the firearm appeared to be a “ghost gun” with no identifiable or traceable components. This was later confirmed by agents with ATF.
Cobb has previously been convicted of two felonies including robbery and possession of a firearm by a convicted felon. He is therefore prohibited from possessing firearms or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Pinellas County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Samantha Newman. Assistant United States Attorney Suzanne Nebesky is handling the forfeiture.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Columbia Falls felon sentenced to 15 years in prison for illegal possession of firearmRead the Press Release
MISSOULA — A Columbia Falls man with multiple felony convictions was sentenced on July 20 to 15 years in prison, to be followed by five years of supervised, for illegally possessing a loaded shotgun, U.S. Attorney Jesse Laslovich said today.
Christopher Glenn Lakey, 35, pleaded guilty in March to prohibited person in possession of a firearm and ammunition.
U.S. District Judge Donald W. Molloy presided. In sentencing Lakey, the court applied a enhancement under the Armed Career Criminal Act, which provides that a defendant convicted of felon in possession is subject to a mandatory sentence of 15 years of imprisonment if the defendant has three prior convictions for a serious drug offense or a violent felony.
The government alleged in court documents that on Jan. 18, 2022, the Flathead County Sheriff’s Office learned that Lakey was leaving Columbia Falls in a pickup truck and may have weapons in his possession. Deputies knew about an outstanding federal warrant for Lakey and located the truck. Lakey fled from law enforcement, driving at more than 100 mph toward Whitefish. During his flight, Lakey threw a stolen 12-gauge shotgun out the window. The shotgun was recovered the next day from the side of the road. The shotgun had one round chambered and four in the tube. Two 12-gauge shells were found during a probation search of his abandoned truck. Lakey had prior felony convictions for criminal endangerment, burglary and robbery and was prohibited from possessing firearms.
The U.S. Attorney’s Office prosecuted the case. The FBI, Flathead County Sheriff’s Office, Montana Probation and Parole, Whitefish Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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Carroll Man Pleads Guilty to Federal Gun and Drug ChargesRead the Press Release
Darwin Robinson, Jr., age 45, from Carroll, Iowa, was convicted of illegally possessing a firearm and possessing methamphetamine with intent to distribute. Robinson pled guilty July 20, 2023, in federal court in Sioux City.
Robinson was previously convicted of cocaine-possession and three domestic abuse assaults which prohibited him from possessing firearms.
At the plea hearing, Robinson admitted that he had these convictions and that he was a regular user of methamphetamine and possessed a .40 caliber handgun. On March 22, 2021, law enforcement stopped the vehicle Robinson was driving and officers seized two small bags of methamphetamine from Robinson and a loaded .40 caliber handgun from the vehicle. Robinson admitted that he planned on selling some or all the methamphetamine that was found.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Robinson remains in the custody of the United States Marshal pending sentencing. On the firearm conviction, Robinson faces a possible maximum sentence of 10 years’ imprisonment, a $250,000 fine, and not more than three years of supervised release following any imprisonment. Robinson faces a possible maximum sentence of 20 years’ imprisonment, a $1,000,000 fine, and three years up to life of supervised release on the possession with intent to distribute conviction.
The case is being prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by the Iowa Division of Narcotics Enforcement, Carroll, Iowa Police Department, Iowa DCI Criminalistics Laboratory, and Bureau of Alcohol, Tobacco, Firearms and Explosives.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 23-3002.
Follow us on Twitter @USAO_NDIA.
California Woman Sentenced to Prison for Embezzling More Than $1 Million from EmployerRead the Press Release
MINNEAPOLIS – A California woman was sentenced to 66 months in prison, two years of supervised release, and ordered to pay $1,791,334.81 in restitution for embezzling more than $1 million from her employer, announced United States Attorney Andrew M. Luger.
According to court documents, Mai Houa Xiong, 47, of Fresno, California, was employed as a financial manager for a Minneapolis-based property management company that provided financial services to homeowners’ associations (HOAs) throughout the Twin Cities metro area. Xiong’s duties included bookkeeping, and as manager she had nearly unfettered access to the victim homeowner’s associations’ financials, bank accounts, vendor and contractor payments, and bookkeeping systems. Between February 2015 and February 2022, Xiong devised and executed a fraud scheme to embezzle funds directly from the accounts to which she had access. These funds were HOA fees collected from residents intended to pay for maintenance, construction, and other costs incurred by the victim associations.
As part of the scheme, Xiong repeatedly accessed the HOAs’ bank accounts and conducted electronic transfers of funds directly into her personal bank accounts. Xiong disguised these transfers by mis-labeling them to make it appear as if they were legitimate HOA expenses. Xiong also used her authority as a signatory to make cash withdrawals directly from the HOAs’ accounts, including making withdrawals after she was fired from her position in July 2021. After her termination, Xiong began collecting Unemployment Insurance (UI) funds. However, even after Xiong found new employment, she continued to wrongfully obtain public UI benefits.
Xiong pleaded guilty on March 9, 2023, to one count of wire fraud, one count of aggravated identity theft, and one count of making and subscribing a false tax return. Xiong was sentenced today before Chief Judge Patrick J. Schiltz.
This case is the result of an investigation conducted by the IRS – Criminal Investigations, the Minnesota Bureau of Criminal Apprehension, and the Minneapolis Police Department.
This case was prosecuted by Assistant U.S. Attorney Allison K. Ethen.
Brooksville Man Sentenced to 15 Years in Federal Prison for Possessing Firearm as an Armed Career CriminalRead the Press Release
Ocala, Florida – Senior United States District Judge John Antoon II has sentenced Wayne Allen Phillips, Jr. (45, Brooksville) to 15 years in federal prison for possession of a firearm and ammunition by a previously convicted felon. Phillips was found guilty after a trial on April 11, 2023.
According to testimony and evidence presented at trial, deputies from the Sumter County Sheriff’s Office encountered Phillips while attempting to serve a warrant for his arrest on another matter. Phillips ran from the deputies but was apprehended after a brief foot chase. A search of his person revealed a revolver loaded with five rounds of ammunition in his pants pocket. Phillips has numerous previous state felony convictions, including shooting into an occupied building, strongarm robbery, sale of cocaine, and fleeing and eluding law enforcement. As a previously convicted felon, he is prohibited from possessing a firearm or ammunition under federal law. Moreover, Phillips’s prior felony convictions qualified him for a sentencing enhancement as an Armed Career Criminal.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Sumter County Sheriff’s Office. It was prosecuted by Assistant United States Attorney William S. Hamilton.
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.
Booz Allen Agrees to Pay $377.45 Million to Settle False Claims Act AllegationsRead the Press Release
WASHINGTON - Booz Allen Hamilton Holding Corporation has agreed to pay the United States $377,453,150 to resolve allegations that it violated the False Claims Act by improperly billing commercial and international costs to its government contracts. Booz Allen, which is headquartered in McLean, Virginia, provides a range of management, consulting, and engineering services to the Government, as well as commercial and international customers.
Under government contracting rules, there must be a nexus between the costs charged to a government contract and the objective of the contract. Thus, a contractor may charge to a government contract costs directly related to that contract, as well as indirect costs that benefit multiple contracts including the government contract. A contractor may not charge costs to a government contract, however, that have no relationship to that contract. This prohibition prevents government contractors from using taxpayer funds to subsidize non-government related work.
The settlement announced today resolves allegations that from approximately 2011 to 2021, Booz Allen improperly charged costs to its government contracts and subcontracts that instead should have been billed to its commercial and international contracts. In particular, the government alleged that Booz Allen improperly allocated indirect costs associated with its commercial and international business to its government contracts and subcontracts that either had no relationship to those contracts and subcontracts or were allocated to those contracts and subcontracts in disproportionate amounts. The government further alleged that Booz Allen failed to disclose to the Government the methods by which it accounted for costs supporting its commercial and international businesses. As a result, Booz Allen obtained reimbursement from the government for the costs of commercial activities that provided no benefit to the United States.
“This settlement, which is one of the largest procurement fraud settlements in history, demonstrates that the United States will pursue even the largest companies and the most complex matters where taxpayer funds are alleged to have been pilfered,” said U.S. Attorney for the District of Columbia Matthew M. Graves. “The Justice Department is committed to ferreting out all fraud, waste, and abuse in government programs—small or large, simple or complex.”
“Government contractors must turn square corners when billing the government for costs under government contracts,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “Today’s settlement demonstrates our commitment to hold accountable contractors that knowingly overcharge the government and enrich themselves at the expense of the American taxpayers.”
“DCAA appreciates the opportunity to support the Justice Department and our law enforcement partners by providing expert financial assistance regarding enforcement of the False Claims Act,” said Director Terri Dilly for the Defense Contract Audit Agency. “This interagency cooperation provides a strong safeguard for appropriate use of taxpayer dollars.”
The settlement resolved a lawsuit filed under the qui tam or whistleblower provision of the False Claims Act, which permits private parties to file suit on behalf of the United States for false claims and share in a portion of the Government’s recovery. The qui tam lawsuit was filed by Sarah Feinberg, a former Booz Allen employee, and is captioned United States ex rel. Feinberg, v. Booz Allen Hamilton, Inc., Civ. A. No. 16-1911 (D.D.C.). Ms. Feinberg will receive $69,828,832 in connection with the settlement.
The resolution obtained in this matter was the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch, Fraud Section, the U.S. Attorney’s Office for the District of Columbia, the Defense Contract Management Agency’s Contract Integrity Center, and the Defense Contract Audit Agency’s Operations Investigative Support Division, with assistance by agents from the Defense Criminal Investigative Service and Federal Bureau of Investigation, and Inspector Generals from the Central Intelligence Agency, National Security Agency, U.S. Postal Service, U.S. Army, U.S. Air Force, National Reconnaissance Office, Department of Homeland Security, and National Geospatial Intelligence Agency.
The case was handled by Trial Attorneys Dan Schiffer and Chris Reimer of the Civil Division and Assistant U.S. Attorney Brian Hudak with the U.S. Attorney's Office for the District of Columbia, with assistance from the Defense Contract Audit Agency's Operations Investigative Support Division, in particular DCAA Auditors Igor Yegoroff, Myron Antoniw, and Tim Chase.
The case is captioned United States ex rel. Feinberg v. Booz Allen Hamilton, Inc., Civ. A. No. 16-1911 (ACR) (D.D.C.). The claims alleged in the case are allegations only, and there has been no determination of liability.
