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18 October 2022
U.S. Department of Justice announces grants totaling nearly $3 million in the Southern District of GeorgiaRead the Press Release
SAVANNAH, GA: The U.S. Department of Justice has announced more than $2.8 million in grants awarded to agencies and entities to support law enforcement and public safety initiatives in the Southern District of Georgia.
These federal grants include funding for the Project Safe Neighborhoods (PSN) Program, a key component of the Department of Justice’s Comprehensive Strategy for Reducing Violent Crime, and funding from the Office of Community-Oriented Policing (COPS), said David H. Estes, U.S. Attorney for the Southern District of Georgia.
“These grant awards will assist law enforcement agencies throughout the Southern District in our continued fight against violent crime, while also supporting communities and agencies allied in our efforts to improve the safety of our neighborhoods,” said U.S. Attorney Estes.
The end-of-fiscal-year 2022 PSN grant to the Southern District of $100,665, administered by the Bureau of Justice Assistance through Georgia’s Criminal Justice Coordinating Council, will distribute funding to Savannah, Augusta, and Brunswick, the three most populous cities in the Southern District, in collaboration with local public safety agencies to help achieve reductions in violent crime, including gun homicides.
“Reducing violence and sustaining those reductions will require strong partnerships between criminal justice agencies and community stakeholders and a shared commitment to the safety and well-being of every community member,” said Office of Justice Programs Deputy Assistant Attorney General Maureen Henneberg. “The investments we are making through Project Safe Neighborhoods will enable every stakeholder to play a part in building safer and healthier communities.”
Additional DOJ grants awarded during the regular end-of-fiscal-year funding cycle include:
Office of Community-Oriented Policing (COPS) Hiring Program:
- City of Swainsboro, $316,653
COPS School Violence Prevention Program:
- Lincoln County School District, $274,065
Office for Victims of Crime (OVC) Housing Assistance Grants for Victims of Human Trafficking:
- Tharros Place, Inc., Savannah, $750,000
Bureau of Justice Assistance (BJA) grants through the Adult Drug Court Discretionary Grant Program:
- Bulloch County Board of Commissioners, $739,172
BJA – STOP School Violence Prevention Program:
- New Bethlehem Community Center, Inc., Augusta, $333,333
BJA – The Kevin and Avonte Program: Reducing Injury and Death of Missing Individuals with Dementia and Developmental Disabilities:
- Liberty County, $120,000
BJA – The Edward Byrne Memorial Justice Assistance Grant Program:
- City of Savannah, $126,177
- Augusta/Richmond County, $52,106
- Glynn County, $24,527
- Liberty County, $14,242
- City of Waycross, $10,022
BJA – Body-worn Camera Policy and Implementation Program:
- Liberty County, $53,940
- City of Thomson, $9,825
More information on the implementation of these grants is available from the individual recipient agencies, and from the U.S. Department of Justice grants information page at justice.gov/grants.
U.S. Attorney’s Office Reaches Settlement with New Jersey Transit to Ensure Equal Access for Individuals with Disabilities at Five Intercity Rail StationsRead the Press Release
NEWARK, N.J. – The U.S. Attorney’s Office for the District of New Jersey has reached a settlement with New Jersey Transit Corporation (NJ Transit) to resolve findings that its intercity rail stations are not accessible to individuals with disabilities in violation of the Americans with Disabilities Act of 1990 (ADA), U.S. Attorney Philip R. Sellinger announced.
“This Office is committed to ending unlawful barriers to inclusion and equality in our society,” U.S. Attorney Sellinger said. “For too long, people with disabilities have been deprived of equal access to intercity rail stations operated by NJ Transit. In ways large and small, people with disabilities were denied full access to transportation services – whether it was the lack of access to restrooms, no signs, bad ramps, poor access to elevators, or that parking spaces were just too small for those who needed wheelchair access. Through this resolution, we are holding NJ Transit to its obligation to provide accessible transportation services to all. To their credit, NJ Transit has swiftly recognized these deficiencies and already begun to bring its intercity rail stations into compliance with the ADA.”
Under the agreement, New Jersey Transit has committed to make five intercity rail stations – Newark Penn, Princeton Junction, MetroPark, Trenton, and New Brunswick – accessible to individuals with disabilities. New Jersey Transit must modify multiple portions of the rail stations and their access points, including physical modifications to multiple platforms, waiting areas, parking lots, and restrooms.
This matter was prosecuted by the U.S. Attorney’s Office Civil Rights Division, which U.S. Attorney Sellinger created in 2022. The Division’s sole focus is to enforce federal civil rights laws, including the ADA, with the goal of protecting and upholding the civil rights of those in our community. Individuals who believe they may have been victims of discrimination may file a complaint with the Civil Rights Division at http://www.justice.gov/usao-nj/civil-rights-enforcement/complaint or call the U.S. Attorney’s Office Civil Rights Hotline at (855) 281-3339. Additional information about the ADA can be found at www.ada.gov, or by calling the Department of Justice’s toll-free ADA information line at 800-514-0301 or 800-514-0383 (TDD).
The government is represented by Assistant U.S. Attorney Michael E. Campion, Chief of the U.S. Attorney’s Office Civil Rights Division.
U.S. Attorney’s Office Hosts Roundtable on Sexual Harassment in HousingRead the Press Release
PHOENIX, Ariz. – The U.S. Attorney’s Office for the District of Arizona and the Justice Department’s Civil Rights Division hosted a roundtable today for community organizations to discuss the problem of sexual harassment in housing, U.S. Attorney Gary Restaino announced. The U.S. Attorney’s Office is asking anyone who has witnessed or experienced sexual harassment by a landlord, property manager, maintenance worker, or anyone with control over housing to report that conduct to the Department of Justice.
“Sexual harassment in housing is underreported and hard to detect,” U.S. Attorney Restaino said. “Landlords and others with control over housing often commit egregious violations of the Fair Housing Act by using their power over tenants to extort sexual acts, or even commit assaults. Our office is committed to uncovering such intolerable violations and vigorously enforcing the law.”
The Department of Justice, through the U.S. Attorneys’ Offices and the Civil Rights Division, enforces the Fair Housing Act, which prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin, and disability. Sexual harassment is a form of sex discrimination prohibited by the Act.
Today’s roundtable was hosted as part of the Justice Department’s Sexual Harassment in Housing Initiative (https://www.justice.gov/crt/sexual-harassment-housing-initiative), an effort to combat sexual harassment in housing across the country. The Justice Department’s initiative seeks to identify barriers to reporting sexual harassment in housing, increase awareness of the Justice Department’s enforcement efforts, and collaborate with federal, state, and local partners to increase reporting and help people who have experienced sexual harassment quickly and easily connect with federal resources. Roundtable discussions like the one U.S. Attorney Gary Restaino hosted today are one way to increase awareness and build strong partnerships in the community to combat the problem together.
Launched in 2017, the Initiative has filed 26 lawsuits across the country alleging sexual harassment in housing and recovered over $9.6 million in damages for harassment victims. The Justice Department’s investigations frequently uncover sexual harassment that has been ongoing for years. Many individuals do not know that being sexually harassed by a housing provider can violate federal law or that the Department of Justice may be able to help.
The Department encourages anyone who has experienced sexual harassment in housing, or knows someone who has, to submit a report online or contact the U.S. Attorney’s Office for the District of Arizona by calling (602) 528-7299, visiting https://www.justice.gov/usao-az, or by emailing USAAZ.CivRightsCompl@usdoj.gov.
Individuals may also file a complaint alleging harassment or discrimination in housing with the Department of Housing and Urban Development through HUD’s website or by calling (800) 669-9777.
RELEASE NUMBER: 2022-182_Sexual Harassment in Housing Roundtable
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
U.S. Attorney's Office Announces Election Day ProgramRead the Press Release
CHARLOTTE, N.C. – United States Attorney Dena J. King announced today that Assistant United States Attorneys (AUSAs) Michael Savage in Charlotte, and Don Gast in Asheville, will lead the efforts of their Office in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 8, 2022, general election.
AUSAs Michael Savage and Don Gast have been appointed to serve as the District Election Officers (DEOs) for the Western District of North Carolina, and, in that capacity, they are responsible for overseeing the District’s handling of election day complaints of voting rights concerns, threats of violence to election officials or staff, and election fraud, in consultation with Justice Department Headquarters in Washington, D.C.
“Every citizen must be able to vote without interference or discrimination and to have that vote counted in a fair and free election,” said U.S. Attorney King. “Similarly, election officials and staff must be able to serve without being subject to unlawful threats of violence. The Department of Justice will always work tirelessly to protect the integrity of the election process.”
The Department of Justice has an important role in deterring and combatting discrimination and intimidation at the polls, threats of violence directed at election officials and poll workers, and election fraud. The Department will address these violations wherever they occur. The Department’s longstanding Election Day Program furthers these goals and also seeks to ensure public confidence in the electoral process by providing local points of contact within the Department for the public to report possible federal election law violations.
Federal law protects against such crimes as threatening violence against election officials or staff, intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters, and provides that they can vote free from interference, including intimidation, and other acts designed to prevent or discourage people from voting or voting for the candidate of their choice. The Voting Rights Act protects the right of voters to mark their own ballot or to be assisted by a person of their choice (where voters need assistance because of disability or inability to read or write in English).
U.S. Attorney King stated that, “The franchise is the cornerstone of American democracy. We all must ensure that those who are entitled to the franchise can exercise it if they choose, and that those who seek to corrupt it are brought to justice.”
In order to respond to complaints of voting rights concerns and election fraud during the upcoming election, and to ensure that such complaints are directed to the appropriate authorities, AUSAs/DEOs Savage and Gast will be on duty in this District while the polls are open. AUSA Savage can be reached by the public in Charlotte at 704-344-6222, and AUSA Gast can be reached in Asheville at 828-271-4661.
In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day. The local FBI field office can be reached by the public at 704-672-6100.
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division in Washington, D.C. by phone at 800-253-3931 or by complaint form at https://civilrights.justice.gov/.
U.S. Attorney King said, “Ensuring free and fair elections depends in large part on the assistance of the American electorate. It is important that those who have specific information about voting rights concerns or election fraud make that information available to the Department of Justice.”
Please note, however, in the case of a crime of violence or intimidation, please call 911 immediately and before contacting federal authorities. State and local police have primary jurisdiction over polling places, and almost always have faster reaction capacity in an emergency.
U.S. Attorney Young Announces District Election OfficerRead the Press Release
CONCORD - United States Attorney Jane E. Young announced today that Assistant United States Attorney (AUSA) Seth R. Aframe will lead the efforts of her office in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 8, 2022, general election. AUSA Aframe has been appointed to serve as the District Election Officer (DEO) for the District of New Hampshire, and in that capacity is responsible for overseeing the District’s handling of election day complaints of voting rights concerns, threats of violence to election officials or staff, and election fraud, in consultation with Justice Department Headquarters in Washington.
United States Attorney Young said, “Every citizen must be able to vote without interference or discrimination and to have that vote counted in a fair and free election. Similarly, election officials and staff must be able to serve without being subject to unlawful threats of violence. The Department of Justice will always work tirelessly to protect the integrity of the election process.”
The Department of Justice has an important role in deterring and combatting discrimination and intimidation at the polls, threats of violence directed at election officials and poll workers, and election fraud. The Department will address these violations wherever they occur. The Department’s longstanding Election Day Program furthers these goals and also seeks to ensure public confidence in the electoral process by providing local points of contact within the Department for the public to report possible federal election law violations.
Federal law protects against such crimes as threatening violence against election officials or staff, intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters, and provides that they can vote free from interference, including intimidation, and other acts designed to prevent or discourage people from voting or voting for the candidate of their choice. The Voting Rights Act protects the right of voters to mark their own ballot or to be assisted by a person of their choice (where voters need assistance because of disability or inability to read or write in English).
United States Attorney Young stated that: “The right to vote is the cornerstone of American democracy. We all must ensure that those who are entitled to the right to vote can exercise it if they choose, and that those who seek to corrupt it are brought to justice. In order to respond to complaints of voting rights concerns and election fraud during the upcoming election, and to ensure that such complaints are directed to the appropriate authorities, AUSA/DEO Aframe will be on duty in this District while the polls are open. He can be reached by the public at the following telephone number: 603-230-2503.
In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day. The local FBI field office can be reached by the public at 857-386-2000 or at tips.fbi.gov.
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division in Washington, DC by phone at 800-253-3931 or by complaint form at https://civilrights.justice.gov/ .
United States Attorney Young said, “Ensuring free and fair elections depends in large part on the assistance of the American electorate. It is important that those who have specific information about voting rights concerns or election fraud make that information available to the Department of Justice.”
Please note, however, in the case of a crime of violence or intimidation, please call 911 immediately and before contacting federal authorities. State and local police have primary jurisdiction over polling places, and almost always have faster reaction capacity in an emergency.
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U.S. Attorney Gerard M. Karam Announces $554,355 in Justice Department Grants to Support Project Safe NeighborhoodsRead the Press Release
SCRANTON – United States Attorney Gerard M. Karam announced that the Department of Justice has awarded $554,355 to support the Project Safe Neighborhoods Program in the Middle District of Pennsylvania. Funding will support community efforts to address gun crime and serious violence in the district. The grants to Pennsylvania Commission on Crime and Delinquency are just a few of the awards being made to state and local agencies across the country. Funds are administered by the Bureau of Justice Assistance, which is part of the Department’s Office of Justice Programs.
Launched two decades ago as an evidence-based and community-oriented response to serious gun crime, Project Safe Neighborhoods, known as PSN, is a key component of the Department’s Comprehensive Strategy for Reducing Violent Crime, outlined by Deputy Attorney General Monaco in May 2021. The PSN approach is guided by four key 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 of our efforts. The fundamental goal is to reduce violent crime, not simply to increase the number of arrests or prosecutions.
“The Justice Department’s grants provide resources for our state and local law partners to help protect individuals and communities from violent crime,” said Associate Attorney General Vanita Gupta. “Through Project Safe Neighborhoods, the Department is taking a comprehensive approach, recognizing that we cannot simply arrest our way out of this problem—the resources in these grants will help our state and local partners reduce gun violence through increased community trust and investments in community-based initiatives like violence intervention programs.”
“These funds will continue to help reduce violence in our communities across the Middle District of Pennsylvania,” said U.S. Attorney Karam. “We remain focused on prioritizing our violent crime reduction efforts through the PSN initiative, including prevention and treatment to stop incidents before they start.”
PSN programs are led by U.S. Attorneys’ Offices in collaboration with local public safety agencies and community organizations. The programs’ emphasis on community engagement, prevention and intervention measures, focused and strategic enforcement, and measurement and accountability has helped achieve overall reductions in violent crime, including gun homicides, in neighborhoods where PSN strategies have been implemented.
“Over its two-decade history, Project Safe Neighborhoods has evolved to meet the complex challenges of community violence by enlisting the insights and expertise of local partners and by relying on the latest evidence,” said BJA Director Karhlton F. Moore. “We are proud to support our U.S. Attorneys and their allies in their critical work to curb violent crime and build the mutual trust necessary to ensure lasting success.”
The awards announced above are being made as part of the regular end-of-fiscal year cycle. More information about awards under PSN and other OJP grants can be found on the OJP Grant Awards Page.
The Office of Justice Programs provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, advance racial equity in the administration of justice, assist victims and enhance the rule of law. More information about OJP and its components can be found at www.ojp.gov.
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U.S. Attorney Duston Slinkard Announces $168,085 Justice Department Grant to Support Project Safe NeighborhoodsRead the Press Release
[TOPEKA, KAN.] – U.S. Attorney Duston Slinkard announced that the Department of Justice has awarded $168,085 to support the Project Safe Neighborhoods Program in U.S. Attorney’s Office – District of Kansas. Funding will support community efforts to address the epidemic of gun crime and serious violence in the district. The grant, to Wichita State University, is one of a number of awards being made to state and local agencies across the country. Funds are administered by the Bureau of Justice Assistance, part of the Department’s Office of Justice Programs.
Launched two decades ago as an evidence-based and community-oriented response to serious gun crime, Project Safe Neighborhoods, known as PSN, is a key component of the Department’s Comprehensive Strategy for Reducing Violent Crime, outlined by Deputy Attorney General Monaco in May 2021. The PSN approach is guided by four key 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 of our efforts. The fundamental goal is to reduce violent crime, not simply to increase the number of arrests or prosecutions.
“The Department of Justice sees great value in investing resources into violent crime prevention initiatives that encourage people to steer away from criminal activity instead of solely allowing for funding to bring perpetrators to justice after someone has been injured or killed” said U.S. Attorney Duston Slinkard. “The U.S. Attorney’s Office – District of Kansas is grateful to Wichita State University for agreeing to take the lead on this collaborative effort to make our communities safer places to live.”
“Reducing violence and sustaining those reductions will require strong partnerships between criminal justice agencies and community stakeholders and a shared commitment to the safety and well-being of every community member,” said OJP Deputy Assistant Attorney General Maureen Henneberg. “The investments we are making through Project Safe Neighborhoods will enable every stakeholder to play a part in building safer and healthier communities.”
PSN programs are led by U.S. Attorneys’ Offices in collaboration with local public safety agencies and community organizations. The programs’ emphasis on community engagement, prevention and intervention measures, focused and strategic enforcement, and measurement and accountability has helped achieve overall reductions in violent crime, including gun homicides, in neighborhoods where PSN strategies have been implemented.
“Over its two-decade history, Project Safe Neighborhoods has evolved to meet the complex challenges of community violence by enlisting the insights and expertise of local partners and by relying on the latest evidence,” said BJA Director Karhlton F. Moore. “We are proud to support our U.S. Attorneys and their allies in their critical work to curb violent crime and build the mutual trust necessary to ensure lasting success.”
The awards announced above are being made as part of the regular end-of-fiscal year cycle. More information about awards under PSN and other OJP grants can be found on the OJP Grant Awards Page.
The Office of Justice Programs provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, advance racial equity in the administration of justice, assist victims and enhance the rule of law. More information about OJP and its components can be found at www.ojp.gov.
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U.S. Attorney Announces Results of Multi-Faceted Strategy to Combat Fraud Related to COVID-19Read the Press Release
Tampa, FL – United States Attorney Roger B. Handberg announces the results achieved by the Middle District of Florida’s efforts to combat fraud related to COVID-19 during fiscal year 2022, ending September 30, 2022. Those efforts have included complementary actions by the Criminal, Asset Recovery, and Civil Divisions, along with federal, state, and local law enforcement agencies.
“The U.S. Attorney’s Office will continue to work with its law enforcement partners to protect the integrity of government programs established to provide relief for those impacted by the COVID-19 pandemic,” said U.S. Attorney Handberg. “Those who seek to exploit these programs and further harm victims should beware. We will prosecute them to the fullest extent of the law.”
On the criminal-enforcement front, the United States Attorney’s Office and federal, state, and local law enforcement agencies joined together in March 2020 to form the Middle District of Florida COVID-19 Fraud Task Force to identify, investigate, and prosecute fraud related to the ongoing COVID-19 pandemic. Since its inception, the task force has prosecuted more than 40 defendants for fraud schemes designed to exploit federal programs created or expanded to address the COVID-19 pandemic, including the Paycheck Protection Program (“PPP”), Economic Injury Disaster Loans (“EIDL”), Unemployment Insurance (“UI”), the Main Street Lending Program (“MSLP”), and the Emergency Rental Assistance Program (“ERAP”). These cases and matters involve diverse schemes, from traditional healthcare fraud involving COVID-19 programs, to violent gangs using unemployment insurance fraud proceeds to operate their narcotics businesses. These defendants collectively sought to defraud the United States of over $43 million. Over thirty of those defendants have already been found guilty, while prosecution remains pending against nine defendants. (See chart for criminal case details.)
