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20 January 2023
New Orleans Man Sentenced on Drug and Weapons ChargesRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced that defendant RANDY FIELDS, of Orleans Parish, was sentenced on January 17, 2023 by U.S. District Court Judge Jay C. Zainey on four-counts of a four-count indictment to a combined total of 125 months imprisonment, 4 years of supervised release, and a $400 mandatory special assessment fee.
In Count 1 of the indictment, FIELDS is charged with possession with the intent to distribute 40 or more grams of fentanyl in violation of Title 21, United States Code, Sections 841(a)(1) and (b)(1)(B)(vi). In Count 2, FIELDS is charged with possessing a firearm in furtherance of a drug trafficking offense, in violation of Title 18, United States Code, Section 924(c)(1). In Count 3, FIELDS is charged with being a felon in possession of a firearm in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2). Finally, in Count 4, FIELDS is charged with being in possession of a machine gun in violation of Title 18, United States Code, Sections 922(o) and 924(a)(2).
On March 31, 2021, the New Orleans Police Department responded to a shooting in the 1800 block of Touro Street in New Orleans, LA. Upon their arrival, officers discovered FIELDS suffering from multiple gunshot wounds. As officers attempted to render aid, they discovered a firearm in FIELDS’s back pants pocket. The firearm was equipped with a Glock-switch device, allowing it to be turned into a fully automatic weapon. Additionally, officers located approximately 100 grams of fentanyl in FIELDS’s shirt.
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.
U. S. Attorney Evans praised the work of the Federal Bureau of Investigation and the New Orleans Police Department. The case was prosecuted by Assistant United States Attorney Inga Petrovich of the Violent Crime Unit of the U.S. Attorney’s Office.
New Orleans Man Pleads Guilty to Federal Gun and Drug OffensesRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced that JAMAL SMITH, pled guilty to various violations of the Federal Gun Control and the Federal Controlled Substances Acts before the Honorable Judge Carl J. Barbier.
SMITH pled guilty to Count 1, charging him with possession with intent to distribute a quantity of marijuana, in violation of Title 21, United States Code, Sections 841(a)(1) and (b)(1)(D). SMITH also pled guilty to Count 5, charging him with possession of a firearm in furtherance of a drug trafficking crime, in violation of Title 18, United States Code, Section 924(c)(1)(A). SMITH also pled guilty to Counts 3 and 6, charging him with possession of a firearm by a convicted felon, in violation of Title 18, United States Code, Section 922(g)(1).
SMITH faces a maximum sentence of 5 years imprisonment, up to a $250,000 fine, and up to 2 years of supervised release as to Count 1. As to Count 5, SMITH faces a mandatory minimum sentence of 5 years up to life imprisonment, which is to run consecutively to all other sentences, up to a $250,000 fine, and up to 5 years of supervised release. As to Counts 3 and 6, SMITH faces a maximum term of imprisonment of 10 years, up to a $250,000 fine, and up to 3 years of supervised release. SMITH must pay a mandatory special assessment fee of $100 for each count. SMITH’S sentencing is scheduled for April 27, 2023.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The case was investigated by the New Orleans Police Department and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorneys Elizabeth Privitera (Unit Chief), Inga Petrovich, and David Haller of the Violent Crime Unit.
Minatare Man Sentenced for Receiving Child PornographyRead the Press Release
United States Attorney Steven Russell announced that Richard Knott, Jr., 35, of Minatare, Nebraska, was sentenced today in Lincoln, Nebraska, by United States District Judge John M. Gerrard for possession of child pornography. Knott was sentenced to 150 months in prison and will also serve 10 years on supervised release. There is no parole in the federal system. Knott was also ordered to pay $4,000 to a fund designated for victims of this type of crime. After serving his prison sentence Knott will continue to be required to register as a sex offender.
This case began with an investigation regarding the sharing of child pornography on a specific foreign-based cloud storage website. The investigation primarily concerned two hyperlinks which contained folders and subfolders of child pornography primarily depicting infants and toddlers. The investigation reviewed user accounts which were accessing and downloading child pornography from these links. The IP address from one of the user accounts traced back to Knott. The subscriber information for the email address also came back to him.
On June 9, 2021, a federal search warrant was executed on Knott’s home. During the execution, two of Knott’s cellphones, a hard drive, and 5 laptop computers were seized. During the execution of the warrant, Knott agreed to be interviewed and he admitted that one year after he was released from prison for a prior child pornography crime, he began viewing and downloading child pornography again. Knott had previously been convicted in 2012 for possessing child pornography in Scotts Bluff County, Nebraska.
The forensic download and review of Knott’s cellphone and other devices were determined to contain approximately 33,000 images and 7,000 videos of child pornography.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
This case was investigated by the Federal Bureau of Investigation.
Memphis, Tennessee Man Sentenced to 15 Years in Prison for Firearms Offenses and Attempted Bank LarcenyRead the Press Release
OXFORD, Miss. – A Memphis, Tennessee man was sentenced today to 15 years in prison for his role in the burglary of a federally licensed firearms store and the attempted burglary of an automated teller machine in North Mississippi.
Court documents indicate that in June of 2020, Lederrius Brown, 27, and two other individuals broke into 2A Armaments, a Federal Firearms Licensee in New Albany, Mississippi, and stole over 20 firearms before leading law enforcement on a multi-county pursuit.
Brown and others also attempted to pry open an ATM that was part of First Byhalia Bank in Byhalia, Mississippi, resulting in over $20,000 worth of damage.
Brown is a prior convicted felon and pled guilty to the prohibited possession of the firearms taken from the business, along with a charge of attempted bank larceny.
Brown appeared for sentencing on these offenses in federal court in Oxford on Friday afternoon. U.S. District Judge Glen Davidson sentenced Brown to a total of 180 months in prison to be followed by three years of supervised release. Brown was also ordered to pay $39,500 worth of restitution to the victims.
“Our office will continue to do everything in our power to keep guns out of the hands of criminals, and to hold accountable those who illegally possess and use them,” said U.S. Attorney Clay Joyner. “Hopefully this sentence will serve as a deterrent to those who would steal firearms or provide firearms to individuals intent on using them to commit acts of violence in our communities.”
“The collaborative effort of federal and local law enforcement, including the U.S. Attorney’s Office, has led to the lengthy sentencing of this career criminal and is another example of our commitment to fight gun violence,” said ATF New Orleans Special Agent in Charge Kurt Thielhorn. “ATF will continue to work tirelessly to protect our communities and hold accountable those who threaten our safety.”
The Oxford Field Office of the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case, along with the New Albany Police Department and the Marshall County Sheriff’s Office. The case was prosecuted by Assistant U.S. Attorney Julie Addison.
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.
McLaughlin Man Sentenced for Failure to Register as a Sex OffenderRead the Press Release
ABERDEEN - United States Attorney Alison J. Ramsdell announced that a McLaughlin, South Dakota, man convicted of Failure to Register as a Sex Offender was sentenced on January 18, 2023, by U.S. District Judge Charles B. Kornmann.
Mikal White Mountain, age 39, was sentenced to 27 months in federal prison, followed by five years of supervised release, and ordered to pay a special assessment to the Federal Crime Victims Fund in the amount of $100.
White Mountain was indicted for Failure to Register as a Sex Offender by a federal grand jury in December of 2021. He pleaded guilty on October 17, 2022.
White Mountain was convicted of Gross Sexual Imposition in North Dakota in 2005. Accordingly, White Mountain is required to register as a sex offender and to update his registration within three business days of relocation or changing employment. Between September 4, 2021, and December 14, 2021, White Mountain failed to properly register as a sex offender and update his registration.
This case was investigated by the U.S. Marshals Service, the Corson County Sheriff’s Office, the North Dakota Division of Criminal Investigation, and the South Dakota Division of Criminal Investigation. Assistant U.S. Attorney Cameron Cook prosecuted the case.
White Mountain was immediately remanded to the custody of the U.S. Marshals Service.
Man Sentenced to Nearly Six Years in Prison for Illegally Possessing Gun During Civil Unrest in ChicagoRead the Press Release
CHICAGO — A man has been sentenced to nearly six years in federal prison for illegally possessing a loaded semiautomatic handgun during a period of civil unrest in Chicago in 2020.
RICKY GREEN, 28, of Chicago, illegally possessed the gun on the night of May 31, 2020, in the Lake View neighborhood on Chicago’s North Side. Green and other individuals attempted to break into a Target store in the 3300 block of North Ashland Avenue. When Chicago Police officers arrived at the scene, Green and the others fled in vehicles. After a brief chase on Lincoln Avenue, the vehicle in which Green was riding became disabled. Green ran off on foot and placed a bag containing the gun behind a broom and dustpan in a residential gangway. He then jumped a fence and tried to hide under the stairs of a residence in the 1300 block of West Wellington Avenue, but was apprehended by police officers, who then discovered the bag with the gun in it.
Green had previously been convicted in state court of multiple felonies, including a firearm offense, and was not legally allowed to possess the gun. He was on parole for his most recent felony conviction at the time of the federal offense.
A jury last year convicted Green on a federal charge of illegal firearm possession. U.S. District Judge Manish S. Shah on Thursday imposed a prison sentence of five years and nine months.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Jeffrey L. Matthews, Acting Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives; and David Brown, Superintendent of the Chicago Police Department.
“The defendant made a calculated decision to carry the gun while committing another serious crime, attempted burglary,” Assistant U.S. Attorneys Corey B. Rubenstein and Sushma Raju argued in the government’s sentencing memorandum. “He brought that gun into the chaos accompanying the pervasive looting and vandalism. The defendant’s deliberate decision to use the cover of that historic crisis to engage in his armed offense is particularly reprehensible.”
Holding illegal firearm possessors accountable through federal prosecution is a centerpiece of Project Safe Neighborhoods, the Department of Justice’s violent crime reduction strategy. In the Northern District of Illinois, U.S. Attorney Lausch and law enforcement partners have deployed the PSN program to attack a broad range of violent crime issues facing the district, particularly firearm offenses.
Man Pleads Guilty to Transporting Illegal ImmigrantsRead the Press Release
A man who was discovered transporting illegal immigrants across northeastern Oklahoma pleaded guilty this week in federal court.
Alfonso Solis-Melendez, 33, a Mexican national, pleaded guilty to transportation of illegal aliens.
The defendant and his 11 passengers were discovered after an Oklahoma Highway Patrol Trooper stopped the minivan they were traveling in for speeding on the Will Rogers Turnpike. Seven were riding in seats, and the others were lying across the floor of the minivan while it was traveling at highway speeds. Through the investigation, agents learned the defendant was paid to transport the immigrants from Albuquerque, New Mexico, to St. Lewis, Missouri. Passengers were from Mexico, El Salvador, Bolivia, and Guatemala.
In August 2022, Solis-Melendez was also charged by the state of Texas with similar crimes.
U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations and Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney William Rubens prosecuted the case.
Man Convicted of All Charges Related to One Fatal, Two Nonfatal Fentanyl OverdosesRead the Press Release
ST. LOUIS – A jury in U.S. District Court in St. Louis on Friday found a man who provided the fentanyl that caused one fatal and two nonfatal overdoses in St. Charles, Missouri in 2020 guilty of all charges.
Ledra A. Craig, 46, of Wright City, was found guilty of a fentanyl conspiracy charge, two counts of distribution of fentanyl causing serious bodily injury for the non-fatal overdoses, one count of distribution of fentanyl with death resulting and one count of fentanyl distribution for the sale to an undercover police officer.
“Ledra Craig was selling fentanyl, one of the deadliest drugs known to man,” Assistant U.S. Attorney Derek Wiseman told jurors in closing arguments Friday morning.
Just before 7 a.m. on August 2, 2020, Craig provided fentanyl to one man, referred to in court documents as “L.T.,” in the bathroom of the Ameristar Casino in St. Charles, according to court statements and evidence. Minutes later, the man collapsed in a lobby. When emergency responders arrived, L.T. was breathing just four to six times per minute and had to be revived with two doses of Narcan.
After leaving L.T., Craig showed a bag containing fentanyl to another man, R.P., in an elevator, then sold him the drug in the parking garage. Craig had approached R.P. and his friend in the casino and offered to sell them cocaine and R.P. believed that cocaine is what he was buying.
About 40 minutes later, R.P. and N.B. were spotted in a car in a neighborhood a few blocks from R.P.’s house. Authorities were called when the car rolled forward onto someone’s lawn. Both men had overdosed. N.B. was revived with Narcan. R.P. was blue, had no pulse and was not breathing. Efforts to revive him were unsuccessful.
Investigators quickly identified Craig as the man seen in the casino with the overdose victims, and an undercover officer bought fentanyl from Craig later that day in a transaction that was recorded on video. After his arrest, Craig admitted selling fentanyl to R.P. and admitted conspiring to sell fentanyl that summer.
At sentencing April 24, Craig faces a mandatory minimum of 20 years in prison and a maximum of life.
The case was investigated by the St. Charles County Regional Drug Task Force and the Drug Enforcement Administration. Assistant U.S. Attorneys Derek Wiseman and Samantha Reitz are prosecuting the case.
Lincoln Man Sentenced for Possession with Intent to Distribute MethamphetamineRead the Press Release
United States Attorney Steven Russell announced that Aaron Lee Kuntz, 44, of Lincoln, Nebraska, was sentenced today to 15 years’ imprisonment for possession with intent to distribute 50 grams or more of actual (pure) methamphetamine after having a prior conviction for a serious drug felony by United States District Judge John M. Gerrard. Following his release from prison, Kuntz will serve 10 years on supervised release. There is no parole in the federal system.
On June 18, 2021, Lincoln narcotics investigators were watching Kuntz’s Lincoln residence. They saw a car leave Kuntz’s residence which was followed and later stopped for a traffic violation. The car was searched, and approximately 1 ¼ ounces of methamphetamine were found in the possession of one of the passengers who said they had obtained the methamphetamine at Kuntz’s residence. Investigators served a search warrant at Kuntz’s residence and found at least 510 grams, (approximately 18 ounces), of actual (pure) methamphetamine, plastic baggies, and scales. Kuntz told investigators he was selling small amounts of methamphetamine to support his methamphetamine addiction.
Kuntz had a prior conviction in federal court for conspiracy to distribute 500 grams or more of methamphetamine mixture for which he was sentenced to 135 months in prison in January of 2006.
This case was investigated by the Lincoln/Lancaster County Narcotics Task Force.
Leader of Brighton Drug Trafficking Organization Sentenced to 50 Months in PrisonRead the Press Release
BOSTON – The leader of a Boston-area drug trafficking organization (DTO) was sentenced yesterday for his role in a cocaine trafficking conspiracy.