Booz Allen Agrees to Pay $377.45 Million to Settle False Claims Act AllegationsRead the Press Release
Booz Allen Hamilton Holding Corporation has agreed to pay the United States $377,453,150 to resolve allegations that it violated the False Claims Act by improperly billing commercial and international costs to its government contracts. Booz Allen, which is headquartered in McLean, Virginia, provides a range of management, consulting, and engineering services to the government, as well as commercial and international customers.
Under government contracting rules, there must be a nexus between the costs charged to a government contract and the objective of the contract. Thus, a contractor may charge to a government contract costs directly related to that contract, as well as indirect costs that benefit multiple contracts including the government contract. A contractor may not charge costs to a government contract, however, that have no relationship to that contract. This prohibition prevents government contractors from using taxpayer funds to subsidize non-government related work.
The settlement announced today resolves allegations that from approximately 2011 to 2021, Booz Allen improperly charged costs to its government contracts and subcontracts that instead should have been billed to its commercial and international contracts. In particular, the government alleged that Booz Allen improperly allocated indirect costs associated with its commercial and international business to its government contracts and subcontracts that either had no relationship to those contracts and subcontracts or were allocated to those contracts and subcontracts in disproportionate amounts. The government further alleged that Booz Allen failed to disclose to the government the methods by which it accounted for costs supporting its commercial and international businesses. As a result, Booz Allen obtained reimbursement from the government for the costs of commercial activities that provided no benefit to the United States.
“Government contractors must turn square corners when billing the government for costs under government contracts,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “Today’s settlement demonstrates our commitment to hold accountable contractors that knowingly overcharge the government and enrich themselves at the expense of the American taxpayers.”
“This settlement, which is one of the largest procurement fraud settlements in history, demonstrates that the United States will pursue even the largest companies and the most complex matters where taxpayer funds are alleged to have been pilfered,” said U.S. Attorney Matthew M. Graves for the District of Columbia. “The Justice Department is committed to ferreting out all fraud, waste, and abuse in government programs — small or large, simple or complex.”
"The Defense Contract Audit Agency (DCAA) appreciates the opportunity to support the Justice Department and our law enforcement partners by providing expert financial assistance regarding enforcement of the False Claims Act," said Director Terri Dilly of the DCAA. "This interagency cooperation provides a strong safeguard for appropriate use of taxpayer dollars."
The settlement resolved a lawsuit filed under the qui tam or whistleblower provision of the False Claims Act, which permits private parties to file suit on behalf of the United States for false claims and share in a portion of the Government’s recovery. The qui tam lawsuit was filed by Sarah Feinberg, a former Booz Allen employee, and is captioned United States ex rel. Feinberg, v. Booz Allen Hamilton, Inc., Civ. A. No. 16-1911 (D.D.C.). Ms. Feinberg will receive $69,828,832 in connection with the settlement.
The resolution obtained in this matter was the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch, Fraud Section, the U.S. Attorney’s Office for the District of Columbia, the Defense Contract Management Agency’s Contract Integrity Center, and the DCAA’s Operations Investigative Support Division, with assistance by agents from the Defense Criminal Investigative Service and FBI, and Inspector Generals from the Central Intelligence Agency, National Security Agency, U.S. Postal Service, U.S. Army, U.S. Air Force, National Reconnaissance Office, Department of Homeland Security, and National Geospatial Intelligence Agency.
This matter was handled by attorneys Dan Schiffer and Chris Reimer of the Civil Division and Assistant U.S. Attorney Brian Hudak for the District of Columbia, with assistance from DCAA's Operations Investigative Support Division, in particular DCAA Auditors Igor Yegoroff, Myron Antoniw, and Tim Chase.
The claims resolved by this settlement are allegations only. There has been no determination of liability.
SettlementBay St. Louis Man Sentenced to over 11 Years in Prison for Possession with Intent to Distribute MethamphetamineRead the Press Release
Gulfport, Miss. – A Bay St. Louis man was sentenced to 136 months in prison for possession with intent to distribute methamphetamine, announced U.S. Attorney Darren J. LaMarca and Special Agent in Charge Brad L. Byerley of the Drug Enforcement Administration.
Reynard Joseph Elzy, 40, was sentenced in U.S. District Court in Gulfport.
According to court records, a confidential source purchased methamphetamine from Elzy in Bay St. Louis. A search warrant was executed on Elzy’s residence and additional narcotics and a firearm were found. Elzy was on parole through the Mississippi Department of Corrections at the time of the offense.
Elzy was indicted by a federal grand jury on January 25, 2023. He pled guilty to one count of possession with intent to distribute methamphetamine on April 19, 2023.
The case was investigated by the Drug Enforcement Administration and the Hancock County Sheriff’s Office.
The case was prosecuted by Assistant U.S. Attorney Erica Rose.
Alleged Drug Dealer Facing Federal Charges Following Fentanyl DeathRead the Press Release
Salt Lake City, Utah – A federal grand jury in Salt Lake City returned an indictment charging a Weber County man for allegedly possessing fentanyl with intent to distribute, which led to another person’s death by drug intoxication.
According to court documents, in February 2023, Spencer Massengale, 31, of Ogden, Utah, knowingly possessed with the intent to distribute Fentanyl in the District of Utah, which resulted in death. According to the allegations, the victim was found unresponsive on the couch at Mr. Massengale’s residence by Massengale’s roommate. Upon Massengale’s return home, neither he nor the roommate called 911 until Massengale ensured his fentanyl had been hidden. After obtaining a search warrant for Mr. Massengale’s residence, police discovered approximately 330 pills containing fentanyl. Additionally, evidence obtained from Massengale’s cell phone shows the victim one week prior suffering from the effects of a near-fatal overdose.
Massengale is charged with possession of fentanyl with intent to distribute resulting in death. He was arraigned on the indictment before a U.S. Magistrate Judge on July 14, 2023. His detention hearing is scheduled for July 21, 2023, at 11:00 a.m. in courtroom 8.4 at the Orrin G. Hatch United States District Courthouse in downtown Salt Lake City.
U.S. Attorney, Trina A. Higgins, of the District of Utah made the announcement.
The case is being investigated by the Weber Morgan Narcotics Strike Force and prosecuted by Assistant United States Attorneys.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Alexis Candelario Santana Convicted at a Retrial of 40 Counts of Drug Trafficking, 9 Murders, and 19 Attempted Murders for the October 2009 La Tómbola Massacre in Toa Baja, Puerto RicoRead the Press Release
SAN JUAN, Puerto Rico – A federal jury convicted Alexis Candelario Santana today for: violations of the Racketeer Influenced and Corrupt Organizations Act, 8 murders, the murder of an unborn child, 19 attempted murders, drug trafficking, and being a felon in possession. United States District Court Senior Judge Francisco A. Besosa presided over the retrial that commenced on June 20, 2023.
Alexis Candelario Santana, 51, faces life in prison following his conviction of murdering eight people and an unborn child and attempting to murder 19 others during a mass shooting that occurred at a Puerto Rico on Oct. 17, 2009, in what became known as the “La Tómbola Massacre.”
Candelario Santana was convicted of 28 counts of violent crime in aid of racketeering activity, one count of racketeering conspiracy, nine counts of using a firearm in relation to a crime of violence, one count of conspiracy to possess with intent to distribute a controlled substance and one count of possession of a firearm with a prior conviction.
According to the evidence presented at trial, from approximately 1993 through 2003, Candelario Santana was the leader of a drug trafficking organization that operated in the Sabana Seca ward of Toa Baja, Puerto Rico. The organization purchased drugs in bulk, processed and packaged the drugs, and sold them in Sabana Seca through numerous sellers, runners, and enforcers under Candelario Santana’s direction and control. The organization trafficked in crack, cocaine, heroin, and marijuana. The members of the organization routinely possessed firearms to protect their drug points. The evidence introduced at trial also established that, between 1995 and 2001, Candelario Santana either personally killed, or ordered others to kill, 13 individuals whom he viewed as threats or as disloyal members of his drug trafficking organization.
Around 2002, Candelario Santana was arrested and charged in the Commonwealth of Puerto Rico with numerous murders. Initially, Candelario Santana maintained control of the drug trafficking organization from prison with assistance from co-defendant Carmelo Rondón Feliciano, who had taken charge of the drug trafficking organization’s activities. Sometime in 2004 Candelario Santana was marginalized by co‑conspirators Wilfredo Semprit Santana and Rondón Feliciano. On September 25, 2006, however, Rondón Feliciano was arrested and charged in the District of Puerto Rico with federal drug trafficking crimes. These charges stemmed, in part, from Rondón Feliciano’s distribution of narcotics in Sabana Seca. After Rondón Feliciano’s arrest, co‑conspirator Semprit Santana assumed control of the drug trafficking organization in Sabana Seca. According to evidence presented at the second trial, Candelario Santana became infuriated at being removed from power within the drug trafficking organization.
Candelario Santana was released from prison in February 2009. Thereafter, on October 17, 2009, Semprit Santana held a grand opening of a pub he rented in Toa Baja, Puerto Rico called La Tómbola. The event was heavily attended, with people congregating inside and outside the establishment. At approximately 11:50 p.m., Candelario Santana and others, drove to La Tómbola. When they arrived, they immediately opened fire on the patrons outside the establishment. Candelario Santana and others also entered the pub and opened fire on the people inside.
Eight people and an 8-month unborn child were killed because of the gunfire. 19 other victims were also shot and injured. Those killed included Candelario Santana’s godson, Rondón Feliciano’s stepson and Candelario Santana’s cousin. The evidence presented at trial included 335 expended shell-casings recovered from the La Tómbola crime scene. The ballistics evidence established that 17 different firearms were used during the massacre, which included the following calibers: 9 mm, .40, 45, AK-47, and AR-15.
Candelario Santana is scheduled to be sentenced on October 27, 2023.
U.S. Attorney W. Stephen Muldrow of the District of Puerto Rico and Joseph González, Special Agent in Charge of the FBI San Juan Field Office, made the announcement.
The case was investigated by FBI and the Puerto Rico Police Bureau, with the collaboration of U.S. Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives; the U.S. Postal Inspection Service; Instituto de Ciencias Forenses; and the Puerto Rico Department of Justice.
Assistant U.S. Attorneys Víctor Acevedo-Hernández and Scott Anderson prosecuted the case.
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Adair County Resident Pleads Guilty to Coercion and Enticement and Felon in Possession of A FirearmRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Jakoma Twohat Sanders, age 35, of Adair County, Oklahoma entered a guilty plea to one count of Coercion and Enticement, and one count of Felon in Possession of a Firearm.