For example, on September 15, 2022, Marqus Johnson (40, Tampa) pleaded guilty to a 9-count Information charging him with bank fraud and illegal monetary transactions. Johnson formed and operated two corporate entities—All American Health, LLC and Next Level Health & Transportation, LLC—that purportedly were engaged in health care-related transportation services. In April and June 2020 and January 2021, Johnson use false and fraudulent representations to apply for a total of seven SBA-backed loans (one PPP loan and six EIDL) and received loan funding in connection with three of the loan applications. Based on his false representations, Johnson fraudulently obtained $544,900, including a $375,000 PPP loan.
In another matter, Julio Lugo (45, Davenport), a convicted felon on federal supervised release, conspired with others to steal nearly $6 million from the SBA’s PPP and EIDL programs and launder the proceeds of those stolen funds. Lugo pleaded guilty conspiracy to commit money laundering and was sentenced to more than nine years in federal prison on July 28, 2022. The court also imposed a forfeiture money judgment in the amount of $4.4 million and entered an order of restitution in the amount of $4.8 million.
The Middle District of Florida has been at the forefront of addressing the complex issues that arise out of investigating and charging frauds relating to new government programs. The Fort Myers Division, for example, was the first office in the country to take a COVID-19 fraud case to trial in United States v. Casey Crowther. Crowther was found guilty and sentenced to more than three years in federal prison. The Orlando Division meanwhile handled the country’s first COVID-19 fraud-related extradition in United States v. Don V. Cisternino. Cisternino recently pleaded guilty to wire fraud, aggravated identity theft, and illegal monetary transactions related to his scheme to secure more than $7.2 million in emergency funds through a PPP loan.
Further, the Asset Recovery Division and federal seizing agencies have completed the forfeiture of more than $14.3 million of EIDL, UI, and PPP funds that were fraudulently obtained, depriving the fraudsters of their ill-gotten gains and recovering the proceeds for the victims. More than $8.5 million in additional pandemic fraud proceeds have been seized and are pending civil or criminal forfeiture.
The Attorney General has established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Through the PPP, the federal government authorized over $600 billion in forgivable loans to small businesses for job retention and certain other expenses through the PPP. The EIDL program provides economic relief to small businesses that are currently experiencing a temporary loss of revenue. The MSLP provided support to small and medium-sized businesses and their employees across the United States during the COVID-19 pandemic. UI programs provided unemployment benefits to eligible workers who became unemployed through no fault of their own.
The criminal cases charged by the Middle District of Florida COVID-19 Fraud Task Force have been investigated by the Federal Bureau of Investigation, United States Secret Service, Internal Revenue Service—Criminal Investigation, Department of Labor—Office of Inspector General, U.S. Postal Service, Federal Housing Finance Agency, Small Business Administration, Federal Deposit Insurance Corporation—Office of Inspector General, Homeland Security Investigations, Bureau of Alcohol, Tobacco, Firearms and Explosives, Special Inspector General for Pandemic Recovery, Federal Reserve Board – Office of Inspector General, Metropolitan Bureau of Investigation, the Tampa Police Department, the Orlando Police Department, the Manatee County Sheriff’s Office, the Hillsborough County Sheriff’s Office, the Sarasota County Sheriff’s Office, the Winter Park Police Department, the Osceola County Sheriff’s Office, the Seminole County Sheriff’s Office, and the Orange County Sheriff’s Office. The cases are being prosecuted by Assistant United States Attorneys throughout the Middle District of Florida.
The Department of Justice needs the public’s assistance in remaining vigilant and reporting suspected fraudulent activity. To report suspected fraud, contact the National Center for Disaster Fraud (NCDF) at (866) 720-5721 or file an online complaint at: https://www.justice.gov/disaster-fraud/webform/ncdf-disaster-complaint-form. Complaints filed will be reviewed at the NCDF and referred to federal, state, local, or international law enforcement or regulatory agencies for investigation.
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.
Defendant(s) (Age)
Charge(s)
Max. Imprisonment
Type of Fraud*
Intended Loss
Amount
Tampa Division
Joseph Abdo (39)
Wire fraud
Maximum Prison Term: 20 Years
Illegal monetary transactions
Maximum Prison Term: 10 Years
PPP
$500k
Jorge Gutierrez Echeverria (33)
Wire fraud
Maximum Prison Term: 20 Years
EIDL
$150k
Alexander Leszczynski (22)
Wire fraud
Maximum Prison Term: 20 Years
Bank fraud
Maximum Prison Term: 30 Years
Illegal monetary transactions
Maximum Prison Term: 10 Years
PPP
$200k
Charles Cunningham (72)
Bank fraud
Maximum Prison Term: 30 years
PPP
$800K
These COVID Fraud cases from the Tampa Division are being handled by AUSAs Rachel Jones, Greg Pizzo, Candace Rich, Diego Novaes, and Jennifer Peresie
Orlando Division
Brian Blake (30)
Possession of device-making equipment
Maximum Prison Term: 15 Years
Access device fraud
Maximum Prison Term: 10 Years
Aggravated identity theft
Maximum: Prison Term: Two Years Consecutive
PPP/UI
$832k
Emmet Bowens (53)
Wire fraud
Maximum Prison Term: 20 Years
Illegal monetary transactions
Maximum Prison Term: 10 Years
PPP
$740k
These COVID Fraud cases from the Orlando Division are being handled by AUSAs Chauncey Bratt and Amanda Daniels
Jacksonville Division
Jacob Byrd
Wire fraud
Maximum Prison Term: 20 Years
PPP
$20K
This COVID Fraud case from the Jacksonville Division is being handled by AUSA Kevin Frein
Fort Myers Division
Venera Price (45)
Mail fraud
Maximum Prison Term: 20 Years
ERAP
$82K
This COVID Fraud case from the Fort Myers Division is being handled by AUSA Yolande Viacava
Ocala Division
Lavelle Harris (36)
Wire Fraud (14 counts)
Maximum Prison Term: 20 Years per count
PPP
$1.2M
This COVID Fraud case from the Ocala Division is being handled by AUSA Hannah Nowalk
Adjudicated Cases
Tampa Division
Keith Nicoletta (49)
Conspiracy to commit money laundering
Maximum Prison Term: 20 Years
PPP
$1.9M
Rosenide Venant (37)
Conspiracy to commit money laundering
Maximum Prison Term: 20 Years
EIDL/PPP
$413k
Keaujay Hornsby (26)
Racketeering conspiracy
Maximum Prison Term: 20 Years
Aggravated identity theft
Maximum Prison Term: Two Years Consecutive
Access device fraud
Maximum Prison Term: 10 Years
UI
$3M
Kareem Spann (27)
Racketeering conspiracy
Maximum Prison Term: 20 Years
Aggravated identity theft
Maximum Prison Term: Two Years Consecutive
Access device fraud
Maximum Prison Term: 10 Years
UI
$3M
Melinda Hernandez (33)
Conspiracy to commit wire fraud
Maximum Prison Term: 5 Years
Wire fraud
Maximum Prison Term: 20 Years
Aggravated identity theft
Maximum: Prison Term: Two Years Consecutive
UI
$1.5M
Richard Simpkins (47)
Conspiracy to commit bank fraud
Maximum Prison Term: 30 Years
Illegal monetary transactions
Maximum Prison Term: 10 Years
PPP
$1.9M
Steve Moodie (33)
Conspiracy to commit wire fraud
Maximum Prison Term: 5 Years
Wire fraud
Maximum Prison Term: 20 Years
Aggravated identity theft
Maximum: Prison Term: Two Years Consecutive
UI
$1.5M
Marqus Willard Johnson
Bank fraud
Maximum Prison Term: 30 Years
Money laundering
Maximum Prison Term: 20 Years
PPP
$500K
These COVID Fraud cases from the Tampa Division are being handled by AUSAs Rachel Jones, Tiffany Fields, John Michelich, and Greg Pizzo
Orlando Division
Daniel Johnson (34)
Conspiracy to commit wire fraud
Maximum Prison Term: 20 Years
Aggravated identity theft
Maximum Prison Term: Two Years Consecutive
Unlawful transfer of firearm
Maximum Prison Term: 5 Years
UI
$2.3M
Joel Greenberg (37)
Conspiracy to commit wire fraud and other offenses while on pretrial release
Maximum Prison Term: 15 Years
EIDL
$430k
Teresa McIntyre (55)
Conspiracy to commit wire fraud and other offenses
Maximum Prison Term: 5 Years
EIDL
$730k
Don Cisternino (46)
Wire fraud
Maximum Prison Term: 20 Years
Illegal Monetary Transactions
Maximum Prison Term: 10 Years
Aggravated Identity Theft
Maximum Prison Term: Two Years Consecutive
PPP
$7.2M
This COVID Fraud cases from the Orlando Division are being handled by U.S. Attorney Roger Handberg and AUSAs Chauncey Bratt, Amanda Daniels, Jennifer Harrington, and Dana Hill
Fort Myers Division
Daniel Joseph Tisone (34)
Wire fraud
Maximum Prison Term: 20 Years
Bank fraud
Maximum Prison Term: 30 Years
Money laundering
Maximum Prison Term: 10 Years
Aggravated Identity Theft
Maximum Prison Term: 2 Years Consecutive
Possession of Ammunition by a Prohibited Person
Maximum Prison Term: 10 Years
PPP/EIDL/MSLP
$2.6M
Liliana Gonzalez (31)
Wire fraud
Maximum Prison Term: 20 Years
PPP
$169k
These COVID Fraud cases from the Fort Myers Division are being handled by AUSAs Trent Reichling and Jesus M. Casas
Sentenced Cases
Tampa Division
Louis Thornton, III (63)
Wire Fraud
Sentence Imposed: 42 months in federal prison
EIDL/PPP
$815k
Kary Stevenson (48)
Corey Quinn (35)
Conspiracy to commit access device fraud and aggravated identity theft
Sentence Imposed: 5 years, 10 months in federal prison (Stevenson)
Sentence Imposed:7 years in federal prison (Quinn)
UI
$1M
Bridgitte Keim (52)
Bank fraud
Sentence Imposed: 2 years in federal prison
PPP
$588k
Wayne Ganaway (47)
Conspiracy to commit wire fraud
Sentence Imposed: 4 years in federal prison
EIDL
$300k
Eriaius Bentley (29)
Racketeering conspiracy, aggravated identity theft, access device fraud
Sentence Imposed: One year in federal prison
UI
$3M
Rolanda Wingfield (39)
Access device fraud, Aggravated identity theft
Sentenced Imposed: 3 years in federal prison
UI
$135k
Tywon Spann (25)
Racketeering conspiracy, aggravated identity theft, access device fraud
Sentence Imposed: 6 years and 9 months in federal prison
UI
$3M
Randy Jones (34)
Wire fraud, aggravated identity theft
Sentence Imposed: 5 years and 1 month in federal prison
EIDL/UI
$250k
Julio Lugo (45)
Conspiracy to commit money laundering
Sentence Imposed: 7 years and 6 months in federal prison
EIDL/PPP
$4.4M
These COVID Fraud cases from the Tampa Division were handled by AUSAs Rachel Jones, Greg Pizzo, Tiffany Fields, Diego Novaes, and SAUSA Chris Poor
Orlando Division
Jacquavius Smith (21)
Possession of short-barreled rifle; felon in possession of firearm; and aggravated identity theft
Sentence Imposed: 7 years, 1 month in federal prison
PPP
$10k
Johnson Eustache (40)
Wire fraud
Sentence Imposed: 5 years in federal prison
EIDL/PPP
$2.2M
Joseph Harrison (43)
Conspiracy to commit wire fraud
Sentence Imposed: 12 months in federal prison
UI
$2.1M
Tomas Ziupsnys (39)
Conspiracy to commit bank fraud; bank fraud; aggravated identity theft
Sentence Imposed: 5 years in federal prison
PPP
$2M
Holly Urban (36)
Conspiracy to commit bank fraud
Sentence Imposed: 30 months in federal prison
PPP
$1.5M
These COVID Fraud cases from the Orlando Division were handled by AUSAs John Gardella, Amanda Daniels, Chauncey Bratt, Emily Chang, and Jennifer Harrington
Fort Myers Division
Casey Crowther (36)
Bank fraud, false statement to a financial institution, illegal monetary transaction
Sentence Imposed: 3 years, 1 month in federal prison
PPP
$2.7M
Anthony Bruey (36)
Amber Bruey (35)
Conspiracy to commit wire fraud
Wire fraud
Conspiracy to commit money laundering
Illegal monetary transactions
Sentence Imposed:
Anthony Bruey: 4 years, 3 months in federal prison
Amber Bruey: 4 years in federal prison
PPP/EIDL
$881k
Edrica Leann Watson (30)
False statement to a lending institution
Sentence Imposed: 15 months in federal prison
PPP
$392k
These COVID Fraud cases from the Fort Myers Division were handled by AUSA Trent Reichling and AUSA Jesus M. Casas
Types of Fraud*
Economic Injury Disaster Loan (EIDL)
Paycheck Protection Program (PPP)
Unemployment Insurance (UI)
Main Street Lending Program (MSLP)
Emergency Rental Assistance Program (ERAP)
Two Sentenced for Cocaine ConspiracyRead the Press Release
Acting United States Attorney Steven Russell announced that Michael Aponte, 32, of Pennellville, New York, and Rawy Correa-Perez, 31, of Avon Park, Florida, were sentenced today by United States District Judge Brian C. Buescher, for conspiracy to possess with intent to distribute 5 kilograms or more of cocaine and possession with intent to distribute 5 kilograms or more of cocaine. Aponte received a sentence of 130 months’ imprisonment with a five-year term of supervised release to follow. Correa-Perez received a sentence of 97 months’ imprisonment with a five-year term of supervised release to follow. There is no parole in the federal system.
Both Aponte and Correa-Perez were found guilty by a jury on May 19, 2022. At trial, Douglas County Nebraska deputies testified that on February 26, 2021, they stopped a vehicle driven by Aponte for a traffic violation. Correa-Perez was a passenger in the vehicle. During the contact with Aponte and Correa-Perez, deputies noted several indicators of criminal behavior. Deputies deployed “Bezos,” a certified drug detection canine, to perform a sniff around the vehicle. Bezos indicated to the presence of narcotics in the vehicle. Deputies searched the vehicle and found 34 pounds of cocaine in the spare tire.
The Drug Enforcement Administration assisted in the investigation. DEA special agents testified to obtaining and analyzing electronic data that was obtained from Apple Inc. for both Aponte and Correa-Perez. The electronic data contained photographs consistent with the drug trade. Special agents also provided expert testimony, including that the cocaine had a value of approximately $390,000.
In addition, the Douglas County Sheriff’s Office Forensic Services Bureau assisted in the analysis of both the cocaine and fingerprints that were obtained from the cocaine packaging.
This case was investigated by the Douglas County Sheriff’s Office and the Drug Enforcement Administration.
Two Hudson County Men Indicted for Armed Bank RobberyRead the Press Release
NEWARK, N.J. – A federal grand jury today indicted two men in connection with the armed robbery of a bank in Union City, New Jersey, U.S. Attorney Philip R. Sellinger announced.
Juan Jimenez, 23, of Union City, New Jersey, and Nicholas Seda-Corales, 24, of West New York, New Jersey, were previously each charged by complaint with one count of bank robbery and one count of using and carrying a firearm during and in relation to a crime of violence. Both individuals are in custody. They will be arraigned at a date to be determined.
According to documents filed in this case and statements made in court:
On April 8, 2022, Jimenez and Seda-Corales entered a bank in Union City, New Jersey, dressed in dark clothing and wearing face masks. Jimenez drew a handgun, aimed it into the teller area, and jumped over the teller counter. Seda-Corales made his way toward the rear of the bank to prevent bystanders from exiting through a back door. Video footage depicts Jimenez searching several drawers in the teller area before jumping back over the counter and fleeing the bank with Seda-Corales. Law enforcement officers later executed a search warrant at Jimenez’s apartment and recovered three handguns and clothing consistent with that worn by Jimenez and Seda-Corales during the robbery.
The bank robbery charges carry a maximum potential penalty of 20 years in prison and a $250,000 fine. The brandishing a firearm during the bank robbery charge carries a mandatory minimum sentence of seven years in prison and a maximum sentence of life in prison, which must be served consecutive to the other counts.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation, leading to the charges.
The government is represented by Assistant U.S. Attorney John F. Mezzanotte of the General Crimes Unit Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
The Organized Crime Drug Enforcement Task Forces Celebrates 40th AnniversaryRead the Press Release
WASHINGTON – The Department of Justice’s Organized Crime Drug Enforcement Task Forces (OCDETF) was created by Presidential Order four decades ago. On Oct. 14, 1982, in the Great Hall of the Department of Justice building, President Ronald Reagan announced a new coordinated federal government effort bringing together prosecutors and law enforcement agencies to attack the command and control elements of the drug trafficking organizations responsible for moving massive quantities of illicit narcotics into the country.
The White House directed that the OCDETF’s top priority would be to disrupt the sales and distribution networks of the traffickers. Some of the department’s most notable successes against drug cartels have resulted from OCDETF coordinated investigations and prosecutions. OCDETF was instrumental in taking down the powerful Colombian cartels of the 1980s; the notorious and violent Mexican cartels such as the Tijuana, Juarez and Gulf Cartels in the 1990s; and the methamphetamine, heroin, fentanyl and opioid threats from all over the world in the last two decades.
As criminal networks have grown more sophisticated in the last 40 years — branching out to more varied types of criminal activity — OCDETF has responded by expanding its mission beyond drug trafficking organizations and money laundering networks to all forms of transnational organized crime. OCDETF is fully engaged in all manner of investigations into criminal networks involved in human smuggling, sophisticated financial fraud, cyber-enabled crime, illicit finance, arms trafficking, government benefits theft, business e-mail compromise and U.S. sanctions evasion. OCDETF is uniquely and ideally structured to support the fight against transnational organized crime through operational integration, collaboration and law enforcement information sharing.
“Since its founding, OCDETF has been a synchronizer and our role is to incentivize prosecutors to lead smart, creative law enforcement agents in investigations focused on priority targets of organized criminal groups and the illicit financial networks that support them,” said OCDETF Director Adam W. Cohen. “Today, OCDETF provides a forward leaning structure for our partners to work together and leverage each other’s strengths, capabilities and legal authorities resulting in continued positive impacts to the nation.”
OCDETF’s successes over the last 40 years have been made possible by strong collaboration and coordination with its member agencies. OCDETF is partnered with the 93 U.S. Attorneys’ Offices, the department’s Criminal Division and 11 federal law enforcement agencies from the Department of Justice (Bureau of Alcohol, Tobacco, Firearms and Explosives; Drug Enforcement Administration; Federal Bureau of Investigation; U.S. Marshals Service), Homeland Security (Immigration and Customs Enforcement/Homeland Security Investigations; U.S. Coast Guard; U.S. Secret Service), Treasury (Internal Revenue Service/Criminal Investigation), Postal (U.S. Postal Inspection Service), Labor (Office of the Inspector General), and State (Bureau of Diplomatic Security).
