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19 July 2023
Chinese National Real Estate Developer Appears in Court to Face Charges of Bribing A Prominent San Francisco Public OfficialRead the Press Release
SAN FRANCISCO - Zhang Li, founder and chief executive officer of a Chinese real estate development company appeared last night in U.S. District Court on charges that he bribed former head of the San Francisco Department of Public Works Mohammed Nuru, announced First Assistant United States Attorney Patrick Robbins, Federal Bureau of Investigation Special Agent in Charge Robert K. Tripp, and Internal Revenue Service-Criminal Investigation Special Agent in Charge Darren Lian. A U.S. company that Zhang controls, Z&L Properties, Inc., was also charged with honest services wire fraud for providing bribes and gifts to Nuru in exchange for favorable city treatment of Z&L Properties’ mixed-use project at 555 Fulton Street in San Francisco, Calif. As part of a negotiated disposition both Zhang and Z&L Properties will waive the right to indictment and admit that they engaged in certain conduct.
Zhang, 70, of Guangzhou, China, has been charged by Information with one count of conspiracy to commit honest services fraud. According to the Information, Zhang bribed Nuru by providing him with food, drinks, luxury lodging, and transportation during a trip Nuru took to China in 2018. The Information alleges the purpose of the bribe was to influence Nuru so that he would provide favorable treatment on decisions and city approvals needed during the construction and development of a mixed-use property at 555 Fulton Street in San Francisco being developed by Zhang and a company Zhang controlled.
Z&L Properties Inc., a U.S. company formerly based in Fremont, Calif., and controlled by Zhang, was also charged in a separate Information with conspiracy to commit honest services fraud and honest services wire fraud for its participation in the bribery scheme. Z&L Properties managed the development of the 555 Fulton Street project and the company facilitated the payment of bribes to Nuru in exchange for favorable treatment regarding the 555 Fulton project, according to the allegations in the criminal Information.
“Zhang Li and Z&L Properties have admitted that they bribed a top San Francisco public official. The criminal charges and resolutions announced today send a clear message that this office will not tolerate the corruption of public officials in the District by anyone, including individuals acting from outside of the United States,” said First Assistant U.S. Attorney Patrick Robbins. “To those who seek to corrupt public officials in the United States, wherever they are, we will use the powers at our disposal to bring them to justice and hold them accountable to the rule of law.”
“Zhang Li, who earned his profits through bribery of a San Francisco public official, is yet another individual charged in connection to our ongoing public corruption case,” said FBI Special Agent in Charge Robert Tripp. “Public corruption erodes public confidence and strikes at the very foundation of our government. The citizens of San Francisco deserve better, and we stand firmly committed to investigating both corrupt officials and private citizens who attempt to bribe them, no matter where they reside.”
“IRS-Criminal Investigation’s priority is to ensure a fair and level playing field for all taxpayers,” said Special Agent in Charge Darren Lian of the Oakland Field Office. “Mr. Li’s conduct shows that greed and financial crimes have no borders, and we will continue to pursue those who take advantage of our system and taxpayers by following the money worldwide. We are proud to have worked alongside our federal law enforcement partners and the U.S. Attorney’s Office in bringing this case a step closer to closure.”
Zhang originally was charged by criminal complaint in May of 2021. At the request of the United States, Zhang was arrested when he arrived in the United Kingdom in December 2022 and the United States pursued extradition. After approximately six months, Zhang consented to extradition and was subsequently surrendered to U.S. authorities. The charges against Zhang now are set forth in an Information filed by the government.
Zhang appeared yesterday before U.S. Magistrate Judge Alex Tse in the Northern District of California. Magistrate Judge Tse released Zhang on a bond pending further proceedings.
According to the documents filed in Zhang’s case, the defendant and the U.S. Attorney’s Office have entered a deferred prosecution agreement. Under that agreement filed today, Zhang admitted to the conduct that forms the basis of the charge in the Information, and, if Zhang abides by the terms of the deferred prosecution agreement, the charge will be dismissed in three years.
According to filed documents, Z&L Properties also will plead guilty to charges set out in the Information filed against it; Z&L also will agree to a comprehensive compliance and remediation program designed to prevent bribery and corruption in connection with Z&L Properties’ real estate development work. Z&L Properties has agreed to plead guilty to one count of conspiracy to commit honest services wire fraud and one count of honest services wire fraud, will pay a fine of $1,000,000, and will enter into a corporate compliance program acceptable to the Office of the U.S. Attorney. Z&L Properties appeared before U.S. Magistrate Judge Alex Tse today, and the court set a further hearing before U.S. District Judge William H. Orrick, on August 10, 2023, at 1:30 p.m.
The charges against Zhang and Z&L Properties arose from an investigation into bribery and public corruption in San Francisco city government led by the U.S. Attorney’s Office, the FBI, and IRS-CI. To date, more than 14 individuals and entities have been charged in connection that larger set of investigations, including Mohammed Nuru, former director of the San Francisco Public Works department; Harlan Kelly, the former general manager of the San Francisco Public Utilities Commission; and multiple city contractors and other facilitators of bribes and corruption.
Nuru was charged in January 2020, pleaded guilty in January 2022, and on August 25, 2022, Nuru was sentenced to 84 months in federal prison. A separate defendant charged in the investigation, Walter Wong, was charged in June 2020 with conspiracy to defraud the public of its right to honest services and with conspiracy to engage in money laundering, both involving Nuru. Wong entered a guilty plea and agreed to cooperate with the government’s San Francisco City Hall corruption investigation.
An Information merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the defendant Zhang faces a maximum sentence of 20 years imprisonment, a maximum fine of $250,000, plus restitution if appropriate. Z&L Properties faces a maximum fine of $500,000 per count, plus restitution if appropriate. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
The case is being prosecuted by the Corporate and Securities Fraud Section of the U.S. Attorney’s Office for the Northern District of California. Assistant U.S. Attorneys David Ward and Robert Leach are prosecuting the case. The prosecution is the result of an investigation by the FBI and the Internal Revenue Service-Criminal Investigations (IRS-CI). First Assistant U.S. Attorney Patrick Robbins thanked the Department of Justice’s Office of International Affairs and United Kingdom authorities for their assistance in the extradition.
2023-07-18_information_zhang_li.pdf 2023-07-18_information_zl_properties.pdfCharlotte Business Owner and Disaster Relief Loan “Consultant” Is Indicted for $1.2 Million COVID-19 Fraud SchemeRead the Press Release
CHARLOTTE, N.C. – A federal grand jury in Charlotte has returned a criminal indictment charging Glynn Paul Hubbard, Jr., 45, of Charlotte, with wire fraud and money laundering, for allegedly obtaining more than $1.2 million in fraudulent Paycheck Protection Program (PPP) and Economic Injury Relief Disaster Loan (EIDL) Program loans for himself and his customers, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Karen Wingerd, Acting Special Agent in Charge of IRS Criminal Investigation (IRS CI), Charlotte Field Office, joins U.S. Attorney King in making today’s announcement.
According to allegations in the indictment, from March 31, 2020, to August 1, 2020, Hubbard, Jr. submitted fraudulent PPP loan and EIDL applications to the U.S. Small Business Administration (SBA) and SBA-approved lenders, seeking to obtain relief funds for his businesses, Borrow My Ride, Balanced Society Corporation, The Regins Corporation, and GGGAB, Inc. To obtain the relief funds, the indictment alleges that Hubbard, Jr. falsified information in loan applications and supporting documentation, and provided false financial information, fake employment data, and fraudulent tax returns for his businesses. As a result of the scheme, the indictment alleges that Hubbard, Jr. received more than $570,000 in fraudulently obtained relief funds.
The indictment further alleges that Hubbard, Jr. also executed the scheme by submitting false and fraudulent applications for PPP and EIDL funds on behalf of customers, causing more than $660,000 in relief funds to be disbursed to his customers. Hubbard, Jr. allegedly promoted the fraudulent scheme through personal referrals and in social media posts where he advertised that he was a PPP loan/EIDL consultant. Over the course of the scheme, Hubbard, Jr. allegedly received improper loan preparer fees for his services totaling more than $150,000, and, to avoid detection, he allegedly required customers to pay the loan preparation fees in cash, via cashier’s checks, or wire transfers.
“Safeguarding taxpayer dollars and protecting disaster relief programs from fraud is a priority for my office,” said U.S. Attorney King. “Federal prosecutors are working side-by-side with investigators dedicated to identifying pandemic-related schemes and holding accountable individuals who sought to exploit COVID-19 economic relief programs put in place to help small businesses in a time of grave need.”
“During the pandemic, the defendant allegedly took advantage of a program intended to provide critical relief for businesses impacted by the COVID-19 outbreak,” said Acting Special Agent in Charge Wingerd. “IRS Cl is committed to bringing to justice to those who have exploited the pandemic for personal gain and have stolen from America’s taxpayers.”
The charges in the indictment are allegations and the defendant is presumed innocent unless and until proven guilty beyond reasonable doubt in a court of law.
The wire fraud charge carries a maximum prison sentence of 20 years and a $250,000 fine. The maximum statutory penalty for the money laundering offense is 10 years in prison and a $2500,000 fine.
In making today’s announcement, U.S. Attorney King credited IRS CI for the investigation which led to the charges.
Assistant U.S. Attorneys Caryn Finley and Cassye Cole with the U.S. Attorney’s Office in Charlotte are in charge of the prosecution.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with U.S. Attorneys’ Offices and agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866‑720‑5721 or via the NCDF Web Complaint Form at www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Career Offender Is Sentenced to 12+ Years on Drug and Gun ChargesRead the Press Release
CHARLOTTE, N.C. – Today, U.S. District Judge Max O. Cogburn, Jr. sentenced Allen Shunte Plowden, 38, of Charlotte, to 151 months in prison followed by six years of supervised release for cocaine distribution and illegal firearm possession, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Ronnie Martinez, Special Agent in Charge of Homeland Security Investigations (HSI) in North Carolina and South Carolina, and Chief Johnny Jennings of the Charlotte Mecklenburg Police Department (CMPD) join U.S. Attorney King in making today’s announcement.
According to filed documents and court proceedings, in May 2020, law enforcement initiated an investigation into Plowden, after receiving information that the defendant was distributing narcotics in the Charlotte area. On September 27, 2020, law enforcement executed a search warrant at Plowden’s residence, seizing cocaine, drug paraphernalia, digital scales, and other items consistent with drug distribution. Law enforcement also seized $40,000 in drug proceeds and 16 illegal firearms, some of which had been reported stolen.
On October 25, 2021, Plowden pleaded guilty to possession with intent to distribute cocaine and possession of a firearm by a convicted felon. At today’s court hearing, Plowden’s sentence was enhanced due to his classification as a “Career Offender” based on multiple prior convictions, including Robbery and Distribution/Manufacture of Cocaine Base and Distribution of a Controlled Substance Near a School.
In making today’s announcement, U.S. Attorney King commended HSI and CMPD for their investigation of the case.
Assistant United States Attorney Christopher Hess of the U.S. Attorney’s Office in Asheville prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Businessman Sentenced for Bribery Scheme and Tax EvasionRead the Press Release
The former executive vice president of an Atlanta engineering firm was sentenced today to five years in prison for paying bribes to two City of Atlanta officials in exchange for steering city business worth millions of dollars to his company, paying bribes to a former DeKalb County, Georgia, official in an attempt to obtain county contracts, and evading over $1.5 million in taxes.
According to court documents, Lohrasb “Jeff” Jafari, 72, of Alpharetta, Georgia, was the executive vice president of PRAD Group, an architectural, design, and construction management firm headquartered in Atlanta that performed services for the City of Atlanta and DeKalb County. Jafari also oversaw PRAD Group’s finances. From January 2003 to February 2017, Adam Smith served as the chief procurement officer (CPO) for the City of Atlanta and supervised the city’s purchasing activities and its expenditure of billions of dollars of public money. From April 2011 to May 2016, Jo Ann Macrina served as the City of Atlanta’s Commissioner of the Department of Watershed Management, a cabinet-level position from which she managed the city’s drinking water and wastewater systems and was responsible for an annual budget exceeding $500 million.
Jafari gave Smith and Macrina cash and other items of value to obtain business with the City of Atlanta. In exchange for those payments, Smith and Macrina conspired with Jafari to ensure that PRAD Group received city business worth millions of dollars, including by agreeing to replace two evaluators on the selection team for the city’s Architectural and Engineering contract and re-scoring an evaluation so that the city would award the contract to Jafari’s company.
During Smith’s tenure as the CPO, the City of Atlanta awarded contracts worth millions of dollars to PRAD Group and joint venture projects of which PRAD Group was a partner. For years, Jafari met privately with Smith on multiple occasions, frequently at local restaurants. During these meetings, Jafari and Smith discussed City of Atlanta procurement projects, bids, and solicitations. Often at the time of these meetings, Jafari was actively seeking additional work and assistance with ongoing city projects. Jafari paid Smith $1,000 in cash in the bathroom of the restaurant after most of the meetings. In return for these bribe payments, Jafari expected Smith to use his position and power to assist Jafari with contracting and procurement with the City of Atlanta. From at least 2014 to January 2017, Jafari paid Smith more than $40,000 in cash with the intent to influence Smith in his role as the city’s CPO.
In February 2017, Jafari became aware of the federal investigation into his bribe payments to Smith and confronted Smith at Atlanta City Hall. Jafari insisted that Smith lie to the FBI by denying that Smith took bribe money from him.
From at least 2013 through May 2016, Macrina met with Jafari to discuss City of Atlanta procurement projects, bids, and solicitations. Often when they met, Jafari was actively seeking contracts, projects, and work with the City of Atlanta. To obtain city work, Jafari promised Macrina a lucrative job with PRAD Group and, directly or through a PRAD Group employee, gave Macrina $10,000 in cash, jewelry, a room at a luxury hotel in Dubai, a luxury shopping trip in Dubai, and landscaping work at her home. Shortly after the City of Atlanta fired her, Macrina began working for Jafari and PRAD Group. Between June and September 2016, Jafari and/or PRAD Group paid Macrina $30,000 in four separate payments.
In April and August 2014, the FBI conducted two undercover operations using a confidential source. During two secretly recorded meetings, the confidential source met with Jafari at local restaurants, where Jafari sought assistance from the source to obtain work in DeKalb County. After the meetings, Jafari directed the source to the bathroom of the restaurants where Jafari made cash payments of $1,000 and $1,500.