The Indictment alleged that beginning on or about June 5, 2018, and continuing until on or about August 6, 2018, Sanders used a means of interstate commerce to knowingly persuade, induce, entice, and coerce a minor child to engage in sexual activity. The Indictment also alleged that on September 24, 2019, Sanders was found to knowingly be in possession of a firearm while having previously been convicted of a felony punishable by more than one year in prison.
The charges arose from an investigation by Homeland Security Investigations, the Oklahoma State Bureau of Investigation, and the National Center for Missing and Exploited Children.
The investigation began after Oklahoma State Bureau of Investigation received a tip from the National Center for Missing and Exploited Children about the Sanders communicating with minor females over the internet and inducing them to engage in sexual activity. When the defendant was arrested, he was found to be in possession of a firearm after having previously been convicted of a felony.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the tab “Resources.”
If you have information about the physical or online exploitation of children, please call the FBI at 1-800-CALL-FBI (1-800-225-5324) or submit a tip online at tips.fbi.gov. You can also contact the National Center for Missing and Exploited Children at 1-800-THE–LOST (1-800-843-5678) or submit a tip online at report.cybertip.org.
The Honorable Judge Gerald L. Jackson, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma in Muskogee, accepted the plea and ordered the completion of a presentence investigation report. Sanders was remanded to the custody of the U.S. Marshal pending sentencing.
Assistant United States Attorneys Morgan Muzljakovich and Caila Cleary represented the United States.
20 Apprehended in Lubbock Drug, Gun BustRead the Press Release
Twenty people were apprehended in a large-scale drug enforcement operation Wednesday, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
The defendants were charged in 14 separate indictments with a total of 37 counts, including distribution of fentanyl, distribution of methamphetamine, and felon in possession of a firearm. Seven people charged in the scheme remain fugitives.
Those apprehended include:
- Erik Hans Grosstueck: conspiracy to possess with intent to distribute fentanyl, possession with intent to distribute fentanyl
- Brian Jacob Miller: conspiracy to possess with intent to distribute fentanyl, possession with intent to distribute fentanyl
- Alexander Erik Pierce: conspiracy to possess with intent to distribute fentanyl, distribution of fentanyl
- Matthew Ryan Chandler: conspiracy to possess with intent to distribute fentanyl, possession with intent to distribute fentanyl
- Loddy Max Montoya: conspiracy to possess with intent to distribute fentanyl, possession with intent to distribute fentanyl
- Trey Matthew Parrish: conspiracy to possess with intent to distribute fentanyl, distribution of fentanyl
- Kevontae Jalil Hawthorne: felon in possession of a firearm (one rifle)
- Daniel Anthony Moreno: felon in possession of a firearm (one semi-automatic handgun)
- Glen Donnell Nall, Jr.: possession with intent to distribute methamphetamine, possession of a firearm in furtherance of a drug trafficking crime (one pistol)
- Ethan Tyler Nieto: felon in possession of a firearm (one pistol)
- Martin Rosalez III, aka Wedo: felon in possession of a firearm (one semi-automatic handgun)
- Roberto Salinas, Jr.: felon in possession of a firearm (one semi-automatic handgun)
- Tevin Terelle Carrington: felon in possession of a firearm (one pistol)
- Steven Paul Echols: conspiracy to possess with intent to distribute methamphetamine and fentanyl, possession with intent to distribute methamphetamine
- Rachel Michelle Melendez: conspiracy to possess with intent to distribute methamphetamine and fentanyl, possession with intent to distribute methamphetamine, possession of a firearm in furtherance of a drug trafficking crime (one pistol)
- Nicolas Blake Pereida: conspiracy to possess with intent to distribute methamphetamine and fentanyl, possession with intent to distribute methamphetamine, distribution of methamphetamine, possession of a firearm in furtherance of a drug trafficking crime (one 9mm pistol), distribution of fentanyl
- Brent Reed Angelle: conspiracy to possess with intent to distribute methamphetamine and fentanyl, possession with intent to distribute methamphetamine, possession of firearms in furtherance of a drug trafficking crime (two pistols and one shotgun), possession with intent to distribute fentanyl
- Alexus Michelle Grubelnik: conspiracy to possess with intent to distribute methamphetamine and fentanyl, distribution of fentanyl
- Beatrice Eunice Gutierrez: conspiracy to possess with intent to distribute methamphetamine and fentanyl, possession with intent to distribute methamphetamine, possession with intent to distribute fentanyl
- Ronny Paul Spuriel: distribution of methamphetamine
Seven people charged in the scheme remain fugitives.
A number of the defendants charged in the scheme are tied to Lubbock’s Project Safe Neighborhood zone, a high-crime hotspot where federal, state, and local law enforcement leaders collaborate to reduce violence and increase community safety. Many have extensive criminal histories, including child sexual assault, aggravated assault, burglary, fraud, manufacture and delivery of controlled substances, and unlawful carrying of firearms.
An indictment is merely an allegation of wrongdoing, not evidence. All defendants are presumed innocent unless and until proven guilty in a court of law.
If convicted, some face up to life in federal prison.
The Bureau of Alcohol, Tobacco, Firearms & Explosives’ Dallas Field Division – Lubbock Resident Agency, the Drug Enforcement Administration’s Dallas Field Division – Lubbock Resident Agency, the United States Marshal Service, the Caprock HIDTA (High Intensity Drug Trafficking Area) Task Force, the Texas Department of Public Safety, the Lubbock Police Department, the Lubbock County Sherriff’s Office, and the Texas Anti-Gang Task Force conducted the investigation and arrest operation. Assistant U.S. Attorney Sean Long is prosecuting the drug conspiracy; AUSAs Jeff Haag, Ann Howey, Callie Woolam, and Matt McLeod are prosecuting the gun cases with the assistance of AUSAs Ryan Redd and Stephan Rancourt, the Lubbock Branch Office’s Project Safe Neighborhood Coordinators.
20 July 2023
Zephyrhills Man Sentenced to 27 Months for Unlawful Making of A FirearmRead the Press Release
Tampa, FL - U.S. District Judge Mary Scriven has sentenced James John Hall (34, Zephyrhills) to two years and three months in federal prison for unlawfully making a firearm. Hall had pleaded guilty on April 3, 2023.
According to court documents, on November 1 and 2, 2022, Hall spoke by phone with a man to whom he had sold firearms in the past. During these conversations, Hall offered to sell the man a “pipe bomb” that he had built. Hall told the man that he had contemplated using the “pipe bomb” to target an individual with whom he was angry. The man who Hall was communicating with was a confidential informant (CI) with the Pasco Sherriff’s Office. The CI reached out to the Pasco Sheriff’s Office who then coordinated further with the Bureau of Alcohol, Tobacco, Firearms and Explosives. Later in the evening on November 2, the CI and an undercover detective from the Pasco Sheriff’s Office met with Hall, where the undercover detective purchased the “pipe bomb.” When asked about future purchases, Hall indicated that he “had enough to build six more now.”
The suspected destructive device was then disassembled by ATF special agent bomb technicians. The materials were then sent to ATF laboratories for additional analysis where a senior explosives enforcement officer examined the device and concluded that it was designed to function as a weapon and would be characterized as both an improvised explosive bomb and destructive device.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Pasco Sheriff’s Office. It was prosecuted by Assistant United States Attorney Samantha Newman.
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.
Woman Pleads Guilty to Arson of ClinicRead the Press Release
Lorna Roxanne Green, 22, pled guilty to arson of a building used in interstate commerce, specifically the Wellspring Health Access Clinic located in Casper, Wyoming. Green entered her guilty plea before U.S. District Court Judge Alan B. Johnson on July 20, 2023. She was remanded to the custody of the U.S. Marshals Service following the hearing.
At the hearing, Green admitted that she set fire to the clinic on May 25, 2022, which was under construction at the time and planned to offer OB/GYN services, gender-affirming care, and abortion procedures. Green was arrested on March 21, 2023, and then indicted by the federal grand jury in May.
Green is scheduled to be sentenced by Judge Johnson on October 6, 2023. Green faces a minimum of five years in prison, a maximum of 20 years in prison, up to a $250,000 fine, three years of supervised release following her incarceration, a $100 special assessment, and restitution. Judge Johnson will determine Green’s sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
This crime was investigated by the Casper Police Department, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Federal Bureau of Investigation.
Case No. 23-CR-00066
Wilmington Man Sentenced to 68 Months in Federal Prison for Distribution of MethamphetamineRead the Press Release
WILMINGTON, Del. – David C. Weiss, U.S. Attorney for the District of Delaware, announced that Victor Rodriguez, age 39 and a Wilmington resident, was sentenced today to 68 months in prison for distribution of methamphetamine. U.S. District Judge Maryellen Noreika pronounced the sentence.
According to court documents, throughout 2022, Rodriguez received parcels mailed from California at various Wilmington addresses. These parcels contained pounds of methamphetamine, some of which were over 95% pure according to subsequent lab testing. Rodriguez then sold that methamphetamine throughout Delaware.
U.S. Attorney Weiss stated, “Methamphetamine remains among the deadliest drugs plaguing our streets today. Peddling this poison endangers community safety. My office will continue to seek significant prison sentences for those, like Mr. Rodriguez, who profit from illegal drug trafficking.”
“Methamphetamine is a powerful stimulant that can produce effects such as paranoia, hallucinations, and violent and erratic behavior,” said Thomas Hodnett, Special Agent in Charge of the Drug Enforcement Administration’s (DEA) Philadelphia Field Division. “The methamphetamine that Rodriguez distributed was of extremely high purity making it all the more dangerous.”
The case was investigated by the Delaware State Police and the DEA Philadelphia Field Division.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Delaware. Related court documents and information is located on the website of the District Court for the District of Delaware or on PACER by searching for Case No. 23-cr-08.
Wentzville Man Sentenced to 20 Years in Prison for St. Louis County Armed Robberies, ShootingRead the Press Release
ST. LOUIS – U.S. District Judge Rodney W. Sippel on Thursday sentenced a man from Wentzville, Missouri who robbed a White Castle twice and shot an employee to 20 years in prison.
On June 22, 2022, Matthew Sabir, now 38, demanded “all the $20 and $50 bills” from an employee of the White Castle restaurant at 7380 Olive Boulevard in University City before placing a black semi-automatic pistol on the countertop, according to his plea agreement. Sabir left with about $180 in cash.
