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4 October 2022
Northern District of Alabama Takes Part in Department’s Wide-Ranging Efforts to Protect Older AdultsRead the Press Release
Birmingham, Ala. – The Justice Department announced today the results of its efforts over the past year to protect older adults from fraud and exploitation. During the past year, the Department and its law enforcement partners tackled matters that ranged from mass-marketing scams that impacted thousands of victims to bad actors scamming their neighbors. Substantial efforts were also made over the last year to return money to fraud victims. Today, the Department also announced it is expanding its Transnational Elder Fraud Strike Force to amplify efforts to combat scams originating overseas.
“We are intensifying our efforts nationwide to protect older adults, including by more than tripling the number of U.S. Attorneys’ offices participating in our Transnational Elder Fraud Strike Force dedicated to disrupting, dismantling and prosecuting foreign-based fraud schemes that target American seniors,” said Attorney General Merrick B. Garland. “This expansion builds on the Justice Department’s existing work to hold accountable those who steal funds from older adults, including by returning those funds to the victims where possible.”
“Crimes against older adults target some of the most vulnerable people in our society,” U.S. Attorney Escalona said. “The U.S. Attorney’s Office and our law enforcement partners will continue to vigorously pursue individuals who target older adults in the Northern District of Alabama.”
During the period from September 2021 to September 2022, Department personnel and its law enforcement partners pursued approximately 260 cases involving more than 600 defendants, both bringing new cases and advancing those previously charged.
Cases prosecuted in the Northern District of Alabama included several defendants that fraudulently targeted the elderly in a number of different schemes, including business email compromise scams, romance scams, and unemployment benefits fraud. Notable cases include:
In United States of America v. Benjamin, et al., multiple defendants pled guilty in a business email compromise, account takeover, and check fraud scheme that targeted elderly victims. The attempted loss amount in the case exceeded $13.3 million. One vulnerable victim sent more than $870,000 to a bank account opened by defendants in the scheme that represented the equity of her home. Multiple defendants convicted in the scheme were sentenced to several years of incarceration in the Bureau of Prisons for their crimes.
In United States to Afolabi, et al., the defendant pled guilty to stealing the identities of elderly victims residing in the state of Illinois to file fraudulent unemployment benefits applications during the height of the COVID-19 pandemic. The estimated amount attributed to the defendant’s conduct totaled between $550,000 and $1.5 million. Victims harmed in the scheme were innocent third parties who now have had their personally identified information compromised and exploited, and face the difficulties associated with managing this theft going forward.
As part of the Northern District of Alabama’s elder fraud efforts, it engages in outreach to the community and industry to raise awareness about scams and exploitation and preventing victimization. This year, Assistant United States Attorneys participated in numerous community events designed to increase awareness of potential elder fraud and abuse, including programs for the North Alabama Institute of Internal Auditors and AARP. On June 15, 2022, United States Attorney Prim Escalona appeared on Good Day Alabama on Elder Abuse Awareness Day, to continue the district’s efforts to combat elder fraud and abuse.
The Department also highlighted three other efforts: expansion of the Transnational Elder Fraud Task Force, success in returning money to victims and efforts to combat grandparent scams.
The Department announced that as part of its continuing efforts to protect older adults and bring perpetrators of fraud schemes to justice it is expanding the Transnational Elder Fraud Strike Force, adding 14 new U.S. Attorney’s Offices. Expansion of the Strike Force will help to coordinate the Department’s ongoing efforts to combat largest and most harmful fraud schemes that target or disproportionately impact older adults.
In the past year, the Department has notified over 550,000 people that they may be eligible for remission payments. Notifications were made to consumers whose information was sold by one of three data companies prosecuted by the Department and were later victims of “sweepstakes” or “astrology” solicitations that falsely promised prizes or individualized services in return for a fee. More than 160,000 of those victims cashed checks totaling $62 million, and thousands more are eligible to receive checks. Also notified were consumers who paid fraudsters perpetrating person-in-need scams and job scams via Western Union. In the past year, the Department has identified and contacted over 300,000 consumers who may be eligible for remission. Since March of 2020 more than 148,000 victims have received more than $366 million as a result of a 2017 criminal resolution with Western Union for the company’s willful failure to maintain an effective anti-money laundering program and its aiding and abetting of wire fraud.
Over the past year, the Department pursued cases against the perpetrators of “grandparent scams,” otherwise known as “person-in-need scams.” These scams typically begin when a fraudster, often based overseas, contacts an older adult, and poses as either a grandchild, other family member or someone calling on behalf of a family member. Call recipients are told that their family member is in jeopardy and is urgently in need of money. When recently sentencing one of eight perpetrators of a grandparent scam indicted under the Racketeer Influenced and Corrupt Organizations Act, a federal judge described such scams “heartbreakingly evil.” The Department is working with government partners and others to raise awareness about these schemes.
Reporting from consumers about fraud and fraud attempts is critical to law enforcements efforts to investigate and prosecute schemes targeting older adults. If you or someone you know is age 60 or older and has been a victim of financial fraud, help is available the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This Department of Justice Hotline, managed by the Office for Victims of Crime, is staffed by experienced professional who provide personalized support to callers by assessing the needs of the victim and identifying next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting or connect them with agencies, and provide resources and referrals on a case-by-case basis. More information about the Department’s elder justice efforts can be found on the Department’s Elder Justice website, www.elderjustice.gov.
Some of the cases that comprise today’s announcement are charges, which are merely allegations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
North County Man Indicted for Multimillion-Dollar Ponzi SchemeRead the Press Release
Assistant U. S. Attorneys Peter S. Horn (619) 546-6795 and Aaron P. Arnzen (619) 546-8384
NEWS RELEASE SUMMARY – October 4, 2022
SAN DIEGO – Richard Lee Ramirez is charged in a federal grand jury indictment with securities fraud and money laundering.
According to the indictment unsealed yesterday, Ramirez ran a fraudulent investment scheme with his company JMJ Capital Group (“JMJ”) and obtained at least $8 million from investors since 2018. The indictment alleges he used investors’ money for personal expenses and to make Ponzi-style payments to other investors, rather than advancing JMJ’s purported business and investment opportunities.
According to the indictment and statements made in court, Ramirez solicited investments in JMJ from dozens of people by falsely telling them JMJ purchased and resold personal protective equipment (PPE), factored accounts receivable, imported and sold furniture, and, among other things, contracted with a cruise line to refurbish ships’ air-conditioning units. Ramirez promised investors returns of approximately 10 to 14 percent within 90 days and 20 to 30 percent within one month, which purportedly would be generated by JMJ’s business opportunities. Ramirez misrepresented to investors that they could withdraw their money at any time. Also, as alleged in the indictment, he sent investors funding agreements and account statements that furthered his fraud by falsely representing returns and the value of investments with JMJ.
According to the indictment, instead of using investors’ money as he said he would, Ramirez used it to pay for luxury cars, travel, potential real-estate transactions, and other personal expenses, and to pay different investors who tried to redeem their investments and returns. Through his fraudulent scheme, according to the indictment and statements in court, Ramirez caused JMJ’s investors to lose money and ultimately stole at least $5 million of the $8 million or more he received from them.
Ramirez, a resident of North San Diego County, was arrested near Mira Mesa on Friday afternoon.
“The U.S. Attorney’s Office is committed to achieving justice for victims of financial fraud,” said U.S. Attorney Randy Grossman. Grossman also cautioned investors to perform their own due diligence and warned the public about business pitches and returns that “seem too good to be true.” Grossman thanked the prosecution team, the FBI and Securities and Exchange Commission for their excellent work on this case.
“Ramirez gained the trust of his clients and allegedly used that trust to fund a life of luxury for himself by taking the hard-earned money of his investors,” said Stacey Moy, Special Agent in Charge of the FBI San Diego Field Office. “The FBI remains committed to pursuing justice for all victims of fraud.”
The United States Attorney’s Office recognizes and appreciates the assistance of the Securities and Exchange Commission on this matter.
The next hearing in Ramirez’s criminal case is scheduled for November 7, 2022, at 2 p.m., before U.S. District Judge Cynthia A. Bashant.
DEFENDANT Case Number 22-CR-2264-BAS
Richard Lee Ramirez Age: 53 Carlsbad, CA
SUMMARY OF CHARGES
Securities Fraud – Title 18, U.S.C., Sections 78j(b), 78ff, and Title 17, C.F.R., Section 240.10b-5
Money Laundering – Title 18, U.S.C., Section 1957
Criminal Forfeiture – Title 18, U.S.C., Sections 981(a)(1)(C), 982(a)(1), 982(b), and Title 28, U.S.C., Section 2461(c)
Maximum penalty: Twenty years in prison and $5 million fine
AGENCIES
Federal Bureau of Investigations
Securities and Exchange Commission
*The charges and allegations contained in an indictment are merely accusations, and the defendant is considered innocent unless and until proven guilty.
Nampa Man Pleads Guilty to Federal Firearms ViolationRead the Press Release
BOISE – Isaac Bright, 29, of Nampa, Idaho, pleaded guilty to unlawful possession of a firearm, U.S. Attorney Josh Hurwit announced today.
According to court records, on January 29, 2022, a police officer with the Wilder Police Department attempted to conduct a traffic stop on a vehicle driven by Bright. Bright failed to stop, resulting in a high-speed pursuit. Bright was eventually arrested after discharging a firearm at a Wilder Police Officer. When Bright was arrested, he possessed a 9mm caliber pistol. At the time of the arrest, Bright was prohibited from possessing firearms due to a 2016 conviction for unlawful possession of a firearm.
Bright is scheduled to be sentenced on January 11, 2023. He faces a maximum penalty of ten years in federal prison, up to three years of supervised release, and a maximum fine of $250,000. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Hurwit, of the District of Idaho, made the announcement and commended the cooperative efforts of the Wilder Police Department and the Treasure Valley Metro Violent Crimes Task Force, which led to charges. The Task Force is comprised of federal, state, and local agencies, including the Federal Bureau of Investigation; Bureau of Alcohol, Tobacco, Firearms and Explosives; Ada County Sheriff’s Office; Boise Police Department; Caldwell Police Department; Canyon County Sheriff’s Office; Meridian Police Department; Nampa Police Department; and Idaho Department of Correction.
This case was prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit www.treasurevalleypartners.org.
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Multiple Federal Fraud Charges Filed Against San Francisco Father and SonRead the Press Release
SAN FRANCISCO - Santos Rene Soto and Santos Moises Soto III appeared in federal court today to face a federal indictment charging them with conspiracy, wire fraud, bank fraud, and false statements in a loan application, announced U.S. Attorney Stephanie M. Hinds and FBI San Francisco Special Agent in Charge Robert K. Tripp.
Santos Rene Soto (Santos), 59, and Santos Moises Soto III, also known as Saints Soto (Saints), 39, both of San Francisco, are described in the indictment as a father and son who engaged in multiple frauds. The first charged fraud involves Golden Spear LLC, an artificial intelligence (AI) technology company purportedly based in San Francisco and Barcelona, Spain. Saints was the CEO, and Santos acted as a board member. According to the indictment, GoldenSpear offered clothing retailers an “A.I. Fashion Assistant” that used “visual and textual algorithms” to help retailers identify specific fashion brands and clothing that their customers might want to purchase. The indictment describes that from 2017 to March 2020 Saints raised investment funds by representing to potential investors that GoldenSpear had entered into contracts with, or discussed investments or acquisitions by, numerous established business entities. These representations were false, according to the indictment. GoldenSpear allegedly raised more than $12 million in investment funds.
The indictment further describes that following the onset of the Covid-19 pandemic in early 2020, Saints and Santos began raising investment funds for a new subsidiary of GoldenSpear named “AI Health.” Saints and Santos informed potential investors that AI Health created a wearable device that, using AI, detected the COVID-19 virus in its wearer. Saints and Santos allegedly made numerous representations, including that the devices were being worn in a Los Angeles high school by students and staff, that AI Health was conducting a large study using data from a Los Angeles-based children’s hospital, and that a prominent accounting firm valued AI Health at more than $100 million. The indictment charges that these representations were false. AI Health, according to the indictment, raised more than $2.5 million from investors.
The indictment lastly alleges that Saints and Santos defrauded the Paycheck Protection Program (PPP), a federal government pandemic relief program. The PPP is administered by the U.S. Small Business Administration as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act. CARES is a federal law enacted in March 2020 to provide billions of dollars in emergency financial assistance to millions of Americans suffering from the economic effects of the COVID-19 pandemic. The PPP provided forgivable loans to small businesses for job retention and limited other business expenses. The indictment describes that on April 2, 2020, GoldenSpear submitted a PPP application in which Saints and Santos represented that GoldenSpear had 33 employees located in the United States, a monthly payroll of $267,899, and a monthly office rental expense of approximately $18,000. Instead, the indictment alleges, GoldenSpear averaged seven to eight U.S.-based employees and had an average monthly payroll of $67,000 or less. Additionally, the indictment alleges that the address listed on the PPP application for the commercial lease was in fact Santos’s residential address. A PPP loan in an amount of $669,700 was approved and issued based on the misrepresentations of Santos and Saints, the indictment charges.
Santos and Saints made their initial appearance in federal court today before United States Magistrate Judge Thomas S. Hixson. Their next scheduled appearance is scheduled before the same judge on October 12 at 10:30 a.m.
Santos and Saints are charged with one count of conspiracy in violation of 18 U.S.C. § 371, which carries a maximum sentence of five years in federal prison. Saints and Santos are also charged with one count of conspiracy to commit wire fraud in violation of 18 USC §§ 1343 and 1349, which carries a maximum 20 year sentence. Saints is also charged with two counts and Santos is charged with one count of wire fraud, and each count carries a maximum sentence of 20 years. Santos and Saints also face one count of bank fraud in violation of 18 U.S.C. § 1344 and one count of making false statements on a loan application in violation of 18 U.S.C. § 1014, each of which carries a maximum sentence of 30 years. The court may also order additional fines, restitution, and forfeiture on each count. However, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
The charges in the indictment are merely allegations and the defendants are presumed innocent unless proven guilty in a court of law.
The case is being prosecuted by the Corporate and Securities Fraud Section of the U.S. Attorney’s Office for the Northern District of California. Ross Weingarten and Alethea Sargent are the Assistant U.S. Attorneys who are prosecuting the case, with the assistance of Margoth Turcios. The prosecution is the result of an investigation by the FBI.
Morgantown woman admits to methamphetamine chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Adrianna Bean, of Morgantown, West Virginia, has admitted to a drug charge, United States Attorney William Ihlenfeld announced.
Bean, 22, pleaded guilty today to one count of “Possession with Intent to Distribute Methamphetamine.” Bean admitted to having methamphetamine in July 2021 in Monongalia County.