In addition, from 2014 to 2016, Jafari neither filed personal tax returns, nor paid any income taxes to the IRS. During those years, Jafari withdrew large amounts of cash from corporate bank accounts and used money from the PRAD Group’s corporate accounts to pay for various personal expenses, including several luxury vehicles. Jafari evaded the payment of at least $1.5 million in taxes.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division, U.S. Attorney Ryan K. Buchanan for the Northern District of Georgia, Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division, and Acting Special Agent in Charge Demetrius Hardeman of the IRS Criminal Investigation (IRS-CI) Atlanta Field Office made the announcement.
The FBI Atlanta Field Office and IRS-CI investigated the case.
Trial Attorney Jolee Porter of the Criminal Division’s Public Integrity Section, Trial Attorney Todd Ellinwood of the Justice Department’s Tax Division, and Assistant U.S. Attorneys Jeffrey W. Davis and Nathan P. Kitchens for the Northern District of Georgia prosecuted the case.
Businessman Jeff Jafari sentenced to five years in federal prison for bribing City of Atlanta and DeKalb County officials to obtain contractsRead the Press Release
ATLANTA - Lohrasb “Jeff” Jafari, the former Executive Vice President of Atlanta engineering firm, PRAD Group, Inc., has been sentenced for paying bribes to two City of Atlanta officials in exchange for steering city business worth millions of dollars to his company, paying bribes to a former DeKalb County, Georgia, official in an attempt to obtain county contracts, and evading over $1.5 million in taxes.
“Jeff Jafari paid bribe after bribe to high-ranking government officials in the City of Atlanta and DeKalb County over several years and thereby obtained lucrative city contracts worth tens of millions of dollars,” said U.S. Attorney Ryan K. Buchanan. “The public paid a heavy price from every project unfairly awarded to Jafari’s companies through corruption, and he then compounded his harm by never paying any tax on his substantial personal income. His greed delivered a hard blow to public trust in honest and fair government, but this sentence underscores our commitment to prosecuting corruption in any form.”
"Circumventing the process to hire contractors for the city by accepting bribes to profit personally is one of the highest forms of public corruption," said Keri Farley, Special Agent in Charge of FBI Atlanta. "As this sentencing shows, the FBI and the City of Atlanta will not tolerate anyone who takes advantage of city funds and abuses their position of trust.”
“Residents expect fair and open competition for city contracts,” said Demetrius Hardeman, Acting Special Agent in Charge, IRS Criminal Investigation, Atlanta Field Office. “City officials who accept bribes undermine the contracting process and diminish trust in the government. IRS Criminal Investigation and our partners will continue investigating and holding those accountable who take the public trust for granted to enrich themselves.”
According to the charges and other information presented in court: From 1984 to 2018, PRAD Group was an architectural, design, and construction management firm headquartered in Atlanta, Georgia, that performed services for the City of Atlanta and DeKalb County, Georgia. Jafari served as PRAD Group’s Executive Vice President and oversaw PRAD Group’s finances.
From January 2003 to February 2017, Adam Smith served as the Chief Procurement Officer (CPO) for the City of Atlanta and supervised the city’s purchasing activities and its expenditure of billions of dollars of public money. From April 2011 to May 2016, Jo Ann Macrina served as the City of Atlanta’s Commissioner of the Department of Watershed Management, a cabinet-level position from which she managed the City’s drinking water and wastewater systems and was responsible for an annual budget exceeding $500 million.
Jafari gave Smith and Macrina cash and other items of value to obtain business with the City of Atlanta. In exchange for those payments, Smith and Macrina conspired with Jafari to ensure that PRAD Group received city business worth millions of dollars, including by agreeing to replace two evaluators on the selection team for the city’s Architectural and Engineering contract and to re-score an evaluation so that Jafari’s company would be awarded a contract.
During Smith’s tenure as the CPO, the City of Atlanta awarded contracts worth millions of dollars to PRAD Group and joint venture projects of which PRAD Group was a partner. For years, Jafari met privately with Smith on multiple occasions, frequently at local restaurants. During these meetings, Jafari and Smith discussed City of Atlanta procurement projects, bids, and solicitations. Often at the time of these meetings Jafari was actively seeking additional work and/or assistance with ongoing city projects. Jafari paid Smith $1,000 in cash in the bathroom of the restaurant after most of the meetings. In return for these bribe payments, Jafari expected Smith to use his position and power to assist Jafari with contracting and procurement with the City of Atlanta. From at least 2014 to January 2017, Jafari paid Smith more than $40,000 in cash with the intent to influence Smith in his role as the city’s CPO.
In February 2017, Jafari became aware of the federal investigation into his bribe payments to Smith and confronted Smith at Atlanta City Hall. Jafari insisted that Smith lie to the FBI by denying that Smith took bribe money from him.
From at least 2013 through May 2016, Macrina met with Jafari to discuss City of Atlanta procurement projects, bids, and solicitations. Often at the time of these meetings, Jafari was actively seeking contracts, projects, and work with the City of Atlanta. To obtain city work, Jafari promised Macrina a lucrative job with PRAD Group and, directly or through a PRAD Group employee, gave Macrina $10,000 in cash, jewelry, a room at a luxury hotel in Dubai, a luxury shopping trip in Dubai, and landscaping work at her home. Shortly after the City of Atlanta fired her, Macrina began working for Jafari and PRAD Group. Between June and September 2016, Jafari and/or PRAD Group paid Macrina $30,000 in four separate payments.
On April 8 and August 21, 2014, the FBI conducted two undercover operations using a confidential source (who at the time, was a high-ranking DeKalb County official). During two surreptitiously recorded meetings, the confidential source met with Jafari at local restaurants, where Jafari sought assistance from the confidential source to obtain work in DeKalb County. After the meetings, Jafari directed the confidential source to the bathroom of the restaurants where Jafari paid the confidential source cash payments of $1,000 and $1,500.
From 2014 to 2016, Jafari neither filed personal tax returns, nor paid any income taxes to the IRS. During those years, Jafari withdrew large amounts of cash from corporate bank accounts and used money from the PRAD Group’s corporate accounts to pay for various personal expenses, including several luxury vehicles. Jafari evaded the payment of at least $1.5 million in taxes.
Lohrasb “Jeff” Jafari, 72, of Alpharetta, Georgia, was sentenced before U.S. District Judge Steve C. Jones to five years in prison, three years supervised release, a $300 special assessment, and $909,674 in restitution. In April 2023, Jafari pleaded guilty to one count each of conspiratorial bribery, substantive bribery, and tax evasion.
The Federal Bureau of Investigation and Internal Revenue Service Criminal Investigation investigated the case.
Assistant U.S. Attorneys Jeffrey W. Davis and Nathan P. Kitchens, Trial Attorney Jolee Porter of the Justice Department’s Public Integrity Section, and Trial Attorney Todd Ellinwood of the Justice Department’s Tax Division prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Browning man charged with first degree murder, sexual abuse in death of woman on Blackfeet Indian ReservationRead the Press Release
GREAT FALLS — A Browning man suspected in the death of a woman on the Blackfeet Indian Reservation appeared on July 18 on murder and sexual abuse charges, U.S. Attorney Jesse Laslovich said today.
Paul Andrew Vielle, 58, pleaded not guilty to an indictment charging him with first degree felony murder, second degree murder and aggravated sexual abuse. Vielle faces a mandatory term of life imprisonment and a $250,000 fine if convicted of first degree felony murder.
U.S. Magistrate Judge John T. Johnston presided. Vielle was detained pending further proceedings.
The indictment alleges that on April 22, near Cut Bank John Coulee, in the Meriwether area on the Blackfeet Indian Reservation, Vielle killed the victim, identified as Jane Doe, by cold exposure and that he engaged in a sexual act by force against Jane Doe.
Assistant U.S. Attorney Kalah A. Paisley is prosecuting the case. The Bureau of Indian Affairs, FBI, Blackfeet Law Enforcement Services, Glacier County Sheriff’s Office and Montana Highway Patrol conducted the investigation.
An indictment is merely an accusation, and a defendant is presumed innocent until proven guilty beyond a reasonable doubt.
PACER case reference. 23-67.
The progress of cases may be monitored through the U.S. District Court Calendar and the PACER system. To establish a PACER account, which provides electronic access to review documents filed in a case, please visit http://www.pacer.gov/register.html. To access the District Court’s calendar, please visit https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl
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Brookline Man Pleads Guilty to Possessing Machine GunsRead the Press Release
BOSTON – A Brookline man pleaded guilty in federal court today to illegally possessing two machine guns.
Stewart Silvestri, 24, pleaded guilty to one count of unlawful possession of machine guns. U.S. District Court Judge Denise J. Casper scheduled sentencing for Oct. 12, 2023. Silvestri was charged by criminal complaint on Nov. 16, 2022.
On Oct. 15, 2022, law enforcement responded to multiple calls for an erratic driver on Route 95 in Rowley, Mass., who had pulled into a weigh station. Upon arriving at the weigh station, law enforcement approached the driver – Silvestri – who stated he had just come from an armory in New Hampshire. While asking for his license and registration, law enforcement observed Silvestri sitting on what appeared to be firearms. A subsequent search of the vehicle recovered 14 privately made firearms (also known as ghost guns), hundreds of rounds of ammunition and numerous firearm parts. Two of the firearms were fully automatic pistols, classified as machine guns.
The charging statute provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy; James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Boston Field Division; John E. Mawn Jr., Interim Colonel of the Massachusetts State Police; and Essex County District Attorney Paul F. Tucker made the announcement today. Assistant U.S. Attorney Philip C. Cheng of the Organized Crime & Gang Unit is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Bozeman man charged with interfering with flight crew, abusive sexual contact on aircraftRead the Press Release
MISSOULA — A Bozeman man who is accused of interfering with a flight crew and engaging in abusive sexual contact with another person while a passenger on a flight from Salt Lake City, Utah, to Bozeman was arraigned on charges on July 18, U.S. Attorney Jesse Laslovich said today.
Hunter Andrew Dietrich, 42, pleaded not guilty to an indictment charging him with interference with flight crew members and attendants and one count of abusive sexual contact in special aircraft jurisdiction of the United States. Dietrich faces a maximum of 20 years imprisonment, a $250,000 fine and three years of supervised release on the interference charge. He faces a maximum of two years imprisonment, a $250,000 fine and one year of supervised release on the abusive sexual contact charge.
U.S. District Magistrate Judge Kathleen L. DeSoto presided. Dietrich was released pending further proceedings.
As alleged in the indictment, on Feb. 11, while aboard Delta Airlines Flight 3789 from Salt Lake City, Utah, to Bozeman, Dietrich assaulted and intimidated flight crew members and attendants, interfered with the performance of their duties and lessened their ability to perform their duties. Additionally, the indictment alleges that while on the flight, Dietrich knowingly engaged in sexual contact with another person without that person’s permission.
An indictment is merely an accusation, and a defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Assistant U.S. Attorney Zeno B. Baucus is prosecuting the case. The FBI and Bozeman Airport Police conducted the investigation.
PACER case reference. 23-55.
The progress of cases may be monitored through the U.S. District Court Calendar and the PACER system. To establish a PACER account, which provides electronic access to review documents filed in a case, please visit http://www.pacer.gov/register.html. To access the District Court’s calendar, please visit https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl
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Boston Woman Sentenced for Physical Therapy Clinic Fraud SchemeRead the Press Release
BOSTON – A Boston woman was sentenced today in federal court in Boston in connection with a scheme to defraud multiple insurance providers for physical therapy services that were not provided to patients.
Raya Bagardi, 38, was sentenced by U.S. District Court Judge Richard G. Stearns to time served (one day) and two years of supervised release, with the first year to be spent in home confinement. Bagardi was also ordered to pay restitution in the amount of $2,301,645. In March 2023, Bagardi pleaded guilty to one count of conspiracy to commit mail fraud. Bagardi was indicted in February 2021 along with co-defendants Gyulnara Bayryshova, Anna Barenboym and Slava Pride.
Bagardi was a licensed physical therapy assistant at Brighton Physical Therapy (BPT), a Brighton-based physical therapy clinic owned by Bayryshova. From October 2018 through June 2020, Bayryshova, Bagardi and their co-defendants conspired to be reimbursed by multiple insurance companies for physical therapy services that were not actually provided and/or were not medically necessary and, in some cases, were provided by individuals not licensed to provide the services. Specifically, Bagardi and her co-defendants falsely billed for services purportedly rendered to patients injured in automobile accidents when the services were not actually provided. Further, BPT paid patients for referrals and referred patients to attorneys to assist with patients’ insurance settlements.
All three of Bagardi’s co-defendants have pleaded guilty to their roles in the conspiracy. On July 12, 2023, Pride was sentenced to two years in prison and two years of supervised release. Pride was also ordered to pay restitution of $2,301,645. Bayryshova and Barenboym are scheduled to be sentenced on July 26, 2023 and September 2023, respectively.
Acting United States Attorney Joshua S. Levy; Christopher DiMenna, Acting Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Anthony DiPaolo, Chief of Investigations of the Insurance Fraud Bureau of Massachusetts; Boston Police Commissioner Michael Cox; and Quincy Police Chief Mark Kennedy made the announcement today. Assistant U.S. Attorney Laura J. Kaplan of the Criminal Division prosecuted the case.
Billings felon admits illegal possession of firearmRead the Press Release
BILLNGS — A Billings man with two prior federal felony convictions admitted today to illegally possessing a firearm, U.S. Attorney Jesse Laslovich said.
Robert John Bigback, 28, pleaded guilty to prohibited person in possession of a firearm or ammunition. Bigback faces a maximum of 15 years in prison, a $250,000 fine and three years of supervised release.
U.S. District Judge Susan P. Watters presided. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other sentencing factors. Sentencing was set for Nov. 15. Bigback was detained pending further proceedings.
The government alleged in court documents that on March 9, Bigback’s mother found him sleeping in her house with a gun next to his head. His father brought the firearm, a Smith and Wesson 9mm pistol, to the United States Federal Probation Office. When Bigback woke up, his mother saw him frantically looking for something where the gun had been. Bigback told his mother he had been using methamphetamine, was paranoid and thought people were after him. Bigback had prior felony federal convictions for being a felon in possession of a firearm and for distribution of meth, and he was prohibited from possessing firearms.
Assistant U.S. Attorney Timothy J. Racicot is prosecuting the case. The Bureau of Alcohol, Tobacco, Firearms and Explosives, United States Probation Office and Montana Division of Criminal Investigation 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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Belle Fourche Man Sentenced to ProbationRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Jeffrey L. Viken has sentenced a Belle Fourche, South Dakota, man convicted of Concealment of an Event Affecting Title II Disability Entitlement. The sentencing took place on July 17, 2023.