The next day, after a failed robbery of the BP gas station at 4403 North Hanley Road in Berkeley, Sabir returned to the White Castle, his plea says. He told store employees, “Give me money. Don’t move. Don’t run,” and pointed a pistol at them. The employees ran, and Sabir opened fire, hitting a 16-year-old female employee multiple times.
The shooting victim spoke at Sabir’s sentencing Thursday, saying that she is still suffering the aftereffects of her injuries.
Sabir pleaded guilty March 1 to three felonies: robbery, brandishing a firearm in furtherance of a crime of violence and discharging a firearm in furtherance of a crime of violence. The firearm charges carry a mandatory minimum prison term, consecutive to any other charge.
The case was investigated by the University City Police Department, the Berkeley Police Department and the FBI. Assistant U.S. Attorney Linda Lane prosecuted the case.
Webster Man Indicted in Connection with Two Pipe Bomb ExplosionsRead the Press Release
CONCORD – A Webster man was indicted in connection with two pipe bomb explosions in Weare, New Hampshire, U.S. Attorney Jane E. Young announces.
Dale G. Stewart, Jr., 54, was indicted on three counts of possessing an unregistered firearm, specifically a destructive device. Stewart made an initial appearance in federal court on May 3, 2023, and is detained.
According to the charging documents, Stewart allegedly constructed and detonated two destructive devices in Weare, New Hampshire, on April 26, 2023 and April 27, 2023. In response to the explosions, law enforcement obtained a search warrant for Stewart’s vehicle and retrieved an additional destructive device, constructed of white PVC pipe, with glued end caps, wrapped in black electrical tape, with a green hobby fuse protruding from one of the end caps. The destructive device found in the vehicle contained more than 4 ounces of an explosive material, consistent with the manufacturing of the two recovered suspected pipe bombs from the two separate detonation scenes in Weare, New Hampshire.
The charge of possessing an unregistered destructive device provide for a sentence of up to 10 years in prison, and a fine of up to $10,000. 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.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Weare Police Department, and the Federal Protective Service led the investigation. Valuable assistance was provided by the Federal Bureau of Investigation, and the New Hampshire State Police. Assistant U.S. Attorney Cesar Vega is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
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Wausau Man Sentenced to 10 Years for Possessing Methamphetamine for DistributionRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Devin Needham, 37, Wausau, Wisconsin, was sentenced today by Chief U.S. District Judge James D. Peterson to 10 years in prison for possessing with the intent to distribute 50 grams or more of methamphetamine. Needham pleaded guilty to this charge on April 5, 2023.
In December 2021, law enforcement agents began a drug investigation into Needham. The investigation revealed that Needham and his co-defendant, Ari Lor, were involved in selling large amounts of methamphetamine. On June 20, 2022, GPS location data from Lor’s cellular telephone showed he was driving towards Wausau from his home in Appleton, Wisconsin. Based on information developed during the investigation, agents believed Lor was planning to meet with Needham to buy methamphetamine.
Law enforcement officers located Lor’s black minivan parked at a market in Wausau. Officers observed Lor leave the market carrying at least one plastic bag and get in the passenger side of the minivan. The minivan drove away but was pulled over by law enforcement officers a short time later for an expired registration sticker. After a K-9 positively alerted to the presence of narcotics, officers searched the minivan and found approximately one pound of methamphetamine in a white plastic bag.
Officers later reviewed surveillance video from the market and saw Lor and Needham walk around the store together. In the video, Needham is carrying a white plastic bag and the name of a store printed on the side of the bag was identical to the bag found in the minivan containing the methamphetamine.
During Lor’s arrest, agents seized two cellular telephones from him. Officers later searched the phones pursuant to a warrant, and on one of the phones found a message over the application “Telegram” from June 19, 2022, in which Lor asked Needham about the price of one pound of methamphetamine. Needham responded it would cost $4,000. Telegram messages prior to Lor’s arrest on June 20 show him and Needham making plans to meet that day in Wausau.
Needham’s criminal history includes eight prior felony convictions, including convictions for child abuse, possession with intent to distribute cocaine, and bail jumping. At the sentencing hearing, Judge Peterson stated that Needham was a drug trafficker of significance and had a substantial criminal history including multiple offenses involving violence.
On June 29, 2023, Lor was sentenced by Judge Peterson to 120 months in prison.
The charge against Needham is the result of an investigation conducted by the Federal Bureau of Investigation’s Central Wisconsin Narcotics Task Force comprised of investigators from the FBI, Marathon County Sheriff’s Office, Wausau Police Department, Wisconsin Department of Justice Division of Criminal Investigation, Lincoln County Sheriff’s Office, Wisconsin State Patrol, Everest Metro Police Department, and Wisconsin’s National Guard Counterdrug Program. The Lake Winnebago Area Metropolitan Enforcement Group and the Marathon County District Attorney’s Office also provided assistance. The prosecution of the case is being handled by Assistant U.S. Attorney Aaron Wegner.
Washington Man Sentenced for Involvement in Shooting Death of Coeur d’Alene TeenRead the Press Release
COEUR D’ALENE – Matthew James Holmberg, 20, of Spokane Valley, Washington, was sentenced Monday, July 17, 2023, to 19 years in federal prison for conspiracy to distribute a controlled substance and discharge of a firearm in furtherance of a drug trafficking crime, announced U.S. Attorney Josh Hurwit.
According to court records, Holmberg was involved in distributing a variety of controlled substances, including fentanyl pills. In 2021, Holmberg met Dennen Trey George Fitterer-Usher, 24, of Spokane Valley, Washington. Holmberg recruited and began bringing Fitterer-Usher to drug deals with him as an armed bodyguard.
On May 31, 2021, Gabriel Casper, 18, Vadin Bartlett, 19, and Ashton Creech, 18, met Holmberg and Fitterer-Usher near Cherry Hill in Coeur d’Alene. Though Casper had arranged to purchase $300 worth of pills, he and the others were armed and arrived at the deal with the intent of robbing Holmberg. Casper, Bartlett, and Creech got into Holmberg’s vehicle, and Casper attempted to steal the pills. Fitterer-Usher then pulled his firearm and shot Casper six times. While Bartlett and Creech fled from the gun fire, Holmberg sped off with Casper still in the vehicle. Several blocks later, Casper was pushed from the moving car and left to die.
Despite attempts by civilians and EMS to save him, Casper ultimately succumbed to his wounds. Local, state, and federal officers began an immediate investigation into Casper’s death. Despite attempts by Fitterer-Usher and Holmberg to conceal the crimes, they were both eventually located and arrested.
“The sentence imposed in this case, and in the multiple other prosecutions arising from this investigation, show that our office and our law enforcement partners will spare no effort in seeking justice against those who commit violence and distribute drugs in our communities,” said U.S. Attorney Hurwit.
"Amidst tragedy and unwarranted loss, the tenacity of our investigators and the relentless work by the U.S. Attorney brings justice for a grieving family and community,” said Colonel Kedrick Wills, Director of the Idaho State Police. “This unfortunate case serves as a solemn reminder of our commitment to uphold the rule of law and ensure those who violate it face consequences."
“The U.S. Postal Inspection Service will continue to aggressively investigate individuals like Holmberg who use the U.S. Mail in support of their criminal activities,” said Inspector in Charge Anthony Galetti. “This should also serve as a reminder to those who abuse our community by peddling dangerous narcotics; law enforcement will find you and bring you to justice. Cases like these don’t come together without collaboration between our federal, state, and local partners and we thank all agencies involved.”
“This incident is another sad example of the death and despair that fentanyl brings to our communities but also shows the resolve of DEA and our federal, state, and local partners in bringing evildoers to justice,” said David F. Reames, Special Agent in Charge, DEA Seattle Field Division.
Fitterer-Usher was also charged federally with conspiracy to distribute a controlled substance and discharge of a firearm in furtherance of a drug trafficking crime. He was previously sentenced by Senior U.S. District Judge B. Lynn Winmill in December of 2022 to more than 14 years of federal prison time.
Bartlett and Creech were both prosecuted by the state of Idaho for attempted robbery. Bartlett was sentenced to a suspended sentence of 5 years fixed, followed by 7 years indeterminate and was placed on probation after completing a rider. Creech was sentenced to an imposed sentence of 4 years fixed, followed by 11 years indeterminate and is currently serving his time in the Idaho Department of Corrections.
As part of their investigation, officers learned that Holmberg had been selling fentanyl-laced pills for several months via social media websites, including SnapChat. The investigation revealed Holmberg had delivered fentanyl pills to Michael Stabile, a 15-year-old, Lake City High School student in Coeur d’Alene. On May 10, 2021, Michael Stabile overdosed and died from fentanyl poisoning. Stabile’s death was one of several reasons that U.S. District Judge Amanda K. Brailsford sentenced Holmberg to 228 months in federal prison. Holmberg, upon completion of his prison sentence, was also ordered to serve an additional three years of supervised release.
The investigation also resulted in the arrest and prosecution of multiple individuals in Washington and Arizona who were involved in obtaining tens of thousands of fentanyl pills from a source in Mexico, via Arizona, and distributing those pills in Washington and North Idaho.
Fentanyl is a synthetic opioid that is 50-100 times stronger than morphine. Pharmaceutical fentanyl was developed for severe pain management and prescribed in the form of transdermal patches or lozenges. While prescription fentanyl can be diverted for misuse, most cases of fentanyl-related overdoses in the U.S. are linked to illegally made fentanyl that is sold through illicit drug markets for its heroin-like effect.
Idaho in general has seen a massive influx of these pills in the last several years. The pills are mass-produced by criminal drug networks and falsely marketed as legitimate prescription pills. The pills are made to look like prescription opioids such as oxycodone (Oxycontin, Percocet), hydrocodone (Vicodin), and alprazolam (Xanax); or stimulants like amphetamines (Adderall). It is difficult to tell the difference between an authentic pill and a counterfeit pill.
U.S. Attorney Hurwit commended the cooperative efforts of the Coeur d’Alene Police Department, Kootenai County Prosecuting Attorney’s Office, Kootenai County Sheriff’s Office, Liberty Lake Police Department, U.S. Postal Inspection Service, Bureau of Indian Affairs, U.S. Border Patrol, Drug Enforcement Administration, and the Idaho State Police, which led to charges. He also commended the work of other agencies who participated and assisted in the investigation of the sources of supply, which resulted in the arrest and conviction of multiple individuals in Washington and Arizona. Agencies who assisted include the U.S. Attorney’s Office for the Eastern District of Washington, Lakewood Police Department, Medford Police Department, Siskiyou County Sheriff’s Office, Centralia Police Department, Chehalis Police Department, Shoshone County Sherriff’s Office, Washington Department of Corrections, United States Marshals Service, Bureau of Alcohol, Tobacco, Firearms and Explosives, DEA Centralia Post of Duty, and certain DEA Task Forces: JNET, Tucson Strike Force, and Phoenix Group 16 DEALERS.
