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23 February 2023
Fraudulent Firearm Purchases Lead to Federal Prison Sentences for Two Flint MenRead the Press Release
GRAND RAPIDS, MICHIGAN — U.S. Attorney Mark Totten today announced that Jonathan-Michael Brown, of Flint, Michigan was sentenced to serve 120 months in prison for illegally purchasing 62 firearms from federally licensed firearms dealers in Michigan and Ohio. U.S. District Court Judge Jane M. Beckering also imposed a restitution order of $28,047.88 for losses to the firearms dealers and two years of supervised release following his term of incarceration. Co-defendant Jalen Kenyatta Malik Jackson, also of Flint, was sentenced in January to 12 months and one day imprisonment, two years of supervised release, and restitution of $12,004.27. In imposing the sentence against Brown, Judge Beckering commented that Brown’s “spree of firearms purchases” through the fraud scheme “victimized many people.”
“Protecting our communities by holding individuals accountable for straw purchasing weapons and fraudulently acquiring firearms that flood our streets with illegal guns is a top priority for my office,” said U.S. Attorney Mark Totten. “We will continue working with the ATF and our law enforcement partners to target these types of schemes that put our communities at risk.”
According to court documents, Brown, age 24, and Jackson, age 25, illegally purchased 62 firearms (and attempted to purchase 19 additional firearms) from federally licensed firearms dealers using multiple fraudulent methods. Brown had previously been convicted of a felony offense and could not lawfully possess any firearms. Brown acquired firearms by posing as another person and using the driver’s license and credit card account number assigned to that person and others to purchase the weapons for resale. After Brown’s arrest by state authorities, he recruited Jackson to make false statements to gun dealers and acquire multiple firearms using credit card numbers assigned to other people to purchase those weapons to resell to others. As a result, the cost of the guns was passed on to others and Brown and Jackson transferred the firearms to others for profit.
Brown pleaded guilty to three federal crimes: making a false statement and aggravated identity theft in connection with the purchase of two firearms, and conspiracy to commit wire fraud for profiting from selling firearms that he and Jackson illegally purchased from firearms dealers. Jackson pleaded guilty to one count of making a false statement during the purchase of firearms.
“Illegally providing firearms to prohibited persons fuels violent criminals presenting a grave threat to our communities,” said, ATF Acting SAC Craig Kailimai. “The collaborative effort with the U.S. Attorney’s Office, our federal, State of Michigan, and local partners continues to remove illegally trafficked firearms and those individuals involved from our streets.”
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Michigan State Police, Flint Police Department, Saginaw Township Police Department, and Canton Police Department also aided in the investigation. Assistant U.S. Attorney Clay M. West prosecuted the case.
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Former Police Officer Sentenced for Money LaunderingRead the Press Release
Georgia man will serve 59 months in prison for his role in conspiracy to obtain more than $1 million in COVID-19 relief funds
GRAND RAPIDS, MICHIGAN — United States Attorney Mark Totten today announced that former Georgia police officer Andre Jackson has been sentenced to 59 months in prison followed by three years of supervised release for attempting to launder $500,000 in fraudulently obtained COVID-19 relief funds. During sentencing, U.S. District Judge Jane M. Beckering noted that Jackson’s behavior is “gutsy. It’s greedy. It’s concerning.”
“Andre Jackson was a con artist who tried to exploit the COVID-19 pandemic for his own personal gain,” said U.S. Attorney Totten. “Anyone who tries to get rich quick by stealing money intended to help those in need should expect to be held fully accountable.”
Jackson is a former police officer from Clayton County, Georgia. In 2020, he introduced fellow Georgia resident James Williams to Jemar Mason and David Kurbanov, both residents of the Western District of Michigan. Williams helped Mason and Kurbanov prepare fraudulent applications for Paycheck Protection Program loans authorized by the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act. This Act was a federal law designed to provide emergency financial assistance to the millions of Americans who were suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of forgivable loans to small businesses through the Paycheck Protection Program (PPP), which was designed to provide small businesses with loans in order to keep employees on payroll. Jackson and his co-conspirators exploited the program to obtain approximately $1.495 million in fraud proceeds.
Afterwards, Jackson attempted to launder some of the proceeds by directing two of his confederates to wire $500,000 to an overseas bank account that Jackson selected. Investigators from the Drug Enforcement Administration detected the plot and the Internal Revenue Service took steps to freeze the bank accounts of the conspirators, ultimately recovering approximately $1.123 million of the fraud proceeds. Federal prosecutors in the Western District of Michigan brought charges against five codefendants, including Jackson, all of whom have now been convicted in connection with the scheme.
“Pandemic relief funds in the form of PPP loans were established to help legitimate businesses weather the economic crisis created by COVID-19.” said Charles Miller, Acting Special Agent in Charge of IRS Criminal Investigation, Detroit Field Office. “In concert with the U.S. Attorney’s Office and our federal law enforcement partners, IRS-CI will continue to track down individuals who attempt to exploit this federal relief program for their own personal greed and hold them accountable for their crimes.”
“Jackson and his co-defendants stole money from the Paycheck Protection Program, which was a critical lifeline for Michigan’s small businesses during the pandemic,” said James A. Tarasca, Special Agent in Charge of the FBI in Michigan. “It was a serious crime, and the FBI remains committed to working with our law enforcement partners to identify fraudsters like this defendant and hold them fully accountable for their crimes.”
The charges in this case were part of an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation, dubbed Operation Cashout, by law enforcement officers in the Western District of Michigan and the Northern District of Georgia, including the Internal Revenue Service – Criminal Investigation, Drug Enforcement Administration, Federal Bureau of Investigation, United States Postal Inspection Service, United States Secret Service, Bureau of Alcohol, Tobacco, Firearms, and Explosives, Michigan State Police, Kent Area Narcotics Enforcement Team (KANET), and the Grand Rapids Police Department.
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.
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Former Pharma Executive and Cousin Charged with Insider Trading of Kodak StockRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Michael J. Driscoll, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of an Indictment charging JAMES ANDREW STILES, a/k/a “Andrew Stiles,” and EDWARD GRAY STILES, a/k/a “Gray Stiles,” with multiple counts of securities fraud and conspiracy to commit both wire fraud and securities fraud in connection with a scheme to commit insider trading based on misappropriated information about potential government loans to be made to the Eastman Kodak Company to finance the production of COVID-19-releated pharmaceutical components. ANDREW STILES was arrested this morning in South Carolina, and GRAY STILES was arrested this morning in Virginia.
U.S. Attorney Damian Williams said: “By stealing confidential business information, Andrew Stiles allegedly betrayed the trust and confidence of his employer — a pharmaceutical company working to help the public at the height of the COVID-19 pandemic — and schemed with his cousin, Gray Stiles, to collectively make more than a million dollars of illegal profits. Today’s arrests show that this Office will continue to prosecute those who seek to profit at the expense of the integrity and fairness of our financial markets.”
FBI Assistant Director Michael J. Driscoll said: “As alleged, the defendants are the latest examples of criminal actors relying on material non-public information to trade securities for their own profit. When individuals motivated by greed illegally tip the scales in their favor, public confidence in the integrity of our financial markets is eroded. Investigating and holding accountable the perpetrators of these schemes remains a priority for the FBI.”
According to the allegations in the Indictment unsealed in Manhattan federal court:[1]
Between June and July 2020, ANDREW STILES conducted an insider trading scheme in which he misappropriated material, non-public information (“MNPI”) and used it to trade in the stock of the Eastman Kodak Company (“Kodak”) and further provided that MNPI to his cousin, GRAY STILES, so that GRAY would likewise trade on the MNPI.
During that time, ANDREW STILES was an executive at a company (“Company-1”) that was working with Kodak to collaborate on the production of chemicals for pharmaceutical manufacturing in connection with the COVID-19 pandemic. Company-1 was also assisting Kodak in its application for a significant government loan, which ultimately resulted in the news, on July 27, 2020, of a government “letter of interest” to provide Kodak with a loan of $765 million (the “LOI”). In the following days, Kodak stock rose substantially, at one point increasing to more than 2,500% above the closing price prior to the news of the LOI.
During June and July 2020, ANDREW STILES was kept apprised of Kodak’s efforts to obtain the government loan, and he both traded using that non-public information and passed that information to GRAY STILES. For example, on July 9, 2020, when Kodak had applied for a loan in the amount of $655 million, ANDREW STILES and GRAY STILES exchanged the following coded text messages:
GRAY: Any update on the film we sent off a few weeks ago to get developed
ANDREW: 600+. Maybe 2 weeks out
GRAY: I can live with that hahaha
Between June 2020, after ANDREW STILES learned about the potential loan to Kodak, and July 27, 2020, the date the LOI was first publicized, ANDREW STILES purchased more than 90,000 shares of Kodak stock, including multiple purchases the day before the LOI was scheduled to be announced. GRAY STILES purchased more than 30,000 shares, more than half of which were purchased the day prior to the scheduled announcement of the LOI. In fact, on July 27, 2020, ANDREW STILES texted GRAY STILES, “Tmw,” indicating the expected date of the announcement. Less than one minute later, GRAY STILES responded, “Hot damn.” Following that exchange, and before the news was announced, ANDREW and GRAY STILES each purchased more than 10,000 additional shares.
ANDREW and GRAY STILES each sold the entirety of their shares in the days and weeks after the announcement. ANDREW STILES realized profits of more than $500,000; GRAY STILES realized profits of more than $700,000.
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ANDREW STILES, 37, of South Carolina, and GRAY STILES, 37, of Virginia, are each charged with three counts of securities fraud, each of which carries a maximum sentence of 20 years in prison, and one count of conspiracy to commit wire fraud and securities fraud, which carries a maximum sentence of five years in prison.
The statutory maximum penalties in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge.
Mr. Williams praised the outstanding work of the FBI.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Alex Rossmiller, Nicolas Roos, and Allison Nichols are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth in this release constitute only allegations, and every fact described should be treated as an allegation.
Former Legislator Sentenced to Five Years and Three Months in Prison for Theft of Government Funds and Honest Services Wire FraudRead the Press Release
SAN JUAN, Puerto Rico – Today, former legislator Nestor Alonso-Vega was sentenced by United States District Court Chief Judge Raúl Arias Marxuach to serve 63 months in prison, announced United States Attorney W. Stephen Muldrow. On June 6, 2022, Alonso-Vega was found guilty of nine counts of Federal Funds Theft, Kickbacks, and Honest Services Wire Fraud.
According to court documents and evidence presented at trial, between April 2018 and September 2020, Nestor Alonso-Vega authorized several salary adjustments for his assistant. It was agreed that his assistant would kickback to Alonso-Vega half of the total amount of the pay raise, split between each pay day. The total loss for the House of Representatives was $81,500, of which defendant received more than $40,000.
It was further alleged that the assistant, who testified during the trial, used a variety of means to transfer the kickbacks to Alonso-Vega. For example, he used ATH Móvil, made withdrawals around the time he received his paycheck and paid Alonso-Vega in cash, and, at times, made payments to Alonso-Vega’s Home Depot account.
“We continue to see the results of our efforts fighting public corruption,” said U.S. Attorney Muldrow. “The citizens of Puerto Rico deserve that their dollars be put to good use and not to line the pockets of corrupt officials. We will continue to investigate and prosecute corrupt behavior wherever we find it.”
Assistant U.S. Attorney Scott Anderson prosecuted the case. The case was investigated by FBI Special Agent Juan Carlos López of the San Juan Field Office.
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Former Jackson Township Official Sentenced to Prison for EmbezzlementRead the Press Release
PITTSBURGH - A Florida resident has been sentenced in federal court to 100 days in prison, to be followed by three years of supervised release, plus restitution of $150,000 on her conviction of mail fraud, Acting United States Attorney Troy Rivetti announced today.
United States District Judge Robert J. Colville imposed the sentence on Linda Baun, 73, of Largo, FL 33770.
According to information presented to the court, Baun was formerly employed as the Secretary/Treasurer for Jackson Township, in Mercer County. Between 2011 and 2019, she embezzled at least $150,000 from the Township by making unauthorized ATM withdrawals and by charging personal purchases on Amazon to the Township’s debit card.
Prior to imposing sentence, Judge Colville stated that Baun committed a serious crime involving public corruption.
Assistant United States Attorney Stephen R. Kaufman prosecuted this case on behalf of the government.
Acting United States Attorney Rivetti commended the Federal Bureau of Investigation, Pennsylvania State Police and the Mercer County District Attorney’s Office for the investigation leading to the successful prosecution of Baun.
Former Assistant Chief of Staff of the U.S. Navy’s Seventh Fleet Sentenced to 30 Months in Prison in Massive Corruption ScandalRead the Press Release
SAN DIEGO – U.S. Navy Captain (Retired) Jesus Vasquez Cantu was sentenced today to 30 months in prison by a federal district judge in San Diego on charges that he received lavish bribes from foreign defense contractor Leonard Francis, who plied him with luxurious hotel stays, travel, and prostitutes. Cantu was also ordered to pay a criminal fine of $75,000 and restitution to the U.S. Navy in the amount of $100,000.
“Mr. Cantu entered a den of corruption and in the process repudiated his oath and betrayed the sacred trust placed in him by the American people,” said U.S. Attorney Randy Grossman. “The Department of Justice and our agency partners will never relent in our pursuit of justice for schemes that dishonor our armed forces.”
Grossman thanked the prosecution team and agency partners for their excellent work on this case.
In his plea agreement, Cantu acknowledged that Francis took him and others out for drinks and dinners at posh restaurants, nightclubs and karaoke bars and paid for lavish hotel rooms and the services of prostitutes on numerous occasions in 2012 and 2013, during which time Cantu was the deputy commander, MSC Far East in Singapore, in charge of logistical sustainment to Navy ships operating in the Seventh Fleet. Cantu admitted that in return for these luxuries, he provided proprietary U.S. Navy information to Francis, and that he used his power and influence to help Francis and his company, Glenn Defense Marine Asia, known as GDMA, in its ship husbanding business.
Cantu also admitted in his plea agreement that, in 2007, when he was the Assistant Chief of Staff for Logistics for the Commander of the U.S. Navy’s Seventh Fleet aboard the USS Blue Ridge, he and others participated in a bribery conspiracy with Francis. Cantu and other members of the conspiracy accepted an ongoing stream of bribes from Francis, and in exchange, Cantu was influenced in the performance of his official Navy responsibilities and acted in violation of his official Navy duties.
“Mr. Cantu's sentencing holds him accountable for crimes he committed while serving as a senior Naval officer. His unconscionable criminal activity profoundly dishonored his oath, and unquestionably failed to meet the exacting standards required of all U.S. military personnel,” said Kelly P. Mayo, the Director of the Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS). “DCIS and its investigative partners will continue their tireless efforts to bring to justice those who choose a similar illicit and dishonorable path regardless of tenure or position.”
“Mr. Cantu betrayed his oath to his country and abused his position with the Navy by accepting lavish gifts from GDMA, including hotel rooms, entertainment, alcohol, and the services of prostitutes, in exchange for divulging sensitive information that helped Leonard Francis defraud the United States,” said NCIS Director Omar Lopez. “NCIS and our law enforcement partners remain committed to fully investigating all allegations of conspiracy, bribery and corruption that threaten the integrity of the Department of the Navy.”
The case is being prosecuted by Assistant U.S. Attorneys Mark W. Pletcher, Valerie Chu, Michelle Wasserman, and David Chu of the U.S. Attorney’s Office for the Southern District of California.
DEFENDANT Case Number: 17-CR-2376
Captain (Retired) Jesus Vasquez Cantu Age 64 Silverdale, Washington
SUMMARY OF CHARGES
Conspiracy to Commit Bribery, in violation of 18 U.S.C. § 371
Maximum Penalty: Five years in prison, a $250,000 fine or twice the gross pecuniary gain or twice the gross pecuniary loss, whichever is greaterINVESTIGATING AGENCIES
Defense Criminal Investigative Service
Naval Criminal Investigative Service
Defense Contract Audit Agency
Felon admits illegal possession of firearm after offering to sell pistol, illegal switches for firearm conversionRead the Press Release
BILLINGS — A California man suspected of offering to sell an undercover agent a pistol and switches used to convert firearms from semiautomatic to fully automatic admitted to a firearm charge today, U. S. Attorney Jesse Laslovich said.
Drew Parker Seymour, 24, of Banning, California, pleaded guilty to an indictment charging him with prohibited person in possession of a firearm. Seymour faces a maximum of 10 years in prison, a $250,000 fine and three years of supervised release.