Bean faces up to 20 years of incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Zelda E. Wesley is prosecuting the case on behalf of the government. The Drug Enforcement Administration Clarksburg Regional Office; the FBI Clarksburg; the Mon Metro Drug Task Force, a HIDTA-funded initiative; the West Virginia State Police; the Monongalia County Sheriff’s Office; the Morgantown Police Department; the WVU Police Department; the DEA Cincinnati District Office; the DEA Detroit Field Division; and the FBI Detroit investigated.
U.S. Magistrate Judge Michael John Aloi presided.
See related case here: https://www.justice.gov/usao-ndwv/pr/michigan-morgantown-drug-ring-disrupted-federal-indictment
Middle District of Florida Takes Part in Justice Department’s Wide-Ranging Efforts to Protect Older AdultsRead the Press Release
Tampa, Florida – The Justice Department announced today the results of its efforts over the past year to protect older adults from fraud and exploitation. During the past year, the Department and its law enforcement partners tackled matters that ranged from mass-marketing scams that impacted thousands of victims to bad actors scamming their neighbors. Substantial efforts were also made over the last year to return money to fraud victims. Today, the Department also announced it is expanding its Transnational Elder Fraud Strike Force to amplify efforts to combat scams originating overseas.
“We are intensifying our efforts nationwide to protect older adults, including by more than tripling the number of U.S. Attorneys’ offices participating in our Transnational Elder Fraud Strike Force dedicated to disrupting, dismantling and prosecuting foreign-based fraud schemes that target American seniors,” said Attorney General Merrick B. Garland. “This expansion builds on the Justice Department’s existing work to hold accountable those who steal funds from older adults, including by returning those funds to the victims where possible.”
“Protecting our nation’s most vulnerable populations is a priority of our Office,” stated U.S. Attorney Roger Handberg for the Middle District of Florida. “We will continue to work diligently with our partners in law enforcement and the community to ensure that our seniors are safe and secure from fraud, scams, and financial exploitation.”
During the period from September 2021 to September 2022, Department personnel and its law enforcement partners pursued approximately 260 cases involving more than 600 defendants, both bringing new cases and advancing those previously charged. This past year, the Middle District of Florida pursued 10 cases involving 11 defendants, who collectively stole more than $22 million from fraud victims, the majority of whom were elderly. See chart below for details.
United States Attorney’s Office for the Middle District of Florida Elder Fraud Cases
Charged Cases
Defendant(s) (Age)
Charge(s)
Maximum Imprisonment
Type of Fraud
Approximate Intended Loss
Amount
Tampa Division
Margarett Chevry (71)
Conspiracy to commit wire fraud
Maximum Prison Term: 20 Years
Wire fraud
Maximum Prison Term: 20 Years
Romance fraud
$727,000
Phillip Roy Wasserman (65)
Conspiracy to commit mail and wire fraud
Maximum Prison Term: 20 Years
Wire fraud
Maximum Prison Term: 20 Years
Mail fraud
Maximum Prison Term: 20 Years
Tax evasion
Maximum Prison Term: 5 Years
Fraud and false statements
Maximum Prison Term: 5 Years
Investment fraud
$6.3 million
These elder fraud cases from the Tampa Division are being handled by AUSAs Jennifer Peresie, Rachelle DesVaux Bedke, and Rachel Jones
Orlando Division
Keith Ingersoll (45)
James Adamczyk (65)
Wire fraud
Maximum Prison Term: 20 Years
Investment fraud
$10 million
This elder fraud case from the Orlando Division is being handled by AUSA Amanda Daniels
Adjudicated Cases
Tampa Division
Kenneth Rossman (63)
Conspiracy
Maximum Prison Term: 5 Years
Aiding and assisting fraud and false statements
Maximum Prison Term: 3 years
Investment fraud
$6.3 million
William Perez (27)
Conspiracy to commit money laundering
Maximum Prison Term: 20 Years
Government impersonator fraud
$246,000
These elder fraud cases from the Tampa Division are being handled by AUSA Rachelle DesVaux Bedke and SAUSA Suzanne Huyler
Sentenced Cases
Tampa Division
Sarafina Braddy (24)
Conspiracy to commit money laundering
Sentence Imposed: 7 days in federal prison
Jamaican lottery fraud
$300,000
Jeffrey Jedlicki (51)
Conspiracy to commit wire fraud
Sentence Imposed: 8 years in federal prison
Investment fraud
$3.24 million
Tracy Jedlicki (56)
Conspiracy to commit wire fraud
Sentence Imposed: 30 months in federal prison
Investment fraud
$3.24 million
Lori Owen (50)
Conspiracy to commit bank, wire, and mail fraud
Sentence Imposed: 5 years, 3 months in federal prison
Investment fraud
$1.38 million
These elder fraud cases from the Tampa Division were handled by AUSAs Rachel Jones and David Chee
Fort Myers Division
Nicole Sprague (38)
Conspiracy to commit mail fraud, mail fraud
Sentence Imposed: 2 years, 9 months in federal prison
Technical support scam
$298,000
This elder fraud case from the Fort Myers Division was handled by AUSA Yolande Viacava
As part of the Middle District of Florida’s elder fraud efforts, we have engaged in community outreach efforts to citizens and industry professionals to raise awareness about scams and exploitation and ways to prevent victimization. This year, the MDFL partnered with the Federal Bureau of Investigation and the Gulfport Police Department to engage senior citizens in discussions about prevalent fraud schemes and various prevention strategies.
The Department also highlighted three other efforts: expansion of the Transnational Elder Fraud Task Force, success in returning money to victims and efforts to combat grandparent scams.
The Department announced that as part of its continuing efforts to protect older adults and bring perpetrators of fraud schemes to justice it is expanding the Transnational Elder Fraud Strike Force, adding 14 new U.S. Attorney’s Offices. Expansion of the Strike Force will help to coordinate the Department’s ongoing efforts to combat largest and most harmful fraud schemes that target or disproportionately impact older adults. The Middle District of Florida is one of the original strike force districts.
In the past year, the Department has notified over 550,000 people that they may be eligible for remission payments. Notifications were made to consumers whose information was sold by one of three data companies prosecuted by the Department and were later victims of “sweepstakes” or “astrology” solicitations that falsely promised prizes or individualized services in return for a fee. More than 150,000 of those victims cashed checks totaling $52 million, and thousands more are eligible to receive checks. Also notified were consumers who paid fraudsters perpetrating person-in-need scams and job scams via Western Union. In the past year, the Department has identified and contacted over 300,000 consumers who may be eligible for remission. Since March of 2020 more than 148,000 victims have received more than $366 million as a result of a 2017 criminal resolution with Western Union for the company’s willful failure to maintain an effective anti-money laundering program and its aiding and abetting of wire fraud.
Over the past year, the Department pursued cases against the perpetrators of “grandparent scams,” otherwise known as “person-in-need scams.” These scams typically begin when a fraudster, often based overseas, contacts an older adult and poses as either a grandchild, other family member or someone calling on behalf of a family member. Call recipients are told that their family member is in jeopardy and is urgently in need of money. When recently sentencing one of eight perpetrators of a grandparent scam indicted under the Racketeer Influenced and Corrupt Organizations Act, a federal judge described such scams “heartbreakingly evil.” The Department is working with government partners and others to raise awareness about these schemes.
Reporting from consumers about fraud and fraud attempts is critical to law enforcements efforts to investigate and prosecute schemes targeting older adults. If you or someone you know is age 60 or older and has been a victim of financial fraud, help is available the National Elder Fraud Hotline: 1-833 FRAUD-11 (1-833-372-8311). This Department of Justice Hotline, managed by the Office for Victims of Crime, is staffed by experienced professional who provide personalized support to callers by assessing the needs of the victim and identifying next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting or connect them with agencies, and provide resources and referrals on a case-by-case basis. The hotline is staffed seven days a week from 6:00 a.m. to 11:00 p.m. English, Spanish and other languages are available. More information about the Department’s elder justice efforts can be found on the Department’s Elder Justice website, www.elderjustice.gov.
Some of the cases that comprise today’s announcement are charges, which are merely allegations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Massachusetts Man Sentenced to 66 Months in Federal Prison for Illegally Possessing FirearmsRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that TEVIN GONZALEZ, 25, of Holyoke, Massachusetts, was sentenced today by U.S. Circuit Judge Sarah A. L. Merriam in Bridgeport to 66 months of imprisonment, followed by two years of supervised release, for unlawfully possessing firearms.
According to court documents and statements made in court, in the summer of 2021, Gonzalez was involved in shooting and fire-bombing incidents in and around Springfield, Massachusetts. Gonzalez was arrested at a hotel in Enfield, Connecticut, on September 3, 2021. At the time of his arrest, he possessed two semiautomatic pistols.
Gonzalez’s criminal history includes convictions in Massachusetts for felony drug, firearm and resisting arrest offenses. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
Gonzalez has been detained since his arrest. On March 25, 2022, he pleaded guilty to unlawful possession of firearms by a felon.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Massachusetts State Police, Enfield Police Department and Springfield Police Department.
The case was prosecuted by Assistant U.S. Attorney Brendan Keefe through 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. In May 2021, the Justice 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.
Madison County Man Charged with Child Pornography Offenses and Delay of MailRead the Press Release
SYRACUSE, NEW YORK – Ryan Berte, age 33, of Eaton, New York, was indicted on September 29, 2022, for receiving and possessing child pornography and for delay of mail while previously serving as a rural mail carrier for the United States Postal Service.
The announcement was made by United States Attorney Carla B. Freedman and Matthew Modafferi, Special Agent in Charge of the United States Postal Service-Office of Inspector General (USPS-OIG), Northeast Area Field Office.
The charges in the indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty.
The charges filed against Berte carry a maximum sentence of 20 years in prison, a mandatory minimum term of 5 years in prison, a fine of up to $250,000, and a term of supervised release of between 5 years and life. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
Berte was arraigned yesterday in Syracuse, New York, before United States Magistrate Judge Andrew T. Baxter, and was detained pending further proceedings.
This case was investigated by the USPS-OIG and the New York State Police, Bureau of Criminal Investigation (BCI), Computer Crimes Unit (CCU). This case is being prosecuted by Assistant United States Attorney Adrian S. LaRochelle as part of Project Safe Childhood.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorney’s offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Luzerne County Man Sentenced to Five Years’ Imprisonment for Methamphetamine TraffickingRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Michael Marchese, age 30, of Swoyersville, Luzerne County, was sentenced on October 3, 2022, by U.S. District Court Judge Robert D. Mariani, to five years’ imprisonment on the charge of conspiracy to distribute more than fifty grams of methamphetamine.
According to United States Attorney Gerard M. Karam, Marchese previously entered a guilty plea and admitted to conspiring with other individuals to distribute methamphetamine in the Luzerne County area in 2020. The charge resulted from an investigation in May 2020 in which police obtained a search warrant for a residence in Swoyersville where Marchese was residing and seized crystal methamphetamine, a scale, drug packing materials, and $2245 in U.S. Currency.
The investigation was conducted by the Luzerne County Drug Task Force, the Kingston Police Department, the Swoyersville Police Department and the Bureau of Alcohol, Tobacco and Firearms (ATF). Assistant United States Attorney Robert J. O’Hara prosecuted the case.
This case is also part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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Lexington Woman Sentenced for Wire Fraud and Money LaunderingRead the Press Release
LEXINGTON, Ky. – A Lexington woman, Jyoti Agrawal, 51, was sentenced to 42 months in federal prison on Friday, by Chief U.S. District Judge Danny C. Reeves, for conspiracy to commit wire fraud, wire fraud, and money laundering.
According to evidence at her trial, Agrawal was a co-owner of the company ScienceTomorrow, with Subhadarshi Nayak. In December 2013, Agrawal agreed with Nayak to electronically submit a proposal containing a fabricated letter of support from a key subcontractor, in order to increase their chances of receiving a Phase II SBIR grant from the U.S. Department of Energy (DOE), in the amount of $999,266, to research and develop a scanning electron microscope detector. Agrawal knew the fake letter inflated the budget an out-of-state university had provisionally authorized in support of the project.
In 2014, the DOE awarded the Phase II grant to ScienceTomorrow, in part relying on this misrepresentation. Agrawal ultimately received more than a million dollars for the electron detector project from the DOE, and $500,000 from Kentucky’s state matching funds program, which depends on the lawful receipt of a federal grant award.
The evidence further showed that Agrawal had controlled the money and that Nayak left the project early on. Ultimately, the out-of-state university did not work on the project, as proposed, and received no payments. Bank records established Agrawal had personally accumulated over $440,000 of DOE grant funds during the two-year performance period. Agrawal also spent an additional $146,000 of the DOE Phase II funds on an Executive MBA degree in Chicago, during this time, partially supporting her money laundering conviction. Subsequently, Agrawal submitted false certifications to the DOE, stating all funds had been expended in accordance with the DOE’s terms and conditions; however, the evidence at trial revealed she hadunlawfully retained over $300,000 of the DOE funds she certified she had spent on the project.
A federal jury convicted Agrawal in April 2022. Nayak was sentenced in December 2021.
“When grants are fraudulently obtained and their funding is misappropriated, it is more than just a theft of money,” said Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky. “The loss of taxpayer money is bad enough; but worthy applicants are also deprived of fair opportunities and the fundamental goals of the important programs are frustrated. It causes real damage and, as this prosecution and sentence confirm, can have real consequences.”
“Protecting the integrity of the Small Business Innovation Research and other grant programs is a priority for the EPA Office of Inspector General,” said Environmental Protection Agency Inspector General Sean O’Donnell. “We take seriously our responsibility to identify and investigate attempts by grantees to defraud the federal government and taxpayers.”
“This sentencing demonstrates the ongoing commitment of the Department of Energy Office of Inspector General to protect the DOE from fraud, waste and abuse. False claims and other misrepresentations related to Department grants will not be tolerated, whether in the SBIR program or any other,” said Department of Energy Inspector General Teri L. Donaldson, “I would like to thank our investigators and forensic accountants as well as the EPA OIG and the U.S. Attorney’s Office for their excellent work on this joint investigation.”
As part of her sentencing, Agrawal was ordered to pay restitution in the amount of $1,048,255.00 to U.S. Department of Energy and $500,000.00 to the Kentucky Cabinet for Economic Development, Office of Entrepreneurship and Small Business Innovation (SBIR state matching funds program).
Under federal law, Agrawal must serve 85 percent of her prison sentence; and upon her release from prison, she will be under the supervision of the U.S. Probation Office for three years.
United States Attorney Shier; Inspector General O’Donnell; Inspector General Donaldson and Cynthia Bruce, Special Agent in Charge, Defense Criminal Investigative Service, U.S. Department of Defense, jointly announced the sentence.
The investigation was conducted by the EPA-OIG, DOE-OIG, and DOD DCIS. The United States was represented by Assistant United States Attorney Tashena A. Fannin.