Kevin Dodd Eisele, 60, was sentenced to one year of probation, ordered to pay $1,652.90 in restitution, and a $100 special assessment to the Federal Crime Victims Fund.
Eisele was indicted for Theft of Government Funds and Concealment of an Event Affecting Title II Disability Entitlement by a federal grand jury in March of 2022. He pleaded guilty on March 3, 2023.
The conviction stemmed from between July of 2020 and June of 2021, when Eisele knowingly failed to disclose a change in his household resources in order to continue receiving and spending his SSI benefits.
This case was investigated by the Social Security Administration, Office of the Inspector General. Assistant U.S. Attorney Anna Lindrooth prosecuted the case.
Arizona Man Sentenced After Pleading Guilty to Violating the Federal Controlled Substances ActRead the Press Release
NEW ORLEANS, LOUISIANA – KABIEN CORTES, age 34, a resident of Phoenix, Arizona, was sentenced by United States District Judge Jane Triche Milazzo to seventy (70) months’ imprisonment, three (3) years of supervised release, and a $100.00 mandatory special assessment fee after pleading guilty to a superseding bill of information charging him with one count of conspiracy to distribute and possess with intent to distribute a quantity of a mixture or substance containing a detectable amount of methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(C), and 846, announced U.S. Attorney Duane A. Evans.
According to court documents, on March 16, 2020 during a DEA investigation, a drug supplier arranged the delivery of methamphetamine to the New Orleans area. On March 19, 2020, the DEA determined that a driver, later identified as Joanna Manzano, was travelling from Phoenix, Arizona to New Orleans with the methamphetamine and would need money for expenses. The DEA also determined that the methamphetamine was in liquid form and that another individual would arrive in New Orleans at a later date to convert the liquid methamphetamine into a solid form.
The investigation disclosed that Manzano, accompanied by Cortes, traveled to New Orleans. After Manzano and Cortes arrived in Louisiana, law enforcement officers identified their vehicle and maintained surveillance on them until they arrived in Metairie. On March 20, 2020, at approximately 11:50 p.m., Louisiana State Troopers conducted a traffic stop of Manzano and Cortes. After obtaining consent to search the vehicle, troopers noticed that the bed-liner of the truck had been removed and was being held in place by a rubber cord. A continued search of the vehicle resulted in the discovery of approximately 4,576 grams of liquid methamphetamine in the gas tank of the vehicle.
This case was investigated by the Drug Enforcement Administration and the Louisiana State Police. The prosecution was handled by Assistant United States Attorney André Jones of the Narcotics Unit.
American man who sexually abused multiple Filipino girls sentenced to 50 yearsRead the Press Release
ATLANTA - Stephen Gordon Grimes has been sentenced for producing child pornography overseas and transporting the material to the United States. Over the course of three years, he recorded videos of his sexual abuse of girls as young as four years old.
“Grimes exploited poverty in the Philippines to gain access to multiple young girls,” said U.S. Attorney Ryan K. Buchanan. “He sexually abused these children for multiple years and recorded the crimes. His sentence rightly reflects the harm that he inflicted on these children.”
“I’m thankful for the successful resolution of and I’m happy that the victims can begin the healing process knowing that this predator will no longer be able to prey upon them,” said Acting Special Agent in Charge Travis Pickard, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama. “HSI and its law enforcement partners around the globe work tirelessly to protect the most vulnerable population and hold those who seek to prey upon them, accountable.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: around 2009, Grimes met two Filipino women in an online chat room. These women, who were sisters, agreed to arrange for Grimes to sexually exploit young girls in the Philippines, including the children of one of the women. Grimes worked as a civilian contractor on a Navy ship and often traveled to the Philippines at the end of each contract. He paid one of the women $500 a month to gain exclusive access to his child victims while he was in the Philippines.
Beginning no later than February 2016 and continuing until May 2019, Grimes used a GoPro device to record his sexual abuse of Filipino girls between the ages of four and 13 years. He also used a cell phone camera to record his sexual assault of the girls.
When Grimes traveled from South Korea to Hartsfield-Jackson International Airport in Atlanta on September 29, 2020, special agents with Homeland Security Investigations (HSI) confiscated his computers, cell phone and other electronic devices. A subsequent analysis of these items revealed that he had produced 340 videos and 650 images of his abuse of Filipino girls. The analysis of his computer also showed that he downloaded 523 videos and 4,470 images of child pornography from the internet.
Following Grimes’ arrest, HSI special agents undertook an operation that led to the rescue of the girls whom he had exploited and resulted in the local prosecution of the two women who conspired with Grimes.
Stephen Gordon Grimes, 51, of Lompoc, California, has been sentenced to 50 years in prison to be followed by a lifetime term of supervised release. Grimes was found guilty by a jury on April 7, 2023, of multiple counts of producing child pornography outside the United States, attempting to transport child pornography, and possessing child pornography. Parole does not exist in the federal prison system.
This case was investigated by Homeland Security Investigations.
Assistant U.S. Attorneys Paul R. Jones and Amy M. Palumbo prosecuted the case.
This case is being brought as part of Project Safe Childhood. In February 2006, the Attorney General launched Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices around the country, Project Safe Childhood marshals federal, state and local resources to apprehend and prosecute individuals who exploit children. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Amazon Agrees to Injunctive Relief and $25 Million Civil Penalty for Alleged Violations of Children’s Privacy Law Relating to AlexaRead the Press Release
The Justice Department, together with the Federal Trade Commission (FTC), today announced that Amazon.com Inc. and its wholly-owned subsidiary Amazon.com Services LLC (collectively Amazon), have agreed to a permanent injunction and a $25 million civil penalty as part of a settlement to resolve alleged violations of the Children’s Online Privacy Protection Act (COPPA), the Children’s Online Privacy Protection Rule (COPPA Rule) and the Federal Trade Commission Act (FTC Act) relating to Amazon’s voice assistant service Alexa.
Alexa is a proprietary voice-activated service that Amazon provides through its Echo smart speakers, its “Alexa App” mobile application, and other devices and applications. Since May 2018, Amazon’s Alexa-related offerings have included voice-activated products and services directed toward children under 13 years of age. When a user makes a verbal request of an Alexa-enabled device, Amazon saves the voice recording of the request and creates a written transcript of it.
In a complaint filed in the U.S. District Court for the Western District of Washington, the government alleges that, since at least May 2018, Amazon violated the FTC Act, COPPA and the COPPA Rule with respect to Alexa and Alexa’s child-directed offerings. The complaint alleges that Amazon retained children’s voice recordings indefinitely by default, in violation of COPPA’s requirement that these recordings be retained only as long as reasonably necessary to fulfill the purposes for which they were collected. Other alleged violations include making deceptive representations that Alexa app users could delete their or their children’s voice recordings, including audio files and transcripts and their geolocation information, when in fact Amazon on some occasions failed to delete all such information at users’ request. The complaint also alleges that Amazon engaged in unfair privacy practices with respect to Alexa users’ geolocation information and voice recordings, including (in some instances) by failing to honor users’ deletion requests and failing to notify consumers that it had not done so.
The stipulated order entered today by the federal district court requires Amazon to pay $25 million in civil penalties. The order imposes injunctive relief that requires Amazon to identify and delete inactive child profiles (profiles that have not been used for 18 months) unless a parent requests that they be retained. Amazon also will notify parents whose children have accounts of this change to its policies. The order further prohibits Amazon from making misrepresentations about Amazon’s retention, access to or deletion of geolocation information or voice information, including children’s voice information, and mandates deletion of geolocation information, voice information, and children’s personal information upon the request of the user or parent, respectively. Finally, the order requires Amazon to make disclosures to consumers relating to its retention and deletion practices regarding Alexa App geolocation information and voice information.
“Today’s settlement reflects the department’s dedication to protecting children online,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department and the FTC are committed to working together to ensure that companies do not misrepresent to parents how children’s personal information is handled, retained, or deleted, and do not retain that information for longer than reasonably necessary.”
“Amazon’s history of misleading parents, keeping children’s recordings indefinitely, and flouting parents’ deletion requests violated COPPA and sacrificed privacy for profits,” said Director Samuel Levine of the FTC’s Bureau of Consumer Protection. “COPPA does not allow companies to keep children’s data forever for any reason, and certainly not to train their algorithms.”
“Parents want and deserve to have control over data related to their young children – this includes recordings of the child’s voice, the child’s location, and the questions the child asks an Alexa device,” said Acting U.S. Attorney Tessa M. Gorman for the Western District of Washington. “Some may be delighted to have those recordings saved for sentimental reasons – but that needs to be the parent’s choice – not a decision made by Amazon. This settlement requires Amazon to provide notice to parents with ways they can select whether and how that data is retained.”
This matter was handled by Senior Trial Attorney James T. Nelson and Assistant Directors Lisa Hsiao and Rachael Doud of the Civil Division’s Consumer Protection Branch, Assistant U.S. Attorney Kayla Stahman for the Western District of Washington and Elisa Jillson, Andrew Hasty and Julia Horowitz of the FTC.
For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at www.justice.gov/civil/consumer-protection-branch. For more information about the FTC, visit its website at www.FTC.gov.
Accountant Indicted for Embezzling More than $715,000 from Spokane Medical PracticeRead the Press Release
Spokane, Washington – Today, Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington, announced that a grand jury returned an Indictment charging Carol Casilla, age 25, of Spokane, Washington, with forty-six counts of fraud in connection with Casilla’s theft of more than $715,000 from a Spokane medical practice at which she was employed between 2020 and 2023.
Between May 2020 and March 2023, Casilla was employed as an accountant by Spokane Dermatology Clinic (SDC), a dermatological practice located in Spokane. The Indictment alleges that, while employed at SDC, Casilla used her position to fraudulently issue company checks to herself and deposit them into her own personal accounts, and to make electronic funds transfers using company funds toward her personal credit cards. The Indictment alleges that some of the transfers were made to a fictitious company that Casilla created in order to make it appear as though the transfers were for legitimate company expenditures. According to the Indictment, Casilla made hundreds of fraudulent transfers in this manner, stealing more than $715,000 in total.
“Accountants, bookkeepers, and financial professionals have access to funds and sensitive financial information,” said United States Attorney Waldref. “When they abuse that access in order to line their own pockets, they devastate our communities. We will continue to work hand-in-glove with our law enforcement partners and with the community to hold accountable those individuals who abuse their positions of trust.”
The fraud charges carry maximum sentences of up to 30 years in federal prison. This case was investigated by the Federal Bureau of Investigation, Spokane Resident Agency. Assistant United States Attorneys Dan Fruchter and Tyler H.L. Tornabene are prosecuting the case on behalf of the United States.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
United States v. Casilla, Case No: 2-23-CR-00085-TOR
18 July 2023
Wisconsin Man Pleads Guilty to Producing Child PornographyRead the Press Release
ST. PAUL, Minn. – A Manitowoc, Wisconsin man has pleaded guilty to producing a video depicting his sexual abuse of a minor in Minnesota, announced U.S. Attorney Andrew M. Luger.
According to court documents, on or about June 7, 2019, Jason Lee, 28, used and coerced a prepubescent minor to engage in sexually explicit conduct for the purpose of producing a visual depiction of such conduct.
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. Attorney’s Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Lee pleaded guilty on July 17, 2023, in U.S. District Court before Judge Donovan W. Frank to one count of attempted production and production of child pornography. A sentencing hearing will be scheduled at a later time.
This case is the result of an investigation conducted by the FBI, Saint Paul Police Department, and Manitowoc, Wisconsin Police Department.
Assistant U.S. Attorney Hillary A. Taylor is prosecuting the case.
U.S. Department of Justice, Federal Trade Commission, Federal Communications Commission and Other Federal and State Law Enforcement Agencies Announce Results of Nationwide Initiative to Curtail Illegal Telemarketing OperationsRead the Press Release
The Justice Department, Federal Trade Commission (FTC), and Federal Communications Commission (FCC) announced today a crackdown on telemarketing operations responsible for billions of illegal calls to U.S. consumers. The U.S. Postal Inspection Service, Social Security Administration Office of the Inspector General and other law enforcement partners, including attorneys general from all 50 states and the District of Columbia, joined the announcement.
Today’s announcement caps approximately a year of enforcement actions taken by federal and state agencies to combat the scourge of illegal telemarketing, including robocalls and scam calls. In the last year, the department has pursued approximately 90 cases against illegal telemarketing operations and those who facilitate those illegal calls. This initiative, “Operation Stop Scam Calls,” targets telemarketers, including those who use telephone calls to commit fraud, as well as those who facilitate illegal telephone calls. Enforcement actions targeted lead generators who deceptively collect consumers’ telephone numbers and then provide those telephone numbers to robocallers and others (falsely representing that these consumers have consented to receive calls), as well as Voice over Internet Protocol (VoIP) service providers who facilitate tens of billions of illegal robocalls every year. Significant actions also were taken against individuals and entities who unjustly profited by facilitating the movement of money from scam call victims to fraudsters.
“Illegal telephone calls interrupt cherished time with family and friends and, when they are used to commit fraud, can be financially and emotionally devastating,” said Deputy Assistant Attorney General Arun G. Rao of the Justice Department's Civil Division, Consumer Protection Branch, who appeared at a press conference in Chicago announcing the initiative. “The department and its partners are committed to pursuing those who make and facilitate these calls.”
“Today, government agencies at all levels are united in fighting the scourge of illegal telemarketing. We are taking action against those who trick people into phony consent to receive these calls and those who make it easy and cheap to place these calls,” said Director Samuel Levine of the FTC’s Bureau of Consumer Protection. “The FTC and its law enforcement partners will not rest in the fight against illegal telemarketing.”
“The FCC is committed to using every tool at its disposal to crack down on illegal robocalls and protect the US communications network,” said Chief Loyaan Egal of the FCC’s Enforcement Bureau. “We, alongside our partners, will not let up in tracking, prosecuting, and penalizing the bad actors in this space and protecting consumers.”
Cases brought by the department targeted both foreign and domestic telemarketing operations. These cases ranged from actions targeting fraudsters who directly contacted victims to actions targeting those who provided scam call operators with the means to perpetrate their schemes. The department’s actions contributed to the collective actions, over 180, taken by the federal and state partners participating in Operation Stop Scam Calls.