OCDETF’s governance, bringing leadership to the multi-agency transnational organized crime mission and focus on joint priority targets has generated genuine measurable accomplishments — over 34,000 multi-agency cases against priority targets, over 124,000 indictments of almost 360,000 defendants, and incredibly, over 15,690 of those resulted in impactful disruption, or even dismantlement of criminal organizations.
“As OCDETF begins our 41st year, we will continue to provide a coordination platform for comprehensive investigations and prosecutions of the most dangerous transnational criminal organizations, the successful result of which is to make our nation safer,” said OCDETF Director Cohen.
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Texas Man Indicted in Federal Court for Distribution of Child PornographyRead the Press Release
A federal grand jury recently returned a three-count indictment charging James Martin, age 50, of Beckville, Texas, with distribution of child pornography. Martin appeared for his arraignment and pled not guilty to the pending charges.
According to the criminal complaint that preceded the indictment, between July 2022 and August 2022, Martin sent more than 250 sexually explicit videos and photographs of young children, including toddlers, to an undercover FBI agent in the Middle District of Louisiana.
This matter is being investigated by the Federal Bureau of Investigation, the Louisiana Bureau of Investigation, and the Panola County, Texas Sheriff’s Office. This case is being prosecuted by Assistant United States Attorney Edward H. Warner.
NOTE: An indictment is an accusation by a grand jury. The defendant is presumed innocent until and unless adjudicated guilty at trial or through a guilty plea.
Stockton Man Sentenced to More Than 3 Years in Prison for Possession of Unregistered Firearms SilencersRead the Press Release
SACRAMENTO, Calif. — Alan Alfredo Garcia, 26, of Stockton, was sentenced Monday to three years and five months in prison for possession of unregistered silencers, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on May 31, 2019, law enforcement officers searched Garcia’s residence in Stockton and found two unregistered firearms silencers, parts for making additional silencers, an AR jig for converting AR rifle and pistol lower receivers into completed firearms, six firearms, and various firearms parts. A search of Garcia’s cellphone revealed additional evidence that he was manufacturing and modifying firearms, including to make them fully automatic.
This case was the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the San Joaquin County Sheriff’s Office, and the Stockton Police Department. Assistant U.S. Attorney David W. Spencer prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the U.S. Department of Justice launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Stamford Man Sentenced to 2 Years in Federal Prison for Unlawful Possession of a FirearmRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, today announced that AMIN HASAN, 44, of Stamford, was sentenced yesterday by U.S. District Judge Michael P. Shea in Hartford to 24 months of imprisonment, followed by three years of supervised release, for unlawful possession of a firearm. Judge Shea ordered Hasan to serve the first six months of his supervised release in a halfway house.
According to court documents and statements made in court, on December 5, 2020, Hasan was arrested by Stamford Police after causing a disturbance at a shopping plaza and a search of a van he rented revealed 13 filled 5-gallon gas cans, two hatchets, and ax and other items. The next day, law enforcement searched Hasan’s residence and seized numerous items, including a gas mask, a chainsaw, a “survival-style” knife, two backpacks containing 30 smoke grenades and 44 caltrops (spikes used to puncture vehicle tires), and a loaded Glock 9mm pistol. Investigators also found a note on Hasan’s bed with instructions to call his cousin in the event of his death. Days later, Hasan’s car was found parked in Bridgeport and contained an additional 12 filled 5-gallon gas cans, a hatchet, and other items.
In May 2019, Hasan was convicted in state court of assault of public safety, emergency medical, public transport or health care personnel. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
Hasan has been detained since his arrest. On May 6, 2022, he pleaded guilty to unlawful possession of a firearm by a felon.
Related state charges against Hasan are pending.
This matter was investigated by Federal Bureau of Investigation and Stamford Police Department. The case was prosecuted by Assistant U.S. Attorney Patrick J. Doherty.
Slidell Woman Pleads Guilty to Misappropriating Military Veteran’s FundsRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced that SLOANE SIGNAL-DEBOSE, age 51, a resident of Slidell, pled guilty to misappropriating funds from a veteran while SIGNAL was the veteran’s fiduciary.
The government filed a one-count bill of information that charged SIGNAL with misappropriation by a veteran’s fiduciary, in violation of Title 38, United States Code, Section 6101. According to court documents, from 2016 until 2018 SIGNAL was a fiduciary for a veteran who needed assistance with the management of his affairs, and controlled the veteran’s finances and bank accounts. During that time, SIGNAL took over $100,000 from the veteran’s accounts, routed it through bank accounts in her own name, ultimately using it as the down payment on a home for SIGNAL that was only in SIGNAL’s name. SIGNAL also used additional funds from the veteran to pay contractors working on SIGNAL’s home. SIGNAL then submitted false records to the Department of Veteran’s Affairs to hide her misuse of the veteran’s funds.
SIGNAL faces up to five years in prison, up to three years of supervised release after release from prison, a fine of up to $250,000 or twice the gross gain to SIGNAL or the gross loss to any victims, and a mandatory $100 special assessment fee. Judge Sarah S. Vance set the sentencing hearing for February 15, 2023.
U.S. Attorney Evans praised the work of the Department of Veterans Affairs Office of Inspector General. Assistant United States Attorney Nicholas D. Moses is in charge of the prosecution.
Sacramento Man Sentenced to 3 Years in Prison for Being a Felon in Possession of AmmunitionRead the Press Release
SACRAMENTO, Calif. — Lawrence Guerain Fleming, 38, of Sacramento, was sentenced today to three years and one month in prison for two counts of being a felon in possession of ammunition, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on Feb. 1, 2020, Fleming lost control of his motorcycle and crashed on Highway 50 in Sacramento County. A witness stopped to help Fleming, who asked the witness to conceal a gun without a serial number (sometimes called a “ghost gun”) loaded with eight rounds of ammunition behind a guardrail on the freeway. When officers arrived, the witness told them about the firearm. A warrant was issued for Fleming’s arrest, and on March 17, 2021, Fleming was arrested. At the time of his arrest, Fleming possessed a ghost gun that was loaded with a high-capacity magazine containing 14 rounds.
Fleming cannot lawfully possess a firearm or ammunition because he has a prior federal felony conviction for assaulting a U.S. Postal Service mail carrier with a firearm.
This case was the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the California Highway Patrol, the Fairfield Police Department, the Sacramento County District Attorney’s Office, the Solano County District Attorney’s Office, and the FBI’s Solano County Violent Crimes Task Force. Assistant U.S. Attorneys Alstyn Bennett and Adrian T. Kinsella prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the U.S. Department of Justice launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Rochester Man Sentenced to 6.5 Years in Prison for Arson of Multiple Buildings in St. PaulRead the Press Release
MINNEAPOLIS – A Rochester man who fled to Mexico to evade apprehension, and was later located and returned by Mexican authorities, was sentenced to 78 months in prison followed by three years of supervised release and ordered to pay $39,028 in restitution for the arson of two retail stores and a school during the summer of 2020, announced United States Attorney Andrew M. Luger.
According to court documents, on May 28, 2020, Jose Angel Felan, Jr., 36, set fire to the Goodwill retail store, the Gordon Parks High School, and the 7 Mile Sportswear store, all of which were located on University Avenue in St. Paul. Following the arsons, Felan and his wife and co-defendant Mena Dhaya Yousif, 23, fled the state. Felan and Yousif traveled by car from Rochester, Minnesota, to Texas, where Felan had family. Ultimately, Felan and Yousif fled the United States and escaped to Mexico. On February 15, 2021, following an anonymous tip, Felan and Yousif were located and detained by Mexican immigration authorities and returned to the United States.
Felan was sentenced today in U.S. District Court before Senior Judge David S. Doty. On February 24, 2022, he pleaded guilty to one count of arson.
This case was the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the FBI, the St. Paul Police Department, the Rochester Police Department, the St. Paul Fire Department, and the Minnesota State Fire Marshal Division. The fugitive apprehension efforts were led by the U.S. Marshals Service.
Assistant U.S. Attorneys Melinda A. Williams and Emily A. Polachek prosecuted the case.
Roanoke Man to Serve 12 Years for Using Gun in Fatal Drug CrimeRead the Press Release
ROANOKE, Va. – A Roanoke man, who had been acquitted in state court of a May 2019 murder in the City of Roanoke after claiming self-defense, was sentenced yesterday to 12 years in prison on a federal gun charge.
Demarcus Shaiquan Glenn, 23, pled guilty in July 2022 to one count of possessing, brandishing, and discharging a firearm in furtherance of a drug trafficking crime.
According to court documents, a 16-year-old male contacted Glenn through a friend on May 31, 2019, in order to purchase two ounces of marijuana. Glenn agreed to sell the teenager the marijuana for $300 and was to meet him at a Denniston Avenue residence to conduct the transaction. In the course of that transaction, Glenn produced a firearm and shot and killed the teenager.
Glenn was charged in state court for the shooting but was later acquitted, claiming self-defense.
During his state jury trial, Glenn testified in his own defense. According to Glenn, he carried firearms for protection because he sold drugs and it can be dangerous, and when he arrived at the teenager’s residence, Glenn was carrying a loaded firearm in his right pocket. Glenn admitted under oath to shooting the teenager in the course of the drug deal.
Federal law prohibits convicted drug dealers from possessing, brandishing, and discharging a firearm in furtherance of a drug trafficking crime.
United States Attorney Christopher R. Kavanaugh, Special Agent in Charge Stanley M. Meador of the FBI Richmond Division, and Samuel Roman, Chief of Police for the City of Roanoke, made the announcement today.
The Federal Bureau of Investigation and the City of Roanoke Police Department investigated the case.
Assistant U.S. Attorneys Coleman Adams and Kristin B. Johnson 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.
Rhode Island Man Pleads Guilty to Cyberstalking Maine WomanRead the Press Release
PORTLAND, Maine: A Rhode Island man pleaded guilty yesterday in federal court to cyberstalking, U.S. Attorney Darcie N. McElwee announced.
According to court records, between March 2019 and September 2019, Larry Spencer, 63, of Providence, Rhode Island and formerly of Maryland, cyberstalked his former spouse. The victim ended their brief marriage in 2016 and filed for a restraining order in Maryland. Despite the restraining order and the victim relocating, Spencer continued to harass and intimidate the victim on social media and by email. The harassment and threats continued after the victim moved to Maine in 2018 and obtained a protection from abuse order in March 2019. The protection order included explicit language that the “Defendant shall not post any direct or indirect threats about or concerning the plaintiff on social media/online.”
Spencer faces up to five years imprisonment and a $250,000 fine, followed by up to three years of supervised release. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI investigated the case.
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Registered Sex Offender Pleads Guilty to Possession of Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney Trini E. Ross announced today that John Fadden, 49, of Savona, NY, pleaded guilty before U.S. District Judge Charles J. Siragusa to possession of child pornography by an individual who has a prior conviction involving the sexual abuse of a child. The charge carries a mandatory minimum penalty of 10 years in prison and a maximum of 20 years in prison.
Assistant U.S. Attorney Meghan K. McGuire, who is handling the case, stated that in March 2021, The National Center for Missing and Exploited Children received two cybertip reports from Yahoo! Inc. that in February and March, 2021, user john_fadden@yahoo.com uploaded approximately 185 image files of suspected child pornography. In October 2021, investigators executed a search warrant at Fadden’s residence and seized nine electronic devices and storage media. A forensic analysis recovered approximately 278 images on those devices.
Fadden is a Level 3 registered sex offender. He was convicted in 1991, 1992, and 2001 of Sexual Abuse 1st: Sexual Contact with Individual Less Than 11 Years Old. In 2013, Fadden was convicted of Sex Offender Fail to Report Change of Address/Status In 10 Days.
The plea is a result of an investigation by Homeland Security Investigations, under the direction of Special Agent-in-Charge Matthew Scarpino, and the New York State Police, under the direction of Major Eugene Staniszewski.
Sentencing is scheduled for January 19, 2023, at 9:30 a.m. before Judge Siragusa.
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Reading Man Sentenced to 100 Months’ Imprisonment for Methamphetamine TraffickingRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that on October 17, 2022, William F. Showers, age 37, of Reading, Pennsylvania, was sentenced by United States District Court Judge Malachy E. Mannion to 100 months of imprisonment and a 5-year term of supervised release, for conspiracy to possess with intent to distribute over 50 grams of methamphetamine.
According to United States Attorney Gerard M. Karam, from July through December 2021, Showers conspired with others to distribute over 200 grams of a substance containing methamphetamine, including over 50 grams of actual or pure methamphetamine. During the course of the investigation, an undercover agent purchased methamphetamine directly from the defendant at locations in Berks and Schuylkill Counties.
This matter was investigated by the Federal Bureau of Investigation (FBI) – Philadelphia Division and the Pennsylvania State Police (PSP). Assistant United States Attorney Jeffery St John prosecuted the case.
This case is also part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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Press release by U.S. Attorney Ryan K. Buchanan relating to the November 2022 General ElectionRead the Press Release
ATLANTA – U.S. Attorney Ryan K. Buchanan announced that Assistant U.S. Attorney (AUSA) Brent Gray will lead the efforts of his Office in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 8, 2022, general election. AUSA Gray has been appointed to serve as the District Election Officer (DEO) for the Northern District of Georgia, and in that capacity is responsible for overseeing the district’s handling of election day complaints of voting rights concerns, threats of violence to election officials or staff, and election fraud, in consultation with Justice Department Headquarters in Washington.
“Every citizen must be able to vote without interference or discrimination and to have that vote counted in a fair and free election,” said U.S. Attorney Ryan K. Buchanan. “Similarly, election officials and staff must be able to serve without being subject to unlawful threats of violence. The Department of Justice will always work tirelessly to protect the integrity of the election process.”
The Department of Justice has an important role in deterring and combatting discrimination and intimidation at the polls, threats of violence directed at election officials and poll workers, and election fraud. The Department will address these violations wherever they occur. The Department’s longstanding Election Day Program furthers these goals and also seeks to ensure public confidence in the electoral process by providing local points of contact within the Department for the public to report possible federal election law violations.
U.S. Attorney Buchanan added, “Ensuring free and fair elections depends in large part on the assistance of the American electorate. It is important that those who have specific information about voting rights concerns or election fraud make that information available to the Department of Justice.”
Federal law protects against such crimes as threatening violence against election officials or staff, intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters, and provides that they can vote free from interference, including intimidation, and other acts designed to prevent or discourage people from voting or voting for the candidate of their choice. The Voting Rights Act protects the right of voters to mark their own ballot or to be assisted by a person of their choice (where voters need assistance because of disability or inability to read or write in English).
"The franchise is the cornerstone of American democracy,” said U.S. Attorney Buchanan. “We all must ensure that those who are entitled to the franchise can exercise it if they choose, and that those who seek to corrupt it are brought to justice.”
In order to respond to complaints of voting rights concerns and election fraud during the upcoming election, and to ensure that such complaints are directed to the appropriate authorities, AUSA/DEO Gray will be on duty in this District while the polls are open. He can be reached by the public at the following telephone numbers: (404) 581-6001.
In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day. The local FBI field office can be reached by the public at 770-216-3000.
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division in Washington, DC by phone at 800-253-3931 or by complaint form at https://civilrights.justice.gov/.
Please note, however, in the case of a crime of violence or intimidation, please call 911 immediately and before contacting federal authorities. State and local police have primary jurisdiction over polling places, and almost always have faster reaction capacity in an emergency.
For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Planner of Kidnapping and Home Invasion Robbery Convicted After TrialRead the Press Release
MIAMI – A South Florida man recently was convicted in a Miami federal district court for conspiracy to commit Hobbs Act robbery as well as aiding and abetting the commission of said robbery.
Thomas Munne, 44, a marijuana dealer himself, had the idea to rob a rival marijuana dealer thought to be in possession of a large amount of money. Munne contacted a co-conspirator in California to carry out the robbery. He promised to pay for the co-conspirator’s rental car, hotel, and all other expenses while in Miami.
On the afternoon of August 4, 2020, the victim was driving his truck toward I-75 when he was pulled over by a gray sedan with flashing red and blue visor lights. Believing this was a legitimate traffic stop, he pulled over only to find two men in masks and imitation police clothing approaching his truck. One of the men was armed.
The co-conspirator, and another person he’d enlisted for the robbery, pulled the victim from his truck, handcuffed, and assaulted him. The co-conspirators then zip tied his legs and tossed him in the backseat of his own truck. The suspects then ditched the sedan in a remote location and drove to the victim’s house. Once there, the suspects entered the victim’s residence, forcefully restrained his mother, and stole a safe from the victim’s bedroom.
The suspects returned to the remote location where the sedan was stashed and threatened to kill the victim if he didn’t provide the safe combination. Fearing for his life, he gave up the information and the suspects removed more than $200,000 from his marijuana dealings and fled the scene in the gray sedan.
The next day, law enforcement discovered a GPS tracker that had been attached to the victim’s truck. Law enforcement traced the purchase of the tracker to a store in Miami that also sold imitation police clothing. Video surveillance from the store showed the co-conspirator arrive in a gray sedan and purchase the tracker. Law enforcement later determined that the sedan was rented at Miami airport.
Rental records for the vehicle reflected that it was rented for the week preceding the kidnapping/home invasion and was paid for by Munne. Additionally, location data from the GPS tracker showed that after its purchase, it was brought to a hotel in Miami Lakes. Reservation records from the hotel showed that the defendant had paid for a room for the same time period as the rental car.
Further investigation revealed that the defendant also told the co-conspirator what vehicle the victim drove and where he lived. As further proof of Munne’s involvement, law enforcement found that he paid more than $130,000 for a boat within weeks of the robbery and had mailed some of the robbery proceeds to his co-conspirator in California.
Munne’s primary co-conspirator was sentenced to 214 months for carjacking and brandishing a firearm to advance a crime of violence. Investigation into the second conspirator is ongoing. Munne will be sentenced Jan. 24, 2023.
Juan Antonio Gonzalez, U.S. Attorney for the Southern District of Florida, Acting Special Agent in Charge Robert M. Dewitt, FBI, Miami Field Office, and Alfredo “Freddy” Ramirez, Director, Miami-Dade Police Department made the announcement.
FBI Miami and Miami-Dade Police Department investigated the case. The prosecution was handled by Assistant U.S. Attorneys Shane Butland and Eduardo Gardea.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 22-cr-20182.
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Pittsburgh Felon Charged with Violating Federal Drug and Gun LawsRead the Press Release
PITTSBURGH, PA - A resident of Pittsburgh PA, has been indicted by a federal grand jury in Pittsburgh on charges of violating various federal firearms and drug laws, United States Attorney Cindy K. Chung announced today.
The seven-count Superseding Indictment named Torrell Jones, 34, of the City’s Lincoln-Lemington-Belmar neighborhood, as the sole defendant.