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Lee County Man Sentenced to 38 Years in Prison for Sexual Exploitation of Two ChildrenRead the Press Release
Montgomery, Alabama – Today, U.S. Attorney Sandra J. Stewart announced that Brandon Thomas Hart, 33, from Smiths Station, Alabama, was sentenced to 38 years in prison for sexually exploiting two children.
According to Hart’s plea agreement and other court records, an investigation began in September 2020 when law enforcement in Dallas, Texas became aware of sexually explicit images—images that appeared to include minors— being shared through a messaging app called Kik. FBI agents in Texas were able to trace the origin of the messages back to Smiths Station and Hart was identified as a potential suspect. Further investigation by the Lee County, Alabama Sheriff’s Office and the FBI confirmed those suspicions. In his plea agreement, Hart specifically admitted to inducing two minors under the age of 18 to engage in sexually explicit conduct for him to photograph. Hart also admitted that he recorded explicit images of the two minors while they were not conscious and distributed the images online using Kik.
On June 29, 2022, Hart pleaded guilty to the charges. Three months later, on September 30, Hart received the 38-year sentence. Following his prison sentence, Hart will be on supervised release for the remainder of his life and will be required to register as a sex offender. There is no parole in the federal system. Related state charges remain pending.
This case was investigated by the Lee County Sheriff’s Office and the FBI. Assistant United States Attorney J. Patrick Lamb prosecuted the case.
Kanawha County Man Pleads Guilty to Federal Gun CrimeRead the Press Release
CHARLESTON, W.Va. – Jonathan Kennedy, 41, of St. Albans, pleaded guilty today to being a felon in possession of a firearm.
According to court documents and statements made in court, on June 30, 2022, law enforcement officers were dispatched to Leon Sullivan Way in Charleston in response to a report of shots fired. Officers found a bullet hole at the entrance of Jet Life Apparel and obtained a search warrant for the store’s video surveillance system, which showed two firearms inside the store: a Dickinson, model XXPA, 12-gauge shotgun; and a Smith & Wesson, model M&P 15, 5.56-caliber rifle. The video surveillance footage also showed Kennedy running across the store while holding the shotgun following an apparent altercation outside.
Officers recovered both firearms from a vehicle in an alley near Jet Life Apparel. Each firearm was loaded with a high-capacity drum magazine.
Federal law prohibits a person with a prior felony conviction from possessing a firearm or ammunition. Kennedy knew he was prohibited from possessing a firearm because of his felony convictions for interstate travel in aid of drug trafficking and use of a communication facility in furtherance of an unlawful act in the United States District Court for the Southern District of West Virginia on December 3, 2014.
Kennedy is scheduled to be sentenced on January 25, 2023, and faces a maximum penalty of 15 years in prison, three years of supervised release, and a $250,000 fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Charleston Police Department.
Chief United States District Judge Thomas E. Johnston presided over the hearings. Assistant United States Attorney Nowles Heinrich is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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-145.
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Justice Department Releases Information on Efforts to Protect the Right to VoteRead the Press Release
Consistent with longstanding Justice Department practices and procedures, the Civil Rights Division is providing information about its efforts to ensure that all qualified voters have the opportunity to cast their ballots and have their votes counted free of discrimination, intimidation and suppression in the upcoming Nov. 8, 2022, general election.
The Civil Rights Division is responsible for ensuring compliance with the civil provisions of federal statutes that protect the right to vote, and with the criminal provisions of federal statutes prohibiting discriminatory interference with that right. The Civil Rights Division undertakes its important work to protect the right to vote all throughout each year, and this year’s work continues longstanding department tradition.
The Civil Rights Division’s Voting Section enforces the civil provisions of a wide range of federal statutes that protect the right to vote including: the Voting Rights Act; the National Voter Registration Act; the Uniformed and Overseas Citizens Absentee Voting Act; the Help America Vote Act; and the Civil Rights Acts. Collectively, these laws:
- Prohibit election practices that have either a discriminatory purpose or a discriminatory result on account of race, color or language minority status;
- Prohibit intimidation of voters;
- Allow voters who need assistance in voting because of disability or inability to read or write to receive assistance from a person of their choice (other than agents of their employer or union);
- Require minority language election materials and assistance in certain jurisdictions;
- Require accessible voting systems for voters with disabilities;
- Require that provisional ballots be offered to voters who assert they are registered and eligible to vote in the jurisdiction, but whose names do not appear on poll books;
- Require states to provide for absentee voting for uniformed service members serving away from home, their family members also away from home due to that service, and U.S. citizens living abroad; and
- Require covered states to offer the opportunity to register to vote through offices that provide driver licenses, public assistance and disability services, as well as through the mail; and to take steps regarding maintaining voter registration lists.
The Civil Rights Division’s Disability Rights Section enforces the Americans with Disabilities Act (ADA), which prohibits discrimination in voting based on disability. The ADA applies to all aspects of voting, including voter registration, selection and accessibility of voting facilities, and the casting of ballots on Election Day or during early voting, whether in-person or absentee.
The Civil Rights Division’s Criminal Section enforces federal criminal statutes that prohibit voter intimidation and voter suppression based on race, color, national origin or religion.
Leading up to Election Day, Nov. 8, 2022, the Civil Rights Division will implement a comprehensive program to help ensure the right to vote, including the following:
- The Civil Rights Division will lead monitoring in the field on Election Day to observe compliance with federal voting rights laws.
- Division attorneys in Washington, D.C., will be ready to receive complaints of potential violations of any of the statutes the Civil Rights Division enforces. Attorneys in the division will coordinate within the Department of Justice and will take appropriate action concerning these complaints before, during, and after Election Day.
- Individuals with complaints related to possible violations of federal voting rights laws can call the department’s toll-free telephone line at 800-253-3931, and also can submit complaints through a link on the department’s website, at https://civilrights.justice.gov/.
- Individuals with questions or complaints related to the ADA may call the Justice Department’s toll-free ADA information line at 800-514-0301 or 800-514-0383 (TDD), or submit a complaint through a link on the department’s ADA website, at gov.
All complaints related to violence, threats of violence or intimidation at a polling place should be reported first to local police authorities by calling 911; after alerting local law enforcement to such emergencies by calling 911, the public should contact the department.
Closer to election day, the department expects to provide additional information regarding its efforts to protect the right of vote and the election process, including where the Civil Rights Division will monitor elections in the field on Election Day.
For more information about the department’s work to ensure compliance with federal civil and criminal laws related to voting, please visit Voting | Department of Justice.
Justice Department Finds Nevada Unnecessarily Segregates Children with Behavioral Health Disabilities in InstitutionsRead the Press Release
The Department of Justice announced today that it has concluded an investigation into whether the State of Nevada subjects children with behavioral health disabilities to unnecessary institutionalization in violation of Title II of the Americans with Disabilities Act (ADA).
The Justice Department determined that Nevada violates the ADA by failing to provide adequate community-based services to children with behavioral health disabilities, relying instead on segregated, institutional settings like hospitals and residential treatment facilities. Hundreds of children are isolated in residential treatment facilities each year though they could remain with their families if provided necessary, community-based services. Over a quarter of these children stay over a year, and some of them are placed outside of Nevada, far from their homes. Nevada also fails to connect children who have been placed in institutions with services to allow them to successfully return to the community.
“Children with disabilities should receive the services they need to remain with their families and in their communities,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Civil Rights Division looks forward to working with Nevada to bring the State into compliance with federal law and prevent the unnecessary institutionalization of children.”
The department’s investigation found Nevada lacks needed community-based services such as intensive in-home services, crisis services, intensive care coordination, respite, therapeutic foster care and other family-based supports. As a result, hundreds of Nevada children are segregated for months, often very far from home. Nevada officials have expressed a desire to work with the department to resolve the identified issues.
Additional information about the Civil Rights Division of the Justice Department is available on its website at www.justice.gov/crt.
Justice Department Expands Transnational Elder Fraud Strike Force to Protect Older Americans from FraudRead the Press Release
The Justice Department announced today that as part of its continuing efforts to protect older adults and to bring perpetrators of fraud schemes to justice, it is expanding its Transnational Elder Fraud Strike Force, adding 14 additional U.S. Attorney’s Offices. Since 2019, current Strike Force members — including the Department’s Consumer Protection Branch, six U.S. Attorneys’ Offices, the FBI, U.S. Postal Inspection Service, and Homeland Security Investigations — have brought successful cases against the largest and most harmful global elder fraud schemes and worked with foreign law enforcement to disrupt criminal enterprises, disable their infrastructure, and bring perpetrators to justice. Expansion of the Strike Force will help to coordinate the Department’s ongoing efforts to combat sophisticated fraud schemes that target or disproportionately impact older adults. The expansion will increase the total number of U.S. Attorneys’ Offices comprising the Strike Force from six to 20, including all of the U.S. Attorneys’ Offices in the states of California, Arizona, Texas, Florida, Georgia, Maryland, and New York.
“We are intensifying our efforts nationwide to protect older adults, including by more than tripling the number of U.S. Attorneys’ offices participating in our Transnational Elder Fraud Strike Force dedicated to disrupting, dismantling and prosecuting foreign-based fraud schemes that target American seniors,” said Attorney General Merrick B. Garland. “This expansion builds on the Justice Department’s existing work to hold accountable those who steal funds from older adults, including by returning those funds to the victims where possible.”
“At the FBI, we swear an oath to protect the American people, and this includes our most vulnerable populations like the elderly,” said FBI Director Christopher Wray. “Efforts like these display our unwavering dedication to protecting our older citizens and combating fraudsters who look to exploit them. I am proud of the work by FBI agents and analysts, as well as our local, state, and federal law enforcement partners, in bringing those criminals to justice. If you think you may be a victim of elder fraud, or you know someone who is, we encourage you to reach out. We are here to help.”
“The U.S. Postal Inspection Service is a longstanding member of the Transnational Elder Fraud Strike Force," said Chief Gary Barksdale of the Postal Inspection Service. Postal inspectors are proud to contribute to the impactful cases that help numerous victims, many of them older Americans, and aid in the recovery of their losses through restitution. Postal inspectors have a long history of protecting the vulnerable, and our ongoing efforts demonstrate the Postal Inspection Service’s continued commitment to the task. We are excited to learn of the Department of Justice’s decision to expand the strike force.”
The strike force expansion will further enhance the Department’s existing efforts to protect older adults from fraud and exploitation. During the period from September 2021 to September 2022, Department personnel and its law enforcement partners pursued approximately 260 cases involving more than 600 defendants, both bringing new cases and advancing those previously charged. The matters tackled by the Department and its partners ranged from mass-marketing scams that impacted thousands of victims to bad actors scamming their neighbors. Substantial efforts were also made over the last year to return money to fraud victims.
In the past year, the Department has held multiple transnational organized crime syndicates to account for their targeting of older Americans. On Sept. 16, 2022, for instance, the Department’s Consumer Protection Branch and the U.S. Attorney’s Office for the Southern District of California secured a guilty plea from the Chief Executive Officer of a global telecommunications provider for serving as a gateway carrier for Indian-based fraudulent robocalls that targeted elderly Americans. Similarly, in September 2021, the U.S. Attorneys’ Offices for the Eastern and Northern Districts of Texas secured two indictments collectively charging 34 individuals with, allegedly, facilitating a range of schemes, including romance scams. In March 2022, an individual charged by the U.S. Attorney’s Office for the Central District of California was sentenced to nine years in prison for participating in an international scheme that placed phone calls purportedly from government agents warning victims that they faced arrest or that their identities or assets were in jeopardy.
Many schemes connected to transnational criminal organizations involved impersonation to convince victims into sending money to fraudsters. “Grandparent scams” are especially pernicious versions of such schemes. Those scams typically begin when a fraudster contacts an older adult and poses as either a family member or someone calling on behalf of a family member. Call recipients are told that their family member is in jeopardy and urgently needs money. When recently sentencing one of eight perpetrators of a grandparent scam indicted under the Racketeer Influenced and Corrupt Organizations (RICO) Act, a federal judge described such scams “heartbreakingly evil.” That case was brought by the Department’s Consumer Protection Branch and the U.S. Attorney’s Office for the Southern District of California and investigated by the FBI’s San Diego Elder Justice Task Force. The Department also prosecuted other grandparent scam cases during the last year in the Middle District of Pennsylvania, Western District of Pennsylvania, District of Maryland, Central District of California, Southern District of Illinois, and Southern District of Indiana.
Other cases advanced by the Department over the past year with a more local nexus involved schemes in which individuals who knew their victims took advantage of those victims’ trust. For instance, in March 2022, the U.S. Attorney’s Office for the Northern District of Ohio convicted at trial an investment advisor, charged in 2020, who stole more than $9.3 million from his customers; the advisor was sentenced to nearly 22 years in prison. In September 2022, the U.S. Attorney’s Office for the Eastern District of Missouri secured charges against a bank branch manager who, allegedly, stole $175,000 from elderly customers by, among other things, logging into customer accounts and transferring funds.
Efforts to Return Money to Victims
The Department and its law enforcement partners continue to use all of the tools available to return money to elder fraud victims, including forfeiture, remission, restoration, restitution, and direct payments. As part of the Department’s efforts since September 2021, approximately 550,000 fraud victims were notified that they could be eligible to receive a payment. More than 150,000 of those victims cashed checks totaling $52 million,* and thousands more are eligible to receive checks.
In one matter resolved on Sept. 15, 2022, Wiland Inc., a consumer data company, agreed through a non-prosecution agreement to pay $4.4 million in victim compensation for its acknowledged sale of consumer data to operators of fraudulent schemes. Victims of fraud schemes that used consumer data sold by Wiland (many of whom were older adults) were targeted with “sweepstakes” or “astrology” solicitations that falsely promised prizes or individualized services if victims paid a fee. Many victims lost thousands of dollars. The matter was prosecuted by the Department’s Consumer Protection Branch and the U.S. Attorney’s Office for the District of Colorado, and was investigated by the U.S. Postal Inspection Service.
Victim compensation paid by Wiland as part of its resolution with the Department will be added to a fund previously developed in connection with cases brought against two other marketing companies by the Department’s Consumer Protection Branch and the U.S. Attorney’s Office for the District of Colorado, with the support of the U.S. Postal Inspection Service. The two companies, Epsilon Data Management LLC and KBM Group LLC, entered into deferred prosecution agreements in January 2021 and June 2021, respectively, that required them to distribute $127.5 million and $33.5 million, respectively, to victims who were included on consumer lists sold by Epsilon and KBM Group to fraudsters. In addition, all three of the companies agreed through their resolutions to implement significant compliance and reporting obligations to prevent the recurrence of misconduct.
Compensation payments associated with the Epsilon, KBM, and Wiland resolutions have been, and will continue to be, sent directly to eligible victims identified through a review of relevant evidence by the Department of Justice. Information about compensation payments is available here.