The department’s Consumer Protection Branch brought nine civil actions in partnership with the FTC, which collectively alleged conduct involving billions of robocalls. Four of these cases involved lawsuits against VoIP providers that transmitted illegal phone calls. Some of these calls were scams arising from foreign call centers, such as calls by fraudsters pretending to be government agencies or impersonating e-commerce companies. Defendants, as alleged in the government’s complaints, continued to transmit illegal calls even after being warned that those calls were scam pitches. These cases also included a resolution with multinational payment processing company Nexway, arising from a lawsuit that alleged that the company processed credit card payments for India-based Tech Live Connect and other foreign clients that committed telemarketing fraud via tech support scams.
Cases brought by the department also involved criminal charges against those alleged to have made illegal phone calls or facilitated such calls. Many of these cases involved foreign fraud operations that victimized older adults. The department prosecuted perpetrators of various lottery fraud schemes, in which consumers were falsely told they had won a large prize but must first pay money to receive that prize.
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In three separate matters brought by the Consumer Protection Branch, three individuals were extradited from Jamaica. Two have since pleaded guilty.
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The Criminal Division’s Fraud Section secured a nearly 133-month sentence in a Costa Rica-based lottery scheme.
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The U.S. Attorney’s Office for the District of Arizona secured a 160-month sentence for a leader of an international fraud ring who distributed lead lists containing the personal information of thousands of victims.
Additional lottery fraud-related criminal matters include those brought by the U.S. Attorney’s Offices for the District of Connecticut, the Eastern District of California, the Eastern District of New York, the District of South Carolina, the District of Nebraska, the Northern District of Florida, and the Northern District of Ohio.
The Justice Department and its partners urge consumers to be on the lookout for illegal calls, to take steps to minimize the number of illegal calls received, and to report any scam calls to law enforcement.
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Callers may pressure you to send money by trying to scare you. They may pretend to be someone you know who is in trouble, a government agency, or a major company. These are fraudsters. Hang up.
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Don’t trust your caller ID. It can be faked.
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If you answer the telephone and hear a recorded message instead of a live person, it’s potentially a robocall trying to sell you something. It is probably illegal and likely a scam.
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Only call a telephone number you know is real.
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Make sure your number is on the Do Not Call Registry and consider using your telephone’s call blocking options or getting a call blocking app or service.
For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at www.justice.gov/civil/consumer-protection-branch. To review a list of common transnational elder fraud scams, many facilitated by telephone calls, visit www.justice.gov/civil/consumer-protection-branch/transnational-elder-fraud-strike-force.
To learn more about the department’s elder fraud efforts, visit www.justice.gov/elderjustice. If you or someone you know is age 60 or older and has experienced financial fraud, experienced professionals are standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This Department of Justice hotline, managed by the Office for Victims of Crime, can provide personalized support to callers by assessing the needs of the victim and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis. The hotline is open Monday through Friday from 10:00 a.m. to 6:00 p.m. ET. English, Spanish and other languages are available.
For more information on unwanted calls, including steps people can take to avoid robocall scams and to hear examples of illegal calls, visit www.ftc.gov/calls, which is also available in Spanish at www.ftc.gov/llamadas.
Some of the cases referenced in today’s announcement are charges, which are merely allegations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
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U.S. Attorney’s Office, Joined by State and Local Agencies, to Host Summer One-Stop Reentry Resource Fair at the War Memorial in Baltimore on Wednesday, July 19, 2023Read the Press Release
Baltimore, Maryland – On Wednesday, July 19, 2023, the U.S. Attorney’s Office for the District of Maryland, the U.S. Probation and Pretrial Services Office, and the Maryland Division of Parole and Probation, will sponsor a one-stop reentry resource fair that will be held from 10:00 a.m. to 2:00 p.m. at the Baltimore War Memorial, 101 N. Gay Street, Baltimore, MD. More than 40 organizations, including at least 20 employers, will be on-site offering support, assistance and resources to returning citizens and justice-involved persons, including in the areas of employment, job training, educational opportunities, health services, transitional housing, expungement help and more.
This reentry resource and job fair is a component of the U.S. Attorney’s Office’s violent crime reduction strategy. In addition to the office’s enforcement efforts to remove violent criminals with guns from our communities, the U.S. Attorney’s Office has initiated a number of outreach, intervention and prevention efforts to support and invest in communities plagued by violence, such as this reentry resource fair.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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U.S. Attorney and Federal Partners Address Gun Violence and Firearms Trafficking in ConnecticutRead the Press Release
U.S. Attorney Vanessa Roberts Avery and the leadership of the U.S. Attorney’s Office’s Violent Crimes and Narcotics Unit convened a series of meetings last week with federal, state, and local law enforcement agencies to discuss continuing strategies to curb gun violence and firearms trafficking in Connecticut.
“While I and members of my office regularly meet with our law enforcement partners to share information, discuss crime trends, and coordinate investigations and prosecutions, these meetings take on an added significance during the summer months when cities in Connecticut and across the country traditionally experience an uptick of gun violence and related criminal activity,” said U.S. Attorney Avery. “Using a data-driven, intelligence, and evidence-based approach, we are able to focus on the small number of individuals who are driving the violence in our cities. Then, either through our violence prevention engagement initiatives, or through federal or state prosecution, we aim to stop the violence before it occurs. Our collective goal is to make our communities safer by freeing it of recurrent gun violence and the trauma it causes.”
“Working collaboratively with our local, state, and federal law enforcement partners, we continue to aggressively combat Connecticut gun violence and trafficking,” said FBI Special Agent in Charge Robert Fuller. “Our FBI violent crime and violent gang task forces, which are located throughout Connecticut, consistently prove to be very effective in addressing gun violence in our cities and towns. This violent threat plaguing our communities is a top priority for the FBI.”
“ATF is committed to our continued collaboration and support of our local, state and federal partners to address violent gun crime,” said ATF Special Agent in Charge James Ferguson.
“DEA is committed to investigating and dismantling violent drug trafficking organizations operating in Connecticut,” said DEA Special Agent in Charge Brian D. Boyle. “As we all know, drug trafficking in our communities, along with the gun and physical violence that often accompanies it, is a serious threat to our families and communities. DEA and its local, state, and federal partners will continue to work collaboratively to bring to justice those that commit these crimes.”
“The U.S. Postal Inspection Service stands with our federal, state, and local partners to confront the violence in our communities,” said Ketty D. Larco-Ward, Inspector in Charge, U.S. Postal Inspection Service. “We will aggressively pursue the criminals who, through their misuse of the U.S. Mail, facilitate the crimes which fuel the violence on our streets.”
As the majority of violent crime in Connecticut occurs in heavily-populated Bridgeport, Hartford, New Haven and Waterbury, the U.S. Attorney’s Office currently coordinates Project Safe Neighborhoods (PSN) programs in each of these cities. PSN, the centerpiece of the Department of Justice’s violent crime reduction efforts, focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime. The U.S. Attorney’s Office has recently supplemented resources in these four PSN cities, and continues to focus on violent crime in other cities across the state.
Each PSN city’s police department is also an important participant in multiple federal law enforcement task forces that address crime throughout the region. Other Connecticut police departments also contribute significantly to federal task forces.
Another significant part of federal law enforcement’s gun violence reduction strategy involves long-term investigations that target members of gangs and groups responsible for much of the violence in Connecticut’s cities. In Bridgeport, more than 30 alleged gang members have been charged across multiple indictments with offenses related to narcotics trafficking, murders, and other acts of violence committed in recent years. The U.S. Attorney’s Office is also currently prosecuting alleged gang members and associates in New Haven and Waterbury.
The U.S. Attorney’s Office is also focusing on the illegal straw purchasing of firearms, the trafficking of firearms into Connecticut and around the state, increasing numbers of privately-made firearms (“PMFs” or “ghost guns”), as well as firearms containing “switches,” which convert ordinary firearms into fully automatic machine guns.
“We are constantly challenged by the sheer number of illegal firearms on the streets, the destructive strength of many of them, and technologies that make their manufacture easier and their tracing harder,” said U.S. Attorney Avery. “These guns endanger the community and the officers who are sworn to protect us. This is why we are prioritizing the prosecution of individuals who help turn legal firearms into illegal firearms, and those who manufacture and traffic guns. Police departments are also increasing the use of the ATF-sponsored National Integrated Ballistic Information Network (NIBIN) to help connect recovered firearms to shell casings found at shooting scenes, which leads to additional arrests and successful prosecutions.”
In addition to the prosecution of firearm and violent crime cases, and the violence prevention efforts that are a major component of PSN, members of the U.S. Attorney’s Office also actively participate in federal court-sponsored programs in an effort to reduce recidivist behavior and make communities safer, including Reentry Court, which offers assistance to formerly-incarcerated individuals on federal supervised release, and Support Court, which connects federal offenders with drug and alcohol addiction to treatment, other resources, and support networks. The Office has also reached thousands of teens through FED-UP and HEAT, which are anti-violence and drug prevention programs for middle school and high school students emphasizing the extreme dangers of joining groups engaged in violent crime, and of experimentation with fentanyl, including fake pills.
“Ultimately, we know that reducing gun violence requires a multi-pronged approach, which is why members of my office and our law enforcement partners devote much time and energy engaging with returning citizens who have been through the penal system, as well as with youth who we hope will take a different path, to reduce the cycle of violence and save countless lives,” said U.S. Attorney Avery.
U.S. Attorney Thompson Announces Human Trafficking Training Initiative for Educators and Social WorkersRead the Press Release
CHARLESTON, W.Va. – United States Attorney Will Thompson joined with West Virginia education and human services leaders and federal law enforcement partners today to announce new training tools to help better identify and report human trafficking and rescue child victims.
The U.S. Attorney’s Office partnered with the West Virginia State Police and the West Virginia Center for Children’s Justice to develop training videos specifically for teachers and child protective services workers. The training focuses on the risk factors and vulnerabilities of human trafficking, identifies red flags for human trafficking, and provides ways to respond to suspected human trafficking.
“One thing has really stood out to me when I’ve talked to the victims in the cases we’ve prosecuted: they all say, ‘I wish somebody had realized this sooner,’” Thompson said. “That person who realizes something sooner could be a teacher, it could be a CPS worker, it could be a Little League coach. It could be someone in the community who recognizes it and makes the report.”
Thompson cited grim national statistics that have helped prompt this approach. More than 80 percent of trafficking victims under the age of 10 are trafficked by a family member. More than half of minor victims of human trafficking attend school while being trafficked. Two-thirds of human trafficking victims have been involved in the juvenile justice or foster care system.
“The overall goal is to call attention to human trafficking and share ways we can address it in West Virginia,” Thompson said. “This training will help these professionals as well as anyone in the community recognize human trafficking and know what to do when they recognize it. Some of this, they already know. Some of this is common sense. But if we can save one child from this, if we can get one victim out, it’s worth it and I hope we do a lot more than that.”
Thompson thanked the additional partners supporting this training initiative, who include the West Virginia Board of Education, the West Virginia Department of Education, the West Virginia Department of Health and Human Resources, the Federal Bureau of Investigation (FBI), the U.S. Department of Homeland Security-Homeland Security Investigations (HSI), and the West Virginia Fusion Center.
The videos are available through the West Virginia Center for Children’s Justice and its Handle With Care program (http://www.handlewithcarewv.org).
- Training video for schools: https://vimeo.com/845303381
- Training video for CPS: https://vimeo.com/845301913
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.
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U.S. Attorney Brandon B. Brown Announces the Indictment of 24 Individuals Associated with Shreveport Street Gang on Charges Related to CARES Act Fraud SchemeRead the Press Release
SHREVEPORT, La. - United States Attorney Brandon B. Brown, along with Supervisory Senior Resident Agent in Charge Lynn Higgins of the Federal Bureau of Investigation, Special Agent in Charge Gary Smith of the Department of Treasury Inspector General for Tax Administration, and Acting United States Marshal Chris Felix held a press conference today to announce the indictment of 24 defendants on fraud charges related to the CARES Act. The defendants in this indictment are all members or associates of a Shreveport street gang that refer to themselves as Step or Die or SOD.
In March 2020 Congress enacted the Coronavirus Aid, Relief and Economic Security (CARES) Act which was designed to provide emergency financial assistance to the millions of Americans who were suffering the economic effects caused by the COVID-19 pandemic. As part of the CARES Act, the Small Business Administration (SBA) provided Economic Injury Disaster Loans (EIDL), which were low-interest financing to small businesses, renters and homeowners in regions affected by declared disasters. The CARES Act also provided authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through a program referred to as the Paycheck Protection Program (“PPP”).
Defendant Name
Charges
Loan Amount and Type
Sirdell McCullough
- Conspiracy to Commit Wire Fraud
- Wire Fraud
$20,832 / PPP
Roderguiz Henry
- Conspiracy to Commit Wire Fraud
- Wire Fraud
$20,260 / PPP
Johntrell Crutchfield
- Conspiracy to Commit Wire Fraud
- Wire Fraud
$20,832 / PPP
Deanthony Johnson
- Conspiracy to Commit Wire Fraud
- Wire Fraud
$20,575 / PPP
$8,000 / EIDL
Deaaundrakous Hagger
- Conspiracy to Commit Wire Fraud
- Wire Fraud
$20,833 / PPP
$20,833 / PPP
Nico Stewart
- Conspiracy to Commit Wire Fraud
- Wire Fraud
$4,000 / EIDL
$1,000 / EIDL
Timothy Vasher
- Conspiracy to Commit Wire Fraud
- Wire Fraud
$20,832 / PPP
Destane Glass
- Conspiracy to Commit Wire Fraud
- Wire Fraud
$20,832 / PPP
Xavien Beasley
- Conspiracy to Commit Wire Fraud
- Wire Fraud
$10,000 / EIDL
Quinterrius Brown
- Conspiracy to Commit Wire Fraud
$30,800 / EIDL
Not funded
Toronco Loston
- Conspiracy to Commit Wire Fraud
$20,832 / PPP
Not funded
$201,100 / EIDL
Not funded
Dewonnie Brown
- Conspiracy to Commit Wire Fraud
- Wire Fraud
$20,832 / PPP
$20,800 / PPP
$20,833 / PPP
$20,833 / PPP
Joshua Dominique
- Conspiracy to Commit Wire Fraud
- Wire Fraud
$20,832 / PPP
Kadarius Jenkins
- Conspiracy to Commit Wire Fraud
$20,832 / PPP
Jasmine Glass
- Conspiracy to Commit Wire Fraud
- Wire Fraud
$8,332 / PPP
Tramaine Taylor
- Conspiracy to Commit Wire Fraud
- Wire Fraud
$20,832 / PPP
Antoria Johnson
- Conspiracy to Commit Wire Fraud
- Wire Fraud
$20,458 / PPP
$20,458 / PPP
Joketa Baulkman
- Conspiracy to Commit Wire Fraud
- Wire Fraud
$19,005 / PPP
$19,005 / PPP
Tyneal Johnson
- Conspiracy to Commit Wire Fraud
- Wire Fraud
$20,833 / PPP
$20,800 / PPP
Cierra Fleming
- Conspiracy to Commit Wire Fraud
$20,207 / PPP
Tramarciea Ruffins
- Conspiracy to Commit Wire Fraud
- Wire Fraud
$20,415 / PPP
Olivia Thomas
- Conspiracy to Commit Wire Fraud
- Wire Fraud
$20,832 / PPP
Samarrian Kingston
- Conspiracy to Commit Wire Fraud
- Wire Fraud
$20,272 / PPP
Lakeah Gipson
- Conspiracy to Commit Wire Fraud
- Wire Fraud
$20,058 / PPP
“This is why the United States Attorney’s Office is here,” said U.S. Attorney Brandon B. Brown. “This is what we do and is why we become federal prosecutors and investigators with the Department of Justice. Prosecuting violent street gangs with white collar statutes is rare, but we use all the tools we have and try to hold those accountable that break the law and terrorize our communities with acts of violence. We hope to continue to collaborate with our state partners to do our part to eradicate violence while simultaneously focusing on one of the priorities of the department, which is CARES Act fraud.”
