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13 October 2022
Rapid City Man Indicted on Drug and Firearm Ammunition ChargesRead the Press Release
SIOUX FALLS - United States Attorney Alison J. Ramsdell announced that a Rapid City, South Dakota, man has been indicted by a federal grand jury for Possession of Ammunition by a Prohibited Person and Possession with Intent to Distribute a Controlled Substance.
Travis Maho, age 34, was indicted in September of 2022. He appeared before U.S. Magistrate Judge Daneta Wollmann on October 7, 2022, and pleaded not guilty to the Indictment.
The maximum penalty upon conviction is up to 20 years in custody and/or a $1,000,000 fine, lifetime supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
In June of 2022, in Rapid City, Maho, a previously convicted felon who is prohibited from possessing firearms and ammunition, possessed several types of firearm ammunition as well as methamphetamine, which was found after Maho came into contact with law enforcement.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The charges are merely an accusation and Maho is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Alcohol, Tobacco, and Firearms and the Rapid City Police Department. Assistant U.S. Attorney Benjamin Patterson is prosecuting the case.
Maho was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Purported Orthodox Christian Monk and General Counsel for Monastic Institute Arrested for $3.6 Million COVID Fraud SchemeRead the Press Release
BOSTON – A Marblehead man and woman were arrested today in connection with their alleged submission of fraudulent applications for Coronavirus Aid, Relief, and Economic Security (CARES) Act funds for several purported non-profit religious organizations and related businesses they controlled.
Brian Andrew Bushell, 47, and Tracey M.A. Stockton, 64, were charged with conspiracy to commit wire fraud and unlawful monetary transactions. Bushell and Stockton will appear in federal court in Boston today at 1:15 p.m.
According to the charging documents, Bushell – a purported Orthodox Christian monk who presented himself as “Father” and “Rev. Fr.” Bushell or Andrew – controlled several Marblehead-based organizations, including an Orthodox Christian charitable foundation (St. Paul’s Foundation); a “monastic house” (Shrine of St. Nicholas the Wonderworker, Patron of Sailors, Brewers & Repentant Thieves); a purported residence for clergy (Annunciation House); a monastic brewery (Marblehead Brewing Co.); and a craft saltern (Marblehead Salt Co.). Stockton, a Massachusetts attorney, served as general counsel and authorized representative of these organizations. Bushell and Stockton resided together at a Marblehead residence that they called Annunciation House.
Shortly after CARES Act funds became available in April 2020, Bushell, with Stockton’s assistance, allegedly began submitting numerous applications to the Small Business Administration (SBA) to receive Economic Injury Disaster Loans (EIDLs) for the organizations that he controlled. It is alleged that in the applications, Bushell vastly overstated the organizations’ 2019 operational expenses for the purpose of obtaining larger loan amounts. In support of the applications to the SBA, Bushell and Stockton allegedly submitted false documents, such as income statements, that fabricated the organizations’ revenues and expenses. As a result of their alleged misrepresentations on these applications and in subsequent loan increase requests, Bushell and Stockton obtained $3.5 million in EIDL funds for St. Paul’s, St. Nicholas, Annunciation House and Marblehead Salt.
According to the charging documents, Bushell and Stockton also submitted numerous applications for Paycheck Protection Program (PPP) funds for Bushell’s organizations. In supporting documentation for the applications as well as in correspondence with PPP lenders, Bushell and Stockton allegedly inflated the number of employees and the amount of payroll expenses that each borrower organization had. For instance, with respect to several applications, it is alleged that Bushell and Stockton listed, as employees, at least eight individuals who were never employed by any of Bushell’s organizations. As a result of their misrepresentations on these applications and related submissions, Bushell and Stockton obtained an additional $146,608 in PPP funds.
“We allege that these two individuals engaged in brazen, criminal behavior that took advantage of our government’s efforts to rescue organizations—both for-profit and non-profit— by assisting with specific, legitimate expenses during the global pandemic,” said United States Attorney Rachael S. Rollins. “Pandemic relief funds are not “free money” – they are a lifeline designed to help business owners and non-profit leaders experiencing real economic hardship. Our government should not and will not foot the bill for fancy designer handbags and lavish lifestyles. Hard-working people deserve these funds.”
“Today, we arrested a purported Orthodox Christian monk and his attorney for misdirecting millions of dollars in federal emergency assistance from businesses struggling to survive, to line their own pockets for their own personal enrichment. We believe they clearly knew that what they were doing was wrong, but they did it anyway, spending tens of thousands of dollars on exclusive memberships, expensive wine, property, renovations, and even a $40,000 wristwatch,” said Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “Their alleged greed is an affront to every hard-working taxpayer, and during these challenging times where scammers are doing everything they can to defraud people of their hard-earned money, the FBI is doing everything we can to make sure they don’t succeed.”
“The VA Office of Inspector General is a proud partner of the PRAC Fraud Task Force,” said Special Agent in Charge Christopher Algieri of the VA Office of Inspector General’s Northeast Field Office. “We will continue to work with our law enforcement partners to investigate allegations of fraud in government programs intended to provide relief to those impacted by the pandemic.”
The charging documents allege that, upon receiving EIDL and PPP funds, Bushell and Stockton used those funds on expenses that would not have been permitted under either program, even had the funds been obtained lawfully. Specifically, Bushell and Stockton allegedly spent over $1 million of the CARES Act proceeds for extensive renovations to two Marblehead properties they planned to develop into a monastic complex that featured a chapel, brewery, beer garden, approximately $90,000 in audio video system equipment and nearly $40,000 in antique furniture. They also purchased a new residential property and various fixtures, furnishings, and equipment for their various properties. Bushell, who claimed to have taken a vow of poverty, also allegedly used fraudulently obtained CARES Act funds to purchase over $40,000 in Swiss watches, a nearly $7,000 Goyard designer handbag for Stockton, $2,400 on items from Hermès and other luxury goods.
The charge of conspiracy to commit wire fraud provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000, or twice the gross gain or loss from the scheme, whichever is greater. The charge of conspiracy to commit unlawful monetary transactions provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000, or twice the value of the criminally derived property. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
U.S. Attorney Rollins, FBI SAC Bonavolonta and VA-OIG SAC Algieri made the announcement today. Valuable assistance was provided by the Marblehead Police Department. Assistant U.S. Attorney David M. Holcomb of Rollins’ Securities, Financial & Cyber Fraud Unit and Assistant U.S. Attorney Carol Head, Chief of Rollins’ Asset Recovery Unit, are prosecuting the case.
This case was investigated in connection with the Pandemic Response Accountability Committee (PRAC) Fraud Task Force, which was established to promote transparency and coordinate oversight of the federal government’s COVID-19 pandemic response. The PRAC brings together federal agents from 14 agency Inspector Generals to detect fraud, waste, abuse, and mismanagement in the more than $5 trillion in authorized COVID-19 funds.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The details contained in the charging documents are allegations. Each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Pinellas Man Arrested on Nine-Count Indictment for Firearm and Narcotics OffensesRead the Press Release
Tampa, FL – United States Attorney Roger B. Handberg announces the return of an indictment and arrest of Derrick Evans (44, St. Petersburg) for seven counts of possessing with the intent to distribute narcotics, one count of carrying a firearm in furtherance of a drug trafficking crime, and one count of possessing a firearm as a convicted felon. If convicted of the narcotics offenses, Evans faces a maximum penalty of 20 years on each count. If convicted of the carrying a firearm in furtherance of a drug trafficking crime count, Evans faces a consecutive 5 years’ imprisonment. If convicted of the felon in possession of a firearm offense, Evans faces a mandatory minimum penalty of 15 years, and up to, life in federal prison. The indictment also notifies Evans that the United States intends to forfeit the firearms recovered in this investigation.
According to the indictment, on multiple occasions between February 25 and May 6, 2022, Evans possessed with the intent to sell or deliver cocaine. On May 6, 2022, Evans possessed a firearm in furtherance of his drug trafficking activity. As a result of his multiple prior convictions, including attempted first-degree murder, Evans is prohibited from possessing firearms or ammunition under federal law.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case 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.
This case was investigated by the Pinellas Park Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It will be prosecuted by Assistant United States Attorney Samantha Beckman.
Philadelphia Man Indicted for Firearms and Narcotics TraffickingRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Nicholas Kirby, 45, of Philadelphia, PA, was arrested and charged by Indictment with multiple firearms and narcotics offenses related to his trafficking in those items. Specifically, the defendant is charged with one count of dealing in firearms without a license, four counts of possession of a firearm by a felon, five counts of distribution of fentanyl, and one count of possession with intent to distribute fentanyl.
The Indictment alleges that Kirby illegally sold five semiautomatic rifles in separate instances between January 25 through March 14, 2022. The Indictment further alleges that the defendant had been previously convicted of a felony before he possessed each of the firearms that he sold to others. Finally, the Indictment alleges that Kirby distributed fentanyl on five separate occasions between February 2, 2022, and March 10, 2022, and was found in possession of fentanyl with the intent to distribute it on March 14, 2022.
“Our Office is committed to prosecuting those who commit violent crimes including illegally trafficking firearms and narcotics like fentanyl, both potentially lethal commodities,” said U.S. Attorney Romero. “In this case, a Nicholas Kirby allegedly illegally possessed and sold firearms, and possessed and distributed fentanyl, which presents a clear danger to our community which is struggling under a surge of violent gun crime and overdose deaths.”
“This investigation is the result of law enforcement partners coming together for a common goal – to investigate individuals who illegally possess firearms,” said Matthew Varisco, Special Agent in charge of ATF’s Philadelphia Field Division. “As the indictment alleges, this defendant could have endangered the lives of countless citizens by illegally putting guns onto our already gun-flooded streets. This indictment is the result of the hard work of our investigators, our partners with the DEA, and the U.S. Attorney’s Office.”
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
If convicted, the defendant faces a maximum possible sentence of 165 years in prison.
The case was investigated by the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Philadelphia Police Department, and is being prosecuted by Assistant United States Attorney Thomas M. Zaleski.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Omaha Man Sentenced for Methamphetamine and Firearm ConvictionsRead the Press Release
Acting United States Attorney Steven Russell announced that Dontevis Morrow, 31, of Omaha, Nebraska, was sentenced on October 12, 2022, in federal court in Omaha for possession with intent to distribute methamphetamine and felon in possession of a firearm. United States District Judge Brian C. Buescher sentenced Morrow to 130 months’ imprisonment. There is no parole in the federal system. After his release from prison, Morrow will begin a four-year term of supervised release.
On September 14, 2020, Morrow sold a .45 caliber Derringer handgun to a cooperating witness working with law enforcement. Morrow is a convicted felon prohibited under federal law from possessing firearms. A grand jury indicted Morrow in March 2021, and a warrant was issued for his arrest.
On February 2, 2022, Omaha police stopped a vehicle travelling on Fort Street with a non-functional brake light. Officers determined Morrow was driving with a suspended license and also had a federal warrant for his arrest related to the indictment. Morrow consented to a search of his person and it was found he had a bag of methamphetamine in his pant leg. Laboratory testing confirmed the bag contained 56.482 grams of methamphetamine.
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.
This case was investigated by the Omaha Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Okeechobee County Man Sentenced to Prison for Illegal Firearm PossessionRead the Press Release
MIAMI – Mitchell A. Ellis, 34, of Okeechobee County, Fla., was sentenced on October 12 by U.S. District Judge Aileen M. Cannon to 16 months in prison for illegally possessing a firearm as a convicted felon. He also was ordered to pay a $10,000 fine.
According to court records, on September 21, 2021, at approximately 12:15 a.m., Ellis led law enforcement on a high-speed chase on his motorcycle through the downtown area of Okeechobee. He exceeded 100 mph, failed to stop at several stop signs, and rode against oncoming traffic–all while armed with a loaded firearm. He ultimately crashed his motorcycle and was thrown from his seat while attempting to flee across an empty field. A loaded Rossi .38 caliber revolver was located on the sidewalk a few feet from where the motorcycle crashed. Ellis, a convicted felon, is prohibited by federal law from possessing firearms.
Juan Antonio Gonzalez, U.S. Attorney for the Southern District of Florida; Christopher A. Robinson, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Division, and Okeechobee City Chief of Police Donald Hagan made the announcement.
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Division, and the Okeechobee City Police Department investigated the case. Assistant U.S. Attorney Michael D. Porter prosecuted the case. Assistant U.S. Attorney Daren Grove is handling asset forfeiture.
This case stems from Project Safe Neighborhoods (PSN), a program that brings together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. In 2017, PSN was reinvigorated as part of the Justice Department’s renewed focus on targeting violent criminals. All U.S. Attorney’s Offices were directed to work in partnership with federal, state, local, and tribal law enforcement, and the local community to develop effective, locally based strategies to reduce violent crime.
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 21-cr-14038.
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North Carolina Tax Return Preparer Pleads Guilty to Aiding in the Preparation of a False Tax ReturnRead the Press Release
GREENSBORO, NC – A Durham woman pleaded guilty on October 12, 2022, to the charge of aiding and assisting in the filing of a false tax return, announced U.S. Attorney Sandra J. Hairston of the Middle District of North Carolina and Special Agent in Charge Donald “Trey” Eakins of IRS-Criminal Investigation, Charlotte Field Office.
According to court documents, Amanda Caldwell willfully aided and assisted in the preparation of false tax returns filed with the Internal Revenue Service. Caldwell worked at Tax Time Solutions, LLC, located in Durham, North Carolina as a tax return preparer along with Whitney Danielle Sales and Janelle Marie Corley. Tax Time Solutions, LLC was owned by Sales.
Sentencing is scheduled to take place on February 22, 2023, at 2:00 p.m. in Winston-Salem, North Carolina, before United States District Court Judge Thomas D. Schroeder. At sentencing, Caldwell faces a maximum sentence of three years in prison, a period of supervised release of up to one year, and monetary penalties.