According to the Superseding Indictment, Jones is alleged to have possessed with the intent to distribute 500 grams or more of cocaine, 40 grams or more of fentanyl, and a quantity of a mixture of fentanyl and heroin on or about Aug. 15, 2019, and possession with the intent to distribute 40 grams or more of fentanyl on or about Jan. 31, 2020. Jones is also alleged to have possessed a firearm in furtherance of a drug trafficking crime on or about Aug. 15, 2019, and on or about Jan. 31, 2020. In addition, Jones is alleged to have possessed a firearm and ammunition as a convicted felon on or about Aug. 15, 2019, on or about Oct. 7, 2019, and on or about Jan. 31, 2020.
The law provides for a maximum total sentence of life in prison, a fine of $11,125,000 or both. 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 Douglas C. Maloney is prosecuting this case on behalf of the government.
The Drug Enforcement Administration conducted the investigation leading to the Superseding Indictment in this case.
A superseding indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pearl City Man Arrested for Methamphetamine and Fentanyl Trafficking and Firearm OffensesRead the Press Release
HONOLULU – Bronson Kepa‘a, 38, of Pearl City, made his initial appearance today in United States District Court on charges filed in a criminal complaint that he possessed more than 50 grams of methamphetamine and more than 40 grams of fentanyl with intent to distribute them and carried a semi-automatic pistol during and in relation to that possession. The appearance followed his arrest yesterday at his Pearl City residence. Magistrate Judge Rom Trader ordered him detained pending a detention hearing on October 21, 2022.
According to the affidavit in support of the criminal complaint, the Drug Enforcement Administration (DEA) and the Honolulu Police Department (HPD) followed up on a fentanyl overdose resulting in death on October 7, 2022. The investigation led to an individual who reported obtaining fentanyl from a second individual and giving it to the overdose victim on October 7. The second individual, who was arrested after agreeing to provide more fentanyl to the first individual, identified a third individual as the person who provided the fentanyl. The third individual was arrested after agreeing to sell more fentanyl to the second individual.
The affidavit further recounted that the third individual identified Kepa‘a, who was known to the third individual as “Bronzy,” as a person who provided both fentanyl and methamphetamine to the third individual. On October 17, law enforcement officers executed a federal search warrant on Kepa‘a’s Pearl City residence and recovered approximately 61 grams of suspected fentanyl and one kilogram suspected crystal methamphetamine as well as a loaded firearm, semiautomatic rifles, and boxes of ammunition.
“Increased trafficking of fentanyl, an extremely lethal synthetic opioid, promises to cause significant harm in our state,” said Clare E. Connors, United States Attorney for the District of Hawaii. “As demonstrated by this case, a very small dose – one pill – has the potential to kill, and while federal and local law enforcement will continue
their joint efforts to investigate illegal drug trafficking, including trafficking resulting in overdose deaths, everyone should be aware of the terrible dangers of fentanyl.”
“Dangerous and highly addictive synthetic drugs like methamphetamine and fentanyl are wreaking havoc on our communities and killing people at increasing rates,” said DEA Hawaii District Office Assistant Special Agent in Charge Victor Vazquez. “This case illustrates the collaborative work, alongside our local law enforcement partners, to target and hold drug traffickers accountable who drive addiction and threaten public safety.”
“The collaborative efforts of the Honolulu Police Department’s Narcotics/Vice Division, Drug Enforcement Administration, and the United States Attorney’s Office resulted in a week-long operation that culminated in the arrest of this defendant and others who were involved in the distribution of fentanyl,” said Rade Vanic, Acting Chief of HPD. “The tragic death of a young Honolulu resident associated with at least one member of this group resulted from an overdose of fentanyl. This overdose death and others afflicting our community highlights a pernicious problem, and this investigation demonstrates what can be accomplished with a coordinated law enforcement effort. Those profiting from the distribution of fentanyl and the suffering of our community will be held accountable for their actions, and we remain committed to keeping our municipality safe from those who peddle poison to our ohana and friends.”
If indicted and convicted on those charges, Kepa‘a faces a maximum term of life imprisonment, with a mandatory minimum term of ten years, on the drug offenses, and for the firearm offense, a mandatory term of five years imprisonment consecutive to any sentence imposed on the drug charges.
A criminal complaint is merely an allegation, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This investigation was conducted by the Drug Enforcement Administration and the Honolulu Police Department. Assistant U.S. Attorney Michael Nammar is handling the prosecution.
Pasco Man Pleads Guilty to Trafficking Fentanyl and Possessing Five Firearms in Furtherance of Drug Trafficking; Agrees to Forfeit House and over $400,000Read the Press Release
Tampa, FL – United States Attorney Roger B. Handberg announces that Edwin Hill (51, Holiday), a/k/a “Z,” has pleaded guilty to conspiracy to distribute 400 grams or more of fentanyl and 1 kilogram or more of heroin, four counts of distribution of fentanyl, possession with intent to distribute 400 grams or more of fentanyl and 500 grams or more of cocaine, and possession of firearms in furtherance of drug trafficking. Hill faces a mandatory minimum penalty of 20 years, and up to life, in federal prison, and is subject to enhanced minimum penalties due to a prior conviction for attempted first-degree murder. He has agreed to forfeit his interest in a house in Pasco County that was used in the offense, approximately $400,536 in drug proceeds, three handguns, and assorted ammunition. Hill was arrested on September 27, 2018, where he has remained in custody. The charges and penalties for each offense are as follows:
Count
Offense
Penalty
One
Conspiracy to Distribute and Possess with Intent to Distribute 1 Kilogram or More of Heroin and 400 Grams or More of Fentanyl
Mandatory minimum of 15 years’ imprisonment up to a maximum term of life imprisonment
Two
Distribution of Fentanyl
Maximum of 20 years’ imprisonment
Three
Distribution of Fentanyl
Maximum of 20 years’ imprisonment
Four
Distribution of Fentanyl
Maximum of 20 years’ imprisonment
Five
Distribution of Fentanyl
Maximum of 20 years’ imprisonment
Seven
Possession of 400 Grams or More of Fentanyl and 500 Grams or More of Cocaine with Intent to Distribute
Mandatory minimum of 15 years’ imprisonment up to a maximum term of life imprisonment
Eight
Possession of Firearms in Furtherance of Drug Trafficking
Mandatory minimum of 5 years’ imprisonment to be served consecutively to the drug counts
According to court documents, Hill trafficked fentanyl in in Pasco County. He used a residence in New Port Richey for distributing the drugs and his personal residence in Holiday for storing the controlled substances, cash, and firearms. After four controlled purchases of fentanyl from Hill, federal authorities obtained search warrants for both residences and executed them on September 27, 2018. During the execution of the search warrants of the two houses, agents recovered more than a half-kilogram of fentanyl, almost a kilogram of cocaine, five firearms – including two that had been reported stolen – and more than $370,000 in cash. During an interview with law enforcement, Hill admitted to his involvement in drug trafficking, ownership of the seized guns, and that the money was the result of drug proceeds.
After agreeing to cooperate with law enforcement, Hill secretly, and without informing law enforcement, sent three text messages to coconspirator Nelson White letting him know that Hill had been arrested:
Text 1: D e a
Text 2: Dont come
Text 3: Stop answering the feds got me
Law enforcement officers observed White leave his residence after a bag was loaded into his car. A deputy from the Pasco Sheriff’s Office pulled over White’s car for a traffic violation and found approximately an additional pound of fentanyl, almost a half-kilogram of cocaine, more than $29,000 in cash, four additional firearms, and assorted ammunition.
White was convicted of conspiracy and sentenced on December 1, 2020, to over 21 years in federal prison.
This case was investigated by the Drug Enforcement Administration, the Pasco Sheriff’s Office, the Hardee County Sheriff’s Office, the Plant City Police Department, and the Winter Haven Police Department. It is being prosecuted by Assistant United States Attorney Dan Baeza. Assistant United States Attorney James Muench is handling the forfeiture.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Owner of Danbury Grocery Store Sentenced for Tax OffenseRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that LIZBEL SANCHEZ, also known as Lizbel Diaz, 47, of Brookfield, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to two years of probation and ordered to pay a $400,000 fine for a federal tax offense.
According to court documents and statements made in court, Sanchez is a minority owner of Danbury Food Corp. (“DFC”), which operates a C-Town grocery store in Danbury. Sanchez was responsible for DFC’s accounting and financial records, and for collecting and paying over certain federal taxes from DFC’s employees, namely federal income taxes and Federal Insurance Contribution Act (“FICA”) taxes, which include Medicare and social security taxes. She also was also responsible for ensuring that DFC, as an employer, paid its own share of FICA and its Federal Unemployment Tax (“FUTA”), which were based on its employees’ taxable wages.
An investigation revealed that, Sanchez and DFC paid several employees in cash and failed to collect, account for and pay over the federal income taxes and FICA taxes associated with the cash wages. Sanchez also failed to account for and pay over DFC’s share of FICA taxes and its FUTA obligation based on the taxable wages of those employees that DFC paid in cash. This conduct caused a tax loss of $408,121.85 to the IRS for the 2016 tax year.
On April 14, 2022, Sanchez pleaded guilty to one count of willful failure to collect or pay over taxes.
Sanchez has paid $408,121.85 in restitution to the IRS. She also has acknowledged similar conduct for DFC in 2017 and 2018, and for other businesses in which Sanchez had an interest in 2016, 2017 and 2018. Additional tax losses will be addressed civilly by the IRS.
This investigation was conducted by the Internal Revenue Service – Criminal Investigation Division and the case was prosecuted by Assistant U.S. Attorney David T. Huang.
Oklahoma City Home Health Company and Two Former Corporate Officers Agree to Pay $22.9 Million to Settle Federal False Claims Act and Kickback Allegations Arising from Improper Payments to Referring PhysiciansRead the Press Release
OKLAHOMA CITY – CHC Holdings, LLC d/b/a Carter Healthcare, an Oklahoma limited liability company that provides home healthcare through subsidiaries in multiple states, including Texas and Oklahoma, as well as Stanley Carter and Brad Carter (collectively Defendants) agreed to pay $22,948,004 to resolve allegations that Carter Healthcare wrongfully paid physicians to induce referrals of home health patients under the guise of medical directorships, resulting in the submission of false claims to the Medicare and TRICARE programs, announced United States Attorney Robert J. Troester.
The Anti-Kickback Statute prohibits offering, paying, soliciting, or receiving remuneration to induce referrals of items or services covered by Medicare, Medicaid, and other federally funded programs. The Physician Self-Referral Law, commonly known as the Stark Law, prohibits a hospital from billing Medicare for certain services referred by physicians with whom the hospital has an improper financial arrangement, including the payment of compensation that exceeds the fair market value of the services actually provided by the physician. Both the Anti-Kickback Statute and the Stark Law are intended to ensure that physicians’ medical judgments are not compromised by improper financial incentives and instead are based on the best interests of their patients. Claims submitted under the Anti-Kickback Statute and the Stark Law violate the False Claims Act.
"Offering illegal financial incentives to physicians in return for patient referrals undermines the integrity of our health care system," said U.S. Attorney Robert J. Troester. "Patients deserve care based on good medicine and informed choice that is free from the corrupting influence of money and other motivating enticements. We are committed to pursuing entities and individuals that offer kickbacks and the doctors that solicit or accept them."
"The taxpayer dollars that fund Medicare and Medicaid are meant to support the delivery of health care services most suitable for beneficiaries. The payment of kickbacks to medical providers to induce referrals for home health services can improperly divert those dollars and undermine the quality of care being provided to patients," said Acting Special Agent in Charge Mike Stapleton with the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). "This outcome is the result of cooperation amongst law enforcement partners focused on upholding the integrity of federal health care programs."
"Government-sponsored programs like Medicare and TRICARE are intended to support the healthcare needs of deserving Americans," said FBI Oklahoma City Special Agent in Charge Edward J. Gray. "Today’s announcement demonstrates the FBI’s commitment to holding individuals and companies accountable for illegally profiting off of federally funded programs. We are determined to safeguard the integrity of our nation’s healthcare systems."
The settlement resolves allegations that between 2013 and 2020, Carter Healthcare paid remuneration to its home health medical directors in Oklahoma and Texas for the purpose of inducing referrals of Medicare and TRICARE home health patients. The Defendants’ alleged conduct resulted in the submission of claims for services provided to these illegally referred patients, in violation of the False Claims Act. Stanley Carter and Brad Carter, Carter Healthcare’s previous CEO and COO respectively, also agreed to be excluded from participating in Medicare, Medicaid, and all other federal healthcare programs for a period of five years.
Contemporaneous with the civil settlement, CHC Holdings, LLC entered into a five-year Corporate Integrity Agreement (CIA) with the U.S. Department of Health and Human Services—Office of Inspector General (HHS-OIG). The CIA requires, among other things, an Independent Review Organization to review arrangements entered into by or on behalf of Carter Healthcare entities. The CIA also increases individual accountability by requiring compliance-related certifications from key executives.
The allegations resolved by the settlement were brought in a lawsuit filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private parties to sue on behalf of the United States for false claims and to receive a share of any recovery. The whistleblowers also alleged other claims under the False Claims Act and Oklahoma Medicaid False Claims Act. The qui tam case is captioned United States ex rel. Duffield et al. v. CHC Holdings, LLC, et al., No. CIV-17-826-HE (W.D. Okla.). The whistleblowers will share in the settlement amount.
Assistant United States Attorneys Scott Maule, Ron Gallegos, and Amanda Johnson prosecuted the case on behalf of the United States. Investigative assistance was provided by HHS-OIG, HHS-OIG Office of Audit Services, the Department of Defense’s Defense Criminal Investigative Service, and the Federal Bureau of Investigation.
In reaching this settlement, Defendants did not admit liability, and the government did not make any concessions about the legitimacy of the claims. The settlement allows the parties to avoid the delay, expense, inconvenience, and uncertainty involved in litigating the case.
Separately, on the same date, the Defendants also settled a qui tam False Claims Act civil suit filed in the United States District Court for the Southern District of Florida for $7,175,000 to resolve allegations that, from 2014 through 2016, Defendants submitted claims for therapy services without regard to medical necessity and overbilled therapy services by upcoding patients’ diagnoses. The Florida qui tam case is captioned United States ex rel. Mahaffey et al. v. Carter Healthcare, et al., Case No. 9:16-cv-80459-MARRA (S.D. Fla.).
The total amount of the two settlement agreements, with interest, exceeds $30 million.
Ohio man admits to drug chargesRead the Press Release
WHEELING, WEST VIRGINIA – Dallas Michael Acoff, of Euclid, Ohio, has admitted to drug charges, United States Attorney William Ihlenfeld announced.
Acoff, also known as “Dal,” 33, pleaded guilty today to one count of “Distribution of Cocaine Base within 1000 Feet of a Protected Location,” one count of “Possession with Intent to Distribute Cocaine Base,” one count of “Possession with Intent to Distribute Cocaine,” one count of “Possession with Intent to Distribute Methamphetamine,” and one count of “Possession with Intent to Distribute Fentanyl.” Acoff admitted to selling cocaine, also known as “coke,” cocaine base, also known as “crack,” methamphetamine, and fentanyl in August 2021 and February 2022 in Ohio County.
Acoff faces at least one year and up to 40 years of incarceration and a fine of up to $2,000,000 for the distribution near a protected location charge and faces up to 20 years of incarceration and a fine of up to $1,000,000 each of the remaining charges. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Shawn M. Adkins is prosecuting the case on behalf of the government. The Ohio Valley Drug Task Force, a HIDTA-funded initiative, and the Wheeling Police Department investigated.
U.S. Magistrate Judge James P. Mazzone presided.
Oak Ridge Man Sentenced to Serve 112 Months in Federal Prison for Unlawfully Possessing FirearmRead the Press Release
CAPE GIRARDEAU - The United States Attorney's Office announced that Joseph M. Lopez, age 40, of Oak Ridge, Missouri, was sentenced to serve 112 months in federal prison for the offense of Felon in Possession of a Firearm. Lopez appeared for his sentencing hearing Monday before United States District Judge Stephen R. Clark at the federal courthouse in Cape Girardeau, Missouri.
According to court documents, law enforcement officials executed a search warrant at Lopez’s residence in Oak Ridge last November. A 9mm pistol was discovered inside a safe in Lopez’s bedroom. Officers also discovered methamphetamine and various drug paraphernalia items during the search. Lopez is prohibited from possessing firearms under federal law due to his status as a convicted felon. At his guilty plea hearing earlier this year, Lopez admitted that he possessed the pistol. After serving his 112-month sentence, Lopez will be placed on supervised release for a period of three years.
This case was investigated by the Missouri State Highway Patrol and the Cape Girardeau County Sheriff’s Office. Assistant United States Attorney Jack Koester handled the prosecution for the government.
Norton Shores Man Sentenced to 30 Months for Selling Counterfeit Sports Cards and PacksRead the Press Release
LANSING, MICHIGAN — U.S. Attorney Mark Totten today announced that Chief U.S. District Judge Hala Y. Jarbou sentenced Bryan Kennert, 57, of Norton Shores, to 30 months in prison after selling $43,354.94 of antique baseball card packs that he represented as original and unopened. The packs were opened, had the valuable cards removed, and were resealed to look like new, unopened packs. Kennert has engaged in schemes to sell fake sports cards and packs for at least 30 years. Federal agents also found fake sports cards at his home that would have been worth $7.3 million if authentic.
“Kennert exploited unsuspecting victims for 30 years,” said U.S. Attorney Mark Totten. “Consumers should have confidence that the products they buy are the real thing. My office will continue its hard work to root out consumer fraud.”
Between April and October 2019, a couple purchased $43,354.94 of baseball card packs from Kennert that they later learned were tampered with. The couple met Kennert after visiting an antique store in Muskegon, Michigan, where they saw packs of baseball cards that were listed for sale as original and unopened. The couple researched the packs, determined the price was a bargain, and met with Kennert eight times from April to October 2019 to purchase packs. When the couple went to have the packs authenticated and checked for condition, they were told the packs were resealed and nearly worthless.
After learning of the fraud, federal agents executed a search warrant at Kennert’s home. There, they found fake cards that would have been worth $7.3 million, alongside supplies to make fake card packs. Agents interviewed Kennert, who admitted making around $100,000 a year selling fake cards and packs.
“I commend the hard work of our HSI Grand Rapids special agents in pursuing this case and bringing this fraudster to justice,” said HSI Detroit Special Agent in Charge Angie Salazar. “We will continue to dismantle these schemes, wherever we find them, to protect hard-working Americans. We encourage all members of our community to remain vigilant and scrutinize deals that seem too good to be true.”
This case was investigated by the U.S. Department of Homeland Security, Homeland Security Investigations. It was prosecuted by Assistant U.S. Attorney Davin M. Reust.
###
New Jersey man sentenced for role in drug trafficking ringRead the Press Release
MARTINSBURG, WEST VIRGINIA – Sterling C. Davis, of Camden, New Jersey, was sentenced today to 94 months of incarceration for his role in a drug conspiracy that spanned several states, United States Attorney William Ihlenfeld announced.
After a three-day trial in October 2021, Davis, 44, was found guilty of one count of “Conspiracy to Possess with Intent to Distribute and to Distribute 100 Grams or More of Heroin and 40 Grams or More of Fentanyl” and two counts of “Unlawful Use of Communication Facility.” Davis worked with others to distribute 100 grams or more of heroin and 40 grams or more of fentanyl from June 2019 to November 2019 in Berkeley and Jefferson Counties and elsewhere.