U.S. Magistrate Judge Timothy J. Cavan presided. A sentencing date will be set before U.S. District Judge Susan P. Watters. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Seymour was detained pending further proceedings.
The government alleged in court documents that Seymour has a felony conviction in California for illegally possessing a firearm. In March 2022 in Billings, the Bureau of Alcohol, Tobacco, Firearms and Explosives learned that a person online offered to sell an individual illegal Glock switches, which are used to convert firearms from semiautomatic to fully automatic. The seller was later identified as Seymour. An undercover agent began communicating with Seymour, who offered to sell the agent Glock switches and a .45 caliber pistol. Seymour sent pictures of both. Seymour later withdrew his offer to sell the Glock switches. The undercover agent agreed to meet Seymour to buy the pistol. Earlier that day, before the meeting occurred, drug task force agents detained Seymour and his girlfriend at a U.S. Post Office in Billings as the couple was attempting to pick up a package of fentanyl. Law enforcement searched the couple’s motel room and located a .45-caliber, semiautomatic pistol hidden under a mattress. The pistol looked to be identical to the firearm in the pictures Seymour had sent, and Seymour’s fingerprint was recovered on the magazine of the gun.
Assistant U.S. Attorney Benjamin D. Hargrove is prosecuting the case, which was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Billings Police Department, U.S. Postal Service and Eastern Montana High Intensity Drug Trafficking Area Task Force.
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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Federal Indictment Charges Four Co-Conspirators for Scheme Involving Money Orders Stolen from Post OfficeRead the Press Release
CHARLOTTE, N.C. – U.S. Attorney Dena J. King announced that a federal grand jury in Charlotte has indicted four co-conspirators for a scheme involving stolen United States Postal Service (USPS) money orders.
Jeff Krafels, Special Agent in Charge of the United States Postal Service, Office of the Inspector General (USPS-OIG) for the Mid-Atlantic Area Field Office (MAAFO), which oversees Charlotte, joins U.S. Attorney King in making today’s announcement.
Ravenna Lee Dorsey, Jr., 33, of Charlotte, Jaren Jamar Hopkins-Benton, 28, of Charlotte, Gregory Jeremy Singleton, 27, of Charlotte, and Shawn Joanta Brooks, 40, of Shelby, North Carolina, are each charged with conspiracy to defraud the United States by possessing and passing forged and altered USPS money orders, and possession of stolen and fraudulently altered USPS money orders.
According to allegations in the indictment, between November 2020 and February 2023, the co-conspirators acquired approximately 2,500 blank USPS money orders stolen from a Charlotte area post office. The indictment alleges that the co-conspirators purchased and used legitimate USPS money orders as “templates” to generate falsified and forged USPS money orders, which they deposited into multiple bank accounts and credit union accounts, and then withdrew the cash proceeds before the financial institutions detected the fraud. As alleged in the indictment, the co-conspirators redeemed approximately 800 of the stolen USPS money orders, causing losses totaling more than $750,000.
The charges in the indictment are allegations. The defendants are innocent until proven guilty beyond reasonable doubt in a court of law.
The conspiracy charge and each count of possession of stolen and fraudulently altered USPS money orders carry a maximum penalty of five years in prison and a $250,00 fine per count. A federal district court judge will determine each defendant’s sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
In making today’s announcement, U.S. Attorney King thanked the USPS-OIG for their investigation of the case.
Assistant U.S. Attorney Kenneth Smith of the U.S. Attorney’s Office in Charlotte is prosecuting the case.
Fayetteville Man Sentenced to More Than 11 Years in Federal Prison for Drug TraffickingRead the Press Release
FAYETTEVILLE – A Fayetteville man was sentenced yesterday to 140 months in prison followed by three years of supervised release on one count of Possession with Intent to Distribute Methamphetamine. The Honorable Judge Timothy L. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville.
According to court documents, on January 25, 2022, detectives with the 4th Judicial Drug Task Force were investigating Richard Heath Brown, age 46, for drug trafficking. During the investigation, detectives learned that Brown was in possession of methamphetamine and that he had an outstanding warrant for his arrest. After receiving information of Browns vehicle, detectives were able to locate it and arrest him. A search of the vehicle resulted in detectives locating a black bag that contained approximately 412 grams of suspected methamphetamine.
The suspected methamphetamine was sent to the Department of Homeland Security forensic laboratory for further analysis.
U.S. Attorney David Clay Fowlkes of the Western District of Arkansas made the announcement.
The 4th Judicial District Drug Task Force investigated the case.
Assistant U.S. Attorney Sydney Butler prosecuted the case.
Fayetteville Man Sentenced to 14 Years in Federal Prison for Drug TraffickingRead the Press Release
FAYETTEVILLE – A Fayetteville man was sentenced today to 168 months in prison followed by 3 years of supervised release on one count of Possession with Intent to Distribute Methamphetamine. The Honorable Judge Timothy L. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville.
According to court documents, on May 25, 2022, detectives with the 4th Judicial District Drug Task Force (DTF) received information that Reginald Everette Counts, age 49, was selling methamphetamine in the Northwest Arkansas area. Detectives learned Counts was residing at a hotel in Fayetteville, Arkansas.
As part of their investigation, detectives checked Counts through ACIC/NCIC and confirmed he was a probationer with a valid search waiver on file. Detectives then conducted surveillance at the hotel parking lot While conducting surveillance, detectives made contact with Counts in the parking lot as he was getting on his scooter. Detectives identified themselves as law enforcement officers and they searched Counts pursuant to his warrantless search waiver.
During the search of Counts, detectives located a pouch hanging around his neck. The pouch contained a bag of methamphetamine weighing approximately 28.5 grams, clear baggies and a digital scale. In Counts' jean pocket, detectives located a glass smoking pipe and $1,570.00 in U.S. currency. A search of Counts hotel room resulted in detectives locating five individually packaged bags of methamphetamine with an approximate weight of 143.3 grams. On May 27, 2022, Counts was released from custody on bond. On May 29, 2022, he was encountered again with a distribution amount of methamphetamine on his person. Counts attempted to flee the arresting officer and during the course of the arrest the officer sustained a torn ACL.
The drugs were subsequently sent to the Homeland Security Investigations Crime Laboratory where they tested positive for methamphetamine.
U.S. Attorney David Clay Fowlkes of the Western District of Arkansas made the announcement.
The Fourth Judicial District Drug Task Force investigated the case.
Assistant U.S. Attorney David Harris prosecuted the case.
Farmington Man Sentenced to More Than 13 Years in Federal Prison for Drug TraffickingRead the Press Release
FAYETTEVILLE – A Farmington man was sentenced today to 162 months in prison followed by three years of supervised release on one count of Possession with Intent to Distribute Methamphetamine. The Honorable Judge Timothy L. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville.
According to court documents, on February 15, 2022, an officer with the Farmington Police Department was dispatched to a report of a suspicious male carrying a backpack who matched the description of a recent theft suspect. The officer located the male and made contact. The male identified himself as Robert James Poindexter, age 39. When the officer reviewed Poindexter’s record, he showed to have a warrantless search waiver on file as a condition of being on probation.
The officer observed that Poindexter appeared to be intoxicated and asked Poindexter if he had anything illegal on him. Poindexter removed a pair of brass knuckles from his pocket and provided them to the officer. A search of Poindexter’s person and backpack resulted in officers locating approximately 248 grams of suspected methamphetamine in three separate baggies, a large bag of marijuana and drug paraphernalia.
The suspected methamphetamine was sent to the Department of Homeland Security forensic laboratory where it was tested and determined to be methamphetamine.
U.S. Attorney David Clay Fowlkes of the Western District of Arkansas made the announcement.
The Farmington Police Department and the 4th Judicial District Drug Task Force investigated the case.
Assistant U.S. Attorney Sydney Butler prosecuted the case.
Farley Man Pleads Guilty to Sexually Assaulting 3-Year-Old Victim to Produce, Distribute Child PornographyRead the Press Release
KANSAS CITY, Mo. – A Farley, Mo., man pleaded guilty in federal court today to sexually assaulting a 3-year-old victim to produce child pornography and distribute it to others through the Kik application.
Andrew J. McCardie, 36, pleaded guilty before U.S. District Judge Brian C. Wimes to two counts of producing child pornography and one count of distributing child pornography. McCardie remains in federal custody without bond pending his sentencing hearing, which has not yet been scheduled.
McCardie communicated with individuals through the Kik application beginning in January 2022, using a screen name to indicate he was willing and able to produce child pornography and distribute to other persons. McCardie produced 19 images and videos of child pornography involving a 3-year-old child victim on Feb. 11 and 12, 2022. Most of these were created live, meaning he was recording himself actively sexually abusing the child victim while communicating with other persons over Kik, and sending those images and videos to them during the abuse.
On March 5, 2022, McCardie created another live video during his sexual abuse of the child victim. McCardie didn’t know he was communicating with an undercover law enforcement officer through Kik. McCardie told the undercover officer he had been “doing these requests on Kik for a couple years now” and discussed how to sexually abuse a child. During this conversation, McCardie sent the undercover officer a screenshot of a chat he was having with the Kik user he produced the video for, in order to prove he had created the video live.
On March 6, 2022, law enforcement officers executed a search warrant at McCardie’s residence. The entry team attempted to take control of McCardie near the entrance of the residence but he resisted, initially holding a firearm as officers entered. McCardie was brought out into the yard, where he continued to resist before being handcuffed and placed under arrest. McCardie attempted to hide his iPhone in the bedroom closet, but officers found the phone and seized it in order to conduct a forensic investigation.
McCardie’s Kik account included 218 images and videos of child pornography. McCardie sent 58 separate videos and images of child pornography to other Kik users, and had received more than 200 images and videos of child pornography from other Kik users between Jan. 2 and March 7, 2022.
Under federal statutes, McCardie is subject to a mandatory minimum sentence of 15 years in federal prison without parole, up to a sentence of 80 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Kenneth W. Borgnino. It was investigated by the FBI.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Ex-Housing Authority Official Ordered to Pay Restitution for Federal Fraud CrimeRead the Press Release
CHARLESTON, W.Va. – Pamela McDaniel, 69, of Charleston, was ordered today to pay $17,543.92 in restitution and sentenced to five years of federal probation, including six months on home detention, for altering a postal money order and embezzling more than $28,000 from the Charleston-Kanawha Housing Authority (CKHA).
According to court documents and statements made in court, McDaniel had been employed by CKHA since 2006 and was serving as a housing manager in 2018. As a housing manager, McDaniel’s duties included collecting tenant rental payments and forwarding them to the CKHA accounts clerk. On January 10, 2018, McDaniel received a $235 postal money order from a CKHA tenant intended for rental payment. McDaniel admitted to adding her own name to the postal money order to make it appear as though McDaniel was the intended beneficiary of the payment. McDaniel deposited the postal money order into her personal checking account.
McDaniel further admitted that from 2007 to 2018, she used her position as a CKHA housing manager to embezzle $28,523.30. As part of this scheme, McDaniel altered money orders she received from tenants attempting to pay dues that they owed CKHA and deposited the altered money orders into her personal checking account. McDaniel offset some of the money she stole by repaying a portion of the embezzled funds.
United States Attorney Will Thompson made the announcement and commended the investigative work of the U.S. Department of Housing and Urban Development Office of Inspector General (HUD OIG) and the Federal Bureau of Investigation (FBI).
United States District Judge Joseph R. Goodwin imposed the sentence. Assistant United States Attorney Ryan Blackwell prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:22-cr-157.
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Eight Members of Bronx Gangs “Sev Side” and “Third Side” Charged with Murder, Racketeering, and Related Violent OffensesRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Keechant L. Sewell, Commissioner of the New York City Police Department (“NYPD”), announced the unsealing today of an Indictment charging KEVIN PEREZ, a/k/a “Kay Flock,” a/k/a “Kay,” a/k/a “KK,” DEVON MASON, a/k/a “BJ,” ERVIN BEAMON, a/k/a “EJ,” NICHOLAS JOHNSON, a/k/a “Nick,” SEAN SMITH, a/k/a “Sticky,” and JOSSI CASTRO, a/k/a “Jesse,” with racketeering conspiracy and other crimes related to their membership in “Sev Side,” or “DOA,” a street gang based in the Bronx, New York. On January 26, 2023, a Superseding Indictment was unsealed charging ISZAYAH ROWSON, a/k/a “Zay Munna,” a/k/a “Zay,” and MICHAEL GANT, a/k/a “AP,” with racketeering conspiracy and other crimes related to their membership in “Third Side,” a street gang also based in the Bronx, New York, that was closely affiliated with Sev Side. PEREZ was also charged with the gang-related murder of Hwascar Hernandez, who was shot to death on December 16, 2021, in the Hamilton Heights section of Upper Manhattan. PEREZ, MASON, BEAMON, JOHNSON, ROWSON, and GANT were further charged with multiple other violent crimes in connection with the Sev Side and Third Side gangs, including attempted murder and assault with a dangerous weapon arising from seven shootings committed in the Bronx between June 2020 and February 2022. The Sev Side Indictment is assigned to United States District Judge Lewis J. Liman. The Third Side Indictment is assigned to United States District Judge Paul A. Engelmayer.
ROWSON and GANT are currently in federal custody in connection with the charges contained in the Third Side Superseding Indictment. MASON, JOHNSON, and CASTRO were arrested this morning in the Bronx and are expected to be presented later today before Magistrate Judge Valerie Figueredo. PEREZ, who was in state custody, has been transferred to federal custody and is also expected to be presented later today. SMITH and BEAMON are fugitives.
U.S. Attorney Damian Williams said: “Over a span of several years, the members of these gangs allegedly terrorized neighborhoods in the Bronx and Manhattan by killing and shooting other people. Through these charges, we will hold Sev Side and Third Side members responsible for plaguing our communities with gun violence.”
NYPD Commissioner Keechant L. Sewell said: “The deadly nexus of gangs and illegal guns in New York City is a grave threat to public safety in our city. Combatting this crisis is the NYPD’s top priority, and today’s indictments are another step toward ridding our streets of violence and fear. I want to thank the U.S. Attorney’s Office for the Southern District of New York and everyone else involved with this case who worked to make our city safer for all the people we serve.”
According to the allegations in the Sev Side Indictment and the Third Side Superseding Indictment and statements previously made on the record in this case and related matters:[1]
From at least 2019 to 2022, members of Sev Side and Third Side, two street gangs based in the 48th Precinct in the Bronx, New York, aligned with one another to terrorize their own and surrounding neighborhoods by committing indiscriminate shootings against members of rival street gangs. Members of the gangs also promoted the gangs and gun violence on social media and through music they created and promoted, which referenced real acts of violence.
For years, Sev Side and Third Side engaged in disputes with rival crews in the Bronx and in Manhattan, which resulted in numerous acts of violence, including the following:
- PEREZ murdered Hwascar Hernandez in broad daylight in Manhattan on December 16, 2021;
- PEREZ, GANT, and ROWSON shot at rival gang members on June 20, 2020;
- JOHNSON shot at a rival gang member on June 26, 2020;
- GANT shot at rival gang members on July 7, 2020;
- GANT shot at rival gang members on July 16, 2020;
- ROWSON shot at a rival gang member on December 13, 2020;
- PEREZ, MASON, and BEAMON shot at rival gang members on November 10, 2021; and
- MASON shot at a rival gang member and hit an innocent bystander on February 10, 2022.
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A chart containing the names of the defendants who were charged today and on January 26, 2023, and the charges and minimum and maximum penalties they face is attached. All of the defendants are residents of the Bronx, New York.
The statutory minimum and maximum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendants would be determined by a judge.
Mr. Williams praised the outstanding investigative work of the NYPD and thanked the New York County District Attorney’s Office and the Bronx County District Attorney’s Office for their assistance.
This case is being handled by the Office’s Violent and Organized Crime Unit. Assistant U.S. Attorneys Elizabeth Espinosa, Jim Ligtenberg, and Ni Qian are in charge of the prosecution.
The charges contained in the Indictment and the Superseding Indictment are merely accusations and the defendants are presumed innocent unless and until proven guilty.