Sales and Corley previously pleaded guilty to conspiring to defraud the United States in connection with a scheme to file false tax returns that resulted in an intended tax loss of over $1.5 million. On July 29, 2022, Senior United States District Court Judge N. Carlton Tilley, Jr. sentenced Sales to 30 months of imprisonment. On August 5, 2022, Judge Tilley sentenced Corley to 24 months of imprisonment. In addition to the terms of imprisonment, Sales and Corley were also sentenced to a period of supervised release and restitution.
Agents with the Criminal Investigation division of the Internal Revenue Service investigated the case. The case is being prosecuted by Assistant U.S. Attorney Ashley Waid.
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New Orleans Woman Pleads Guilty to Identity TheftRead the Press Release
NEW ORLEANS - U.S. Attorney Duane A. Evans announced today that RAYCHAEL DEPLAND, age 33, of New Orleans, plead guilty today to Identity Theft, in violation of Title 18, United States Code, Section 1028(a)(7).
According to documents filed in federal court, DEPLAND, while working at University Medical Center in New Orleans as a patient access representative, sent personal information of UMC patients to Acia Gray who, along with others, used this information in a check cashing scheme at Wal-Mart stores, primarily in Texas. Gray and other members of this check cashing scheme were charged and convicted of Conspiracy to Commit Wire Fraud in violation of Title 18, United States Code, Sections 1343 and 1349 in the United States District Court for the Eastern District of Texas, and Gray received a sentence of fifty-seven (57) months imprisonment.
DEPLAND faces a maximum penalty of five (5) years imprisonment, followed by up to three (3) years of supervised release, a fine up to $250,000.00, and a mandatory $100 special assessment fee.
Sentencing in this matter is scheduled for March 2, 2023 before Chief United States District Judge Nannette Jolivette Brown.
The U.S. Attorney’s Office would also like to acknowledge the assistance of the United States Department of Treasury, Inspector General for Tax Administration, in investigating this matter. The prosecution of this case is being handled by Assistant U.S. Attorney Brian M. Klebba, Chief of the Financial Crimes Unit.
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New Mexico Man Sentenced to 30 Months in PrisonRead the Press Release
SOUTH BEND – Joshua L. Metts, age 41, of Albuquerque, New Mexico, was sentenced by United States District Court Judge Damon R. Leichty on his plea of guilty to being a felon in possession of a firearm, announced United States Attorney Clifford D. Johnson.
Metts was sentenced to 30 months in prison followed by 2 years of supervised release.
According to documents in the case, in October 2021, the staff at the Four Winds Casino in South Bend found a baggie of methamphetamine, cocaine, and fentanyl that Metts had dropped in the casino. The next day, Metts returned to the casino and was arrested by Pokagon Tribal Police. Tribal police searched Metts’ vehicle in the parking lot and found a loaded handgun and ammunition along with a small baggie of methamphetamine, syringes, and a tablespoon with fentanyl residue. Metts has a prior federal felony conviction out of the District of New Mexico, and as such is prohibited from possessing a firearm or ammunition.
“Metts’ sentence demonstrates that crimes committed on federally recognized Indian tribal land, held in trust for the Pokagon Band of Potawatomi Indians, will be prosecuted,” said United States Attorney Clifford D. Johnson. “The United States recognizes an obligation of service to tribal communities across the country, and it holds a strong commitment to supporting and furthering public safety on all tribal land. My Office has an important relationship with the Pokagon Band and is committed to working with them to foster public safety and the safety of its tribal citizens, while respecting the Pokagon Band’s sovereignty and culture.”
“The conviction of Joshua Metts is a great example of teamwork between the Pokagon Band Tribal Police and the U.S. Attorney’s Office,” said William Lux, Chief of Police, Pokagon Band of Potawatomi Tribal Police. “The Pokagon Band of Potawatomi Indians is a federally-recognized sovereign nation that is committed to working with our law enforcement partners within the Department of Justice to protect all who visit the Tribe’s trust land and to prosecute those who violate the law on Pokagon land.”
This case was investigated by the Federal Bureau of Investigation and the Pokagon Tribal Police Department. The case was prosecuted by Assistant United States Attorneys Luke N. Reilander and Jerome W. McKeever.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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Monongalia County man sentenced for failure to register chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Jason Steven Kokinda, of Westover, West Virginia, was sentenced today to 63 months of incarceration for a failure to register charge, United States Attorney William Ihlenfeld announced.
After a three-day trial in October 2021, Kokinda, 43, was found guilty of one count of “Failure to Update Sex Offender Registry.” Kokinda, who was previously convicted of sex offenses against children and child pornography charges, failed to update his sex offender registration after traveling from Vermont and New Jersey to West Virginia in August 2019.
Assistant U.S. Attorneys Brandon S. Flower and Sarah E. Wagner prosecuted the case on behalf of the government. The U.S. Marshals Service, the West Virginia State Police, and the Elkins Police Department investigated.
Chief U.S. District Judge Thomas S. Kleeh presided.
Milwaukee Public Relations Firm to Pay $2.25 Million to Resolve Allegations It Wrongfully Received a Paycheck Protection Program LoanRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that on October 13, 2022, BVK, Inc., agreed to pay $2.25 million to settle a claim arising from its participation in the Small Business Administration’s second-draw Paycheck Protection Program (“PPP”) loan program.
Congress created the PPP loan program in March 2020 in an effort to provide emergency financial assistance to Americans suffering from the economic effects of the COVID-19 pandemic. Under the PPP, eligible businesses could receive loans guaranteed by the SBA and, if the business spent the loan proceeds on qualified expenses, SBA would repay the loan on the borrower’s behalf.
In December 2020, Congress authorized certain borrowers who received an earlier PPP loan to obtain an additional “second-draw” loan. The second-draw loans included additional eligibility requirements, including a rule that any organization required to register with the Attorney General under the Foreign Agents Registration Act (“FARA”) was not permitted to receive a second-draw loan. A FARA registration obligation is triggered by certain work performed on behalf of foreign governments.
BVK is a public relations firm with its primary office in Milwaukee, Wisconsin. BVK received both a first and second draw PPP loan. The government alleges that at the time BVK applied for the second-draw loan, it was performing public relations work on behalf of the Dominican Republic Ministry of Tourism. According to the government, this work triggered a FARA-registration obligation, which in turn rendered BVK ineligible for a second-draw PPP loan. However, BVK applied for and received a $2 million second-draw loan, which SBA later repaid. BVK’s loan application did not disclose its FARA-registration obligation.
The government’s investigation resulted from a whistleblower complaint filed under the qui tam provisions of the False Claims Act. The whistleblower will receive a share of the settlement. This case is pending as United States ex rel. GNGH 2, Inc. v. Birdsall Voss & Associates, Inc., No. 21-c-1437.
Assistant United States Attorney Carter Stewart represented the government in this matter. The settlement agreement states allegations only; BVK does not admit liability for the allegations.
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Member of Bristol, Virginia Methamphetamine Drug Ring SentencedRead the Press Release
ABINGDON, Va. – A Bristol, Virginia woman, who conspired with others to traffic methamphetamine from multiple states into Southwest Virginia, was sentenced this week to 156 months in federal prison for her role in the conspiracy.
Natasha Wallace, 42, pleaded guilty in June 2022 to conspiracy to distribute and possession with the intent to distribute 50 grams or more of crystal methamphetamine. Court records show that Wallace admitted to personally trafficking more than 10 kilograms of methamphetamine from Houston, Texas, and that her illicit distribution activities continued even after her co-conspirators were arrested. When arrested in May 2021, Wallace was discovered in possession of over 120 grams of 99% pure methamphetamine.
In a related hearing last week, Jason Eric Leab, 44, of Bristol, Virginia, was sentenced to 60 months in prison for possessing with the intent to distribute and distributing 50 grams or more of substance containing methamphetamine throughout Southwest Virginia.
Wallace and Leab each admitted to conspiring with others, including Joshua Desorcy, Paul Crone, and Marissa Wise, to traffic methamphetamine sourced in Mexico from known Mexican cartel members and shipped through Atlanta, Georgia and Houston, Texas into Southwest Virginia. As the ringleader of this drug trafficking conspiracy, Desorcy directed the wiring of funds to various recipients in Mexico and has been sentenced to 40 years in prison.
United States Attorney Christopher R. Kavanaugh of the Western District of Virginia, Charlie J. Patterson, Special Agent in Charge of ATF’s Washington Field Division, and Special Agent in Charge Jarod Forget of the DEA’s Washington Division made the announcement.
The Drug Enforcement Administration as well as the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case.
Assistant U.S. Attorney Daniel J. Murphy prosecuted the case.
Marathon County Woman Sentenced to 66 Months for Methamphetamine DistributionRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Sarah Waggoner, 41, Birnamwood, Wisconsin was sentenced yesterday by U.S. District Judge William M. Conley to 66 months in federal prison for distributing 50 grams or more of methamphetamine. This prison term will be followed by 5 years of supervised release. Waggoner pleaded guilty to this charge on July 21, 2022.
In April 2021, law enforcement used a confidential informant to purchase methamphetamine from Waggoner. Law enforcement officers subsequently arranged for two additional controlled buys of methamphetamine from her, including one purchase of over 50 grams of methamphetamine. In September 2021, officers executed a search warrant at her residence, where they located over 1,000 grams of methamphetamine hidden throughout the property. Waggoner admitted in a statement to police to buying and selling multiple pounds of methamphetamine.
Waggoner is currently serving a term of imprisonment for Wisconsin convictions involving distribution of methamphetamine. The sentence in the federal case will be served concurrently with the remainder of the defendant’s state sentence.
In sentencing Waggoner, Judge Conley credited the defendant for assisting law enforcement in the search of her property. Judge Conley stated that a sentence slightly above the mandatory minimum sentence of 5 years was warranted, however, due to the “stunning” amount of methamphetamine the defendant admitted to distributing.
The charge against Waggoner was a result of an investigation conducted by the Wisconsin Department of Justice Division of Criminal Investigation; Central Wisconsin Drug Task Force; Wausau Police Department; and Federal Bureau of Investigation. The prosecution of this case has been handled by Assistant U.S. Attorney Taylor L. Kraus.
Man Who Filled Car with Fake Explosives Sentenced to 7 Years for CarjackingRead the Press Release
A man who packed a stolen car with fake explosives and fake law enforcement credentials was sentenced today to seven years in federal prison for carjacking, announced U.S. Attorney for the Northern District of Texas Chad E. Meacham.
Aaron Lee Oehlschlager, 55, pleaded guilty in June to carjacking and possession of a forged seal of an agency of the United States. He was sentenced Thursday by U.S. District Judge Jane J. Boyle.
According to plea papers, Mr. Oehlschlager admits he carjacked a woman at gunpoint outside a Dallas hotel around 5:00 p.m. on September 27, 2019. The defendant produced a Sig Sauer 9mm handgun with a fake silencer attached to it and demanded the victim’s car keys. The victim complied.
According to court documents, law enforcement located the vehicle, a Kia Soul owned by Hertz, in a parking garage in Grapevine six months later. The car was later towed to a Hertz maintenance lot near DFW Airport where it sat until June 2020, when a rental car employee entered the vehicle to clean it. Inside, he observed what appeared to be an improvised explosive device (IED).
DFW Airport police responded and evacuated the area. FBI Dallas Bomb Squad later discovered the bomb was inert.
A further search of the vehicle revealed a second inert IED, fake FBI credentials, a fake search warrant, a black backpack bearing the defendant’s son’s name, and various other items.
At Thursday’s sentencing hearing, prosecutors stated that the carjacking appeared to be the first step in a larger plot by Mr. Oehlschlager that involved the use of fake explosive devices, masks, bolt cutters, handcuffs, zip-ties, stun guns, and tasers.
The Federal Bureau of Investigation’s Dallas Field Office conducted the investigation with the assistance of the DFW International Airport Police and the Dallas Police Department. Assistant U.S. Attorneys Joshua D. Detzky and George Leal prosecuted the case.
Man Sentenced for Violent Threats to State and Federal Elected OfficialsRead the Press Release
NEWPORT NEWS, Va. – A Newport News man was sentenced today to 41 months in prison for making more than 60 threats to murder, rape, torture, and otherwise harm state and federal elected officials, including numerous members of Congress and a former President of the United States.
According to court documents, Steve Cochran, 43, repeatedly threatened to murder, kidnap, torture, and/or rape elected officials and their loved ones. The threats were often highly graphic, expressed in unconditional language, and intended to influence the recipient to change his or her political views. For example, Cochran threatened to shoot a U.S. Senator. Cochran added that this was “not a threat” – it was a “guarantee.” He also threatened a Governor repeatedly that he would not “live past August” and his “wife and kids are in imminent danger.”
Cochran is a two-time convicted felon. He has prior felony convictions for unauthorized use of a motor vehicle and burglary with intent to commit larceny. Cochran also has an assault conviction stemming from repeated threats to kill his spouse.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after sentencing by Senior U.S. District Judge Raymond A. Jackson.
Assistant U.S. Attorney D. Mack Coleman prosecuted the case.
This investigation was conducted by the FBI’s Peninsula Safe Streets Task Force and U.S. Capitol Police. The Florida Department of Law Enforcement also assisted. The Peninsula Safe Streets Task Force is a partnership that includes the FBI, Virginia State Police, Hampton Police Division, James City County Police Department, Newport News Police Department, and United States Postal Inspection Service. This task force investigates the most violent criminal enterprises operating on the Virginia Peninsula. Tips regarding gang activity and other violent crimes in the region can be reported to the FBI at 1-800-CALL-FBI or www.fbi.gov/tips.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:22-cr-7.