These prosecutions are a part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
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Virginia Man Pleads Guilty to Sex Offense Against A MinorRead the Press Release
BECKLEY, W.Va. – Jon Pieter Vanbreemen, 41, of Low Moor, Virginia, pleaded guilty today to traveling in interstate commerce to engage in illicit sexual conduct with a minor.
According to court documents and statements made in court, on May 9, 2023, Vanbreemen traveled from Covington, Virginia, to White Sulphur Springs, West Virginia, with the intention of engaging in illicit sexual contact with two minor girls. He was arrested by law enforcement in White Sulphur Springs.
Vanbreemen is scheduled to be sentenced on November 3, 2023, and faces a maximum penalty of 30 years in prison, at least five years and up to a lifetime of supervised release, and a $250,000 fine. Vanbreemen must also register as a sex offender.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI) Violent Crimes Against Children Task Force.
United States District Judge Frank W. Volk presided over the hearing. Assistant United States Attorneys Francesca C. Rollo and Jennifer Rada Herrald are prosecuting the case.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative of the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s 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 those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 5:23-cr-91.
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Violent Federal Prisoner in Terre Haute Sentenced to Additional 27 Months in Prison for Possessing Improvised KnifeRead the Press Release
TERRE HAUTE- David Piparo, 62, of New York City, has been sentenced to an additional 27 months in federal prison after being found in possession of a weapon in prison.
According to court documents, in 2012, Piparo was convicted of 3 commercial robberies and using a firearm during a crime of violence. He was sentenced to 22 years by a federal judge in the Southern District of New York. He has been serving his prison sentence at the Terre Haute Federal Correctional Complex inmate since 2021.
On November 27, 2021, a Bureau of Prisons Officer was conducting random searches of inmates as part of the prison’s effort to control contraband at the facility. Inmate Piparo w-as exiting the recreation yard when he was asked to submit to a pat-down search. During the search, the Officer ran his hand over Piparo’s right ankle and felt something hard in his sock. The Officer recovered a piece of green plastic, approximately 6 ½ inches long, with a sharpened point. Improvised knives, commonly referred to as “shanks” are illegal to possess in prison and pose a significant risk to the safety of fellow inmates and correctional staff.
The Bureau of Prisons investigated this case. The sentence was imposed by U.S. District Court Judge, James R. Sweeney.
U.S. Attorney Myers thanked Assistant United States Attorneys James M. Warden and Jayson W. McGrath, who prosecuted this case.
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United States Sues Owners and Operators of Orange County Horse Training Facility for Filling Wetlands in Violation of Federal Clean Water ActRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Lisa F. Garcia, the Regional Administrator for Region 2 of the U.S. Environmental Protection Agency (“EPA”), announced today that the United States has filed a civil lawsuit against THOMAS PUSHKAL, JENNIFER VANOVER, EDWARD PUSHKAL, FRANCES PUSHKAL, and MAPLEWOOD WARMBLOODS, LLC (collectively, the “defendants”) for allegedly filling wetlands in Orange County protected by the federal Clean Water Act. The Complaint asks the Court to award injunctive relief and civil penalties for the violations.
U.S. Attorney Damian Williams said: “As alleged, the defendants violated the Clean Water Act by discharging concrete, metal, glass, and other fill material into wetlands that are part of the waters of the United States. This lawsuit will hold the defendants accountable for allegedly violating our environmental laws and require them to remedy the alleged significant damage they have caused to protected wetlands.”
EPA Regional Administrator Lisa F. Garcia said: “Wetlands serve a vital role in decreasing water pollution, providing habitat for fish and wildlife, and reducing risks from flooding and storm surges. Unlawful and unmitigated dredging and filling activities can destroy wetlands. EPA will continue to protect these vulnerable ecosystems and fight for the health of wetlands by enforcing the law under the Clean Water Act.”
As alleged in the Complaint filed today in White Plains federal court:[1]
From 2015 to 2019, defendants THOMAS PUSHKAL, JENNIFER VANOVER, and their business MAPLEWOOD WARMBLOODS, LLC discharged fill material without a federal permit into approximately 3.5 acres of wetlands, in areas referred to in the Complaint as the Bart Bull Road Site and the Expansion Site. These discharges were made in the course of operating and expanding their horse breeding, boarding, and training facility in the Town of Wallkill, Orange County.
Specifically, from in or about June 2015 to March 2016, these defendants directed or permitted construction and demolition material to be trucked in and deposited at the Bart Bull Road Site and directed or permitted the use of heavy machinery to spread the fill material to level and raise the grade of the property.
At the end of November 2018, EPA learned of the potential development activity at the Expansion Site and, in December 2018, cautioned defendant THOMAS PUSHKAL by phone that if he was filling protected wetlands on any additional properties, he would need a federal permit.
Nonetheless, beginning in or about December 2018 and continuing to April 2019, without a permit, these defendants used dump trucks and other heavy machinery to engage in extensive earthmoving, grading, and filling activities to construct private access roads through the Expansion Site. The construction of these roads caused fill to be discharged into 1.5 acres of wetlands at the Expansion Site. Some wetlands filled at the Expansion Site are on property owned by defendants EDWARD PUSHKAL and FRANCES PUSHKAL, who, at a minimum, knew or should have known of, but failed to exercise their authority to prevent, the discharges.
The wetlands that are the subject of the Complaint are adjacent to the Wallkill River, a traditional navigable water. The fill material discharged into the wetlands included, among other things, dirt, rock, brick, wood, electrical wiring, ceramic, asphalt, concrete, rebar, PVC piping, metal, and glass.
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This case is being handled by the Office’s Environmental Protection Unit. Assistant U.S. Attorneys Zachary Bannon and Alyssa O’Gallagher are in charge of the case.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitution only allegations, and every fact described should be treated as an allegation.
U.S. v. Pushkal et al ComplaintUnited States Attorney Escalona Announces Recent Indictments Aimed at Reducing Violent Crime Across the Northern District of AlabamaRead the Press Release
BIRMINGHAM, Ala. – Today, United States Attorney Prim F. Escalona announced that continued efforts to combat violent crime have led to federal firearms charges against 12 individuals. These indictments are the result of the collaborative efforts of federal and local partners to identify and focus enforcement on individuals who illegally purchase and possess firearms in the Northern District of Alabama.
“Felons who illegally possess firearms are major contributors to violent crime in this district,” U.S. Attorney Escalona said. “The fundamental goal of our violent crime work is to focus our enforcement actions on the individuals and criminal activities that drive violent crime in our communities. We will continue to work closely with our federal, state, and local law enforcement partners to protect our communities and to reduce the number of firearms in the hands of prohibited people.”
Last month a federal grand jury indicted 12 individuals across the Northern District of Alabama on a variety of federal firearm charges.
DeKalb County
Mark Anthony Clines, 59, of Rainsville, was charged with felon in possession of a firearm.
Miguel Angel Rojas, 31, of Valley Head, was charged with possession of an unregistered firearm.
Etowah County
Michael Wesson, 66, of Southside, was charged with felon in possession of a firearm.
Jefferson County
Robert Elijah Allen, 29, of Birmingham, was charged with felon in possession of a firearm. Somer Lemere Ross, 27, of Birmingham, was charged with making a false statement to a federal firearms licensee dealer during the purchase of a firearm. Ross falsified documents by specifically stating that she was the actual buyer when in fact she was buying the firearm for an individual who was prohibited from possessing a firearm.
Cornelius Abodur Brownlee, Jr., 21, of Ensley, was charged with illegally possessing a machine gun, that is, a Glock 9mm pistol equipped with a “Glock switch” and possession of an unregistered firearm.
Roderick Jimelle Needham, 23, of Birmingham, was charged with felon in possession of a firearm.
Kenneth Lamont Crawford, 51, of Birmingham, was charged with felon in possession of a firearm.
Mark Anthony Clifton, 37, of Cedar Bluff, was charged with felon in possession of a firearm.
Shelby County
Dennis Dewayne Dothard, 39, of Birmingham, was charged with Hobbs Act Robbery, brandishing a firearm in during and in relation to a violent crime, and felon in possession of a firearm.
St. Clair County
Christopher Allen Grooms, 40, of Ashville, was charged with felon in possession of a firearm.
Tuscaloosa County
Isiah Teanthony Joy, 31, of Cincinnati, Ohio, was charged with felon in possession of a firearm.
These cases are part of Project Safe Neighborhoods (PSN), which is the Department of Justice’s violent crime strategy to bring together all levels of law enforcement and the communities they serve to reduce gun crime and make our neighborhoods safer for everyone. Through PSN, a broad spectrum of stakeholders collaborate to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally-based prevention and reentry programs for lasting reductions in crime.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
USPS Employee Pleads Guilty to Theft of MailRead the Press Release
PORTLAND, Maine: A Portland man employed by the U.S. Postal Service pleaded guilty today in U.S. District Court in Portland to theft of mail by an officer or employee.
According to court records, from February 2022 through May 2022, Andrew Fossett, 45, stole and destroyed mail to steal gift cards, scratch tickets and money. Video surveillance showed Fossett opening 128 envelopes, removing the contents from 12 envelopes and tearing up and throwing envelopes out of the postal vehicle 27 times. He also opened two parcels. Fossett admitted to the conduct during an interview and a search of his backpack and personal vehicle revealed two stolen gift cards and one stolen $5 scratch ticket.
Fossett faces up to five years in prison and a fine of up to $250,000, as well as up to three years of supervised release. He will be sentenced after the completion of a presentence investigative report by the U.S. Probation Office. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The U.S. Postal Service Office of Inspector General investigated this case.