Matthew Drayton, 45, of Boston, was sentenced by U.S. District Court Judge Denise J. Casper to 50 months in prison and three years of supervised release. In August 2022, Drayton pleaded guilty to conspiracy to distribute and possess with intent to distribute cocaine.Drayton was charged with 23 others in June 2020 as part of Operation Snowfall, which resulted in the charging of two different drug trafficking conspiracies during the overall period of November 2018 through June 2020.
According to the charging documents, beginning in November 2018, law enforcement investigated a DTO for which Drayton was both a leader and a drug distributor. The DTO was comprised of Boston-based street gang members and associates in the Commonwealth Development in Brighton, formerly known as Fidelis Way, a multi-apartment public housing development. It is alleged that the DTO assumed control over multiple apartments, where they stored, cooked, packaged and sold drugs – most of which was cocaine or cocaine base, which the DTO supplied to customers, wholesalers and distributors. As a result, the DTO caused a blight of the development and reduced the quality of life for other residents. As the investigation continued, law enforcement ultimately identified another DTO operating within the Boston area and targeted its large-scale drug suppliers and their associates.
Drayton was the leader of the Fidelis-Way related DTO whose members were allegedly responsible for the packaging, selling, storing and distribution of drugs to, or collection of proceeds from, drug customers, drug runners or other drug distributors and suppliers. It is estimated that Drayton distributed between 280 and 840 grams of cocaine base during the course of his participation in the Fidelis Way DTO which, when all drugs were calculated as powder, amounted to over 500 grams of cocaine. Drayton also participated in a number of controlled buys involving cocaine base during the investigation.
Drayton is the seventh defendant to be sentenced in the Fidelis-Way related drug conspiracy.
First Assistant United States Attorney Joshua S. Levy; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Bryan Kyes, U.S. Marshal for the District of Massachusetts; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; and Boston Police Commissioner Michael Cox made the announcement. Assistance with the investigation was provided by the Braintree, Cambridge, Canton, Randolph and Weymouth Police Departments; the Suffolk, Norfolk and Bristol County District Attorneys’ Offices; and the Suffolk, Plymouth and Norfolk County Sheriffs’ Office. Assistant U.S. Attorneys Kaitlin R. O’Donnell and Timothy E. Moran of the Organized Crime & Gang Unit prosecuted the case.This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Lawrence Ray Sentenced for Years-Long Predatory Crimes Against Students at Sarah Lawrence College and OthersRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that LAWRENCE RAY, a/k/a “Lawrence Grecco,” received a sentence of 60 years in prison for racketeering conspiracy, violent crime in aid of racketeering, extortion, sex trafficking, forced labor, tax evasion, and money laundering offenses. RAY was sentenced today by United States District Judge Lewis J. Liman after being convicted at trial in April 2022.
U.S. Attorney Damian Williams said: “Larry Ray is a monster. For years, he inflicted brutal and lifelong harm on innocent victims. Students who had their lives ahead of them. He groomed them and abused them into submission for his own gain. Through physical and psychological abuse, he took control over his victims’ minds and bodies and then extracted millions of dollars from them. The sentence imposed today will ensure that Ray will never harm victims again. I commend the brave victims who testified in Court in the face of incredible trauma. I also thank the career prosecutors in this Office and our law enforcement partners who made the just conviction and sentence in this case possible.”
According to the Indictment and the evidence at trial:
From in or about 2010 through the present, LAWRENCE RAY subjected a group of college students and other victims he met after moving into his daughter’s dorm room at Sarah Lawrence College to sexual and psychological manipulation and physical abuse. RAY’s tactics included sleep deprivation, psychological and sexual humiliation, verbal abuse, threats of physical violence, physical violence, threats of criminal legal action, alienating the victims from their families, and exploiting the victims’ mental health vulnerabilities.
Through this manipulation and abuse, RAY extracted false confessions from the victims to causing purported damages to RAY and his family and associates and then extorted payment for those purported damages through several means. The victims made payments to RAY by draining their parents’ savings, opening credit lines, soliciting contributions from acquaintances, selling real estate ownership, and at RAY’s direction, performing unpaid labor for RAY and earning money through prostitution.
Through fear, violence, and coercion, RAY forced one female victim to engage in commercial sex acts to pay damages to RAY that she did not actually owe. Beginning when she was just a college student, RAY sexually groomed this victim and collected sexually explicit photographs and other personal information, which he then used to coerce her into continued commercial sex acts. RAY also used physical violence. On one occasion, RAY tied his victim to a chair, placed a plastic bag over her head, and nearly suffocated her. RAY collected millions of dollars in forced prostitution proceeds from this victim.
In addition, RAY forced three female victims to perform unpaid labor on a family member’s property in North Carolina. Through a course of psychological and physical abuse, RAY forced these three victims to do extensive physical labor, sometimes in the middle of the night, for no pay.
Associates of RAY helped RAY collect and transfer the criminal proceeds, which RAY shared with at least two associates. RAY then laundered his criminal proceeds through an internet domain business and evaded paying taxes on his proceeds.
At the sentencing today, Judge Liman underscored “the resiliency of the human spirit and the courage of the victims.”
* * *
In addition to the prison term, RAY, 63, of Piscataway, New Jersey, was sentenced to a lifetime of supervised release. He was also ordered to forfeit $2,444,349, the proceeds from the sale of his GoDaddy portfolio, and the Pinehurst, North Carolina, residence where the forced labor took place. Restitution will be decided by the Court within 90 days of today’s sentencing.
Mr. Williams praised the efforts of the Federal Bureau of Investigation and the New York City Police Department.
RAY's co-defendant Isabella Pollok is scheduled to be sentenced on February 22, 2023, at 11:00 a.m.
This case is being handled by the Office’s Violent and Organized Crime Unit. Assistant U.S. Attorneys Danielle Sassoon, Mollie Bracewell, and Lindsey Keenan are in charge of the prosecution.
Kissimmee Man Indicted for Lying to the FBI in Connection with an International Terrorism InvestigationRead the Press Release
Orlando, Florida –United States Attorney Roger B. Handberg, announces that a federal grand jury returned an indictment charging Moad Mohamed Benkabbou (22, Kissimmee) with three counts of false statements to a federal agency. Because the false statements made to the FBI related to an international terrorism investigation, Benkabbou faces a maximum sentence of eight years in federal prison. Following a detention hearing the Court detained Benkabbou in a local jail pending trial.
According to the indictment, Benkabbou was asked if he had ever talked about ISIS with a person known to FBI. He falsely answered, “No, I didn’t.” Benkabbou was also asked if he had ever made plans to travel overseas to join ISIS. Again, he answered falsely, “No, I didn’t.” Finally, Benkabbou was asked if he had ever pledged to ISIS. He falsely stated, “No, no I did not.”
According to evidence admitted during the detention hearing on January 19, 2023, Benkabbou swore an oath to support ISIS in January 2020, made plans to travel to Turkey and Syria to fight for ISIS, sent money to support ISIS, purchased airplane tickets in August 2020 and January 2021 (and later cancelled both tickets), and sent ISIS propaganda videos to others, including ISIS-sponsored videos showing executions of American allies fighting against ISIS. Benkabbou also sent a picture of himself dressed as an ISIS fighter with the statement, “Hey Crusaders hey Jews die within your rage.”
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Shawn P. Napier.
Download IndictmentJustice Department Commemorates National Stalking Awareness MonthRead the Press Release
The Justice Department joins survivors, victim services providers, justice professionals and others in recognizing the month of January as National Stalking Awareness Month (NSAM). According to the CDC, an estimated one in three women and one in six men experience stalking in their lifetimes. This NSAM, the department reaffirms its commitment to survivors by honoring and providing resources to those leading efforts in supporting survivors and preventing stalking crimes.
Today the Office on Violence Against Women (OVW), which provides grants to communities, and the Stalking Prevention Awareness and Resource Center (SPARC), held a virtual Strategies Showcase highlighting OVW grantees’ promising approaches to stalking investigations, services for survivors and training for law enforcement and prosecutors.
“The Justice Department is committed to using all its tools to address stalking,” said Associate Attorney General Vanita Gupta. “Survivors need justice and safety, and communities require resources to respond and prevent this crime. OVW’s grantees play a critical role, providing essential services and justice solutions in their communities.”
With the prolific misuse of the internet and other forms of technology as weapons against stalking victims, today’s Strategies Showcase further emphasizes the White House’s priority to eradicate technology-facilitated violence. Last June, President Biden established the White House Task Force to Address Online Harassment and Abuse, an interagency effort to increase prevention, response and protection measures for survivors.
OVW will release new grant solicitations in the coming months to further address stalking, domestic violence, sexual assault and dating violence. Funds will support states, communities, institutions of higher education, tribes and victim service providers. OVW encourages applicants to visit the website for anticipated release dates and prepare their grants early. Additional resources for applicants and how to apply for OVW funding can be found on OVW’s website.
“OVW’s grant programs fund innovative and successful strategies to end stalking and other forms of gender-based violence,” said OVW Acting Director Allison Randall. “By encouraging a coordinated community response, these grant programs forge meaningful partnerships of on-the-ground service providers, culturally specific organizations and everyone who works daily to keep survivors safe.”
Created in 1995, OVW provides leadership in developing the nation’s capacity to reduce violence through the implementation of VAWA and subsequent legislation. OVW administers financial and technical assistance to communities across the country that are developing programs, policies, and practices aimed at ending domestic violence, dating violence, sexual assault and stalking. In addition to overseeing federal grant programs, OVW undertakes initiatives in response to special needs identified by communities facing acute challenges. Learn more at www.justice.gov/ovw.
The OVW-funded Stalking Prevention, Awareness & Resource Center (SPARC) offers training to service providers and justice professionals on keeping stalking survivors safe and holding offenders accountable.
Jefferson County Woman Pleads Guilty in Return to Sender Drug Trafficking InvestigationRead the Press Release
PITTSBURGH, PA – A resident of Reynoldsville, Pennsylvania, pleaded guilty in federal court to violation of federal narcotics, firearms, and money laundering laws related to a nine-month Title III wiretap investigation into drug trafficking in and around the counties of Jefferson, Clearfield, and Allegheny, United States Attorney Cindy Chung announced today.
Kristy Lepionka, age 40, pleaded guilty to one count of conspiracy to distribute and possesses with intent to distribute 500 grams or more of a mixture and substance containing a detectable amount of methamphetamine, on count of conspiracy to commit money laundering, and one count of possession of a firearm by a convicted felon before United States District Judge Christy Criswell Wiegand. Lepionka was one of 47 defendants charged in six related indictments as part of the Return to Sender investigation.
In connection with the guilty plea, the court was advised that Lepionka received parcels that were shipped from California to the Western District of California containing a total of between 5 kilograms and 15 kilograms of methamphetamine. Investigators searched Lepionka’s residence on August 31, 2021, pursuant to a federal search warrant and seized over a small amount of methamphetamine and a firearm, which Lepionka is prohibited from possessing due to a prior felony conviction.
Judge Wiegand scheduled sentencing for Lepionka on May 18, 2023, at 1:00 p.m. The law provides for a sentence of not less than ten years to a maximum of life in prison, a fine not to exceed $10,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
The court ordered that the defendant remain on bond pending sentencing.
Assistant United States Attorneys Jonathan D. Lusty and Michael R. Ball are prosecuting this case on behalf of the government.
The Drug Enforcement Administration led the multi-agency investigation of this case, which also included the Homeland Security Investigations, United States Postal Service – Office of Inspector General, United States Postal Inspection Service, Internal Revenue Services, Pittsburgh Bureau of Police, Allegheny County Police, and Pennsylvania State Police. Also assisting were the Jefferson County District Attorney’s Office, Clearfield County District Attorney’s Office, and the Clarion Borough Police Department.
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
January 2023 Grand Jury for the District of NebraskaRead the Press Release
United States Attorney Steven Russell announced the federal Grand Jury for the District of Nebraska has returned 9 unsealed Indictments charging 13 defendants. Indictments are charging documents that contain one or more individual counts that are merely accusations, and every defendant is presumed innocent unless and until proven guilty.
* Tut Chuol, age 42, of Phoenix, Arizona; Kun Gach, age 38, of Omaha, Nebraska; and Tut Yual, age 40, of Des Moines, Iowa, are charged with conspiracy to distribute and possession with intent to distribute 40 grams or more of fentanyl on or about December 1, 2022. The penalty if convicted is not less than 5 years’ and up to 40 years’ imprisonment, a $5,000,000 fine, not less than four years and up to a life term of supervised release, and a $100 special assessment.
Contact Drug Enforcement Unit Chief Susan Lehr at 402-661-3700 for further information.
* Donald Fox, age 54, of Bayard, Nebraska, is charged in a five-count Indictment. Count I charges Fox with embezzlement and theft of labor union assets beginning on or about February 20, 2016 and continuing to on or about August 14, 2021. The maximum possible penalty if convicted is 5 years’ imprisonment, a $250,000 fine, a three-year term of supervised release, and a $100 special assessment. Counts II through V charge Fox with falsification of annual financial reports filed by a labor union beginning on or about March 20, 2017 and continuing to on or about March 31, 2020. The maximum possible penalty if convicted is 1 year imprisonment, a $10,000 fine, and a $100 special assessment.
Contact Criminal Chief Michael Norris at 402-661-3700 for further information.
* Eduardo Gonzalez-Moreno, age 23, is charged with possession with intent to distribute fentanyl on or about November 3, 2022. The penalty if convicted is 20 years’ imprisonment, a $1,000,000 fine, not less than three years and up to a life term of supervised release, and a $100 special assessment.
Contact Drug Enforcement Unit Chief Susan Lehr at 402-661-3700 for further information.
* Ricky Allen Kane, age 45, and Michele Marie Waters, age 55, both of Omaha, Nebraska, are charged in a two-count Indictment. Count I charges Kane and Waters with conspiracy to distribute and possession with intent to distribute 50 grams or more of methamphetamine (actual) on or about November 1, 2021 and continuing to on or about November 14, 2022. The penalty if convicted is not less than 10 years’ and up to life imprisonment, a $10,000,000 fine, not less than five years and up to a life term of supervised release, and a $100 special assessment. Count II charges Kane with distribution of fentanyl analogue resulting in death on or about August 22, 2022. The penalty if convicted is not less than 20 years’ and up to life imprisonment, a $10,000,000 fine, not less than five-years’ and up to a life term of supervised release, and a $100 special assessment.
Contact Drug Enforcement Unit Chief Susan Lehr at 402-661-3700 for further information.
* Ivan Lima-Olivarria, age 42, is charged with conspiracy to distribute and possession with intent to distribute 500 grams or more of methamphetamine on or about November 1, 2021 and continuing to on or about November 23, 2022. The penalty if convicted is not less than 10 years’ and up to life imprisonment, a $10,000,000 fine, not less than five years and up to a life term of supervised release, and a $100 special assessment.
There is also an allegation to forfeit $14,770 in United States currency and property seized on or about November 23, 2022.