Man Pleads Guilty to 2021 Bartlesville MurderRead the Press Release
A man pleaded guilty Wednesday in federal court for killing his girlfriend at a Bartlesville motel.
“Koalton Ellis maliciously took the life of Buffie Raulston in a fit of anger in 2021. He will now spend time in federal prison to account for his crime,” said U.S. Attorney Clint Johnson.
Koalton Brynn Ellis, 30, pleaded guilty to second degree murder in Indian Country. In his plea agreement, Ellis admitted that he repeatedly stabbed the victim, resulting in her death.
On July 24, 2021, the Bartlesville Police Department received a 911 call at 11:07 am regarding the stabbing of a female victim at a Bartlesville motel. Upon arrival, first responders located the victim, and she told them that Koalton Ellis had stabbed her. She was then transported to the hospital and eventually passed away due to her injuries on Aug. 12, 2021.
Dispatch also received a call from an unknown male who reported the suspect of the stabbing was hiding behind a wooden fence near a local tire shop. The suspect was located, taken into custody and identified as Ellis. Officers reported that Ellis was sweating profusely and appeared to be under the influence of drugs.
At the hotel, a witness reported seeing Ellis and the victim arguing then Ellis making some sort of punching or stabbing motions against the victim. The witness also recognized Ellis as the man who had been staying in the same room as the victim.
Finally, surveillance video recovered at the motel showed Ellis and the victim walking out of their motel room, having a conversation. Ellis walked to the parking lot then returned to the room. Shortly after, Ellis left his room and began knocking on and kicking on a nearby motel door. The victim then appeared to talk to Ellis as he was kicking the door and placed herself between the defendant and the door, trying to calm him down. Ellis then retrieved a knife from his pocket and stabbed the victim in the neck. She collapsed to the ground, and the defendant continued to stab her until she lay motionless. Video then showed Ellis fleeing the scene.
The FBI and Bartlesville Police Department conducted the investigation. Assistant U.S. Attorney Gina S. Gilmore is prosecuting the case.
Luzerne County Man Indicted for Distributing Controlled Substances Resulting in DeathRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Roger Joseph Kapinsky, age 42, of Wilkes-Barre, Pennsylvania, was indicted on October 11, 2022, by a federal grand jury and charged with the distribution of controlled substances resulting in death.
According to United States Attorney Gerard M. Karam, the indictment charges Kapinsky with the distribution of fentanyl, a Schedule II controlled substance, and tramadol, a Schedule IV controlled substance, and death resulted from the use of the substances.
The charges stem from a joint investigation involving the Bureau of Alcohol, Tobacco, and Firearms (ATF) in Scranton and the Kingston Police Department. Assistant United States Attorney Michelle Olshefski is prosecuting the case.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin and fentanyl. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
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.
The maximum penalty under federal law is life in prison, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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Leader of a Conspiracy to Manufacture, Import, and Sell Counterfeit Military Clothing and Gear SentencedRead the Press Release
PROVIDENCE – A Brooklyn, NY, clothing and goods wholesaler who directed the development, manufacture, and importation of $20 million worth of Chinese-made counterfeit U.S. military uniforms and gear that were passed off as genuine American-made products has been sentenced to forty months in federal prison and ordered to forfeit the $20 million in proceeds that he obtained from the sale of the counterfeit goods, announced United States Attorney Zachary A. Cunha.
Ultimately, substandard, counterfeit goods manufactured in China were sold to the U.S. government to be worn or carried by Airmen in the U.S. Airforce. Some of these products lacked crucial safety features or failed to meet safety specifications, endangering the health and safety of the military personnel who wore them. At least 13,332 counterfeit jackets not resistant to enemies’ night vision goggles and 18,597 non-flame resistant hoods were among the counterfeit products that entered the military supply chain destined for U.S. Air Force bases around the world.
Ramin Kohanbash, 52, sentenced on Wednesday to forty months in federal prison, pleaded guilty in June 2019 to conspiracy to commit wire fraud and trafficking in counterfeit goods. Kohanbash will also be required to make restitution to the individual companies victimized by his conduct, including a Rhode Island company that reported a loss of more than $639,000 in profits and significant damage to its relationships with long-standing military clients due to the distribution of counterfeit products distributed by Kohanbash. The specifics of his restitution obligations will be determined at a later date.
“American servicemen and women risk their lives every day in defense of the nation,” said U.S. Attorney Cunha. “But the risks they face should never come from the uniforms they wear, and the equipment they carry. In this case, Defendants’ actions did exactly that, substituting substandard, foreign-made knockoffs for American products. I am tremendously pleased that the defendants charged in this matter are being held accountable for their actions.”
"The Defense Criminal Investigative Service (DCIS), the law enforcement arm of the Department of Defense (DoD) Office of Inspector General, is fully committed to protecting the integrity of the DoD supply chain,” said Patrick J. Hegarty, Special Agent in Charge of the DCIS Northeast Field Office. "Supplying counterfeit products to the DoD endangers the lives of American service members and betrays the public's trust. This investigation and subsequent prosecution demonstrate DCIS' ongoing commitment to working with its law enforcement partners to hold individuals who defraud the DoD accountable."
A co-defendant in this matter, Bernard Klein, 41, of Brooklyn, was sentenced in April 2021 to eighteen months of incarceration to be followed by three years of federal supervised release; ordered to pay a fine of $15,000; and to pay restitution in the amount of $400,000. In tandem with the criminal case, Klein also entered into a civil settlement agreement under which he has paid $348,000 to resolve liability to the United States under the federal False Claims Act for goods sold to certain government purchasers.
A third defendant, Terry Roe, 49, of Burlington, North Dakota, is scheduled to be sentenced on October 20, 2022. He pleaded guilty in February 2022 to conspiracy to commit wire fraud and traffic in counterfeit goods.
According to information provided to the court, Kohanbash worked collaboratively with Roe and Klein to provide samples of actual military uniforms and gear to manufacturers in China, including sample tags and labels that depicted trademarks of fifteen companies who make products for the military in the United States. The Chinese manufacturers then counterfeited the products, tags, and trademarks. The counterfeit products were shipped to Kohanbash’s New Jersey warehouse and sold to the United States military and its suppliers, including a North Dakota supplier where Roe was employed.
According to court filings, Kohanbash and Klein strategized on how to subvert Chinese and American customs to ensure that the counterfeit military uniforms and gear were successfully imported from China into the United States and received at Kohanbash’s New Jersey warehouse. The bogus goods were then sold to the United States military and its suppliers. Additionally, Kohanbash and Roe deceived personnel at military Base Supply Centers by including false certification letters claiming that the goods were manufactured in the United States. U.S. laws require that products sold to the U.S. military and certain other government buyers be manufactured in the United States or certain other designated countries; China is not one of those countries.
The Kohanbash, Klein, and Roe prosecutions are part of a group of parallel criminal and civil enforcement actions undertaken by the United States Attorney’s Office to bring to justice individuals and companies involved in the production, marketing, and sale of counterfeit goods to military and government purchasers.
As part of this effort, the United States has also reached three separate settlements under the federal False Claims Act in connection with this conduct. These civil settlements, with Klein, Kohanbash, and the Dakota Outerwear Company of Minot, ND, have recovered a total of $2,042,398 for these defendants’ roles in a scheme to procure and sell counterfeit, and in some cases, defective and nonconforming goods, to federal purchasers.
The cases were prosecuted by Assistant U.S. Attorneys Sandra R. Hebert, Richard B. Myrus, and Lee H. Vilker.
The matter was investigated by the U.S. Defense Criminal Investigative Service, Northeast Field Office; General Services Administration Office of Inspector General, New England Regional Investigations Office; Army Criminal Investigation Division, Major Procurement Fraud Field Office; the U.S. Air Force Office of Special Investigations, Office of Procurement Fraud Detachment 6, Joint Base Andrews, MD; Homeland Security Investigations, Newark, NJ; and Customs and Border Protection, New York Field Office.
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Kewanee Man Sentenced to 143 months in Prison for Conspiracy to Distribute and Distribution of MethamphetamineRead the Press Release
ROCK ISLAND, Ill. – A Kewanee, Illinois, man, Wesley K. Jacobson, 41, of the 300 block of South Cottage Street, was sentenced today to 143 months’ imprisonment for conspiracy to distribute at least 50 grams of actual methamphetamine and distribution of a mixture and substance containing a detectable amount of methamphetamine.
At the sentencing hearing in front of Chief U.S. District Judge Sara Darrow, the government noted the scourge of methamphetamine within Central District of Illinois communities, particularly in rural areas.
Jacobson entered a plea of guilty in November 2021. The statutory penalties for conspiracy to distribute at least fifty grams of actual methamphetamine are ten years to life imprisonment. Distribution of methamphetamine is punishable by up to life imprisonment.
The Illinois State Police Blackhawk Area Task Force (ISP BATF); Kewanee, Illinois, Police Department; and the Drug Enforcement Administration investigated this case. Assistant U.S. Attorney Jennifer Mathew represented the government in the prosecution.
Kanawha County Woman Ordered to Pay Restitution for Social Security FraudRead the Press Release
CHARLESTON, W.Va. – Melissa Waller, 45, of St. Albans, was ordered today to pay $84,509 in restitution and sentenced to probation for five years, with the first year to be served on home detention, for theft of government benefits.
According to court documents and statements made in court, from June 2012 to April 2020, Waller received $84,509 in Social Security Administration (SSA) benefits on behalf of a deceased relative. Waller admitted that she did not have a legal right to these benefits once her relative died in April 2012. Waller further admitted that she converted the funds to her own use, and that she knew her conduct in taking those benefits was wrong.
United States Attorney Will Thompson made the announcement and commended the investigative work of the SSA and the Social Security Administration-Office of Inspector General (SSA-OIG).
United States District Judge Irene C. Berger imposed the sentence. Assistant United States Attorney Erik S. Goes prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:22-cr-89.
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Kanawha County Man Pleads Guilty to Federal Drug CrimeRead the Press Release
CHARLESTON, W.Va. – Austin Joseph Griffith, 22, of Hernshaw, pleaded guilty today to distribution of 50 grams or more or methamphetamine.
According to court documents and statements made in court, on December 13, 2021, Griffith sold approximately 560 grams of methamphetamine for $4,000 to a confidential informant at his Hernshaw residence.
Griffith is scheduled to be sentenced on February 2, 2023, and faces a mandatory minimum of 10 years and up to life in prison, five years of supervised release, and a $10 million fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Drug Enforcement Administration (DEA).
United States District Judge Judge Irene C. Berger presided over the hearing. Assistant United States Attorney Jeremy B. Wolfe is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:22-cr-147.
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Justice Department, Federal Trade Commission and European Commission Hold Second U.S.-EU Joint Technology Competition Policy DialogueRead the Press Release
The Justice Department’s Antitrust Division Assistant Attorney General Jonathan Kanter, Federal Trade Commission Chair (FTC) Lina M. Khan and Executive Vice President Margrethe Vestager of the European Commission met today in Brussels for the second meeting of the U.S.-EU Joint Technology Competition Policy Dialogue (TCPD). The three leaders met to take stock of the progress made on their cooperation efforts to ensure and promote fair competition in the digital economy, since the agencies launched the TCPD on Dec. 7, 2021.
“The European Commission has been an invaluable partner as the Antitrust Division advances its understanding of the market realities and competition challenges presented by digital markets," said Assistant Attorney General Jonathan Kanter. “We look forward to continued close collaboration as we work to effectively enforce the antitrust laws in our jurisdictions.”
“Dominance in digital markets poses global challenges, which makes global cooperation by antitrust enforcers essential,” said FTC Chair Lina M. Khan. “Deepening our partnership and exchanging insights with our European colleagues can help ensure that our enforcement practices and policies reflect modern market realities. Ultimately, these efforts to promote fair competition in digital markets will benefit consumers, businesses and workers on both sides of the Atlantic.”
“With today’s meeting, we have continued the long standing tradition of close cooperation in competition policy and enforcement between the European Commission and the US competition authorities,” said Executive Vice President Margrethe Vestager. “In the fast evolving technology sector, this cooperation is crucial to achieve a fair and inclusive digital transformation on both sides of the Atlantic.”
The high-level discussion focused on several topics, including the importance of horizon scanning to identify key technologies and issues that may raise competition concerns in the future; the adoption of effective remedies in digital cases; and the forthcoming update to the U.S. Merger Guidelines.
The three agency heads recognized the robust case and policy cooperation between their services both overall and in the digital sector. Throughout the year, several technical meetings took place on various topics in the framework of the TCPD covering both merger and conduct matters. The representatives expressed their appreciation for the constructive exchanges of views on all these activities. The three authorities reiterated the importance of continuing to closely collaborate in the technology sector within the framework of the TCPD.
On Dec. 7, 2021, the Justice Department, the FTC, and the European Commission launched the TCPD to further boost transatlantic cooperation on competition policy and enforcement in the digital sector in light of the common challenges facing the three authorities. Upon its launch, the Commission and U.S. competition agencies issued a statement regarding the TCPD and reaffirming their longstanding tradition of close cooperation on competition matters.
On June 15, 2021, President Biden and the European Commission President Ursula von der Leyen launched the U.S.-EU Trade and Technology Council (TTC). The TTC serves as a forum for the United States and European Union to coordinate approaches to key global trade, economic and technology issues and to deepen transatlantic trade and economic relations based on shared democratic values.
The Justice Department, the FTC, and the European Commission have a longstanding tradition of close cooperation in antitrust enforcement and policy. This cooperation began even before the formal 1991 agreement between the European Commission and the United States regarding the application of their competition laws, subsequently complemented by the 1998 agreement on the application of positive comity principles in the enforcement of their competition laws. In 2011, the three agencies reaffirmed their strong commitment to this mutually beneficial cooperative relationship by adopting Joint Best Practices on Merger Cooperation.