Defendant
Age
Charges
Minimum and Maximum Penalties
KEVIN PEREZ
19
Racketeering Conspiracy, Murder in Aid of Racketeering, Use of a Firearm Resulting in Death, Attempted Murder and Assault with a Dangerous Weapon in Aid of Racketeering, Use of a Firearm for Attempted Murder and Assault with a Dangerous Weapon
Mandatory life in prison or death
DEVON MASON
24
Racketeering Conspiracy, Attempted Murder and Assault with a Dangerous Weapon in Aid of Racketeering, Use of a Firearm for Attempted Murder and Assault with a Dangerous Weapon, Possession of a Firearm with Defaced Serial Number
Maximum of life in prison; mandatory minimum 20 years to run consecutive to any other sentence
ERVIN BEAMON
23
Racketeering Conspiracy, Attempted Murder and Assault with a Dangerous Weapon in Aid of Racketeering, Use of a Firearm for Attempted Murder and Assault with a Dangerous Weapon
Maximum of life in prison; mandatory minimum 10 years to run consecutive to any other sentence
NICHOLAS JOHNSON
21
Racketeering Conspiracy, Attempted Murder and Assault with a Dangerous Weapon in Aid of Racketeering, Use of a Firearm for Attempted Murder and Assault with a Dangerous Weapon
Maximum of life in prison; mandatory minimum 10 years to run consecutive to any other sentence
SEAN SMITH
32
Racketeering Conspiracy, Possession of a Firearm After a Felony Conviction
Maximum of 30 years in prison
JOSSI CASTRO
25
Racketeering Conspiracy
Maximum of 20 years in prison
ISZAYAH ROWSON
22
Racketeering Conspiracy, Attempted Murder and Assault with a Dangerous Weapon in Aid of Racketeering, Use of a Firearm for Attempted Murder and Assault with a Dangerous Weapon; Transportation and Receipt of a Firearm While Under Felony Indictment
Maximum of life in prison; mandatory minimum 20 years to run consecutive to any other sentence
MICHAEL GANT
21
Racketeering Conspiracy, Attempted Murder and Assault with a Dangerous Weapon in Aid of Racketeering, Use of a Firearm for Attempted Murder and Assault with a Dangerous Weapon
Maximum of life in prison; mandatory minimum 20 years to run consecutive to any other sentence
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the Superseding Indictment and the description of the indictments set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Delaware Woman Sentenced to 9 years in Federal Prison for Laundering Drug Proceeds over the Course of Eight YearsRead the Press Release
WILMINGTON, Del. – David C. Weiss, U.S. Attorney for the District of Delaware, announced that today Circuit Judge Stephanos Bibas, of the United States Court of Appeals for the Third Circuit, sitting by designation in the District of Delaware, sentenced Shakira Martinez to 9 years’ incarceration for money laundering, conspiracy to commit money laundering, and structuring bank transactions following a jury verdict in July of 2022. Martinez was convicted together with her husband, Omar Colon, who was previously sentenced to 45 years’ incarceration for money laundering and drug crimes. Colon was referred to in Court as one of the biggest cocaine traffickers in Delaware history.
According to court records and statements made in open court, between 2009 and 2017, Martinez and Colon laundered nearly a million dollars in drug proceeds through the purchase of real estate properties in Delaware and Pennsylvania using their company, Zemi Property Management. They deposited drug money into several different bank accounts – and asked their friends and family members to do the same – and then used those funds to buy cashier’s checks that funded the property purchases. As the government noted at the sentencing hearing, the success of Colon’s drug empire would not have been possible without Martinez’s money laundering and structuring crimes.
Colon was arrested on May 6, 2017, shortly after giving his cocaine supplier $382,045 in cash in a hotel parking lot in Newark, Delaware. The Drug Enforcement Administration (“DEA”) subsequently discovered a secret underground bunker beneath Colon and Martinez’s residence, accessed by a tunnel behind a false fireplace, in which Colon hid a marijuana grow operation.
Before imposing sentence, Circuit Judge Bibas noted the seriousness of Martinez’s crimes, and said that money laundering is a “huge issue that fuels the drug trade with all its harms.” He further noted that the Court “needs to send a message that money laundering is a serious crime.”
U.S. Attorney Weiss commented on the case: “Ms. Martinez has received a serious sentence consistent with her central role in Colon’s drug empire. As Circuit Judge Bibas acknowledged in his remarks, drug trafficking wreaks havoc on the community and on families. Mr. Colon imported massive amounts of cocaine into Delaware for many years. The only way for Mr. Colon and Ms. Martinez to reap the fruits of Colon’s drug crimes and amass a real estate empire was through their money laundering scheme.”
“Martinez’s money laundering and structuring activities were the fuel that allowed her husband Colon to continue to purchase cocaine in furtherance of his drug-trafficking activities,” said Thomas Hodnett, Special Agent in Charge of the Drug Enforcement Administration’s (DEA) Philadelphia Field Division. “We applaud the sentence that Judge Bibas’ imposed on Martinez and his declaration of money laundering as the serious crime that it is.”
Special Agent in Charge Yury Kruty said “IRS Criminal Investigation special agents are uniquely qualified to follow complex financial transactions and uncover the source of the illegal funds. Martinez and Colon employed multiple tactics to clean up their ill-gotten gains, but in the end, they could not outsmart the government. The sentence handed down today is a stark reminder of the fate of those who engage in money laundering schemes.”
Assistant U.S. Attorneys Jennifer K. Welsh and Meredith C. Ruggles prosecuted the case. This case was investigated by the DEA Philadelphia Division and the Internal Revenue Service, Criminal Investigations.
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. 1:17-cr-00047-LPS.
Cumberland Man Sentenced to Ten Years in Federal Prison in Largest Counterfeit Pill SeizureRead the Press Release
PROVIDENCE – A Cumberland man who admitted to possessing approximately 665,728 methamphetamine-laced counterfeit Adderall® pills, the largest known seizure of its kind in the country, was sentenced today to ten years in federal prison, announced United States Attorney Zachary A. Cunha.
Dylan Rodas, 27, has been detained since his arrest on March 28, 2022, as the result of an expansive Project Safe Neighborhoods Rhode Island and DEA Drug Task Force investigation into the trafficking of methamphetamine in Rhode Island. Rodas was arrested for delivery of methamphetamine to a confidential source which had occurred earlier in the month.
At the time of his arrest, Rodas immediately provided DEA agents with information about his drug trafficking activities, including the location where he packaged and stored narcotics and that he was in possession of a number of firearms, assorted ammunition and other illegal substance. Upon searching this location, agents seized approximately 665,728 methamphetamine-laced counterfeit Adderall® pills, weighing a total of approximately 660 pounds; approximately eleven kilograms of methamphetamine powder; fake Oxycodone fentanyl-laced pills; two motorized pill presses; 250 grams of cocaine; $15,000 in cash; and seven handguns, including two “ghost guns. This is believed to be the largest seizure of counterfeit Adderall pills and among the largest single methamphetamine seizures by DEA’s New England Field Division.
Rodas pleaded guilty on September 29, 2022, to possession with intent to distribute 500 grams or more of methamphetamine. He was sentenced today by U.S. District Court Chief Judge John J. McConnell, Jr., to 120 months in federal prison to be followed by five years of federal supervised release and to pay a $5,000 fine.
The case was prosecuted by Assistant United States Attorney Stacey A. Erickson.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The Rhode Island DEA Drug Task Force is comprised of personnel from the DEA; Rhode Island State Police; the East Providence, Cranston, Coventry, Newport, North Kingstown, Pawtucket, Providence, South Kingstown, Warwick, West Warwick, and Woonsocket and Amtrak Police Departments; and Rhode Island Attorney General’s Office Bureau of Criminal Identification and Investigation.
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Cumberland County Man Sentenced to 10 Years in Prison for Receiving Child PornographyRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Anthony Lauro, age 35, of Mechanicsburg, Pennsylvania, was sentenced to 10 years’ imprisonment by United States District Court Judge Christopher C. Conner for receiving child pornography. Judge Conner also ordered Lauro to pay $24,000 in restitution to victims of his offenses, and to serve 10 years on supervised release following his prison sentence.
According to U.S. Attorney Gerard M. Karam, Lauro pleaded guilty to receiving images and videos of child pornography that were sent to him by another Cumberland County resident named Ryan Banks, who created the illicit images with a 14-year-old boy in West Virginia in September 2020 when Banks was 36. Banks is currently serving a 17 ½ to 35-year prison sentence in West Virginia for his offenses. Lauro was found to have been in contact with both Banks and the victim at the time the victim was being sexually exploited. As part of the federal investigation, agents found Lauro in possession of more than 1,000 images and videos depicting the sexual exploitation of other minors.
The case was investigated by Homeland Security Investigations with assistance from the Pennsylvania Office of Attorney General, the Mechanicsburg Police Department, and the Monongalia County Sheriff’s Office in West Virginia. Assistant United States Attorney Christian T. Haugsby prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc.
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Criminal Organization Leader to Serve 25 Years in Federal Prison Once Current 10-Year Sentence EndsRead the Press Release
SAN ANTONIO – A Mexican national was sentenced Wednesday in federal court in San Antonio to 25 years in prison for his involvement in a criminal organization.
According to court documents, Jose Miguel Sandoval-Pineda aka “Primo,” aka “Chavalon,” 22, of Michoacan, Mexico, was the leader, organizer and recruiter for a criminal organization heavily involved in human smuggling, firearms trafficking and narcotics trafficking in the San Antonio area in 2019 and early 2020. Sandoval-Pineda and his organization are also tied to numerous shootings and arsons, including two homicides, mostly in the San Antonio area. Sandoval-Pineda was arrested on Jan. 17, 2020 in West Columbia, Texas and is currently serving a 10-year federal sentence for the illegal possession of a machine gun. On Nov. 4, 2021, Sandoval-Pineda pleaded guilty to four additional counts: conspiracy to transport illegal aliens; conspiracy to commit money laundering; conspiracy to commit arson; and use of fire or explosives to commit a federal felony.
On Wednesday, U.S. District Judge Xavier Rodriguez sentenced Sandoval-Pineda to 10 years for one count of conspiracy to transport illegal aliens; 15 years for one count of conspiracy to commit money laundering; and 15 years for one count of conspiracy to commit arson, which will run concurrent with each other. Judge Rodriguez also sentenced Sandoval-Pineda to a consecutive 10 years in prison for one count of the use of fire or explosives to commit a federal felony. Sandoval-Pineda will serve his 25-year federal prison sentence at the conclusion of his current 10-year sentence.
“This defendant, who was already serving 10 years in federal prison, will now remain locked up for more than two more long decades,” said U.S. Attorney Jaime Esparza of the Western District of Texas. “That is thanks to the dedication of our skilled prosecutors and our law enforcement partners at the local and federal levels. Without them, this criminal organization would likely still be out there terrorizing our communities and putting innocent lives at risk.”
“Yesterday’s sentence is an example of Homeland Security Investigation’s commitment to seeking justice on individuals responsible for violent crimes and wreaking havoc in our neighborhoods as this defendant did,” said Acting Special Agent in Charge Craig Larrabee of the HSI San Antonio Division. “The successful outcome of this case is a direct result of the steadfast efforts of HSI and our law enforcement partners in combating violent crime, human smuggling and firearms trafficking.”
“As this case demonstrates, ATF is uniquely positioned to investigate and bring to justice those that use gun violence and fire to hurt and intimidate others,” said Special Agent in Charge Fred J. Milanowski of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Houston Field Division. “We will continue to work with our law enforcement partners to investigate and hold accountable those who commit violent crimes in our community.”
Of the 11 defendants in this case, six have been sentenced. On Aug. 26, 2021, co-defendant Jose Victor Calleja-Velasquez aka “Kory,” 32, of Culiacan, Sinaloa, Mexico was sentenced to 240 months for one count of illegal alien in possession of a firearm and one count of possession with intent to distribute methamphetamine. A second co-defendant Jorge Rodriguez, 27, of Austin was sentenced on Nov. 30, 2021, to concurrent sentences of 27 months for one count of conspiracy to harbor illegal aliens and one count of conspiracy to commit money laundering. On Oct. 19, 2022, a third co-defendant Samuel Lee Jones, 33, of San Antonio was sentenced to time already served with three years of supervised release for one count of illegal possession of a machine gun. A fourth co-defendant, Emmanuel Valdovinos aka “Manny,” 22, of San Antonio was sentenced on Dec. 5, 2022 to concurrent sentences of 78 months for one count of conspiracy to commit arson and one count of felon in possession of a firearm. On Dec. 14, 2022, Jose Efrain Ovalle-Alvarado, 24, of San Antonio was sentenced to 33 months in prison for one count of illegal possession of a machine gun.
Four defendants are in federal custody as they await their sentencing hearings: Eduardo Angel Viera aka “Lalo,” 26, of San Antonio; Javier Duenas aka “Puppet,” 22, of San Antonio; Jahannatan Pachecano Andrade, 23, of San Antonio; and Daniel Boanerges Orellana-Cano, 23, of La Ceiba, Atlantida, Honduras. The eleventh defendant, Jose Carlos Martinez, 22, of San Antonio is pending trial.
The ATF, HSI and San Antonio Police Department investigated the case.
Assistant U.S. Attorney Brian Nowinski prosecuted the case.
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Convicted Sex Offender Sentenced to 46 months for Illegal Firearm PossessionRead the Press Release
BIRMINGHAM, Ala. – A federal judge today sentenced a convicted felon for illegal firearm possession, announced U.S. Attorney Prim F. Escalona and Bureau of Alcohol, Tobacco, Firearms, and Explosives Special Agent in Charge Marcus Watson.
U.S. District Court Judge Liles C. Burke sentenced Edward Olin Jones, 66, of Hanceville to 46 months in prison followed by three years of supervised release. Jones pleaded guilty to the charge of being a felon in possession of a firearm in November 2022.
According to the plea agreement, on March 16, 2022, Alabama Probation & Parole officers conducted a home visit at the residence of Jones located in Hanceville, Alabama. Jones was on state felony probation, and as conditions of his probation he had to submit to searches by probation officers and was prohibited from possessing firearms. The probation officers recovered a Smith & Wesson .38 Special revolver, a Röhm .22 caliber revolver, a Winchester 12-gauge shotgun, a Weatherby .300 Weatherby Magnum rifle, a Remington .300 Winchester Magnum rifle, a Remington .22 caliber rifle, and 907 rounds of ammunition from Jones’ home.
Prior to his arrest in this case, Jones had been convicted of Sodomy, First Degree, and Sex Abuse, First Degree, in the Circuit Court of Jefferson County, Alabama.
ATF investigated the case along with the Alabama Probation and Parole Office. Assistant U.S. Attorney Daniel S. McBrayer prosecuted the case.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
Convicted Felon Sentenced to 18 Years in Prison on Drug ChargesRead the Press Release
BIRMINGHAM, Ala. – A federal judge today sentenced an Anniston man and convicted felon for distribution of methamphetamine, announced U.S. Attorney Prim F. Escalona, Bureau of Alcohol, Tobacco, Firearms, and Explosives Special Agent in Charge Marcus Watson and Drug Enforcement Administration Special Agent in Charge Brad L. Byerley.
U.S. District Court Judge R. David Proctor sentenced Camerin Neshun Thomas aka “Killer Cam,” 29, to 18 years in prison. Thomas pleaded guilty to two counts of distribution of methamphetamine in November 2022. Court documents showed that Thomas was also previously convicted in Calhoun County Circuit Court of Possession of Controlled Substances with Intent to Distribute.
According to the plea agreement, in June 2022, the 7th Judicial Circuit Major Crimes Unit Investigator and a Bureau of Alcohol, Tobacco, and Firearms Task Force officer coordinated two controlled purchases of methamphetamine from Thomas. On June 1, 2022, Thomas sold 68.45 grams of pure methamphetamine from a residence on McCoy Avenue in Anniston. On June 21, 2022, Thomas sold a total of four ounces of pure methamphetamine from two separate locations in Anniston.
This investigation is an operation of the Organized Crime Drug Enforcement Task Forces (OCDETF) Operation “Lengua Doble.” OCDETF is an independent component of the U.S. Department of Justice. Established in 1982, OCDETF is the centerpiece of the Attorney General’s strategy to combat transnational-organized-crime and to reduce the availability of illicit narcotics in the nation by using a prosecutor-led, multi-agency approach to enforcement. OCDETF leverages the resources and expertise of its partners in concentrated, coordinated, long-term enterprise investigations of transnational organized crime, money laundering, and major drug trafficking networks.
ATF and DEA investigated the case along with the 7th Judicial Circuit Major Crimes Unit. Assistant U.S. Attorney Allison Garnett prosecuted the case.
Concord Man Sentenced to 78 Months for Child Sexual Exploitation CrimeRead the Press Release
CONCORD – Marc Pulsifer, 45, of Concord, was sentenced to 78 months in prison for the federal charge of transportation of child pornography, United States Attorney Jane E. Young announced today.