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U.S. Attorney Announces the Indictment of Mount Vernon Police Sergeant for Violating the Constitutional Rights of an IndividualRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Christie M. Curtis, the Acting Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of an Indictment charging MARIO STEWART, a Sergeant with the Mount Vernon Police Department (“MVPD”), with using excessive force against an individual (the “Victim”) while in Mount Vernon, New York, in violation of the Victim’s rights under the United States Constitution. As alleged in the Indictment, during a call for assistance, STEWART, in the presence of six other MVPD officers, tased the Victim seven times in the span of approximately two minutes. For the duration of all seven taser deployments, the Victim lay on the ground, handcuffed with his hands behind his back and his legs secured in a restraint bag. STEWART surrendered to the FBI this morning and was presented this afternoon before U.S. Magistrate Judge Judith C. McCarthy in White Plains federal court. The case has been assigned to U.S. District Judge Kenneth M. Karas.
U.S. Attorney Damian Williams said: “As alleged, Mario Stewart, a Sergeant with the Mount Vernon Police Department, was called to the scene to aid a person in emotional distress. Instead of providing aid, Stewart deployed his taser on the individual seven times in the span of roughly two minutes, while the individual was handcuffed and with his legs restrained and while several other MVPD officers were on scene to assist. Stewart’s alleged conduct not only betrayed his duty as an officer to protect those under his charge, but also violated the law. My Office is committed to protecting the constitutional rights of all New Yorkers, including those experiencing mental health crises, and to holding law enforcement officers accountable when they abuse their authority.”
FBI Acting Assistant Director in Charge Christie M. Curtis said: “As alleged in today’s indictment, Stewart’s actions led him to inflict bodily harm upon his victim. Officers of the law are not above the law, and the FBI is committed to investigating any instances in which a federal crime has been committed.”
According to the Indictment that was unsealed today in White Plains federal court:[1]
On or about March 26, 2019, STEWART was employed as a Sergeant with the MVPD. STEWART was assigned to the MVPD’s Emergency Services Unit, which is responsible for, among other things, responding to individuals who are experiencing mental health crises. On that day, STEWART and six other MVPD officers received a call to assist the Victim in Mount Vernon, New York, as the Victim was experiencing a mental health crisis.
At the scene, STEWART and the other MVPD officers restrained the Victim, handcuffing his hands behind his back and securing his legs in a restraint bag in preparation to transport the Victim for medical assistance. When the MVPD officers were unable to pull the restraint bag over the Victim’s chest because the Victim was holding onto one of the bag’s straps, STEWART directed the Victim to release the strap. STEWART then proceeded to tase the Victim seven times in the span of approximately two minutes. While STEWART deployed his taser all seven times, the Victim remained laying on the ground, handcuffed with his hands behind his back and his legs secured in the restraint bag. STEWART’s actions caused bodily injury to the Victim.
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STEWART, 44, of Brooklyn, New York, is charged with one count of deprivation of rights under color of law, which carries a maximum sentence of 10 years in prison.
The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Williams praised the outstanding work of the FBI. Mr. Williams also thanked the Westchester County District Attorney’s Office for their assistance.
The prosecution is being handled by the Office’s Civil Rights Unit in the Criminal Division. Assistant U.S. Attorneys Gillian Grossman and Jared Hoffman are in charge of the prosecution.
The charge contained in the Indictment is merely an accusation, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the Indictment and the description of the Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.
U.S. v. Stewart IndictmentTwo Men Charged in Interstate Motor Vehicle Theft SchemeRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, and Robert Fuller, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, today announced that a federal grand jury in New Haven has returned an indictment charging DARYL JONES, 53, of Atlanta, Georgia, and MARKOS PAPPAS, 49, of New Haven, with offenses related to a scheme to steal vehicles in other states, transport them to Connecticut, make efforts to conceal the fact they were stolen, and then sell them to customers.
The indictment was returned on June 20, 2023, and unsealed yesterday. Jones appeared today before U.S. Magistrate Judge Robert M. Spector in New Haven and pleaded not guilty. He was released on a $50,000 bond pending trial. Pappas has been detained in federal custody since March 28, 2023, when he was arrested on a narcotics charges stemming from a related investigation.
As alleged in the indictment, Jones, Pappas and others conspired to obtain stolen motor vehicles from car dealerships, car rental businesses, and other sources in Georgia, Illinois, elsewhere, and transported the vehicles to Connecticut. They altered the vehicle identifying number (VIN) of the stolen motor vehicles to hide the fact that they were stolen, and disabled the vehicles’ onboard communication services, often known as the telematics systems, including GPS systems, in order to thwart attempts to locate the vehicle after it was stolen. They used the altered VIN to create stickers and other means of identification to put on the stolen motor vehicles, and attempted to remove the VIN etched on the vehicles. They also created fake vehicle titles and bills of sale using the altered VIN to present to various state’s Departments of Motor Vehicles when registering the vehicles. The vehicles were sold to customers, often in cash transactions.
Among the stolen vehicles specifically referenced in the indictment are a 2021 Ford Expedition stolen from a rental car company in Oak Brook Village, Illinois, in January 2022, and two Ford F-150 Raptors that were stolen from car dealerships in Gainesville, Georgia, and Canton, Georgia, in November 2022.
It is further alleged that in April 2023, while detained in federal custody as part of a separate indictment, Pappas communicated by phone with co-conspirators about the stolen vehicles.
The indictment charges Jones and Pappas with one count of conspiracy, an offense that carries a maximum term of imprisonment of five years, and three counts of possession of a stolen vehicle, and offense that carries a maximum term of imprisonment of 10 years on each count.
U.S. Attorney Avery stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the FBI’s New Haven Safe Streets/Gang Task Force, with the assistance of the DEA New Haven’s Tactical Diversion Squad, Homeland Security Investigations (HSI), the U.S. Marshals Service, and the National Crime Insurance Bureau. The FBI Task Force includes participants from the FBI, the Connecticut State Police, the Connecticut Department of Correction, and the New Haven, Milford, East Haven, West Haven and Wallingford Police Departments.
The case is being prosecuted by Assistant U.S. Attorneys Sarah P. Karwan and Tara E. Levens, in coordination with the New Haven and Milford State’s Attorney’s Offices.
This case is being prosecuted through the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. OCDETF identifies, disrupts, and dismantles drug traffickers, money launderers, gangs and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Two Indictments Charge International Travel to Engage in Illicit Sexual Activity with MinorsRead the Press Release
SACRAMENTO, Calif. — U.S. Attorney Phillip A. Talbert joins with Homeland Security Investigations Special Agent in Charge Tatum King, FBI Special Agent in Charge Sean Ragan, and Kathleen Nicholls, Chief of the Department of Consumer Affairs Division of Investigation to announce indictments charging sexual exploitation of children, a global problem demanding a global response.
The indictments are part of an initiative known as Project Safe Childhood that seeks to prevent the sexual exploitation of children and achieve justice for the victims of such crimes.
“To vindicate victims of child exploitation and bring criminals to justice, our law enforcement and our communities must work together in partnership across county, state, and national borders,” U.S. Attorney Talbert said. “Our office is committed to protect our children and hold offenders accountable.”
“Homeland Security Investigations San Francisco/NorCal and FBI, in partnership with the California Dept of Consumer Affairs and the U.S. Attorney’s Office are seeking information on any individuals that may have been victimized by Mr. Reger,” said HSI Special Agent in Charge Tatum King. “Of importance, HSI and Law Enforcement partners are focused on providing victim support and holding the alleged violator accountable for his actions in a court of law. We ask the community and media to help magnify this request so that victims, regardless of their current location around the world can be aware of the latest developments in this case.”
“Child predators prey upon the innocence and naivete of their victims, damaging trust and forever changing the course of their lives. The FBI Sacramento Field Office is determined to thoroughly investigate allegations like these to seek justice and connect identified victims with vital services that can help heal the trauma they have experienced,” said Special Agent in Charge Sean Ragan of the FBI Sacramento Field Office. “We are grateful for our continued partnership with the Lassen County Sheriff’s Office, Lassen County District Attorney’s Office, and Homeland Security Investigations. Trust and collaboration are essential to ensuring the safety and security of the communities we serve. We also thank the Church of the Nazarene and California Department of Consumer Affairs for their efforts to aid this investigation.”
“The California Department of Consumer Affairs is committed to protecting California consumers,” said Kathleen Nicholls, Chief of the Department of Consumer Affairs Division of Investigation. “We are grateful for our law enforcement partners who share the common goal of taking action against those who violate the law.”
Danish Man Alleged to Have Traveled from Denmark to Fresno to Exploit a Minor
A federal grand jury returned a two-count indictment today against Claus Svelmo Marcuslund, 58, of Denmark, charging him with distribution of child pornography and attempted coercion or enticement of a minor to engage in illicit sexual activity.
According to court documents, in January 2023, Marcuslund contacted an undercover agent who had created the profile of a mother with a seven-year-old daughter, on a dark web website dedicated to persons interested in pedophilia. Marcuslund told the agent that “I’m Scandinavian, professional music producer/songwriter and lyricist and yeah, I’m also a pedophile.” He also stated that “I’m divorced and now searching [for] a nice woman/mom to get to know better, hopefully with the potential of getting together in real life one day. Obviously, she must be 100% supportive of pedophilia and incest.” During the next several months Marcuslund sent messages to the agent through the website’s messaging feature, as well as the fully encrypted Telegram application, that explained in graphic detail the sexual acts in which he hoped to engage with the mother and child. As part of those communications, he sent images of adults sexually abusing young children. He also discussed having another child with the mother and molesting the newborn.
Marcuslund boarded a flight from Copenhagen to the Los Angeles International Airport and then boarded a flight to Fresno. On July 11, 2023, Marcuslund was arrested upon arrival at the Fresno International Airport and has been ordered detained as a risk of flight and danger to the community.
This case is the product of an investigation by Homeland Security Investigations with assistance from the Central Valley Internet Crimes Against Children Task Force. Assistant U.S. Attorney David Gappa is prosecuting the case.
Susanville Man Charged with Multiple Crimes Involving Sexual Abuse of Minors
A federal grand jury returned a five-count indictment today against Bradley Earl Reger, 67, of Susanville, charging him with: engaging in illicit sexual activity abroad, transportation of a minor with intent to engage in criminal sexual activity, and coercion and enticement.
According to court documents, Reger sexually abused more than a dozen patients between the ages of 12 and 22 under the guise of conducting purported medical examinations at his medical clinic in Susanville, and in hotel rooms and camp sites all over the world. Reger is a licensed Nurse Practitioner with the California Board of Registered Nursing and has been since at least 2003. Since at least 1986, Reger has been heavily involved in various Christian schools, summer camps, youth groups, and church missions. He has held positions as a teacher, camp counselor, church deacon, youth group leader, and owner of affiliated nonprofit organizations.