Justice Department files race discrimination and retaliation lawsuit against Bartow CountyRead the Press Release
ATLANTA - The Justice Department announced that it has filed a lawsuit against Bartow County, Georgia, alleging that the County violated Title VII of the Civil Rights Act of 1964 when it subjected former employee Carlen Loyal to a racially hostile work environment, retaliated against former employee Bobby Turner, and fired both men, who are Black. Title VII is a federal statute that prohibits employers from discriminating on the basis of sex, race, color, national origin and religion. Title VII also forbids employers from retaliating against employees for complaining about discrimination in the workplace or otherwise asserting their rights under Title VII.
“No one should be forced to labor in an environment where employers condone racial slurs and employees are expected to tolerate them,” said U.S. Attorney Ryan K. Buchanan. “It is also unacceptable for an employer to foster a work environment where employees with the courage to report such abhorrent behavior experience retaliation from supervisors and face termination of their jobs. Our office will vigorously and continuously leverage our resources to address this type of illegal discrimination in the workplace.”
“No employee should have to endure racial harassment or retaliation in the workplace, especially racial slurs,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Punishing employees for reporting harassment and discrimination to their supervisors is illegal and undermines the basic statutory protections designed to identify and root out racial harassment in workplaces across the country.”
According to U.S. Attorney Buchanan, the charges, and other information presented in court: Loyal was employed at the County’s Road Department for almost 10 years. Loyal’s brother-in-law, Turner, was also employed by the Road Department for several years. In 2019, Loyal complained to his supervisor that a white co-worker sent him a text message referring to him as an “n-word.”
After Loyal’s complaint, the human resources (HR) director called Loyal into his office, where he subjected Loyal to additional, severe racial harassment in front of the employee who sent the racist text message. The HR director also demanded to know whether Loyal had informed anyone else of the text message, and Loyal responded that he had informed Turner. Just over two weeks later, the County accused Loyal and Turner of misconduct and terminated their employment. The complaint alleges that Loyal and Turner, each of whom had been promoted several times, had no prior history of discipline with the County before Loyal complained about race discrimination.
Loyal and Turner filed charges of discrimination with the Equal Employment Opportunity Commission (EEOC). The EEOC’s Atlanta District Office investigated the charges and found reasonable cause that the County violated Title VII. After unsuccessful conciliation efforts, the EEOC referred the charges to the Justice Department.
The United States, through this lawsuit, seeks to require the County to develop and implement policies that would prevent discrimination and retaliation. The United States also seeks monetary relief for Loyal and Turner to compensate them for damages that they sustained as a result of the alleged discrimination and retaliation.
The full and fair enforcement of Title VII is a top priority of the Justice Department’s Employment Litigation Section of the Civil Rights Division. Additional information about the Civil Rights Division and the jurisdiction of the Employment Litigation Section is available on its websites at www.justice.gov/crt/ and https://www.justice.gov/crt/employment-litigation-section.
This case is being handled by Assistant U.S. Attorney Trishanda Treadwell and Senior Trial Attorney Jeremy Monteiro of the DOJ Civil Rights Division’s Employment Litigation Section.
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.
Justice Department Secures Settlement with Maryland Company to Resolve Immigration-Related Discrimination ClaimsRead the Press Release
The Department of Justice today announced that it has secured a settlement agreement with Professional Maintenance Management (PMM), a cleaning and janitorial services company based in Maryland. The settlement resolves the department’s determination that PMM discriminated against its non-U.S. citizen workers when checking their permission to work in the United States, in violation of the Immigration and Nationality Act (INA).
“Employers cannot treat employees differently because of citizenship, immigration status, or national origin when verifying their permission to work,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department will continue to vigorously enforce the law to ensure that workers do not face discrimination when proving their permission to work in the United States.”
The department’s investigation determined that PMM routinely required specific documents from newly-hired non-U.S. citizens to prove they had permission to work in the United States. Specifically, the department found that PMM asked lawful permanent residents to show their permanent resident cards (sometimes known as “green cards”), and asylees and refugees to show their employment authorization documents (sometimes known as “work permits”), to prove their permission to work. At the same time, PMM allowed U.S. citizens to choose from among various acceptable document types.
Under the terms of the settlement, PMM will pay a civil penalty of $300,000 to the United States. Additionally, PMM will train staff on the INA’s anti-discrimination provision, change its policies, and be subject to departmental monitoring for a three-year period.
Federal law allows workers to choose which valid, legally acceptable documentation to present to demonstrate their identity and permission to work, regardless of citizenship, immigration status, or national origin. The INA’s anti-discrimination provision prohibits employers from asking for specific documents because of a worker’s citizenship, immigration status or national origin. Indeed, many non-U.S. citizens, including lawful permanent residents, refugees and asylees, are eligible for several of the same types of documents to prove their permission to work as U.S. citizens (such as driver’s licenses and unrestricted social security cards). Employers should allow workers to present whatever acceptable documentation the workers choose and cannot reject valid documentation that reasonably appears to be genuine.
The Civil Rights Division’s Immigrant and Employee Rights Section (IER) is responsible for enforcing the anti-discrimination provision of the INA. The statute prohibits discrimination based on citizenship status and national origin in hiring, firing or recruitment or referral for a fee; unfair documentary practices; and retaliation and intimidation.
Learn more about IER’s work and how to get assistance through this brief video. Find more information on how employers can avoid discrimination when verifying permission to work on IER’s website. Applicants or employees who believe they were discriminated against based on their citizenship, immigration status, or national origin in hiring, firing, recruitment or during the employment eligibility verification process (Form I-9 and E-Verify); or subjected to retaliation, may file a charge. The public can also call IER’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); email IER@usdoj.gov; sign up for a free webinar; or visit IER’s English and Spanish websites. Subscribe to GovDelivery to receive updates from IER. View the Spanish translation of this press release here.
Justice Department Finds Civil Rights Violations by Orange County, California, District Attorney’s Office and Sheriff’s Department in Use of Jailhouse InformantsRead the Press Release
Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division announced today, based upon a thorough investigation focused on custodial informant activity from 2007 through 2016, that the Orange County District Attorney’s Office and the Orange County Sheriff’s Department operated a custodial informant program that systematically violated criminal defendants’ Sixth Amendment right to counsel and Fourteenth Amendment right to due process of law.
Specifically, the department found reasonable cause to believe that Orange County prosecutors and Sheriff deputies violated the Sixth Amendment by using jailhouse informants to elicit incriminating statements from people who had been arrested, after those individuals had been charged with a crime. The department also found that Orange County prosecutors violated the Fourteenth Amendment by failing to disclose exculpatory evidence about those custodial informants to criminal defendants. The department believes that OCDA and OCSD stopped using informants as agents of law enforcement to obtain statements from charged defendants in the Orange County Jail in 2016.
The Justice Department provided a comprehensive, written report of its investigative findings to the Orange County District Attorney and Sheriff. The report explicitly acknowledges the reforms that the District Attorney’s Office and the Sheriff’s Department have implemented already, and identifies the additional remedial measures that the department believes are necessary to fully address its findings.
“All persons who are accused of a crime are guaranteed basic constitutional protections that are intended to ensure fairness in criminal proceedings and due process of law,” said Assistant Attorney General Kristen Clarke. “Prosecutors and law enforcement officers have an obligation to uphold these rights in their fight against crime and in their pursuit of justice, including in the way that they use custodial informants against criminal defendants. The failure to protect these basic constitutional guarantees not only deprives individual defendants of their rights, it undermines the public’s confidence in the fundamental fairness of criminal justice systems across the county.”
The evidence uncovered by the department reveals that custodial informants in the Orange County Jail system acted as agents of law enforcement to elicit incriminating statements from defendants represented by counsel, and that for years Orange County Sheriff deputies maintained and concealed systems to track, manage, and reward those custodial informants. The evidence also reveals that Orange County prosecutors failed to seek out and disclose exculpatory information regarding custodial informants to defense counsel.
The department opened this investigation in 2016. The department reviewed thousands of pages of documents, conducted numerous site visits and interviewed dozens of witnesses, including Orange County prosecutors. The department also monitored developments in criminal cases, including those that culminated recently. Orange County officials cooperated throughout the investigation.
The Special Litigation Section of the Department of Justice Civil Rights Division in Washington, D.C., conducted the investigation pursuant to the Violent Crime Control and Law Enforcement Act of 1994, which prohibits state and local governments from engaging in a pattern or practice of conduct by law enforcement officers that deprives individuals of rights protected by the Constitution or federal law. The statute allows the department to remedy such misconduct through civil litigation.
The Special Litigation Section will be contacting members of the Orange County community for input on reforms to address the department’s findings. Individuals may also submit recommendations by email at Community.OrangeCountyCA@usdoj.gov.
Information specific to the Civil Rights Division’s Police Reform Work can be found here: /media/872116/dl?inline.
Justice Department Files Race Discrimination and Retaliation Lawsuit Against Bartow County, GeorgiaRead the Press Release
The Justice Department announced today that it has filed a lawsuit against Bartow County, Georgia, alleging that the County violated Title VII of the Civil Rights Act of 1964 when it subjected former employee Carlen Loyal to a racially hostile work environment, retaliated against former employee Bobby Turner, and fired both men, who are Black. Title VII is a federal statute that prohibits employers from discriminating on the basis of sex, race, color, national origin and religion. Title VII also forbids employers from retaliating against employees for complaining about discrimination in the workplace or otherwise asserting their rights under Title VII.
According to the complaint, filed in the U.S. District Court for the Northern District of Georgia, Loyal was employed at the County’s Road Department for almost 10 years. Loyal’s brother-in-law, Turner, was also employed by the Road Department for several years. In 2019, Loyal complained to his supervisor that a white co-worker sent him a text message referring to him as an “n-word.” After Loyal’s complaint, the human resources (HR) director called Loyal into his office, where he subjected Loyal to additional, severe racial harassment in front of the employee who sent the racist text message. The HR director also demanded to know whether Loyal had informed anyone else of the text message, and Loyal responded that he had informed Turner. Just over two weeks later, the County accused Loyal and Turner of misconduct and terminated their employment. The complaint alleges that Loyal and Turner, each of whom had been promoted several times, had no prior history of discipline with the County before Loyal complained about race discrimination.
“No employee should have to endure racial harassment or retaliation in the workplace, especially racial slurs,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Punishing employees for reporting harassment and discrimination to their supervisors is illegal and undermines the basic statutory protections designed to identify and root out racial harassment in workplaces across the country.”
“No one should be forced to labor in an environment where employers condone racial slurs and employees are expected to tolerate them,” said U.S. Attorney Ryan K. Buchanan for the Northern District of Georgia. “It is also unacceptable for an employer to foster a work environment where employees with the courage to report such abhorrent behavior experience retaliation from supervisors and face termination of their jobs. Our office will vigorously and continuously leverage our resources to address this type of illegal discrimination in the workplace.”
Loyal and Turner filed charges of discrimination with the Equal Employment Opportunity Commission (EEOC). The EEOC’s Atlanta District Office investigated the charges and found reasonable cause that the County violated Title VII. After unsuccessful conciliation efforts, the EEOC referred the charges to the Justice Department.
The United States, through this lawsuit, seeks to require the County to develop and implement policies that would prevent discrimination and retaliation. The United States also seeks monetary relief for Loyal and Turner to compensate them for damages that they sustained as a result of the alleged discrimination and retaliation.
The full and fair enforcement of Title VII is a top priority of the Justice Department’s Employment Litigation Section of the Civil Rights Division. Additional information about the Civil Rights Division and the jurisdiction of the Employment Litigation Section is available on its websites at www.justice.gov/crt/ and https://www.justice.gov/crt/employment-litigation-section.
This case is being handled by Senior Trial Attorney Jeremy Monteiro of the Civil Rights Division’s Employment Litigation Section and Assistant U.S. Attorney Trishanda L. Treadwell for the Northern District of Georgia.
Justice Department Awards $17.5 Million to Support Project Safe NeighborhoodsRead the Press Release
The Department of Justice announced today that it has awarded almost $17.5 million in grants to support the Project Safe Neighborhoods Program. Funding will support efforts in jurisdictions across the country to address the epidemic of gun crime and serious violence.
The Bureau of Justice Assistance (BJA), part of the department’s Office of Justice Programs (OJP), will administer the grant awards, which are being made to state and local agencies in partnership with U.S. Attorneys’ Offices.
“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.”
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.
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.
Justice Department Announces $139 Million for Law Enforcement Hiring to Advance Community PolicingRead the Press Release
The Department of Justice today announced more than $139 million in grant funding through the department’s Office of Community Oriented Policing Services (COPS Office) COPS Hiring Program (CHP). The awards provide direct funding to 180 law enforcement agencies across the nation, allowing those agencies to hire 973 additional full-time law enforcement professionals.
“As law enforcement agencies across the nation continue to experience recruitment and retention challenges, we are proud to provide these resources to help alleviate those challenges confronting the profession,” said COPS Office Acting Director Robert Chapman.
CHP is a competitive award program intended to reduce crime and advance public safety through community policing. CHP provides funds directly to law enforcement agencies to hire new or rehire additional career law enforcement officers and deputies to enhance their community policing capacity and crime prevention efforts. Of the 180 agencies awarded grants today, nearly half will use the funding to focus on building legitimacy and trust between law enforcement and communities; 30 agencies will seek to address high rates of gun violence; 26 will focus on other areas of violence; and 28 will focus CHP resources on combating hate and domestic extremism or supporting police-based responses to persons in crisis. The complete list of awards can be found here.