According to court documents and statements made in court, law enforcement officers learned that Google had detected potential child exploitation materials on Google Photos accounts with an IP address that resolved to Concord, New Hampshire, at various times in 2020. Through their investigation, officers determined that Pulsifer had uploaded child sexual abuse images and child erotica images to Google Photos from his apartment in Concord. On June 3, 2021, law enforcement executed a search warrant at the defendant’s apartment where they discovered child sexual abuse images actively displayed on various electronic media, including two large-screen televisions. Based on the forensic review of electronic media seized from the defendant’s residence, investigators confirmed that the defendant possessed thousands of child sexual abuse images and videos, which he organized in designated folders with descriptive names and stored across multiple devices. The defendant maintained multiple backup digital copies of his child sexual abuse images and child erotic collection, and he used cloud storage services to store and stream these images on his televisions and other electronic media.
Pulsifer previously pleaded guilty on October 5, 2022. In addition to the prison sentence, Pulsifer must spend five years on supervised release, pay $9,000 in restitution.
“Child sexual abuse image crimes exploit innocent children and cause immeasurable harm thus warranting significant federal prison time,” said U.S. Attorney Young. “In order to protect children, we work closely with our law enforcement partners to identify and prosecute those who commit crimes involving child sexual abuse images in the Granite State.”
This matter was investigated by the Concord Police Department, with assistance from U.S. Homeland Security Investigations. The case was prosecuted by Assistant U.S. Attorney Cam Le.
In February 2006, the Department of Justice introduced Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States 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.
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Columbus man sentenced to three years in prison, ordered to repay money received through unclaimed funds fraud schemeRead the Press Release
COLUMBUS, Ohio – Marcus C. Beatty, 55, of Columbus, has been sentenced to three years in federal prison and repay $486,408.55 in unclaimed funds he stole from the State of Ohio, who was holding the funds in trust for the rightful owners.
Court documents outline the significant fraud scheme Beatty ran from at least June 2011 through at least March 2018 to steal from the Ohio Department of Commerce Division of Unclaimed Funds. In Ohio, as in many other states, when funds held by a financial institution are inactive for a certain length of time, the funds legally become “unclaimed funds” and are turned over to the state. The Division of Unclaimed Funds returns the money to the rightful owners who claim them.
For nearly eight years, Beatty repeatedly filed fraudulent claims for unclaimed funds through an intricate process of identifying Ohio businesses whose registrations had been cancelled, using fraudulent paperwork to reinstate the businesses with the Ohio Secretary of State, changing the names of these companies to the names of companies for which the Division of Unclaimed Funds held money in trust, then filing then fraudulent claims with the Division to obtain the unclaimed funds.
Beatty fraudulently obtained unclaimed funds held in trust for five Ohio companies. He also filed several false claims with the unclaimed-funds agencies in Alabama, Nebraska, New Jersey, and Pennsylvania.
Beatty pleaded guilty in October 2022 to one count of mail fraud. In 2006, Beatty had been sentenced in federal court to 33 months in prison in a separate fraud scheme.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio, J. William Rivers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; the U.S. Postal Inspection Service; and Sherry Maxfield, Director of the Ohio Department of Commerce announced the sentence imposed February 22, 2023 by U.S. District Judge Michael H. Watson. Assistant United States Attorney Peter Glenn-Applegate is representing the United States in this case.
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Cincinnati man arrested with high-powered firearm while on bond for gun crimes sentenced to 54 months in prisonRead the Press Release
CINCINNATI – A Cincinnati man was sentenced in U.S. District Court to 54 months in prison for illegally possessing a high-powered, high-capacity pistol with a high-capacity magazine while he was on bond after serving two years in state prison for gun crimes.
Hamilton County Sheriff’s deputies arrested Nahya Wimpye, 23, on Christmas Day 2020. He was a passenger in a car pulled over for a brake light violation near Lockland. Officers found a Century Arms, Micro Draco, 7.62x39 millimeter semi-automatic pistol loaded with 18 rounds of 7.62x39 millimeter ammunition in the car.
“The Hamilton County Coroner’s Office Crime Lab found the defendant's DNA on the firearm, which is essentially the pistol equivalent of an AK-47,” said Kenneth L. Parker, United States Attorney for the Southern District of Ohio. “Reducing violent crime effectively sometimes means punishing those who demonstrate that they are repeatedly a threat to community safety.”
Court documents indicate that at the time of the Christmas Day arrest, Wimpye was on post-release control after serving two years in state custody for illegally possessing a firearm. While awaiting a hearing on the violations of his post-release control, he was found yet again with another firearm in February 2021. While on bond, he was arrested in Tennessee on felony charges.
A federal grand jury indicted Wimpye in October 2021 on one count of possession of a firearm by a prohibited person. Wimpye pleaded guilty to the indictment in September 2022.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; Daryl S. McCormick, Special Agent in Charge, U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF); Hamilton County Sheriff Charmaine McGuffey and Lockland Police Chief Chris Bundren announced the sentence imposed on February 22, 2023 by U.S. District Court Judge Douglas R. Cole. Assistant United States Attorney Timothy D. Oakley is representing the United States in this case.
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Cherokee, N.C. Man Is Sentenced to 15 Years for Sexual Contact with A MinorRead the Press Release
ASHEVILE, N.C. –David Green Edwards, 32, of Cherokee, N.C. was sentenced to 15 years in prison followed by a lifetime of supervised release for two counts of sexual contact with a minor occurring in 2014 in Indian Country, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Michael C. Scherck, Acting Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Chief Carla Neadeau of the Cherokee Indian Police Department join U.S. Attorney King in making today’s announcement.
According to filed court documents, in 2019, the child victim disclosed the sexual abuse dating back to 2014, when the victim would have been approximately five years old. Both the child and Edwards are enrolled members of the Eastern Band of Cherokee Indians. According to information filed with the court, the child victim disclosed that, on at least two different instances, Edwards touched inappropriately the victim’s private area with his hand and genitalia. Information presented in court showed that Edwards was interviewed multiple times by law enforcement and denied sexually abusing the child, however he did admit that he wished the victim was closer to his age.
Edwards is currently in federal custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility. When released he will be required to register as a sex offender.
In making today’s announcement U.S. Attorney King thanked the Federal Bureau of Investigation and the Cherokee Indian Police Department, for their investigation of the case and the North Carolina State Bureau of Investigation for their assistance.
Assistant U.S. Attorney John Pritchard of the U.S. Attorney’s Office in Asheville prosecuted the case.
Charleston Man and Woman Plead Guilty to Fentanyl CrimeRead the Press Release
CHARLESTON, W.Va. – Kenneth Desaun Hayway, 38, and Hannah Elizabeth Barbee, 30, both of Charleston, pleaded guilty today to conspiracy to distribute 40 grams or more of a mixture containing a detectable amount of fentanyl.
According to court documents and statements made in court, Hayway sold fentanyl to a confidential informant asking for heroin on August 15, 2022, and August 19, 2022, in Charleston. Hayway further admitted to organizing the sale of fentanyl with Barbee and co-defendant Khalif Marquee Coleman to a confidential informant seeking heroin on August 19, 2022, at Barbee’s Chesterfield Avenue residence in Charleston.
Barbee admitted to selling fentanyl to a confidential informant seeking heroin on six occasions between August 5, 2022, and September 27, 2022, at her Chesterfield Avenue residence. On September 28, 2022, law enforcement officers executed a search warrant at Barbee’s residence and found mixtures containing fentanyl totaling 55.97 grams, scales, drug packaging materials, and $5,926. Some of the cash recovered during the search was prerecorded buy money from the sales to the confidential informants.
Hayway and Barbee are scheduled to be sentenced on June 15, 2023, and face a mandatory minimum of five years and up to 40 years in prison, four years of supervised release, and a $5 million fine.
Coleman, 35, of Charleston, pleaded guilty to conspiracy to distribute 40 grams or more of a mixture containing a detectable amount of fentanyl on February 22, 2022. Coleman is scheduled to be sentenced on June 8, 2023, and faces a mandatory minimum of five years and up to 40 years in prison, four years of supervised release, and a $5 million fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI) and the Metropolitan Drug Enforcement Network Team (MDENT), and the assistance provided by the Drug Enforcement Administration (DEA) Mid-Atlantic Laboratory.
United States District Judge Irene C. Berger presided over the hearing. Assistant United States Attorney Julie M. White is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:22-cr-198.
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Castleton Man Sentenced to over 3 Years for String of Three Bank RobberiesRead the Press Release
INDIANAPOLIS- Richard Gammon, 26, of Indianapolis, Indiana, was sentenced to 46 months in federal prison after pleading guilty to committing three bank robberies.
According to court documents, on December 17, 2020, Gammon entered a Fifth Third Bank on East 82nd Street in Indianapolis and approached the teller. Gammon showed the teller a cellphone with text on the screen that displayed words to the effect of “give me all the 100s and 50s in your drawer. No sudden moves. No alarms and no one will get hurt.” The teller complied and gave Gammon approximately $1,000 from the drawer.
On January 19, 2021, Gammon robbed the Regions Bank on 82nd Street in Indianapolis. Once again, Gammon showed the teller a cellphone with text on the screen that displayed words to the effect of “Give me all the money in the top drawer. Don’t trip any alarms or signal or message anyone.” The teller complied and gave Gammon $1,360 from the drawer.
Indianapolis Metropolitan Police Department investigators determined the two robberies were likely committed by the same offender. Police later received two Crime-Stoppers tips identifying Gammon as the robbery suspect and began an investigation, which was joined by the FBI.
On the morning of April 11, 2021, Gammon entered the PNC Bank located on 96th street in Fishers, Indiana. Gammon asked the teller about opening an account, and then showed them his phone which displayed a message to the effect of “Give me 5000 dollars. All big bills. No alarm. No button.” The teller complied and gave Gammon $760.
Investigators were able to locate Gammon soon after the PNC Bank robbery, and followed him to his Castleton apartment building, where he was taken into custody. Investigators executed a search warrant at Gammons’ apartment and recovered some of the bills he stole that morning.
“Bank robbery is a very serious crime that carries very serious consequences,” said Zachary A. Myers, United States Attorney for the Southern District of Indiana. “The sentence imposed today demonstrates the commitment of federal and local law enforcement agencies to protect the public from repeat criminals like this defendant. I am grateful to the FBI, IMPD, and Fishers Police Department for their persistence in identifying this serial robber and holding him accountable.”
“This sentence is the culmination of the investigative collaboration between agencies to ensure that this violent individual was held fully accountable for his actions,” said FBI Indianapolis Special Agent in Charge Herbert J. Stapleton. “It should send a clear message that robbing financial institutions in the state of Indiana will have one final outcome - a long sentence in federal prison.”
IMPD and FBI investigated this case with valuable assistance provided by the Fishers Police Department. The sentence was imposed by Chief U.S. District Court Judge, Tanya Walton Pratt. Judge Pratt also ordered that Gammon be supervised by the U.S. Probation Office for 3 years following his release from federal prison. Gammon must also pay restitution of $1,000 to Fifth Third Bank and $1,360 to Regions Bank.
U.S. Attorney Myers thanked Assistant United States Attorneys Peter A. Blackett, who prosecuted this case.
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Busby man admits strangling womanRead the Press Release
BILLINGS — A Busby man today admitted to strangling a woman while both were in a vehicle on the Northern Cheyenne Indian Reservation, U.S. Attorney Jesse Laslovich said.
Tysawn Dantae Pine, 24, pleaded guilty to an indictment charging him with strangulation. Pine faces a maximum of 10 years in prison, a $250,000 fine and three years of supervised release.
U.S. Magistrate Judge Timothy J. Cavan presided. A sentencing date will be set before U.S. District Judge Susan P. Watters. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Pine was detained pending further proceedings.
The government alleged in court documents that Pine and the victim, identified as Jane Doe, had been in a dating relationship. On April 9, 2022, Jane Doe was asleep when she heard knocking. Pine had left the evening before and had been drinking and using methamphetamine. Pine forced himself into the house and then told Jane Doe they were going to his grandmother’s house. They got into a car and Jane Doe started to drive. Pine refused to get out of the car when they arrived at his grandmother’s house. The two argued inside the vehicle, and Pine began assaulting and strangling Jane Doe. Later that day, Jane Doe was examined for injuries at the emergency room.
The U.S. Attorney’s Office is prosecuting the case, which was investigated by the FBI and Bureau of Indian Affairs.
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Bulk Fentanyl Trafficker Is Convicted of Drug and Gun ChargesRead the Press Release
STATESVILLE, N.C. – A federal jury in Statesville returned a guilty verdict today against Jermaine Douglas Grandy for trafficking fentanyl and illegal possession of firearms, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Grandy, 41, of Lenoir, N.C., was convicted of conspiracy to distribute and to possess with intent to distribute fentanyl, possession with intent to distribute fentanyl, possession of a firearm in furtherance of drug trafficking crime, and possession of a firearm by a convicted felon.
Bennie Mims, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, Robert Schurmeier, Director of the North Carolina State Bureau of Investigation (SBI), and Sheriff Alan C. Jones of the Caldwell County Sheriff’s Office join U.S. Attorney King in making today’s announcement.
According to filed court documents, evidence presented at trial and witness testimony, between December 2020 and February 2021, Grandy conspired with others to distribute and to possess with intent to distribute fentanyl in Caldwell County and surrounding areas. Trial evidence established that Grandy obtained the drugs from a supply source in Arizona, and frequently made trips there to purchase fentanyl pills in bulk quantities. The evidence further established that on February 14, 2021, as Grandy was returning to North Carolina from a trip to Arizona, law enforcement conducted a traffic stop of Grandy’s vehicle in Granite Falls, N.C. Upon searching the vehicle, law enforcement located inside the vehicle three loaded 9mm pistols, and approximately 34,221 pills wrapped in fourteen bundles concealed in the air vent under the hood of the car. Later the same day, law enforcement executed a search warrant at a residence associated with Grandy, from which they seized a money counter, two digital scales, and other items consistent with the packaging and distribution of narcotics. Law enforcement also seized 29 illegal firearms, including semi-automatic rifles and handguns, ammunition, and approximately 79 magazines.
Grandy is currently in federal custody. The drug conspiracy and the possession with intent to distribute charges each carry a minimum penalty of 10 years and a maximum penalty of life in prison, the possession of a firearm in furtherance of a drug trafficking crime carries a maximum penalty of five years to be served consecutively with any other term imposed, and the possession of a firearm by a felon charge carries a maximum sentence of 10 years in prison. A sentencing date for Grandy has not been set.
In making today’s announcement, U.S. Attorney King commended the ATF, the SBI, and the Caldwell County Sheriff’s Office for their investigation of the case and thanked the Catawba County Sheriff’s Office, the Hickory Police Department, and the Drug Enforcement Administration for their assistance.
Assistant U.S. Attorney Christopher Hess of the U.S. Attorney’s Office in Asheville is prosecuting the case.
Brunswick County Man Sentenced to 60 Years in Prison for Child Pornography ChargesRead the Press Release
WILMINGTON, N.C. – A Brunswick County man was sentenced today to 720 months in prison, followed by five years of supervised release for possessing and trading child pornography. The prison sentence imposed is the statutory maximum allowed for the crimes. Craig Connors Schenck, 39, of Saint James, North Carolina pled guilty on March 8, 2022 to Receipt of Child Pornography, Distribution of Child Pornography and Possession of Child Pornography. Schenk was also ordered to pay $105,000 in restitution and was ordered to pay a special assessment of $15,000.
According to court documents and other information presented in court, Craig Connors Schenck, 39 was investigated by the North Carolina State Bureau of Investigation (SBI) after Google notified the National Center for Missing and Exploited Children a user had uploaded images of child pornography. The email address used by the individual contained Schenck’s first initial and last name. The IP address associated with the uploaded illegal material was being leased to Schenck’s parents with whom Schenck lived. The cybertip was classified as a priority because it was believed Schenck may have been employed in a capacity which gave him access to children.
The SBI executed a search warrant at Schenck’s residence the same day the cybertip was received. Schenck admitted to law enforcement that he was given a thumb drive in 2007 that had child pornography on it. He admitted to being a part of online platforms where child pornography was traded. Schenck also admitted that for some time he had been employed with various companies who cared for cognitively impaired children. Schenck’s digital devices were seized and analyzed by the SBI.
During the forensic analysis of Schenck’s digital devices nearly 1,500 images and over 600 videos that depicted child sexual abuse material were discovered. In addition to images, agents located a number of chats in various social media platforms, wherein Scheck discussed the sexual abuse of children, traded child pornography images and described graphic sexual fantasies. Agents also found child pornography images of a child that, in chats with other individuals online, Schenck admitted to producing. The child was identified as a child with whom Schenck had worked in the course of his employment.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after the sentencing was concluded. Chief U.S. District Judge Richard E. Myers II presided over the sentencing. North Carolina State Bureau of Investigation investigated the case and Assistant U.S. Attorney Charity Wilson prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 7:21-CR-00012-M.