“The FBI works with its partners to disrupt and dismantle criminal enterprises like this one,” said Douglas A. Williams, Jr., Special Agent in Charge of FBI New Orleans. “Individuals or groups who seek to steal from programs meant to aid Americans in their time of need, will be investigated and prosecuted accordingly.”
“This indictment demonstrates the Treasury Inspector General for Tax Administration’s commitment to investigate and bring to justice those that victimize the American taxpayer,” stated Inspector General J. Russell George. “Abusing a Federal program designed to assist Americans in need, by fraudulently applying for loans, has and will continue to be aggressively investigated. I want to thank our law enforcement partners and the United States Attorney’s office for their commitment to this goal.”
Defendant Roderguiz Henry is a fugitive. If you have information concerning his whereabouts, please contact the U.S. Marshal’s Service at 318-934-4300.
An indictment is merely an accusation and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
If convicted, the defendants face a sentence of up to 20 years in prison, 1 to 3 years of supervised release, and a fine of up to $250,000.
The case is being investigated by the Federal Bureau of Investigation, Department of Treasury-Inspector General for Tax Administration, and United States Marshal’s Service and prosecuted by Assistant U.S. Attorney J. Aaron Crawford.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department of Justice’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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Three Appointed to Serve as Assistant United States Attorneys to Address Violent Crime, Complex White Collar Enforcement, and Other Critical CasesRead the Press Release
PROVIDENCE – United States Attorney Zachary A. Cunha today announced the appointment and swearing-in of three new Assistant United States Attorneys for the District of Rhode Island: Kevin M. Bolan, Julianne L. Klein, and Peter I. Roklan. Mr. Bolan will serve in the Office’s Civil Division, focusing on affirmative civil enforcement, while Ms. Klein and Mr. Roklan have been assigned to the Criminal Division.
Prior to his appointment, Kevin M. Bolan was a partner with the law firm of White & Case, LLP, where he both handled and managed civil and criminal trials and investigations as part of the firm’s white collar practice group. Earlier in his career, Mr. Bolan was an associate, and later partner, with the firm of McDermott Will & Emery in both Boston, Massachusetts and Washington, D.C. He is a graduate of Harvard College and the Georgetown University Law Center.
Julianne Landsvik Klein joins the office from the Boston office of Cooley, LLP, where she has served as an Associate for the past eight years. In that role, she has handled numerous DOJ and SEC investigations, worked on complex commercial matters, and handled significant pro bono litigation. Prior to joining Cooley, Ms. Klein worked in the Chicago offices of Steptoe & Johnson, LLP, Dinsmore & Schol, LLP, and for the Staff Attorneys Office of the United States Court of Appeals for the Seventh Circuit. She is a graduate of Boston College and the University of Michigan Law School.
Rhode Island native Peter I. Roklan joins the Office following a distinguished sixteen-year tenure with the Rhode Island Department of Attorney General, where he prosecuted a wide variety of criminal cases on behalf of the State of Rhode Island, including matters involving public corruption, firearms, narcotics, and organized crime. Mr. Roklan previously served as a Special Assistant United States Attorney, working on federal cases with prosecutors in this Office. He is a graduate of the University of Massachusetts at Amherst, and the Roger Williams University School of Law.
“I am tremendously excited that these three exceptional advocates have joined the ranks of the U.S. Attorney’s Office for the District of Rhode Island,” said U.S. Attorney Cunha. “Their backgrounds, education, and experience make them ideally suited to carry on and enhance our Office’s critical work to pursue justice and enhance public safety on behalf of all of our Ocean State communities.”
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Theft of a Firearm from Main Street Pawn in Lincoln Leads to 2+ Year Prison Sentence for Bangor ManRead the Press Release
BANGOR, Maine: A Bangor man was sentenced in federal court today for theft of a firearm from a licensed firearms dealer.
U.S. District Judge Lance E. Walker sentenced Jonathan Birtz, 40, to 27 months in prison followed by three years of supervised release.
According to court records, in July 2021, Birtz stole a .380 caliber pistol from Main Street Pawn in Lincoln. Security footage showed Birtz reaching over the counter to take the pistol and then concealing it in a folded blanket he was carrying.
The Lincoln Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case.
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Texas Man Pleads Guilty to Violating the Federal Controlled Substances ActRead the Press Release
NEW ORLEANS, LOUISIANA – LEONEL GONZALEZ, age 40, a resident of Houston, Texas, pled guilty on July 12, 2023 to a one-count indictment charging him with conspiracy to distribute and possess with intent to distribute five hundred (500) grams or more of a a mixture and substance containing a detectable amount of methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1), (b)(1)(A), and 846, announced U.S. Attorney Duane A. Evans.
According to court documents, on five occasions between May 25, 2020, and July 2, 2020, GONZALEZ distributed kilogram quantities of methamphetamine to a methamphetamine dealer who then redistributed the drugs in the Eastern District of Louisiana.
For the conspiracy count, GONZALEZ faces a mandatory minimum term of imprisonment of ten years and maximum of life imprisonment, a fine of up to $10,000,000.00, a term of supervised release of at least 5 years, and a mandatory special assessment fee of $100.00.
This case was investigated by the federal Drug Enforcement Administration. The prosecution was handled by Assistant United States Attorney André Jones of the Narcotics Unit.
St. Paul Felon Pleads Guilty to Illegal Possession of FirearmRead the Press Release
MINNEAPOLIS – A St. Paul man has pleaded guilty to illegally possessing a firearm as a felon, announced U.S. Attorney Andrew M. Luger.
According to court documents, on March 7, 2023, officers with the St. Paul Police Department were conducting surveillance at an apartment looking for De’Voncea Lashoun Griffo, 24, a suspect in an ongoing homicide investigation. Officers observed Griffo leave his apartment building wearing a cross-body bag across his chest and get into the driver’s seat of a Chevrolet Equinox. After Griffo pulled into a thrift store parking lot, officers activated emergency lights and conducted a felony stop. Griffo removed his cross-body bag and set it behind the center console of the car, and was placed under arrest. Officers later obtained a warrant to search Griffo’s vehicle and recovered the cross-body bag, which contained a .45 caliber Glock pistol with an extended magazine containing 23 rounds of ammunition.
Because Griffo has a prior felony conviction, he is prohibited under federal law from possessing firearms or ammunition at any time.
Griffo pleaded guilty earlier today in U.S. District Court before Senior Judge Michael J. Davis to one count of possession of a firearm as a felon. A sentencing hearing will be scheduled at a later time.
This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the St. Paul Police Department.
Assistant U.S. Attorney Hillary A. Taylor is prosecuting the case.
Southern California Man Charged with Diverting $4.8 Million in San Francisco-Based Investment Fraud SchemeRead the Press Release
SAN FRANCISCO – A federal grand jury in San Francisco indicted Joon Woo Kim with fraud in connection with two related fraud schemes—the first, an alleged scheme to mislead investors to contribute to a fund he formed in San Francisco, and the second, a scheme to obtain a multi-million dollar business loans and line of credit by lying to a bank—announced United States Attorney Ismail J. Ramsey and Federal Bureau of Investigation Special Agent in Charge Robert K. Tripp. Kim was arrested earlier today in New Haven, Conn., and appeared in U.S. District Court for the District of Connecticut to face the charges.
According to the indictment, filed June 27, 2023, and unsealed today, Kim, 57, of Montebello, Calif., allegedly engaged in the first fraud scheme beginning June 2015 through at least March 19, 2022. Kim created an investment fund called the M5 Doctors Fund and allegedly induced investors to contribute to the fund by making false statements and omissions about the kinds of investments Kim would make while managing the fund’s assets. For example, Kim allegedly advertised that he would invest assets of the M5 Doctors Fund in securities of Tesla, Inc. and electric vehicle companies. Nevertheless, rather than invest the funds as he promised, Kim allegedly transferred nearly all M5 Doctors Fund assets, including funds from the liquidation of investments and the return on those investments, to CKR Enterprise, Inc., a wholesale food distribution company owned and operated by Kim and his wife.
As General Partner of the M5 Doctors Fund and the person who held himself out as manager and person responsible for the fund, Kim had a duty to disclose all material business, transactions, and investments to the fund’s investors and Limited Partners. Nevertheless, according to the indictment, from 2015 through July 2018, Kim transferred approximately $4.8 million in M5 Doctors Fund assets to CKR without informing the fund’s investors. Additionally, the indictment alleges Kim continued to tell investors he was investing in Tesla stock and the stock of public electric vehicle companies; failed to disclose to M5 Doctors Fund investors that he had transferred essentially all of the fund’s assets to his business, CKR; and took actions to mislead fund investors into believing that the M5 Doctors fund was solvent and engaged in investment activities.
In the second fraud scheme, Kim defrauded Hanmi Bank by applying for two loans for CKR, a $1,300,000 line of credit and a $3,200,000 business loan, that contained materially false and fraudulent representations and promises.
In sum, the indictment charges Kim with eight counts of wire fraud, in violation of 18 U.S.C. § 1343; two counts of bank fraud, in violation of 18 U.S.C. § 1344; and one count of making a false statement to a bank, in violation of 18 U.S.C. § 1014.
Kim’s initial San Francisco federal court appearance is scheduled for July 28, 2023.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, Kim faces a maximum sentence of 20 years in prison, and a fine of $250,000, plus restitution, if appropriate, for each violation of 18 U.S.C. § 1343; 30 years in prison, and a fine of $1,000,000, plus restitution, if appropriate, for each violation of 18 U.S.C. §§ 1344 and 1014. The court also may order an additional term of supervised release to begin after a prison term as part of any sentence. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
The case is being prosecuted by the Corporate and Securities Fraud Section of the U.S. Attorney’s Office. Assistant U.S. Attorney Christiaan Highsmith is prosecuting the case, with the assistance of Elizabeth Kim. The prosecution is the result of an investigation by the FBI.
Six Pennsylvania Residents and One Resident of North Carolina Indicted on Wire Fraud Conspiracy, Computer Fraud, ID Theft and Possession of Child Sex Abuse Material ChargesRead the Press Release
ERIE, Pa. - Six residents of Pennsylvania and one resident of North Carolina have been indicted by a federal grand jury in Erie on charges of conspiracy to commit wire fraud, fraud in connection with unlawful computer access, aggravated identity theft, and receipt and possession of child sexual abuse material, United States Attorney Eric G. Olshan announced today.
The sixteen-count Indictment named the following:
Richard Alan Martz, Jr., 33, Meadville, Pennsylvania
Dylan Michael Miller, 30, West Mifflin, Pennsylvania
Christopher Clampitt, 33, Clemmons, North Carolina
Edward Grabb, 31, Jeanette, Pennsylvania
Michael Yackovich, 27, West Newton, Pennsylvania
Luke Robert Swinehart, 22, Lock Haven, Pennsylvania
Karlin Terrell Jones, 26, Beaver Falls, PennsylvaniaAccording to the Indictment presented to the court, the seven co-defendants conspired to hack into Snapchat accounts for the purpose of removing explicit images and videos depicting the victim account holders. After obtaining the explicit material, the co-defendants would then share the images and videos with each other and others online unbeknownst to the victim account holders.
“As alleged, the defendants used deception and hacking techniques to unlawfully access social media accounts so that they could steal, hoard, and trade explicit and otherwise private content of hundreds of unsuspecting victims,” U.S. Attorney Olshan said. “This Office and our law enforcement partners will reach far and wide to identify and prosecute those who victimize our communities via the internet, especially when they seek to victimize our most vulnerable population—our children.”
“The seven people charged today exploited their victims and engaged in a predatory behavior that will not be tolerated,” said FBI Pittsburgh Special Agent in Charge Mike Nordwall. “Hacking into social media accounts, stealing intimate pictures of unsuspecting victims and then selling and trading them in online forums is nothing short of reprehensible. These victims were re-victimized multiple times as their personal pictures were recirculated. We believe there is an extensive network of victims who still haven’t been identified.”
The law provides for a maximum total sentence of 69 years in prison, a fine of $1,750,000, or both for Martz; 34 years in prison, a fine of $1,000,000, or both for Miller; 22 years in prison, a fine of $500,000, or both for Clampitt; 22 years in prison, a fine of $500,000, or both for Grabb; 29 years in prison, a fine of $1,000,000, or both for Yackovich; 20 years in prison, a fine of $250,000, or both for Swinehart and Jones. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation leading to the Indictment in this case.
If you believe you are a victim in this case and would like to opt-in to receive case notifications or if you have any questions about your rights, please contact the Victim Witness Coordinator at usapaw.victimwitness@usdoj.gov.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Rosie Hidalgo Sworn in as Director for the Office on Violence Against WomenRead the Press Release
The Justice Department announced that Rosie Hidalgo was sworn in today as the Director of the Office on Violence Against Women (OVW). As director, she will spearhead the Department’s principal efforts in confronting gender-based crimes. OVW provides federal leadership in developing the national capacity to reduce violence against women and administer justice for and strengthen services to survivors of domestic violence, dating violence, sexual assault, and stalking, and oversees more than $700 million annually for grant programs authorized under the Violence Against Women Act (VAWA).