At trial, the evidence revealed that co-conspirators in West Virginia would wire money for drug payments to Davis in Camden, New Jersey. The evidence also revealed multiple trips by West Virginia co-conspirators to Camden, New Jersey to obtain large amounts of heroin and fentanyl that were distributed and intended to be redistributed in West Virginia.
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.
Assistant U.S. Attorney Lara Omps-Botteicher and Special Assistant U.S. Attorney C. Lydia Lehman, also with the Berkeley County Prosecuting Attorney’s Office, prosecuted the case on behalf of the government. The FBI; Homeland Security Investigations; the Bureau of Alcohol, Tobacco, Firearms & Explosives; and the Eastern Panhandle Drug Task Force, a HIDTA-funded initiative, investigated. The Berkeley County Prosecuting Attorney’s Office assisted.
U.S. District Judge Gina M. Groh presided.
Find the related press release here: https://www.justice.gov/usao-ndwv/pr/25-charged-six-state-drug-conspiracy-involving-heroin-fentanyl-cocaine
New Jersey Man Pleads Guilty After Suitcase with Three Kilos of Cocaine is Found on Bus Traveling Through KCRead the Press Release
KANSAS CITY, Mo. – A Jersey City, New Jersey, man whose suitcase, which contained more than three kilograms of cocaine, was found aboard a bus traveling through Kansas City, Mo., pleaded guilty in federal court today to his role in a conspiracy to distribute cocaine.
Jose A. Cordero, 31, pleaded guilty before U.S. District Judge Greg Kays to one count of conspiracy to distribute a controlled substance.
Officers of the Missouri Western Interdictions and Narcotics Task Force (MoWIN) were conducting interdiction activities at a Kansas City, Mo., bus station on Oct. 22, 2018. As passengers unboarded from a bus that originated in Los Angeles, California, officers used a drug-sniffing police dog to conduct an open-air check of the luggage on the bottom compartment of the bus. The dog alerted to a black Samsonite suitcase with a Newark, N.J., destination tag. However, none of the passengers on the bus claimed ownership of the suitcase. Cordero was not a passenger on the bus.
Detectives considered the suitcase abandoned and searched its contents to identify the owner. Inside the suitcase, detectives found three sealed mailing envelopes that contained a total of 6.63 pounds (3,009.73 grams) of cocaine.
Detectives also found a United Airlines bar code label on the suitcase that identified the owner of the suitcase as “Jo Cordero Jr.” Cordero had flown on United Airlines from Newark to Los Angeles on Oct. 8, 2018. Cordero departed Los Angeles to return to Newark on Oct. 19 and the cocaine was found on the bus in Kansas City, which had traveled for 36 hours, on Oct. 22.
During a forensic examination of the suitcase and its contents, investigators identified Cordero’s DNA from the waistband of a pair of underwear and his fingerprints from one of the bundles of cocaine.
During the investigation, another individual who was on the bus, Sergio Gonzalez-Bedolla, 24, of Chowchilla, Calif., was found in possession of 2.8 kilograms of heroin in his backpack. Gonzalez-Bedolla pleaded guilty in a separate and unrelated case and was sentenced to six years in federal prison without parole.
Under federal statutes, Cordero is subject to a mandatory minimum sentence of five years in federal prison without parole, up to a sentence of 40 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Bradley K. Kavanaugh. It was investigated by the Drug Enforcement Administration, the MoWIN Task Force, and the Kansas City, Mo., Police Department.
Nevada Woman Charged with $7 Million Advance Fee Ponzi Scheme and Obstruction of JusticeRead the Press Release
NEWARK, N.J. – A Nevada woman was indicted today on wire fraud, money laundering, and obstruction of justice charges related to a $7 million advance fee Ponzi scheme and obstructing the government’s investigation, U.S. Attorney Philip R. Sellinger announced.
Anna Kline, formerly Jordana Weber, 33, of Sparks, Nevada, is charged by indictment with two counts of wire fraud, 11 counts of money laundering, four counts of transacting in criminal proceeds, and two counts of obstructing justice. Kline is scheduled to appear before a U.S. District Judge on a date to be scheduled.
According to documents filed in this case and statements made in court:
From April 2017 to July 2019, Kline owned and operated several shell companies that falsely purported to offer lending services to customers, typically small business owners seeking high value loans, often in excess of $100 million. As part of the scheme, Kline required the victim borrowers to pay up to 5 percent of a potential total loan amount as a “fee” prior to the loan being funded.
After the victim’s “fee” was paid, Kline purported to conduct due diligence on the loans. During this period, Kline frequently gave victims bogus explanations for why the funding of their loan was delayed. It was also common for the victims to be provided with falsified or fraudulent documents, including bank statements that purported to show that the shell companies had sufficient money to fund the loan.
Kline and her significant other, Jason Torres, used the “fees” paid by the victims for their daily living expenses and other purchases. The “fees” were also used to pay back previous victims of the fraud, in the manner of a traditional Ponzi scheme. Torres is charged by complaint, and those charges remain pending.
Six victims have been identified with approximately $7 million being transferred to bank accounts controlled by Kline.
Kline was arrested on charges related to the fraudulent advance fee scheme in July 2019. While released on bail on those charges, Kline, through her then-attorney, provided the government with a PDF document that purported to be a portion of a Cellebrite report showing iMessages between Kline and Torres that appeared to show Torres making threats toward Kline and insinuating that Torres was primarily responsible for the fraudulent advance fee scheme.
A forensic review of the PDF document Kline provided to the government revealed that it had been falsified. Further investigation revealed that Kline presented the fake Cellebrite report to a family court in California as part of a custody dispute between Kline and Torres. During that hearing, Kline represented that the report had been generated by a forensic examiner named “Drew Andrews.” Investigation revealed that “Andrews” did not exist, but was actually an alter-ego of Kline’s that Kline used to deceive the California Family Court, her then-attorney, and a forensic expert into believing that the fraudulent Cellebrite Report was legitimate.
In addition to the fraudulent Cellebrite report, Kline also provided the government a computer that she claimed contained an iTunes backup that included the alleged text messages from Torres. A forensic review of the computer revealed that data on the computer, including the iTunes backup, had been manipulated. Kline changed, or caused to be changed, certain time stamps on the computer to make it appear as if the iTunes backup and other files stored on the computer were created in April 2020, when the fictional “Andrews” purportedly ran the fraudulent Cellebrite Report.
The wire fraud charges carry a statutory maximum of 20 years in prison and a fine of up to $250,000. The money laundering charges carry a statutory maximum of 20 years in prison and a fine of up to $500,000 or twice the value of the property involved, whichever is greater. The transacting in criminal proceeds charges carry a maximum of 10 years in prison and a fine of $250,000, or twice the value of the property involved in the transaction, whichever is greater. The obstruction charges carry a maximum penalty of 20 years in prison and a fine of up to $250,000.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Anthony Torntore of the U.S. Attorney’s Cybercrime Unit in Newark.
The charges and allegations in the indictment against Kline and the complaint against Torres are merely accusations, and they are presumed innocent unless and until proven guilty.
Moses Lake Man Sentenced to 204 Months in Federal Prison for Drug Trafficking and Firearm OffensesRead the Press Release
Spokane, Washington – United States Attorney, Vanessa R. Waldref, announced today that United States District Judge Thomas O. Rice sentenced Guillermo Valdez, age 34, of Moses Lake, Washington, to 204 months in federal prison after Valdez had pleaded guilty on April 20, 2022 to two counts of Possession with Intent to Distribute 500 or More Grams of Methamphetamine and two counts of Felon in Possession of a Firearm. Valdez also was sentenced to 5 years of supervised release.
According to court documents, on February 24, 2021, Valdez participated in a residential burglary in Spokane County, Washington, during which Valdez stole eleven firearms. Valdez, along with a co-defendant, trafficked the stolen firearms, one of which was used during a homicide of a child in Othello, Washington, days after the burglary on February 27, 2021. Later, on April 2, 2021, a trooper with the Washington State Patrol attempted to pull Valdez over. Valdez, while driving 90-100 miles per hour, was observed throwing a bag which contained a pistol and 822 grams of methamphetamine from the vehicle. Valdez was detained while hiding in a tree after crashing his vehicle through a fence. Further, on July 7, 2021, Valdez was arrested at his residence in Moses Lake, Washington. Valdez’s residence was searched and 604 grams of methamphetamine was recovered, some from inside his minor child’s bedroom.
United States Attorney Waldref, who is the Chief Federal Law Enforcement Officer in the Eastern District of Washington, stated, “Mr. Valdez endangered his community by distributing large quantities of illegal narcotics, trafficking in stolen firearms, leading police on a high speed chase, and keeping distribution quantities of methamphetamine in a child’s bedroom. Here, Mr. Valdez’s distribution of illegal narcotics and firearms directly led to the homicide of a child and placed another child in danger. I’m grateful for the joint efforts of federal, state, and local law enforcement, who helped bring Mr. Valdez to justice and who work tirelessly to keep our communities safe and our neighborhoods strong.”
Assistant United States Attorney Earl A. Hicks, who was one of the lead prosecutors on the case, stated after the sentencing, “I’m grateful for the law enforcement team that investigated this case. Each day, these agents and officers serve their community, and they often do so at significant personal sacrifice. I’m honored to serve alongside such dedicated public servants as we work together to address violent crime and drug distribution in Eastern Washington.”
“Mr. Valdez’s brazen conduct clearly warranted this significant sentence,” said ATF Seattle Special Agent in Charge Jonathan T. McPherson. “ATF is committed to keeping members of our communities safe from violent criminals such as Mr. Valdez.”
“We will continue to work with our partners at all levels to ensure individuals like Mr. Valdez no longer threaten the health and safety of our communities,” said Jacob D. Galvan, Acting Special Agent in Charge of the DEA Seattle Field Division.
These cases were investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, the United States Marshals Service, the Othello Police Department, the Moses Lake Police Department, the Spokane County Sheriff’s Office, the Grant County Sheriff’s Office, and the Washington State Patrol. These cases were prosecuted by Earl A. Hicks and Michael J. Ellis, Assistant United States Attorneys for the Eastern District of Washington.
More Than 4 Million Deadly Dosages of Fentanyl Seized in Michigan, Ohio During DEA Enforcement SurgeRead the Press Release
GRAND RAPIDS, Mich. – The U.S. Attorney’s Office for the Western District of Michigan and the U.S. Drug Enforcement Administration (DEA) Detroit Division today announced the results of an
enforcement operation that resulted in significant fentanyl seizures across the Midwest. Dr. Colleen Lane, Spectrum Health board-certified physician specializing in internal medicine and addiction medicine participated in the announcement as well.
As part of the nationwide One Pill Can Kill initiative in Michigan and Ohio, the DEA and its law enforcement partners seized more than 65 kilograms of fentanyl powder and 88,000 fentanyl laced pills during the period of May 23 through Sept. 8, 2022 – enough to provide 4.7 million deadly dosages.
“My office is committed to prosecuting the traffickers who are distributing this poison and the dealers who peddle it,” said Mark Totten, U.S. Attorney for the Western District of Michigan. “But let me also be clear: this is not a problem that we can prosecute our way out of. All stakeholders – law enforcement, first responders, the healthcare and rehabilitation community, and those in harm reduction must continue working together to address this problem.”
“Fentanyl in pill form is a deliberate attempt by drug cartels to make illicit drug use more appealing to Americans,” said DEA Detroit Special Agent in Charge Orville O. Greene. “Fake pills are especially concerning because the appeal they can have to an unsuspecting person. One may believe they are taking a legitimate pharmacy-grade pill pilfered from perhaps someone’s medicine cabinet or stolen from a pharmacy. Far too often that isn’t the case; many of the pills people buy on the street were haphazardly made in a clandestine lab – containing lethal dosages of fentanyl.”
Nationwide, more than 10.2 million fentanyl pills and approximately 980 pounds of fentanyl powder were seized during the same time span. The amount of fentanyl taken off the streets during this surge is equivalent to more than 36 million lethal doses. Additionally, 338 weapons were seized, including rifles, shotguns, pistols, and hand grenades
“The opioid epidemic is something that touches us all – we all have friends, family, or coworkers who have been directly affected by an opioid poisoning or death,” said Dr. Colleen Lane with Spectrum Health’s Center for Integrative Medicine. “Our Spectrum addiction medicine clinic is committed to educating our medical colleagues to better support patients and their families, providing resources to improve quality of care for vulnerable individuals, and reducing stigma around substance use disorder.”
Fentanyl remains the deadliest drug threat facing this nation. In 2021, a record number of Americans – 107,622 – died from a drug poisoning. Sixty-six percent of those deaths can be attributed to synthetic opioids such as fentanyl.
Drug traffickers have expanded their inventory to sell fentanyl in a variety of bright colors, shapes, and sizes. Rainbow fentanyl was first reported to DEA in February 2022, and it has now been seized in 21 states.
Fentanyl is a synthetic opioid that is 50 times more potent than heroin. Just two milligrams of fentanyl, or the amount that could fit on the tip of a pencil, is considered a potentially lethal dose.
As part of DEA’s ongoing efforts to educate the public and encourage parents and caregivers to talk to teens and young adults about the dangers of fake pills and illicit drugs, DEA has also created a new resource, “What Every Parent and Caregiver Needs to Know About Fake Pills.”
In September 2021, DEA launched the One Pill Can Kill enforcement effort and public awareness campaign to combat the fake pill threat and educate the public about the dangers of fentanyl pills being disguised and sold as prescription medications, despite these pills not containing any of the actual medications advertised. The only safe medications are ones prescribed by a trusted medical professional and dispensed by a licensed pharmacist. All other pills are unsafe and potentially deadly.
Additional resources for parents and the community can be found on DEA’s Fentanyl Awareness page.
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Mission Man Found Not Guilty of Sexual AbuseRead the Press Release
PIERRE - United States Attorney Alison J. Ramsdell announced that a Mission, South Dakota, man was acquitted of Sexual Abuse as a result of a federal jury trial in Pierre, South Dakota, on October 14, 2022.
Buddy Robert Poor Bear, a/k/a Bud Poor Bear, age 56, was indicted by a federal grand jury in July of 2021.
The charge related to an alleged incident that occurred on April 15, 2021, in Todd County, South Dakota.
The investigation was conducted by the Rosebud Sioux Tribe Law Enforcement Services and the U.S. Attorney's Office prosecuted the case.
Mineral County man admits to firearms chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Edward Charles Linkswiler, II, of Keyser, West Virginia, has admitted to a firearms charge, United States Attorney William Ihlenfeld announced.
Linkswiler, 43, pleaded guilty today to one count of “Unlawful Possession of Firearms.” Linkswiler, a person prohibited from having firearms, admitted to having two semi-automatic pistols in January 2021 in Mineral County.
Linkswiler faces up to 10 years of incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Lara Omps-Botteicher is prosecuting the case on behalf of the government. The Potomac Highlands Drug Task Force, a HIDTA-funded initiative, and the West Virginia State Police investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
McKees Rocks Man on State Parole Indicted for Illegal Possession of Firearm and AmmunitionRead the Press Release
PITTSBURGH, PA - A resident of McKees Rocks, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on a charge of violating federal firearms law, United States Attorney Cindy K. Chung announced today.
The one-count Indictment named Taivon Cunningham, age 31, as the sole defendant.
According to the Indictment, on or about Aug. 18, 2022, Cunningham was found to be in possession of a firearm and ammunition. Cunningham was on state parole for third degree murder at the time. Federal law prohibits possession of a firearm and ammunition by a convicted felon.
The law provides for a maximum total sentence of 15 years in prison, a fine of $250,000, 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.
Assistant United States Attorney Jerome A. Moschetta is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, Pennsylvania Office of the Attorney General, and the Allegheny County District Attorney’s Office conducted the investigation leading to the Indictment in this case. This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department 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.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Massachusetts Woman Charged with Unlawful Transportation of Individuals Who Entered the United States IllegallyRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Patricia Ruano-Murcia, 31, of Hudson, Massachusetts, has been charged by criminal complaint for the unlawful transportation of individuals who entered the United States illegally. Ruano-Murcia is scheduled to appear before United States Magistrate Judge Kevin J. Doyle today.
According to documents in the case, on October 16, 2022, just after 1:00 am, United States Border Patrol observed people walking south, just east of the Highgate Springs Port of Entry and in close proximity to the international border with Canada. Agents investigating the suspected illegal crossings of the border encountered a Toyota RAV4 in the vicinity of Exit 22 off Interstate 89. After the first sighting of the vehicle, the RAV4 departed the area. Shortly thereafter, it returned to the same approximate location. Border Patrol subsequently stopped the RAV4, and located Ruano-Murcia, who was the driver. Three people were in the rear passenger seat of the RAV4, and three more were huddled in the rear cargo area. The six passengers in the RAV4 thereafter admitted to not being citizens of the United States and lacking immigration documents authorizing them to enter and remain in the United States.
The U.S. Attorney’s Office notes that a criminal complaint is an accusation only and that the defendant is presumed innocent until and unless proven guilty. If convicted, the defendant faces up to 5 years of imprisonment on the current charge. Any sentence in the case will be advised by the Federal Sentencing Guidelines.
U.S. Attorney Nikolas P. Kerest credited the United States Border Patrol for their investigation of Ruano-Murcia.
Assistant United States Attorney Jonathan Ophardt represents the government. Ruano-Murcia is represented by the Office of the Federal Public Defender.
Man indicted for attempting to hide kilos of cocaine in shopping bagsRead the Press Release
LAREDO, Texas – A 48-year-old Mexican Citizen has been indicted on charges of conspiracy to import 5.24 kilograms of cocaine, announced U.S. Attorney Jennifer B. Lowery.
Today, a federal grand jury returned the four-count indictment against Jose Juan Rosales-Vasquez. He is expected to appear for his arraignment before U.S. Magistrate Judge Diana Song Quiroga in the near future.
According to the charges, on Oct. 1, Rosales-Vasquez allegedly attempted to enter the United States from Mexico while driving a Chevrolet Beat sedan. At that time, Rosales-Vasquez allegedly told authorities he traveled to Dallas to visit relatives and presented a valid border crossing card.
However, during an X-ray inspection of his vehicle, law enforcement allegedly discovered anomalies in shopping bags located in the trunk and under the rear passenger seat. Further inspection revealed concealed bundles which tested positive for 5.24 kilograms of cocaine, according to the charges.
If convicted, Rosalez-Vasquez faces up to life in prison and a possible $10 million fine.
Homeland Security Investigations conducted the investigation with the assistance of Customs and Border Protection. Assistant U.S. Attorney Paul A. Harrison is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Man Charged in Fatal St. Louis CarjackingRead the Press Release
ST. LOUIS – A man from St. Louis appeared in court Tuesday to face a federal carjacking charge connected to a fatal shooting in St. Louis earlier this month.
Laveal D. Jones II, 24, was charged by complaint October 14 with carjacking.
Charging documents say Jones and the victim were at a Sauget, Illinois night club early on the morning of October 1. Based on witnesses and electronic evidence, they later drove back to St. Louis, dropping off someone else before pausing in the 3000 block of Walton Place. They arrived at 4:24 a.m. Two shots were heard two minutes later. Shortly after the shots were heard, a body could be seen on video in the street. Other video cameras spotted the victim’s car being driven to East St. Louis. Police were called to Walton Place at about 5:46 a.m. and found the victim’s body.
The East Saint Louis Fire Department found the victim’s 2015 Kia K900 on fire at 5:51 a.m.