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Bronx Man Guilty of Fentanyl and Cocaine Trafficking OffensesRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, today announced that a federal jury in Hartford has found LEONARDO HECTOR ROSADO, 52, of the Bronx, New York, guilty of fentanyl and cocaine distribution offenses.
The trial before U.S. District Judge Alvin W. Thompson began on February17 and the jury returned verdicts of guilty on all counts of a three-count superseding indictment this morning.
According to court documents and statements made in court, in April 2021, members of the FBI’s Bridgeport Safe Streets Task Force and Bridgeport Police Department coordinated the acquisition of a kilogram of heroin from Rosado. On April 13, 2021, Rosado drove from the Bronx to a meeting location in Bridgeport where he provided a cooperating witness with nearly a kilogram of a substance containing fentanyl, heroin and cocaine, and another small bag containing more than four grams of fentanyl. Investigators arranged another narcotics transaction and, on May 16, 2021, arrested Rosado after he drove to a location in Bridgeport with nearly three kilograms of a substance containing fentanyl, heroin and cocaine, and an additional 983 grams of cocaine.
The jury found Rosado guilty of two counts of possession with intent to distribute and distribution of 400 grams or more of fentanyl, and one count of possession with intent to distribute and distribution of 500 grams or more of cocaine. Judge Thompson scheduled sentencing for May 18, at which time Rosado faces a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of life.
Rosado has been detained since his arrest.
This matter has been investigated by the FBI’s Bridgeport Safe Streets Task Force and the Bridgeport Police Department. The case is being prosecuted by Assistant U.S. Attorneys Tara E. Levens and Daniel E. Cummings.
Beckley Man Pleads Guilty to Federal Drug CrimeRead the Press Release
BECKLEY, W.Va. – Kishaun Andre Jones, 23, of Beckley, pleaded guilty today to distribution of methamphetamine.
According to court documents and statements made in court, on December 20, 2021, Jones sold a substance containing methamphetamine to a confidential informant near South Kanawha Street in Beckley. Jones admitted to the transaction and further admitted to selling methamphetamine to the confidential informant on two other occasions in Raleigh County.
On February 23, 2022, law enforcement officers executed a search warrant at Jones’ Beckley residence and found quantities of methamphetamine, fentanyl, and heroin as well as three firearms and $6,445. Jones admitted that intended to distribute the controlled substances.
Jones is scheduled to be sentenced on June 9, 2023, and faces a maximum penalty of 20 years in prison, three years of supervised release, and a $1 million fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI), and the Beckley/Raleigh County Drug and Violent Crime Unit.
United States District Judge Frank W. Volk presided over the hearing. Assistant United States Attorney Timothy D. Boggess is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 5:22-cr-64.
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Barnstead Woman Pleads Guilty to Stealing over $130,000 from Barnstead and Hampton School DistrictsRead the Press Release
CONCORD – Amy Burley, 47, of Barnstead, pleaded guilty in federal court today to embezzling more than $130,000 from both the Barnstead and Hampton School Districts, United States Attorney Jane E. Young announced today.
According to court documents and statements made in court, Burley was employed as a bookkeeper for Barnstead School District and then Hampton School District. In her role, Burley processed payroll and handled the payment of invoices.
Burley used her access at Barnstead School District to alter her payroll information, make student loan payments and payments to personal creditors, and pay for an Amazon account charged to Barnstead but controlled by Burley, totaling $110,295.26. Following her termination from Barnstead, Burley was hired as a bookkeeper at Hampton School District, where she used her position to use district funds to pay student loans and credit cards belonging to her or her family members, totaling $20,966.52.
Burley is scheduled to be sentenced on June 1, 2023.
The case was investigated by the Federal Bureau of Investigation, the Department of Education Office of the Inspector General, and the Barnstead Police Department. The case is being prosecuted by Assistant U.S. Attorney John J. Kennedy.
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Alleged ‘SIM Swapper’ Charged with Hacking into Instagram Influencers’ Accounts to Get Money and Sexually Explicit Video ChatsRead the Press Release
LOS ANGELES – A Downtown Los Angeles man was charged today in a six-count federal grand jury indictment for allegedly defrauding female social media influencers, including by engaging in “SIM swapping” to hijack their Instagram accounts and obtain money from them and engage in sexually explicit video chats with him.
Amir Hossein Golshan, 24, is charged with two counts of wire fraud, one count of unauthorized access to a protected computer to obtain information, one count of accessing a computer to defraud and obtain value, one count of aggravated identity theft, and one count of threatening to damage a protected computer.
Golshan has been in federal custody since his arrest on a criminal complaint in this case on February 2. His arraignment is scheduled for Friday morning in United States District Court.
A Subscriber Identity Module (SIM) is a small, portable memory chip card that stores a cellphone user’s information and is used to authenticate cellphone subscribers.
“SIM swapping” is the process of fraudulently inducing a carrier to reassign a cellphone number from the legitimate subscriber or user’s SIM card to a SIM card controlled by another without the legitimate subscriber or user’s authorization.
According to the indictment and other court documents, from April 2019 to February 2023, Golshan schemed to defraud female social media influencers, models, and their friends on social media. Golshan allegedly accomplished his scheme by targeting social media influencers and causing the victims’ cell phone numbers to be SIM swapped. He allegedly did this by deceiving the victims’ phone carriers into transporting the victims’ cellphone number to a Golshan-controlled cellphone. Golshan then reset the password and codes for the victims’ social media accounts and caused them to be sent to a device he controlled, the indictment alleges.
Golshan then allegedly logged into the victims’ social media accounts, impersonated them to their online friends, and requested that the victims’ online friends send him money. Other times, Golshan allegedly extorted the victims for money and sexually explicit chats to return the victims’ social media accounts.
For example, in December 2021, a Los Angeles-based model and social media influencer identified in court documents as “Victim 1” received a direct message on Instagram from the account owned by one of her friends, stating, “Can you do me a favor? What’s your number?” Victim 1 provided her phone number to the person whom she believed was her friend.
Four hours later, Victim 1 noticed that her phone was no longer connecting to her cellphone network. She then received an email from her cellphone carrier stating that her account had been changed from her personal iPhone to a different iPhone that she did not recognize.
It took Victim 1 approximately two hours to regain control of her cellphone and she was unable to log into her Instagram account for one day because her password had been changed. During that time, Golshan allegedly hacked into Victim 1’s Instagram account, posed as Victim 1 and requested cellphone numbers and money from Victim’s friends, collecting approximately $15,000 in illicit gains in the process.
In another incident, Golshan allegedly SIM swapped another victim – identified in court papers as “Victim 3.” He allegedly took control of her Instagram account, changed its password, and demanded $5,000 from her. Golshan allegedly later told the victim that he would return her Instagram account to her if she initiated a video call and stripped for him.
Other times, Golshan allegedly engaged in other fraudulent schemes on social media. For example, Golshan lied to other Instagram users claiming that he could provide verified user badges on Instagram for a fee, the indictment states. Golshan allegedly then charged the victims hundreds of dollars each for verified badges, knowing that he could not provide the verified badges he purported to sell.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
If convicted of all charges, Golshan would face a statutory maximum sentence of 20 years in federal prison for each wire fraud count, up to five years in federal prison for each computer hacking-related count, and a mandatory two-year prison sentence for the aggravated identity theft count.
The FBI is investigating this matter.
Assistant United States Attorney Andrew M. Roach of the Cyber and Intellectual Property Crimes Section is prosecuting this case.
Acting United States Attorney Rivetti Announces Implementation of New Voluntary Self-Disclosure PolicyRead the Press Release
PITTSBURGH - Acting United States Attorney Troy Rivetti announced that the U.S. Attorney’s Office for the Western District of Pennsylvania has implemented the new United States Attorney’s Offices’ Voluntary Self-Disclosure Policy released yesterday. The policy, which is effective immediately, details the circumstances under which a company will be considered to have made a voluntary self-disclosure (VSD) of misconduct to a United States Attorney’s Office (USAO), and provides transparency and predictability to companies and the defense bar concerning the concrete benefits and potential outcomes in cases where companies voluntarily self-disclose misconduct, fully cooperate and timely and appropriately remediate.
The goal of the policy is to standardize how VSDs are defined and credited by USAOs nationwide, and to incentivize companies to maintain effective compliance programs capable of identifying misconduct, to expeditiously and voluntarily disclose and remediate misconduct, and to cooperate fully with the government in corporate criminal investigations. The policy was developed pursuant to the Deputy Attorney General’s September 15, 2022 memorandum, “Further Revisions to Corporate Criminal Enforcement Policies Following Discussions with Corporate Crime Advisory Group” (Monaco Memo), which directed each Department of Justice (DOJ) component that prosecutes corporate crime to review its policies on corporate voluntary self-disclosure and, if there was no formal written policy to incentivize self-disclosure, draft and publicly share such a policy.
Under the new VSD policy, a company is considered to have made a VSD if it becomes aware of misconduct by employees or agents before that misconduct is publicly reported or otherwise known to the DOJ, and discloses all relevant facts known to the company about the misconduct to a USAO in a timely fashion prior to an imminent threat of disclosure or government investigation. A company that voluntarily self-discloses as defined in the policy and fully meets the other requirements of the policy, by—in the absence of any aggravating factor—fully cooperating and timely and appropriately remediating the criminal conduct (including agreeing to pay all disgorgement, forfeiture, and restitution resulting from the misconduct), will receive significant benefits, including that the USAO will typically not seek a guilty plea; may choose not to impose any criminal penalty, and in any event will not impose a criminal penalty that is greater than 50% below the low end of the United States Sentencing Guidelines (USSG) fine range; and will not seek the imposition of an independent compliance monitor if the company demonstrates that it has implemented and tested an effective compliance program.
The policy identifies three aggravating factors that may warrant a USAO seeking a guilty plea even if the other requirements of the VSD policy are met: (1) if the misconduct poses a grave threat to national security, public health, or the environment; (2) if the misconduct is deeply pervasive throughout the company; or (3) if the misconduct involved current executive management of the company. The presence of an aggravating factor does not necessarily mean that a guilty plea will be required; instead, the USAO will assess the relevant facts and circumstances to determine the appropriate resolution. If a guilty plea is ultimately required, the company will still receive the other benefits under the VSD policy, including that the USAO will recommend a criminal penalty of at least a 50% and up to a 75% reduction off the low end of the USSG fine range, and that the USAO will not require the appointment of a monitor if the company has implemented and tested an effective compliance program.
In cases where a company is being jointly prosecuted by a USAO and another DOJ component, or where the misconduct reported by the company falls within the scope of conduct covered by VSD policies administered by other DOJ components, the USAO will coordinate with, or, if necessary, obtain approval from, the DOJ component responsible for the VSD policy specific to the reported misconduct when considering a potential resolution. Consistent with relevant provisions of the Justice Manual and as allowable under alternate VSD policies, the USAO may choose to apply any provision of an alternate VSD policy in addition to, or in place of, any provision of its policy.
Voluntary Self Disclosures should be directed to the United States Attorney’s Office for the Western District of Pennsylvania Acting Criminal Chief Tonya Goodman at 412-644-3500.
The Attorney General’s Advisory Committee (AGAC), under the leadership of United States Attorney for the Southern District of New York Damian Williams, requested that the White Collar Fraud Subcommittee of the AGAC, under the leadership of United States Attorney for the Eastern District of New York Breon Peace, develop policies in response to the Deputy AG’s memo. The policy announced today was prepared by a Corporate Criminal Enforcement Policy Working Group comprised of U.S. Attorneys from geographically diverse districts, including U.S. Attorney Peace, as well as U.S. Attorney for the Eastern District of Virginia Jessica Aber, U.S. Attorney for the District of Connecticut Vanessa Avery, U.S. Attorney for the District of Hawaii Clare Connors, U.S. Attorney for the Eastern District of North Carolina Michael F. Easley, Jr., U.S. Attorney for the Northern District of California Stephanie Hinds, U.S. Attorney for the Western District of Virginia Christopher Kavanaugh, and U.S. Attorney for the District of New Jersey Philip Sellinger. Assistant U.S. Attorney Amanda Riedel, White Collar Crimes Coordinator for the Executive Office for U.S. Attorneys, also participated in the development of the policy.
35-Year-Old Man Sentenced to 24 Months for Attempted Firearms Trafficking into MexicoRead the Press Release
TUCSON, Ariz. – On Wednesday, Luis Carlos Martinez-Chacon, 35, of Chihuahua, Mexico, was sentenced by United States District Judge John C. Hinderaker to 24 months in prison, followed by 12 months of supervised release. Martinez-Chacon pleaded guilty to one count of Smuggling Goods from the United States.
On June 29, 2022, Martinez-Chacon attempted to exit the United States and enter the Republic of Mexico at the DeConcini Port of Entry in Nogales, Arizona. During a search of his vehicle, Customs and Border Protection officers found a 9mm Berretta pistol, a 9mm Glock 19 pistol, an FN57 rifle with a filed off serial number, a .45 caliber Colt M 1911, a Smith and Wesson 629 Classic .44 Magnum, a Magpul magazine (17 round capacity), two Berretta magazines (15 round capacity each), two FN57 magazines (20 round capacity each), two Colt 1911 magazines (seven round capacity each), 960 rounds of .223 Wolf ammunition, 880 rounds of .223 TUL ammunition, and six rounds of .45 caliber ammunition. The items were hidden inside the dashboard and center console of the vehicle. Martinez-Chacon admitted he expected to be paid in exchange for delivering the firearms, magazines, and ammunition to an individual in Mexico.
Homeland Security Investigations conducted the investigation in this case. Assistant United States Attorney Sarah B. Houston, District of Arizona, Tucson, handled the prosecution.
CASE NUMBER: CR-22-01662-TUC-JCH (DTF)
RELEASE NUMBER: 2023-024_Martinez-Chacon# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
26-Year-Old Sentenced to 24 Months for Attempted Firearms Trafficking to MexicoRead the Press Release
TUCSON, Ariz. – Adan Gomez-Lopez, 26, of Nogales, Mexico, was sentenced on Wednesday by United States District Judge John C. Hinderaker to 24 months in prison, followed by 12 months of supervised release. Gomez-Lopez pleaded guilty to one count of Smuggling Goods from the United States.
On July 1, 2022, Gomez-Lopez attempted to exit the United States and enter the Republic of Mexico at the DeConcini Port of Entry in Nogales, Arizona. During a search of the vehicle, Customs and Border Protection officers found 510 rounds of .223 caliber ammunition, 103 rounds of .556 caliber ammunition, 600 rounds of 6.5mm ammunition, 350 rounds of 9mm pistol ammunition, 100 rounds of .30 caliber ammunition, 20 rounds of .308 caliber ammunition, and 50 rounds of 12-gauge shotgun ammunition. The ammunition was concealed within the vehicle’s quarter panels, speaker box, and non-factory compartments. Gomez-Lopez admitted that he expected payment in exchange for delivering the ammunition to an individual in Mexico.
Homeland Security Investigations conducted the investigation in this case. Assistant United States Attorney Brandon M. Bolling, District of Arizona, Tucson, handled the prosecution.
CASE NUMBER: CR-22-01544-TUC-JCH (BGM)
RELEASE NUMBER: 2023-025_Gomez-Lopez# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
22 February 2023
Woman Sentenced to Prison for Straw Purchase of Firearm Used in Fatal Nicholas County ShootingRead the Press Release
CHARLESTON, W.Va. – Melanie Clodfelter, 41, of Summersville, was sentenced today to two years in prison, to be followed by three years of supervised release, for making a false statement in acquisition of a firearm. Clodfelter admitted to purchasing a semi-automatic firearm used to kill one Nicholas County deputy sheriff and seriously injure another in June 2022.
According to court documents and statements made in court, on November 17, 2021, Clodfelter bought a Radical Firearms, model RF-15, multi-caliber rifle in Nicholas County. Clodfelter admitted to lying on the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Federal Firearms Transaction Record Form 4473, by falsely certifying that she was the buyer of the firearm when she knew she was purchasing it for Richie Holcomb.
Clodfelter gave Holcomb the firearm on the day of the purchase. Clodfelter admitted that Holcomb gave her the money to buy the firearm. Clodfelter further admitted that she knew Holcomb was prohibited from possessing a firearm because he had a prior felony conviction.