The Department also continued its efforts to return money to consumers, especially older Americans, who were victimized by scams and paid fraudsters via Western Union. In the past year, the Department has identified and contacted over 300,000 consumers who may be eligible for remission. Since March 2020, more than 148,000 victims have received more than $366 million as a result of a 2017 criminal resolution with Western Union for the company’s willful failure to maintain an effective anti-money laundering program and its aiding and abetting of wire fraud. The Money Laundering and Asset Recovery Section of the Department’s Criminal Division and numerous U.S. Attorneys’ Offices secured and are administering the resolution with Western Union. Information about payments made through the Western Union resolution is available here.
In addition, the FBI’s Internet Crimes Complaint Center (IC3) successfully employed its Recovery Asset Team (RAT) to identify ongoing elder fraud schemes and to freeze victims’ funds before they could reach fraudsters’ pockets. Over the last 12 months, the IC3 RAT worked approximately 375 incidents involving older adult victims, freezing over $21 million, making recovery and return of those funds possible.
The Consumer Financial Protection Bureau also published a report that provides the first comprehensive description of the experience of how and when older adults recover funds they have lost to fraud and exploitation. The report derives insights from interviews with older adults, caregivers, and professionals.
Public Education, Outreach, and Fraud Reporting
In conjunction with today’s announcement, the Department, the Consumer Financial Protection Bureau, the Department of Health and Human Services’ Administration for Community Living, the COPS Office, AmeriCorps Seniors, and other agencies and components are conducting outreach to raise public awareness of grandparent scams. Free awareness materials related to grandparent scams are available from the CFPB here and from the FTC here.
The Department also commended FinCEN for releasing an advisory to alert financial institutions to the rising trend of elder financial exploitation. Filings under the Bank Secrecy Act (BSA) are a critical tool in the fight to protect older adults, and the Department is engaging with financial institutions to amplify FinCEN’s advisory and emphasize the importance of BSA filings.
Reporting from consumers about fraud and fraud attempts is critical to law enforcement efforts to investigate and prosecute schemes targeting older adults. If you or someone you know is age 60 or older and has been a victim of financial fraud, help is available through the National Elder Fraud Hotline: 1-833 FRAUD-11 (1-833-372-8311). This Department of Justice Hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim and identifying next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting or connect them with agencies, and provide resources and referrals on a case-by-case basis. The hotline is staffed seven days a week from 6:00 a.m. to 11:00 p.m. ET. English, Spanish, and other languages are available. More information about the Department’s elder justice efforts can be found on the Department’s Elder Justice website, www.elderjustice.gov.
Some of the cases referenced in today’s announcement are charges, which are merely allegations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
* The original version of this release stated the number of victims as 160,000 and the check amount totaling $62 million. The correct numbers are 150,000 victims and $52 million.
Jury Convicts Virgin Islands Man of Multi-Kilogram Cocaine ConspiracyRead the Press Release
Orlando, Florida – United States Attorney Roger B. Handberg announces that a federal jury has found Avery Lans (55, Virgin Islands) guilty of conspiracy to distribute cocaine. Lans faces a minimum mandatory sentence of 10 years, and up to life, in federal prison. His sentencing hearing is scheduled for December 5, 2022. Lans and his conspirator, Wayne Ellsworth Stout, Jr. (35, Miami), were indicted on June 15, 2022. Stout pleaded guilty on August 19, 2022.
According to the evidence presented at trial, on June 1, 2022, Stout drove from Miami to Orlando and retrieved a grey and teal duffle bag from a storage locker in the Edgewater area. Agents from Homeland Security Investigations (HSI) were conducting surveillance on Stout as he traveled from Miami to Orlando and as Stout left the storage locker and headed to the parking lot of a restaurant in the Winter Park area. At approximately 1:45 p.m., Lans arrived and received the duffle bag during a short, 30-second meeting. After circling the block, Lans led HSI surveillance agents to the corner of Lee and Wymore, where Lans abruptly turned in an attempt to escape while dropping the duffle bag out of his passenger side window. After a brief, high-speed chase, Lans was detained and the duffle bag was retrieved. The bag contained five kilograms of cocaine, wrapped in black tape with a marking on it:
When HSI agents searched the storage locker in Edgewater, they located three coolers containing 109 kilograms of cocaine, some of which contained the same black and gold marking as the five-kilogram bricks that Lans was carrying:
A kilogram of cocaine was estimated to be worth at least approximately $27,000. Lans was carrying $135,000 worth of cocaine at the time he attempted to flee. The storage locker contained cocaine valued at nearly $3 million.
This case was investigated by Homeland Security Investigations, with assistance from the Orange County Sheriff’s Office, the Orlando Police Department, the Sunrise Police Department, and the Golden Beach Police Department. It is being prosecuted by Assistant United States Attorney Dana E. Hill.
Jury Convicts Illinois Man for sending MDMA through the U.S. Postal Service for DistributionRead the Press Release
East St. Louis, Ill. – Delon Echols, 31, of Belleville, Illinois, was convicted by a federal jury on Thursday, September 29, 2022, for sending MDMA through the mail with the intent to later distribute it.
According to court documents and evidence presented at trial, Echols utilized the Dark Web to order
MDMA from the Netherlands. Echols shipped the drugs through the U.S. Postal service to an unwitting individual in Mascoutah, Illinois. In August of 2019, the individual learned about the package containing narcotics and immediately went to the Mascoutah Police Department. Police discovered that 911.5 grams of MDMA was concealed in vacuum sealed bags inside whey protein jugs to avoid detection. At trial, the individual discussed how Echol's actions put both her and her family at risk.“This case serves as a great example of how a concerned member of the public working with law enforcement can help make our communities safer,” said United States Attorney Rachelle Aud Crowe.
“I join with our law enforcement partners in thanking her for her courage in coming forward. This case also demonstrates yet another way in which drug trafficking is not a victimless crime.”Sentencing has been scheduled for January 10, 2023, in front of United States District Judge
Stephen P. McGlynn. Attempted Possession with Intent to Distribute is punishable up to 20 years in prison.The Drug Enforcement Administration, Mascoutah Police Department, and United States Postal
Inspection Service conducted the investigation.
The case was prosecuted by Assistant U.S. Attorneys Karelia S. Rajagopal and Kimberly S. Arshi.Jonesboro Woman Sentenced to 20 Months in PrisonRead the Press Release
LITTLE ROCK—A Jonesboro woman was sentenced to prison for misusing more than $143,000 in disability payments intended for her injured veteran husband. Brandi Goldman, 49, was sentenced to 20 months in federal prison today by United States District Judge James M. Moody, Jr.
In 2013, Goldman was married to a United States Army Reservist who suffered a severe traumatic brain injury in a service-connected accident. As a result of this injury, her husband had many serious physical challenges, and Goldman was appointed as his guardian. Her husband began receiving disability payments, and Goldman signed a fiduciary agreement with Veterans Affairs (VA) detailing the terms of her management of his finances.
In part, the agreement stated that funds were to be used for the beneficiary and that Goldman was not permitted to borrow, loan, or gift money belonging to the beneficiary. When Goldman officially took over her husband’s accounts in April 2015, through November 2017 after her activity was reported to authorities, she received $258,613.54 in VA disability payments and $36,000 in Social Security payments. During that timeframe, she withdrew $199,649.30 in cash and accrued about $900 in ATM and overdraft fees.
Goldman admitted to spending much of the cash to fund her methamphetamine habit, spending $150 on methamphetamine two to three times per week. She also admitted that five other people moved into the residence with her and her husband, none of whom paid rent or contributed to expenses, some of whom she regularly gave cash. Goldman also admitted paying $68,000 in cash for another home, furnishings for the home, a vehicle, and a motor home. She told investigators she purchased vehicles for several people and gave money to her daughters as well as her husband’s parents.
“To steal from a veteran who is incapacitated is an egregious crime. However, that this crime was committed by a fiduciary is particularly pathetic,” said Special Agent in Charge Jeffrey Breen of the Department of Veterans Affairs Office of Inspector General’s South Central Field Office. “Today’s sentence should send a clear message that the VA OIG will vigorously investigate those who would exploit our nation’s most vulnerable veterans.”
A grand jury indicted Goldman in July 2020 with one count of misappropriation by a fiduciary and one count of theft of government funds. In June 2022, she pleaded guilty to misappropriation by a fiduciary in exchange for the other count being dismissed. In addition to prison, Judge Moody sentenced Golden to 3 years of supervised release and ordered her to pay $143,000 in restitution.
The case was investigated by the Veterans Affairs – Office of the Inspector General and the Social Security Administration – Office of the Inspector General. Assistant United States Attorney Liza Brown prosecuted the case for the United States.
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This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at
https://www.justice.gov/edar
Twitter:
@EDARNEWS
Highlands County Methamphetamine Dealer Sentenced to Decade in Federal PrisonRead the Press Release
MIAMI – Doyle Van Roan, 64, was sentenced today by U.S. District Judge Donald L. Graham to 120 months in prison for drug trafficking. Roan previously pled guilty to possession with intent to distribute 50 grams or more of methamphetamine.
On February 19, 2021, law enforcement officers seized from Roan’s home approximately 65 grams of methamphetamine, packaged in three separate bags, two of which were marked as “1/2”. They also seized several smaller bags of methamphetamine, digital scales, and drug paraphernalia. At the time, Roan was on Alabama state probation for manufacturing methamphetamine.
As part of his guilty plea in this case, Roan admitted that all of the methamphetamine was his and that he sold it from his Avon Park home.
Juan Antonio Gonzalez, U.S. Attorney for the Southern District of Florida; Deanne L. Reuter, Special Agent in Charge, Drug Enforcement Administration, Miami Field Division; and Paul Blackman, Sheriff, Highlands County Sheriff’s Office, announced the sentence.
DEA Miami and Highlands County Sheriff’s Office investigated this case. Assistant U.S. Attorney Michael D. Porter prosecuted it.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 22-cr-14009.
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Gynecologist and pharmacist plead guilty to operating massive “pill mill” networkRead the Press Release
ATLANTA – Anthony Mills, a former Atlanta gynecologist, and Raphael Ogunsusi, a licensed pharmacist who owned two pharmacies, have pleaded guilty for their roles in operating an Atlanta-area “pill mill” network that supplied addicts and drug dealers with large amounts of dangerous prescription drugs through illegal prescribing and dispensing.
“Mills and Ogunsusi are now admitted drug dealers who violated the public’s trust by engaging in black-market sales of staggering amounts of dangerous opioid pills,” said U.S. Attorney Ryan K. Buchanan. “With opioid overdoses continuing to rise in Georgia, our office will continue to devote resources to prosecuting licensed professionals who fuel rather than help to stem the opioid epidemic.”
“The dispensing of addictive prescription pain medication under the guise of a doctor’s care isn’t about the good of the community or an individual’s specific health needs – it’s about greed,” said Robert J. Murphy, the Special Agent in Charge of the DEA’s Atlanta Field Division. “Individuals like these defendants who operated a ‘pill mill’ are nothing more than drug dealers who are licensed to wear white coats and carry stethoscopes. They will now face the consequences for their criminal actions.”
“These pleas should serve as a warning to any medical professional considering exploiting their patients for profit: you will be caught, you will be prosecuted, and you will pay a steep price,” said Lisa Fontanette, Assistant Special Agent in Charge IRS Criminal Investigation, Atlanta Field Office. “IRS-CI remains committed to working with our law enforcement partners to bring those seeking to enrich themselves at the expense of their patients, to justice.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: Anthony Mills was a medical doctor licensed to practice medicine in the State of Georgia since 1997, and whose specialty was listed with the medical board as “Gynecology.” Since at least October 2018, Mills operated a “pill mill” out of his personal residence, where he issued prescriptions for controlled substances (such as large quantities of oxycodone) to drug addicts and drug dealing “sponsors” in exchange for cash payments. Mills did not obtain necessary prior medical records of his “patients,” conduct physical exams, or do anything to establish a valid patient-physician relationship. Instead, he issued prescriptions in the names of individuals he never met or evaluated. Some of the prescriptions that Mills issued were in the names of individuals whose identities had been stolen and others who were incarcerated or deceased at the time Mills wrote the prescriptions.
A large percentage of the illegitimate prescriptions written by Mills to drug-dealing sponsors were filled by licensed pharmacist Raphael Ogunsusi through his pharmacies, Evansmill Pharmacy and Retox Pharmacy. Ogunsusi knew that Mills operated a pill mill out of his home, and that Mills prescribed in excess of medically appropriate dosages and combinations of controlled substances. But Ogunsusi nonetheless dispensed controlled substances pursuant to prescriptions issued by Mills and others, which Ogunsusi knew were issued without a legitimate medical purpose and outside the usual course of professional practice.
Ogunsusi accepted large cash payments in exchange for filling these illegal prescriptions, including as much as $900 to fill just one prescription for oxycodone and $500 to fill one prescription for Percocet. Ogunsusi knew these prices were well above the market value for legitimate prescriptions. To disguise the significantly inflated prices that he was charging to dispense illegal controlled substance prescriptions, Ogunsusi falsified, and directed others to falsify, the pricing information on his pharmacy computers to give the appearance that he had charged market prices for the controlled substance prescriptions. Ogunsusi also required sponsors to purchase a battery of additional non-controlled substances, which he referred to as the “Shebang,” as a condition for filling illegal controlled substance prescriptions. The purpose of these non-controlled substances was to maximize profits for his illegal dispensing. Ogunsusi also directed his pharmacy employees, including another licensed pharmacist, to dispense the illegal prescriptions.
Ogunsusi also pled guilty to money laundering based upon his purchase of an airplane using the proceeds of his illegal drug dispensing and distribution.
In addition to Mills and Ogunusi, pharmacist Moses Kirigwi, as well as sponsors Brittany Tinker and Keandre Bates, pleaded guilty to conspiring with Mills and Ogunsusi. Criminal charges remain pending against eight additional defendants.
Anthony Mills, 56, of Atlanta, Georgia, will be sentenced on February 7, 2023. Keandre Bates and Moses Kirigwi will be sentenced on February 6, 2023. Sentencing dates for Ogunsusi and Brittany Tinker have not yet been scheduled.
This case is being investigated by the Drug Enforcement Administration and Internal Revenue Service Criminal Investigation.
Assistant U.S. Attorneys David A. O’Neal and Laurel Boatright Milam are prosecuting the case.
The U.S. Attorney’s Office in Atlanta recommends parents and children learn about the dangers of drugs at the following web site: www.justthinktwice.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Framingham Woman Sentenced for Benefits FraudRead the Press Release
BOSTON – A Framingham woman was sentenced yesterday for fraudulently receiving Social Security disability benefits, MassHealth, Supplemental Nutrition Assistance Program (SNAP) benefits and Section 8 housing assistance.