Contact Drug Enforcement Unit Chief Susan Lehr at 402-661-3700 for further information.
* Nicholas Onate, age 33, of California, is charged with possession with intent to distribute fentanyl on or about July 9. 2022. The penalty if convicted is 20 years’ imprisonment, a $1,000,000 fine, not less than three years and up to a life term of supervised release, and a $100 special assessment.
Contact Drug Enforcement Unit Chief Susan Lehr at 402-661-3700 for further information.
* Isrrael Robledo-Cardenas, age 47, of Rising City, Nebraska, is charged in a two-count Indictment. Count I charges Robledo-Cardenas with possession with intent to distribute methamphetamine (actual) on or about November 15, 2022. The penalty if convicted is 20 years’ imprisonment, a $1,000,000 fine, not less than three years and up to a life term of supervised release, and a $100 special assessment. Count II charges Robledo-Cardenas with possession of a firearm during a drug trafficking crime on or about November 15, 2022. The penalty if convicted is not less than 5 years’ imprisonment up to life imprisonment consecutive to any other sentence, a $250,000 fine, a five-year term of supervised release, and a $100 special assessment.
Contact Drug Enforcement Unit Chief Susan Lehr at 402-661-3700 for further information.
* Luis Salazar-Cabrera, age 39, and Martin Caballero-Bringas, age 57, are charged in a two-count Indictment. Count I charges Salazar-Cabrera and Caballero-Bringas with conspiracy to distribute and possession with intent to distribute 400 grams or more of fentanyl and 500 grams or more of methamphetamine on or about March 1, 2022 and continuing to on or about October 19, 2022. The penalty if convicted is not less than 10 years’ and up to life imprisonment, a $10,000,000 fine, not less than five years and up to a life term of supervised release, and a $100 special assessment. Count II charges Salazar-Cabrera with possession with intent to distribute 400 grams or more of fentanyl on or about October 19, 2022. The penalty if convicted is not less than 10 years’ and up to life imprisonment, a $10,000,000 fine, not less than five-years’ and up to a life term of supervised release, and a $100 special assessment.
Contact Drug Enforcement Unit Chief Susan Lehr at 402-661-3700 for further information.
* Kevin Warsocki, age 31, of Omaha, Nebraska, is charged in a two-count Indictment. Count I charges Warsocki with possession with intent to distribute 10 grams or more of fentanyl on or about November 9, 2022. The penalty if convicted is not less than 5 years’ and up to 40 years’ imprisonment, a $5,000,000 fine, not less than four years and up to a life term of supervised release, and a $100 special assessment. Count II charges Warsocki with distribution of fentanyl analogue resulting in death on or about November 9, 2022. The penalty if convicted is not less than 20 years’ and up to life imprisonment, a $10,000,000 fine, not less than five-years’ and up to a life term of supervised release, and a $100 special assessment.
There is also an allegation to forfeit $1,034.00 in United States currency and property seized on or about November 9, 2022.
Contact Drug Enforcement Unit Chief Susan Lehr at 402-661-3700 for further information.
Jackson Man Pleads Guilty to Being a Convicted Felon in Possession of a FirearmRead the Press Release
Jackson, Miss. – A Jackson man pleaded guilty to being a convicted felon in possession of a firearm, announced U.S. Attorney Darren LaMarca and Special Agent in Charge Jermicha Fomby of the Federal Bureau of Investigation.
According to court documents, Shredewrick Davon Anderson, Jr., 25, was found in possession of a firearm by a Jackson Police Officer on March 24, 2022. Anderson has multiple prior felony convictions. As a convicted felon it is contrary to federal law for Anderson to possess any firearm.
On September 7, 2022, a federal grand jury indicted Anderson for possession of a firearm as a convicted felon.
Anderson will be sentenced on April 20, 2023 and faces a maximum penalty of ten years in prison and a $250,000 fine. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
This case was investigated by the FBI and the Jackson Police Department.
The case is being prosecuted by Assistant United States Attorney Jessica S. Terrill.
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.
J&J Subsidiary DePuy Agrees to Pay $9.75 Million to Resolve Allegations of Providing Illegal Kickbacks to SurgeonRead the Press Release
BOSTON – Johnson & Johnson, DePuy Synthes, Inc. and DePuy Synthes Sales, Inc. (collectively, DePuy) have agreed to pay approximately $9.75 million to resolve allegations that DePuy violated the Anti-Kickback Statute and the False Claims Act by providing free products to a Massachusetts-based surgeon (Surgeon) to induce the Surgeon to use DePuy products in his procedures.
DePuy manufactures and distributes medical devices, including spinal implants, and is headquartered in Raynham, Mass.
According to the settlement agreement, DePuy admits, acknowledges and accepts its responsibility for the facts underlying the government’s allegations. From at least July 2013 through February 2018, DePuy gave the Surgeon DePuy products, including implants and instruments, such as cages, rods, screws, plates and modular access and retraction systems. The Surgeon performed more than 20 surgeries over the course of multiple trips to six countries, specifically, Bahrain, Kingdom of Saudi Arabia, Kuwait, Lebanon, the United Arab Emirates and Qatar. In many of these surgeries, the Surgeon used DePuy products, worth thousands of dollars, that DePuy sales representatives had provided to him. The DePuy products that DePuy gave to the Surgeon were sometimes not available at the hospitals and/or with the third-party sales distributors in the countries where the Surgeon operated overseas. DePuy did not request or receive payment from the Surgeon, the hospitals, or the third-party sales distributors in the countries where the Surgeon operated overseas; nor did the Surgeon, the overseas hospitals, the third-party sales distributors, or anyone else, pay DePuy for the products that it gave to the Surgeon and the Surgeon used abroad.
The Anti-Kickback Statute (AKS) prohibits offering, paying, soliciting, or receiving remuneration to induce referrals of items or services covered by Medicare and other federally funded programs. The statute is intended to ensure that medical providers’ judgments are not compromised by improper financial incentives and are instead based on the best interests of their patients. The United States contends that DePuy knowingly and willfully provided free DePuy products, worth over $100,000, to the Surgeon for his overseas surgeries, to induce him to use DePuy’s products in spine surgeries he performed on Medicare and Medicaid patients in Massachusetts in violation of the AKS.
“Today the United States resolves allegations that DePuy provided over $100,000 worth of free product to a surgeon in order to secure and reward that physician’s continued business,” said United States Attorney Rachael S. Rollins. “Unlawful kickbacks can severely distort medical judgment as well as the market for medical devices. The millions of patients that depend on our health care system deserve untainted medical decisions. This settlement reflects our commitment to stamping out illegal kickbacks.”
“Medical device manufacturers are prohibited from providing free items to induce a physician to use their devices,” said Principal Deputy Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “When medical devices are used in surgical procedures, patients deserve to know that their device was selected based on quality of care considerations and not on improper benefits from manufacturers.”
“The American people, as both taxpayers and consumers, expect medical device manufacturers like DePuy to abide by relevant laws and regulations. When such health care companies provide illegal kickbacks in order to boost profits, their actions erode public confidence in the health care system, can compromise the patient-physician relationship, and waste government health program funding,” said Phillip M. Coyne, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General. “In close cooperation with our law enforcement partners, we will continue to thoroughly investigate allegations of fraud to protect both federal health care programs and those served by them.”
“Today’s settlement makes it crystal clear that it is illegal for medical device companies to provide physicians with free medical products to win business and boost their bottom line through illegal kickback schemes,” said Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigations, Boston Division. “Every year, health care fraud costs taxpayers billions of dollars. It is not a victimless crime and this unscrupulous scheme orchestrated by DePuy is just one example of how the FBI and our partners are working hard every day to protect both patients and taxpayers.”
The allegations resolved by the settlement agreement were originally brought in a case filed under the whistleblower, or qui tam, provisions of the False Claims Act. The case is captioned United States et al. ex rel. John Doe v. Johnson & Johnson, et al., (D. Mass. 2017). The whistleblower will receive approximately $1,852,500 from the recovery.
U.S. Attorney Rollins, HHS-OIG SAC Coyne and FBI SAC Bonavolonta made the announcement today. The VA OIG and FDA-OCI also provided assistance. Assistant U.S. Attorneys Jessica J. Weber, Andrew A. Caffrey, III and Abraham R. George of Rollins’s Affirmative Civil Enforcement Unit, and Senior Trial Counsel Benjamin C. Wei of the Department of Justice’s Civil Division handled this matter. The Commonwealth of Massachusetts was represented by Assistant Attorney General Kevin Lownds.
Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty:
Appearing in Billings before U.S. Magistrate Judge Timothy J. Cavan and pleading not guilty on Jan. 19 was:
Nicole Irene Corbin, 32, of Billings, on charges of bank fraud and aggravated identity theft. If convicted of the most serious crime, Corbin faces a maximum of 30 years in prison, a $1 million fine and five years of supervised release on the bank fraud crime and a mandatory minimum two years in prison, consecutive to any other sentence, a $250,000 fine and one year of supervised release on the aggravated identity theft crime. Corbin was detained pending further proceedings. The Billings Police Department investigated the case. PACER case reference. 22-151.
Appearing in Great Falls before U.S. Magistrate Judge John T. Johnston and pleading not guilty on Jan. 17 was:
Katie Elizabeth Bowlds, 39, of Helena, on charges of possession of stolen mail. If convicted of the most serious crime, Bowlds faces a maximum of five years in prison, a $250,000 fine and three years of supervised release. Bowlds was released pending further proceedings. The U.S. Postal Inspection Service investigated the case. PACER case reference. 22-10.
Brandon Wade Kurns, 28, of Helena, on charges of prohibited person in possession of a firearm. If convicted of the most serious crime, Kurns faces a maximum of 10 years in prison, a $250,000 fine and three years of supervised release. Kurns was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives and Montana Probation & Parole investigated the case. PACER case reference. 23-01.
The progress of cases may be monitored through the U.S. District Court Calendar and the PACER system. To establish a PACER account, which provides electronic access to review documents filed in a case, please visit http://www.pacer.gov/register.html. To access the District Court’s calendar, please visit https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Illinois Man Sentenced to 60 Months in PrisonRead the Press Release
HAMMOND – Tarrell Sims, 37 years old, of Country Club Hills, Illinois, was sentenced by United States District Court Judge Philip P. Simon after pleading guilty to two counts of Conspiracy to Commit Bank Fraud, announced United States Attorney Clifford D. Johnson.
Sims was sentenced to 60 months in prison followed by 2 years of supervised release and was ordered to pay $389,135.20 in restitution to the victim bank.
According to documents in the case, between November 2019 and February 2020, Sims directed a scheme to fraudulently obtain over $500,000 from the proceeds of two stolen business checks. Sims registered fictitious corporations in Indiana and opened fraudulent bank accounts with the assistance of two individuals whom he recruited. Sims and his co-conspirators successfully obtained over $380,000 from the bank fraud scheme.
Sim’s co-defendants have pleaded guilty and are awaiting sentencing.
This case was investigated by United States Postal Inspection Service and Lake County Sheriff’s Office, with assistance from the Federal Bureau of Investigation and the Federal Deposit Insurance Corporation Office of Inspector General. This case was prosecuted by Assistant United States Attorney Abizer Zanzi.
Illegal Possession of Firearms Sends Sulphur Man to Federal PrisonRead the Press Release
LAKE CHARLES, La. – Cornell Devon Shelton, 33, of Sulphur, Louisiana, was sentenced yesterday to 120 months in prison, followed by 3 years of supervised release, announced United States Attorney Brandon B. Brown. United States District Judge James D. Cain, Jr. conducted the sentencing hearing.
Shelton was charged in a bill of information with three counts of possession of a firearm by a convicted felon and he pleaded guilty to those charges on September 20, 2022. According to evidence presented to the court, Shelton, who has prior felony convictions, was found to be in possession of three different firearms on three separate occasions. On June 23, 2020, law enforcement officers with the Sulphur Police Department observed Shelton in the parking lot of a local motel conducting what appeared to be a narcotics transaction next to a vehicle. When the officer approached Shelton, he discovered Shelton was wearing a holster in his waistband and found a Taurus 9mm handgun on top of the driver’s seat of the vehicle which fit the holster he was wearing. The officer seized the firearm at that time.
On a second occasion on September 1, 2020, detectives with the Jefferson Parish Sheriff’s Office noticed an occupied vehicle at the Sulphur Truck Stop and Casino which was in violation of the mandated curfew following Hurricane Laura. Shelton was in the vehicle with two other passengers and had a Diamondback .308 rifle inside the vehicle. Further investigation by deputies revealed that the firearm had been reported stolen.
The third incident occurred on March 21, 2021, when a deputy with the Calcasieu Parish Sheriff’s Office conducted a traffic stop of a vehicle being driven by Shelton. Shelton gave his consent for the vehicle to be searched and the deputy found a Beretta 9mm pistol located between the driver’s seat and console. Agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) test fired each firearm and determined each was a working firearm.
Shelton knew that as a convicted felon he was prohibited from possessing any firearm or ammunition. His prior convictions are for deadly conduct - discharging a firearm in direction of an individual (2013), possession of controlled substance with intent to distribute (2015), and possession of a controlled substance (2017).
The case was investigated by the ATF, Calcasieu Parish Sheriff’s Office, Jefferson Davis Parish Sheriff’s Office, and Sulphur Police Department, and prosecuted by Assistant U.S. Attorney LaDonte A. Murphy.
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Head of Fort Worth Drug Trafficking Organization ChargedRead the Press Release
The head of a Fort Worth drug trafficking operation and his associate have been federal charged, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Leeroy Marquee Jones, aka Aladdin, 32, and Christopher Antwuan George, 21, were charged via criminal complaint with conspiracy to possess with intent to distribute controlled substances, a federal crime.
During their arrest, Demarcus Taylor, a federal fugitive previously charged with conspiracy to possess with intent to distribute controlled substances, was also arrested.
According to the complaint, Mr. Jones was identified as the head of a drug trafficking organization that dealt fentanyl, cocaine, heroin, methamphetamine, and marijuana in Fort Worth’s “stop six” neighborhood. He was allegedly a multi-kilogram distributor.
On Jan. 19, enforcement executed search warrants at three stash houses allegedly run by Mr. Jones and seized 500 grams of suspected fentanyl, 400 grams of suspected methamphetamine, 16 firearms, and a large amount of U.S. currency.
- DEA Fort Worth Special Agent in Charge Eduardo A. Chávez“Seeking justice and a safe community is a team effort. Through our partnership with the Hood County Sheriff’s Office and the Fort Worth Police Department, guns and drugs, including thousands of potential deadly doses of fentanyl, are off our streets. Violent criminal drug networks poisoning our neighborhoods will be held accountable. You cannot hide.”
A criminal complaint is merely an allegation of criminal conduct, not evidence. Both defendants are presumed innocent until proven guilty in a court of law.