The Senate confirmed Hidalgo on July 11 in a bipartisan vote, making her the first Senate-confirmed director to lead OVW since 2012. Hidalgo’s career, spanning over 25 years, has been dedicated to eradicating gender-based violence. Her work as a public interest attorney, national policy advocate, and more recently as a White House advisor, culminates in her new role leading OVW. Before her current appointment, Hidalgo served as a special assistant to President Biden and senior advisor on gender-based violence at the White House Gender Policy Council. She also previously held a position at OVW as Deputy Director of Policy from 2014 to 2017.
“I am proud to swear in Rosie Hidalgo as the first Senate-confirmed Director of the Justice Department’s Office on Violence Against Women in 11 years,” said Attorney General Merrick B. Garland. “This is a historic affirmation of the Department's commitment to reducing gender-based violence, supporting survivors, and holding perpetrators accountable. Rosie has both the experience and the dedication to lead the Office’s essential work of protecting women, girls, and all those affected by domestic violence, dating violence, sexual assault, and stalking. I am confident that her return to the Department will further that crucial mission.”
“The Office on Violence Against Women is vital to implementing the Violence Against Women Act and providing leadership in combating domestic violence, sexual assault, and stalking,” said Deputy Attorney General Lisa O. Monaco. “Rosie’s leadership of OVW will strengthen those efforts and build on the Department’s commitment to meeting the needs of survivors of sexual violence.”
“Rosie Hidalgo has been a champion for survivors for years. Her experience and passion make her ideally suited to lead OVW, which has been steadfast in its mission to deploy the resources and tools communities need to address the needs of survivors,” said Associate Attorney General Vanita Gupta. “Rosie's track record of working diligently to support survivors of gender-based violence, and in particular, survivors from underserved and historically marginalized communities, makes her an ideal leader for OVW.”
“I am honored to have this opportunity to join colleagues at the Office on Violence Against Women and the Department of Justice to help advance our nation’s commitment to preventing and addressing domestic violence, dating violence, sexual assault, stalking, and other forms of gender-based violence,” said Director Rosie Hidalgo. “The renewal and strengthening of the Violence Against Women Act last year, along with increases in VAWA funding, enable us to enhance access to safety, justice, and holistic services for survivors, and support efforts to strengthen and broaden the coordinated community response.”
Hidalgo is also a former senior director of public policy for Casa de Esperanza: National Latin@ Network for Healthy Families and Communities, a national resource center with a focus on providing training, research, and policy advocacy to prevent and end domestic violence and sexual assault. Her public service work includes a detail to the Office of the Vice President during the Obama administration, working with the White House Advisor on Violence Against Women. She also served on the Biden Foundation’s Advisory Council for Ending Violence Against Women and on the American Bar Association’s Commission on Domestic and Sexual Violence.
She is a graduate of Georgetown University and the New York University School of Law.
Property company owner sentenced to prison for rental assistance fraudRead the Press Release
DAYTON, Ohio – A Tipp City man was sentenced in U.S. District Court today to 18 months in prison for defrauding a local non-profit organization. He was also ordered to pay $94,942 in restitution.
Antoine Draines, 43, defrauded Miami Valley Community Action Partnership (MVCAP) of rental assistance funds. MVCAP received federal funding as part of the CARES Act.
According to court documents, Draines controlled and operated Freedom for Living Property Management, LLC in Tipp City. The company owned and served as landlord of numerous rental properties in Dayton. According to Draines, he was, at one point, the second-largest individual owner of Section 8 housing units in Greater Dayton.
From at least June 2020 until December 2020, Draines lied to MVCAP so that he could improperly collect emergency rental assistance money for certain Freedom for Living properties. Draines knowingly sent false landlord statement forms concealing the critical fact that certain tenants were already having a substantial portion of their rent paid through federally funded housing vouchers.
Draines pleaded guilty to wire fraud in March 2023.
In addition, Draines fraudulently applied for and received Pandemic Unemployment Assistance benefits from the Ohio Department of Job and Family Services, resulting in Draines wrongfully collecting approximately $30,000.
“Through a cynical, opportunistic fraud scheme, Draines, sought to steal more than $150,000 from MVCAP by seeking emergency assistance that was not actually needed, or not actually used, to cover the rental obligations of existing tenants,” said Kenneth L. Parker, United States Attorney for the Southern District of Ohio. “The specific circumstances of Draines’ COVID-related fraud only make it worse. Draines targeted programs intended to aid those struggling to make ends meet in the face of the pandemic, converting a global health crisis into a chance at a quick buck.”
"Mr. Draines used his position during an unprecedented national pandemic to steal critical taxpayer money intended to help families," said Special Agent-in-Charge Shawn Rice. “HUD OIG remains steadfast in its commitment to working with Federal prosecutors and law enforcement partners to aggressively pursue those who engage in activities that threaten the integrity of HUD programs.”
“Antoine Draines defrauded the Ohio Department of Job and Family Services (ODJFS) by filing false unemployment insurance (UI) claims. Draines stole benefits intended to assist those who became unemployed due to the COVID-19 pandemic. We will continue to work with our law enforcement partners and ODJFS to protect the integrity of the UI system from those who exploit these benefit programs,” said Irene Lindow, Special Agent in Charge, Great Lakes Region, U.S. Department of Labor, Office of Inspector General.
Joining Parker in announcing the sentence imposed by Senior U.S. District Court Judge Thomas M. Rose were Shawn Rice, Special Agent in Charge, U.S. Department of Housing and Urban Development, Office of Inspector General, and Irene Lindow, Special Agent in Charge, Great Lakes Region, U.S. Department of Labor, Office of Inspector General. Assistant United States Attorney Rob Painter and Deputy Criminal Chief Brent G. Tabacchi are representing the United States in this case.
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Poplar Bluff Felon Caught with Two Guns Sentenced to PrisonRead the Press Release
CAPE GIRARDEAU – U.S. District Judge Stephen N. Limbaugh Jr. on Tuesday sentenced a convicted felon from Poplar Bluff, Missouri who was caught with two guns to 40 months in prison.
Judge Limbaugh ordered the prison sentence for Tina Marie Litvinchyk, 31, to run consecutive to a 10-year prison sentence she is serving for two drug charges in Butler County Circuit Court.
Litvinchyk pleaded guilty in March in U.S. District Court to one count of being a felon in possession of a firearm. She admitted that on June 8, 2022, Southeast Missouri Drug Task Force officers found two .380-caliber pistols in a locked safe, as well as two bags of marijuana and a digital scale. One of the pistols had been stolen less than three weeks earlier in Carter County, Missouri.
Litvinchyk has three prior felony drug convictions and is barred from possession of a firearm. She was on parole at the time of her arrest.
The case was investigated by the Southeast Missouri Drug Task Force, the Missouri State Highway Patrol, the Butler County Sheriff’s Department and the Poplar Bluff Police Department. Assistant U.S. Attorney Timothy Willis prosecuted the case.
Pennsylvania Man Gets Two Years in Federal Prison for Participation in Nationwide Fraud SchemeRead the Press Release
WILMINGTON, Del. – A Philadelphia, Pennsylvania man was sentenced yesterday to two years in federal prison for his participation in a nationwide scheme to fraudulently obtain over $700,000 in gift cards and merchandise from a nationwide home improvement store. The Honorable Richard G. Andrews pronounced the sentence.
According to court documents, Mamadou Bah, 39, conducted over a thousand fraudulent transactions at home improvement stores throughout the country between May 2018 and June 2020, using the fake name “Richard Traynham.” Bah would pay for gift cards and merchandise at home improvement stores using a barcode on his phone that was linked to fraudulently obtained credit cards. All told, Bah caused losses in excess of $733,000 across stores in 21 states. For this conduct, Bah pled guilty to aggravated identity theft, which carries a two-year mandatory sentence.
U.S. Attorney David C. Weiss made the announcement and commented on the sentence. “Mr. Bah perpetrated a lucrative fraud for years through identity theft. By working with our law enforcement partners, my office was able to stop Mr. Bah from further fraud and secure a federal prison sentence. Those who think they can get away with stealing another person’s identity information to defraud a retailer should learn from Mr. Bah. If convicted, a mandatory prison sentence awaits you.”
“The FBI remains committed to investigating these types of sophisticated fraud schemes and to seeking justice for those affected by them,” said Special Agent in Charge Thomas J. Sobocinski of the FBI Baltimore Field Office. “If you have fallen victim to a scam, please report it to the FBI’s Internet Crime Complaint Center at www.ic3.gov or 1-800-CALL FBI. This information will help investigate these criminals.”
Assistant U.S. Attorney Alexander P. Ibrahim prosecuted the case, which was investigated by the Federal Bureau of Investigation with assistance from the Millsboro Police Department.
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. 1:21-cr-065.
Okmulgee Resident Sentenced for Sexual Abuse, Federal Firearms and Immigration OffensesRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Edgar Rene Garcia-Limon, age 36, was sentenced to life in prison for Aggravated Sexual Abuse in Indian Country and Abusive Sexual Contact in Indian Country, 120 months in prison for Felon in Possession of Firearm, and 24 months in prison for Illegal Reentry of Previously Removed Alien. The sentences run concurrently.
The charges arose from investigations by the Tulsa Police Department, the Muscogee (Creek) Nation Lighthorse Police, Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Federal Bureau of Investigation.
On May 18, 2022, a federal jury returned guilty verdicts on all counts after a two-day trial. During the trial, the United States presented evidence that the defendant sexually abused a female child under the age of eleven over a span of seven years. The United States also presented evidence that the defendant, a felon, was in possession of two firearms. Finally, the United States presented evidence that the defendant illegally returned to the United States from Mexico after having been previously removed from the United States in July 2019. The crimes occurred in Okmulgee County, within the boundaries of the Muscogee (Creek) Nation Reservation and within the Eastern District of Oklahoma.
“The abuse suffered at the hands of the defendant will have long-lasting effects on his victim, and there is no question the sentencing is just,” said FBI Oklahoma City Special Agent in Charge Edward J. Gray. “The FBI and our law enforcement partners will continue to aggressively pursue the most serious crimes in Indian Country and create safer communities for all Oklahomans.”
“This defendant’s predatory behavior shattered the innocence of an unsuspecting child,” said HSI Dallas Special Agent in Charge Lester R. Hayes, Jr. “No amount of prison time can restore what was lost by the victim. Thankfully, due to the collaborative efforts of our law enforcement partners, this defendant will be spending the remainder of his life behind bars.”
“Heinous isn’t a strong enough adjective to describe the crimes that were perpetrated by Mr. Limon-Garcia. He is every law-abiding citizen’s worst nightmare. I am thankful that ATF was able to do a small part to keep this diabolical man behind iron bars for the rest of his life” stated ATF Dallas Field Division Special Agent in Charge Jeffrey C. Boshek II.
“The defendant received the punishment he deserved,” said United States Attorney Christopher J. Wilson. “After hearing the evidence gathered during a lengthy investigation, the jury rendered its verdicts, and now the judge has handed down appropriate punishment. For years, the defendant terrorized and sexually abused an innocent child, and now he will spend the rest of his life behind bars.”
The Honorable Ronald A. White, Chief U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, presided over the sentencing hearing in Muskogee, Oklahoma. Garcia-Limon will remain in custody of the U.S. Marshal pending transportation to a designated United States Bureau of Prisons facility to serve a non-paroleable sentence of incarceration.
Assistant United States Attorney Benjamin D. Traster represented the United States.
New York Man Sentenced to 10 Years’ Imprisonment for Cocaine TraffickingRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Esteban Latorre-Cacho, age 38, of Lockport, New York, was sentenced on July 13, 2023, by U.S. District Court Judge Christopher C. Conner, to 10 years’ imprisonment on the charge of possession with intent to distribute more than five kilograms of cocaine.
According to United States Attorney Gerard M. Karam, Latorre-Cacho previously pleaded guilty and admitted to possessing 67 kilograms of cocaine for further distribution. The charge stems from an incident on April 30, 2021, in which members of the Pennsylvania State Police made a traffic stop of a vehicle in Lehigh County. Latorre-Cacho was the sole occupant of the vehicle. A subsequent search of the vehicle resulted in the seizure of 67 kilograms of cocaine, with a street-value of approximately two million dollars, found hidden inside boxes within the vehicle. Further investigation showed that Latorre-Cacho had picked up the boxes containing the cocaine at a location within the Middle District of Pennsylvania.
The investigation was conducted by the Pennsylvania State Police and the Drug Enforcement Administration. Assistant United States Attorney Robert J. O’Hara prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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New Hampshire Woman Charged in Tyngsborough Daycare InvestigationRead the Press Release
BOSTON – A New Hampshire woman and the former intimate partner of Tyngsborough, Mass. daycare worker, Lindsay Groves, has been charged with child exploitation.
Stacie Marie Laughton, 39, of Nashua, N.H., was charged with one count of sexual exploitation of children – and aiding and abetting. Laughton will appear in federal court in Boston at a later date.
According to the charging documents, a preliminary forensic review of Groves’ cellphone allegedly revealed over 10,000 text messages between Laughton and Groves that included discussion about, and transfer of, explicit photographs that Groves had taken of children while employed at Creative Minds daycare – including at least four sexually explicit images of children who appear to be approximately three to five years old, as well as explicit descriptions of sex with each other and others, including children. The investigation remains ongoing.
Groves was arrested and charged on June 22, 2023 with one count of sexual exploitation of children and one count of distribution of child pornography. Following a detention hearing on July 13, 2023, the Court took the federal government’s motion for detention under advisement. Groves remains in state custody in New Hampshire.
Members of the public who have questions, concerns or information regarding this case should call 617-748-3274. Case information, including links to charging documents and victim resources, can be found here: https://www.justice.gov/usao-ma/victim-and-witness-assistance-program/united-states-v-lindsay-groves
The charge of sexual exploitation of children provides for a sentence of at least 15 years and up to 30 years in prison, at least five years and up to a lifetime of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy; Michael J. Krol, Acting Special Agent in Charge of Homeland Security Investigations in New England; and Nashua (N.H.) Police Chief Kevin Rourke made the announcement today. Valuable assistance was provided by the U.S. Attorney’s Office for the District of New Hampshire; Middlesex County District Attorney’s Office; and the Hudson, N.H. Police Department. Assistant U.S. Attorneys Anne Paruti and Jessica L. Soto of the Major Crimes Unit 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 the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Muskegon Man Sentenced to 300 Months for Armed Trafficking in Fentanyl, Heroin, Cocaine, and MethamphetamineRead the Press Release
GRAND RAPIDS, MICHIGAN — U.S. Attorney for the Western District of Michigan Mark Totten announced that Saul Douglas Briggs, 33, of Muskegon, will serve 240 months in prison for possessing fentanyl, heroin, cocaine, and methamphetamine with the intent to distribute them. On Friday, U.S. District Judge Paul L. Maloney sentenced Briggs to serve an additional 60-month prison term for possessing firearms in furtherance of his drug trafficking activities. Briggs was also ordered to forfeit more than $225,000 in cash, multiple vehicles, and jewelry that he purchased with drug proceeds. Upon release from prison, Briggs will be on supervised release for a period of 10 years.