Maribel Rodriguez, 63, was sentenced by U.S. District Court Judge Nathaniel M. Gorton to time served (approximately one day) and three years of supervised release, with the first 15 months to be spent in home confinement. She was also ordered to pay restitution in the amount of $253,199.57 to the agencies she defrauded. On March 4, 2022, Rodriguez pleaded guilty to four counts of theft of public funds and two counts of making false statements.
Over a period of approximately 12 years, Rodriguez stole $68,223 in Social Security benefits, $1,908 in MassHealth benefits, $21,790 in SNAP benefits (previously known as Food Stamps) and $161,277 in Section 8 housing assistance benefits. In June 2016, she falsely informed the Social Security Administration that she lived alone when, in fact, she was living with her husband. Similarly, Rodriguez falsely told the Marlborough Community Development Authority in May 2017 that she was the only member of her household.
United States Attorney Rachael S. Rollins; Sharon MacDermott, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division; Phillip M. Coyne, Special Agent in Charge of the Department of Health and Human Service’s Office of Inspector General, Boston Regional Office; Suzanne M. Bump, State Auditor of the Commonwealth of Massachusetts; and Christina Scaringi, Special Agent in Charge of the U.S. Department of Housing and Urban Development, Office of Inspector General, Northeast Regional Office, made the announcement today. Assistant U.S. Attorney Elianna J. Nuzum of Rollins’ Major Crimes Unit prosecuted the case.
Former hacker sentenced for stealing computer power to mine cryptocurrency and stealing the personal information of more than 100 million peopleRead the Press Release
Seattle – A 37-year-old former Seattle tech worker was sentenced today in U.S. District Court in Seattle to time served and 5 years of probation including location and computer monitoring for seven federal crimes connected to her scheme to hack into cloud computer data storage accounts and steal data and computer power for her own benefit, announced U.S. Attorney Nick Brown. Paige A. Thompson a/k/a ‘erratic,’ was arrested in July 2019, after Capital One alerted the FBI to Thompson’s hacking activity. A federal jury found her guilty in June 2022, following a seven-day trial. At the sentencing hearing U.S. District Judge Robert S. Lasnik said, time in prison would be particularly difficult for Ms. Thompson because of her mental health and transgender status.
“While we understand the mitigating factors, we are very disappointed with the court’s sentencing decision. This is not what justice looks like,” said U.S. Attorney Nick Brown. “Ms. Thompson’s hacking and theft of information of 100 million people did more than $250 million in damage to companies and individuals. Her cybercrimes created anxiety for millions of people who are justifiably concerned about their private information. This conduct deserves a more significant sanction.”
Thompson was found guilty of wire fraud, five counts of unauthorized access to a protected computer and damaging a protected computer.
Using Thompson’s own words in texts and online chats, prosecutors showed how Thompson used a tool she built to scan Amazon Web Services accounts to look for misconfigured accounts. She then used those misconfigured accounts to hack in and download the data of more than 30 entities, including Capital One bank. With some of her illegal access, she planted cryptocurrency mining software on new servers with the income from the mining going to her online wallet. Thompson spent hundreds of hours advancing her scheme, and bragged about her illegal conduct to others via text or online forums.
Asking the court to impose a seven-year sentence, prosecutors wrote in their sentencing memo, “…Thompson’s crimes … were fully intentional and grounded in spite, revenge, and willful disregard for the law. She exhibited a smug sense of superiority and outright glee while committing these crimes…. Thompson was motivated to make money at other people’s expense, to prove she was smarter than the people she hacked, and to earn bragging rights in the hacking community.”
“I am proud of how quickly our cyber task force worked together to recover the victims’ personal information and prevent further harm,” said Richard A. Collodi, Special Agent in Charge of the FBI Seattle Field Office. “This case is a good example of why companies and individuals who believe their data has been stolen online should immediately contact the FBI.”
Judge Lasnik scheduled a December 1, 2022, hearing to determine the amount of restitution Thompson must pay to her victims.
The case was investigated by the FBI Seattle Cyber Task Force. The case is being prosecuted by Assistant United States Attorneys Andrew Friedman, Jessica Manca and Tania Culbertson.
Former Washington State Correctional Officer Sentenced to Forty-Six Months in Federal Prison for Conspiring to Smuggle Drugs and Cell Phones into the Benton County JailRead the Press Release
Richland, Washington – Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington, announced today that Eric Christian, age 34, of Kennewick, Washington, was sentenced by Chief District Judge Stanley A. Bastian to serve 46-months in federal prison for conspiring with inmates of the Benton County Jail to smuggle contraband into the jail in exchange for money. Christian, who pled guilty in December 2021 to Conspiracy to Provide Prohibited Objects to an Inmate of a Prison, was also sentenced to three-years supervised release after he completes his time in federal custody.
According to court documents and information disclosed during court proceedings, Christian, along with six co-defendants, conspired to introduce multiple cell phones, methamphetamine, heroin, suboxone strips, and other contraband into the Benton County Jail. As part of the conspiracy, which began in January and continued until April 2020, Christian and his coconspirators also provided access to dangerous offenders and gang members so that they could identify, assault, and retaliate against cooperating defendants as well as inmates charged with certain types of offenses.
“Mr. Christian was charged with protecting our community, and he breached that trust by providing dangerous criminals and gang members with access to illegal narcotics and unmonitored cell phones in the Benton County Jail,” U.S. Vanessa R. Waldref stated. “Here, a corrections officer breached the community’s trust and accepted money to break the law – exposing inmates at the jail to drugs and violence. Fortunately, this case is the exception, not the rule. I am sincerely grateful for the dedication and service of the vast majority of law enforcement officers, who work tirelessly to honor their duty to keep our communities safe and our neighborhoods strong.”
U.S. Marshal Craig Thayer stated, “Integrity throughout the criminal justice system is essential to the fair administration of justice. It is unacceptable for a public official to violate their responsibility and position of community trust. Law enforcement will not tolerate the very few who dishonor their badge, as the vast majority continue to serve with honor and integrity.”
“Mr. Christian broke his oath to serve and in doing so threatened the safety of other inmates,” said Jacob D. Galvan, Acting Special Agent in Charge of the DEA Seattle Field Division. “I thank all of our state, local and federal partners who assisted in this investigation and work tirelessly every day to ensure illegal contraband, including dangerous narcotics, are kept out of the corrections system.”
“This investigation came to a successful conclusion as a result of the efforts and teamwork of the detectives, the corrections staff, and the prosecutors involved,” stated Benton County Sheriff Tom Croskrey, “The Sheriff’s Office worked in collaboration with Benton County Corrections, the Benton County Prosecutor’s Office, and with our federal law enforcement partners.” Sheriff Croskrey continued, “We maintain a high level of expectations of those in law enforcement. When these standards are compromised and criminal conduct occurs, we will hold these individuals accountable.”
At sentencing, Chief Judge Bastian noted that Christian not only allowed phones and drugs into the jail, which threatened the stability and safety of the inmates, but he was directly responsible for allowing other inmates to be targeted and assaulted: “This abuse of trust,” and Christian’s “turning a blind eye” when other inmates were assaulted, shook the very core of a system that “depends on correctional officers to keep inmates safe.”
The case was investigated by the U.S. Marshal’s Service, Drug Enforcement Administration Tri- Cities Task Force, and the Benton County Sheriff’s Office. The case was prosecuted by Stephanie Van Marter, Assistant United States Attorney for the Eastern District of Washington.
Former Rensselaer County Corrections Officer Pleads Guilty to Sexual Abuse of InmateRead the Press Release
SYRACUSE, NEW YORK – Sean Morrissey, age 51, of Waterford, New York, pled guilty today to abusive sexual contact of a ward, announced United States Attorney Carla B. Freedman and Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
Morrissey pled guilty today before United States District Judge Glenn T. Suddaby in Syracuse. As part of the plea, Morrissey admitted that between September 7, 2018 and September 21, 2018, while he was a corrections officer at Rensselaer County Correctional Facility, he knowingly rubbed the genitalia of a female federal inmate, with the intent to abuse, humiliate, harass, degrade, or arouse or gratify the sexual desire of a person.
Sentencing is scheduled before Judge Suddaby in Albany on February 23, 2023. Morrissey faces a maximum sentence of 2 years in prison, a fine of up to $250,000, and a term of supervised release of up to 1 year. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case was investigated by the FBI and the Rensselaer County Sheriff’s Office, and is being prosecuted by Assistant U.S. Attorney Benjamin S. Clark.
Former Nurse Pleads Guilty to Drug Diversion from Two Boston-Area HospitalsRead the Press Release
BOSTON – A former nurse pleaded guilty yesterday in federal court in Boston to diverting opioids from two Boston-area hospitals.
Lisa Tarr, 33, of St. Petersburg, Fla., pleaded guilty to four counts of unlawfully obtaining controlled substances by fraud, deception and subterfuge. U.S. Senior District Court Judge Douglas P. Woodlock scheduled sentencing for Feb. 7, 2023. Tarr was charged by an Information on Sept. 12, 2022.
In August 2018, Tarr was a Student Nurse working at a Boston-area hospital. Tarr admitted to investigators at the hospital that she had stolen and self-injected fentanyl, a Schedule II controlled substance, from the hospital.
In 2020, while working for another Boston-area hospital, Tarr stole an infusion bag containing fentanyl that was being used to treat a patient. On another occasion in 2020, while still working at the second hospital, Tarr stole multiple syringes of hydromorphone, a Schedule II controlled substance, from a locked drug cabinet.
The charge of unlawfully obtaining controlled substances by fraud provides a sentence of no greater than four years in prison, one year of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins; Fernando McMillan, Special Agent in Charge of the Food and Drug Administration, Office of Criminal Investigations, New York Field Office; and Margret Cooke, the Commissioner of the Massachusetts Department of Public Health made the announcement. Assistant U.S. Attorney Kelly Begg Lawrence, Chief of Rollins’ Health Care Fraud Unit, and Assistant U.S. Attorney Evan Panich of Rollins’ Narcotics & Money Laundering Unit are prosecuting the case.
Former Northeastern University Employee Arrested for Staging Hoax ExplosionRead the Press Release
BOSTON – A Texas man has been arrested and charged with allegedly staging a hoax explosion at Northeastern University in Boston in September 2022 and providing law enforcement with materially false and misleading information about the incident.
Jason Duhaime, 45, of San Antonio, was charged with one count of intentionally conveying false and misleading information related to an explosive device and one count of making materially false statements to a federal law enforcement agent. Duhaime was arrested this morning in the Western District of Texas and will appear in federal court in Boston at a later date.
According to the charging documents, Duhaime, who was at the time employed as the New Technology Manager and Director of the Immersive Media Lab (Lab) at Northeastern University, placed a 911 call at approximately 7 p.m. on Sept. 13, 2022, to report that he was injured by “sharp” objects expelled from a plastic case he opened inside the Lab that evening. Specifically, it is alleged that Duhaime told the 911 operator that he and a Northeastern student who was working in the Lab had collected several packages from a mail area earlier that evening and brought them into the Lab. Among the packages were two “Pelican” cases, which Duhaime brought into a storage closet inside the Lab. Duhaime allegedly told the 911 operator that when he opened one of the cases inside the closet, “very sharp” objects flew out of the case and under his shirt sleeves, causing injuries to his arms. It is further alleged that Duhaime also reported that the case contained an anonymous “violent note” directed at the Lab.
The reports and concern about the second unopened “Pelican” case triggered a significant law enforcement response that included, among other things, the assistance of two law enforcement bomb squads, the evacuation of a large portion of Northeastern’s Boston campus. Numerous campus-wide alerts were issued by the Northeastern University Police Department – one of which described an “explosion.”
According to court documents unsealed today, responding local and federal law enforcement observed that the case described by Duhaime to the 911 operator was empty and undamaged. Neither the case nor the letter that Duhaime said was inside the case showed any indication of having been exposed to a forceful or explosive discharge of any type or magnitude. Additionally, the storage closet appeared normal and bomb technicians did not observe any small objects or suspicious debris on the floor or elsewhere.
During subsequent interviews with law enforcement, Duhaime allegedly provided statements about the incident that were consistent with his report to the 911 operator. He expressly denied fabricating his story about the case, the letter and his injuries.
Forensic analysis of one of the computers seized during a Sept. 14, 2022 search of Duhaime’s office at Northeastern University allegedly revealed a word-for-word electronic copy of the letter stored in a backup folder. According to court documents, the metadata associated with this file reflected a “Created Date/Time” of Sept. 13, 2022, at 2:57 p.m. and a “Last Printed Date/Time” of Sept. 13, 2022, at 4:02 p.m.
The charges of intentionally conveying false and misleading information related to an explosive device and making materially false statements to a federal law enforcement agent each provide for a sentence of up to five years in prison, up to three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Boston Police Commissioner Michael Cox; Michael A. Davis, Vice President of Campus Security and Chief of Police at Northeastern University; and Matthew B. Millhollin, Special Agent in Charge for Homeland Security Investigations in New England made the announcement today. This investigation was conducted by the Boston Joint Terrorism Task Force (JTTF) in cooperation with the Northeastern University Police Department. Valuable assistance was provided by the U.S. Postal Inspection Service, Boston Field Division. Assistant U.S. Attorney Jason A. Casey of Rollins’ National Security Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former Massillon Post Office Operations Manager Sentenced to Prison for Stealing from and Delay of U.S. MailRead the Press Release
AKRON, Ohio – Bruce C. Murdock, Jr., 54, of Massillon, Ohio, was sentenced today by U.S. District Judge John R. Adams to six months in prison and was ordered to pay $8,346.96 in restitution and a $20,000 fine after Murdock pleaded guilty to delay or destruction of mail and theft of mail by a postal service employee.
According to court documents, from February 2021 to April 2022, Murdock was employed in the United States Postal Service (USPS) as a West Area Post Office Operation Manager (POOM), which is a high-level position that manages multiple Post Office locations. As a POOM, court records state that Murdock was able to remove parcels of mail from the mail stream prior to a scanning process that marked the mail as delivered to the Massillon Post Office. This avoided the parcels from being labeled as “lost” at the Massillon Post Office.
Court documents go on to state that during this period, federal authorities with the United States Postal Service Office of Inspector General (USPS OIG) observed Murdock remove parcels from the mail stream every day that he was in the office. After removing a parcel from the mail stream, Murdock was observed taking the parcel(s) back to his office, where he kept materials for repackaging. In some instances, Murdock would return the parcel to the mail stream. On other occasions, he would not.
During the sentencing hearing, Judge Adams said of Murdock that his “actions cast aspersions on all the good, hardworking thousands and thousands of postal employees around the country who try to do the right thing.”
Court records state that due to Murdock’s position as POOM, and access to the mail before it was scanned, authorities were unable to determine a total loss amount, nor a total number of victims impacted during their investigation.
The investigation preceding the indictment was conducted by the USPS OIG and was prosecuted by Assistant U.S. Attorney Colleen Egan.