If convicted, they face up 10 years to life in federal prison.
The Drug Enforcement Administration’s Fort Worth District Office, the Hood County Sherriff’s Office, and the Fort Worth Police Department conducted the investigation. Assistant U.S. Attorney Laura Montes is prosecuting the case.
Guatemalan Man Sentenced for Selling Counterfeit DocumentsRead the Press Release
United States Attorney Steven Russell announced that Domingo Zacarias Ciprian, 42, formerly of Grand Island, Nebraska, was sentenced today in federal court in Omaha, Nebraska by Chief United States District Judge Robert F. Rossiter, Jr. for unlawful transfer of a document or authentication feature. Ciprian was sentenced to 15 months’ imprisonment. There is no parole in the federal system. After his release from prison, Ciprian will begin a 1-year term of supervised release. Ciprian is a citizen of Guatemala and will be deported after serving his sentence.
Through information gathered from previous investigations, law enforcement learned that Ciprian was selling counterfeit documents. On September 21, 2021, investigators made an undercover purchase from Ciprian of fraudulent documents to include a Social Security card and Nebraska Driver’s License. Ciprian was provided a down payment for the documents through MoneyGram, and he used his address and phone number to pick it up the payment. Following the purchase, investigators secured a warrant to search the Ciprian’s residence in Grand Island. The search on November 3, 2021, yielded 92 counterfeit documents, many of which appear to have been issued by or under the authority of the United States, as follows: 52 Social Security cards; 31 state identification cards/driver’s licenses; 1 Permanent Resident Card; and 8 birth certificates. Ciprian forfeited $6,640.00 in proceeds from his document trafficking operation.
This case was investigated by Homeland Security Investigations.
Greenville Man Sentenced to 5 Years in Federal Prison for Possession of Child PornographyRead the Press Release
GREENVILLE, SOUTH CAROLINA — Jason Dwayne Holley, 40, of Greenville, was sentenced to 5 years in federal prison and lifetime supervised release after pleading guilty to possession of child pornography.
Evidence presented to the Court showed that Holley was released from federal prison on August 30, 2022, after serving a sentence for possession of child pornography. Within a matter of weeks, the U.S. Probation Office found that Holley possessed two images of child pornography on his phone and was conducting searches on his phone for child pornography. A warrant was issued, and Holley was arrested on September 26, 2022 – less than one month from his release from prison.
United States District Judge Bruce Howe Hendricks sentenced Holley to 60 months in prison, to be followed by a life term of court-ordered supervision. There is no parole in the federal system.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the U.S. Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc.
This case was investigated by Homeland Security Investigations (HSI). Assistant U.S. Attorney Jamie Lea Schoen is prosecuting the case.
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Former Operations and Marketing Director at Lifeway Credit Union Sentenced to Federal PrisonRead the Press Release
NASHVILLE - The former Operations and Marketing Director of Lifeway Credit Union in Nashville was sentenced today to 27 months in federal prison, announced U.S. Attorney Henry C. Leventis for the Middle District of Tennessee.
Monica Jackson, 43, of Murfreesboro, Tennessee, was charged in October 2021 with embezzling over $242,000 from Lifeway Credit Union. Jackson was part of the management team and oversaw the credit union’s operating activities, including lending decisions and the decision to order cash. She also had access to Lifeway Credit Union’s cash vault.
Between October 2016 and February 2021, Jackson embezzled approximately $242,156 from the credit union using a variety of methods, including by stealing cash out of the vault. Jackson also opened lines of credit in the names of family members and then transferred funds to accounts she controlled.
Jackson also made fraudulent transfers totaling $27,435 to herself from the account of a deceased credit union member. She used her administrative authority to lock access to the accounts she was using to commit the fraud so that other bank employees could not see those accounts.
Jackson was ordered to pay restitution in the amount of $242,156.00 which represents the proceeds of the crime.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Kathryn W. Booth prosecuted the case.
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Former Los Angeles City Politician José Huizar Pleads Guilty to Racketeering Conspiracy and Tax Evasion ChargesRead the Press Release
LOS ANGELES – Former Los Angeles City Councilmember José Huizar pleaded guilty today to federal criminal charges for using his powerful position at City Hall to enrich himself and his associates, and for cheating on his taxes.
Huizar, 54, of Boyle Heights, pleaded guilty to one count of conspiracy to violate the Racketeer Influenced and Corrupt Organizations (RICO) Act and one count of tax evasion. The plea agreement was filed Thursday in United States District Court.
Huizar represented Council District 14 (CD-14), which includes downtown Los Angeles and its surrounding communities, from 2005 until his resignation in 2020.
In his plea agreement, Huizar admitted to leading the CD-14 Enterprise, which operated as a pay-to-play scheme in which Huizar – assisted by others – unlawfully used his office to give favorable treatment to real estate developers who financed and facilitated bribes and other illicit financial benefits.
Specifically, Huizar and other city officials demanded and accepted cash bribes, casino gambling chips, prostitution and escort services, political contributions, flights on private jets and commercial airlines, stays at luxury hotels and casinos, expensive meals, tickets to concerts and sporting events, and other benefits.
Huizar also admitted to accepting a $600,000 bribe in the form of collateral from a billionaire real estate developer for Huizar to confidentially settle a pending sexual harassment lawsuit against Huizar by a former staffer.
“Huizar has admitted to orchestrating a racketeering scheme that enriched himself and others as they sought to monopolize political power at the expense of Los Angeles residents,” said United States Attorney Martin Estrada. “This is one of the most wide-ranging and brazen public corruption cases ever uncovered in this district, demonstrating that our office will use all the tools of the federal government to vigorously prosecute crooked politicians whose betrayal of the public trust significantly erodes confidence in our local government.”
“Mr. Huizar's actions, to include accepting a staggering amount of bribe money and lavish gifts, eroded the trust in the office he held for many years,” said Donald Alway, the Assistant Director in Charge of the FBI's Los Angeles Field Office. “Angelenos deserve better than being used for the personal enrichment of politicians grifting the system and foreign investors whose currency is corruption. I'm proud of the investigators and prosecutors whose hard work led to today's admission of guilt.”
Huizar led the CD-14 Enterprise from at least February 2013 until July 2020, including for several years when he chaired the city’s Planning and Land Use Management (PLUM) Committee, which oversaw major commercial and residential development projects in the city.
Members and associates of the CD-14 Enterprise also included lobbyists, consultants, and other city officials and staffers, who sought to personally enrich themselves and their families and associates in exchange for official acts. These members included George Esparza, Huizar’s former special assistant, real estate development consultant George Chiang, political fundraiser Justin Jangwoo Kim, and lobbyist Morrie Goldman, among others. Each of these individuals has pleaded guilty in this case, is cooperating with the government’s investigation, and awaits sentencing.
The enterprise’s members and associates raised and solicited funds from developers and their proxies with projects in CD-14 to be paid to Huizar’s desired accounts and political action committees, including to benefit a Huizar relative’s campaign for the CD-14 seat.
In exchange for these benefits, Huizar, Esparza and other city officials agreed to perform and performed official acts, including:
- presenting motions and resolutions in various city committees to benefit projects;
- voting on projects in various city committees, including the PLUM Committee, and City Council;
- taking, or not taking, action in the PLUM Committee to expedite or delay the approval process and affect project costs;
- exerting pressure on city officials to influence the approval and/or permitting process of projects;
- using their office to negotiate with and exert pressure on labor unions to resolve issues on projects;
- leveraging voting and scheduling power to pressure developers with projects pending before the city to affect their business practices; and
- introducing or voting on city resolutions to enhance the professional reputation and marketability of businesspersons in the city.
In return for Huizar pleading guilty to the two felony counts, prosecutors have agreed to seek no more than 13 years in prison for Huizar, who also has agreed to forfeit $129,000 in cash that law enforcement found during a law enforcement search of his home in November 2018. The government also intends to seek more than $1 million in restitution on the city’s behalf.
As part of the plea agreement, Huizar has agreed to seek a sentence of no less than nine years in prison.
United States District Judge John F. Walter scheduled an April 3 sentencing hearing for Huizar.
The plea agreement is “binding,” which means the court must accept or reject all aspects of it. Should the court reject the plea agreement, any party may withdraw from it. Judge Walter said at today’s hearing that he would make that decision prior to Huizar’s sentencing date.
In June 2022, real estate developer Dae Yong Lee, a.k.a. “David Lee,” 57, of Bel Air and one of his companies, 940 Hill LLC, were found guilty of providing $500,000 in cash to Huizar and Esparza in exchange for their help in resolving a labor organization’s appeal of their downtown Los Angeles development project. Both defendants are scheduled to be sentenced on May 5.
In November 2022, downtown Los Angeles-based company Shen Zhen New World I LLC was found guilty of eight felonies for – through the actions of its owner, billionaire real estate developer and fugitive Wei Huang, 57, of Shenzhen, China – paying more than $1 million in bribes – including luxury trip expenses, casino gambling chips and the $600,000 sham loan – to Huizar to obtain city approval to build a 77-story skyscraper. The company’s sentencing hearing is scheduled for May 12. Huang, who is charged with several felonies, has yet to make a court appearance in this case and is considered a fugitive believed to be in China.
On February 21, former Los Angeles deputy mayor and co-defendant Raymond She Wah Chan, 66, of Monterey Park, is scheduled to go on trial. Chan, who is accused of being a member of the corrupt CD-14 Enterprise, has pleaded not guilty to charges of RICO conspiracy, bribery, honest services fraud and lying to federal agents.
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.
In a related case, Huizar’s brother, Salvador Huizar, 56, of Boyle Heights, pleaded guilty in October 2022 to lying to federal investigators and a federal grand jury about accepting cash from his brother on numerous occasions in exchange for paying certain of Huizar’s bills. Salvador Huizar’s sentencing hearing is scheduled for May 15.
The FBI is investigating this matter, with assistance from IRS Criminal Investigation.
Assistant United States Attorney Mack E. Jenkins, Chief of the Criminal Division, and Assistant United States Attorneys Cassie D. Palmer, Susan S. Har, and Brian R. Faerstein of the Public Corruption and Civil Rights Section, are prosecuting this case.
Any member of the public who has information related to this or any other public corruption matter in the City of Los Angeles is encouraged to send information to the FBI’s tip line at tips.fbi.gov or to contact the FBI’s Los Angeles Field Office at (310) 477-6565.
Former Firefighter Sentenced to Eight Years in Prison for Transportation of Child PornographyRead the Press Release
Des Moines, IA – A West Des Moines man was sentenced yesterday to eight years in federal prison for transportation of child pornography.
According to court documents, James Dean Gathercole, age 55 of West Des Moines, knowingly uploaded an image of child pornography to a 72-member Internet group chat room in May 2020. Gathercole also knowingly possessed at least five videos and two images of child pornography on his cellular phone in September 2020.
As recently as 2020, Gathercole was employed as a firefighter at departments in the Des Moines metro area.
In addition to his term of imprisonment, Gathercole was ordered to serve a term of supervised release of seven years and pay a total of $40,000 in fines and a $100 special assessment.
U.S. Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. Homeland Security Investigations investigated the case.This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa as part of the U.S. Department of Justice’s “Project Safe Childhood” initiative, which was started in 2006 as a nationwide effort to combine law enforcement investigations and prosecutions, community action, and public awareness in order to reduce the incidence of sexual exploitation of children. For more information about Internet safety education, please visit https://www.justice.gov/psc and click on the resources tab.
Former Correctional Officer Convicted After Seven-Day Trial for a Racketeering Conspiracy to Smuggle Contraband into Maryland’s Chesapeake Detention FacilityRead the Press Release
Baltimore, Maryland – A federal jury yesterday convicted former Correctional Officer Andre Davis, a/k/a “2 Chainz,” age 37, of Baltimore, for a racketeering conspiracy at the Chesapeake Detention Facility (CDF), in Baltimore, Maryland, after a seven-day trial. Two other correctional officers (COs), four detainees, and two outside “facilitators” previously pleaded guilty to their roles in the conspiracy, which involved paying bribes to correctional officers to smuggle contraband, including narcotics, tobacco, and cell phones, into the prison.
The guilty verdict was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office; and Secretary Carolyn J. Scruggs of the Maryland Department of Public Safety and Correctional Services.
According to court documents and the evidence presented at trial, CDF is run by the Maryland Department of Public Safety and Correctional Services (DPSCS) pursuant to a contract with the United States Marshals Service (USMS) and is primarily used for the housing of federal pretrial detainees. CDF is a maximum-security prison that houses approximately 500 male and female detainees. There are six housing areas, or “pods” in CDF.
The evidence showed that from at least 2016, Davis, along with other employees, detainees and associates of CDF, participated in a conspiracy to smuggle contraband into CDF, including narcotics, cell phones, and tobacco. According to the evidence at trial, Davis abused his position of trust as sworn officer of DPSCS by engaging in illegal activities to enrich himself.
According to the trial testimony, Davis smuggled contraband into CDF for multiple detainees, including co-defendants Donte Thomas, Andre Webb, and Bernard Bey. At the direction of the detainees, Davis met with outside facilitators to receive contraband and bribe payments. The evidence showed that Davis smuggled Suboxone, tobacco, and cellular telephones and communication devices into CDF, in exchange for bribes.
As detailed during the trial, the defendant detainees and facilitators paid Davis and his co-defendant COs for smuggled contraband using cash and electronic payment platforms, including Cash App.
Davis faces a maximum sentence of 20 years in prison for the racketeering conspiracy. U.S. District Judge George L. Russell, III, has scheduled sentencing for April 3, 2023, at 9:30 a.m.
United States Attorney Erek L. Barron commended the FBI and DPSCS for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Peter J. Martinez and Robert I. Goldaris, who are prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Federal agent sent to prison for aiding drug smugglingRead the Press Release
McALLEN, Texas – A former Border Patrol (BP) agent has been ordered to federal prison for attempting to aid and abet smuggling cocaine through a checkpoint, announced U.S. Attorney Alamdar S. Hamdani.
Oberlin Cortez Pena Jr., 23, La Joya, pleaded guilty Dec. 17, 2021.
Today, U.S. District Judge Randy Crane sentenced him to a total of 121 months in federal prison to be immediately followed by five years of supervised release.
At the hearing, the court heard additional evidence that he had brandished an AR-15 rifle while meeting with co-defendant Edwin Alejandro Castillo to plan the smuggling of a second load of cocaine through the Falfurrias BP checkpoint. Pena attempted to convince the court that he possessed the rifle because he was on his way to hunt hogs after meeting Castillo.
In handing down the sentence, the court found Pena’s explanation unconvincing and assessed a sentencing enhancement for possession of a firearm during drug trafficking. The court further noted that honest law enforcement is the foundation of civil society, and the presence of a corrupt agent, especially at the BP checkpoint, could lead to immeasurable damage to the country.