The indictment alleges that Reger sexually abused three different minor victims, in locations such as: Susanville, Nevada, Virginia, and Poland. These offenses allegedly took place between 2006 and 2014.
This case is the product of an investigation by the Federal Bureau of Investigation, Homeland Security Investigations, and the California Department of Consumer Affairs with assistance from the Lassen County Sheriff’s Office and the Lassen County District Attorney’s Office. Assistant U.S. Attorneys Christina McCall and Roger Yang are prosecuting the case.
The FBI and HSI are seeking to identify potential victims of Bradley Reger. If you believe that you and/or your minor dependent(s) were victimized by Reger at any time, in the United States or abroad, or have information relevant to this investigation, please complete the online form available at: www.fbi.gov/RegerVictims. Additionally, if you know of someone else who may have been victimized by Bradley Reger, please encourage them to complete the form.
If convicted, Reger faces a maximum statutory penalty of 30 years in prison and a $250,000 fine for the counts of engaging in illicit sexual conduct abroad, up to life in prison and a fine of $250,000 for transportation with intent to engage in criminal sexual activity, and up to 20 years in prison and a fine of up to $250,000 for coercion and enticement. If convicted, Marcuslund faces a maximum statutory penalty of life in prison and a $250,000 fine.
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.
These cases are brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet-safety education.
reger_indictment.pdf
marcuslund_filed_copy.pdfTruck Driver Found Guilty of Possession of Child PornographyRead the Press Release
Salt Lake City, Utah – A federal jury convicted a Salt Lake County man today of possession of child pornography via the internet.
According to court documents and the evidence presented at trial, Zachary Matthew Hansen, 40, of West Valley City, Utah, downloaded images and video files containing child sexual abuse materials from a file-sharing network. On August 11, 2017, in the District of Utah, an FBI agent, acting in an undercover capacity and using law enforcement tools identified a device with an IP address that was later identified as Hansen’s cellphone and contained downloadable child sexual abuse materials via a file-sharing network. During multiple examinations of Hansen’s cellphone, federal agents found multiple images and videos of child sexual abuse materials.
Hansen’s sentencing hearing will be scheduled at a later date before U.S. District Court Judge Howard C. Nielson, Jr. at the Orrin G. Hatch United States District Courthouse in downtown Salt Lake City.
U.S. Attorney, Trina A. Higgins for the District of Utah made the announcement.
The case was investigated by the FBI Salt Lake City Field Office.
Assistant United States Attorneys Mark Hirata and Carol A. Dain are 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 U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Tifton, Georgia, Resident Pleads Guilty to Fentanyl DistributionRead the Press Release
ALBANY, Ga. – A south central Georgia resident is facing up to 20 years in prison resulting from a locally-initiated investigation into fentanyl and heroin distribution out of a Tifton, Georgia, motel room.
Alphonso White, 43, of Tifton, Georgia, pleaded guilty to one count of possession with intent to distribute fentanyl on July 19 before U.S. District Judge W. Louis Sands. White faces a maximum sentence of twenty years in prison to be followed by at least three years of supervised release and a $1,000,000 fine. Sentencing is scheduled for Oct. 19. There is no parole in the federal system.
“The defendant was in possession of roughly 4,200 deadly doses of fentanyl. I applaud Tift County Sheriff’s Office investigators for preventing an extremely dangerous drug from hitting the streets of Tifton,” said U.S. Attorney Peter D. Leary. “This case clearly demonstrates that fentanyl is readily available in communities of every size across our District. Our office will continue to provide all necessary support to law enforcement in the effort to stop fentanyl distribution and hold dealers accountable.”
“The Tift County Sheriff’s Office always stands ready to work with local, state and federal authorities to help remove the scourge that fentanyl has become across this county,” said Tift County Sheriff Gene Scarbrough.
According to court documents, the Tift County Sheriff’s Office was investigating the distribution of fentanyl, heroin and other illicit drugs in the community. As a result, investigators executed a search warrant on Jan. 18, 2022, at the Howard Johnson motel room in Tifton where White was staying. Officers confronted White after he exited his motel room; White was carrying 32 bags of a brown substance and blue pills marked “M 30.” The substances later tested positive for 8.544 grams of fentanyl. According to the Drug Enforcement Administration, just two milligrams of fentanyl—an amount equivalent to 10-15 grains of table salt—is considered a lethal dose. White was in possession of approximately 4,272 lethal doses. Without laboratory testing, there is no way to know how much fentanyl is concentrated in a pill or powder, making it extremely dangerous. To learn more about fentanyl, please visit https://www.dea.gov/factsheets/fentanyl.
The case was investigated by the Tift County Sheriff’s Department with assistance from the Georgia Bureau of Investigations (GBI). Assistant U.S. Attorney Hannah Couch is prosecuting the case for the government.
Three Men Sentenced for Armed CarjackingRead the Press Release
Memphis, TN – Three Tennessee men were each sentenced today to 10 years and one month in prison for committing an armed carjacking of two victims at a gas station in Bolivar, Tennessee.
According to court documents, on Nov. 9, 2020, Delvion Beard, 22, Quadarius Greer, 21, and Bryson Townsley, 21, all of Jackson, stole an Audi A4 from two victims at gunpoint. Beard and Greer abruptly entered the back seat of the car and forced the victims to drive from the gas station at gunpoint. Townsley followed them in a second car. Along the way, Beard and Greer forced the driver into the back seat and Beard took control of the car, driving it to a residential complex. When they arrived, the three defendants used physical force and guns, including an AK-47 pistol, to take the victims out of the car, rob them, and drive away in the stolen vehicle. One victim suffered injuries during the attack. The defendants threatened to kill both victims if they reported the incident to the police.
“The choice of these armed carjackers to terrorize innocent victims for personal gain was cowardly and reprehensible,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “Today’s sentences demonstrate the Justice Department’s commitment to vigorously prosecuting those who use weapons and violence to dominate our public spaces and deprive our citizens of safety in their own communities.”
“Individuals committing gun violence are causing havoc in West Tennessee. Armed carjackings, in particular, threaten basic notions of what it means to feel safe in our communities,” said U.S. Attorney Kevin G. Ritz for the Western District of Tennessee. “Citizens throughout our district can be assured that the Department of Justice, along with state and local law enforcement partners, tirelessly work together to protect the innocent and bring to justice those who commit violent acts.”
“Carjackings are a senseless but seriously violent crime that threaten the lives of innocent victims in our communities,” said Special Agent in Charge Douglas S. DePodesta of the FBI Memphis Field Office, “Law enforcement refuses to tolerate this criminal behavior, and the FBI will continue to work with our local, state, and federal partners to target, identify, and bring each and every violent offender to justice.”
The FBI and Bolivar Police Department investigated the case, with valuable assistance from the Madison County Sheriff’s Office and the Jackson Police Department.
Trial Attorney César S. Rivera-Giraud of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Hillary Parham for the Western District of Tennessee prosecuted the case.
Three Men Sentenced for Armed CarjackingRead the Press Release
Three Tennessee men were each sentenced today to 10 years and one month in prison for committing an armed carjacking of two victims at a gas station in Bolivar, Tennessee.
According to court documents, on Nov. 9, 2020, Delvion Beard, 22, Quadarius Greer, 21, and Bryson Townsley, 21, all of Jackson, stole an Audi A4 from two victims at gunpoint. Beard and Greer abruptly entered the back seat of the car and forced the victims to drive from the gas station at gunpoint. Townsley followed them in a second car. Along the way, Beard and Greer forced the driver into the back seat and Beard took control of the car, driving it to a residential complex. When they arrived, the three defendants used physical force and guns, including an AK-47 pistol, to take the victims out of the car, rob them, and drive away in the stolen vehicle. One victim suffered injuries during the attack. The defendants threatened to kill both victims if they reported the incident to the police.
“The choice of these armed carjackers to terrorize innocent victims for personal gain was cowardly and reprehensible,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “Today’s sentences demonstrate the Justice Department’s commitment to vigorously prosecuting those who use weapons and violence to dominate our public spaces and deprive our citizens of safety in their own communities.”
“Individuals committing gun violence are causing havoc in West Tennessee. Armed carjackings, in particular, threaten basic notions of what it means to feel safe in our communities,” said U.S. Attorney Kevin G. Ritz for the Western District of Tennessee. “Citizens throughout our district can be assured that the Department of Justice, along with state and local law enforcement partners, tirelessly work together to protect the innocent and bring to justice those who commit violent acts.”
“Carjackings are a senseless but seriously violent crime that threaten the lives of innocent victims in our communities,” said Special Agent in Charge Douglas S. DePodesta of the FBI Memphis Field Office, “Law enforcement refuses to tolerate this criminal behavior, and the FBI will continue to work with our local, state, and federal partners to target, identify, and bring each and every violent offender to justice.”
The FBI and Bolivar Police Department investigated the case, with valuable assistance from the Madison County Sheriff’s Office and the Jackson Police Department.
Trial Attorney César S. Rivera-Giraud of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Hillary Parham for the Western District of Tennessee prosecuted the case.
Texas and Missouri Physicians and Medical Practice Agree to Pay over $525,000 to Settle Kickback Allegations Involving Laboratory TestingRead the Press Release
NEWARK, N.J. – Two physicians and a medical practice in Missouri have agreed to pay more than $520,000 to resolve kickback allegations, U.S. Attorney Philip R. Sellinger for the District of New Jersey and Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division, announced today.
Imran Chishti M.D. and his medical practice, C Care LLC, both of Chesterfield, Missouri; Shamim Justin Badiyan, of Frisco, Texas; and Psych Care Consultants LLC, of St. Louis, Missouri, have agreed to pay $525,610 to resolve False Claims Act allegations that they received illegal kickbacks in violation of the Anti-Kickback Statute in return for referring patients for laboratory testing, and both have agreed to cooperate with the Department of Justice’s investigations of, and litigation against, other participants in the alleged schemes.
U.S. Attorney Philip R. Sellinger“Kickbacks can undermine the integrity of our healthcare system. Patients should be able to count on their doctors’ ordering tests and recommending treatment based on what is best for them, and not because they are receiving payments on the side. We will continue to pursue anyone responsible for unlawful actions that can put at risk the medical decision-making process.”
“The prohibition against paying or receiving kickbacks is an important safeguard for ensuring the objectivity of medical decisions that affect federal health care beneficiaries,” Principal Deputy Assistant Attorney General Boynton said. “We will continue to pursue those who knowingly violate the law and undermine the integrity of our federal healthcare system.”