Former Lawyer Sentenced to More than 3 Years in Prison for Conning Clients via Sham Court Documents Containing Forged Judge SignaturesRead the Press Release
LOS ANGELES – A former California lawyer has been sentenced to 37 months in federal prison for lying to his clients about winning cases for them and then deceiving them with bogus documents – some with the forged signatures of judges, the Justice Department announced today.
Matthew Charles Elstein, 52, of Redondo Beach, was sentenced late Monday afternoon by United States District Judge Mark C. Scarsi, who also ordered him to pay $254,354 in restitution.
Elstein pleaded guilty in November 2021 to one count of wire fraud.
Elstein was a licensed California attorney from December 1994 until the State Bar of California ordered him inactive in March 2019. From June 2015 to July 2018, Elstein engaged in a scheme to defraud his clients by falsely claiming he obtained favorable legal resolutions for them, when in fact the favorable resolutions had never been obtained.
In some cases, Elstein never initiated any legal action. Elstein also admitted to misappropriating funds by falsely informing victims their fees were going into his client trust account, when in fact he directed them to deposit money into his personal bank account.
“[Elstein] caused irreparable financial, reputational, and emotional damage to his victims that exceeds the mere monetary damage caused by a typical fraud,” prosecutors argued in a sentencing memorandum. “[Elstein’s] motive appears fueled not only by greed but also malice.”
For example, in June 2016, Elstein falsely informed a corporate client that it had won a $52 million default judgment. He emailed the victim-client a fake court order that contained a judge’s forged signature. In order to conceal the fact that he never actually filed a lawsuit on his client’s behalf, Elstein further misrepresented that the case was improperly under seal due to a United States Department of Justice investigation.
To further his fraudulent scheme, Elstein presented his clients with a fake settlement agreement between the client and the United States Attorney’s Office for the Eastern District of California. It was not until the company reached out to that United States Attorney’s Office to authenticate the settlement agreement that it discovered that the agreement was a forgery.
Elstein also fabricated depositions in a federal case in Washington state in September 2015. Because these depositions were fake, no one appeared for them. Nonetheless, Elstein had a court stenographer present and made a formal record of the nonappearances. Elstein also billed the client for attending the sham depositions and his travel expenses to Seattle.
Elstein also falsely told the victim that he had obtained a $4.25 million judgment in the victim’s favor and provided the victim with a fake court order containing the forged signature of a judge. When the victim traveled to Seattle to collect the judgment, he was informed by the court that no such case existed.
In total, Elstein’s fraudulent schemes resulted in losses of at least $358,855 to his victims.
The FBI’s Public Corruption Squad investigated this matter.
Assistant United States Attorney Daniel J. O’Brien of the Public Corruption and Civil Rights Section prosecuted this case.
Former FBI Special Agent Found Guilty of Accepting Bribes Paid by Lawyer Linked to Armenian Organized Crime FigureRead the Press Release
LOS ANGELES – A Bay Area man and former FBI special agent was found guilty today by a federal jury of conspiring to accept at least $150,000 in cash bribes and other items of value in exchange for providing sensitive law enforcement information to a corrupt lawyer with ties to Armenian organized crime.
Babak Broumand, 56, of Lafayette, California, was found guilty of one count of conspiracy, two counts of bribery of a public official, and one count of monetary transactions in property derived from specified unlawful activity.
United States District Judge R. Gary Klausner scheduled a January 30, 2023 sentencing hearing, at which time Broumand will face statutory maximum sentences of 15 years in federal prison for each bribery count, 10 years in federal prison for each unlawful monetary transactions count, and five years in federal prison for the conspiracy count.
Judge Klausner ordered Broumand remanded into federal custody.
Broumand, an FBI special agent from January 1999 until shortly after search warrants were served on his home and businesses in 2018, was responsible for national security investigations and was assigned to the FBI Field Office in San Francisco.
According to evidence presented at his 11-day trial, from January 2015 to December 2018, Broumand accepted cash, checks, private jet flights, a Ducati motorcycle, hotel stays, escorts, meals, and other items of value from an organized crime-linked lawyer – identified in court papers as “E.S” and each man acted to conceal the true nature of their corrupt relationship.
In return for the bribe payments and other items of value, Broumand conducted law enforcement database inquiries and used those inquiries to help E.S. and his associates avoid prosecution and law enforcement monitoring. Specifically, Broumand informed E.S. whether a particular person or entity was under criminal investigation by stating that E.S. should “stay away” from that person or that they were “OK.”
To conceal the nature of their corrupt relationship, Broumand made it falsely appear that E.S. was working as an FBI source. Broumand wrote reports after the fact to make it falsely appear that he conducted legitimate law enforcement database inquiries.
In exchange for the illegal inquiries, E.S. paid Broumand at least $150,000 in cash and check bribes, including a Ducati motorcycle and accessories valued at more than $36,000. The bribes were deposited into the accounts for Love Bugs LLC, a Lafayette-based lice-removal hair salon business that Broumand and his wife started in 2007.
Soon after the bribery scheme began, E.S. asked Broumand to query the FBI database for Levon Termendzhyan, an Armenian organized crime figure for whom E.S. had worked. The database search “rang all the bells” and revealed an FBI investigation in Los Angeles, according to court documents, which note that Broumand accessed the FBI case file on Termendzhyan repeatedly in January 2015. Broumand also allegedly accessed the Termendzhyan FBI case file in May 2016.
Termendzhyan, a.k.a. “Lev Aslan Dermen,” was found guilty in March 2020 in federal court in Utah on criminal charges related to a $1 billion renewable fuel tax credit fraud scheme. He awaits sentencing.
In December 2015, at E.S.’s request, Broumand searched a confidential FBI database for information about Sam Sarkis Solakyan, a medical imaging companies CEO, and later warned E.S. to “stay away” from Solakyan, who was “trouble,” meaning that Solakyan was under law enforcement investigation. Solakyan eventually was charged, tried, convicted and sentenced to five years in federal prison for running a scheme that submitted more than $250 million fraudulent claims through California’s workers compensation system.
In May 2016, Broumand interfered with an FBI investigation into Felix Cisneros Jr., a corrupt special agent with Homeland Security Investigations who also had ties to Termendzhyan. Cisneros was convicted at trial in two different cases. The first trial, in 2018, resulted from Cisneros’s corrupt acts for Termendzhyan. The second trial, earlier this year, resulted from Cisneros’ corrupt acts for E.S. Cisneros is scheduled for sentencing on October 17.
“Ensuring public confidence in those who investigate and enforce the law is paramount,” said United States Attorney Martin Estrada. “By taking bribes and gifts from a person he knew was linked to organized crime, Mr. Broumand breached the public trust placed in him and violated his oath of office, something which simply cannot be tolerated. The FBI’s agents and staff work tirelessly every day to keep us safe, and I am proud that they partnered with our Office to ferret out this corruption.”
“The conviction of Mr. Broumand, a veteran FBI agent who chose greed over integrity and turned his back on the oath he swore to uphold, is proof that the FBI will root out corruption of any kind, to include veteran agents within its ranks,” said Don Alway, the Assistant Director in Charge of the FBI's Los Angeles Field Office. “This prosecution was the result of hard work by multiple partner agencies to work through the painful truth of having to investigate one of its own.”
“Broumand conspired with the very types of criminals he was trusted to investigate. Today’s guilty verdict sends a clear message that no one is above the law, and any Department of Justice employee who participates in these types of schemes will be brought to justice,” said Zachary Shroyer, Special Agent in Charge of the Department of Justice Office of the Inspector General Los Angeles Field Office.
“All of us in law enforcement are held to a higher standard and this is no exception,” stated IRS Criminal Investigation Oakland Field Office Special Agent in Charge Mark H. Pearson. “The American public places high expectations on law enforcement to uphold and defend the law. While today is a blemish in our community as Babak Broumand, a former FBI Agent, was found guilty for conspiring, bribery, and money laundering; I want to emphasize and highlight the exceptional professionalism, integrity and dedication demonstrated by the Federal Bureau of Investigation special agents, the Office of Inspector General, DOJ, the United States Attorney’s Office – CDCA, and the Internal Revenue Service-Criminal Investigation, for their commitment to upholding the law and seeing that justice is sought in all cases regardless of a person’s affiliation. I want to thank our partners for entrusting us with this investigation, and hope that the American public sees our efforts as an example of what the good men and women in law enforcement represent.”
The jury today also found Broumand not guilty of one count of bribery of a public official and one count of monetary transactions in property derived from specified unlawful activity.
The FBI, the United States Department of Justice Office of the Inspector General, and IRS Criminal Investigation investigated this matter and were assisted at trial by the Department of Homeland Security, Office of the Inspector General.
Assistant United States Attorney Ruth C. Pinkel of the Public Corruption and Civil Rights Section and Assistant United States Attorneys Michael J. Morse and Juan M. Rodríguez of the General Crimes Section are prosecuting this case.
Former Employee of D.C. Project Empowerment Program Indicted on Fraud and Other Federal ChargesRead the Press Release
WASHINGTON – A former employee of the D.C. Department of Employment Services’ Project Empowerment Program was arrested today after a grand jury indicted her for allegedly embezzling funds between May 2015 and April 2018.
Rhayda Barnes Thomas, 51, of Washington, D.C., was indicted on Sept. 29, 2022, by a grand jury in the U.S. District Court for the District to Columbia. She was charged with five counts of wire fraud, three counts of bank fraud, seven counts of aggravated identity theft, and one count of first-degree fraud.
The announcement was made by U.S. Attorney Matthew M. Graves, District of Columbia Inspector General Daniel W. Lucas, and Inspector in Charge Damon E. Wood, Washington Division, U.S. Postal Inspection Service.
Barnes Thomas made her initial court appearance this afternoon and was released pending further proceedings. In court today, the government stated that the defendant’s conduct is believed to have caused between approximately $314,000 and $350,000 in losses.
According to the indictment, the D.C. government’s Project Empowerment Program provides employment services to D.C. residents who had multiple barriers to employment, such as a history of substance abuse, a history of job cycling (not maintaining steady employment), and either a felony conviction or previous incarceration. One phase of the program consists of subsidized employment, which involves the D.C. government paying the wages of participants while they work at worksites. During this phase, worksites were responsible for entering participants’ work hours into an electronic system used by Project Empowerment. In turn, the government would then have payments corresponding with those hours issued to accounts associated with participants, usually in the form of pre-paid bank debit cards.
According to the indictment, Barnes Thomas was a Project Empowerment Program participant beginning in August 2013 and ultimately got hired by the program as a Program Support Assistant in February 2014. From May 2015 through April 2018, she is alleged to have embezzled funds by reviving 16 former Project Empowerment participants’ profiles and modifying entries in a database to falsely show them as working for a non-profit organization, which was not true. She also is alleged to have used the name of a former employee from the non-profit organization to enter and approve time in the database showing individuals as working when they were not. In addition, the indictment alleges that she ordered or caused to be ordered replacement and new prepaid debit cards on behalf of the former Project Empowerment participants whose profiles she fraudulently revived. As a result of her conduct, according to the indictment, she caused the D.C. government to request that Wells Fargo Bank load funds onto those prepaid debit cards, which she controlled.
An indictment is merely a formal charge that a defendant has committed a violation of criminal laws and every defendant is presumed innocent until, and unless, proven guilty.
This case is being investigated by the D.C. Office of the Inspector General, the U.S. Postal Inspection Service, and the Criminal Investigations Unit of the U.S. Attorney’s Office for the District of Columbia. It is being prosecuted by Assistant U.S. Attorney Kondi J. Kleinman.
Former Chair of Massachusetts Health Care Company Board of Directors and Attorney Agree to Plead Guilty to Selling Unregistered SecuritiesRead the Press Release
BOSTON – A Canadian citizen and resident of Long Beach, Calif., has been charged and has agreed to plead guilty to three felony securities offenses, two of which concern his undisclosed sale of over $1.3 million worth of shares in a company for which he was the board chairman. His attorney in Yuba City, Calif., who facilitated the undisclosed stock sales, has also been charged and has agreed to plead guilty to a felony securities offense.
Avtar Singh Dhillon, 61, was charged with one count of willful failure to disclose stock sales, one count of aiding and abetting the sale of unregistered securities and one count of touting compensation nondisclosure conspiracy. Daniel V. Martinez, 62, was charged with one count of sale of unregistered securities. Plea hearings for the defendants have not yet been scheduled by the Court. Dhillon was previously arrested and charged by criminal complaint in August 2021.
According to the charging documents, Dhillon and Martinez violated the securities laws when they worked together to sell shares of the Massachusetts-based company Arch Therapeutics, Inc., for which Dhillon was then the board chairman. Specifically, Dhillon and Martinez allegedly placed 2.75 million Arch Therapeutics shares that Dhillon beneficially owned into a limited liability company that Martinez created. It is alleged that Dhillon and Martinez then worked together to sell the shares in the open market without a valid exemption under the relevant securities laws and to distribute the approximately $1.34 million in proceeds. The proceeds were distributed primarily to third parties for Dhillon’s benefit, with a small portion distributed to Martinez directly. Dhillon thereafter willfully failed to report the stock sales to the U.S. Securities & Exchange Commission and the investing public, as he was required to do.
Separately, Dhillon is also alleged to have participated in a securities conspiracy involving the nondisclosure of compensation paid to a subscription newsletter analyst. Specifically, Dhillon agreed with others to cause Emerald Health Pharmaceuticals (EHP), a life sciences company in San Diego, to indirectly compensate a subscription newsletter analyst to tout a securities offering by EHP without the analyst or the newsletter disclosing the compensation, as was required under the securities laws. Dhillon was both a one-time board member of and an indirect shareholder in EHP, which raised tens of millions of dollars in the securities offering.
The charge of willful failure to disclose sales provides for a sentence up to 20 years in prison, three years of supervised release and a fine of $5 million. The charges of sale of unregistered securities and touting compensation nondisclosure conspiracy each provide for a sentence up to five years in prison, three years of supervised release and a fine of $250,000, or twice the gross gain or loss, whichever is greater. 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.
United States Attorney Rachael S. Rollins and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Office made the announcement. Valuable assistance was provided by SEC’s headquarters, Boston and Los Angeles regional offices. Assistant U.S. Attorney James R. Drabick of Rollins’ Securities, Financial & Cyber Fraud Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former Certified Nurse Practitioner Pleads Guilty to Drug Diversion and Health Care FraudRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania, pleaded guilty in federal court to charges of drug diversion and health care fraud, United States Attorney Cindy K. Chung announced today.
Larry J. Goisse, Jr., 38, of the City’s Mt. Washington neighborhood, pleaded guilty to six counts today before Senior United States District Judge Nora Barry Fischer. Goisse’s guilty plea included one count of an Indictment charging him with drug diversion, and five counts of an Information charging him with health care fraud.