“Honest law enforcement is a cornerstone of public trust,” said Hamdani. “This defendant violated his oath to defend the Constitution, and he betrayed that trust to engage in criminal activity for financial gain. Today’s sentence is a message that we will aggressively investigate and prosecute allegations of law enforcement corruption and continue to seek significant sentences when necessary to protect the public and their trust in our institutions.”
At the time of his plea, Pena admitted that on two separate occasions, he helped smuggle over five kilograms of cocaine through the Falfurrias checkpoint. Specifically, he used his knowledge as a BP agent and directed loads through particular checkpoint lanes, further acting as a scout and providing information about the inspection lanes and which one to use. Pena also gave detailed instructions on how to conceal the drugs and tactics to employ in order to distract the canine unit at the checkpoint.
Four others have been convicted as part of the investigation. Kristian Nicole West, 33, Corpus Christi, and Herbey Jose Solis III, 29, Mission, pleaded guilty to alien smuggling.
Castillo, 24, Sullivan City, and Jose Luis Duran, 26, Mission, admitted to alien smuggling. At the time of their pleas, Castillo also admitted to bribery, while Duran was also convicted of conspiracy to commit bribery. They each received 36 months in prison.
Previously released on bond, Pena was taken into custody in December 2022 after he was found possessing a firearm at a ranch. He will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Department of Homeland Security - Office of Inspector General conducted the investigation with assistance from Customs and Border Protection - Office of Professional Responsibility and BP. Assistant U.S. Attorneys Jongwoo Chung and John Pearson prosecuted the case.
Federal Grand Jury Indicts Two on Fraud ChargesRead the Press Release
Louisville, KY – A federal grand jury in Louisville, Kentucky, returned an indictment on January 18, 2023, charging Yeniseis Saavedra and Alien Saavedra with conspiracy to commit wire fraud and disaster fraud and Yeniseis Saavedra with filing a false statement, disaster fraud and aggravated identity theft.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky, Special Agent in Charge Andrea M. Kropf of the Department of Transportation Office of Inspector General, Midwestern Region, and U.S. Postal Inspector in Charge Lesley Allison of the Pittsburgh Division made the announcement.
According to the indictment, Yeniseis Saavedra, 32, and Alien Saavedra, 33, of Louisville, Kentucky, were charged with one count of conspiracy to commit wire fraud and one count of aiding and abetting disaster fraud. The indictment charges both with conspiring to defraud factoring (trucking loan) companies by submitting false bills of lading. The indictment also charges both with filing for lost wage assistance payments authorized by a Presidential Memorandum resulting from the COVID-19 pandemic with the Kentucky Office of Unemployment. The filing for lost wage assistance payments were on behalf of Alien Saavedra and failed to report that Alien Saavedra was receiving wages from the motor carrier industry.
Yeniseis Saavedra was also charged with making a false statement to the United States Department of Transportation, Federal Motor Carrier Safety Administration when she falsely filed an application on behalf of another, C.S., claiming that C.S. was going to operate a trucking company. However, C.S. was not aware of the application filing, and Yeniseis Saavedra was operating the company.
Yeniseis Saavedra was also charged with disaster fraud for filing for lost wage assistance payments authorized by a Presidential Memorandum resulting from the COVID-19 pandemic with the Kentucky Office of Unemployment on behalf of C.S. Again, C.S. was unaware of the filing, this time for lost wage assistance payments, and C.S. did not receive any of the lost wage payments. Instead, the lost wage payments were sent to a bank account controlled by Yeniseis Saavedra.
Lastly, Yeniseis Saavedra was charged with aggravated identity theft for using the identity and social security number of C.S. without C.S.’s authorization to obtain the lost wage assistance payments.
Yeniseis Saavedra and Alien Saavedra made their initial court appearances this week before a U.S. Magistrate Judge in the U.S. District Court for the Western District of Kentucky. If convicted, Yeniseis Saavedra faces a mandatory minimum sentence of 2 years in prison and a maximum sentence of 87 years in prison, and Alien Saavedra faces a maximum sentence of 50 years in prison. A federal district court judge will determine any sentence after considering the sentencing guidelines and other statutory factors. There is no parole in the federal system.
This case is being investigated by the United States Department of Transportation Office of Inspector General and the United States Postal Inspection Service with the assistance of the United States Department of Labor.
Assistant U.S. Attorney Joe Ansari is prosecuting this case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Eastern PA Woman Pleads Guilty to Possessing Drugs in Butler Hotel RoomRead the Press Release
PITTSBURGH, PA – A former resident of Upper Darby, Pennsylvania, was convicted of a possessing with intent to distribute a quantity of a mixture and substance containing a detectible amount of heroin and a detectible amount of fentanyl, and a quantity of a mixture and substance containing a detectible amount of cocaine, United States Attorney Cindy K. Chung announced today.
Shameekha Mu-Min, 31, pleaded guilty to one count before United States District Judge Robert J. Colville.
In connection with the guilty plea, the Court was advised that, on June 24, 2020, during a search of a hotel room in Butler, Pennsylvania, in which Mu-Min was located, investigators recovered multiple cell phones on Mu-Min’s bed, a grinder with residue, and $3,920.00 of drug-trafficking proceeds. During a subsequent search of Mu-Min’s person, investigators recovered approximately 4.824 grams of a mixture and substance containing a detectible amount of cocaine, a Schedule II controlled substance, and 3.029 grams of a mixture and substance containing detectible amounts of fentanyl, a Schedule II controlled substance, and heroin, a Schedule I controlled substance.
udge Colville scheduled sentencing for May 12, 2023, at 3:00 p.m. The law provides for a total sentence of not more than 20 years in prison, a fine of up to $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorneys Yvonne M. Saadi and Craig W. Haller are prosecuting this case on behalf of the government.
The Pennsylvania State Police, the Federal Bureau of Investigation, and the Butler County District Attorney’s Drug Task Force led the investigation leading to the conviction in this case.
Eagle Butte Man Indicted for Assault Resulting in Serious Bodily InjuryRead the Press Release
PIERRE - United States Attorney Alison J. Ramsdell announced that an Eagle Butte, South Dakota, man has been indicted by a federal grand jury for Assault Resulting in Serious Bodily Injury and Assault with a Dangerous Weapon.
Peyton James Jewett, age 34, was indicted in January of 2023. He appeared before U.S. Magistrate Judge Mark A. Moreno on January 17, 2023, and pleaded not guilty.
The maximum penalty upon conviction for Assault Resulting in Serious Bodily Injury or Assault with a Dangerous Weapon is 10 years in federal prison and/or a $250,000 fine, three years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges Jewett assaulted another person on August 13, 2022, with shod feet and a bat, resulting in serious bodily injury. This conduct occurred in Ziebach County, South Dakota.
These charges are merely accusations and Jewett is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Carl Thunem is prosecuting the case.
Jewett has been remanded to the custody of the U.S. Marshals Service pending trial.
Drug Trafficker Pleads Guilty to Selling Fatal FentanylRead the Press Release
The drug dealer who sold the fentanyl that killed an Abilene man pleaded guilty this week to a federal drug crime, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Elijah James Perez, 21, was indicted in September 2022. He pleaded guilty Tuesday to distribution of fentanyl resulting in death.
- U.S. Attorney Leigha Simonton“Fentanyl has shattered far too many lives. And far too often, users don’t understand that the pills they’re ingesting are laced with this deadly drug. Let this case be a warning to drug dealers throughout Texas: If you sell the fentanyl that causes an overdose death, we will hold you accountable to the fullest extent of the law.”
According to court documents, Mr. Perez admits that he sold fentanyl to a victim, identified in court documents as J.W., on Feb. 11, 2022.
The following day, J.W. was found nonresponsive on his bed. After 40 minutes of attempted resuscitation, he was pronounced dead on scene.
Witnesses told law enforcement they believed J.W. had ingested Percocet, but an autopsy found that J.W. died from the toxic effects of fentanyl.
According to plea papers, Mr. Perez admits that approximately three days before J.W.’s death, Mr. Perez offered to sell him “5 percs.” Three days later, Mr. Perez met with J.W. outside his home around 10 p.m. to make the sale. The pills were laced with fentanyl.
Six minutes later, J.W. texted his girlfriend that he’d received some “percs” that were “hella strong.” Hours later, he was dead of an overdose.
- DEA Dallas Field Division Special Agent in Charge, Eduardo A. Chávez“The consequences of trafficking drugs is real. The deadly effects of fentanyl have claimed the lives of two people: one who we will never get back and another who will spend years in prison as a result. Families are forever changed. The DEA will continue to investigate these crimes with a relentless pursuit of justice and accountability for the criminal organizations that distribute these deadly drugs.”
If the federal district judge accepts his plea of guilty, Mr. Perez faces a mandatory minimum sentence that includes 20 years in federal prison. A sentencing date has not yet been set.
The Drug Enforcement Administration’s Dallas Field Office and the Abilene Police Department conducted the investigation. Assistant U.S. Attorney Matt Tusing is prosecuting the case.
DePuy Synthes, Inc. Agrees to Pay $9.75 Million to Settle Allegations Concerning Kickbacks Paid to Massachusetts Orthopedic SurgeonRead the Press Release
Medical device manufacturer DePuy Synthes, Inc. (DePuy), a subsidiary of Johnson & Johnson, has agreed to pay $9.75 million to resolve allegations it violated the False Claims Act by paying kickbacks to an orthopedic surgeon based in Massachusetts to induce his use of DePuy products.
The settlement announced today resolves allegations that DePuy violated the Anti-Kickback Statute (AKS) and caused the submission of false or fraudulent claims to Medicare by paying the orthopedic surgeon kickbacks in the form of free spinal implants and tools for use in surgeries that the surgeon performed overseas to induce that surgeon to use DePuy products in surgeries performed in the United States. As part of the settlement, DePuy has admitted that from at least July 2013 through February 2018, DePuy, acting through certain former sales representatives, gave the Massachusetts surgeon thousands of dollars’ worth of free DePuy implants and instruments, including cages, rods, screws, plates, and surgical instrumentation, that the surgeon used to perform surgeries overseas for patients who were not federal health care beneficiaries. Of the $9.75 million to be paid by DePuy, approximately $7.23 million will be returned to the federal government, and approximately $2.52 million will be returned to Massachusetts, which jointly funded claims for surgeries involving DePuy devices that were submitted to the Massachusetts Medicaid program.
The AKS prohibits offering, paying, soliciting, or receiving remuneration to induce referrals of items or services covered by Medicare and other federally funded programs. The statute is intended to ensure that medical providers’ judgments are not compromised by improper financial incentives and are instead based on the best interests of their patients.
“Medical device manufacturers are prohibited from providing free items to induce a physician to use their devices,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “When medical devices are used in surgical procedures, patients deserve to know that their device was chosen based on quality of care considerations and not on improper inducements from manufacturers.”
“Today the United States resolves allegations that DePuy provided over $100,000 worth of free product to a surgeon in order to secure and reward that physician’s continued business,” said U.S. Attorney Rachael S. Rollins for the District of Massachusetts. “Unlawful kickbacks can severely distort medical judgment as well as the market for medical devices. The millions of patients that depend on our health care system deserve untainted medical decisions. This settlement reflects our commitment to stamping out illegal kickbacks.”
“The American people, as both taxpayers and consumers, expect medical device manufacturers like DePuy to abide by relevant laws and regulations. When such health care companies provide illegal kickbacks in order to boost profits, their actions erode public confidence in the health care system, can compromise the patient-physician relationship, and waste government health program funding,” said Special Agent in Charge Phillip M. Coyne of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG). “In close cooperation with our law enforcement partners, we will continue to thoroughly investigate allegations of fraud to protect both federal health care programs and those served by them.”
“Today’s settlement makes it crystal clear that it is illegal for medical device companies to provide physicians with free medical products to win business and boost their bottom line through illegal kickback schemes,” said Special Agent in Charge Joseph R. Bonavolonta of the FBI Boston Division. “Every year, health care fraud costs taxpayers billions of dollars. It is not a victimless crime and this unscrupulous scheme orchestrated by DePuy is just one example of how the FBI and our partners are working hard every day to protect both patients and taxpayers.”
The lawsuit was originally filed under the qui tam or whistleblower provisions of the False Claims Act by Aleksej Gusakovs, who is a former sales representative for DePuy. Under those provisions, private parties, known as relators, can file an action on behalf of the United States and receive a portion of the recovery. The qui tam case is captioned United States et al. ex rel. John Doe v. Johnson & Johnson, et al., No. 17-cv-11502 (D. Mass.). As part of today’s resolution, Gusakovs will receive approximately $1.37 million.
The settlement was a result of a coordinated effort between the Civil Division’s Commercial Litigation Branch (Fraud Section) and the U.S. Attorney’s Office for the District of Massachusetts. The HHS-OIG provided investigative support.
The government’s pursuit of these matters illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services, at 800‑HHS‑TIPS (800-447-8477).
The matter was handled by Senior Trial Counsel Benjamin C. Wei of the Civil Division and Assistant U.S. Attorneys Jessica Weber and Andrew Caffrey for the District of Massachusetts.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Dallas Man Convicted of Federal Drug Trafficking Violations in Eastern District of TexasRead the Press Release
SHERMAN, Texas – A Dallas man has been convicted of federal drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Eric R. Roberts, 51, was convicted of multiple federal violations, including continuing criminal enterprise; conspiracy to possess with intent to distribute marijuana; conspiracy to commit money laundering; and possession of a firearm in furtherance of a drug trafficking crime. Roberts was found guilty by a jury following a 10-day trial before U.S. District Judge Amos Mazzant.
The jury also returned a verdict for criminal forfeiture of a large amount of property seized from Roberts, including 37 firearms, 8 vehicles, and $436,295 in US currency.
Four additional co-defendants - Ronald Lewis McGuire, Lowell Eugene Sargent, Philip S. Lala, and Christopher Shaun Ragle - were found guilty by the same jury of conspiracy to possess with intent to distribute marijuana and conspiracy to commit money laundering. The jury found that all five defendants were individually responsible for 1000 kilograms or more of a mixture or substance containing a detectable amount of marijuana.
According to information presented in court, Roberts was a leader of a large-scale national drug trafficking organization spanning several years, with McGuire, Sargent, Lala, and Ragle acting as drivers.
Roberts was indicted by a federal grand jury on April 15, 2021. He faces up to life in federal prison at sentencing. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing 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 U.S. Probation Office.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
This case was investigated by the Drug Enforcement Administration and the Mesquite Police Department and prosecuted by Assistant U.S. Attorneys Brent L. Andrus and Ernest Gonzalez.