Charges set forth in a criminal complaint are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
The case was investigated by the St. Louis Metropolitan Police Department and the FBI. Assistant U.S. Attorney Ryan Finlen is prosecuting the case.
Louisville Attorney Sentenced to 27 Months in Federal Prison for Tax EvasionRead the Press Release
Louisville, KY – A Louisville attorney was sentenced today to 27 months in prison and was ordered to pay a $15,000 fine.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky and Bryant Jackson, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation, Cincinnati Field Office, made the announcement.
According to court documents and evidence presented at trial, Keith Hunter, 65, of Louisville, evaded the payment of federal income taxes, penalties, and interest due and owing by him to the United States for the calendar years 2000, 2001, 2002, 2006, 2008, and 2011, totaling $1,124,620, by concealing assets in various ways. Among the methods Hunter used to conceal his assets from the United States Internal Revenue Service were storing personal income in a client escrow account, storing personal income in a nominee bank account, purchasing a home through a nominee as an alleged charitable donation, and by recycling cashier’s checks, which is the practice of engaging in a cycle of purchasing a cashier’s check, using a small portion of the check, and then purchasing another cashier’s check of lesser value. The evidence presented at trial showed that Hunter also intentionally provided false and misleading information regarding his assets and income to Internal Revenue Service civil collections personnel.
Hunter was also sentenced to 3 years of supervised release upon completion of his term of imprisonment, with a condition that he pay restitution to the Internal Revenue Service during his term of supervised release. There is no parole in the federal system.
The Internal Revenue Service investigated the case.
Assistant U.S. Attorneys Amanda E. Gregory and Joel King prosecuted the case with assistance of paralegal Carissa Moss.
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Lamar Man Sentenced to 20 Years for Illegal Firearms, Meth TraffickingRead the Press Release
SPRINGFIELD, Mo. – A Lamar, Mo., man was sentenced in federal court today for illegally possessing firearms and methamphetamine to distribute.
Jerold G. Lake, 40, was sentenced by U.S. District Judge M. Douglas Harpool to 20 years in federal prison without parole. Lake was sentenced as a career offender due to his prior felony convictions.
On Nov. 17, 2021, Lake pleaded guilty to one count of being a felon in possession of a firearm, one count of possessing methamphetamine with the intent to distribute, and one count of possessing a firearm in furtherance of a drug-trafficking crime.
Lake was the passenger in a vehicle stopped by Barton County, Mo., sheriff’s deputies in Lamar on May 15, 2020. Deputies searched the vehicle and found a stolen Glock .380-caliber semi-automatic handgun under Lake’s seat.
On another occasion, Lake was driving a vehicle that Vernon County, Mo., sheriff’s deputies attempted to stop in Nevada, Mo., after observing a traffic violation on Nov. 9, 2020. Lake fled with deputies in pursuit until his vehicle struck spike strips and came to rest in a ditch. During the chase, Lake’s vehicle reached speeds between 90 and 100 miles per hour, drove on the wrong side of the road, forced oncoming traffic to evade him, swerved wildly through traffic, and failed to yield for stop signs.
Deputies arrested Lake, who was in possession of 4.2 grams of methamphetamine, 3.2 grams of marijuana, and $1,072 in cash. They found a black backpack on the driver’s seat of Lake’s vehicle that contained 35.28 grams of marijuana and drug paraphernalia. Deputies canvassed the route of the pursuit and found a Glock .45-caliber semi-automatic handgun that had been reported stolen from a law enforcement officer’s vehicle in Crawford County, Kansas. Deputies also found a bag that contained 18.2 grams of methamphetamine along the highway.
According to court documents, Lake is a member of the Southwest Honkeys, a violent gang in southwest Missouri. He has Southwest Honkeys tattoos on his chest and stomach, and a skull with “SS” lightning bolts on his back.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Lake has two prior felony convictions for possession of methamphetamine, two prior felony convictions for possession of a chemical with intent to manufacture methamphetamine, and prior felony convictions for resisting a lawful stop (in which he fled from officers at speeds up to 130 miles per hour before crashing into a yard), receiving stolen property, conspiracy to deliver or conceal a controlled substance to a correctional facility, attempting to steal a motor vehicle, first degree assault and armed criminal action. Lake also accumulated numerous violations while on probation and parole, and while incarcerated.
Lake also has cases pending for arrests during 2020 (following his release from state prison in January 2020) in Barton County for first degree domestic assault, armed criminal action, and unlawful possession of a firearm; in Vernon County for first degree assault; and in Newton County, Mo., for fleeing an attempted traffic stop.
This case was prosecuted by Assistant U.S. Attorney Byron H. Black and Assistant U.S. Attorney Josephine L. Stockard. It was investigated by the Drug Enforcement Administration, the Barton County, Mo., Sheriff’s Department, the Lamar, Mo., Police Department, the Vernon County, Mo., Sheriff’s Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Missouri State Highway Patrol.
Lafarge Pleads Guilty to Conspiring to Provide Material Support to Foreign Terrorist OrganizationsRead the Press Release
BROOKLYN, NY – Earlier today, in federal court in Brooklyn, New York, Lafarge S.A. (Lafarge), a global building materials manufacturer headquartered in France, and Lafarge Cement Syria, S.A. (LCS), a Lafarge subsidiary headquartered in Syria, pleaded guilty to a one-count criminal information charging them with conspiring to provide material support and resources to the Islamic State of Iraq and al-Sham (ISIS) and the al-Nusrah Front (ANF), both U.S.-designated foreign terrorist organizations. Immediately following the defendants’ guilty pleas this morning, United States District Judge William F. Kuntz II sentenced the defendants to terms of probation and to pay financial penalties, including criminal fines of $90.78 million and forfeiture of $687 million, totaling $777.78 million.
The charges arose out of the defendants’ scheme to pay ISIS and ANF in exchange for permission to operate a cement plant in Syria from August 2013 to October 2014, which enabled LCS to obtain approximately $70.30 million in revenue.
Breon Peace, United States Attorney for the Eastern District of New York; Lisa O. Monaco, the Deputy Attorney General of the United States; Matthew G. Olsen, Assistant Attorney General of the Justice Department’s National Security Division; Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI); Michael Alfonso, Acting Special Agent-in-Charge, Homeland Security Investigations, New York (HSI); and Keechant L. Sewell, Commissioner, New York City Police Department (NYPD), announced the guilty pleas and sentences.
“In the midst of a civil war, Lafarge made the unthinkable choice to put money into the hands of ISIS, one of the world’s most barbaric terrorist organizations, so that it could continue selling cement,” said United States Attorney Peace. “Lafarge did this not merely in exchange for permission to operate its cement plant – which would have been bad enough – but also to leverage its relationship with ISIS for economic advantage, seeking ISIS’s assistance to hurt Lafarge’s competition in exchange for a cut of Lafarge’s sales. Today, Lafarge has admitted and taken responsibility for its staggering crime. Never before has a corporation been charged with providing material support and resources to foreign terrorist organizations. This unprecedented charge and resolution reflect the extraordinary crimes committed and demonstrates that corporations that take actions in contravention of our national security interests in violation of the law will be held to account.”
“The terrorism crimes to which Lafarge and its subsidiary have pleaded guilty are a vivid reminder of how corporate crime can intersect with national security,” said Deputy Attorney General Monaco. “The defendants partnered with ISIS, one of the most brutal terrorist organizations the world has ever known, to enhance profits and increase market share—all while ISIS engaged in a notorious campaign of violence during the Syrian civil war. This case sends the clear message to all companies, but especially those operating in high-risk environments, to invest in robust compliance programs, pay vigilant attention to national security compliance risks, and conduct careful due diligence in mergers and acquisitions.”
“The defendants routed nearly six million dollars in illicit payments to two of the world’s most notorious terrorist organizations—ISIS and al-Nusrah Front in Syria—at a time those groups were brutalizing innocent civilians in Syria and actively plotting to harm Americans,” said Assistant Attorney General Olsen. “There is simply no justification for a multi-national corporation authorizing payments to designated terrorist organizations.”
“As today’s guilty plea demonstrates, Lafarge was motivated by greed and self-interest when it turned a blind eye to the horrors of terrorism and knowingly conspired to fund terrorist organizations. Corporations are no different from individuals - if you fund terrorism, you will face the consequences. Today's result should serve as an example to others; if you are willing to fund evil, regardless of whether you are an individual or a larger entity, the FBI’s Joint Terrorism Task Force and our law enforcement partners will continue to be unrelenting in our commitment to protect our nation and bring you to justice," said FBI Assistant Director-in-Charge Driscoll.
“Homeland Security Investigations (HSI) is proud to stand beside our partners in the Joint Terrorism Task Force in this groundbreaking case as we hold private companies to account for their complicity in the death and destruction caused by ISIS and ANF. War runs on money, and Lafarge paid terrorists, adding fuel to the fire, to protect their own profits,” said HSI Acting Special Agent-in-Charge Alfonso. “Knowingly working with a foreign terrorist organization that is responsible for the deaths of countless American soldiers for monetary gain is a despicable act that deserves the highest penalties under the law. Today’s historic guilty plea sends a strong message to companies all over the world that we will not let you profit on the evil done by ISIS. We will not let you dishonor the memory of those killed by this barbaric group.”
“Today’s landmark guilty pleas demonstrate the importance of our ongoing work to disrupt the kind of transnational terrorism that poses significant threats at home and around the world,” said NYPD Commissioner Sewell. “Once again, our strong law enforcement relationships were aligned in this investigation to reach as far as was necessary to ensure justice and keep us from harm. I am immensely proud, today, of our NYPD investigators, the U.S. Attorney for the Eastern District, the FBI’s New York Joint Terrorism Task Force, Homeland Security Investigations, and everyone here and abroad who pulled together over time to pursue this important case."
The Defendants Negotiated with Armed Groups and Paid Terrorists
From approximately May 2010 to September 2014, Lafarge, through LCS, operated a cement plant in the Jalabiyeh region of Northern Syria (the “Jalabiyeh Cement Plant”) that Lafarge had constructed at a cost of approximately $680 million. After the start of the Syrian Civil War in 2011, Lafarge and LCS negotiated agreements to pay armed factions in the Civil War to protect LCS employees, to ensure continued operation of the Jalabiyeh Cement Plant, and to obtain economic advantage over their competitors in the Syrian cement market.
As Lafarge executives made clear in contemporaneous emails, their motives were primarily economic. LCS executives purchased raw materials needed to manufacture cement from ISIS-controlled suppliers; paid monthly “donations” to armed groups, including ISIS and ANF, so that employees, customers and suppliers could traverse checkpoints controlled by the armed groups on roads around the Jalabiyeh Cement Plant; and eventually agreed to make payments to ISIS based on the volume of cement that LCS sold to its customers, which Lafarge and LCS executives likened to paying “taxes.”
The Defendants Negotiated Revenue-Sharing Agreements with ISIS and Sought Economic Advantage
Lafarge and LCS executives intentionally structured their agreements with ISIS to compensate the terrorist organization based on the amount of cement that LCS was able to sell – effectively, a revenue-sharing agreement – to incentivize the terrorist group to act in LCS’s economic interest. A senior Lafarge executive, who supervised LCS’s executives and reported directly to Lafarge’s Chief Executive Officer, articulated this purpose in instructions he sent to LCS executives about the negotiations with ISIS in July 2014: “We have to maintain the principle that we are ready to share the ‘cake,’ if there is a ‘cake.’ To me, the ‘cake’ is anything that is a ‘profit’, after the amortization and before financial expenses.”
As a condition of entering into this revenue-sharing agreement, Lafarge and LCS executives sought ISIS’s assistance to impose costs on competitors selling Turkish cement imported into northern Syria, which was often sold more cheaply than cement produced at the Jalabiyeh Cement Plant. LCS executives made clear to the intermediaries negotiating with ISIS that, in exchange for LCS paying ISIS 750 Syrian Pounds per each ton of cement that it sold, they expected ISIS to take action against LCS’s competitors, either by stopping the sale of competing imported Turkish cement in the areas under ISIS’s control, or by imposing taxes on competing cement that would allow LCS to raise the prices at which it sold cement.
From August 2013 through October 2014, Lafarge and LCS paid ISIS and ANF, through intermediaries, the equivalent of approximately $5.92 million, consisting of fixed monthly “donation” payments to ISIS and ANF, payments to ISIS-controlled suppliers to purchase raw materials and variable payments based on the amount of cement LCS sold. Lafarge and LCS also paid the equivalent of approximately $1.11 million to the third-party intermediaries for negotiating with and making payments to ISIS and ANF on Lafarge’s and LCS’s behalf. In addition, when LCS eventually evacuated the Jalabiyeh Cement Plant in September 2014, ISIS took possession of cement that LCS had produced in furtherance of the conspiracy, and ISIS sold the cement at prices that would have yielded ISIS approximately $3.21 million. As a result of the scheme, LCS obtained approximately $70.30 million in total sales revenue from August 2013 through 2014. The gains to all participants in the conspiracy, including LCS, the intermediaries and the terrorist groups, totaled approximately $80.54 million.
The Defendants Concealed Their Payments, Falsified Records and Backdated Contracts
Lafarge and LCS executives also actively concealed their scheme to provide material support to ISIS and ANF. For example:
- Lafarge and LCS executives required intermediaries to create business entities with names not obviously linked to the intermediaries and created invoices with false descriptions of services rendered for an intermediary to submit to LCS.
- LCS executives structured the revenue-sharing payments to ISIS so that LCS’s customers would pay ISIS, while LCS reimbursed the customers by discounting the prices it charged them. To ensure that LCS’s customers did not underpay ISIS, LCS agreed to provide ISIS with periodic sales reports, which ISIS could use to verify that LCS’s customers were paying the amounts owed under the terms of LCS’s agreement with ISIS.
- To further conceal the arrangements, Lafarge and LCS executives attempted to require ISIS not to include the name “Lafarge” on the documents memorializing and implementing their agreements.
- Many of the Lafarge and LCS executives involved in the scheme used personal email addresses, rather than their corporate email addresses, to carry out the conspiracy.
- In October 2014, as a condition of paying an intermediary for having negotiated with ISIS and other armed groups, Lafarge and LCS executives required the intermediary to sign an agreement terminating his agreement to provide services to LCS. Critically, the Lafarge and LCS executives backdated the termination agreement to August 18, 2014, a date shortly after the United Nations Security Council had issued a resolution calling on member states to prohibit doing business with ISIS and ANF, to falsely suggest that the intermediary was not negotiating with ISIS on behalf of LCS after the U.N. resolution.
Lafarge was eventually acquired by a competitor (the “Successor Company”) in a transaction that closed on July 10, 2015. Lafarge executives did not disclose LCS’s payments to ISIS and ANF to the Successor Company during pre-acquisition diligence meetings, and the Successor Company conducted neither pre- nor post-acquisition due diligence of LCS’s operations in Syria, which had terminated by the time the transaction closed. Lafarge, LCS, and the Successor Company also did not self-report the conduct or fully cooperate in this Office’s investigation.
The investigation was conducted by the FBI’s New York Joint Terrorism Task Force. The government’s case is being handled by the Office’s National Security and Cybercrime Section. Assistant United States Attorneys Allon Lifshitz, Alexander A. Solomon, Ian C. Richardson, and Joshua Hafetz led the investigation and prosecution, with assistance provided by Assistant United States Attorneys Artemis Lekakis, J. Matthew Haggans, and Lauren A. Bowman, and Trial Attorneys Bridget Behling and Jennifer Levy of the National Security Division’s Counterterrorism Section.
The Department of Justice’s Office of International Affairs provided critical assistance in this case. The Department also appreciates the significant cooperation and assistance provided by the French, Moroccan, and Lebanese authorities.
The Defendants:
Lafarge S.A.
Paris, FranceLafarge Cement Syria S.A.
Damascus, SyriaE.D.N.Y. Docket No. 22-CR-444 (WFK)
Lafarge Pleads Guilty to Conspiring to Provide Material Support to Foreign Terrorist OrganizationsRead the Press Release
A global building materials manufacturer and its subsidiary pleaded guilty today to a one-count criminal information charging them with conspiring to provide material support and resources in Northern Syria from 2013 to 2014 to the Islamic State of Iraq and al-Sham (ISIS) and the al-Nusrah Front (ANF), both U.S.-designated foreign terrorist organizations. Immediately following the defendants’ guilty pleas this morning, U.S. District Judge William F. Kuntz II sentenced the defendants to terms of probation and to pay financial penalties, including criminal fines and forfeiture, totaling $777.78 million.
According to court documents, Lafarge S.A., headquartered in Paris, France, and Lafarge Cement Syria (LCS) S.A., headquartered in Damascus, Syria, schemed to pay ISIS and ANF in exchange for permission to operate a cement plant in Syria from 2013 to 2014, which enabled LCS to obtain approximately $70.3 million in revenue.
“The terrorism crimes to which Lafarge and its subsidiary have pleaded guilty are a vivid reminder of how corporate crime can intersect with national security,” said Deputy Attorney General Lisa O. Monaco. “The defendants partnered with ISIS, one of the most brutal terrorist organizations the world has ever known, to enhance profits and increase market share — all while ISIS engaged in a notorious campaign of violence during the Syrian civil war. This case sends the clear message to all companies, but especially those operating in high-risk environments, to invest in robust compliance programs, pay vigilant attention to national security compliance risks, and conduct careful due diligence in mergers and acquisitions.”
“The defendants routed nearly six million dollars in illicit payments to two of the world’s most notorious terrorist organizations – ISIS and al-Nusrah Front in Syria – at a time those groups were brutalizing innocent civilians in Syria and actively plotting to harm Americans,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “There is simply no justification for a multi-national corporation authorizing payments to designated terrorist organizations.”
From approximately May 2010 to September 2014, Lafarge, through LCS, operated a cement plant in the Jalabiyeh region of Northern Syria (the Jalabiyeh Cement Plant) that Lafarge had constructed at a cost of approximately $680 million. After the start of the Syrian Civil War in 2011, Lafarge and LCS negotiated agreements to pay armed factions in the Civil War to protect LCS employees, to ensure continued operation of the Jalabiyeh Cement Plant, and to obtain economic advantage over their competitors in the Syrian cement market.
As Lafarge executives made clear in contemporaneous emails, their motives were primarily economic. LCS executives purchased raw materials needed to manufacture cement from ISIS-controlled suppliers; paid monthly “donations” to armed groups, including ISIS and ANF, so that employees, customers and suppliers could traverse checkpoints controlled by the armed groups on roads around the Jalabiyeh Cement Plant; and eventually agreed to make payments to ISIS based on the volume of cement that LCS sold to its customers, which Lafarge and LCS executives likened to paying “taxes.”
Lafarge and LCS executives intentionally structured their agreements with ISIS to compensate the terrorist organization based on the amount of cement that LCS was able to sell – effectively, a revenue-sharing agreement – to incentivize the terrorist group to act in LCS’s economic interest.
As a condition of entering into this revenue-sharing agreement, Lafarge and LCS executives sought ISIS’s assistance to impose costs on competitors selling Turkish cement imported into northern Syria, which was often sold more cheaply than cement produced at the Jalabiyeh Cement Plant. LCS executives made clear to the intermediaries negotiating with ISIS that, in exchange for LCS paying ISIS 750 Syrian Pounds per each ton of cement that it sold, they expected ISIS to take action against its competitors, either by stopping the sale of competing imported Turkish cement in the areas under ISIS’s control, or by imposing taxes on competing cement that would allow LCS to raise the prices at which it sold cement.