In connection with the guilty plea, the court was advised that in September and October 2018, Goisse, a former certified nurse practitioner, continued to prescribe Adderall and submit claims to Medicare for office visits under a co-worker’s license after his nursing license was suspended.
Judge Fischer scheduled sentencing for Jan. 19, 2023 at 9:30 a.m. The law provides for a total sentence of not more than 30 years in prison, a fine of $1,250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Robert S. Cessar is prosecuting this case on behalf of the government.
The investigation leading to the filing of charges in this case was conducted by the Western Pennsylvania Opioid Fraud and Abuse Detection Unit (OFADU). The Western Pennsylvania OFADU, led by federal prosecutors in the U.S. Attorney’s Office, combines the expertise and resources of federal and state law enforcement to address the role played by unethical medical professionals in the opioid epidemic. This unit has investigated and prosecuted more corrupt health care professionals than any other U.S. Attorney’s Office in the country.
The agencies which comprise the Western Pennsylvania OFADU include: Federal Bureau of Investigation, U.S. Health and Human Services – Office of Inspector General, Drug Enforcement Administration, Internal Revenue Service-Criminal Investigations, Pennsylvania Office of Attorney General - Medicaid Fraud Control Unit, Pennsylvania Office of Attorney General – Bureau of Narcotic Investigations, United States Postal Inspection Service, U.S. Attorney’s Office – Criminal Division, Civil Division and Asset Forfeiture Unit, Department of Veterans Affairs-Office of Inspector General, Food and Drug Administration-Office of Criminal Investigations, U.S. Office of Personnel Management – Office of Inspector General and the Pennsylvania Bureau of Licensing.
Former Associate Director Sentenced to 27 Months in Prison for Embezzling Hundreds of Thousands of Dollars from Global Maritime Service Group and Tax ChargeRead the Press Release
NEWARK, N.J. – A former associate director of a global maritime service group was sentenced today to 27 months in prison for embezzling hundreds of thousands of dollars from the company and failing to pay over hundreds of thousands in federal payroll taxes, U.S. Attorney Philip R. Sellinger announced.
David Buckingham, 38, of Elizabeth, New Jersey, previously pleaded guilty before U.S. District Judge Katharine S. Hayden to a superseding information charging him with one count of wire fraud and one count of failure to collect, account for, and pay over federal payroll taxes. Judge Hayden imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Buckingham held the title of associate director and head of the New York office of a global maritime service group headquartered in London, England. From 2016 through 2018, Buckingham used his position and access to the company’s bank accounts to embezzle hundreds of thousands of dollars by writing checks to himself or to “cash.” Buckingham falsified the company’s books and records in an effort to make the payments appear to be legitimate business expenses and to cover up his fraud. From February 2016 to October 2018, Buckingham also willfully failed to account for and pay over to the IRS payroll taxes for the employees of the company in the amount of $277,051.
U.S. Attorney Sellinger credited special agents of IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Tammy Tomlins, and postal inspectors of the U.S. Postal Inspection Service in Newark, under the direction of Acting Inspector in Charge Raimundo Marrero, Philadelphia Division, with the investigation leading to today’s sentencing.
In addition to the prison term, Judge Hayden sentenced Buckingham to three years of supervised release and ordered him to pay restitution in the amount of $356,725 and forfeiture in the amount of $356,725.
The government is represented by Assistant U.S. Attorney Jonathan Fayer of the U.S. Attorney’s Office Economic Crimes Unit.
Defense counsel: Emily Sherman Esq., Assistant Federal Public Defender, Newark
Florida Man Pleads Guilty to Federal Hate Crime for Racially-Motivated Attack on a Black ManRead the Press Release
Ocala, FL – Robert Lashley, 52, pleaded guilty today to a federal hate crime for attacking a Black man because of his actual and perceived race.
According to the plea agreement, on Nov. 17, 2021, Lashley traveled to the Family Dollar in Citrus Springs, Florida, where the victim, a Black man, was shopping inside. Lashley followed the victim outside into the parking lot and then attacked him, striking the victim multiple times. Lashley and his co-defendant, Roy Lamar Lashley, directed racial slurs towards the victim before, during, and after the attack. The victim sustained injuries to his face and legs, including a laceration to the inside of his mouth.
“The defendant is being held accountable for subjecting a Black man to a brutal and racially- motivated assault,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Convictions like these make clear that the Department of Justice will continue to investigate and prosecute individuals who violently assault others because of their race. Racially-motivated hate crimes have no place in our society.”
“Acts of violence against anyone because of their race or ethnicity are abhorrent,” said U.S. Attorney Roger B. Handberg for the Middle District of Florida. “We will continue to work with our law enforcement partners to ensure that such crimes are prosecuted to the fullest extent of the law.”
"Hate crimes are not only an attack on the victim, these crimes threaten and intimidate entire communities,” said Special Agent in Charge Sherri E. Onks for the FBI Jacksonville Field Division. “Because of their wide-ranging impact, investigating and preventing hate crimes is a top priority for the FBI and we will stop at nothing to protect the public from these heinous crimes.”
A sentencing hearing has not yet been set. Lashley faces a maximum term of 10 years imprisonment, three years of mandatory supervised release and a $250,000 fine.
Lashley was charged in an indictment that was unsealed on June 17, 2022. The indictment charged Lashley and co-defendant Roy Lamar Lashley, each aiding and abetting one another, with willfully causing bodily injury to the victim because of the victim’s actual and perceived race. The case against the co-defendant Roy Lamar Lashley remains ongoing.
Assistant Attorney General Clarke, U.S. Attorney Handberg and Special Agent in Charge Onks made the announcement.
The FBI and the Citrus County Sheriff’s Office investigated the matter. Trial Attorneys Maura White and Matthew Tannenbaum of the Justice Department’s Civil Rights Division and Assistant U.S. Attorney William Hamilton of the Middle District of Florida are prosecuting the case.
For more information and resources about the department’s work to combat hate crimes, visit www.justice.gov/hatecrimes.
Florida Man Pleads Guilty to Federal Hate Crime for Racially-Motivated Attack on a Black ManRead the Press Release
Robert Lashley, 52, pleaded guilty today to a federal hate crime for attacking a Black man because of his actual and perceived race.
According to the plea agreement, on Nov. 17, 2021, Lashley traveled to the Family Dollar in Citrus Springs, Florida, where the victim, a Black man, was shopping inside. Lashley followed the victim outside into the parking lot and then attacked him, striking the victim multiple times. Lashley and his co-defendant, Roy Lamar Lashley, directed racial slurs towards the victim before, during and after the attack. The victim sustained injuries to his face and legs, including a laceration to the inside of his mouth.
“The defendant is being held accountable for subjecting a Black man to a brutal and racially-motivated assault,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Convictions like these make clear that the Department of Justice will continue to investigate and prosecute individuals who violently assault others because of their race. Racially-motivated hate crimes have no place in our society.”
“Acts of violence against anyone because of their race or ethnicity are abhorrent,” said U.S. Attorney Roger B. Handberg for the Middle District of Florida. “We will continue to work with our law enforcement partners to ensure that such crimes are prosecuted to the fullest extent of the law.”
"Hate crimes are not only an attack on the victim, these crimes threaten and intimidate entire communities,” said Special Agent in Charge Sherri E. Onks for the FBI Jacksonville Field Division. “Because of their wide-ranging impact, investigating and preventing hate crimes is a top priority for the FBI and we will stop at nothing to protect the public from these heinous crimes.”
A sentencing hearing has not yet been set. Lashley faces a maximum term of 10 years imprisonment, three years of mandatory supervised release and a $250,000 fine. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Lashley was charged in an indictment that was unsealed on June 17. The indictment charged Lashley and co-defendant Roy Lamar Lashley, each aiding and abetting one another, with willfully causing bodily injury to the victim because of the victim’s actual and perceived race. The case against the co-defendant Roy Lashley remains ongoing.
Assistant Attorney General Clarke, U.S. Attorney Handberg and Special Agent in Charge Onks made the announcement.
The FBI and the Citrus County Sheriff’s Office investigated the matter. Trial Attorneys Maura White and Matthew Tannenbaum of the Justice Department’s Civil Rights Division and Assistant U.S. Attorney William Hamilton of the Middle District of Florida are prosecuting the case.
For more information and resources about the department’s work to combat hate crimes, visit www.justice.gov/hatecrimes.
Five Current or Former IRS Employees Charged with Defrauding Federal COVID-19 Relief ProgramsRead the Press Release
Memphis, TN – Five current or former IRS employees have been charged with schemes to defraud the
Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) Program, federal stimulus programs authorized as part of the Coronavirus Aid, Relief, and Economic Security (CARES)
Act.“The IRS employees charged in these cases allegedly abused the trust placed in them by the public,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal
Division. “The Criminal Division is committed to safeguarding that public trust and protecting pandemic relief programs for the American people.”“This matter demonstrates the brazenness with which bad actors have taken advantage of federal programs meant to help those who suffered most from the COVID-19 pandemic,” said Director for
COVID-19 Fraud Enforcement Kevin Chambers. “The Justice Department will continue to work hard to root out PPP and EIDL Program fraud, including that committed by government employees.”According to court documents, the defendants allegedly obtained funds under the PPP and EIDL
Program by submitting false and fraudulent loan applications that collectively sought over $1 million. They then used the loan funds for purposes not authorized by the PPP or EIDL Program, but instead for cars, luxury goods, and personal travel, including trips to Las Vegas.“These individuals – acting out of pure greed – abused their positions by taking government funds meant for citizens and businesses who desperately needed it,” said U.S. Attorney Kevin G. Ritz for the Western District of Tennessee. “I thank our law enforcement partners for rooting out this fraud. Our office will not hesitate to pursue and charge individuals who steal from our nation’s taxpayers.”
Administration’s (TIGTA) mission includes investigating allegations of criminal violations committed by Internal Revenue Service
employees,” said Treasury Inspector General for Tax Administration J. Russell George. “We will continue to aggressively pursue IRS employees who breach the public trust, safeguarding the integrity of the IRS.”“It is especially egregious when individuals that hold positions of public trust engage in criminal activity,” said Inspector General Hannibal “Mike” Ware of the Small Business Administration, Office of Inspector General (SBA-OIG). “OIG is a ready partner in safeguarding the integrity of SBA’s programs and in bringing wrongdoers to justice.”
The five individuals charged are:
• Brian Saulsberry, 46, of Memphis, Tennessee, is charged with two counts of wire fraud and two counts of money laundering. Saulsberry was employed by the IRS as a Program Evaluation and Risk
Analyst in the Human Capital Office. According to the indictment, Saulsberry submitted four fraudulent EIDL Program applications, seeking at least
$501,400 in EIDL Program loans and obtaining $171,400 in loan funds. Saulsberry allegedly spent a portion of the funds on a Mercedes-Benz and deposited additional funds into a personal investment account.• Courtney Quinshe Westmoreland, 38, of Cordova, Tennessee, is charged with three counts of wire fraud. Westmoreland was employed by the IRS as a Contact Representative in the Wage and Investment
Service Centers Department. According to the indictment, Westmoreland submitted multiple fraudulent
PPP and EIDL Program applications on behalf of a purported apparel business, for which she sought at least $32,500 in loans and obtained $11,500 in loan funds. Westmoreland allegedly used these funds for personal services, including manicures and massages, and to purchase luxury clothing. In addition, while employed full-time by the IRS, Westmoreland allegedly submitted fraudulent applications for unemployment insurance benefits to the Tennessee Department of Labor, in which she falsely claimed that she was not employed by the federal government. According to court documents, Westmoreland fraudulently obtained $16,050 in unemployment insurance benefits.• Fatina Hewitt, 35, of Olive Branch, Mississippi, is charged with one count of wire fraud. Hewitt was employed by the IRS as a Management and Program Assistant in Information Technology. According to the information, Hewitt submitted multiple fraudulent EIDL Program applications on behalf of a purported fashion business, seeking $338,900 in EIDL Program loans and obtaining $28,900 in loan funds. Court documents allege that Hewitt spent the loan funds on Gucci clothing and a trip to Las
Vegas. On October 4, 2022, Hewitt pleaded guilty to one count of wire fraud.• Roderick DeMarco White II, 27, of Memphis, is charged with one count of wire fraud. White was employed by the IRS as a Contact Representative in the Wage and Investment Service Centers
Department. According to the information, White submitted four fraudulent PPP and EIDL Program applications on behalf of a purported apparel business, seeking $113,311 in PPP and EIDL Program loans and obtaining $66,666 in loan funds. White allegedly spent the loan funds on personal items, including a Gucci satchel. On August 25, 2022, White pleaded guilty to one count of wire fraud.• Tina Humes, 56, of Memphis, is charged with one count of wire fraud. Humes was employed by the
IRS as a Lead Management and Program Assistant in the Human Capital Office. According to the information, Humes submitted four fraudulent PPP and EIDL Program applications, seeking $133,812 in loans and obtaining $123,612 in loan funds. Humes allegedly spent the funds on jewelry and trips to
Las Vegas. On July 27, 2022, Humes pleaded guilty to one count of wire fraud.Each count of wire fraud carries a maximum penalty of 20 years in prison, and each count of money laundering carries a maximum penalty of 10 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The TIGTA and SBA-OIG investigated the cases.
Assistant Chief Justin Woodard and Trial Attorneys Sara Porter, Kelly Z. Walters, and Thomas D.
Campbell of the Fraud Section’s Gulf Coast Strike Force and Assistant U.S. Attorney Carroll Andre for the Western District of Tennessee are prosecuting the cases.These cases were brought as part of an interagency effort to combat and prevent CARES Act fraud by federal employees. The initiative is led by the U.S. Department of Justice’s Criminal Division, Fraud Section, U.S. Attorneys’ Offices, and agents with TIGTA and SBA-OIG.
The Fraud Section leads the Criminal Division’s prosecution of fraud schemes that exploit the PPP.
Since the inception of the CARES Act, the Fraud Section has prosecuted over 150 defendants in more than 95 criminal cases and has seized over $75 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real estate properties and luxury items purchased with such proceeds. More information can be found at https://www.justice.gov/criminal-fraud/ppp-fraud.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) hotline via the NCDF
Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint- form.An indictment or information is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Five Current or Former IRS Employees Charged with Defrauding Federal COVID-19 Relief ProgramsRead the Press Release
Five current or former IRS employees have been charged with schemes to defraud the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) Program, federal stimulus programs authorized as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
“The IRS employees charged in these cases allegedly abused the trust placed in them by the public,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “The Criminal Division is committed to safeguarding that public trust and protecting pandemic relief programs for the American people.”
“This matter demonstrates the brazenness with which bad actors have taken advantage of federal programs meant to help those who suffered most from the COVID-19 pandemic,” said Director for COVID-19 Fraud Enforcement Kevin Chambers. “The Justice Department will continue to work hard to root out PPP and EIDL Program fraud, including that committed by government employees.”