Federal law prohibits a person with a prior felony conviction from possessing a firearm or ammunition. Holcomb was prohibited from possessing a firearm because of a felony conviction for unlawful wounding in Webster County Circuit Court on July 30, 2014.
Clodfelter was prohibited from possessing a firearm because she was an unlawful user of methamphetamine. Prior to purchasing the firearm for Holcomb, Clodfelter knew that Holcomb was also an unlawful user of methamphetamine.
On June 3, 2022, law enforcement officers responded to a domestic disturbance in the Birch River area and encountered Holcomb and another individual. During the encounter, Holcomb fatally shot Nicholas County Sheriff’s Deputy Thomas Edward Baker III with the semi-automatic rifle purchased and provided by Clodfelter. Corporal Joshua Ellison was wounded in the exchange of gunfire. Holcomb was fatally shot.
Baker’s widow, Jamie D. Baker, addressed the court and described the impact of Clodfelter’s act on her life and the lives of his children, their family and the Nicholas County community. The court stated that Clodfelter’s “reckless act” led to the “loss of the life of a man of valor, courage and dedication.”
“It may have taken only a few seconds for Clodfelter to answer falsely on that ATF form, but the tragic consequences will last a lifetime,” said United States Attorney Will Thompson. “This case is why the statute was enacted. Some people may think that the straw purchase of a firearm is not a big deal, but when you have a dead deputy, a widow, children who will grow up without their father, and another wounded deputy, it’s a pretty significant crime.”
Thompson made the announcement and commended the investigative work of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), which assisted the Nicholas County Sheriff's Office and the West Virginia State Police in response to the shooting of the two deputies.
“The tragic death of Nicholas County Sheriff’s Deputy Thomas Edward Baker III, and the injury of another deputy, is another terrible example of what happens when guns are supplied to those who are prohibited from possessing them,” said Acting ATF Special Agent in Charge Robert Maynard of the Louisville Division. “ATF will continue to focus on those who drive violent crime, which includes those who commit violence using firearms and those that help them obtain firearms illegally. This case should serve as a strong warning to those involved in straw purchasing, there will be consequences to your actions.”
Senior United States District Judge John T. Copenhaver, Jr. imposed the sentence. Assistant United States Attorneys Steve Loew, Negar M. Kordestani and Alex Hamner prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:22-cr-135.
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United States Attorney's Office Announces Implementation of New Voluntary Self-Disclosure PolicyRead the Press Release
NASHVILLE – United States Attorney Henry C. Leventis announced that the U.S. Attorney’s Office for the Middle District of Tennessee has implemented the new United States Attorney’s Offices’ Voluntary Self-Disclosure Policy released earlier today. The policy, which is effective immediately, details the circumstances under which a company will be considered to have made a voluntary self-disclosure (VSD) of misconduct to a United States Attorney’s Office (USAO), and provides transparency and predictability to companies and the defense bar concerning the concrete benefits and potential outcomes in cases where companies voluntarily self-disclose misconduct, fully cooperate and timely and appropriately remediate.
“This policy seeks to standardize how VSDs are defined and credited by USAOs nationwide, to incentivize companies to maintain effective compliance programs capable of identifying misconduct, to expeditiously and voluntarily disclose and remediate misconduct, and to cooperate fully with the government in corporate criminal investigations,” said U. S. Attorney Leventis. The policy was developed pursuant to the Deputy Attorney General’s September 15, 2022 memorandum, “Further Revisions to Corporate Criminal Enforcement Policies Following Discussions with Corporate Crime Advisory Group” (Monaco Memo), which directed each Department of Justice (DOJ) component that prosecutes corporate crime to review its policies on corporate voluntary self-disclosure and, if there was no formal written policy to incentivize self-disclosure, draft and publicly share such a policy.
Under the new VSD policy, a company is considered to have made a VSD if it becomes aware of misconduct by employees or agents before that misconduct is publicly reported or otherwise known to the DOJ, and discloses all relevant facts known to the company about the misconduct to a USAO in a timely fashion prior to an imminent threat of disclosure or government investigation. A company that voluntarily self-discloses as defined in the policy and fully meets the other requirements of the policy, by—in the absence of any aggravating factor—fully cooperating and timely and appropriately remediating the criminal conduct (including agreeing to pay all disgorgement, forfeiture, and restitution resulting from the misconduct), will receive significant benefits, including that the USAO will not seek a guilty plea; may choose not to impose any criminal penalty, and in any event will not impose a criminal penalty that is greater than 50% below the low end of the United States Sentencing Guidelines (USSG) fine range; and will not seek the imposition of an independent compliance monitor if the company demonstrates that it has implemented and tested an effective compliance program.
The policy identifies three aggravating factors that may warrant a USAO seeking a guilty plea even if the other requirements of the VSD policy are met: (1) if the misconduct poses a grave threat to national security, public health, or the environment; (2) if the misconduct is deeply pervasive throughout the company; or (3) if the misconduct involved current executive management of the company. The presence of an aggravating factor does not necessarily mean that a guilty plea will be required; instead, the USAO will assess the relevant facts and circumstances to determine the appropriate resolution. If a guilty plea is ultimately required, the company will still receive the other benefits under the VSD policy, including that the USAO will recommend a criminal penalty of at least a 50% and up to a 75% reduction off the low end of the USSG fine range, and that the USAO will not require the appointment of a monitor if the company has implemented and tested an effective compliance program.
In cases where a company is being jointly prosecuted by a USAO and another DOJ component, or where the misconduct reported by the company falls within the scope of conduct covered by VSD policies administered by other DOJ components, the USAO will coordinate with, or, if necessary, obtain approval from, the DOJ component responsible for the VSD policy specific to the reported misconduct when considering a potential resolution. Consistent with relevant provisions of the Justice Manual and as allowable under alternate VSD policies, the USAO may choose to apply any provision of an alternate VSD policy in addition to, or in place of, any provision of its policy.
The policy announced today was prepared by a Corporate Criminal Enforcement Policy Working Group comprised of U.S. Attorneys from the Attorney General’s Advisory Committee’s White Collar Fraud Subcommittee.
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United States Attorney Trina A. Higgins Announces Implementation of New Voluntary Self-Disclosure PolicyRead the Press Release
SALT LAKE CITY, UT – U.S. Attorney Trina A. Higgins announced that the U.S. Attorney’s Office for the District of Utah has implemented the new United States Attorney’s Offices’ Voluntary Self-Disclosure Policy released earlier today.
The policy, which is effective immediately, details the circumstances under which a company will be considered to have made a voluntary self-disclosure (VSD) of misconduct to a United States Attorney’s Office (USAO), and provides transparency and predictability to companies and the defense bar concerning the concrete benefits and potential outcomes in cases where companies voluntarily self-disclose misconduct, fully cooperate and timely and appropriately remediate.
The goal of the policy is to standardize how VSDs are defined and credited by USAOs nationwide, and to incentivize companies to maintain effective compliance programs capable of identifying misconduct, to expeditiously and voluntarily disclose and remediate misconduct, and to cooperate fully with the government in corporate criminal investigations. The policy was developed pursuant to the Deputy Attorney General’s September 15, 2022 memorandum, “Further Revisions to Corporate Criminal Enforcement Policies Following Discussions with Corporate Crime Advisory Group” (Monaco Memo), which directed each Department of Justice (DOJ) component that prosecutes corporate crime to review its policies on corporate voluntary self-disclosure and, if there was no formal written policy to incentivize self-disclosure, draft and publicly share such a policy.
Under the new VSD policy, a company is considered to have made a VSD if it becomes aware of misconduct by employees or agents before that misconduct is publicly reported or otherwise known to the DOJ, and discloses all relevant facts known to the company about the misconduct to a USAO in a timely fashion prior to an imminent threat of disclosure or government investigation. A company that voluntarily self-discloses as defined in the policy and fully meets the other requirements of the policy, by—in the absence of any aggravating factor—fully cooperating and timely and appropriately remediating the criminal conduct (including agreeing to pay all disgorgement, forfeiture, and restitution resulting from the misconduct), will receive significant benefits, including that the USAO will not seek a guilty plea; may choose not to impose any criminal penalty, and in any event will not impose a criminal penalty that is greater than 50% below the low end of the United States Sentencing Guidelines (USSG) fine range; and will not seek the imposition of an independent compliance monitor if the company demonstrates that it has implemented and tested an effective compliance program.
The policy identifies three aggravating factors that may warrant a USAO seeking a guilty plea even if the other requirements of the VSD policy are met: (1) if the misconduct poses a grave threat to national security, public health, or the environment; (2) if the misconduct is deeply pervasive throughout the company; or (3) if the misconduct involved current executive management of the company. The presence of an aggravating factor does not necessarily mean that a guilty plea will be required; instead, the USAO will assess the relevant facts and circumstances to determine the appropriate resolution. If a guilty plea is ultimately required, the company will still receive the other benefits under the VSD policy, including that the USAO will recommend a criminal penalty of at least a 50% and up to a 75% reduction off the low end of the USSG fine range, and that the USAO will not require the appointment of a monitor if the company has implemented and tested an effective compliance program.
In cases where a company is being jointly prosecuted by a USAO and another DOJ component, or where the misconduct reported by the company falls within the scope of conduct covered by VSD policies administered by other DOJ components, the USAO will coordinate with, or, if necessary, obtain approval from, the DOJ component responsible for the VSD policy specific to the reported misconduct when considering a potential resolution. Consistent with relevant provisions of the Justice Manual and as allowable under alternate VSD policies, the USAO may choose to apply any provision of an alternate VSD policy in addition to, or in place of, any provision of its policy.
United States Attorney Stephanie M. Hinds Announces Implementation of New Voluntary Self-Disclosure PolicyRead the Press Release
United States Attorney Stephanie M. Hinds announced that the U.S. Attorney’s Office for the Northern District of California has implemented the new United States Attorney’s Offices’ Voluntary Self-Disclosure Policy released earlier today. The policy, which is effective immediately, details the circumstances under which a company will be considered to have made a voluntary self-disclosure (VSD) of misconduct to a United States Attorney’s Office (USAO), and provides transparency and predictability to companies and the defense bar concerning the concrete benefits and potential outcomes in cases where companies voluntarily self-disclose misconduct, fully cooperate and timely and appropriately remediate.
The goal of the policy is to standardize how VSDs are defined and credited by USAOs nationwide, and to incentivize companies to maintain effective compliance programs capable of identifying misconduct, to expeditiously and voluntarily disclose and remediate misconduct, and to cooperate fully with the government in corporate criminal investigations. The policy was developed pursuant to the Deputy Attorney General’s September 15, 2022 memorandum, “Further Revisions to Corporate Criminal Enforcement Policies Following Discussions with Corporate Crime Advisory Group” (Monaco Memo), which directed each Department of Justice (DOJ) component that prosecutes corporate crime to review its policies on corporate voluntary self-disclosure and, if there was no formal written policy to incentivize self-disclosure, draft and publicly share such a policy.
Under the new VSD policy, a company is considered to have made a VSD if it becomes aware of misconduct by employees or agents before that misconduct is publicly reported or otherwise known to the DOJ, and discloses all relevant facts known to the company about the misconduct to a USAO in a timely fashion prior to an imminent threat of disclosure or government investigation. A company that voluntarily self-discloses as defined in the policy and fully meets the other requirements of the policy, by—in the absence of any aggravating factor—fully cooperating and timely and appropriately remediating the criminal conduct (including agreeing to pay all disgorgement, forfeiture, and restitution resulting from the misconduct), will receive significant benefits, including that the USAO will not seek a guilty plea; may choose not to impose any criminal penalty, and in any event will not impose a criminal penalty that is greater than 50% below the low end of the United States Sentencing Guidelines (USSG) fine range; and will not seek the imposition of an independent compliance monitor if the company demonstrates that it has implemented and tested an effective compliance program.
The policy identifies three aggravating factors that may warrant a USAO seeking a guilty plea even if the other requirements of the VSD policy are met: (1) if the misconduct poses a grave threat to national security, public health, or the environment; (2) if the misconduct is deeply pervasive throughout the company; or (3) if the misconduct involved current executive management of the company. The presence of an aggravating factor does not necessarily mean that a guilty plea will be required; instead, the USAO will assess the relevant facts and circumstances to determine the appropriate resolution. If a guilty plea is ultimately required, the company will still receive the other benefits under the VSD policy, including that the USAO will recommend a criminal penalty of at least a 50% and up to a 75% reduction off the low end of the USSG fine range, and that the USAO will not require the appointment of a monitor if the company has implemented and tested an effective compliance program.
In cases where a company is being jointly prosecuted by a USAO and another DOJ component, or where the misconduct reported by the company falls within the scope of conduct covered by VSD policies administered by other DOJ components, the USAO will coordinate with, or, if necessary, obtain approval from, the DOJ component responsible for the VSD policy specific to the reported misconduct when considering a potential resolution. Consistent with relevant provisions of the Justice Manual and as allowable under alternate VSD policies, the USAO may choose to apply any provision of an alternate VSD policy in addition to, or in place of, any provision of its policy.
The Attorney General’s Advisory Committee (AGAC), under the leadership of United States Attorney for the Southern District of New York Damian Williams, requested that the White Collar Fraud Subcommittee of the AGAC, under the leadership of United States Attorney for the Eastern District of New York Breon Peace, develop policies in response to the Deputy AG’s memo. The policy announced today was prepared by a Corporate Criminal Enforcement Policy Working Group on which U.S. Attorney Hinds sits. In addition to U.S. Attorney Hinds, the Working Group is comprised of U.S. Attorneys from geographically diverse districts, including U.S. Attorney Peace, U.S. Attorney for the Eastern District of Virginia Jessica Aber, U.S. Attorney for the District of Connecticut Vanessa Avery, U.S. Attorney for the District of Hawaii Clare Connors, U.S. Attorney for the Eastern District of North Carolina Michael F. Easley, Jr., U.S. Attorney for the Western District of Virginia Christopher Kavanaugh, and U.S. Attorney for the District of New Jersey Philip Sellinger. Assistant U.S. Attorney Amanda Riedel, White Collar Crimes Coordinator for the Executive Office for U.S. Attorneys, also participated in the development of the policy.
United States Attorney Erek L. Barron Announces Implementation of New Voluntary Self-Disclosure PolicyRead the Press Release
Baltimore, Maryland - Erek L. Barron, United States Attorney for the District of Maryland announced today that the Maryland U.S. Attorney’s Office has implemented the new United States Attorney’s Offices’ Voluntary Self-Disclosure Policy, released earlier today. The policy, which is effective immediately, details the circumstances under which a company will be considered to have made a voluntary self-disclosure (VSD) of misconduct to a United States Attorney’s Office (USAO), and provides transparency and predictability to companies and the defense bar concerning the concrete benefits and potential outcomes in cases where companies voluntarily self-disclose misconduct, fully cooperate and timely and appropriately remediate.
The goal of the policy is to standardize how VSDs are defined and credited by USAOs nationwide, and to incentivize companies to maintain effective compliance programs capable of identifying misconduct, to expeditiously and voluntarily disclose and remediate misconduct, and to cooperate fully with the government in corporate criminal investigations. The policy was developed pursuant to the Deputy Attorney General’s September 15, 2022 memorandum, “Further Revisions to Corporate Criminal Enforcement Policies Following Discussions with Corporate Crime Advisory Group” (Monaco Memo), which directed each Department of Justice (DOJ) component that prosecutes corporate crime to review its policies on corporate voluntary self-disclosure and, if there was no formal written policy to incentivize self-disclosure, draft and publicly share such a policy.
Under the new VSD policy, a company is considered to have made a VSD if it becomes aware of misconduct by employees or agents before that misconduct is publicly reported or otherwise known to the DOJ, and discloses all relevant facts known to the company about the misconduct to a USAO in a timely fashion prior to an imminent threat of disclosure or government investigation. A company that voluntarily self-discloses as defined in the policy and fully meets the other requirements of the policy, by—in the absence of any aggravating factor—fully cooperating and timely and appropriately remediating the criminal conduct (including agreeing to pay all disgorgement, forfeiture, and restitution resulting from the misconduct), will receive significant benefits, including that the USAO will not seek a guilty plea; may choose not to impose any criminal penalty, and in any event will not impose a criminal penalty that is greater than 50% below the low end of the United States Sentencing Guidelines (USSG) fine range; and will not seek the imposition of an independent compliance monitor if the company demonstrates that it has implemented and tested an effective compliance program.