“In the midst of a civil war, Lafarge made the unthinkable choice to put money into the hands of ISIS, one of the world’s most barbaric terrorist organizations, so that it could continue selling cement,” said U.S. Attorney Breon Peace for the Eastern District of New York. “Lafarge did this not merely in exchange for permission to operate its cement plant – which would have been bad enough – but also to leverage its relationship with ISIS for economic advantage, seeking ISIS’s assistance to hurt Lafarge’s competition in exchange for a cut of Lafarge’s sales. Today, Lafarge has admitted and taken responsibility for its staggering crime. Never before has a corporation been charged with providing material support and resources to foreign terrorist organizations. This unprecedented charge and resolution reflect the extraordinary crimes committed and demonstrates that corporations that take actions in contravention of our national security interests in violation of the law will be held to account.”
“This guilty plea is a result of extraordinary collaboration among the FBI, the Department of Justice, and our international partners,” said FBI Deputy Director Paul Abbate. “The result demonstrates to anyone who would seek to contribute to ISIS’s terrorist activities, that the FBI will relentlessly pursue, and hold them accountable, regardless of where, or how, they attempt to hide.”
From August 2013 through October 2014, Lafarge and LCS paid ISIS and ANF, through intermediaries, the equivalent of approximately $5.92 million, consisting of fixed monthly “donation” payments to ISIS and ANF, payments to ISIS-controlled suppliers to purchase raw materials, and variable payments based on the amount of cement LCS sold. Lafarge and LCS also paid the equivalent of approximately $1.11 million to the third-party intermediaries for negotiating with and making payments to ISIS and ANF on Lafarge’s and LCS’s behalf. In addition, when LCS eventually evacuated the Jalabiyeh Cement Plant in September 2014, ISIS took possession of cement that LCS had produced in furtherance of the conspiracy, and ISIS sold the cement at prices that would have yielded ISIS approximately $3.21 million. As a result of the scheme, LCS obtained approximately $70.30 million in total sales revenue from August 2013 through 2014. The gains to all participants in the conspiracy, including LCS, the intermediaries and the terrorist groups, totaled approximately $80.54 million.
Lafarge and LCS executives actively concealed their scheme to provide material support to ISIS and ANF. For example:
- Lafarge and LCS executives required intermediaries to create business entities with names not obviously linked to the intermediaries and created invoices with false descriptions of services rendered for an intermediary to submit to LCS.
- LCS executives structured the revenue-sharing payments to ISIS so that LCS’s customers would pay ISIS the amounts owed under LCS’s agreement with ISIS, while LCS discounted the prices it charged to the customers to reimburse them. To ensure that LCS’s customers did not underpay ISIS, LCS agreed to provide ISIS with periodic sales reports, which ISIS could use to verify that LCS’s customers were paying the amounts owed under the terms of LCS’s agreement with ISIS.
- To further conceal the arrangements, Lafarge and LCS executives attempted to require ISIS not to include the name “Lafarge” on the documents memorializing and implementing their agreements.
- Many of the Lafarge and LCS executives involved in the scheme used personal email addresses, rather than their corporate email addresses, to carry out of the conspiracy.
- In October 2014, as a condition of paying an intermediary for having negotiated with ISIS and other armed groups, Lafarge and LCS executives required the intermediary to sign an agreement terminating his agreement to provide services to LCS. Critically, the Lafarge and LCS executives backdated the termination agreement to Aug. 18, 2014, a date shortly after the United Nations Security Council had issued a resolution calling on member states to prohibit doing business with ISIS and ANF, to falsely suggest that he had not been negotiating with ISIS on behalf of LCS after the U.N. resolution.
Lafarge was eventually acquired by a competitor (the Successor Company) in a transaction that closed on July 10, 2015. Lafarge executives did not disclose LCS’s payments to ISIS and ANF to the Successor Company during pre-acquisition diligence meetings, and the Successor Company conducted neither pre- nor post-acquisition due diligence of LCS’s operations in Syria, which had terminated by the time the transaction closed. Lafarge, LCS and the Successor Company also did not self-report the conduct or fully cooperate in the investigation.
Lafarge and its subsidiary pleaded guilty to conspiring to provide material support to designated foreign terrorist organizations and admitted to negotiating with and paying armed groups and terrorists, negotiating revenue-sharing agreements with ISIS to seek economic advantage, and concealing their payments, falsified records, and backdated contracts.
The FBI’s New York Joint Terrorism Task Force is investigating the case. The Justice Department’s Office of International Affairs provided critical assistance in this case. The Department also appreciates the significant cooperation and assistance provided by the French, Moroccan and Lebanese authorities.
Assistant U.S. Attorneys Allon Lifshitz, Alexander A. Solomon, Ian C. Richardson, and Joshua Hafetz for the U.S. Attorney’s Office’s National Security and Cybercrime Section are prosecuting the case, with valuable assistance provided by Assistant U.S. Attorneys Artemis Lekakis, J. Matthew Haggans, and Lauren A. Bowman and Trial Attorneys Bridget Behling and Jennifer Levy of the National Security Division’s Counterterrorism Section.
Lafarge Plaide Coupable Quant À Sa Conspiration Ayant Permis De Fournir Une Aide Important À Des Organisations Terroristes ÉtrangèresRead the Press Release
BROOKLYN, NY – Plus tôt aujourd’hui, dans la cour fédérale de Brooklyn, New York, Lafarge S.A. (Lafarge), un fabricant mondial de matériaux de construction dont le siège est situé en France, et Lafarge Cement Syria, S.A. (LCS), une filiale de Lafarge dont le siège est situé en Syrie, ont plaidé coupables concernant l’unique chef d’informations criminelles les accusant d’avoir conspiré pour fournir une aide et des ressources importantes à l’État islamique d’Irak et du Shâm (ISIS) et au Front al-Nosra (ANF), tous deux désignés comme des organisations terroristes étrangères par les États-Unis. Immédiatement après les plaidoyers de culpabilité des défendeurs ce matin, le Juge de District des États-Unis William F. Kuntz, II a condamné les défendeurs à une probation et à payer les sanctions financières, comprenant des amendes criminelles à hauteur de 90,78 millions de dollars et une confiscation de 687 millions de dollars, totalisant 777,78 millions de dollars.
Les accusations ont fait suite au plan des défendeurs de payer l’ISIS et l’ANF en échange de la permission d’exploiter une usine de ciment en Syrie d’août 2013 à octobre 2014, ayant permis à LCS d’obtenir environ 70,30 millions de dollars de recettes.
Breon Peace, Procureur des États-Unis pour le District Est de New York ; Lisa O. Monaco, Procureure générale adjointe des États-Unis ; Matthew G. Olsen, Procureur général adjoint de la Division de Sécurité Nationale du Département de la Justice des États-Unis ; et Michael J. Driscoll, directeur en charge adjoint au Bureau de terrain de New York du Federal Bureau of Investigation (FBI), Michael Alfonso, agent en charge spécial par intérim, Homeland Security Investigations, New York (HSI) ; et Keechant L. Sewell, Commissaire, New York City Police Department (NYPD) ont annoncé les plaidoyers de culpabilité.
« En pleine guerre civile, Lafarge a fait le choix impensable de mettre de l’argent entre les mains de l’ISIS, l’une des organisations terroristes les plus barbares de la planète, afin de pouvoir continuer à vendre du ciment », a déclaré Me Peace, Procureur des États-Unis. « Lafarge n’a pas fait cela simplement en échange de la permission d’exploiter son usine de ciment, ce qui aurait déjà été suffisamment préjudiciable, elle l’a aussi fait pour tirer parti de sa relation avec l’ISIS à des fins économiques, demandant l’aide de cette organisation pour porter un coup à sa concurrence en échange d’une part de ses ventes. Aujourd’hui, Lafarge a admis et assumé la responsabilité de son crime ahurissant. Jamais auparavant une entreprise n’avait été accusée de fournir une aide et des ressources importantes à des organisations terroristes étrangères. Cette accusation et cette résolution sans précédent reflètent les crimes extraordinaires commis et démontrent que les entreprises qui agissent en infraction de nos intérêts de sécurité nationale et violent ainsi la loi devront rendre des comptes. »
« Comme le démontre le plaidoyer de culpabilité d’aujourd’hui, Lafarge a été motivée par l’avidité et son intérêt personnel lorsqu’elle a fermé les yeux sur les horreurs du terrorisme et a sciemment conspiré pour financer ces organisations terroristes. Les entreprises ne sont pas différentes des individus ; si vous financez le terrorisme, vous ferez face aux conséquences. Le résultat d’aujourd’hui devrait servir d’exemple aux autres ; si vous souhaitez financer le mal, peu importe que vous soyez un individu ou une entité plus vaste, la Joint Terrorism Task Force (Équipe conjointe d’intervention contre le terrorisme) du FBI et nos partenaires chargés de l’application de la loi continueront de démontrer un engagement implacable pour protéger notre nation et vous traduire en justice », a déclaré Me Driscoll, directeur en charge adjoint du FBI.
« Homeland Security Investigations (HSI) est fière de se tenir aux côtés de la Joint Terrorism Task Force (Équipe conjointe d’intervention contre le terrorisme) dans cette affaire sans précédent alors que nous demandons des comptes à des sociétés privées pour connaître leur complicité dans la mort et la destruction causées par l’ISIS et l’ANF. La guerre requiert de l’argent, et Lafarge a payé des terroristes, alimentant le feu pour protéger ses propres profits », a déclaré Me Alfonso, agent en charge spécial par intérim de HSI New York. « Travailler sciemment avec une organisation terroriste étrangère responsable de la mort d’innombrables soldats américains à des fins monétaires constitue un acte méprisable qui mérite la plus forte peine en vertu de la loi. Le plaidoyer de culpabilité historique d’aujourd’hui envoie un message fort aux entreprises du monde entier : nous ne vous laisserons pas tirer profit des méfaits commis par l’ISIS. Nous ne vous laisserons pas déshonorer la mémoire des personnes tuées par ce groupe barbare. »
« Les plaidoyers de culpabilité monumentaux d’aujourd’hui démontrent l’importance de notre travail continu pour lutter contre le genre de terrorisme transnational qui représente une menace importante à l’échelle nationale et dans le monde entier », a déclaré M. Sewell, Commissaire du NYPD. « Une fois encore, nos puissantes relations chargées de l’application de la loi ont collaboré dans cette enquête pour aller aussi loin que nécessaire afin d’assurer la justice et de nous protéger du danger. Je suis extrêmement fier, aujourd’hui, de nos enquêteurs du NYPD, du Procureur des États-Unis pour le District Est, de la Joint Terrorism Task Force du FBI à New York, de Homeland Security Investigations, et de tous ceux, ici et à l’étranger, qui se sont entraidés au fil du temps pour suivre cette affaire importante. »
Les Défendeurs ont négocié avec des groupes armés et des terroristes rémunérés
D’environ mai 2010 à septembre 2014, Lafarge, via LCS, a exploité une usine de ciment dans la région de Jalabiyeh en Syrie du Nord (l’« Usine de ciment de Jalabiyeh ») que Lafarge avait construite pour un coût d’environ 680 millions de dollars. Après le début de la guerre civile syrienne en 2011, Lafarge et LCS ont négocié des accords pour payer des factions armées de la guerre civile afin de protéger les employés de LCS, pour assurer un fonctionnement continu de l’Usine de ciment de Jalabiyeh et obtenir un avantage économique par rapport à leurs concurrents sur le marché syrien du ciment.
Comme les cadres de Lafarge l’ont clairement indiqué dans des e-mails récents, leurs motifs étaient principalement économiques. Les cadres de LCS ont acheté les matières premières nécessaires pour fabriquer du ciment auprès de fournisseurs contrôlés par l’ISIS ; versé des « dons » mensuels à des groupes armés, y compris l’ISIS et l’ANF, afin que les employés, clients et fournisseurs puissent traverser les postes de contrôle des groupes armés sur les routes autour de l’Usine de ciment de Jalabiyeh ; et finalement accepté de verser des paiements à l’ISIS sur la base du volume de ciment que LCS vendait à ses clients, que les cadres de Lafarge et LCS ont assimilé au paiement de « taxes ».
Les Défendeurs ont négocié des accords de partage de recettes avec l’ISIS et cherché un avantage économique
Les cadres de Lafarge et LCS ont intentionnellement structuré leurs accords avec l’ISIS pour rémunérer l’organisation terroriste sur la base de la quantité de ciment que LCS avait réussi à vendre – dans les faits, un accord de partage de recettes – pour inciter le groupe terroriste à agir dans l’intérêt économique de LCS.
À titre de condition pour conclure cet accord de partage de recettes, les cadres de Lafarge et LCS ont demandé de l’aide à l’ISIS pour imposer des coûts aux concurrents vendant du ciment turc importé en Syrie du Nord, qui était souvent vendu moins cher que le ciment produit à l’Usine de ciment de Jalabiyeh. Les cadres de LCS ont indiqué clairement aux intermédiaires négociant avec l’ISIS que, en échange du paiement par LCS de 750 livres syriennes à l’ISIS pour chaque tonne de ciment vendu, ils s’attendaient à ce que l’ISIS prenne des mesures à l’encontre des concurrents de LCS, soit en arrêtant la vente de ciment turc importé concurrent dans les zones sous le contrôle de l’ISIS, soit en imposant des taxes sur le ciment concurrent de manière à permettre à LCS d’augmenter les prix auxquels elle vendait le ciment.
D’août 2013 à octobre 2014, Lafarge et LCS ont payé à l’ISIS et l’ANF, via des intermédiaires, l’équivalent d’environ 5,92 millions de dollars, consistant en des versements de « dons » mensuels fixes à l’ISIS et l’ANF, des paiements aux fournisseurs contrôlés par l’ISIS pour acheter des matières premières et des paiements variables basés sur la quantité de ciment vendu par LCS. Lafarge et LCS ont aussi payé l’équivalent d’environ 1,11 million de dollars à des intermédiaires tiers pour négocier avec l’ISIS et l’ANF et effectuent des paiements à ces derniers au nom de Lafarge et LCS. Par ailleurs, lorsque LCS a fini par évacuer l’Usine de ciment de Jalabiyeh en septembre 2014, l’ISIS a pris possession du ciment que LCS avait produit dans l’intérêt de la conspiration et l’a vendu à des prix qui lui auraient rapporté environ 3,21 millions de dollars. En conséquence du plan, LCS a obtenu environ 70,30 millions de dollars en recettes de ventes totales d’août 2013 à 2014. Les gains pour tous les participants à la conspiration, y compris LCS, les intermédiaires et les groupes terroristes, ont totalisé environ 80,54 millions de dollars.
Les Défendeurs ont dissimulé leurs paiements, falsifié leurs registres et antidaté les contrats
Les cadres de Lafarge et LCS ont aussi activement dissimulé leur plan consistant à fournir une aide importante à l’ISIS et à l’ANF. Par exemple :
- Les cadres de Lafarge et LCS ont exigé d’intermédiaires qu’ils créent des entités commerciales avec des noms sans rapport évident avec eux-mêmes et ont créé des factures avec des descriptions fausses des services rendus qu’un intermédiaire devait soumettre à LCS.
- Les cadres de LCS ont structuré les paiements de partage de recettes à l’ISIS afin que les clients de LCS paient l’ISIS, tandis que LCS remboursait les clients en appliquant des ristournes sur les prix pratiqués avec eux. Pour assurer que les clients de LCS ne sous-payent pas l’ISIS, LCS acceptait de fournir à l’ISIS des rapports de ventes périodiques, que l’ISIS pouvait utiliser pour vérifier que les clients de LCS payaient les montants dus en vertu des termes de l’accord de LCS avec l’ISIS.
- Pour dissimuler davantage leurs arrangements, les cadres de Lafarge et LCS ont tenté d’exiger de l’ISIS qu’elle n’inclue pas le nom « Lafarge » sur les documents commémorant et exécutant leurs accords.
- Bon nombre des cadres de Lafarge et LCS impliqués dans le plan utilisaient des adresses e-mail personnelles, plutôt que leurs adresses e-mail d’entreprise, pour mener à bien la conspiration.
- En octobre 2014, en guise de condition pour payer un intermédiaire afin de négocier avec l’ISIS et d’autres groupes armés, les cadres de Lafarge et LCS ont exigé de celui-ci qu’il signe un accord résiliant son acceptation de fournir des services à LCS. Point crucial, les cadres de Lafarge et LCS ont antidaté l’accord de résiliation au 18 août 2014, soit juste après l’émission par le Conseil de sécurité des Nations Unies d’une résolution appelant les États membres à interdire la réalisation d’affaires avec l’ISIS et l’ANF, afin de faussement suggérer que l’intermédiaire ne négociait pas avec l’ISIS au nom de LCS après la résolution de l’ONU.
Lafarge a fini par être acquise par un concurrent (la « Société successeur ») dans une transaction conclue le 10 juillet 2015. Les cadres de Lafarge n’ont pas divulgué les paiements de LCS à l’ISIS et à l’ANF à la Société successeur pendant les réunions de diligence d’acquisition, et la Société successeur n’a mené un processus de diligence raisonnable ni avant l’acquisition, ni après, concernant les opérations de LCS en Syrie, qui s’étaient arrêtées au moment de la conclusion de la transaction. Lafarge, LCS et la Société successeur n’ont pas non plus déclaré d’elles-mêmes leur conduite ou pleinement coopéré dans le cadre de l’enquête du Bureau.
L’enquête a été menée par la Joint Terrorism Task Force du FBI à New York. La position du gouvernement est gérée par la Section Sécurité Nationale et Cybercrime du Bureau. Les Procureurs adjoints des États-Unis Allon Lifshitz, Alexander A. Solomon, Ian C. Richardson et Joshua Hafetz ont mené l’enquête et la procédure, avec l’aide fournie par les Procureurs adjoints des États-Unis Artemis Lekakis, J. Matthew Haggans et Lauren A. Bowman, et les Avocates plaidantes Bridget Behling et Jennifer Levy de la Section Antiterrorisme de la Division de Sécurité Nationale.
L’Office of International Affairs de la Division Criminelle du Département de la Justice a fourni une assistance cruciale dans cette affaire. Le Département apprécie également la coopération et l’aide considérables apportées par les autorités françaises, marocaines et libanaises.
Les Défendeurs :
Lafarge S.A.
Paris, FranceLafarge Cement Syria S.A.
Damas, SyrieDossier de l’E.D.N.Y. n° 22-CR-444 (WFK)
Lander Man Sentenced for Assault Resulting in Serious Bodily InjuryRead the Press Release
Acting United States Attorney Nicholas Vassallo announced today that IAN JOSIAH TIMBANA, age 34, of Lander, Wyoming, was sentenced by United States Federal District Court Judge Nancy D. Freudenthal for assault resulting in serious bodily injury. Timbana was sentenced to 30 months’ imprisonment with three years of supervised release and was ordered to pay $29,998.33 in restitution and a $100 special assessment.
On December 7, 2021, law enforcement responded to a call for service at a residence on the Wind River Indian Reservation. At the scene, law enforcement located a woman with facial fractures who had been assaulted by Timbana.