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Colorado Man Sentenced to Federal Prison for Role in Money Laundering ConspiracyRead the Press Release
DENVER – The United States Attorney’s Office for the District of Colorado announces James Albert Witte, age 69, formerly of Wray, Colorado, was sentenced to 26 months in federal prison for conspiracy to commit money laundering. Witte was also ordered to serve three years of supervised release and pay $763,089.21 in restitution to the victims of the scheme.
According to the plea agreement in the case, from January of 2020 until September of 2020, the defendant was part of a conspiracy to launder funds obtained from a government official impersonation scheme. Victims were contacted by telephone and coerced into believing they were under investigation by “agents” of federal law enforcement agencies (the FBI, SSA, DHS, Treasury, or DEA). It was further part of the conspiracy that the conspirators told these victims that their identities had been connected to a criminal incident, their imminent arrest and/or deportation from the United States had been ordered by law enforcement, and that the only way to avoid arrest and or deportation was to pay the “Government” large sums of money, as instructed. The victims were instructed to withdraw cash from their bank accounts and mail the cash to various addresses, which turned out to be Walgreens stores in northeastern Colorado. Witte’s role in the scheme was to use fake identification cards provided to him by a conspirator to pick up victims’ packages of cash mailed to the Walgreens stores. He used some of the cash to purchase money orders, which one of his codefendants then deposited into third-party accounts. The cash contained in 33 packages picked up by Witte, the shipping costs for those packages, and shipping costs for another 15 packages that were either intercepted by law enforcement or a victim, resulted in a loss to the victims of $763,089.21. Witte received a percentage of the cash in each package he picked up.
Judge Raymond P. Moore sentenced the defendant on January 20, 2023.
This investigation was conducted jointly with investigators from the Social Security Administration (SSA) Office of Inspector General (OIG), United States Postal Inspection Service, Department of Homeland Security-OIG, Homeland Security Investigations (HSI), and the Sterling, Colorado Police Department. The District Attorney for the 13th Judicial District also provided assistance. This case was prosecuted by Assistant U.S. Attorneys Martha A. Paluch and Laura Hurd.
CASE NUMBER: 22-cr-00202
Clearfield Man Pleads Guilty to Conspiring to Distribute MethamphetamineRead the Press Release
JOHNSTOWN, Pa. – A resident of Clearfield, PA pleaded guilty in federal court to charges of violating federal narcotics laws, United States Attorney Cindy K. Chung announced today.
Toby Lee Coker, age 37, of Clearfield, PA, pleaded guilty to Counts Two and Eight of the Superseding Indictment before Senior United States District Judge Kim R. Gibson.
In connection with the guilty plea, from July 2019 to June 2020, Coker did conspire to distribute and possess with the intent to distribute 500 grams or more of a mixture and substance containing a detectable amount of methamphetamine. Further, on or about February 20, 2020, Coker did distribute a quantity of methamphetamine.
Judge Gibson scheduled sentencing for May 30, 2023. The law provides for a minimum sentence of 15 years in prison and maximum sentence of life in prison, a fine of $20,000,000 or both, for Count Two and a maximum sentence of 30 years in prison, a fine of $2,000,000 or both, for Count Eight. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Maureen Sheehan-Balchon is prosecuting this case on behalf of the government.
The Drug Enforcement Administration and the Pennsylvania State Police conducted the investigation that led to the prosecution of Coker. Additional agencies participating in this investigation include the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Internal Revenue Service – Criminal Investigation, the United States Postal Inspection Service, Homeland Security Investigations, Pennsylvania Office of the Attorney General, Clearfield County District Attorney’s Office, Erie County District Attorney’s Office, Millcreek Police Department, Erie Bureau of Police, and other local law enforcement agencies.
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Chicago Man Convicted of Participating in Illegal Kickback ConspiracyRead the Press Release
UPDATE
The defendant’s conviction was overturned pursuant to a decision by the Seventh Circuit, and he was acquitted on all counts.
A federal jury in the Northern District of Illinois convicted a Chicago man yesterday for participating in a conspiracy to pay approximately $25 million in illegal kickbacks to generate business for his durable medical equipment pharmacy.
According to evidence presented at trial, Mark Sorensen, 53, worked at Symed, a Chicago pharmacy that paid illegal kickbacks to obtain patients to bill to Medicare, TRICARE, and the Department of Labor’s Office of Workers’ Compensation Programs (OWCP). Between 2015 and 2018, Sorensen illegally bought patient leads from Bernie Perconti. Perconti obtained the leads from others, including Christine Anderson and Craig O’Neil. Without the involvement of the Symed, the conspirators could not have submitted claims to obtain reimbursement from Medicare or other federal health care benefit programs. Perconti, O’Neil, and Anderson each pleaded guilty to conspiracy to pay and receive kickbacks in 2019, July 2020, and January 2021, respectively, and are scheduled to be sentenced at a later date.
Sorensen was convicted of one count of conspiracy and three counts of payment of illegal kickbacks. He faces a maximum penalty of five years in prison on each count of conviction. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division; Special Agent in Charge Robert W. ‘Wes’ Wheeler Jr. of the FBI Chicago Field Office; Special Agent in Charge Mario M. Pinto of the Department of Health and Human Services Office of Inspector General (HHS-OIG); Special Agent in Charge Irene Lindow of the Department of Labor Office of Inspector General (DOL-OIG), Chicago Region; and Special Agent in Charge Darrin Jones of the Department of Defense Office of Inspector General (DOD-OIG) made the announcement.
The FBI, HHS-OIG, DOL-OIG, and DOD-OIG investigated the case.
Assistant Chiefs Leslie S. Garthwaite and Daniel J. Griffin of the Criminal Division’s Fraud Section are prosecuting the case.
The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, comprised of 15 strike forces operating in 24 federal districts, has charged more than 4,200 defendants who collectively have billed the Medicare program for more than $19 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with the Office of the Inspector General for the Department of Health and Human Services, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at https://www.justice.gov/criminal-fraud/health-care-fraud-unit.
Chester County Doctor Sentenced to Two Years in Prison for Operating Pill Mill Out of Main Line Pain ClinicRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Yutong Zhang, 64, of Berwyn, PA, a physician, was sentenced to two years in prison, and three years of supervised release by United States District Court Judge Michael M. Baylson for operating a pain management medical practice in St. Davids, PA, as a “pill mill.”
In February 2022, the defendant pleaded guilty to an Information charging four counts of distributing oxycodone-containing medications outside of the usual course of professional practice and for no legitimate medical purpose. From approximately 2016 through 2020, Zhang sold medically unnecessary prescriptions for oxycodone and other controlled substances to about 120 so-called patients, who were actually cash-paying customers. The defendant frequently supplied these prescriptions after conducting only a cursory physical examination or without any examination at all, and did not take steps, such as ordering diagnostic testing, designed to discern the root cause of the pain reportedly suffered by patients.
In a separate but related civil settlement, the U.S. Attorney’s Office and Zhang agreed to resolve his civil penalty liability under the Controlled Substances Act. Zhang agreed to pay $715,000 in civil penalties for his controlled substance prescribing. The civil settlement also permanently prevents Zhang from ever prescribing controlled substances.
“The U.S. Attorney’s Office is committed to fighting the opioid epidemic on all fronts, including prosecuting drug dealers who happen to have a medical degree,” said U.S. Attorney Romero. “As a physician, Yutong Zang was certainly aware of the inherently dangerous nature of the drugs he was selling, but he chose to profit from sales of prescriptions, instead of providing genuine medical treatment. His actions kept addicted customers returning to his office, contributing to the opioid crisis on the streets of Philadelphia.”
“Today we see yet another local physician going to prison for pushing powerful pills to addicts,” said Jacqueline Maguire, Special Agent in Charge of the FBI’s Philadelphia Division. “We see a waste of all that education and experience, and we see a monstrous ethical lapse. Zhang and other doctors who deal oxycodone to anyone who can pay for it are directly fueling the opioid crisis and its mounting human toll here. The FBI is committed to holding accountable medical professionals who choose to throw away their oath and get involved in this dangerous drug diversion.”
“Dr. Zhang demonstrated a complete and utter disregard of his medical oath as a doctor by prescribing powerful prescription painkillers for no legitimate purpose and for profit only,” said Thomas Hodnett, Special Agent in Charge of the Drug Enforcement Administration’s (DEA) Philadelphia Field Division. “In addition to his federal prison sentence, Dr. Zhang will have to pay a $715,000 civil penalty fine and is prohibited from ever prescribing controlled substances again.”
“As a physician, Dr. Zhang was trusted to care for his community,” said Acting Attorney General Michelle Henry. “He violated that trust by prescribing highly addictive drugs that fuel the opioid crisis throughout Pennsylvania. We will hold any individual, including health care professionals, accountable when they recklessly put the lives of others at risk."
“We are pleased to shut down this illegal operation within our community,” said Radnor Township Police Superintendent Chris Flanagan. “These ‘pill mills’ effect everyone involved; the user, their friends and their families. Over time they truly ruin lives. The teamwork from the F.B.I., U.S. Attorney’s Office, P.A. Attorney General Task Force Members, and Delaware County D.A., was instrumental to bring this case to prosecution. We encourage those struggling with drug addiction to seek support from the many free resources where they live. Please report “pill mills” or other drug activities to your local authorities so action can be taken."
The case was investigated by the Radnor Police Department, the Pennsylvania Office of the Attorney General, the Federal Bureau of Investigation, and the the Drug Enforcement Administration’s (DEA) Philadelphia Field Division. The criminal case is being prosecuted by Assistant United States Attorney Elizabeth Abrams, and the civil settlement was handled by Assistant United States Attorney Anthony D. Scicchitano.
Cave Springs Man Pleads Guilty to Tax EvasionRead the Press Release
FAYETTEVILLE — A Cave Springs man and former general manager at several Northwest Arkansas car dealerships pleaded guilty yesterday to evading more than $263,000 in federal income taxes. U.S. District Judge Timothy L. Brooks presided over the plea hearing, in Jonathan M. Wichman, 35, waived indictment and pleaded guilty to a criminal information charging him with tax evasion.
According to court documents and statements made in court, Wichman worked from 2014 through 2020, mainly as a general manager at car dealerships in Northwest Arkansas. In October 2018, Wichman accessed his employer’s online payroll system and caused the dealership to not withhold any federal income taxes or employment taxes from his 2019 and 2020 wages. During these years, Wichman earned a total of $856,882 in wages, including $360,739 from the dealership where he altered his federal tax withholdings.
Wichman did not file his tax returns with the IRS for tax years 2019 and 2020. Also, he did not timely file his tax returns for tax years 2014 through 2018 despite receiving correspondence from the IRS asking why he had not filed his tax returns. In May 2018, the IRS filed substitutes for returns for Wichman for tax years 2014 and 2016 and assessed additional taxes, which he also did not pay.
Wichman told investigating agents that he knew he owed past due taxes to the IRS. Wichman said he prepared his taxes using commercial software, and each year, the program showed he owed a large amount of taxes. Wichman claimed he did not have the money to pay his taxes, so he did not file his tax returns. However, the investigation revealed that Wichman did have money available to pay his taxes. From 2018 through 2021, Wichman made cash transactions at various casinos and banks totaling more than $1,079,000. In addition, from 2014 through 2022, Wichman spent more than $513,000 on luxury vehicles, a travel trailer, and a Florida vacation.
In total, Wichman did not pay $263,615 in income taxes to the IRS, and also admitted that he failed to pay income taxes to the state of Arkansas. Wichman agreed to pay restitution, including penalties and interest, to both the U.S. Treasury and Arkansas Department of Finance and Administration.
Wichman is scheduled to be sentenced at a later date and faces a maximum penalty of five years in prison. He also faces a period of supervised release, monetary penalties, and restitution. The U.S. District Judge will determine his sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney David Clay Fowlkes of the Western District of Arkansas made the announcement.
The Internal Revenue Service-Criminal Investigation is investigating the case.
Assistant U.S. Attorney Steven Mohlhenrich is prosecuting the case for the United States.
Canadian Leader of Complex Nigerian Fraud and Money Laundering Ring SentencedRead the Press Release
Tampa, Florida – U.S. District Judge Steven D. Merryday has sentenced Akohomen Ighedoise (48, Thornhill, Ontario) to 17 years and 6 months in federal prison for conspiracy to commit mail and wire fraud. As part of his sentence, the court also entered an order of forfeiture of $10,632,546.36, representing the proceeds of the charged criminal conduct, and ordered Ighedoise to pay $4,389,340.97 in restitution to the victims. Ighedoise had pleaded guilty on September 13, 2022, following his extradition to the United States from Canada.
According to court documents and evidence presented at the trials of his convicted coconspirators, as well as at his sentencing hearing, Ighedoise, a dual citizen of Nigeria and Canada, worked for an international criminal organization based in Nigeria that defrauded dozens of victims across the United States and then laundered the funds through a complex network of bank accounts. The organization, known as the Black Axe Group or Neo Black Movement of Africa, coordinated fraud and money laundering activity throughout the globe via cells or “zones” in Nigeria, Canada, the United States, and elsewhere. During the conspiracy, Ighedoise was the “ihaza,” or treasurer, of the Black Axe Group’s North America zone based in Ontario, Canada.
The fraud schemes took several forms. Many of the victims were widowed, single, or divorced elderly women who developed relationships with fake suitors on dating websites as part of so-called “romance scams.” The women were then convinced to wire money, which often consisted of their entire retirement savings and cash taken out from home equity to bank accounts in the United States as part of a supposed investment opportunity. The conspirators also defrauded title companies with fake cashier’s checks in phony real estate transactions, leaving the companies on the hook for the losses once the checks bounced. Other victims included businesses targeted by email spoofing and hacking schemes, as well as law firms that were solicited online to perform legal work and then provided fake cashier’s checks for deposit into the firms’ trust accounts.
Victims were instructed to wire their money into numerous funnel accounts held by conspirators in the United States, known as “money mules,” and the funds were then quickly moved to other accounts in the United States and around the world before the victims could discover the fraud. From at least 2012 to October 2015, Ighedoise worked with co-conspirator Ikechukwu Derek Amadi and others to recruit more than a dozen individuals in the United States to act as money mules. Ighedoise and Amadi then had those individuals wire most of the victims’ funds overseas, including to Hong Kong, China, Canada and Nigeria, to promote the conspiracy and conceal the source of the funds. The group moved at least $10 million in frauds proceeds during this time.
This case was investigated by the Federal Bureau of Investigation, with assistance from various federal and local law enforcement partners throughout the country, as well as Canadian authorities, including the Toronto Police Service in Ontario, and the Toronto Strategic Partnership. It was prosecuted by Assistant United States Attorney Patrick Scruggs.
Bullhead Man Sentenced on Firearm ChargeRead the Press Release
ABERDEEN - United States Attorney Alison J. Ramsdell announced that a Bullhead, South Dakota, man convicted of Possession of a Stolen Firearm was sentenced on January 18, 2023, by U.S. District Judge Charles B. Kornmann.