Since its creation in 1994, COPS has invested more than $14 billion to advance community policing, including grants awarded to more than 13,000 state, local and Tribal law enforcement agencies to fund the hiring and redeployment of more than 136,000 officers. CHP, COPS’ flagship program, continues to be in demand today: In FY22, COPS received 711 applications requesting more than 2,800 law enforcement positions.
To learn more about CHP, please visit https://cops.usdoj.gov/chp-award. For additional information about the COPS Office, please visit https://cops.usdoj.gov/.
The COPS Office is the federal component of the Department of Justice responsible for advancing community policing nationwide. The only Department of Justice agency with policing in its name, the COPS Office was established in 1994 and has been the cornerstone of the nation’s crime fighting strategy with grants, a variety of knowledge resource products, and training and technical assistance. Through the years, the COPS Office has become the go-to organization for law enforcement agencies across the country and continues to listen to the field and provide the resources that are needed to reduce crime and build trust between law enforcement and the communities served.
Jury Convicts Philomath Man of Failing to Register as a Sex OffenderRead the Press Release
PORTLAND, Ore.—On October 12, 2022, a federal jury in Portland found a Philomath, Oregon man guilty for failing to register as a sex offender.
Daniel Lynn Goering-Runyan, 37, was found guilty of one count of failing to register as a sex offender in violation of the Sex Offender Registration and Notification Act (SORNA).
“The Sex Offender Registration and Notification Act is an important law enforcement tool that helps break cycles of victimization in our communities. This case is a great example of the incredible work the U.S. Marshals Service does every day to locate and apprehend sex offenders who fail to register. Our communities are safer because of their dedication,” said Natalie Wight, U.S. Attorney for the District of Oregon.
According to court documents, in September 2014, Goering-Runyan was sentenced to 12 to 15 years in Nebraska state prison after he was convicted of sexually assaulting a five-year-old girl. At his sentencing hearing, Goering-Runyan acknowledged, on the record, that his conviction would require him to register as a sex offender. He reviewed and signed five more notices of his sex-offender registration obligations while in prison. Upon his release from prison in September 2021, Goering-Runyan signed a certificate of service acknowledging his receipt of a letter from the Nebraska State Patrol advising him of his lifetime requirement to register as a sex offender.
Upon his release from prison, Goering-Runyan properly registered as a sex offender in Nebraska. Two months later, in late November 2021, he told Nebraska officials he was relocating to Houston, Texas. A Nebraska official told him to register as a sex offender with the sheriff in Houston within three days of his arrival. Goering-Runyan never registered. Three weeks later, he traveled by bus to Corvallis, Oregon, arriving on December 25, 2021.
Over the next four months, Goering-Runyan lived in several places in and around Corvallis. He properly obtained an Oregon Identification from the Department of Motor Vehicles in early May, declaring himself an Oregon resident, but never registered as a sex offender as required under Oregon and federal law.
On May 3, 2022, a federal grand jury in Portland returned an indictment charging Goering-Runyan with one count of failing to register as a sex offender. The following day, on May 4, 2022, he was arrested by the Corvallis Police Department.
Failing to register as a sex offender is punishable by up to 10 years in federal prison. Goering-Runyan will be sentenced on November 30, 2022, by U.S. District Court Chief Judge Marco A. Hernández.
This case was investigated by the U.S. Marshals Service in Portland and Omaha, Nebraska with assistance from the Oregon State Police, the Corvallis and Philomath Police Departments, the Benton County Sheriff’s Office, and the Lancaster County (Nebraska) Sheriff’s Office. It was prosecuted by Bryan Chinwuba, Assistant U.S. Attorney for the District of Oregon.
The Sex Offender Registration and Notification Act (SORNA) is Title I of the Adam Walsh Child Protection and Safety Act of 2006. The act provides a comprehensive set of minimum standards for sex offender registration and notification in the United States. The U.S. Marshals Service is the federal government’s lead law enforcement agency for sex offender and fugitive investigations.
Jessup Felon Is Sentenced to 13 Years in Federal Prison for Possessing Fentanyl with Intent to Distribute and for Illegal Possession of a FirearmRead the Press Release
Baltimore, Maryland – U.S. District Judge Julie R. Rubin sentenced Edward Burton, age 38, of Jessup, Maryland, yesterday to 13 years in federal prison, followed by four years of supervised release, after Burton pleaded guilty to federal charges of possession of more than 400 grams of fentanyl with intent to distribute and to being a felon in possession of a firearm.
The guilty plea and sentence were announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Jarod Forget of the Drug Enforcement Administration - Washington Division; Special Agent in Charge Toni M. Crosby of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; Anne Arundel County Police Chief Amal E. Awad; Chief Melissa R. Hyatt of the Baltimore County Police Department; Anne Arundel County State’s Attorney Anne Colt Leitess; and Baltimore County State’s Attorney Scott Shellenberger.
According to his guilty plea, the DEA investigated a drug-trafficking organization operating in Baltimore, including Burton. On December 15, 2021, law enforcement searched a stash house used by Burton and his co-conspirators and recovered approximately 431.25 grams of mixtures or substances containing fentanyl, including a bag containing 6,450 gelatin capsules containing 231.67 gram of fentanyl and another bag containing 644 gelatin capsules containing 113 grams of fentanyl, as well as narcotics packaging materials and other drug paraphernalia. The search of the stash house also recovered seven firearms and ammunition, including three 9mm handguns; an AR-15 style rifle; a .45-caliber handgun; a 7.62 x 39mm caliber pistol; a .40-caliber rifle; .45-caliber magazines; and 7.62 x 39mm and 9mm ammunition. Law enforcement also recovered $4,376 in cash and jewelry valued at $13,550, which constituted proceeds of drug trafficking.
That same day, search warrants were executed at Burton’s home and at a storage unit that he rented. From the residence, law enforcement recovered: a .380 semi-automation handgun, loaded with eight rounds of ammunition; a .38-caliber revolver; $14,920 in cash; and jewelry valued at $447,950. From the storage unit investigators recovered: a 9mm handgun loaded with 13 rounds of ammunition; two .40-caliber handguns, one loaded with 13 rounds of ammunition, and the other with a large extended magazine loaded with 20 rounds of ammunition; and a 2019 Mercedes Benz AMG GT 63S, with Maryland registration listing Burton as the owner of the vehicle.
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.
This prosecution was brought as a part of the Department of Justice’s Organized Crime Drug Enforcement Task Forces (OCDETF) Co-located Strike Forces Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations against priority targets and their affiliate illicit financial networks. These prosecutor-led co-located Strike Forces capitalize on the synergy created through relationships forged by agents, analysts, and prosecutors who remain together over time, and they epitomize the model that has proven most effective in combating organized crime. The specific mission of the Baltimore OCDETF Strike Force is to reduce violent, drug-related, and gang crime in the Baltimore area and surrounding region.
United States Attorney Erek L. Barron commended the DEA, the ATF the Anne Arundel County Police Department, the Baltimore Police Department, the Anne Arundel County State’s Attorney’s Office, and the Baltimore County State’s Attorney’s Office for their work in the investigation and prosecution. Mr. Barron thanked Assistant U.S. Attorneys Joan C. Mathias and Ariel Evans, who are prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/project-safe-neighborhoods-psnexile and https://www.justice.gov/usao-md/community-outreach.
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Iowa Man Pleads Guilty to Methamphetamine ChargesRead the Press Release
A man who conspired to distribute methamphetamine and distributed methamphetamine pled guilty October 12, 2022, in federal court in Sioux City.
Jose Duenas-Topete, 29, from Hawarden, Iowa, was convicted of one count of conspiracy to distribute methamphetamine and one count of distributing methamphetamine.
At the plea hearing, Duenas-Topete admitted that from January 2020 and April 2, 2022, he and others in the conspiracy distributed at least 4.5 kilograms of pure methamphetamine in the Sioux City, Iowa area. On April 2, 2022, law enforcement conducted a controlled drug buy operation from defendant and his co-conspirators. Duenas-Topete distributed over 3 kilograms of pure methamphetamine in exchange for $5,000. Law enforcement conducted a traffic stop of the vehicle Duenas-Topete was a passenger and seized approximately one pound of methamphetamine near where defendant was sitting. Duenas-Topete further admitted that he received four shipments, each containing 5-6 pounds of methamphetamine from sources in Mexico to distribute to persons in the Sioux City and Plymouth County, Iowa areas.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Duenas-Topete remains in custody of the United States Marshal pending sentencing. On each conviction, Duenas-Topete faces a mandatory minimum sentence of 10 years’ imprisonment and a possible maximum sentence of life imprisonment, a $10,000,000 fine, and at least five years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by the Tri-State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; South Dakota Division of Criminal Investigation; and Woodbury County Attorney’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-4026.
Follow us on Twitter @USAO_NDIA.
Investiture Ceremony Held for United States Attorney William S. ThompsonRead the Press Release
CHARLESTON, W.Va. – William S. Thompson was formally sworn in today as the United States Attorney for the Southern District of West Virginia, and he pledged to continue the office’s mission of promoting justice and fighting crime throughout the district.
“My focus is on making our communities safer and more secure, and to hold people accountable for their actions,” Thompson told the members of the federal judiciary, distinguished guests, family and other well-wishers at his investiture ceremony.
Thompson affirmed his commitment to targeting the mid- and upper-level distributors of illegal drugs while supporting and working with recovery and prevention groups. Thompson noted that the epidemic of fatal drug overdoses remains all too real in the district: the latest casualties include a former baseball teammate of his son who died the previous evening.
“A priority of this office is to go after the drugs that are actually killing our communities, such as fentanyl, other opiates and meth,” Thompson said. “This is where a lot of the violence in our communities is actually coming from.”
Combating white-collar crime is also a priority, as the U.S. Attorney’s Office is best equipped to tackle such cases, Thompson said. He cited the office’s recent successful prosecution of foreign nationals, internet-based romance fraud schemes, and COVID-19 relief fraud.
As United States Attorney, Thompson is the chief law enforcement officer in the southern half of the state. Thompson leads an office of 34 attorneys and 41 non-attorney personnel located in offices in Charleston, Huntington, and Beckley. The office is responsible for prosecuting federal crimes in the district including crimes related to terrorism, public corruption, child exploitation, firearms, and narcotics. The office also defends the United States in civil cases and collects debts owed to the United States.
Thompson praised the ability and professionalism of the people in his office, citing their achievement in the past year. Thompson noted that after taking the helm, he assigned training duties to three of the office’s attorneys and had a fourth detailed to the January 6 prosecutions.
“I fully expected our caseload numbers to take a significant hit this year as a result, and I was going to be okay with that,” Thompson said. “However, the opposite was true. Our number of cases filed in my first year actually rose 48 percent, while nationwide cases in U.S. Attorney Offices went down by over 9 percent.”
Thompson recalled that he was approached about serving as U.S. Attorney on January 6, 2021, and explained that the events that day “solidified my resolve to be the best United States Attorney I could be.” Alongside drugs and white-collar crime, domestic terrorism is also a top priority of his office, Thompson said.
“Fortunately, this district has not been touched by this significantly yet, but that is a phone call I dread every day,” Thompson said.
United States Senator Joe Manchin spoke during the ceremony and hailed the selection of Thompson as U.S. Attorney.
“Today, we had the honor of celebrating Will Thompson’s dedication to the great state of West Virginia and the rule of law,” Manchin said. “Will’s work speaks for itself, and I’m pleased to be able to celebrate my friend today at his investiture ceremony. Congratulations to Will and Keri on this new endeavor and thank you for your continued service to the Mountain State.”
United States Senator Shelley Moore Capito also lauded Thompson’s selection.
“U.S. Attorney Thompson’s professional experience make him uniquely qualified to serve West Virginians in this capacity,” said Capito. “He has shown great leadership and professionalism throughout his career, and I am confident in his ability to uphold the rule of law and protect our communities here at home. I congratulate U.S. Attorney Thompson on his investiture today, and know he will continue to serve West Virginia honorably.”
Thompson was nominated by President Joseph R. Biden, Jr., on August 10, 2021. The United States Senate confirmed Thompson by voice vote on October 5, 2021. Today’s ceremony follows a private swearing-in conducted on October 13, 2021.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia.
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High-Ranking Ventura County Gang Member Linked to Mexican Mafia Sentenced to 13½ Years in Prison for Drug Trafficking OffensesRead the Press Release
LOS ANGELES – A high-ranking member of the Oxnard-based Surtown Chiques street gang was sentenced today to 162 months in federal prison for attempting to secure control of drug trafficking in Ventura County and extorting “taxes” on behalf of the Mexican Mafia prison gang.
Armando “Criminal” Molina, 39, of Ventura, was sentenced by United States District Judge John A. Kronstadt.
At the conclusion of a four-day trial in September 2019, a federal jury found Molina guilty of one count of conspiracy to distribute methamphetamine and five counts of distribution of methamphetamine.
Molina was arrested in November 2013 as part of Operation “SuperNova,” a multi-agency task force investigation that targeted Mexican Mafia-affiliated street gangs in Ventura County.
The federal criminal complaint on which Molina was arrested targeting “shotcallers” of Ventura County street gangs. The criminal complaint details a year-long undercover investigation and outlines a series of narcotics transactions that led to the seizure of more than two pounds of methamphetamine and quantities of heroin that were being sold on the streets of Ventura County.
The drugs were supplied by a drug trafficking organization controlled by Mexican Mafia member Martin Madrigal-Cazares. Local street gangs communicated with the head of the organization in Mexico, while controlling narcotics sales and collecting “taxes” on behalf of the Mexican Mafia in Ventura County.
From October 2012 and March 2013, Molina and his co-conspirators sold approximately 267 grams of pure methamphetamine to a confidential informant working for an FBI task force.