This crime was investigated by the Federal Bureau of Investigation and the Bureau of Indian Affairs. Assistant United States Attorney Michael J. Elmore prosecuted the case.
Case No. 22-cr-00064-NDF
Justice Department Files Multiple Lawsuits to Stop the Illegal Sale of Unauthorized Vaping ProductsRead the Press Release
The United States filed complaints against six companies and related individuals to stop the illegal manufacture and sale of unauthorized vaping products, the Department of Justice announced today.
In civil complaints and accompanying court papers filed in U.S. District Court, the government alleges that the defendants illegally manufacture and sell electronic nicotine delivery system (ENDS) products, including finished “e-liquids,” or liquids that contain nicotine and colorings, flavorings and/or other ingredients.
The complaints allege that the defendants caused tobacco products to become adulterated and misbranded while held for sale after shipment of one or more of their components in interstate commerce, and that they continued to manufacture, sell and distribute the adulterated and misbranded tobacco products despite receiving warning letters from the FDA that they were violating the law.
These actions are the first seeking to enjoin manufacturers of ENDS products for violations of the premarket review requirements of the federal Food, Drug and Cosmetic Act (FDCA).
“These cases are an important step in stopping the illegal sale of unauthorized electronic nicotine delivery system products,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The Department of Justice will continue to work closely with FDA to stop the distribution of illegal, unauthorized tobacco products.”
“Today’s enforcement actions represent a significant step for the FDA in preventing tobacco product manufacturers from violating the law,” said Brian King, Ph.D., M.P.H., Director of the FDA’s Center for Tobacco Products. “The FDA is committed to acting swiftly when we are made aware of these violations. We will not stand by as manufacturers repeatedly break the law, especially after being afforded multiple opportunities to comply.”
“It’s important that businesses — large and small — take the necessary steps to comply with federal regulations that are put in place to ultimately protect the consumer, especially with regard to potentially harmful products,” said U.S. Attorney Peter D. Leary for the Middle District of Georgia. “Our office will enforce statutes intended to keep the citizens of the Middle District of Georgia safe.”
“Not only were the Super Vape’z shops selling potentially adulterated tobacco products, they sold vapes to underage kids,” said U.S. Attorney Nick Brown for the Western District of Washington. “The owners were told repeatedly that they needed to obtain FDA approval for their tobacco products, but they refused to take that step. The Department of Justice is filing suit to protect the public.”
The lawsuits announced today were filed against defendants in six states:
- Seditious Vapours LLC, a Phoenix-based company, and its owner Matthew D. Berger, filed in the District of Arizona;
- Vapor Craft LLC, based in Columbus, Georgia, and its owner Melissa D. Anderson, filed in the Middle District of Georgia;
- Lucky’s Convenience & Tobacco LLC, of Wichita, Kansas, and its majority owners Kevin H. Nguyen and Thomas Rogers, filed in the District of Kansas;
- Morin Enterprises Inc. and its owner Kevin Morin, operating multiple locations in Minnesota, and filed in the District of Minnesota;
- Super Vape’z LLC, based in Lakewood, Washington, and its co-owners Marco Hoffman and Heydee Hoffman, and general manager Judith A. Cramer, filed in the Western District of Washington;
- Soul Vapor LLC, of Princeton, West Virginia, and its owner Aurelius Jeffrey, filed in the Southern District of West Virginia.
Each of the defendants manufactured and sold ENDS products after receiving notice of the need to first obtain FDA marketing authorizations. The defendants did not attempt to obtain FDA authorization for their tobacco products at issue.
Senior Litigation Counsel Christina Parascandola, Senior Trial Attorney Stephen C. Tosini and Trial Attorneys Ellen Bowden McIntyre and Joshua Browning of the Justice Department’s Civil Division’s Consumer Protection Branch; and Assistant U.S. Attorney Todd P. Swanson for the Middle District of Georgia, Assistant U.S. Attorney Brian Vanorsby for the District of Kansas, Assistant U.S. Attorney Kristen E. Rau for the District of Minnesota, Assistant U.S. Attorney Ashley C. Burns for the Western District of Washington and Assistant U.S. Attorney Jennifer Mankins for the Southern District of West Virginia are handling the cases, with assistance from Jonathan Silberman, Danli Song and William Thanhauser for Department of Health and Human Services’ Office of General Counsel.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at http://www.justice.gov/civil/consumer-protection-branch.
The claims made in the complaints are allegations that, if the cases were to proceed to trial, the government must prove by a preponderance of the evidence.
Justice Department Announces New Charges, Convictions, and Sentencings in Ongoing Initiative Targeting Pandemic Relief FraudRead the Press Release
The Department of Justice announced today new criminal charges, convictions, and sentences as part of its ongoing initiative to prosecute fraud in connection with various pandemic relief programs under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, including the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan (EIDL) program, as well as other crimes relating to the COVID-19 pandemic.
“The Criminal Division and our partners are committed to identifying and holding accountable those who exploit the COVID-19 pandemic for their own gain,” said Assistant Attorney General Kenneth A. Polite, Jr., of the Justice Department’s Criminal Division. “As these cases demonstrate, we are unwavering in our determination to prosecute those who have defrauded relief programs meant to help struggling Americans during the pandemic.”
The following new charges are announced today:
United States v. Amber Singleton and Emanuel Tucker
On Sept. 9, Amber Singleton, 42, and Emanuel Tucker, 42, both of Canyon Lake, California, were charged in the Central District of California by indictment with conspiracy to commit wire fraud and bank fraud, wire fraud, bank fraud, conspiracy to commit money laundering, and money laundering for their roles in an alleged scheme to obtain $15.9 million in PPP and EIDL funds through fraud.
According to court documents, from in or around April 2020 to in or around April 2022, Singleton, Tucker, and other co-conspirators allegedly submitted 41 fraudulent PPP loan applications and 13 fraudulent EIDL applications on behalf of various companies that they owned and controlled. These applications allegedly contained material misrepresentations about the companies, including the number of employees, average monthly payroll, gross revenue, cost of goods, and supporting documents.
The top count carries a maximum penalty of 30 years in prison. If convicted, a federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI; Small Business Administration, Office of Inspector General (SBA-OIG); Internal Revenue Service, Criminal Investigation (IRS-CI); Federal Deposit Insurance Corporation, Office of Inspector General (FDIC-OIG); Board of Governors of the Federal Reserve System and the Consumer Financial Protection Bureau, Office of Inspector General (FRB-CFPB OIG); Treasury Inspector General for Tax Administration (TIGTA); and Department of Education, Office of Inspector General (DOE-OIG) are investigating the case.
Fraud Section Trial Attorneys Joshua Debold and Edward Emokpae and Assistant U.S. Attorney Valerie Makarewicz for the Central District of California are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
United States v. Dumarsais Blaise and Alexander Blaise
On May 19, Dumarsais Blaise, 45, of Stonecrest, Georgia, and Alexander Blaise, 41, of Plantation, Florida, were charged in the Southern District of Florida by indictment with conspiracy to commit wire fraud, wire fraud, conspiracy to commit money laundering, and money laundering for their roles in an alleged scheme to obtain $1.6 million in PPP funds through fraud.
According to court documents, beginning in or around May 2020, Dumarsais Blaise, a tax preparer, and Alexander Blaise allegedly conspired to fraudulently obtain PPP loans for companies that did not actually exist.
The top count carries a maximum penalty of 20 years in prison. If convicted, a federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FDIC-OIG and FBI’s Miami Division are investigating the case. Fraud Section Trial Attorney Edward Emokpae and Assistant U.S. Attorney Kiran Bhat for the Southern District of Florida are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
United States v. Karen Sarkisyan, Gayk Akhsharumov, and Babken Chalkadryan
On Sept. 2, Karen Sarkisyan, 42, of Glendale, California, Gayk Akhsharumov, 38, of Sherman Oaks, California, and Babken Chalkadryan, 38, of Van Nuys, California, were each charged in the Central District of California by indictment with conspiracy to commit wire fraud, wire fraud, conspiracy to commit health care fraud, health care fraud, conspiracy to commit money laundering, and money laundering for their roles in an alleged scheme to submit false Medicare claims. Sarkisyan and Akhsharumov were also charged with wire fraud and theft of government property for their roles in an alleged scheme to fraudulently obtain PPP funds.
According to court documents, from in or around January 2018 to in or around May 2021, the defendants allegedly used two Los Angeles-based hospice companies, San Gabriel Hospice & Palliative Care Inc. (San Gabriel Hospice) and Broadway Hospice Inc., to submit over $9 million in false and fraudulent claims to Medicare. Additionally, Sarkisyan and Akhsharumov allegedly submitted fraudulent PPP loan applications on behalf of San Gabriel Hospice to the SBA and to a financial institution and misused approximately $91,483 in other COVID-19 relief funds.
The top count carries a maximum penalty of 20 years in prison. If convicted, a federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Department of Health and Human Services, Office of Inspector General (HHS-OIG) and the FBI are investigating the case. Fraud Section Trial Attorneys Patrick J. Queenan and Alexandra Michael are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The following convictions and sentencings are announced today:
United States v. Marque Willard Johnson
On Sept. 15, Marque Willard Johnson, 40, of Tampa, Florida, pleaded guilty in the Middle District of Florida to bank fraud and money laundering as part of a scheme to fraudulently obtain $544,900 in PPP and EIDL funds.
According to court documents, in or around April 2020, June 2020, and January 2021, Johnson applied for one PPP loan and six EIDL loans in connection with two companies that he controlled, falsely claiming that he had large monthly payrolls. Johnson successfully obtained three loans. On the loan applications, Johnson provided false and fraudulent representations concerning the financial condition of his companies and the intended purposes for the loans.
The top count carries a maximum penalty of 30 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
IRS-CI is investigating the case. Fraud Section Senior Litigation Counsel John Michelich is prosecuting the case.
United States v. Samuel Yates
On Sept. 8, Samuel Morgan Yates, 35, of Maud, Texas, was sentenced to 68 months in prison in the Eastern District of Texas prison for a $5.5 million PPP loan fraud scheme.
According to court document, Yates made two fraudulent applications to two different lenders for PPP loans guaranteed by the SBA. In one application, Yates sought $5 million in PPP loan proceeds by fraudulently claiming to have over 400 employees with an average monthly payroll of more than $2 million. In the second application, Yates claimed to employ over 100 individuals and was able to obtain a loan of over $500,000. With each application, Yates submitted a list of purported employees that he obtained from a publicly available random name generator online. He also submitted forged tax documents with each application.
The SBA-OIG and U.S. Postal Service, Office of Inspector General (USPS-OIG) investigated the case. Fraud Section Trial Attorney Louis Manzo and Criminal Chief Frank Coan and Assistant U.S. Attorney Jonathan R. Hornok for the Eastern District of Texas prosecuted the case.
United States v. Lisa Hammell
On Aug. 8, Lisa Hammell, 39, of Turnersville, New Jersey, pleaded guilty in the District of New Jersey to conspiracy to defraud the United States and fraud in connection with identification documents as part of a fraudulent COVID-19 vaccination record cards scheme.
According to court documents, from in or around March 2021 to in or around April 2022, Hammell sold fraudulent COVID-19 vaccination record cards that she designed herself. Hammell also printed dozens of fraudulent cards while working at a post office. In total, Hammell sold at least 400 fraudulent COVID-19 vaccination cards.
The top count carries a maximum penalty of five years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The USPS-OIG, FBI, and Department of the Interior, Office of Inspector General (DOI-OIG) are investigating the case. Fraud Section Trial Attorneys Kelly M. Lyons and Darren C. Halverson are prosecuting the case.
United States v. Juan Nava Ruiz and Eric Frank
On June 21, Eric Frank, 48, of Coral Springs, Florida, was sentenced to 24 months in prison, and Juan Nava Ruiz, 46, also of Coral Springs, was sentenced to 22 months in prison in the Southern District of Florida for conspiracy to solicit and receive health care kickbacks.
According to court documents, from in or around December 2018 to in or around June 2020, Frank and Ruiz brokered patient referrals for medically unnecessary genetic testing and respiratory pathogen testing bundled with COVID-19 testing to laboratories in exchange for kickbacks.
The FBI and HHS-OIG investigated the case. Fraud Section Trial Attorney Jamie de Boer prosecuted the case.
United States v. Ranna Shamiya and Jaimi Jansen
On Sept. 28, Ranna Shamiya, 41, of Ukiah, California, and Jaimi Jansen, 40, of Santa Cruz, California, were each sentenced to three years of probation in the Northern District of California to making false statements related to health care matters as part of a COVID-19 health care fraud scheme.
According to court documents, from in or around April 2021 to in or around July 2021, the defendants aided and abetted a scheme by a California-licensed naturopathic doctor to sell homeoprophylaxis immunization pellets and to falsify COVID-19 vaccination cards by making it appear that customers had received U.S. Food and Drug Administration (FDA) authorized vaccines.
The HHS-OIG, FBI, and FDA’s Office of Criminal Investigations (FDA-OCI) investigated the cases. Fraud Section Trial Attorney Babu Kaza and Assistant U.S. Attorneys Katherine Lloyd-Lovett and Kristina Green for the Northern District of California prosecuted the cases.
United States v. Scott Davis
On May 27, Scott Davis, 46, of Harris County, Texas, pleaded guilty in the Southern District of Texas to wire fraud as part of a scheme to fraudulently obtain $3.3 million in PPP funds.
According to court documents, from in or around April 2020 to in or around May 2020, Davis submitted three PPP loan applications fraudulently representing that three of his fake business entities had 113 employees and monthly payroll of $233,469; 87 employees and monthly payroll of $387,000; and 138 employees and monthly payroll of $718,256, respectively.
Davis faces a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI and SBA-OIG are investigating the case. Fraud Section Trial Attorney Edward Emokpae is prosecuting the case.
United States v. Gustavo Geraldes
On April 28, Gustavo Geraldes, 39, of Miami, Florida, pleaded guilty in the Southern District of Florida to conspiracy to offer and pay healthcare kickbacks as part of a COVID-19 health care fraud scheme.
According to court documents, from on or about Oct. 27, 2020, to on or about Nov. 30, 2020, Geraldes conspired to pay kickbacks to an intermediary who arranged for telemedicine providers to authorize medically unnecessary genetic testing orders for tests to be performed at laboratories owned by Geraldes. The scheme exploited temporary amendments to telehealth restrictions enacted during the COVID-19 pandemic, which were intended to expand access to care for Medicare recipients by making it easier for beneficiaries to receive necessary medical care from home. Geraldes and his co-conspirators took advantage of these waivers by using telehealth providers to authorize thousands of medically unnecessary genetic test orders.
Geraldes faces a maximum penalty of 5 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The HHS-OIG and FBI are investigating the case. Fraud Section Trial Attorney Ligia Markman is prosecuting the case.
United States v. Darrell Thomas, et al.
Between Jan. 4, 2021, and Aug. 31, 2022, 13 defendants were sentenced and another five pleaded guilty in the Northern District of Georgia for their roles in a scheme to fraudulently obtain over $12 million in PPP and EIDL funds.
According to court documents, from in or around April 2020 through in or around August 2020, the defendants and their co-conspirators submitted at least 14 fraudulent loan applications totaling more than $14.7 million, including approximately $11.1 million in fraudulent PPP loans, more than $1.15 million in fraudulent EIDL loans, and more than $2.4 million in fraudulent automobile loans. In the loan applications, the conspirators fraudulently certified that each applicant business was in operation on Feb. 15, 2020, and had employees for whom it paid salaries and payroll taxes or that it paid independent contractors; that the funds would be used to retain workers and maintain payroll or to make mortgage interest payments, lease payments, and utility payments; and that the information provided in the application and in all supporting documents was true and accurate in all material respects. In the PPP loan applications, each business reported that it had approximately 60 employees and approximately $300,000 in average monthly payroll expenses, when, in fact, most of the businesses existed only largely on paper. To support these payroll figures, each business’s loan application was accompanied by a fraudulent IRS Form 941.
After the PPP loan proceeds were deposited into the businesses’ accounts, the conspirators distributed the funds through a series of transactions that were devised to disguise the origins of the funds and how the funds were spent. The conspirators used the PPP loan proceeds to purchase, among other things, luxury goods, including two Range Rovers, an Acura NSX, and a Mercedes Benz S-Class S65 AMG.
The following 12 defendants were sentenced:
Darrell Thomas, 36, of Johns Creek, Georgia, was sentenced to 15 years in prison.
Charles Petty, aka Charles Knight, 49, of Stone Mountain, Georgia, was sentenced to three years and 10 months in prison.
Khalil Gibran Green Sr., 47, of Cleveland, Ohio, was sentenced to three years and five months in prison.
Bern Benoit, 45, of Burbank, California, was sentenced to two years and three months in prison.
Charmaine Redding, 28, of Macomb, Michigan, was sentenced to two years and three months in prison.
Charles Hill, IV, 46, of Norcross, Georgia, was sentenced to five years of probation, including the first 27 months on home detention.
Andre Lee Gaines, 67, of Dallas, Georgia, was sentenced to five years of probation.
Denesseria Slaton, 53, of McDonough, Georgia, was sentenced to three years and 10 months in prison.
Amanda Christian, 34, of Blythewood, South Carolina, was sentenced to three years and five months in prison.
Derek Parker, 57, of Rochester Hills, Michigan, was sentenced to one year and six months in prison.
Rick McDuffie, 51, of Little Rock, South Carolina, was sentenced to two years in prison.
David Belgrave, 50, of Lexington, South Carolina, was sentenced to nine months in prison.
Ryan Whittley, 35, of South Holland, Illinois, was sentenced to one year and nine months in prison.
The following six defendants pleaded guilty:
Dwan Ashong, aka Dwan Gilpin, 41, of Jacksonville, Florida, pleaded guilty to conspiracy to commit money laundering.
El Hadj Sall, 40, of Jacksonville, Florida, pleaded guilty to conspiracy to commit wire fraud.
Megan Thomas, 33, of Alpharetta, Georgia, pleaded guilty to conspiracy to commit wire fraud.
Ricky Dixon, 53, of Warren, Michigan, pleaded guilty to aggravated identity theft and conspiracy to commit money laundering.
Jesika Blakely, 34, of Atlanta, Georgia, pleaded guilty to conspiracy to commit money laundering.
The FBI, IRS-CI, and TIGTA are investigating these cases. Fraud Section Trial Attorney Siji Moore and Assistant U.S. Attorneys Tal Chaiken and Nathan Kitchens for the Northern District of Georgia are prosecuting the cases.
The top count carries a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Fraud Section leads the Criminal Division’s efforts to combat fraud related to the COVID-19 pandemic, particularly with respect to the resources made available by Congress through the CARES Act for programs including the PPP, the EIDL, and the Provider Relief Fund. Since the CARES Act passed, Fraud Section attorneys have prosecuted more than 192 defendants in more than 121 criminal cases related to CARES Act programs and funds. The Fraud Section has also seized more than $78 million in cash proceeds derived from CARES Act-related fraud schemes, as well as numerous real estate properties and luxury items purchased with such proceeds. More information can be found at https://www.justice.gov/criminal-fraud/ppp-fraud.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Information about fake CDC COVID-19 vaccination cards can be reported to HHS-OIG by calling 1-800-HHS-TIPS or 1-800-447-8477. Anyone with information about allegations of fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.