The Anti-Kickback Statute prohibits offering, paying, soliciting, or receiving remuneration to induce referrals of items or services covered by Medicare, Medicaid, and other federally funded healthcare programs. The Anti-Kickback Statute is intended to ensure that medical providers’ judgments are not compromised by improper financial incentives and are instead based on the best interests of their patients.
The settlement announced today resolves allegations that Chishti and his medical practice, Badiyan, and Psych Care Consultants received kickbacks in violation of the Anti-Kickback Statute in return for making referrals to laboratories in New Jersey, Texas, and Florida.
- Chishti and C Care have agreed to pay $125,504 to resolve two allegations. First, from July 2016 to August 2018, C Care allegedly received thousands of dollars in payments from a purported management service organization (MSO) named Infinity Nine Health Group MSO LLC (Infinity) in return for Chishti ordering laboratory tests from American Institute of Toxicology Inc. d/b/a HealthTrackRx, a clinical laboratory in Denton, Texas, and InHealth Diagnostic LLC d/b/a RealLab (InHealth), a clinical laboratory in Dallas, Texas. Second, from August 2018 to July 2020, C Care allegedly received thousands of dollars in payments from a purported MSO named Alari Group LLC (Alari) in return for Chishti ordering laboratory tests from Genesis Reference Laboratories LLC (Genesis), a clinical laboratory in Orlando, Florida, and RDx Bioscience Inc. (RDx), a clinical laboratory in Kenilworth, New Jersey.
- Badiyan has agreed to pay $182,676 to resolve allegations that from November 2018 to June 2022, he received thousands of dollars in payments from a purported MSO named Avior Group LLC (Avior) in return for ordering laboratory tests from RDx and Genesis. RDx and Genesis allegedly paid commissions to an independent contractor recruiter, Corum Group LLC (Corum), which used Avior to pay kickbacks to Badiyan and other healthcare providers in return for their referrals.
- Psych Care Consultants has agreed to pay $217,430 to resolve allegations that from January 2019 to March 2020, it received thousands of dollars in payments from Alari in return for ordering laboratory tests from Genesis and InHealth. Genesis and InHealth allegedly paid commissions to Corum, which used Alari to pay kickbacks to Psych Care Consultants and other healthcare providers in return for their referrals.
“Those who participate in the federal healthcare system are required to obey the laws meant to preserve the integrity of program funds and the provision of appropriate, quality services to patients,” Special Agent in Charge Naomi Gruchacz of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) said. “Our agency collaborates frequently with our law enforcement partners to investigate parties alleged to violate the Anti-Kickback Statute.”
The settlements were the result of a coordinated effort between the U.S. Attorney’s Office for the District of New Jersey and the Civil Division’s Commercial Litigation Branch, Fraud Section, with assistance from HHS-OIG.
The government is represented by Assistant U.S. Attorney Kruti Dharia of the U.S. Attorney’s Office, District of New Jersey, Opioid Abuse Prevention and Enforcement Unit and Senior Trial Counsel Christopher Terranova in the Civil Division’s Commercial Litigation Branch (Fraud Section).
The government’s pursuit of these matters illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services, at 1-800-HHS-TIPS (800-447-8477).
The claims resolved by the settlements are allegations only, and there has been no determination of liability.
chishti.settlement.pdfTexas Man Charged with Kidnapping Girl at Gunpoint then Repeatedly Assaulting Her on Road Trip Before His Arrest in Long BeachRead the Press Release
LOS ANGELES – A federal grand jury today indicted a Texas man who allegedly kidnapped a 13-year-old girl at gunpoint in Texas, drove her to California, and sexually assaulted her multiple times before his arrest in Long Beach last week.
Steven Robert Sablan, 61, of Cleburne, Texas, is charged with one count of kidnapping and one count of transportation of a minor with intent to engage in criminal sexual activity. His arraignment is scheduled for July 31 in United States District Court in downtown Los Angeles.
According to the indictment and an affidavit previously filed with a criminal complaint in this matter, on July 6 in San Antonio, the victim was walking down a street when Sablan, driving a gray Nissan Sentra, approached her. Sablan allegedly raised a black handgun to his side and told the victim to get in the car, saying “If you don’t get in the car with me, I am going to hurt you.” Fearing for her life, the victim obeyed Sablan, court documents allege.
Sablan allegedly began driving with the victim in the car and asked her how old she was. The victim replied she was 13 years old, and – after later mentioning she had a friend in Australia – Sablan allegedly told the victim he could take her to a cruise ship to visit this friend, but she had to do something for him first. He then repeatedly sexually assaulted the victim, according to court documents.
Over the next two days, Sablan allegedly drove the victim from Texas to California and sexually assaulted her at least two more times.
On the morning of July 9, Sablan parked the car in a lot in Long Beach and took their clothes to a laundromat for washing. While Sablan was in the laundromat, the victim stayed in the car and wrote “Help me!” on a piece of paper to try and get someone’s attention.
A witness telephoned law enforcement, who upon arrival saw Sablan standing outside the vehicle and saw the victim – who mouthed the word “Help” – inside the car, court documents state. During a search of the vehicle, officers retrieved a black BB gun, a “Help me” sign, and a pair of handcuffs. Law enforcement determined the victim was a reported runaway missing person from San Antonio.
If convicted of both charges in the indictment, Sablan would face a statutory maximum sentence of life in federal prison.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The FBI and the Long Beach Police Department investigated this matter. The Cleburne (Texas) Police Department provided assistance.
Assistant United States Attorney Chelsea Norell of the Violent and Organized Crime Section is prosecuting this case.
Terrebonne Parish Man Pleads Guilty to Federal Gun and Drug Trafficking CrimesRead the Press Release
NEW ORLEANS, LOUISIANA – WILLIAM AUTHUR BRYANT, JR., age 29, from Terrebonne Parish, pled guilty today to conspiracy to distribute and possess with intent to distribute methamphetamine (Count 1), distribution of methamphetamine (Count 2), possession with intent to distribute methamphetamine (Count 5), use of a communication facility (Count 4), two counts of possession of a firearm in furtherance of a drug trafficking crime (Counts 6 and 7), and being a felon in possession of a firearm (Count 8), in violation of Title 21, United States Code, Sections 846, 841(a)(1), 841(b)(1)(B), 843(b), and Title 18, United States Code, Sections 2, 924(c)(1)(A)(i), 922(g)(1), and 924(a), announced U.S. Attorney Duane A. Evans.
BRYANT took part in a conspiracy to distribute methamphetamine throughout Terrebonne Parish and surrounding areas for over a year.
On Counts One, Two, and Five, BRYANT faces a minimum of five (5) years and a maximum term of forty (40) years imprisonment, a maximum fine of up to $5,000,000.00, and at least four (4) years of supervised release following any term of imprisonment. On Count Four, BRYANT faces up to four (4) years imprisonment, up to one (1) year of supervised release, and a fine of up to $250,000.
On Counts Six and Seven, BRYANT faces a minimum of five (5) years imprisonment up to life imprisonment to run consecutive to any other terms of imprisonment, a maximum fine of $250,000.00, and up to 5 years of supervised release. On Count Eight, BRYANT faces a maximum penalty of ten (10) years imprisonment, a term of supervised release of up to three years, and a fine of up to $250,000.00. As to each count, BRYANT faces payment of a $100 mandatory special assessment fee.
This case was investigated by the U.S. Drug Enforcement Administration, the Terrebonne Parish Sheriff’s Office, the Louisiana State Police, and the Houma Police Department. The prosecution was handled by Assistant United States Attorney Lynn E. Schiffman of the Narcotics Unit.
Tax Preparer Pleads Guilty to $1.4M Fraud SchemeRead the Press Release
ALEXANDRIA, Va. – An Alexandria man pleaded guilty today to defrauding the U.S. government of approximately $1.4 million in tax revenue by preparing false tax returns on behalf of his unsuspecting clients.
According to court documents, between 2016 and 2020, Lawrence Appiah-Osei, 58, ran a tax preparation business called New Look Enterprise out of his home in Alexandria. From at least 2017 through 2020, Appiah-Osei executed a scheme to fraudulently inflate the tax refunds of his clients. To do so, Appiah-Osei falsely claimed that his clients operated businesses that lost thousands of dollars each year. These fraudulent losses drove down the clients’ taxable income and increased the clients’ tax refunds. The Internal Revenue Service-Criminal Investigation (IRS-CI) estimates the Appiah-Osei’s actions resulted in a tax loss of approximately $1.4 million to the federal government.
Appiah-Osei is scheduled to be sentenced on November 3. He faces a maximum penalty of six 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 Acting Special Agent in Charge of the Washington D.C. Field Office, made the announcement after Senior U.S. District Judge T.S. Ellis, III accepted the plea.
Assistant U.S. Attorney Christopher Hood is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:23-cr-113.
St. Paul Felon Sentenced to 9.5 Years in Prison for Illegal Possession of FirearmsRead the Press Release
MINNEAPOLIS – A Minneapolis man has been sentenced to 115 months in prison followed by three years of supervised release for illegally possessing multiple firearms while on federal supervised release, announced United States Attorney Andrew M. Luger.
According to court documents, on September 27, 2022, a 911 caller reported seeing two males in a Ford Fusion on I-94 brandishing and pointing firearms. The caller also reported hearing a gunshot. Two Minnesota State Patrol squads located the Ford Fusion and conducted a traffic stop. The driver and the passenger, later identified as Antonio Maurice Hughes, 29, fled on foot into a nearby wooded area. After the St. Paul Police responded with a K9 unit, Hughes exited the wooded area and was taken into custody. When the K9 retraced Hughes’s flight path, officers found the defendant’s driver’s license, other personal papers and effects, and two loaded semiautomatic pistols. On November 15, 2022, federal agents executed a search warrant at Hughes’s apartment and recovered two additional firearms, both with attached high-capacity magazines. One of those firearms was determined to have been stolen.
This conduct occurred while Hughes was on supervised release following two 2016 federal convictions for firearms violations. Because of Hughes’s prior felony convictions, he is prohibited under federal law from possessing firearms or ammunition at any time.
On January 24, 2023, Hughes pleaded guilty to one count of possession of firearms as a felon and admitted to possessing the other two firearms. He was sentenced earlier today by Senior Judge David S. Doty.
This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Minnesota State Patrol, and the St. Paul Police Department.
Assistant U.S. Attorney Benjamin Bejar prosecuted the case.