Nicholas Black Cloud, age 21, was sentenced to six months in federal prison, followed by three years of supervised release, and ordered to pay a special assessment to the Federal Crime Victims Fund in the amount of $100.
Black Cloud was indicted for Possession of a Stolen Firearm by a federal grand jury in January of 2022. He pleaded guilty on October 17, 2022.
On October 25, 2021, Black Cloud stole a pistol from a vehicle in McLaughlin, South Dakota. When he later encountered the police, Black Cloud threw the pistol away so he would not get caught with it. Law enforcement subsequently recovered the firearm.
This case is part of Project Safe Neighborhoods (PSN), 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.
This case was investigated by the Corson County Sheriff’s Office, the Bureau of Indian Affairs – Office of Justice Services, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant U.S. Attorney Cameron Cook prosecuted the case.
Black Cloud was immediately remanded to the custody of the U.S. Marshals Service.
Brockton Man Sentenced for Firearm and Ammunition OffenseRead the Press Release
BOSTON – A Brockton man was sentenced today in federal court in Boston for possessing a firearm and ammunition as a convicted felon.
Nicholas Mendes, 40, was sentenced by U.S. District Judge Patti B. Saris to 80 months in prison and three years of supervised release. On March 22, 2022, Mendes pleaded guilty to one count of being a felon in possession of a firearm and ammunition.
On the evening of May 21, 2020, local police responded to a report of possible gunshots in Brockton. At the scene, officers found a parked vehicle with three occupants inside, one of whom was Mendes sitting in the driver’s seat, and the passenger door open. A subsequent search of the vehicle revealed a FN Model 509, 9mm semi-automatic pistol with a partially obliterated serial number tucked directly under the driver seat where Mendes was sitting. The semi-automatic firearm was loaded with six rounds of 9mm ammunition – including one round in the chamber. At the time, Mendes was on state probation with electronic monitoring.
Mendes is prohibited from possessing a firearm and ammunition due to prior convictions that include intimidation, possession of a firearm, carrying a firearm without a license, narcotics offenses and assault and battery.
United States Attorney Rachael S. Rollins; James Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; Brockton Police Chief Brenda Perez; and Plymouth County District Attorney Timothy J. Cruz made the announcement. Assistant U.S. Attorney Suzanne Sullivan Jacobus of Rollins’ Major Crime Unit prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), 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.
Bank Employee Admits Role in Fraud ConspiracyRead the Press Release
PROVIDENCE – A Providence woman who was previously employed by Citizens Bank admitted to a federal judge that she stole the banking information of unsuspecting individuals, businesses, and a law firm, and then provided that information to the leader of a bank fraud conspiracy, who used it to create fraudulent personal and business checks, announced United States Attorney Zachary A. Cunha.
Savonnah Briggs, 28, admitted that, while employed by the bank, she accessed customer information and check images, and provided screenshots of that information to Richard Kobi, 27, of Providence. Kobi then used the stolen information to create fraudulent checks that he deposited into his own bank, or that he provided to other individuals that he solicited on Facebook and paid to deposit the checks into bank accounts they controlled. After the checks were deposited, Koboi and others made, or attempted to make, rapid withdrawals of cash from ATMs or bank tellers.
According to information presented to the court, members of the conspiracy created and deposited approximately $330,000 worth of counterfeit checks.
On Thursday, Briggs pleaded guilty to a charge of conspiracy to commit bank fraud. She is scheduled to be sentenced on April 25, 2023. The defendant’s sentence will be determined by a federal district judge after consideration of the U.S. Sentencing Guidelines and other statutory factors.
Richard Kobi pleaded guilty on April 27, 2022, to conspiracy to commit bank fraud, ten counts of bank fraud, and being a felon in possession of a firearm. He was sentenced in December 2022 to three years in federal prison.
The case is being prosecuted by Assistant U.S. Attorney Ly T. Chin.
The matter was investigated by the U.S. Postal Inspection Service, with the assistance of the FBI, United States Secret Service, ATF, Rhode Island State Police, Providence Police Department, and Delaware State Police.
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Arrest and Criminal Charges Announced Against British and Russian Businessmen for Facilitating Sanctions Evasion of Russian Oligarch’s $90 Million YachtRead the Press Release
Two businessmen, Vladislav Osipov, 51, a Russian national, and Richard Masters, 52, a United Kingdom national, are charged in separate indictments unsealed today in the U.S. District Court for the District of Columbia, with facilitating a sanctions evasion and money laundering scheme in relation to the ownership and operation of the Motor Yacht (M/Y) Tango (International Maritime Organization number 1010703), a $90 million, 255-foot luxury yacht owned by sanctioned Russian oligarch Viktor Vekselberg. The defendants are charged with conspiracy to defraud the United States and to commit offenses against the United States, violating the International Emergency Economic Powers Act (IEEPA), and money laundering. The United States requested that the Kingdom of Spain provisionally arrest Masters for purposes of extradition. The arrest was executed by the Spanish Guardia Civil today. An arrest warrant against Osipov is outstanding.
“Today’s indictments and the arrest executed by Spanish law enforcement demonstrate the FBI’s continued focus on tracking down and holding accountable those who assist sanctioned Russian oligarchs,” said FBI Deputy Director Paul Abbate. “The FBI, along with our international partners, will continue to aggressively investigate and pursue anyone who facilitates the corrupt practices of others, placing our institutions at risk.”
“Facilitators of sanctions evasion enable the oligarchs supporting Vladimir Putin’s regime to flout U.S. law. The United States will not allow its financial institutions and persons to be manipulated or defrauded for the purposes of benefitting those supporting an illegal war,” said U.S. Attorney Matthew M. Graves for the District of Columbia.
“The Department of Justice has been clear. Corporations and executives have a choice: they can participate in the global effort to uproot corruption, sanctions violations, and money laundering, and enjoy the benefits of prompt and fulsome cooperation; or they can, as Osipov and Masters are alleged to have done, attempt to shield themselves and their clients behind a veil of fraud,” said Director Andrew Adams of Task Force KleptoCapture. “These men made their decisions, and now face the consequences of a failed attempt to profit through, rather than standing against, a sophisticated, transnational criminal enterprise.”
“Russian oligarchs are the product of an ecosystem of corruption that abuses rule-of-law-based monetary structures to enrich themselves with the luxury trappings and lifestyles that everyday people only dream of – all the while as thousands of Ukrainians are homeless due to Russia’s unlawful invasion,” said Special Agent in Charge Ivan J. Arvelo of the Homeland Security Investigations (HSI) New York Field Office. “As stewards of the American financial system, HSI will not stand idly by as U.S. dollars are used by oligarch criminal networks to operate and maintain these high value symbols of corruption. Last year, working with our partners at the Justice Department and FBI, we removed the yacht Tango from an oligarch’s portfolio and with today’s actions we have followed through on our promise of accountability to those that conduct illicit financial transactions on behalf of the oligarchs. The message is clear: Putin’s cronies will find no succor in their riches and those that illegally enable such lifestyles will be called to justice.”
“The indictment alleges that both defendants used a variety of techniques to mask ownership of the Motor Yacht Tango in violation of U.S. law,” said Special Agent in Charge Alvin M. Winston of the FBI Minneapolis Field Office. “Together with the Justice Department’s KleptoCapture Task Force, the FBI will hold accountable those who assist Russian Oligarchs in their efforts to hide assets and violate sanctions. We thank our international partners who helped facilitate the arrest of Richard Masters in Spain earlier today."
According to the indictment, despite U.S. sanctions issued against Vekselberg in April 2018, Osipov and Masters facilitated the operation of Tango through the use of U.S. companies and the U.S. financial system, attempting to obfuscate Vekselberg’s involvement in the vessel. Osipov, an employee of Vekselberg who functioned as a property manager for Tango, designed a complicated ownership structure of shell companies to hide Vekselberg’s ownership of the yacht, despite that Vekselberg designed the yacht, was the sole user, and was the ultimate beneficial owner.
As alleged, Masters ran a yacht management company in Palma de Mallorca, Spain. After Vekselberg was sanctioned in April 2018, Masters’s company took over the management of Tango, and conspired with others to evade the U.S. sanctions. According to the indictment, among other things, Masters devised a scheme to use a false name for the yacht, “the Fanta,” in order to hide from financial institutions that payments in U.S. dollars were ultimately for the benefit of Tango and Vekselberg. As a result of this obfuscation, U.S. financial institutions processed hundreds of thousands of dollars of transactions for Tango that they otherwise would not have permitted had they known of Vekselberg’s involvement in the financial transaction. Further, these payments and Vekselberg’s involvement therein were not reported to the Department of the Treasury.
Additionally, according to the indictment, Osipov and Masters advised and enabled Tango employees to continue to do business with numerous U.S. companies, using various workarounds to avoid sanctions, such as payments in other currencies and through third parties. As a result of these schemes, the working mechanisms of Tango, to include its internet, technology, weather forecasting and computing systems, as well as the trappings of Tango, including its satellite television, luxury goods, and teleconferencing software, were all U.S.-origin products and services supplied by U.S. companies, for the benefit of Vekselberg. The efforts of these facilitators permitted Tango to continue to operate as a luxury yacht with the full array of services and luxury goods available to it, supported by hundreds of thousands of dollars of illegally-obtained U.S. services and U.S. financial transactions, and all for the benefit of Vekselberg.
On April 4, 2022, Spanish law enforcement executed a Spanish court order freezing Tango. The Spanish acted following a request from the Department of Justice that it assist with the execution of a seizure warrant, issued in March 2022 by the U.S. District Court for the District of Columbia, which alleged that Tango was subject to forfeiture based on violations of U.S. bank fraud, money laundering, and sanctions statutes.
The FBI Minneapolis Field Office is investigating the case. Valuable assistance has been provided by the HSI New York Field Office and the Spanish Guardia Civil - Jefatura de Informacion – Unidad Central Especial Numero III (UCE-III).
Assistant U.S. Attorney Karen P. Seifert, with valuable assistance provided by Assistant U.S. Attorneys Rajbir Datta and Maeghan Mikorski, Paralegals Brian Rickers and Jorge Casillas, and Legal Assistant Jessica McCormick, all of the U.S. Attorney’s Office for the District of Columbia are prosecuting the case. The Justice Department’s Office of International Affairs provided significant assistance in working with the Spanish authorities throughout this matter.
The case has been coordinated through the Justice Department’s Task Force KleptoCapture, an interagency law enforcement task force dedicated to enforcing the sweeping sanctions, export restrictions, and economic countermeasures that the United States has imposed, along with its allies and partners, in response to Russia’s unprovoked military invasion of Ukraine. Announced by the Attorney General on March 2, 2022, and under the leadership of the Office of the Deputy Attorney General, the task force will leverage all the Department’s tools and authorities against efforts to evade or undermine the economic actions taken by the U.S. government in response to Russian military aggression.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Arrest and Criminal Charges Against British and Russian Businessmen for Facilitating Sanctions Evasion of Russian Oligarch’s $90 Million YachtRead the Press Release
Yacht Previously Seized and One Arrest Today by Spain at Request of United States
WASHINGTON – Two businessmen - Vladislav Osipov, 51, a dual Russian and Swiss national, and Richard Masters, 52, a United Kingdom national, are charged in separate indictments, unsealed today in U.S. District Court in the District of Columbia, with facilitating a sanctions evasion and money laundering scheme in relation to the ownership and operation of the Motor Yacht (M/Y) Tango (International Maritime Organization number 1010703), a $90 million, 255-foot luxury yacht owned by sanctioned Russian oligarch Viktor Vekselberg. The defendants are charged with conspiracy to defraud the United States and to commit offenses against the United States, violating the International Emergency Economic Powers Act (IEEPA), and money laundering. The United States requested that the Kingdom of Spain provisionally arrest Masters for purposes of extradition. The arrest was executed by the Spanish Guardia Civil today. An arrest warrant against Osipov is outstanding.
The charges were announced by United States Attorney Matthew M. Graves, Director Andrew Adams of Task Force KleptoCapture, FBI Special Agent in Charge Alvin M. Winston Sr. of the Minneapolis Field Office, and Homeland Security Investigations Special Agent in Charge Ivan J. Arvelo of HSI’s New York Field Office.
According to the indictment, despite U.S. sanctions issued against Vekselberg in April 2018, Osipov and Masters facilitated the operation of Tango through the use of U.S. companies and the U.S. financial system, attempting to obfuscate Vekselberg’s involvement in the vessel. Osipov, an employee of Vekselberg who functioned as a property manager for Tango, designed a complicated ownership structure of shell companies to hide Vekselberg’s ownership of the yacht, despite that Vekselberg designed the yacht, was the sole user, and was the ultimate beneficial owner.
Masters ran a yacht management company in Palma de Mallorca, Spain. After Vekselberg was sanctioned in April 2018, Masters’s company allegedly took over the management of Tango and conspired with others to evade the U.S. sanctions. According to the indictment, among other things, Masters devised a scheme to use a false name for the yacht, “the Fanta,” in order to hide from financial institutions that payments in U.S. dollars were ultimately for the benefit of Tango and Vekselberg. As a result of this obfuscation, U.S. financial institutions processed hundreds of thousands of dollars of transactions for Tango that they otherwise would not have permitted had they known of Vekselberg’s involvement in the financial transaction. Further, these payments and Vekselberg’s involvement therein were not reported to the Department of the Treasury.
Additionally, according to the indictment, Osipov and Masters advised and enabled Tango employees to continue to do business with numerous U.S. companies, using various workarounds to avoid sanctions, such as payments in other currencies and through third parties. As a result of these schemes, the working mechanisms of Tango, to include its internet, technology, weather forecasting, and computing systems, as well as the trappings of Tango, including its satellite television, luxury goods, and teleconferencing software, were all U.S.-origin products and services supplied by U.S. companies, for the benefit of Vekselberg. The efforts of these facilitators permitted Tango to continue to operate as a luxury yacht with the full array of services and luxury goods available to it, supported by hundreds of thousands of dollars of illegally-obtained U.S. services and U.S. financial transactions, and all for the benefit of Vekselberg.
“Facilitators of sanctions evasion enable the oligarchs supporting Vladimir Putin’s regime to flout U.S. law,” said U.S. Attorney Graves. “The United States will not allow its financial institutions and persons to be manipulated or defrauded for the purposes of benefitting those supporting an illegal war.”
“The Department of Justice has been clear. Corporations and executives have a choice: they can participate in the global effort to uproot corruption, sanctions violations, and money laundering, and enjoy the benefits of prompt and fulsome cooperation; or they can, as Osipov and Masters are alleged to have done, attempt to shield themselves and their clients behind a veil of fraud,” said Director Adams of Task Force KleptoCapture. “These men made their decisions, and now face the consequences of a failed attempt to profit through, rather than standing against, a sophisticated, transnational criminal enterprise.”