The policy identifies three aggravating factors that may warrant a USAO seeking a guilty plea even if the other requirements of the VSD policy are met: (1) if the misconduct poses a grave threat to national security, public health, or the environment; (2) if the misconduct is deeply pervasive throughout the company; or (3) if the misconduct involved current executive management of the company. The presence of an aggravating factor does not necessarily mean that a guilty plea will be required; instead, the USAO will assess the relevant facts and circumstances to determine the appropriate resolution. If a guilty plea is ultimately required, the company will still receive the other benefits under the VSD policy, including that the USAO will recommend a criminal penalty of at least a 50% and up to a 75% reduction off the low end of the USSG fine range, and that the USAO will not require the appointment of a monitor if the company has implemented and tested an effective compliance program.
In cases where a company is being jointly prosecuted by a USAO and another DOJ component, or where the misconduct reported by the company falls within the scope of conduct covered by VSD policies administered by other DOJ components, the USAO will coordinate with, or, if necessary, obtain approval from, the DOJ component responsible for the VSD policy specific to the reported misconduct when considering a potential resolution. Consistent with relevant provisions of the Justice Manual and as allowable under alternate VSD policies, the USAO may choose to apply any provision of an alternate VSD policy in addition to, or in place of, any provision of its policy.
The Attorney General’s Advisory Committee (AGAC), under the leadership of United States Attorney for the Southern District of New York Damian Williams, requested that the White Collar Fraud Subcommittee of the AGAC, under the leadership of United States Attorney for the Eastern District of New York Breon Peace, develop policies in response to the Deputy AG’s memo. The policy announced today was prepared by a Corporate Criminal Enforcement Policy Working Group comprised of U.S. Attorneys from geographically diverse districts, including U.S. Attorney Peace, as well as U.S. Attorney for the Eastern District of Virginia Jessica Aber, U.S. Attorney for the District of Connecticut Vanessa Avery, U.S. Attorney for the District of Hawaii Clare Connors, U.S. Attorney for the Eastern District of North Carolina Michael F. Easley, Jr., U.S. Attorney for the Northern District of California Stephanie Hinds, U.S. Attorney for the Western District of Virginia Christopher Kavanaugh, and U.S. Attorney for the District of New Jersey Philip Sellinger. Assistant U.S. Attorney Amanda Riedel, White Collar Crimes Coordinator for the Executive Office for U.S. Attorneys, also participated in the development of the policy.
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.
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United States Attorney Clare E. Connors Announces Implementation of New Voluntary Self-Disclosure PolicyRead the Press Release
HONOLULU – U.S. Attorney Clare E. Connors announced today that the United States Attorney’s Office (USAO) for the District of Hawaii has implemented the new national USAO Voluntary Self-Disclosure Policy released earlier today. The policy, which is effective immediately, details the circumstances under which a company will be considered to have made a voluntary self-disclosure (VSD) of misconduct to a USAO, and provides transparency and predictability to companies and the defense bar concerning the concrete benefits and potential outcomes in cases where companies voluntarily self-disclose misconduct, fully cooperate and timely and appropriately remediate.
The goal of the policy is to standardize how VSDs are defined and credited by USAOs nationwide, and to incentivize companies to maintain effective compliance programs capable of identifying misconduct, to expeditiously and voluntarily disclose and remediate misconduct, and to cooperate fully with the government in corporate criminal investigations. The policy was developed pursuant to the Deputy Attorney General Lisa O. Monaco’s September 15, 2022 memorandum, “Further Revisions to Corporate Criminal Enforcement Policies Following Discussions with Corporate Crime Advisory Group” (Monaco Memo), which directed each Department of Justice (DOJ) component that prosecutes corporate crime to review its policies on corporate voluntary self-disclosure and, if there was no formal written policy to incentivize self-disclosure, draft and publicly share such a policy.
Under the new VSD policy, a company is considered to have made a VSD if it becomes aware of misconduct by employees or agents before that misconduct is publicly reported or otherwise known to the DOJ, and discloses all relevant facts known to the company about the misconduct to a USAO in a timely fashion prior to an imminent threat of disclosure or government investigation. A company that voluntarily self-discloses as defined in the policy and fully meets the other requirements of the policy, by fully cooperating and timely and appropriately remediating the criminal conduct (including agreeing to pay all disgorgement, forfeiture, and restitution resulting from the misconduct), in the absence of any aggravating factor will receive significant benefits, including that the USAO will not seek a guilty plea; may choose not to impose any criminal penalty, and in any event will not impose a criminal penalty that is greater than 50% below the low end of the United States Sentencing Guidelines (USSG) fine range; and will not seek the imposition of an independent compliance monitor if the company demonstrates that it has implemented and tested an effective compliance program.
The policy identifies three aggravating factors that may warrant a USAO seeking a guilty plea even if the other requirements of the VSD policy are met: (1) if the misconduct poses a grave threat to national security, public health, or the environment; (2) if the misconduct is deeply pervasive throughout the company; or (3) if the misconduct involved current executive management of the company. The presence of an aggravating factor does not necessarily mean that a guilty plea will be required; instead, the USAO will assess the relevant facts and circumstances to determine the appropriate resolution. If a guilty plea is ultimately required, the company will still receive the other benefits under the VSD policy, including that the USAO will recommend a criminal penalty of at least a 50% and up to a 75% reduction off the low end of the USSG fine range, and that the USAO will not require the appointment of a monitor if the company has implemented and tested an effective compliance program.
In cases where a company is being jointly prosecuted by a USAO and another DOJ component, or where the misconduct reported by the company falls within the scope of conduct covered by VSD policies administered by other DOJ components, the USAO will coordinate with, or, if necessary, obtain approval from, the DOJ component responsible for the VSD policy specific to the reported misconduct when considering a potential resolution. Consistent with relevant provisions of the Justice Manual and as allowable under alternate VSD policies, the USAO may choose to apply any provision of an alternate VSD policy in addition to, or in place of, any provision of its policy.
The Attorney General’s Advisory Committee (AGAC), under the leadership of United States Attorney for the Southern District of New York Damian Williams, requested that the White Collar Fraud Subcommittee of the AGAC, under the leadership of United States Attorney for the Eastern District of New York Breon Peace, develop policies in response to the Deputy AG’s memo. The policy announced today was prepared by a Corporate Criminal Enforcement Policy Working Group comprised of U.S. Attorneys from geographically diverse districts, including U.S. Attorneys Peace and Connors, as well as U.S. Attorney for the Eastern District of Virginia Jessica Aber, U.S. Attorney for the District of Connecticut Vanessa Avery, U.S. Attorney for the Eastern District of North Carolina Michael F. Easley, Jr., U.S. Attorney for the Northern District of California Stephanie Hinds, U.S. Attorney for the Western District of Virginia Christopher Kavanaugh, and U.S. Attorney for the District of New Jersey Philip Sellinger. Assistant U.S. Attorney Amanda Riedel, White Collar Crimes Coordinator for the Executive Office for U.S. Attorneys, also participated in the development of the policy.
U.S. Attorney’s Office Announces 20th Annual Project Safe Neighborhoods Logo ContestRead the Press Release
COLUMBIA, SOUTH CAROLINA — The United States Attorney's Office is sponsoring the 20th Annual Project Safe Neighborhoods (“PSN”) Logo Contest. The statewide contest welcomes students to illustrate how we can help prevent gun violence in our schools by designing a logo for use on upcoming PSN publications. The theme is “Preventing Gun Violence in Our Schools – Know the Signs.”
The contest is open to all South Carolina grade school students, including homeschooled students, and entries will be categorized into four grade divisions: K-2nd grade, 3rd-5th grade, 6th-8th grade, and 9th-12th grade. A winner will be selected from each of the four divisions, and each division winner will receive $50. An overall winning logo will be chosen from the four division winners and will receive an additional $50 prize for a total of $100.
The winning entries will be selected by “The Insiders,” a select group of students from the South Carolina Department of Juvenile Justice, who travel throughout the state encouraging children and promoting community awareness of the consequences of juvenile crime. In addition to the South Carolina Department of Juvenile Justice, the United States Attorney’s Office is proud to partner with the South Carolina Sheriffs’ Association, the South Carolina Police Chiefs’ Association, and the South Carolina Law Enforcement Officers’ Association for this year’s contest.
Entries should be consistent with the theme “Preventing Gun Violence in Our Schools – Know the Signs.” The deadline for submissions is March 31, 2023. If your student is interested in participating, contact your local school as contest information has been sent to all South Carolina schools. Applications and contest rules may also be found on our website at https://www.justice.gov/usao-sc/programs/ceasefire/project-sentry/contest-winners/contest-rules.
The centerpiece of the Department of Justice’s violent crime reduction efforts, PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime. The contest is an important prevention initiative that has proven to be an effective way to engage our students in meaningful conversation about preventing gun crimes among our young people and ensuring a safe learning atmosphere for our schoolchildren.
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U.S. Attorney Sellinger Announces Implementation of New Voluntary Self-Disclosure PolicyRead the Press Release
NEWARK, N.J. – U.S. Attorney Philip R. Sellinger announced that the U.S. Attorney’s Office for the District of New Jersey has implemented the new United States Attorney’s Offices’ Voluntary Self-Disclosure Policy released earlier today.
The policy, which is effective immediately, details the circumstances under which a company will be considered to have made a voluntary self-disclosure (VSD) of misconduct to a United States Attorney’s Office (USAO), and provides transparency and predictability to companies and the defense bar concerning the concrete benefits and potential outcomes in cases where companies voluntarily self-disclose misconduct, fully cooperate and timely and appropriately remediate.
“The intent of this new policy is to incentivize corporate responsibility and a culture of compliance,” U.S. Attorney Sellinger said. “We hope that companies will come forward when misconduct occurs, and cooperate with the government so that individual wrongdoers can be held accountable. When they do, they will have a far better and more predictable outcome.”
The goal of the policy is to standardize how VSDs are defined and credited by USAOs nationwide, and to incentivize companies to maintain effective compliance programs capable of identifying misconduct, to expeditiously and voluntarily disclose and remediate misconduct, and to cooperate fully with the government in corporate criminal investigations. The policy was developed pursuant to the Deputy Attorney General’s Sept. 15, 2022, memorandum, “Further Revisions to Corporate Criminal Enforcement Policies Following Discussions with Corporate Crime Advisory Group” (Monaco Memo), which directed each Department of Justice (DOJ) component that prosecutes corporate crime to review its policies on corporate voluntary self-disclosure and, if there was no formal written policy to incentivize self-disclosure, draft and publicly share such a policy.
Under the new VSD policy, a company is considered to have made a VSD if it becomes aware of misconduct by employees or agents before that misconduct is publicly reported or otherwise known to the DOJ, and discloses all relevant facts known to the company about the misconduct to a USAO in a timely fashion prior to an imminent threat of disclosure or government investigation. A company that voluntarily self-discloses as defined in the policy and fully meets the other requirements of the policy, by – in the absence of any aggravating factor – fully cooperating and timely and appropriately remediating the criminal conduct (including agreeing to pay all disgorgement, forfeiture, and restitution resulting from the misconduct), will receive significant benefits, including that the USAO will not seek a guilty plea; may choose not to impose any criminal penalty, and in any event will not impose a criminal penalty that is greater than 50 percent below the low end of the United States Sentencing Guidelines (USSG) fine range; and will not seek the imposition of an independent compliance monitor if the company demonstrates that it has implemented and tested an effective compliance program.
The policy identifies three aggravating factors that may warrant a USAO seeking a guilty plea even if the other requirements of the VSD policy are met: (1) if the misconduct poses a grave threat to national security, public health, or the environment; (2) if the misconduct is deeply pervasive throughout the company; or (3) if the misconduct involved current executive management of the company. The presence of an aggravating factor does not necessarily mean that a guilty plea will be required; instead, the USAO will assess the relevant facts and circumstances to determine the appropriate resolution. If a guilty plea is ultimately required, the company will still receive the other benefits under the VSD policy, including that the USAO will recommend a criminal penalty of at least a 50 percent and up to a 75 percent reduction off the low end of the USSG fine range, and that the USAO will not require the appointment of a monitor if the company has implemented and tested an effective compliance program.
In cases where a company is being jointly prosecuted by a USAO and another DOJ component, or where the misconduct reported by the company falls within the scope of conduct covered by VSD policies administered by other DOJ components, the USAO will coordinate with, or, if necessary, obtain approval from, the DOJ component responsible for the VSD policy specific to the reported misconduct when considering a potential resolution. Consistent with relevant provisions of the Justice Manual and as allowable under alternate VSD policies, the USAO may choose to apply any provision of an alternate VSD policy in addition to, or in place of, any provision of its policy.
The Attorney General’s Advisory Committee (AGAC), under the leadership of U.S. Attorney for the Southern District of New York Damian Williams, requested that the White Collar Fraud Subcommittee of the AGAC, under the leadership of U.S. Attorney for the Eastern District of New York Breon Peace, develop policies in response to the Deputy AG’s memo. The policy announced today was prepared by a Corporate Criminal Enforcement Policy Working Group comprised of U.S. Attorneys from geographically diverse districts, including U.S. Attorney Peace, U.S. Attorney Sellinger, and U.S. Attorney for the Eastern District of Virginia Jessica Aber, U.S. Attorney for the District of Connecticut Vanessa Avery, U.S. Attorney for the District of Hawaii Clare Connors, U.S. Attorney for the Eastern District of North Carolina Michael F. Easley Jr., U.S. Attorney for the Northern District of California Stephanie Hinds, and U.S. Attorney for the Western District of Virginia Christopher Kavanaugh. Assistant U.S. Attorney Amanda Riedel, White Collar Crimes Coordinator for the Executive Office for U.S. Attorneys, also participated in the development of the policy.
U.S. Attorney Sayler A. Fleming Announces New Voluntary Self-Disclosure PolicyRead the Press Release
United States Attorney Sayler A. Fleming announced that the U.S. Attorney’s Office for the Eastern District of Missouri has implemented the new United States Attorney’s Offices’ Voluntary Self-Disclosure Policy released earlier today. The policy, which is effective immediately, details the circumstances under which a company will be considered to have made a voluntary self-disclosure (VSD) of misconduct to a United States Attorney’s Office (USAO), and provides transparency and predictability to companies and the defense bar concerning the concrete benefits and potential outcomes in cases where companies voluntarily self-disclose misconduct, fully cooperate and timely and appropriately remediate.
The goal of the policy is to standardize how VSDs are defined and credited by USAOs nationwide, and to incentivize companies to maintain effective compliance programs capable of identifying misconduct, to expeditiously and voluntarily disclose and remediate misconduct, and to cooperate fully with the government in corporate criminal investigations. The policy was developed pursuant to the Deputy Attorney General’s September 15, 2022 memorandum, “Further Revisions to Corporate Criminal Enforcement Policies Following Discussions with Corporate Crime Advisory Group” (Monaco Memo), which directed each Department of Justice (DOJ) component that prosecutes corporate crime to review its policies on corporate voluntary self-disclosure and, if there was no formal written policy to incentivize self-disclosure, draft and publicly share such a policy.
Under the new VSD policy, a company is considered to have made a VSD if it becomes aware of misconduct by employees or agents before that misconduct is publicly reported or otherwise known to the DOJ, and discloses all relevant facts known to the company about the misconduct to a USAO in a timely fashion prior to an imminent threat of disclosure or government investigation. A company that voluntarily self-discloses as defined in the policy and fully meets the other requirements of the policy, by—in the absence of any aggravating factor—fully cooperating and timely and appropriately remediating the criminal conduct (including agreeing to pay all disgorgement, forfeiture, and restitution resulting from the misconduct), will receive significant benefits, including that the USAO will not seek a guilty plea; may choose not to impose any criminal penalty, and in any event will not impose a criminal penalty that is greater than 50% below the low end of the United States Sentencing Guidelines (USSG) fine range; and will not seek the imposition of an independent compliance monitor if the company demonstrates that it has implemented and tested an effective compliance program.
The policy identifies three aggravating factors that may warrant a USAO seeking a guilty plea even if the other requirements of the VSD policy are met: (1) if the misconduct poses a grave threat to national security, public health, or the environment; (2) if the misconduct is deeply pervasive throughout the company; or (3) if the misconduct involved current executive management of the company. The presence of an aggravating factor does not necessarily mean that a guilty plea will be required; instead, the USAO will assess the relevant facts and circumstances to determine the appropriate resolution. If a guilty plea is ultimately required, the company will still receive the other benefits under the VSD policy, including that the USAO will recommend a criminal penalty of at least a 50% and up to a 75% reduction off the low end of the USSG fine range, and that the USAO will not require the appointment of a monitor if the company has implemented and tested an effective compliance program.