“[Molina] was more than some street dealer doling out methamphetamine to addicts to make a buck,” prosecutors argued in a sentencing memorandum. “Rather, he was a key member in a broader, more dangerous criminal enterprise that sought to dominate profitable criminal conduct over the Ventura County region.”
On the eve of Molina’s trial in 2019, a co-defendant, Frank Joshua “Villain” Ruiz, 40, of Ventura County, pleaded guilty to one count of conspiracy to distribute methamphetamine. In February 2020, Judge Kronstadt sentenced Ruiz to 135 months in federal prison.
The investigation was conducted jointly by the FBI, the Ventura Police Department, and the Oxnard Police Department. The Ventura County-Multi-Agency Gang Task Force is one of many FBI Safe Streets Task Forces throughout the United States, funded for the purpose of assisting local police in identifying and addressing violent crime in America.
Assistant United States Attorney Mack E. Jenkins, Chief of the Public Corruption and Civil Rights Section, prosecuted this case.
Greensburg Man Sentenced to 30 Years in Federal Prison for Sexual Exploitation of a ChildRead the Press Release
INDIANAPOLIS – Anthony Laquinn Thomas, 53, of Greensburg, Indiana, was sentenced late yesterday to 30 years in federal prison after pleading guilty to sexual exploitation of a child.
According to court documents, on April 24, 2019, police went to the residence of Minor Victim 1 to check her welfare because Minor Victim 1’s mother was concerned when she learned Minor Victim 1 was not in school. Minor Victim 1 was under thirteen years old at the time. Law enforcement officers located Minor Victim 1. Minor Victim 1 spoke to police and was later interviewed at a at a Children’s Advocacy Center. Minor Victim 1 disclosed that Thomas sexually abused her and used his cell phone to take naked pictures of her and show her pornographic images.
A probation search of Thomas’s residence was conducted, and Thomas was placed under arrest after police found evidence of methamphetamine use in the home. Thomas’s two cell phones were seized by police and searched after police obtained a search warrant. Police were able to lawfully access the information stored on Thomas’s cell phones and found numerous images of Minor Victim 1 engaged in sexually explicit conduct. Thomas’s Google account was also searched by police, and it revealed nine images of Minor Victim 1 engaged in sexually explicit conduct.
Thomas was on probation at the time of these offenses and had failed a recent drug screen. Thomas has a lengthy criminal history with convictions including drug dealing, drug possession, and battery of a child.
Zachary A. Myers, U.S. Attorney for the Southern District of Indiana; Jeffrey Adams, Special Agent in Charge of the U.S. Secret Service; Superintendent Douglas G. Carter of the Indiana State Police; and Mike McNealy, Chief of the Greensburg Police Department; made the announcement.
The U.S. Secret Service, Indiana State Police and Greensburg Police Department investigated the case. The Decatur County Probation Office and Decatur County Prosecutor’s Office provided valuable assistance. The sentence was imposed by U.S. District Judge Jane Magnus-Stinson. As part of the sentence, Judge Stinson ordered that Thomas be supervised by the U.S. Probation Office for 10 years following his release from federal prison and ordered Thomas to pay $10,000 in restitution to Minor Victim 1. Thomas must also register as sex offender wherever he lives, works, or goes to school, as required by law.
U.S. Attorney Myers thanked Assistant U.S. Attorney Kristina M. Korobov who prosecuted this case.
In fiscal year 2019, the most recent year for which data is available, the Southern District of Indiana was second out of the 94 federal districts in the country for the number of child sexual exploitation cases prosecuted. This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc
Grand Jury Indicts Rochester Man on Bank Robbery ChargeRead 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 a federal grand jury has returned an indictment charging Christopher M. Mancuso, 50, of Rochester, NY, with bank robbery and entering a bank with intent to commit a larceny. The charges carry a maximum penalty of 20 years in prison and a $250,000 fine.
Assistant U.S. Attorney Katelyn M. Hartford, who is handling the case, stated that according to the indictment and a previously filed complaint, on December 22, 2021, co-defendant Robert D. Postlethwaite, entered the M&T Bank on Long Pond Road in Greece, NY, approached a commercial teller station, and passed a demand note which read something to the effect of, “Don’t be alarmed. This is a robbery. Put bills $50 and up in the paper. I’ll be gone in 30 seconds.” After receiving $977, Postlethwaite fled the bank and got into the passenger seat of a red truck. The following evening, on December 23, 2021, the red truck was located by law enforcement with two occupants in Rochester. The driver was identified as Mancuso, and the passenger was identified as Postlethwaite. The defendants were taken into custody. On December 28, 2021, Greece Police executed a search warrant on the red truck and recovered $120 in cash, clothing consistent with descriptions of the two defendants, and two cell phones. Mancuso had just been released from Federal Probation supervision after being convicted of robbing four banks between November 2012 and January 2014, including the M&T Long Pond Road branch.
Robert Postlethwaite was previously convicted and is awaiting sentencing.
The indictment is the result of an investigation by the Greece Police Department, under the direction of Chief Michael Wood, the Federal Bureau of Investigation, under the direction of Acting Special Agent-in-Charge Jeremy Bell, the New York State Police, under the direction of Major Brian J. Ratajczak, the Monroe County Sheriff’s Office, under the direction of Sheriff Todd Baxter, and the Livingston County Sheriff’s Office, under the direction of Sheriff Thomas J. Dougherty.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Gloucester City Business Owner Admits Payroll Tax Fraud and Pandemic Loan FraudRead the Press Release
CAMDEN, N.J. – The owner of a business in Gloucester City, New Jersey, today admitted failing to pay over payroll taxes to the IRS, failing to file personal income tax returns, and fraudulently obtaining a Paycheck Protection Program (PPP) loan, U.S. Attorney Philip R. Sellinger announced.
John Degan, 69, of Philadelphia, Pennsylvania, pleaded guilty before U.S. District Judge Robert B. Kugler in Camden federal court to an information charging him with one count of failing to collect, account for, and pay over payroll taxes, one count of failure to file income tax returns with the IRS, and one count of bank fraud.
According to documents filed in this case and statements made in court:
Degan was the owner and operator of Companion Services Group Inc., a building maintenance and restoration service company in Gloucester City. Companion provided architectural maintenance and restoration services, which includes restroom maintenance, glass restoration, and graffiti removal.
Degan admitted that for tax years 2016 through 2020, he willfully failed to file payroll tax returns and failed to pay over $600,629 in withheld employment taxes on behalf of his employees. Degan attempted to conceal from the IRS over $4.4 million in wages that he paid to himself and his employees by not filing and submitting Forms W-2 or Form W-3 to the Social Security Administration (SSA).
Degan admitted that he received a yearly salary that ranged from $140,000 to $170,000 from Companion, willfully failed to file his federal income tax returns for tax years 2016 through 2020, and has not filed a tax return since 2003. He also failed to file the corporate tax returns for Companion, a business that generated more than $1.4 million in gross receipts yearly.
Degan also submitted a fraudulent application to a lender to obtain a PPP loan.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted in March 2020 and was designed to provide emergency financial assistance from the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of hundreds of billions of dollars in forgivable loans to small businesses through the PPP program.
In April 2020, Degan submitted a PPP application for Companion in which he falsely represented to the lender that Companion had employees and payroll expenses. In further support of his application, Degan submitted various IRS Forms to establish that he was paying compensation to his employees. Those forms were never actually submitted to the IRS; instead, they were false forms that were only created and used for the purpose of securing the loan.
Based on Degan’s misrepresentations, the lender approved the PPP loan and disbursed $193,407 in federal COVID-19 emergency relief funds.
The charge of failing to collect, account for and pay over payroll taxes carries a maximum penalty of five years in prison and a fine of $250,000, or twice the gross gain or loss from the offense, whichever is greatest. The charge of failing to file income tax returns with the IRS carries a maximum penalty of one year in prison and a fine of $100,000, or twice the gross gain or loss from the offense, whichever is greatest. The bank fraud count carries a maximum penalty of 30 years in prison and a fine of $1 million. As part of his guilty plea, Degan agreed to make restitution to the IRS in the full amount of the taxes that he owes, and he agreed to make restitution to the lender in the full amount of the PPP loan. Sentencing is scheduled for Feb. 14, 2023.
U.S. Attorney Sellinger credited special agents of the IRS – Criminal Investigation, under the direction of Acting Special Agent in Charge Tammy Tomlins in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Jason M. Richardson, Attorney in Charge of the U.S. Attorney’s Office in Camden.
Glendive woman admits stealing more than $119,000 from man whose finances she managedRead the Press Release
BILLINGS — A Glendive woman today admitted to defrauding a man of more than $119,000 in a scheme in which she managed his finances and used his money for her personal expenses, U.S. Attorney Jesse Laslovich said.
Gina Larae Mann, aka Gina Larae Neva, 53, pleaded guilty to wire fraud, aggravated identity theft and money laundering. Mann faces a maximum of 20 years in prison, a $250,000 fine and three years of supervised release on the wire fraud crime and a mandatory minimum two years in prison, consecutive to any other sentence, on the aggravated identity theft crime.
U.S. Magistrate Judge Timothy J. Cavan presided. Sentencing was set for Feb. 16, 2023 before U.S. District Judge Dana L. Christensen. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Mann was detained pending further proceedings.
The government alleged in court documents that Mann met the victim, identified as John Doe, after Doe’s wife died. Doe’s wife had been responsible for the household’s finances, and Mann volunteered to fulfill that role for Doe. Mann convinced Doe, who preferred to write paper checks, to obtain a debit card and register for online banking at Glendive BN Federal Credit Union. Mann then, without Doe’s knowledge or permission, used Doe’s personal identifying information to open several new credit card accounts in his name. Mann proceeded to use those accounts for her own personal expenses. In addition, Mann made several transfers from the credit union account to pay down outstanding balances on the credit cards. Mann’s scheme began in early 2018 and continued until late 2019 when Doe discovered the fraud after receiving overdraft notices from the credit union. Mann misappropriated approximately $119,269 in Doe’s name.
Assistant U.S. Attorney Karla E. Painter is prosecuting the case, which was investigated by the IRS Criminal Investigation.
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Four Defendants Sentenced for COVID-19 Relief FraudRead the Press Release
Memphis, TN – Four defendants have been sentenced for conspiracy to defraud the Small Business
Administration’s Economic Injury Disaster Loan (EIDL) program. The EIDL program provided grants and low-interest loans to small businesses affected by the COVID-19 pandemic, among other disasters.
Between April 2020 and June 2020, the defendants submitted more than 400 fraudulent EIDL applications and attempted to get over $7 million in funding. Kevin G. Ritz, United States
Attorney, announced the sentences today.United States Attorney Ritz commented: “These aid programs were meant to lift hardworking citizens and small businesses. But these individuals illicitly used the funds for their own benefit. I thank our federal law enforcement partners for uncovering and investigating these crimes. We will continue to prosecute those who abuse and misuse COVID-19 relief funds.”
“During a global pandemic, the defendants took advantage of aid programs intended to provide critical relief for hardworking members of our communities impacted by the COVID-19 outbreak,” said
Donald “Trey” Eakins, Special Agent in Charge of the Internal Revenue Service – Criminal
Investigation (IRS-CI) Memphis Field Office. “We will continue to prioritize COVID-19 fraud investigations on those who fraudulently take intended funds for struggling businesses that truly needed assistance.”“Conspiring to fraudulently obtain federal funds that are meant to provide assistance to nation’s small businesses is unacceptable,” said SBA Office of Inspector General’s Special Agent in Charge
Amaleka McCall-Brathwaite. “Our office will aggressively pursue evidence of wrongdoing and bring those responsible to justice. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their dedication and commitment to seeing justice served.”Sharika L. Carpenter, 43, of Memphis, Tennessee, pled guilty on January 13, 2022, to one count of conspiracy to defraud the EIDL program, one count of wire fraud, two counts
of theft of government property, and one count of preparing a false tax return. According to information presented in court, Carpenter owned a tax-preparation business, Better Days Tax
Services, in Memphis, Tennessee. She recruited and trained at least five people to work for her preparing fraudulent tax returns and fraudulent applications to COVID- 19 relief programs for clients. Operating out of that business in 2020, Carpenter and her co-conspirators obtained more than $745,000 in fraudulent EIDL funds. Carpenter charged her clients up to 50 percent of the fraudulent EIDL proceeds, and she also submitted fraudulent EIDL applications in her own name. She paid her employees a flat fee for each fraudulent EIDL application that received funding. In addition to the EIDL fraud, Carpenter prepared false income tax returns for clients, resulting in fraudulent tax refunds and lost tax revenue. Carpenter also defrauded the Small Business
Administration’s (SBA) Paycheck Protection Program (PPP) by obtaining a fraudulent PPP loan of
$3,548. And Carpenter defrauded the Department of Labor’s Pandemic Unemployment Assistance program by claiming more than $33,000 in unemployment- assistance payments to which she was not entitled.On October 5, 2022, United States District Judge Thomas L. Parker sentenced Carpenter to a total of four years in federal prison, to be followed by three years of supervised release. Carpenter may not own or operate a tax preparation business or engage in tax preparation services during her supervised release. Carpenter also was ordered to pay restitution of
$38,756 and a fine of $20,000. There is no parole in the federal system.Co-defendant Kevin Maclin, 45, of Memphis, Tennessee, pled guilty on January 18, 2022, to one count of conspiracy to defraud the EIDL program for his role in the fraud scheme. Maclin recruited additional clients to Better Days Tax Services, where Carpenter and her employees submitted fraudulent EIDL applications on the recruits’ behalf. Maclin received a percentage of those clients’ EIDL funds. Carpenter also prepared fraudulent EIDL applications for Maclin, for which
Maclin received $31,000 in his own name. On May 16, 2022, United States District Judge Thomas L.