“The egregiousness of Mr. Briggs’ crimes cannot be overstated. He possessed enormous quantities of fentanyl to sell in our community and beyond,” said U.S. Attorney Totten. “Fentanyl is deadly, and it is made even more fatal when combined with other drugs and loaded firearms. My office is committed to disrupting drug trafficking rings and bringing the people who peddle this poison to justice. Mr. Briggs’ sentence is a vital step in ensuring the continued safety of the communities we serve.”
The facts presented to the court during the case were that, beginning in at least March 2002, Briggs and his associates began using a house on Letart Avenue in Muskegon to store drugs, drug trafficking materials, and guns to protect their drug dealing business. In March 2022, Briggs and one of his associates sold a total of 1.5 kilograms of fentanyl to a Missouri-based drug trafficker. At least some of that fentanyl appeared to investigators to have come from the Letart residence. Later, during a search warrant executed at the Letart residence in June 2022, investigators found approximately 5 kilograms of fentanyl and fentanyl analogues, nearly a kilogram of heroin, and smaller amounts of cocaine, methamphetamine, and morphine. Investigators also found all of the hallmarks of drug trafficking, including digital scales, baggies, presses used to package drugs for sale, cutting agents, and a money counter. At the time, Briggs also possessed seven firearms, four of which were stolen. The guns included a loaded pistol he stored under the driver’s seat of his truck and several assault-style guns and a handgun with an extended magazine that had been staged throughout the Letart residence.
The amount of fentanyl in the case could have killed millions of people across the State of Michigan and in the other locations where Briggs distributed. In sentencing Briggs, Judge Maloney noted that this was “a major fentanyl distribution crime” and that Briggs possessed seven firearms of which four were stolen. Judge Maloney also noted that Briggs committed these crimes after having previously served a sentence in federal prison for cocaine trafficking.
“Briggs convictions come after a lengthy investigation involving both state and federal law enforcement,” said Detective Lieutenant Andrew Ambrose, Commander of the West Michigan Enforcement Team (WEMET), a division of the Michigan State Police. “Cooperation between federal, state, and local agencies allow for entities to work larger cases. The seizure of fentanyl by WEMET detectives and DEA agents undoubtedly saved lives.”
The following photographs shows some of the evidence seized as part of the investigation:
This case was part of Operation Interstate Zeus, an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation that began in 2019 and was led by the Drug Enforcement Administration (DEA) and members of Michigan State Police’s West Michigan Enforcement Teams (WEMET). 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. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
This case was prosecuted by Assistant United States Attorney Stephanie M. Carowan.
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Missouri Woman Sentenced to 15 Years in Prison for the Sexual Exploitation of ChildrenRead the Press Release
WASHINGTON – Brittany Bailey, 34, of Columbia, Missouri, was sentenced today to 15 years in prison and 10 years of supervised release for the sexual exploitation of children, announced U.S. Attorney Matthew M. Graves and FBI Acting Special Agent in Charge Sarah Linden of the Washington Field Office Criminal and Cyber Division.
Bailey pleaded guilty, on August 25, 2021, to advertising child pornography. In addition to the prison term and supervised release, U.S. District Court Judge John D. Bates ordered Bailey to register as a sex offender for 25 years, and to pay restitution in the amount of $25,000 to the minor victims she harmed.
According to court documents, in 2019, Bailey was involved with an online Internet group called “Taboo Parents.” She engaged with a person she believed to be another member of the group, but who was actually an undercover law enforcement officer. Believing that she was chatting with a pedophile, Bailey sent photographs of herself telling him she wanted him to sexually abuse the child shown in the images that she sent. Bailey went on to create other online chat group dedicated to exchanging child sexual abuse material, and she invited users to and banned users from the group. She setup rules for the members of the groups, and she told members about her sexual preferences and encouraged them to share child sex abuse material with the group. After making these comments, multiple users shared child pornography in the group chat. Bailey shared four different videos of child pornography in the chat. The videos all depicted young girls, some as young as toddlers. One month later, on May 1, 2019, agents executed a search warrant at Bailey’s residence in Columbia, Missouri. They recovered her electronic devices, including her cellular phone, which contained images and videos depicting the sexual abuse of children.
This case was brought as part of the Department of Justice's Project Safe Childhood initiative and investigated by the FBI's Child Exploitation Task Force, which includes members of the FBI's Washington Field Office and MPD. In February 2006, the Attorney General created Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney's Offices, 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 identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the FBI’s Washington Field Office, with assistance from the Kansas City Field Office’s Jefferson City Resident Agency. It was prosecuted, with assistance from the U.S. Attorney’s Office for the Western District of Missouri, by Assistant U.S. Attorney Caroline Burrell of the U.S. Attorney’s Office for the District of Columbia.
Michigan Insurance Salesman Sentenced to Prison for Tax and Bankruptcy CrimesRead the Press Release
A Michigan man was sentenced to 36 months in prison today following his conviction in February of filing false tax returns, making false statements to a bankruptcy court and making false statements to the Justice Department’s Tax Division.
According to court documents and evidence presented at trial, Donald Stanley LaVigne, formerly of Lake Orion, Michigan, did not report insurance commissions and other income on tax returns he filed with the Internal Revenue Service (IRS) for 2013 through 2019. In letters he sent to the IRS, LaVigne also falsely claimed that these commissions were not income to him.
When LaVigne filed for bankruptcy in 2018, he did not disclose the IRS as a creditor on the schedules attached to his bankruptcy petition even though he knew he owed the IRS five years’ worth of taxes. On one document he filed in the bankruptcy case, LaVigne also understated his income for 2016 and 2017.
After he was notified that he was the target of a federal investigation, LaVigne sent a letter to the Tax Division in which he falsely claimed that his bankruptcy attorney had reviewed his 2017 income tax return and advised him that it was “correct and complete.” In fact, his bankruptcy attorney testified at trial that he had never advised LaVigne that his 2017 income tax return was accurate.
In addition to the term of imprisonment, U.S. District Judge David M. Lawson also ordered LaVigne to serve two years of supervised release and pay restitution to the IRS in the amount of $80,732.11.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement. IRS-Criminal Investigation investigated the case. Trial Attorneys Melissa S. Siskind and Catriona M. Coppler of the Justice Department’s Tax Division prosecuted the case.
Mercer County Man Sentenced to 25 Years in Prison for Heroin Trafficking, Unlawful Possession of Firearms, and Possession of Firearm in Furtherance of Heroin TraffickingRead the Press Release
TRENTON, N.J. – A Mercer County, New Jersey, man was sentenced today to 300 months in prison for heroin trafficking and firearms charges, U.S. Attorney Philip R. Sellinger announced.
Timothy Wimbush, aka “Young Money,” 33, was convicted in October 2021 of conspiracy to distribute 100 grams or more of heroin, distribution of heroin, possession of a firearm in furtherance of his heroin distribution, and unlawful possession of firearms and ammunition by a convicted felon following a three-week trial before former Chief U.S. District Judge Freda L. Wolfson. Following Judge Wolfson’s retirement, the case was assigned to U.S. District Judge Georgette Castner, who imposed the sentence today in Trenton federal court.
According to documents filed in the case and the evidence at trial:
In 2018, defendant Wimbush and others participated in a large drug trafficking conspiracy that operated in various areas of Trenton, which sought to profit from the distribution of heroin.
On Sept. 6, 2018, law enforcement officers stopped Wimbush’s green 2002 Volkswagen Passat after observing Wimbush’s co-defendant, Taquan Williams, a previously convicted felon, enter the vehicle carrying a yellow plastic bag believed to contain contraband. The Passat was driven by and registered to Wimbush, who also was a previously convicted felon. During a subsequent search of Wimbush’s vehicle, law enforcement recovered from a secret trap compartment installed under the rear passenger’s seat 57 bricks of heroin, four semiautomatic firearms – including a .223 caliber assault rifle linked to a shooting in Trenton four days earlier – hundreds of rounds of ammunition, and the yellow plastic bag that Williams had carried into the vehicle moments earlier. Law enforcement discovered in the yellow bag two boxes of .45 caliber ammunition and three .45 caliber firearm magazines, which matched one of the semiautomatic firearms also found in the trap compartment. One of the firearms concealed in Wimbush’s secret trap compartment was used in connection with a violent and reckless shooting in the City of Trenton. On Sept. 2, 2018, four of Wimbush’s associates, including one of his co-defendants, one of his relatives, and one of co-defendant Williams’s relatives, were shot in a drive-by shooting in the area of Stuyvesant and Bryn Mawr Avenues in Trenton. Evidence also showed that a likely retaliatory shooting in the area of Lee and West State Street occurred shortly thereafter the same day. Ballistics analysis of a shell casing recovered from the site of the Lee and West State Street shooting conclusively linked the .223 caliber assault rifle Wimbush possessed in the trap compartment of his vehicle on September 6 with the Lee and West State Street shooting on September 2. Telephone communications intercepted during the court-authorized wiretap between Wimbush’s conspirators linked Wimbush and his associates to back-and-forth shootings on and after September 2 and to heroin trafficking activity in the City of Trenton.
Law enforcement identified the heroin in the trap compartment of Wimbush’s vehicle as having been supplied by Wimbush’s conspirators, including Jakir Taylor and Tacques Hall. Taylor pleaded guilty to conspiracy to distribute heroin and firearms charges and was sentenced by Judge Wolfson earlier this year. Hall pleaded guilty to conspiracy to distribute heroin and was sentenced by Judge Wolfson in 2019. Wimbush’s codefendant Taquan Williams was convicted at trial of possessing firearms or ammunition as a convicted felon and was sentenced by Judge Wolfson in 2022.
U.S. Attorney Sellinger credited special agents of the FBI, Newark Division, Trenton Resident Agency, under the direction of under the direction of Special Agent in Charge James E. Denney in Newark; special agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Newark Division, Trenton Satellite Office, under the direction of Special Agent in Charge Bryan Miller; officers of the Trenton Police Department, under the direction of Police Director Steve Wilson; officers of the Princeton Police Department, under the direction of Chief Jonathan Bucchere; officers of the Ewing Police Department, under the direction of Chief Albert Rhodes; officers of the Burlington Township Police Department, under the direction of chief John Fine; and detectives of the Burlington County Prosecutor’s Office, under the direction of Prosecutor LaChia L. Bradshaw, with the investigation leading to today’s sentencing. He also thanked officers of the New Jersey State Police, under the direction of Superintendent Col. Patrick J. Callahan; detectives of the Mercer County Prosecutor’s Office, under the direction of Prosecutor Angelo Onofri; officers of the Mercer County Sheriff’s Office, under the direction of Sheriff John A. Kemler; and members of the New Jersey State Board of Parole for their assistance in the investigation and prosecution of the case.
The government is represented by Assistant U.S. Attorney Alexander Ramey of the U.S. Attorney’s Office’s Criminal Division in Trenton.
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.
Mason City Man Sentenced to Federal Prison for Possessing a Firearm While Distributing MethamphetamineRead the Press Release
A man who possessed a firearm while distributing methamphetamine was sentenced today to over eight years in federal prison.
Michael David Dalluge, age 28, from Mason City, Iowa, received the prison term after a February 17, 2023 guilty plea to one count of possession with intent to distribute methamphetamine and possession of a firearm in furtherance of a drug trafficking crime.
At the plea hearing, Dalluge admitted that, on May 6, 2022, he was a passenger in a vehicle that was stopped by law enforcement. Both the driver and Dalluge fled the vehicle, and Dalluge was apprehended a block away. A backpack Dalluge was carrying was found to contain methamphetamine and a loaded, stolen, firearm.
Dalluge was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Dalluge was sentenced to 102 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Dalluge is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Jack Lammers and investigated by the Cerro Gordo Sheriff’s Office, Clear Lake Police Department, Mason City Police Department, Iowa Department of Narcotics Enforcement, and the North Central Iowa Drug Task Force. Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 22-CR-3021.
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Martinsburg man admits to falsifying passport to flee the United StatesRead the Press Release
MARTINSBURG, WEST VIRGINIA – A Martinsburg, West Virginia, man has admitted to illegally obtaining a passport to travel overseas, violating a court order.
Bobby Allen Stark, age 52, pled guilty today to a charge of making a false statement in application for a passport. Stark was on bond from a charge pending in Colorado and was ordered to surrender his passport. Four days following the surrender of his passport, he applied for a new one, claiming his passport was lost. Stark then used his new passport to flee to Guyana, where he was later apprehended by authorities.
Stark is facing up to 10 years in prison. He will be sentenced at a later date. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
This case was investigated by the U.S. Department of State’s Diplomatic Security Service (DSS). The U.S. Marshals Service and the Guyana Federal Police assisted.
Assistant U.S. Attorney Kyle Kane is prosecuting the case on behalf of the government.
U.S. Magistrate Judge Robert W. Trumble presided.
Man Who Robbed Armored Car in St. Louis County Sentenced to 121 Months in PrisonRead the Press Release
ST. LOUIS – U.S. District Judge Henry E. Autrey on Tuesday sentenced a man who stole a bag of cash at gunpoint from workers servicing an ATM in St. Louis County, Missouri to 121 months in prison.
Mark Anthony Diggs, now 21, robbed two employees of ATM Solutions on May 31, 2022 as they were servicing an ATM machine at a Vantage Credit Union. Diggs emerged from the back seat of a white Kia Optima, armed with a fully-automatic Anderson Manufacturing AM-15 firearm and demanded that an employee throw him a bag of cash. The robbery was captured on video.
Diggs, 21, pleaded guilty in April to one robbery charge and one count of possession and brandishing a firearm in furtherance of a crime of violence.
Diggs’ driver, Gregreonia Hampton, pleaded guilty in May to one count of aiding and abetting a robbery. She is scheduled to be sentenced August 23.
The St. Louis County Police Department, the FBI, the Missouri State Highway Patrol and the St. Louis Metropolitan Police Department investigated the case. Assistant U.S. Attorney Linda Lane is prosecuting the case.