In cases where a company is being jointly prosecuted by a USAO and another DOJ component, or where the misconduct reported by the company falls within the scope of conduct covered by VSD policies administered by other DOJ components, the USAO will coordinate with, or, if necessary, obtain approval from, the DOJ component responsible for the VSD policy specific to the reported misconduct when considering a potential resolution. Consistent with relevant provisions of the Justice Manual and as allowable under alternate VSD policies, the USAO may choose to apply any provision of an alternate VSD policy in addition to, or in place of, any provision of its policy.
The Attorney General’s Advisory Committee (AGAC), under the leadership of United States Attorney for the Southern District of New York Damian Williams, requested that the White Collar Fraud Subcommittee of the AGAC, under the leadership of United States Attorney for the Eastern District of New York Breon Peace, develop policies in response to the Deputy AG’s memo. The policy announced today was prepared by a Corporate Criminal Enforcement Policy Working Group comprised of U.S. Attorneys from geographically diverse districts, including U.S. Attorney Peace, as well as U.S. Attorney for the Eastern District of Virginia Jessica Aber, U.S. Attorney for the District of Connecticut Vanessa Avery, U.S. Attorney for the District of Hawaii Clare Connors, U.S. Attorney for the Eastern District of North Carolina Michael F. Easley, Jr., U.S. Attorney for the Northern District of California Stephanie Hinds, U.S. Attorney for the Western District of Virginia Christopher Kavanaugh, and U.S. Attorney for the District of New Jersey Philip Sellinger. Assistant U.S. Attorney Amanda Riedel, White Collar Crimes Coordinator for the Executive Office for U.S. Attorneys, also participated in the development of the policy.
U.S. Attorney Jesse Laslovich announces $1.3 million grant from Justice Department for investment in State Crisis InterventionRead the Press Release
BILLINGS — U.S. Attorney Jesse Laslovich announced today a $1,387,530 award to the Montana Board of Crime Control as part of the Justice Department’s Byrne State Crisis Intervention Program. The award to Montana was among 49 awards to states, territories and the District of Columbia.
The investment of more than $231 million nationwide will fund state crisis intervention court proceedings, including but not limited to, extreme risk protection order (ERPO) programs that work to keep guns out of the hands of those who pose a threat to themselves or others. This investment in community safety is authorized by the Bipartisan Safer Communities Act of 2022, historic legislation to address and reduce gun violence. The awards are administered by the Department’s Office of Justice Programs’ Bureau of Justice Assistance.
“This grant to the Montana Board of Crime Control is an important part of the United States Justice Department’s effort to protect Montana communities from violent crime and gun violence. We are determined to ensure that our fellow Montanans are safe and secure. Importantly, these resources will give our communities tools to help prevent gun violence and support persons who are at risk of committing or becoming a victim of gun crimes,” U.S. Attorney Laslovich said.
In the award to the Montana Board of Crime Control, a Crisis Intervention Advisory Board (CIAB) will be formed from members of and be governed by the already existing Montana Board of Crime Control. The CIAB will discuss, inform and direct the state’s Byrne State Crisis Intervention Program strategies and funding priorities for the initial four-year grant period, from fiscal year 2023 to fiscal year 2026. Because Montana does not have Extreme Risk Protection Order laws, it is not anticipated the CIAB will pursue ERPO programs. The CIAB will consider court-based programs, such as drug, mental health and veterans’ treatment courts, including those that accept clients with firearm violations; behavioral health programs for persons at risk to themselves or others; and funding for law enforcement agencies to safely secure, store, track and return relinquished guns.
Signed into law by President Biden in June 2022, the Bipartisan Safer Communities Act is the most significant piece of federal gun safety legislation in almost three decades and comes as a response to recent mass shootings and to the far more common, but no less tragic, incidents of community gun violence. Including the Byrne State Crisis Intervention Program, the law allocates a total of $1.4 billion to OJP over five years to develop, implement, and sustain meaningful investments in safer communities.
“These awards will help meet two monumental public safety challenges — the alarming proliferation of gun violence in our country and the clear need for front-end interventions to slow the cycle of violence and victimization in our most underserved communities,” said BJA Director Karhlton F. Moore. “The Bureau of Justice Assistance is proud to make these resources available to states as a critical part of its mission to reduce and prevent crime and to promote a fair and effective criminal justice system.”
For a full list of awards, please visit: https://data.ojp.usdoj.gov/stories/s/O-BJA-2023-171458/b5xz-as5z/. These awards are the latest effort from the Department of Justice’s Office of Justice Programs to implement this historic legislation.
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U.S. Attorney Avery Announces Implementation of New Voluntary Self-Disclosure PolicyRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, today announced that the U.S. Attorney’s Office for the District of Connecticut has implemented the new United States Attorney’s Offices’ Voluntary Self-Disclosure Policy released earlier today. The policy, which is effective immediately, details the circumstances under which a company will be considered to have made a voluntary self-disclosure (VSD) of misconduct to a United States Attorney’s Office (USAO), and provides transparency and predictability to companies and the defense bar concerning the concrete benefits and potential outcomes in cases where companies voluntarily self-disclose misconduct, fully cooperate and timely and appropriately remediate.
The goal of the policy is to standardize how VSDs are defined and credited by USAOs nationwide, and to incentivize companies to maintain effective compliance programs capable of identifying misconduct, to expeditiously and voluntarily disclose and remediate misconduct, and to cooperate fully with the government in corporate criminal investigations. The policy was developed pursuant to the Deputy Attorney General’s September 15, 2022 memorandum, “Further Revisions to Corporate Criminal Enforcement Policies Following Discussions with Corporate Crime Advisory Group” (Monaco Memo), which directed each Department of Justice (DOJ) component that prosecutes corporate crime to review its policies on corporate voluntary self-disclosure and, if there was no formal written policy to incentivize self-disclosure, draft and publicly share such a policy.
Under the new VSD policy, a company is considered to have made a VSD if it becomes aware of misconduct by employees or agents before that misconduct is publicly reported or otherwise known to the DOJ, and discloses all relevant facts known to the company about the misconduct to a USAO in a timely fashion prior to an imminent threat of disclosure or government investigation. A company that voluntarily self-discloses as defined in the policy and fully meets the other requirements of the policy, by – in the absence of any aggravating factor – fully cooperating and timely and appropriately remediating the criminal conduct (including agreeing to pay all disgorgement, forfeiture, and restitution resulting from the misconduct), will receive significant benefits, including that the USAO will not seek a guilty plea; may choose not to impose any criminal penalty, and in any event will not impose a criminal penalty that is greater than 50 percent below the low end of the United States Sentencing Guidelines (USSG) fine range; and will not seek the imposition of an independent compliance monitor if the company demonstrates that it has implemented and tested an effective compliance program.
The policy identifies three aggravating factors that may warrant a USAO seeking a guilty plea even if the other requirements of the VSD policy are met: (1) if the misconduct poses a grave threat to national security, public health, or the environment; (2) if the misconduct is deeply pervasive throughout the company; or (3) if the misconduct involved current executive management of the company. The presence of an aggravating factor does not necessarily mean that a guilty plea will be required; instead, the USAO will assess the relevant facts and circumstances to determine the appropriate resolution. If a guilty plea is ultimately required, the company will still receive the other benefits under the VSD policy, including that the USAO will recommend a criminal penalty of at least a 50 percent and up to a 75 percent reduction off the low end of the USSG fine range, and that the USAO will not require the appointment of a monitor if the company has implemented and tested an effective compliance program.
In cases where a company is being jointly prosecuted by a USAO and another DOJ component, or where the misconduct reported by the company falls within the scope of conduct covered by VSD policies administered by other DOJ components, the USAO will coordinate with, or, if necessary, obtain approval from, the DOJ component responsible for the VSD policy specific to the reported misconduct when considering a potential resolution. Consistent with relevant provisions of the Justice Manual and as allowable under alternate VSD policies, the USAO may choose to apply any provision of an alternate VSD policy in addition to, or in place of, any provision of its policy.
“Corporate crime can negatively impact our health, safety and financial security,” said U.S. Attorney Avery. “This Voluntary Self-Disclosure Policy not only details the benefits a company will receive for making a voluntary disclosure of misconduct and cooperating during a resulting investigation, but it also establishes a standard across U.S. Attorney’s Office nationwide for evaluating and crediting the self-disclosure. We encourage all companies who uncover wrongdoing within to come forward, save valuable law enforcement investigative resources, and receive the benefit of being a good corporate citizen.”
The Attorney General’s Advisory Committee (AGAC), under the leadership of United States Attorney for the Southern District of New York Damian Williams, requested that the White Collar Fraud Subcommittee of the AGAC, under the leadership of United States Attorney for the Eastern District of New York Breon Peace, develop policies in response to the Deputy AG’s memo. The policy announced today was prepared by a Corporate Criminal Enforcement Policy Working Group comprised of U.S. Attorneys from geographically diverse districts, including U.S. Attorney Peace, as well as U.S. Attorney for the Eastern District of Virginia Jessica Aber, U.S. Attorney for the District of Connecticut Vanessa Roberts Avery, U.S. Attorney for the District of Hawaii Clare Connors, U.S. Attorney for the Eastern District of North Carolina Michael F. Easley, Jr., U.S. Attorney for the Northern District of California Stephanie Hinds, U.S. Attorney for the Western District of Virginia Christopher Kavanaugh, and U.S. Attorney for the District of New Jersey Philip Sellinger. Assistant U.S. Attorney Amanda Riedel, White Collar Crimes Coordinator for the Executive Office for U.S. Attorneys, also participated in the development of the policy.
Two Washington men sentenced to prison for trafficking heroin, methamphetamine, fentanyl pills in Missoula areaRead the Press Release
MISSOULA — Two Washington men who admitted to drug trafficking charges after Montana law enforcement found heroin, methamphetamine, fentanyl pills and a firearm in their vehicle during a traffic stop were sentenced today to prison, U.S. Attorney Jesse Laslovich said.
Alex Stephen Schmidt, 50, of Colville, Washington, was sentenced to six and one half years in prison, to be followed by five years of supervised release. Schmidt pleaded guilty in September 2022 to conspiracy to possess with intent to distribute controlled substances.
Co-defendant Richmond James McKee, 52, of Spokane, Washington, was sentenced to five years in prison, to be followed by five years of supervised release. McKee pleaded guilty in October 2022 to conspiracy to possess with intent to distribute controlled substances.
U.S. District Judge Dana L. Christensen presided.
In court documents, the government alleged that in October 2021, law enforcement conducted a traffic stop of a vehicle McKee was driving on Interstate 90 in Montana. The vehicle belonged to Schmidt. In a later search of the vehicle, officers found heroin, methamphetamine, fentanyl pills, a firearm and drug paraphernalia. The investigation determined that a confidential informant assisted Schmidt with selling drugs and that Schmidt was the individual who normally obtained the drugs.
Assistant U.S. Attorney Tara J. Elliott prosecuted the case, which was investigated by the FBI’s Montana Regional Violent Crime Task Force, the Montana Highway Patrol and Missoula County Sheriff’s Office.
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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Two Nigerian citizens indicted for attempting to defraud the United States of over $25 millionRead the Press Release
Seattle – Two Nigerian citizens who currently reside in Toronto, Canada, have been indicted by a federal grand jury for their scheme to steal COVID-19 disaster benefits and U.S. tax refunds, announced U.S. Attorney Nick Brown. Sakiru Olanrewaju Ambali, 45, was arrested yesterday in Frankfurt, Germany, as he traveled back to Canada from Nigeria. Fatiu Ismaila Lawal, 45, was arrested in Canada. Each defendant remains in Germany or Canada respectively pending extradition to the U.S.
“These men are accused of using the stolen identities of thousands of Americans to submit over 1,700 claims for pandemic unemployment benefits to over 25 different states, including Washington State,” said U.S. Attorney Nick Brown. “My Office is committed to bringing to justice those accused of exploiting a time of crisis to illegally enrich themselves, whether they are in the United States or abroad.”
“These arrests demonstrate the Department’s commitment to bring together our law enforcement partners and pursue these alleged fraudsters around the world,” said Department of Justice Acting Director of COVID-19 Fraud Enforcement Michael C. Galdo. “I applaud the hard work of the U.S. Attorney’s Office for the Western District of Washington, thank our domestic and international partners for their continued assistance, and look forward to seeing additional results from the data analysis identifying suspected pandemic relief fraud.”
According to the indictment, Lawal and Ambali used the stolen personal information of thousands of U.S. taxpayers and residents to file fraudulent claims for COVID-19 pandemic assistance and false tax returns seeking refunds. In total, the claims sought approximately $25 million, but the conspirators obtained approximately $2.4 million, primarily from pandemic unemployment benefits.
The co-conspirators allegedly submitted claims for pandemic unemployment benefits to over 25 states including New York, Maryland, Michigan, Nevada, California, and Washington. Using 13 Google accounts they filed some 900 claims. The co-conspirators also allegedly established four internet domain names that they then used for fraud – creating some 800 different email addresses that were used for fraud.
Lawal and Ambali allegedly filed some 2300 fraudulent income tax returns seeking over $7.1 million in tax refunds. The IRS caught most of the fraud and paid only about $30,000 in fraudulent refunds.
The co-conspirators also attempted to use the stolen identities for Economic Injury Disaster Loans (EIDL) to defraud the Small Business Administration.
According to the indictment, the co-conspirators had the proceeds of their fraud sent to cash cards or to “money mules” who transferred the funds according to instructions given by the co-conspirators. They also allegedly used stolen identities to open bank accounts and have the money deposited directly into those accounts for their use.
Lawal and Ambali are charged with conspiracy to commit wire fraud, ten counts of wire fraud and six counts of aggravated identity theft.
The conspiracy and wire fraud counts are punishable by up to 30 years in prison. Aggravated identity theft is punishable by a mandatory minimum two years in prison to run consecutive to any other prison time imposed in the case.
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The National Unemployment Fraud Task Force provided a lead on this case to the investigative team in Western Washington. The case was investigated by the FBI with assistance from U.S. Postal Inspection Service (USPIS) and the Department of Labor Office of Inspector General (DOL-OIG). Also contributing to the investigation were Washington State Employment Security Division (ESD), the Internal Revenue Service Criminal Investigation (IRS-CI), and the Small Business Administration (SBA).
The case is being prosecuted by Assistant United States Attorneys Cindy Chang and Seth Wilkinson of the Western District of Washington. DOJ’s Office of International Affairs is assisting.
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 augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
lawal_and_ambali_indictment.pdfTwo More New Orleans Residents Sentenced in Staged Automobile Collision SchemeRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Duane A. Evans announced that, on February 15, 2023, U.S. District Judge Sarah S. Vance sentenced HERBERT ALLEN (“ALLEN”), age 38, and DION RIDLEY (“RIDLEY”), age 23, after they pleaded guilty to Conspiracy to Commit Mail Fraud in violation of Title 18, United States Code, Section 371. Judge Vance sentenced ALLEN to 37 months in prison, followed by 3 years of supervised release. RIDLEY was sentenced to 6 months in prison, followed by 1 year of supervised release. Judge Vance also imposed a mandatory special assessment fee of $100 as to each defendant.
According to court documents, the defendants admitted to being in a conspiracy to commit mail fraud in connection with a staged automobile collision. In the scheme, ALLEN falsely claimed that he was the driver of a car that was struck by a tractor-trailer on June 28, 2017. RIDLEY, a passenger in the car, falsely claimed that ALLEN was driving the car and they were struck by a tractor-trailer. In fact, the government’s evidence showed that the defendants conspired with Damien Labeaud (“Labeaud”), Roderick Hickman (“Hickman”), and others to intentionally collide ALLEN’s 2007 Chevrolet Impala with a tractor-trailer in the area of Tchoupitoulas Street and Calliope Street in New Orleans. Both defendants lied in civil depositions, falsely claiming that ALLEN was driving the car that collided with the tractor-trailer, when in fact Hickman was driving the car and intentionally hit the tractor-trailer. Through their false statements and acts of deception, ALLEN was able to secure a $50,000 monetary settlement from the owner and insurer of the tractor-trailer, and RIDLEY was able to secure a $90,000 monetary settlement.
The U.S. Attorney’s Office would like to acknowledge the assistance of the Federal Bureau of Investigation, Louisiana State Police, and the Metropolitan Crime Commission with this matter. The prosecution of this case is being handled by Assistant U.S. Attorney Brandon S. Long; Brian M. Klebba, Unit Chief; Assistant U.S. Attorney Maria M. Carboni; and Assistant U.S. Attorney Edward Rivera, all members of the Financial Crimes Unit.
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