Parker sentenced Maclin to 18 months in federal prison, to be followed by two years of supervised release. Maclin also was ordered to pay restitution of $31,000 and a fine of $10,000.Co-defendants Brandy D. Scaife, 44, and Stephanie Johnson, 43, both of Memphis, Tennessee, each pled guilty on January 12, 2022, to one count of conspiracy to defraud the EIDL program for their roles in the fraud scheme. Scaife and Johnson both worked for Carpenter preparing fraudulent EIDL applications for Better Days Tax Services clients. Carpenter paid Scaife and Johnson a flat fee for each fraudulent application that received funding. Scaife also obtained a fraudulent EIDL loan in her own name. On April 29, 2022, United States District Judge Thomas L. Parker sentenced Scaife to time served, to be followed by one year of supervised release, and ordered her to pay restitution of $17,900. On May 18, 2022, United States District Judge Thomas L. Parker sentenced Johnson to two years of federal probation.
This case was investigated by IRS-CI, the Treasury Inspector General for Tax Administration, the SBA Office of Inspector General, and the Department of Labor Office of Inspector General.
Assistant United States Attorney Murre Foster prosecuted this case on behalf of the government.Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
For more information, please contact Public Information Officer Cherri Green at (901) 544-4231 or cherri.green@usdoj.gov. Follow @WDTNNews on Twitter for office news and updates.
Former lawyer for Mexico’s attorney general sentenced for drug traffickingRead the Press Release
McALLEN, Texas – A 56-year-old man who illegally resided in Mission has been ordered to federal prison for his role in conspiring to possess with intent to distribute 32 kilograms of cocaine, announced U.S. Attorney Jennifer B. Lowery.
Rogelio Alberto Velasco pleaded guilty June 3.
Today, U.S. District Judge Randy Crane sentenced Velasco to 70 months in federal prison. Not a U.S. citizen, he is expected to face removal proceedings following his imprisonment. At the hearing, the court heard evidence that Velasco received his law degree in 1995 and worked for the attorney general of the Republic in Mexico for nearly 30 years. In handing down the sentence, the court noted that Velasco was educated and knew the consequences of his actions yet still engaged in drug trafficking.
On Jan. 27, Velasco provided a kilogram of cocaine to undercover authorities as a sample of the product he had available for purchase. The next day, undercover authorities again meet with Velasco to buy an additional two kilograms of cocaine. Law enforcement subsequently executed a search warrant at his residence in Mission that resulted in the discovery of an additional 29 kilograms of cocaine. Additional search warrants of Velasco’s telephones revealed he was in direct communication with the source of supply.
The cocaine has an estimated street value of $800,000.
Velasco will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration conducted the investigation with the assistance of Hidalgo County Precinct 1 Constable’s Office. Assistant U.S. Attorney Laura Garcia prosecuted the case.
Former Yale Med School Employee Who Stole $40 Million in Electronics Sentenced to 9 Years in PrisonRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that JAMIE PETRONE, 43, of Lithia Springs, Georgia, formerly of Naugatuck, Connecticut, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 109 months of imprisonment, followed by three years of supervised release, for fraud and tax offenses related to her theft of $40 million in computer and electronic hardware from the Yale University School of Medicine where she was employed.
According to court documents and statements made in court, beginning in approximately 2008, Petrone was employed by the Yale University School of Medicine (“Yale Med”), Department of Emergency Medicine, ultimately serving as the Director of Finance and Administration for the Department of Emergency Medicine. As part of her job responsibilities, Petrone had authority to make and authorize certain purchases for departmental needs as long as the purchase amount was below $10,000. Beginning at least as early as 2013, Petrone engaged in a scheme whereby she ordered, or caused others working for her to order, millions of dollars of electronic hardware from Yale vendors using Yale Med funds, and she arranged to ship the stolen hardware to an out-of-state business in exchange for money.
As part of the scheme, Petrone falsely represented on Yale internal forms and in electronic communications that the hardware was for specified Yale Med needs, such as particular medical studies, and she broke up the fraudulent purchases into orders below the $10,000 threshold that would require additional approval. The out-of-state business, which resold the electronic equipment to customers, paid Petrone by wiring funds into an account of a company in which she is a principal, Maziv Entertainment LLC.
In total, Petrone caused a loss of approximately $40,504,200 to Yale. Petrone used the proceeds of the sales of the stolen equipment for various personal expenses, including expensive cars, real estate and travel.
Petrone also failed to pay taxes on the money she received from selling the stolen equipment. She filed false federal tax returns for the 2013 through 2016 tax years, in which she falsely claimed as business expenses the costs of the stolen equipment, and failed to file any federal tax returns for the 2017 through 2020 tax years. This caused a loss of $6,416,618 to the U.S. Treasury.
Petrone was arrested on September 3, 2021. On March 28, 2022, she pleaded guilty to one count of wire fraud and one count of filing a false tax return.
Judge Bryant ordered Petrone to make full restitution. Petrone has agreed to forfeit $560,421.14 that was seized from the Maziv Entertainment LLC bank account as part of the investigation, a 2014 Mercedes-Benz G550, a 2017 Land Rover/Range Rover Sv Autobiography, a 2015 Cadillac Escalade Premium, a 2020 Mercedes Benz Model E450A, a 2016 Cadillac Escalade (4 Door Sport), and a 2018 Dodge Charger. She also has agreed to the liquidation of three Connecticut properties that she owns or co-owns to help satisfy her restitution obligation. A property she owns in Georgia is also subject to seizure and liquidation.
Petrone was remanded into custody following the sentencing proceeding.
This matter was investigated by the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation Division, with the assistance of the Yale Police Department. The case was prosecuted by Assistant U.S. Attorney David E. Novick.
Former Philadelphia City Treasurer Pleads Guilty to Naturalization Fraud and Failure to File Taxes ChargesRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Christian Dunbar, 42, of Philadelphia, PA, the former Philadelphia City Treasurer, pleaded guilty in front of United States District Court Judge Cynthia M. Rufe to procurement of citizenship unlawfully and through multiple false statements; submitting false citizenship papers; and failure to file tax returns, all in connection with false statements and altered documents he submitted as part of his application to become a U.S. citizen, and failing to file his federal tax returns in three separate years.
In May 2021, the defendant was charged by Superseding Indictment with multiple counts of filing a false income tax return and failure to file tax returns. Earlier, in September 2020, Dunbar was charged in a 14-count Indictment, charging embezzlement by a bank employee, procurement of naturalization through a false statement, procurement of naturalization unlawfully, obtaining false citizenship papers, and making false statements in support of naturalization.
During the hearing, the defendant admitted to procuring U.S. citizenship fraudulently by providing false information about where and with whom he was living, where his child was residing, and submitting a false lease and a false W-2 tax form to U.S. Citizenship and Immigration Services. Further, Dunbar admitted to not filing his personal income tax returns for tax years 2015, 2016, and 2019 (during the last of which he was serving as the Philadelphia City Treasurer).
“Christian Dunbar’s conduct in this case demonstrates a shocking level of misconduct for anyone, let alone a senior official with the City of Philadelphia whose job it was to oversee the City’s fiscal stability,” said U.S. Attorney Romero. “Our Office will continue to work with our law enforcement partners to investigate these types of complicated public corruption cases, and hold public officials accountable.”
“Christian Dunbar fraudulently obtained U.S. citizenship, building his life and career here on a foundation of lies,” said Jacqueline Maguire, Special Agent in Charge of the FBI’s Philadelphia Division. “It’s a sad irony that such a dishonest person wound up City Treasurer, a key position of public trust. Corruption like this corrodes people’s faith in government, which is why the FBI works so hard to hold crooked public officials accountable.”
“Christian Dunbar violated federal tax laws when he failed to file his tax returns, even though he was required, by law, to file,” said IRS Criminal Investigation Special Agent in Charge Yury Kruty. “Tax crimes like this will not go undetected thanks to the tireless hard work of IRS-CI Special Agents. We will continue to focus our investigative efforts on individuals who choose to ignore their legal duty to accurately file and pay their taxes.”
“HSI Philadelphia special agents worked diligently with our partners in the FBI and IRS to ensure Mr. Dunbar is held responsible for his actions,” said William S. Walker, Special Agent in Charge of HSI’s Philadelphia office. “HSI’s mission is to investigate crimes regardless of the perpetrator’s position, official title or economic status. This investigation underscores the importance of how collaboration and teamwork among federal agencies leads to accountability for crimes committed by those who seek to exploit vulnerabilities in our systems.”
The case was investigated by the Federal Bureau of Investigation, the Internal Revenue Service – Criminal Investigations, and Homeland Security Investigations, and is being prosecuted by Assistant United States Attorney Josh A. Davison.
Former Pembroke Township Supervisor Charged with Filing False Tax ReturnsRead the Press Release
URBANA, Ill. – A federal grand jury returned an indictment on October 4, 2022, charging the former elected Township Supervisor of Pembroke Township in Kankakee County, Illinois, Larry Dean Gibbs, 61, also known as Mulumbua Humraukn El Taikaem Bey, of St. Anne, Illinois, with three counts of filing false income tax returns. The indictment was unsealed on October 12, 2022.
The indictment alleges that Gibbs filed false income tax returns in 2017 for calendar years 2012, 2013, and 2014. In those years, Gibbs filed a Form 1040 U.S. Individual Income Tax Return in the name of Larry Dean Gibbs claiming that he had adjusted gross income of $10 million, that millions of dollars in federal income tax had been withheld by the Internal Revenue Service, and that he was entitled to refunds in excess of $2 million for each tax year, respectively. According to the indictment, the IRS did not withhold any federal income tax from Gibbs, and he was not entitled to the requested refunds.
Gibbs was arrested on October12, 2022, and appeared before U.S. Magistrate Judge Eric I. Long in Urbana that same day.
If convicted, each count of filing a false income tax return carries a penalty of up to three years in prison, up to one year of supervised release, and up to a $100,000 fine plus the costs of prosecution.
The charges are the result of an investigation by the Criminal Investigation Division of the Internal Revenue Service. Supervisory Assistant U.S. Attorney Eugene L. Miller is representing the government in the prosecution.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
Former Owner and Chief Financial Officer of Perry County Business Convicted of Wire Fraud and Money Laundering ChargesRead the Press Release
LEXINGTON, Ky.- The owner and chief financial officer of a former business in Perry County were both convicted on Thursday, by a federal jury in Lexington, of conspiracy to commit wire fraud, multiple counts of wire fraud, and conspiracy to commit money laundering.
Following a six-day trial, the jury convicted 53-year-old Douglas William Vance of Richlands, Virginia, and 59-year-old Molly Irene McKinnon of Acworth, Georgia, of four counts of wire fraud, one count of conspiracy to commit wire fraud, and one count of money laundering.
According to evidence at trial, from August 2016 through December 2018, Vance and McKinnon used falsified bank statements, financial reports, purchase orders, sales and production figures, and other fabrications, to convince different investors that each owned a controlling stake in a company called “Nex-Gen.” The company purported to produce “calcined coal” and other carbon-based products, in Chavies, Kentucky. The false and fabricated documents also convinced two companies to lend money to Nex-Gen, and it concealed the fact that Vance and McKinnon were misappropriating both investor and lender funds. The evidence presented at trial established that Vance and McKinnon worked together to defraud multiple investors and lenders out of more than $2 million.
Vance and McKinnon were indicted in June 2020.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky, and Jodi Cohen, Special Agent in Charge, FBI, Louisville Field Office, jointly announced the jury’s verdict.
The investigation was conducted by the FBI. The United States was represented in the case by Assistant U.S. Attorneys Gregory Rosenburg and James Chapman.
Vance and McKinnon will appear for sentencing on February 3, 2023. They face a maximum of 20 years in prison for each of the counts of conviction, plus any applicable restitution. However, the Court must consider the U.S. Sentencing Guidelines and the applicable federal sentencing statutes before imposing a sentence.
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Former Nashua, New Hampshire Man Sentenced to 68 Months for Conspiracy to Distribute Crack CocaineRead the Press Release
CONCORD – Antron Hughes, 60, formerly of Nashua, New Hampshire was sentenced to 68 months in federal prison for conspiracy to distribute controlled substances, United States Attorney Jane E. Young announced today.
According to court documents and statements made in court, from approximately December 2022 through March 2021, Hughes conspired with another individual on five occasions to distribute quantities of cocaine base (“crack”) to an individual who was cooperating with the Federal Bureau of Investigation and the Nashua, New Hampshire Police Department during their investigation into increased drug trafficking in the “Tree Streets” area of the city.
The case was investigated by the Federal Bureau of Investigation’s New Hampshire Major Offender Task Force and the Nashua, New Hampshire Police Department. The case was prosecuted by Assistant United States Attorney Jennifer C. Davis.
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Former Islamic center director pleads guilty to embezzling funds, committing fraudRead the Press Release
COLUMBUS, Ohio – The former director of a local Islamic center pleaded guilty in U.S. District Court today to embezzling funds from the mosque, defrauding public housing, and filing for fraudulent COVID assistance funds.
Ahmed A. Sh. Ahmed, 43, of Gahanna, admitted in federal court today to committing wire fraud, submitting a false statement and making a false statement.
According to court documents, from at least 2009 until March 2019, Ahmed was employed as the Director of the Ibn Taymiyah Masjid and Islamic Center (ITMIC) on Mock Road in Columbus.
During his tenure as director, Ahmed used his position of trust to embezzle funds from the religious organization. Specifically, Ahmed wrote unauthorized checks from ITMIC’s accounts to himself. Each year from 2015 through 2018, Ahmed increased the amount he embezzled, writing himself $4,500 in checks in 2015; approximately $11,000 in checks in 2016; $12,900 in checks in 2017; and approximately $21,000 in checks in 2018.