Man Sentenced to 21 months in Prison for Committing Perjury in His Federal Trial by Lying About His Sexual DysfunctionRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, announced today that John Dompierre, 60, of Avondale, Arizona was sentenced to twenty-one months in federal prison for committing perjury in his Federal Criminal Trial.
A federal grand jury indicted Dompierre with Conspiracy and Transportation for Illegal Sexual Activity on September 10, 2020. On November 3 and 4, 2021, Dompierre testified in his own defense during a trial in Federal District Court in Santa Fe, New Mexico. Subsequently, the United States obtained Dompierre’s comprehensive medical records, the content of which unequivocally refuted Dompierre’s own testimony at trial. Dompierre pleaded guilty to Perjury on March 28, 2022.
In addition to the twenty-one-month prison sentence, Dompierre was fined $2,400 and will be on supervised release for three years following his release from the Bureau of Prisons.
The Federal Bureau of Investigation investigated this case with substantial assistance from the Bernalillo County Sheriff’s Office and the Albuquerque Police Department. Assistant United States Attorneys Letitia Carroll Simms and Thomas Outler prosecuted the case.
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Koreatown Man Convicted in Scheme to Illegally Sell FirearmsRead the Press Release
LOS ANGELES – A federal jury today convicted a Los Angeles man of participating in a scheme that illegally sold 27 guns, including a “Glock switch” that converts a semiautomatic firearm to a machinegun.
Following a five-day trial, William Nirion Peña, 40, who resides in the Koreatown neighborhood, was found guilty of conspiracy to engage in the business of dealing in firearms without a license. The evidence presented at trial showed that Peña provided approximately 10 of the firearms and a substantial amount of ammunition that were sold by a co-conspirator to an undercover agent. The firearms included two silencers without serial numbers and the Glock switch.
A second defendant in this case – Ellourth Eladio Simon 32, of the Mid-City neighborhood of Los Angeles – pleaded guilty on May 25 to one count of engaging in the business of dealing firearms without a license and one count of possessing a machine gun. Simon specifically admitted engaging in eight illegal gun transactions, several of which involved multiple firearms, including a November 10, 2021, sale for $8,400 in which Simon sold an ATF undercover agent four handguns and a “ghost gun” AR-type rifle.
From at least September 2021 until late February 2022, Peña provided Simon with information about the prices and nature of numerous firearms – frequently sending photographs of firearms that Simon could sell to Simon’s gun customers.
“Peña and Simon frequently coordinated efforts to sell [guns to the undercover agent] by communication over the phone about the price and availability of firearms and firearms components, and arranging the logistics of specific sales to customers during evening transaction in supermarket parking lots and similar locations,” according to court documents. Evidence presented at trial indicated that Peña was obtaining firearms from sources in other states, primarily Arizona.
Peña is scheduled to be sentenced by United States District Judge George H. Wu on September 18, at which time Peña will face a statutory maximum sentence of five years in federal prison.
Simon is scheduled to be sentenced on August 10. As a result of his guilty pleas, Simon faces a statutory maximum sentence of 15 years in federal prison.
The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated this matter. This case is the result of an investigation by the Los Angeles Firearms Trafficking Strike Force, which is spearheaded by the ATF and the United States Attorney’s Office.
Assistant United States Attorney Jennifer Chou of the Violent and Organized Crime Section, along with other members of that section, are prosecuting this case.
Kansas Chiropractor Pleads Guilty to Money LaunderingRead the Press Release
WICHITA, KAN. – A Kansas man pleaded guilty to money laundering in connection with a federal relief program designed to help United States business owners during the COVID-19 pandemic.
According to court documents, Timothy Dale Warren, 59, of Haysville served as owner of Titan Medical Center which offered chiropractic care, school sports physicals, and other services in Wichita. In May 2020 and April 2021, Warren submitted false documents to banks in order to fraudulently obtain two loans from the Small Business Administration (SBA) under the Paycheck Protection Program (PPP) of the CARES Act.
In August 2020, the defendant converted $35,500.00 in criminally obtained funds into a cashier’s check then deposited money into a business bank account at another financial institution. Warren acknowledges his actions caused the SBA a total loss of $145,877.70.
“The federal government created programs to provide economic relief to businesses struggling to stay afloat during the COVID-19 related shutdowns,” said U.S. Attorney Kate E. Brubacher. “Unfortunately, Timothy Warren manipulated a well-intentioned program into a mechanism of personal financial gain and must now be held accountable.”
Warren is scheduled to be sentenced on October 3, 2023. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The U.S. Department of Defense- Defense Criminal Investigative Service and Defense Contract Audit Agency, the U.S. Department of Health and Human Services – Office of Inspector General, and the IRS-Criminal Investigations are investigating the case.
Assistant U.S. Attorney Aaron Smith is prosecuting the case.
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Justice Department Files False Claims Act Complaint Against Laboratory Companies and Their OwnerRead the Press Release
The Justice Department has filed a complaint against Patrick Britton-Harr and multiple laboratory companies owned by him alleging False Claims Act violations for submitting claims to Medicare for laboratory tests that were not ordered by health care providers, not medically necessary, and sometimes never performed.
According to the complaint, Britton-Harr owned and operated Provista Health LLC as well as multiple other corporate entities that allegedly sought to profit from the unfolding COVID-19 pandemic by offering COVID-19 tests to nursing homes as a way to bill Medicare for a wide array of medically unnecessary respiratory pathogen panel (RPP) tests. The complaint alleges that these RPP tests were not medically necessary because the beneficiaries had no symptoms of a respiratory illness and because the tests were for uncommon respiratory pathogens.
The complaint also alleges that Britton-Harr and Provista Health submitted claims for RPP tests that were never ordered by physicians. Multiple physicians denied ever ordering the thousands of RPP tests for which Britton-Harr and Provista Health allegedly submitted claims to Medicare listing one of these physicians as the ordering provider. The complaint further alleges that Britton-Harr and Provista Health submitted claims to Medicare for RPP tests that were never performed, including over 300 claims that stated that the nasal swab test sample was supposedly collected from the beneficiary on a date after the beneficiary had died.
As alleged in the complaint, Britton-Harr wholly owned and operated Provista Health, AMS Onsite Inc., Britton-Harr Enterprises Inc., Coastal Laboratories Inc. and Coastal Management Group Inc., and these companies – together with Britton-Harr – conspired to carry out these schemes.
“The Department of Justice is committed to holding accountable individuals and entities who exploited the COVID-19 pandemic for their own illicit purposes,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will continue to protect our federal health care programs, their beneficiaries, and taxpayers from fraud and abuse.”
“The complaint alleges that these individuals and their companies took advantage of a national health crisis to line their own pockets,” said U.S. Attorney Erek L. Barron for the District of Maryland. “Our office has and will continue to bring to justice those who used the COVID-19 pandemic to defraud individuals or the government.”
“Providers who saw the COVID-19 pandemic as an opportunity for illegal profit undermine the goals and integrity of critical public health measures,” said Deputy Inspector General for Investigations Christian J. Schrank of the Department of Health and Human Services, Office of Inspector General (HHS-OIG). “HHS-OIG remains committed to working with our law enforcement partners to hold accountable those who attempt to defraud these crucial public health measures and steal money from federal health care programs.”
“Patrick Britton-Harr and his co-conspirators took advantage of vulnerable adults during the public health emergency,” said Special Agent in Charge Thomas J. Sobocinski of the FBI Baltimore Field Office. “The FBI and its partners will continue to aggressively investigate those who try to exploit the American people and swindle funds for their own profit.”
The United States’ pursuit of this lawsuit illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement can be reported to the Department of Health and Human Services, at 800‑HHS‑TIPS (800-447-8477).
This matter is being handled by the Civil Division’s Commercial Litigation Branch, Fraud Section, and the U.S. Attorney’s Office for the District of Maryland. Investigative support is being provided by HHS-OIG and the FBI. The allegations in the complaint were identified by a government investigation that arose from a proactive analysis of Medicare claims data.
The Civil Division's Fraud Section Trial Attorneys Jonathan Hoerner and Vincent Vaccarella and Assistant U.S. Attorney/Deputy Civil Chief Tarra DeShields for the District of Maryland are handling this case.
The claims in the complaint are allegations only, and there has been no determination of liability.
ComplaintJury Finds Pittsburgh Man Guilty of Firearm and Drug Trafficking CrimesRead the Press Release
PITTSBURGH – Randale Chapman was convicted of firearm and drug trafficking crimes at the conclusion of a jury trial, United States Attorney Eric G. Olshan announced today.
Chapman, age 35 of Pittsburgh, was convicted of committing the following crimes on April 30, 2020: (1) possession of fentanyl, methamphetamine, or methylenedioxyamphetamine with intent to distribute, (2) possession of a firearm in furtherance of a drug trafficking crime, and (3) possession of a firearm after a prior felony conviction. He was also convicted of possessing oxycodone or methamphetamine with intent to distribute on February 5, 2021.
Assistant United States Attorney Craig W. Haller is prosecuting this case on behalf of the United States.
The Bureau of Alcohol, Tobacco, Firearms and Explosives; the United States Marshals Service and the Pittsburgh Bureau of Police conducted the investigation leading to the convictions in this case. This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department 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.
Jury Finds Former Correctional Sergeant Guilty of Perjury During Investigation into Cover-Up of Assault of a CSP Sacramento InmateRead the Press Release
SACRAMENTO, Calif. — A jury found a former California state correctional officer guilty yesterday afternoon of perjury in connection with a federal grand jury investigation into a conspiracy to cover up an assault of an inmate, U.S. Attorney Phillip A. Talbert announced. Following a three-day trial, Brenda Villa, 32, of North Highlands, was found guilty of one count of perjury.
According to the court records and evidence presented at trial, Villa was a correctional sergeant supervising other officers at California State Prison – Sacramento (also known as New Folsom State Prison or CSP-Sacramento) when correctional officer Arturo Pacheco unlawfully assaulted an inmate under color of law. Following the assault and the inmate’s death, the California Department of Corrections and Rehabilitation (CDCR) initiated an internal investigation. As the CDCR internal investigation proceeded, a federal grand jury began investigating federal criminal charges in conjunction with the Federal Bureau of Investigation and the U.S. Attorney’s Office.
Villa was called to testify in front of the grand jury about her role and the actions of her fellow officers in covering up the unlawful assault. Villa lied under oath to the federal grand jury investigating the incident.
This case is the product of an investigation by the Federal Bureau of Investigation with assistance from the California Department of Corrections and Rehabilitation. Assistant U.S. Attorneys Michael D. Anderson and Rosanne L. Rust are prosecuting the case.
Former correctional officers Arturo Pacheco and Ashley Aurich pleaded guilty and were sentenced to 12½ years and 21 months in prison, respectively.
Villa’s sentencing will be scheduled in front of U.S. District Judge William B. Shubb at a future court hearing. The next hearing in the case is on Monday, July 24, 2023. Villa faces a maximum statutory penalty of five years in prison for perjury and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Judge Finds Fort Myers Felon Guilty of Unlawfully Possessing A Loaded Firearm with an Obliterated Serial NumberRead the Press Release
Fort Myers, Florida – United States Attorney Roger B. Handberg announces that Steven Dewayne Barnes, Jr. (26, Fort Myers) has been found guilty, following a bench trial before United States District Judge Sheri Polster Chappell, of possessing a firearm as a convicted felon and possessing a firearm with an obliterated serial number. Barnes faces a maximum penalty of 20 years in federal prison. A sentencing date has not been set.
According to court records, on November 15, 2022, officers from the Fort Myers Police Department were on patrol when they encountered Barnes walking on Washington Avenue in Fort Myers. During a conversation with Barnes, officers became concerned that Barnes, a multi-convicted felon, may be concealing a weapon, and he was subsequently searched. Officers located and removed a loaded Smith and Wesson handgun equipped with a laser sight that had been concealed in Barnes’s waistband. The serial number on the gun had been scratched out. Barnes, who had previously served a sentence in state prison for a violent felony, is prohibited from possessing firearms or ammunition under federal law. Additionally, federal law prohibits possessing a firearm with an obliterated serial number.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Fort Myers Police Department, and the Florida Department of Law Enforcement. It is being prosecuted by Assistant United States Attorney Simon R. Eth.
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.
Honduran Man Pleads Guilty to Illegally Using Social Security Number to Obtain EmploymentRead the Press Release
NEW ORLEANS, LOUISIANA – WILSON MAZARIEGOS SARAVIA, ("SARAVIA") age 28, a native of Honduras, plead guilty on July 12, 2023 to a one-count bill of information charging him with illegally using a social security number to qualify for employment, in violation of Title 42, United States Code, Section 408(a)(7)(B), announced United States Attorney Duane A. Evans.
According to filed documents, on or about December 14, 2022, SARAVIA, presented a false Social Security card when signing in for a pre-employment safety class in St. Rose, Louisiana.
WILSON MAZARIEGOS SARAVIA faces a maximum term of imprisonment of not more than five (5) years followed by up to three (3) years of supervised release, a fine of up to $250,000.00, and a mandatory special assessment fee of $100.00. Sentencing is scheduled for November 8, 2023.
U.S. Attorney Evans praised the work of Homeland Security Investigations in investigating this matter. Assistant United States Attorney M. Irene González of the General Crimes Unit is in charge of the prosecution.
Hialeah Man Sentenced for Committing Armed Bank RobberyRead the Press Release
MIAMI – Today, U.S. District Court Chief Judge Cecilia M. Altonaga sentenced Ariel Valero, a 45-year-old Hialeah man, to over 11 years in federal prison followed by five years of supervised release for bank robbery and brandishing a firearm during a crime of violence.
On December 26, 2019, Valero entered a Wells Fargo bank, located in Miramar, Broward County, Florida, covered head-to-toe in a black jumpsuit and ski mask. Upon entering the bank, Valero brandished a black firearm, jumped onto the teller counter, threatened the tellers, and stole $30,959.99 in cash. Surveillance footage captured Valero leaving the scene of the robbery on a bicycle, pedaling for a couple of blocks, and then dumping the bicycle in the nearby plaza. A forensic examination of the bicycle seat revealed the presence of Valero’s DNA. The jury convicted Valero of the armed bank robbery.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida and Special Agent in Charge Jeffrey B. Veltri of the FBI, Miami Field Office, announced the sentence.
FBI Miami investigated the case, with assistance from the Miramar Police Department. Assistant U.S. Attorneys M. Catherine Koontz and Ajay Alexander prosecuted it. Assistant U.S. Attorney Joshua Paster is handling asset forfeiture.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov under case number 23-cr-60020.
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