“The indictment alleges that both defendants used a variety of techniques to mask ownership of the Motor Yacht Tango in violation of U.S. law,” said FBI Special Agent in Charge Winston. “Together with the Justice Department’s KleptoCapture Task Force, the FBI will hold accountable those who assist Russian Oligarchs in their efforts to hide assets and violate sanctions. We thank our international partners who helped facilitate the arrest of Richard Masters in Spain earlier today."
“Russian oligarchs are the product of an ecosystem of corruption that abuses rule-of-law- based monetary structures to enrich themselves with luxury trappings and lifestyles.” said HSI Special Agent in Charge Arvelo. “Today’s actions have demonstrated our commitment to hold those that conduct illicit transactions on behalf of the oligarchs accountable.”
On April 4, 2022, Spanish law enforcement executed a Spanish court order freezing Tango. The Spanish acted following a request from the Department of Justice that it assist with the execution of a seizure warrant, issued in March 2022 by the U.S. District Court for the District of Columbia, which alleged that Tango was subject to forfeiture based on violations of U.S. bank fraud, money laundering, and sanctions statutes.
The case is being investigated by the FBI’s Minneapolis Field Office. Valuable assistance has been provided by the Homeland Security Investigation’s New York Field Office and the Spanish Guardia Civil - Jefatura de Informacion - Unidad Central Especial Numero III (UCE-III). The case is being prosecuted by Assistant U.S. Attorney Karen P. Seifert, with valuable assistance provided by Assistant U.S. Attorneys Rajbir Datta and Maeghan Mikorski, Paralegals Brian Rickers and Jorge Casillas, and Legal Assistant Jessica McCormick, all of the United States Attorney’s Office for the District of Columbia. The Justice Department’s Office of International Affairs provided significant assistance in working with the Spanish authorities throughout this matter.
The case has been coordinated through the Justice Department’s Task Force KleptoCapture, an interagency law enforcement task force dedicated to enforcing the sweeping sanctions, export restrictions, and economic countermeasures that the United States has imposed, along with its allies and partners, in response to Russia’s unprovoked military invasion of Ukraine. Announced by the Attorney General on March 2 and under the leadership of the Office of the Deputy Attorney General, the task force will leverage all the Department’s tools and authorities against efforts to evade or undermine the economic actions taken by the U.S. government in response to Russian military aggression.
Armed Repeat Felon Sentenced to over Nine Years in Federal Prison Following High-Speed Flight from PoliceRead the Press Release
INDIANAPOLIS –Patrick Owens, 33, of Indianapolis, Indiana, was sentenced to 115 months in federal prison after pleading guilty to one count of unlawful possession of a firearm by a convicted felon.
According to court documents, on April 12, 2019, an Indianapolis Metropolitan Police Department (IMPD) officer initiated a traffic stop on Patrick Owens as he was heading northbound on Binford Boulevard in Indianapolis. When asked for a driver’s license, Owens told the officer that he did not have one. The officer asked Owens if there were any weapons in the vehicle and Owens indicated that there were none. Owens then flipped open the center armrest, exposing the bottom of an extended handgun magazine. The officer commanded Owens to remove his hands from the steering wheel, and in response Owens started the car and sped away.
Owns led officers on a high-speed pursuit on I-65 and I-465, where he fishtailed across three lanes and struck an Infinity SUV. Owens continued his flight after the collision, reaching speeds of over 86 miles per hour. He exited I-465 at Keystone Avenue and proceeded onto a construction-filled 96th street. Owens swerved to go through the construction site, but lost control of the vehicle and hit a power pole. Owens then jumped out of the vehicle and fled on foot, initially holding the extended handgun magazine from his vehicle before tossing it on the ground as he ran.
IMPD officers caught up with Owens and took him into custody and recovered the extended magazine, which was loaded with 25 live rounds of .40 caliber ammunition. Officers located a loaded semiautomatic handgun in Owens’ car, as well as marijuana, $21,300 in cash, and two additional loaded .40 caliber magazines. Owens is prohibited from possessing a firearm under federal law due to his previous felony convictions, including resisting law enforcement, carrying a handgun without a license, and burglary.
Zachary A. Myers, United States Attorney for the Southern District of Indiana and Daryl S. McCormick, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Columbus Field Division made the announcement.
ATF investigated this case with valuable assistance from the Indianapolis Metropolitan Police Department. The sentenced was imposed by U.S. District Judge Sarah Evans Barker. As part of the sentence, Judge Barker ordered that Owens be supervised by the U.S. Probation Office for 3 years following his release from federal prison. Owens was also ordered to pay $6,778 in restitution to the owner of the Infinity SUV and the insurance company.
U.S. Attorney Myers thanked Assistant U.S. Attorney Barry D. Glickman, who prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
19 January 2023
تحسم وزارة العدل مسألة الوصول إلى اللغة المتعلقة بمحكمة لويزيانا العلياRead the Press Release
ملحوظة: هذا البيان الصحفي مترجم إلى لغات مختلفة. انظر المرفقات الواردة أدناه.
أصدرت وزارة العدل اليوم قرارًا في مسألة تتعلق بالمحكمة العُليا في لويزيانا (Louisiana Supreme Court, LASC) بناءً على الإجراءات التي اتخذتها LASC لتحسين إمكانية الوصول إلى الإجراءات والعمليات القضائية في الولاية للأفراد ذوي الكفاءة المحدودة في اللغة الإنجليزية (limited English proficiency, LEP).
في مايو 2019، أبرمت وزارة العدل ومذكرة اتفاق LASC (Memorandum of Agreement, MOA) لمعالجة شكوى بموجب الباب السادس من قانون الحقوق المدنية لعام 1964 (Title VI of the Civil Rights Act of 1964, Title VI). وTitle VI هو قانون فيدرالي يحظر ممارسة التمييز على أساس العرق واللون والأصل القومي من جانب أي جهات متلقية للمساعدة المالية الفيدرالية، ويشمل ذلك محاكم الولايات. ومنذ توقيع MOA، اتخذت LASC عددًا من الإجراءات التصحيحية لتحسين وصول LEP من المتعاملين مع المحاكم في جميع أنحاء ولاية لويزيانا.
وصرّحت كريستين كلارك، مساعدة المدعي العام لـ Civil Rights Division (دائرة الحقوق المدنية) بوزارة العدل، قائلة: "يجب أن تضمن المحاكم في جميع أنحاء بلادنا أن بابها مفتوح للجميع، ومنهم الأفراد ذوو الكفاءة المحدودة في اللغة الإنجليزية". وواصلت قائلة: "سنواصل عملنا للتأكد من أن أنظمة المحاكم، ومنها المحكمة العُليا في لويزيانا LASC، لديها السياسات والممارسات والمترجمين الشفويين والموارد الأخرى اللازمة لضمان توفير إمكانية اللجوء إلى القضاء للأفراد ذوي الكفاءة المحدودة في اللغة الإنجليزية".
وكذلك علّق دوان إيه إيفان، وكيل وزارة العدل بالولايات المتحدة للمنطقة الشرقية من ولاية لويزيانا، قائلًا: "أثبتت المحكمة العُليا في لويزيانا LASC، بالإجراءات التي اتخذتها، التزامًا بضمان توفير إمكانية الوصول إلى محاكم الولاية في لويزيانا لـ LEP". وأضاف قائلًا: "يلتزم مكتبي بالتصدي لجميع أشكال التمييز، ويشمل ذلك التمييز ضد LEP".
من الجدير بالذكر أن LASC اتخذت عددًا من الإجراءات لإعداد برنامج تواصل لغوي وتنفيذه، وتوسيع نطاق توافر خدمات المساعدة اللغوية المجانية لـ LEP في ولاية لويزيانا. وأنشأت LASC Office of Language Access (مكتب التواصل اللغوي) واعتمدت Language Access Plan (خطة التواصل اللغوي) الأولى لمحاكم ولاية لويزيانا. وكذلك أنشأت LASC نظامًا لشكاوى التواصل اللغوي مركزيًا بالإضافة إلى توفير نموذج شكوى عبر الإنترنت بعدة لغات غير الإنجليزية. وبالنسبة لموظفي المحاكم، أعدت LASC برامج تدريبية بشأن التواصل اللغوي، وأيضًا بطاقة معلومات قضائية تركز على إمكانية الوصول إلى المترجمين الشفويين لدى المحكمة، وغيرها من موارد التواصل اللغوي. وعلاوة على ذلك، نجحت LASC في الدعوة إلى تغيير قانون الولاية الذي سمح للمحاكم بفرض رسوم على LEP مقابل تكلفة توفير مترجم شفوي، ثم تبنت قواعد جديدة للمحاكم بناءً على هذا التغيير في قانون الولاية.
تعاونت Civil Rights Division (دائرة الحقوق المدنية) بوزارة العدل ومكتب وكيل وزارة العدل بالولايات المتحدة للمنطقة الشرقية من ولاية لويزيانا في بحث هذه المسألة. وتتوفر معلومات إضافية عن Civil Rights Division على موقعها الإلكتروني على هذا الرابط www.justice.gov/crt، كما تتوفر معلومات عن الكفاءة المحدودة في اللغة الإنجليزية LEP وTitle VI على www.lep.gov. ويمكن لأفراد الجمهور الإبلاغ عن انتهاكات الحقوق المدنية المحتملة على https://civilrights.justice.gov/report/.
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Wisconsin Man Indicted for Forced LaborRead the Press Release
An indictment was unsealed today in the Western District of Wisconsin charging a Wisconsin man with one count of labor trafficking.
According to the indictment, between August 2020 and Aug. 5, 2022, Austin Koeckeritz, 29, used force, threats of force and coercion, to cause an adult woman to engage in forced labor for nearly two years.
The charge of forced labor carries a maximum of 20 years in prison, up to five years of supervised release, and a fine of up to $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, U.S. Attorney for the Western District of Wisconsin Timothy M. O’Shea and Special Agent in Charge Michael E. Hensle of the FBI Milwaukee Field Office made the announcement.
The FBI Milwaukee Field Office and the River Falls Police Department conducted the investigation. The Pierce County District Attorney’s Office provided assistance.
Assistant U.S. Attorney Taylor Kraus for the Western District of Wisconsin and Trial Attorneys Slava Kuperstein and Julie Pfluger of the Civil Rights Division’s Human Trafficking Prosecution Unit are prosecuting the case.
The FBI is asking anyone with information about Austin Koeckeritz to contact the FBI Milwaukee Field Office at (414) 276-4684. If you or someone you know is a victim of human trafficking, please call the National Human Trafficking Hotline at 1-888-373-7888.
An indictment is merely an allegation, and the defendant is presumed innocent until proven guilty.
Watervliet Woman Admits to SBA Loan Application FraudRead the Press Release
ALBANY, NEW YORK – Ouida Cordell, age, 47, of Watervliet, New York, pled guilty today to one count of wire fraud for her submission of a fraudulent Economic Injury Disaster Loan (EIDL) application to the U.S. Small Business Administration (SBA).
United States Attorney Carla B. Freedman; Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI); and Darren B. Cox, Acting Special Agent in Charge of the Buffalo Field Office of the FBI, made the announcement.
As part of her guilty plea, Cordell admitted that on July 13, 2020, she submitted an online application to the SBA for an EIDL on behalf of her company, Bashment Entertainment LLC, that falsely overstated Bashment’s annual revenues. As a result of the fraud, Cordell and her company Bashment received an EIDL loan in the amount of $149,500 for which she and the company were not entitled.
Sentencing is scheduled for June 28, 2023, before United States District Judge Glenn T. Suddaby. Cordell faces up to 20 years in prison, a fine of up to $250,000, and a term of supervised release of up to 3 years. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
The FBI, with assistance from the New York State Department of Taxation and Finance, Office of Internal Affairs, and the U.S. Treasury Inspector General for Tax Administration, investigated this case. Assistant U.S. Attorney Rick Belliss is prosecuting this case.
Washington, D.C. Man Sentenced in Maryland to More Than Four Years in Federal Prison for Using the Stolen Personal Information of Identity Theft Victims to Attempt to Obtain Financing to Purchase Luxury VehiclesRead the Press Release
Greenbelt, Maryland – U.S. District Judge Paula Xinis sentenced Travon Demetrius Hardie, a/k/a “Juug,” age 25, of Washington, D.C., to 54 months in federal prison, followed by three years of supervised release, for conspiracy to commit wire fraud, wire fraud, and aggravated identity theft, in connection with a scheme to use the stolen personal information of identity theft victims to obtain financing to purchase luxury vehicles. Judge Xinis also ordered Hardie to pay restitution of $56,920.77 and entered a forfeiture money judgment in the amount of $697,041.13. The sentence was imposed on January 17, 2023.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Ross Luciano of the United States Secret Service - Baltimore Field Office; Special Agent in Charge James C. Harris of Homeland Security Investigations (HSI) Baltimore; Postal Inspector in Charge Damon E. Wood of the U.S. Postal Inspection Service - Washington Division; and Chief Russell E. Hamill III of the Laurel Police Department.
According to his plea agreement, from November 2020 through February 2022, Hardie and co-defendants John Paul Thompson, Jr. and Nickolas Alexander Mathis, obtained the stolen personal identifying information (“PII”) of identity theft victims, manufactured fake identification documents with the stolen PII, and used those fake identification documents to attempt to obtain financing for the purchase of at least 31 luxury vehicles from dealerships in Maryland, Delaware, New Jersey, and Virginia. Hardie admitted that he manufactured some of the fraudulent identification documents which were used to perpetuate the ongoing fraud scheme.
The attempted loss as a result of the scheme was at least $1,808,708.47, and the defendants used, without permission, the names and personal identifying information of at least 25 victims. Hardie successfully obtained at least 11 automobiles, worth at least $697.041.13, as a result of the scheme. In addition to paying restitution, Hardie must also forfeit: a rifle with no serial number; two high capacity drum magazines for the rifle; three handguns; eight magazines; more than 300 rounds of ammunition; and other items used to create the fraudulent identity documents, all of which were recovered during searches of locations related the fraud scheme.
Co-defendants Nickolas Alexander Mathis, age 38, of Laurel, Maryland, and John Paul Thompson, Jr., age 38, of Lanham, Maryland, have both pleaded guilty to their roles in the scheme. Each faces a maximum sentence of 20 years in federal prison for the wire fraud conspiracy and for wire fraud; and a mandatory sentence of two years in federal prison, consecutive to any other sentence imposed, for aggravated identity theft. Judge Xinis has scheduled sentencing for Thompson and Mathis for February 1, 2023 and February 24, 2023, respectively.
United States Attorney Erek L. Barron commended the U.S. Secret Service, the HSI, the U.S. Postal Inspection Service, and the Laurel Police Department for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Leah Grossi and Geonard Butler, who are prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to report fraud, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/report-fraud.
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