Ahmed spent thousands of dollars of ITMIC funds to pay his own personal credit card bill and towards the purchase of his own personal vehicle.
Ahmed also defrauded the Columbus Metropolitan Housing Authority’s housing choice voucher program. From 2014 until at least 2020, Ahmed submitted false claims to obtain housing subsidies he would not otherwise qualify for given his true income and assets.
The defendant falsely claimed his personal income was $18,000 annually and did not report any household assets. In reality, Ahmed and his wife deposited more than $235,000 into their bank accounts from 2014 through 2018.
Finally, Ahmed fraudulently applied for Pandemic Unemployment Assistance nine times from August until October 2020. During that same time frame, Ahmed generated at least $4,000 in revenue by producing and posting approximately 126 YouTube videos to his YouTube channel.
As part of his plea, Ahmed will pay more than $37,400 in restitution to the Islamic center.
Wire fraud is punishable by up to 20 years in prison. Making and submitting false claims are federal crimes that carry a potential maximum sentence of up to five years in prison.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; J. William Rivers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati division; and Jerome Winkle II, Acting Special Agent in Charge, HUD-OIG, announced the plea entered today before U.S. District Judge Edmund A. Sargus, Jr. Assistant United States Attorney Jessica W. Knight is representing the United States in this case.
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Former Honduran Congressman Sentenced to 30 Years in Prison for Conspiring to Import Cocaine into the United States and Possessing Machine Guns and Destructive DevicesRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that FREDY RENAN NAJERA MONTOYA was sentenced to 30 years in prison for conspiring to import cocaine into the United States and possessing machine guns and destructive devices during the course of that conspiracy. NAJERA previously pled guilty before U.S. District Judge Paul G. Gardephe, who sentenced Najera today.
U.S. Attorney Damian Williams said: “Fredy Najera, a former Honduran congressman, abused his high-powered position by operating a large-scale narcotics trafficking organization that imported tons of cocaine to the United States. Najera oversaw the construction of airfields in Honduras and the use of militia-style tactics and weaponry to protect the illicit shipments. Najera has now been sentenced to 30 years in U.S. federal prison for his conduct in connection to importing over 30 tons of cocaine, which continues to contribute to the devastating cycle of addiction and abuse that affects so many Americans.”
According to the Superseding Indictment, other court filings, and statements made during other court proceedings:
From approximately 2008 through 2015, NAJERA abused his position as a Honduran congressman to lead large-scale and violent drug-trafficking activities in the same part of Honduras that he represented in his government position. NAJERA’s crimes involved the distribution of more than 30 tons of cocaine, which was ultimately imported into the United States. In connection with these activities, NAJERA used, and employed security teams who used military-grade weapons including machine guns and rocket-propelled grenade launchers.
During that same time period, NAJERA constructed, maintained, and staffed clandestine airstrips in Olancho, Honduras, that were used to receive multi-hundred-kilogram shipments of cocaine sent from Venezuela to Honduras. NAJERA facilitated the receipt of cocaine-laden planes and helicopters at his airstrips and coordinated the transportation of the cocaine westward in Honduras so that it could be imported into the United States. Heavily armed security personnel employed by NAJERA participated in the receipt and transportation of these shipments. NAJERA also cultivated criminal relationships with members of the Honduran National Police and the Honduran military in order to support his drug-trafficking activities by obtaining sensitive law enforcement information used by traffickers to avoid arrests and to plan transportation routes for U.S.-bound cocaine.
In 2012, NAJERA introduced members of the Sinaloa Cartel to Honduran officials who provided nearly unfettered access to a major commercial shipping hub in Puerto Cortés, Honduras. The Sinaloa Cartel relied on NAJERA’s connections to transport approximately 10 tons of cocaine through Puerto Cortés.
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In addition to his prison sentence, NAJERA, 46, of Honduras, was sentenced to five supervised release, ordered to forfeit $39,000,000, and ordered to pay a fine of $10,000,000.
Mr. Williams praised the outstanding efforts of the Bilateral Investigations Unit of the Special Operations Division of the Drug Enforcement Administration (“DEA”), New York Strike Force, and DEA Tegucigalpa Country Office, as well as the Department of Justice’s Office of International Affairs.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (“OCDETF”) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
This case is being handled by the Office’s National Security and International Narcotics Unit. Assistant U.S. Attorneys Jacob H. Gutwillig, Michael D. Lockard, Jason A. Richman, and Elinor L. Tarlow are in charge of the prosecution.
Former FBI Analyst Pleads Guilty to Retaining National Defense DocumentsRead the Press Release
KANSAS CITY, Mo. – A former analyst with the Kansas City Division of the FBI pleaded guilty in federal court today before U.S. District Judge Stephen R. Bough to two counts of unlawfully retaining documents related to the national defense in her North Kansas City, Mo., residence.
According to court documents, Kendra Kingsbury, 50, of Kansas City, Missouri, was an intelligence analyst for the FBI for more than 12 years, from 2004 to Dec. 15, 2017. Kingsbury was assigned to a sequence of different FBI squads, each of which had a particular focus, such as illegal drug trafficking, violent crime, violent gangs, and counterintelligence. Kingsbury held a TOP SECRET//SCI security clearance and had access to national defense and classified information.
Training presentations and materials specifically warned Kingsbury that she was prohibited from retaining classified information at her personal residence. Such information could only be stored in an approved facility and container.
By pleading guilty today, Kingsbury admitted that, over the course of her FBI employment, she repeatedly removed from the FBI and retained in her personal residence an abundance of sensitive government materials, including classified documents related to the national defense. In total, Kingsbury improperly removed and unlawfully and willfully retained approximately 386 classified documents in her personal residence. The documents retained by Kingsbury in her personal residence included documents in electronic format on hard drives, compact discs, and other storage media.
The national defense information that Kingsbury unlawfully retained included numerous documents classified at the SECRET level from the FBI that describe intelligence sources and methods related to U.S. government efforts related to counterterrorism, counterintelligence, and defending against cyber threats. These documents included details on the FBI’s nationwide objectives and priorities, including specific investigations across multiple field offices that were open at the time Kingsbury unlawfully retained the documents. In addition, Kingsbury retained documents relating to sensitive human-source operations in national security investigations, intelligence gaps regarding hostile foreign intelligence services and terrorist organizations, and the technical capabilities of the FBI against counterintelligence and counterterrorism targets.
The national defense information that Kingsbury unlawfully retained also included numerous documents classified at the SECRET level from another government agency. These documents described intelligence sources and methods related to U.S. government efforts to collect intelligence on terrorist groups. The documents included information about al Qaeda members on the African continent, including a suspected associate of Usama bin Laden. In addition, there were documents regarding the activities of emerging terrorists and their efforts to establish themselves in support of al Qaeda in Africa.
Kingsbury specifically admitted that she knew 20 of these documents were classified, contained national defense information, and that she did not have a “need to know” the information contained in the documents. Kingsbury knew that information in these documents could be used to the injury of the United States or to the advantage of foreign nations. Kingsbury was not authorized to possess these documents in her personal residence and her personal residence was not a location authorized to store classified information.
Kingsbury faces a maximum statutory penalty of up to 10 years in federal prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division, U.S. Attorney Teresa A. Moore for the Western District of Missouri and Assistant Director Alan E. Kohler of the FBI’s Counterintelligence Division made the announcement.
The FBI Omaha Field Office is investigating the case.
Assistant U.S. Attorneys Patrick Edwards and David Raskin for the Western District of Missouri and Trial Attorney Scott Claffee of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case.
Former Employee of Beaver County Health Care Facility Pleads Guilty to Federal Hate Crime Charges Related to Assaults Against Disabled ResidentsRead the Press Release
PITTSBURGH, PA – A former resident of Beaver County, Pennsylvania, pleaded guilty in federal court to federal hate crime charges, United States Attorney Cindy K. Chung announced today.
Zachary Dinell, 28, formerly of Freedom, Pennsylvania, pleaded guilty to one count of conspiracy, ten counts of violating the Matthew Shepard and James Byrd, Jr. Hate Crimes Prevention Act, and one count of concealing material facts in a health care matter before United States District Judge J. Nicholas Ranjan
According to admissions made during Dinell’s plea hearing, he and co-defendant Tyler Smith were employees of an in-patient health care facility located in New Brighton, Pennsylvania. Residents of the facility suffered from a range of severe physical, intellectual, and emotional disabilities, and required assistance with all activities of daily life, including bathing, using the bathroom, oral hygiene, feeding, and dressing. As members of the facility’s Direct Care Staff, Dinell admitted that he and Smith were responsible for providing this daily assistance to residents.
From approximately June 2016 to September 2017, Dinell further admitted that he and Smith engaged in a conspiracy to commit hate crimes against residents of the facility because of the residents’ actual or perceived disabilities. Dinell and Smith carried out assaults in a variety of ways, including by punching and kicking residents, jumping on residents, rubbing liquid irritants in their eyes, spraying liquid irritants in their eyes and mouths, and in one instance removing a resident’s compression stocking in a manner intended to inflict pain. Several of these assaults were recorded on Dinell’s cell phone. As part of the conspiracy, Dinell acknowledged that he and Smith exchanged text messages in which they expressed their animus toward the disabled residents, shared pictures and videos of residents, described their assaults, and encouraged each other’s continued abuse of residents.
Dinell further admitted that he and Smith were able to avoid detection by, among other things, exploiting their one-on-one access to residents of the facility and the fact that the victims were non-verbal and could not report the defendant’s alleged abuse. Due to their physical disabilities, the residents also were not able to defend themselves against the alleged assaults.
The maximum penalty for the conspiracy charge is a term of imprisonment of five years and a $250,000 fine. The maximum penalty for each of the ten hate crime charges is a term of imprisonment of ten years and a $250,000 fine. The scheme to conceal material facts likewise is punishable by up to five years of imprisonment and a $250,000 fine.
As part of his plea agreement, and subject to the approval of Judge Ranjan, Dinell has agreed to a term of imprisonment of between 168 and 204 months.
The case against Smith remains pending, and he is presumed innocent unless and until proven guilty.
Assistant United States Attorney Eric G. Olshan is prosecuting this case on behalf of the government. The Federal Bureau of Investigation conducted the investigation leading to the
Indictment in this case.Florida Medical Clinic Owners and Staff Charged with Falsifying Clinical Trial DataRead the Press Release
In an indictment unsealed yesterday, a Miami grand jury charged three defendants for their roles in an alleged scheme to fabricate and falsify clinical drug trial data, the Department of Justice announced.
Miguel Montalvo, 52, Bernardo Garmendia, 58, and Ivette Portela, 52, all of Miami, were charged in a three-count indictment returned by a federal grand jury on Sept. 13. Each defendant was charged with conspiracy to commit wire fraud and one substantive count of wire fraud. In addition, Montalvo was charged with making a false statement to a regulatory investigator with the Food and Drug Administration (FDA).
According to the indictment, from at least September 2015 through at least March 2018, the defendants fabricated clinical trial data for profit while working at AMB Research Center Inc., a medical clinic based in Miami. The indictment alleges that the defendants knowingly enrolled subjects in a clinical trial even though those subjects failed to meet eligibility criteria, falsified subject laboratory results, falsified subject medical records, and falsely represented that subjects were taking the drug being studied when, in fact, they were not. Montalvo and Garmendia were co-owners of AMB Research Center, where Montalvo also served as a lead study coordinator and Garmendia served as a study coordinator. Portela worked at AMB Research Center and was a pharmacy technician.
Trial Attorneys Karla-Dee Clark and Jessica C. Harvey of the Justice Department’s Consumer Protection Branch are prosecuting the case. The U.S. Food and Drug Administration’s Office of Criminal Investigations, Miami Field Office, investigated the case, and the U.S. Attorney’s Office of the Southern District of Florida has provided critical assistance.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Southern District of Florida, visit its website at https://www.justice.gov/usao-sdfl.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Five Arrested in Attempted Human Smuggling Event Near Morses LineRead the Press Release
The United States Attorney for the District of Vermont announced that five persons were arrested near Morses Line on October 9, 2022 in connection with what is believed to be an attempt to smuggle individuals without legal status into the United States. Angel Hernandez-Pineda, 32, a Honduran national who has no immigration status in the United States, and Jhony Cantarero-Vasquez, 29, of Worcester, MA, appeared yesterday in United States District Court in Burlington on a charge that they attempted to transport individuals without legal status within the United States. Federico Rincon-Ramirez, Leydi Rincon-Sosa, and Jairo Alberto Ortiz-Acevedo, who are all citizens of Mexico and without legal status in the United States, also appeared in court yesterday on charges that they unlawfully entered the country. U.S. Magistrate Judge Kevin Doyle released Cantarero-Vasquez on conditions; ordered that Hernandez-Pineda be detained pending a further hearing on October 14; and ordered detention of the three individuals without legal status pending trial.
The United States Attorney emphasizes that the charges in the criminal complaints are merely accusations, and that the defendants are presumed innocent unless and until they are proven guilty.
The attempted transportation charge is punishable by up to ten years of imprisonment and a fine of up to $250,000. The unlawful entry charge is a misdemeanor punishable by up to six months of imprisonment. The actual sentences would be determined with reference to federal sentencing guidelines.
U.S. Attorney Nikolas P. Kerest credited the agents of the United States Border Patrol for their continued efforts to prevent the exploitation of foreign nationals by human smuggling organizations.
Hernandez-Pineda is represented by Assistant Federal Public Defender Mary Nerino. Cantarero-Vasquez is represented by John-Claude Charbonneau, Esq. Rincon-Ramirez is represented by Chandler Matson, Esq. Rincon-Sosa is represented by Lisa Shelkrot, Esq. Ortiz-Acevedo is represented by Jordana Levine, Esq. The prosecutor in this case is Assistant U.S. Attorney Gregory Waples.