According to court documents, the defendants allegedly obtained funds under the PPP and EIDL Program by submitting false and fraudulent loan applications that collectively sought over $1 million. They then used the loan funds for purposes not authorized by the PPP or EIDL Program, but instead for cars, luxury goods, and personal travel, including trips to Las Vegas.
“These individuals – acting out of pure greed – abused their positions by taking government funds meant for citizens and businesses who desperately needed it,” said U.S. Attorney Kevin G. Ritz for the Western District of Tennessee. “I thank our law enforcement partners for rooting out this fraud. Our office will not hesitate to pursue and charge individuals who steal from our nation’s taxpayers.”
“The Treasury Inspector General for Tax Administration’s (TIGTA) mission includes investigating allegations of criminal violations committed by Internal Revenue Service employees,” said Treasury Inspector General for Tax Administration J. Russell George. “We will continue to aggressively pursue IRS employees who breach the public trust, safeguarding the integrity of the IRS.”
“It is especially egregious when individuals that hold positions of public trust engage in criminal activity,” said Inspector General Hannibal “Mike” Ware of the Small Business Administration, Office of Inspector General (SBA-OIG). “OIG is a ready partner in safeguarding the integrity of SBA’s programs and in bringing wrongdoers to justice.”
The five individuals charged are:
- Brian Saulsberry, 46, of Memphis, Tennessee, is charged with two counts of wire fraud and two counts of money laundering. Saulsberry was employed by the IRS as a Program Evaluation and Risk Analyst in the Human Capital Office. According to the indictment, Saulsberry submitted four fraudulent EIDL Program applications, seeking at least $501,400 in EIDL Program loans and obtaining $171,400 in loan funds. Saulsberry allegedly spent a portion of the funds on a Mercedes-Benz and deposited additional funds into a personal investment account.
- Courtney Quinshe Westmoreland, 38, of Cordova, Tennessee, is charged with three counts of wire fraud. Westmoreland was employed by the IRS as a Contact Representative in the Wage and Investment Service Centers Department. According to the indictment, Westmoreland submitted multiple fraudulent PPP and EIDL Program applications on behalf of a purported apparel business, for which she sought at least $32,500 in loans and obtained $11,500 in loan funds. Westmoreland allegedly used these funds for personal services, including manicures and massages, and to purchase luxury clothing. In addition, while employed full-time by the IRS, Westmoreland allegedly submitted fraudulent applications for unemployment insurance benefits to the Tennessee Department of Labor, in which she falsely claimed that she was not employed by the federal government. According to court documents, Westmoreland fraudulently obtained $16,050 in unemployment insurance benefits.
- Fatina Hewitt, 35, of Olive Branch, Mississippi, is charged with one count of wire fraud. Hewitt was employed by the IRS as a Management and Program Assistant in Information Technology. According to the information, Hewitt submitted multiple fraudulent EIDL Program applications on behalf of a purported fashion business, seeking $338,900 in EIDL Program loans and obtaining $28,900 in loan funds. Court documents allege that Hewitt spent the loan funds on Gucci clothing and a trip to Las Vegas. On October 4, 2022, Hewitt pleaded guilty to one count of wire fraud.
- Roderick DeMarco White II, 27, of Memphis, is charged with one count of wire fraud. White was employed by the IRS as a Contact Representative in the Wage and Investment Service Centers Department. According to the information, White submitted four fraudulent PPP and EIDL Program applications on behalf of a purported apparel business, seeking $113,311 in PPP and EIDL Program loans and obtaining $66,666 in loan funds. White allegedly spent the loan funds on personal items, including a Gucci satchel. On August 25, 2022, White pleaded guilty to one count of wire fraud.
- Tina Humes, 56, of Memphis, is charged with one count of wire fraud. Humes was employed by the IRS as a Lead Management and Program Assistant in the Human Capital Office. According to the information, Humes submitted four fraudulent PPP and EIDL Program applications, seeking $133,812 in loans and obtaining $123,612 in loan funds. Humes allegedly spent the funds on jewelry and trips to Las Vegas. On July 27, 2022, Humes pleaded guilty to one count of wire fraud.
Each count of wire fraud carries a maximum penalty of 20 years in prison, and each count of money laundering carries a maximum penalty of 10 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The TIGTA and SBA-OIG investigated the cases.
Assistant Chief Justin Woodard and Trial Attorneys Sara Porter, Kelly Z. Walters, and Thomas D. Campbell of the Fraud Section’s Gulf Coast Strike Force and Assistant U.S. Attorney Carroll Andre for the Western District of Tennessee are prosecuting the cases.
These cases were brought as part of an interagency effort to combat and prevent CARES Act fraud by federal employees. The initiative is led by the U.S. Department of Justice’s Criminal Division, Fraud Section, U.S. Attorneys’ Offices, and agents with TIGTA and SBA-OIG.
The Fraud Section leads the Criminal Division’s prosecution of fraud schemes that exploit the PPP. Since the inception of the CARES Act, the Fraud Section has prosecuted over 150 defendants in more than 95 criminal cases and has seized over $75 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real estate properties and luxury items purchased with such proceeds. More information can be found at https://www.justice.gov/criminal-fraud/ppp-fraud.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) hotline via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
An indictment or information is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Federal Organized Crime and Drug Trafficking Task Force Investigation Leads to Charges Against Six Individuals for Firearm and Drug Trafficking OffensesRead the Press Release
United States Attorney Ronald C. Gathe, Jr. has announced that an investigation into a drug trafficking organization based out of East Baton Rouge Parish has resulted in a federal grand jury indictment leading to the arrest of six individuals on various drug trafficking and firearm offenses.
According to the Indictment, the defendants engaged in an extensive drug trafficking venture where they distributed large quantities of cocaine and heroin in the Middle District of Louisiana. Agents seized over $250,000 in illegal drug proceeds, luxury vehicles, heroin, cocaine and marijuana, and thirteen firearms during the investigation.
Charged and arrested as part of this investigation were the following individuals:
Francisco Palma, age 42, formerly of Baton Rouge, Louisiana, for conspiracy to distribute and to possess with intent to distribute cocaine and heroin, possession of firearms in furtherance of a drug trafficking crime, unlawful travel in aid of a racketeering enterprise, unlawful use of communications facilities, and money laundering.
Marco Antonio Filos, age 40, of Marrero, Louisiana, for conspiracy to distribute and to possess with intent to distribute cocaine and heroin, unlawful travel in aid of a racketeering enterprise, and unlawful use of communications facilities.
Juan Villareal, age 37, of Roma, Texas, for conspiracy to distribute and to possess with intent to distribute cocaine and heroin, and unlawful use of communications facilities.
Richard Antunez, age 33, of Baton Rouge, Louisiana, for conspiracy to distribute and to possess with intent to distribute cocaine and heroin, distribution of cocaine and heroin, and unlawful use of communications facilities.
Clarence Corey Anderson, age 44, of Prairieville, Louisiana, for conspiracy to distribute and to possess with intent to distribute cocaine and heroin, and unlawful use of communications facilities.
Brittany Adell Allison, age 33, formerly of Baton Rouge, Louisiana, for conspiracy to distribute and to possess with intent to distribute cocaine and heroin, unlawful use of communications facilities, and money laundering.
This investigation was led by the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the East Baton Rouge Parish Sheriff’s Office, the Iberville Parish Sheriff's Office, and Baton Rouge Police Department. This matter is being prosecuted by Assistant United States Attorney Jennifer M. Kleinpeter.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
NOTE: An indictment is an accusation by a grand jury. The defendants are presumed innocent until and unless adjudicated guilty at trial or through a guilty plea.
Federal Charge Filed Against Man for Allegedly Damaging Reproductive Health Services Facility in ChicagoRead the Press Release
CHICAGO — A man was charged today in federal court with intentionally damaging a reproductive health services facility in Chicago.
MICHAEL BARRON, 41, most recently of Chicago, is charged in a criminal information in the Northern District of Illinois with intentionally damaging a Planned Parenthood Health Center on June 5, 2021. The charge accuses Barron of damaging the facility because it provided reproductive health services.
The charge was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division; Ashley T. Johnson, Acting Special Agent-in-Charge of the Chicago Field Office of the FBI; and LaDon Reynolds, United States Marshal for the Northern District of Illinois. The government is represented by Assistant U.S. Attorneys Sivashree Sundaram and Paige Nutini.
The public is reminded that a criminal information is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The charge against Barron is punishable by a maximum sentence of one year in federal prison. Arraignment in federal court in Chicago has not yet been scheduled.
Ex-husband of former State of Georgia employee pleads guilty to stealing over $1.3 million by creating fake students with non-existent disabilitiesRead the Press Release
ATLANTA – Kevin M. Gregory has pleaded guilty to conspiring with ex-wife and former Georgia Vocational Rehabilitation Agency counselor Karen C. Lyke to forge educational records and to create fake students with non-existent disabilities and illnesses, as part of their sophisticated, multi-year scheme to steal more than $1.3 million.
“Gregory and Lyke exploited a government program designed to empower some of the most vulnerable Americans to achieve their educational and vocational goals,” said U.S. Attorney Ryan K. Buchanan. “Driven by greed, Gregory and Lyke forged medical, educational, and financial records to invent sham students with non-existent disabilities, resulting in an elaborate conspiracy that swindled taxpayers out of more than $1.3 million.”
“Gregory and Lyke stole money targeted for some of society’s most vulnerable. Their greedy actions also impact every taxpayer,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “The FBI, alongside our law enforcement partners, will continue to work tirelessly to hold accountable those who steal taxpayer funds.”
“Theft of government money a serious crime that deprives our most vulnerable citizens of vital assistance,” said State Inspector General Scott McAfee. “OIG will continue to uphold the integrity of state programs and ensure taxpayer dollars are used for their intended purpose.”
“The Georgia Vocational Rehabilitation Agency is committed to protecting the interests of Georgia’s taxpayers and our constituents. Therefore, we notified the Georgia Office of Inspector General as soon as we suspected fraud in this matter. We are also continuing to implement and refine protocols to prevent and catch such incidents of fraud even earlier to ensure both our clients and public funds are secure,” says GVRA Executive Director Chris Wells.
According to U.S. Attorney Buchanan, the charges, and other information presented in court: the State Vocational Rehabilitation Services Program is a federally funded program administered by the U.S. Department of Education that offers grant money to assist states to provide services to individuals with disabilities. To be eligible for the program, individuals must have a physical or mental impairment that results in a substantial impediment to employment and require services to achieve employment and to maximize career goals. Across the country, state vocational rehabilitation agencies offer various services to individuals with disabilities, including tuition assistance for vocational training and college education.
The Georgia Vocational Rehabilitation Agency (“GVRA”) operates Georgia’s vocational rehabilitation program. Between 2017 and 2020, the GVRA annually received at least $100,000,000 in federal funds. The GVRA’s Vocational Rehabilitation Program helped people with disabilities (known as “clients”) find and maintain employment, including by providing funding and tuition assistance for college education.
During this time, the GVRA assigned counselors to assist its clients, including helping clients to obtain tuition assistance. To obtain tuition assistance, a client was required to provide the GVRA with documentation to support obtaining GVRA funds, including: (a) medical records demonstrating a disability related to employment, (b) a driver’s license, (c) proof of registration for classes, and (d) financial aid information. After receiving the information, the client’s GVRA counselor reviewed the documentation and, if the counselor approved the request for tuition assistance, mailed a check to the client for the requested educational expenses. From June 2015 to March 2019, Karen C. Lyke served as a GVRA counselor in its Norcross, Georgia office. During the time of the conspiracy, Lyke and Gregory were married.
From approximately May 2016 to November 2020, Gregory and Lyke conspired to steal money from the GVRA by claiming educational expenses for approximately 13 fake students. Gregory and Lyke used the names of actual friends and relatives (including Gregory’s own name) as the names of the fake disabled students seeking tuition assistance from the GVRA.
Gregory and Lyke used the names of friends and relatives to fake medical records to create the appearance that the approximately 13 fake students qualified for tuition assistance from the GVRA. Gregory and Lyke claimed that these fake students suffered from disabilities or illnesses like AIDS, cancer, psychosocial impairments, or muscular dystrophy.
As proof of identification, Gregory and Lyke provided the GVRA with manufactured images of fake driver’s licenses that listed the names of their friends and relatives. In one instance, Gregory created a fake driver’s license in his cousin’s name by using a mug shot image of an unknown individual from the Internet as the driver’s license photograph.
Gregory and Lyke then used photo-editing software to alter authentic college transcripts, financial aid reports, and proofs of registration from actual GVRA clients to support claims that the fake students attended schools like the Georgia Institute of Technology, Georgia State University, or the University of Georgia. Lyke then uploaded the sham driver’s licenses, transcripts, financial aid reports, and other documentation into the GVRA’s electronic database.
Based on false documentation, Gregory and Lyke caused more than 230 checks to be mailed to approximately 13 friends and relatives for claimed educational expenses. In fact, none of the 13 fake students attended any of the purported colleges or universities.
The GVRA mailed the checks to post office boxes that Gregory and Lyke opened in their own names. After receiving the GVRA checks, Gregory and Lyke either deposited the GVRA checks into their own bank accounts, or gave the GVRA checks to their friends and relatives to be deposited. The friends and relatives funneled most of the GVRA funds back to Gregory and Lyke after depositing the GVRA checks.
After Lyke left the GVRA in March 2019, Gregory and Lyke continued to submit forged paperwork to the GVRA for non-existent educational expenses. Based on the false submissions, the GVRA issued checks to the fake students for bogus educational expenses. Gregory and Lyke used the stolen GVRA funds to pay for various personal expenses, including cars, jewelry, high-end guitars, and the down payment on a new home. In total, based on the false documentation they created, the GVRA mailed more than 230 checks to Gregory and Lyke resulting in the theft of approximately $1.3 million.
From approximately August 2016 to February 2019, Gregory and Lyke also conspired to steal several high-value computers from the GVRA. Using her position as a GVRA counselor, Lyke and Gregory stole multiple computers by submitting phony paperwork to the GVRA claiming that:
- Three genuine GVRA clients needed computers to further their educational goals when, in fact, the GVRA clients did not know that Lyke had ordered the computers under their names and never received the computers;
- Three fake students (that Gregory and Lyke invented) needed the computers to further their educational goals; and
- Gregory was a GVRA client who needed a computer to further his educational goals.
Gregory and Lyke arranged for at least six computers to be shipped to Lyke’s attention at the GVRA office in Norcross. Upon delivery, Lyke stole the computers and computer accessories from the GVRA. Gregory and Lyke then sold at least five of the computers on eBay using Gregory’s account. Gregory and Lyke kept one computer for personal use. In total, Gregory and Lyke stole at least seven computers with various accessories worth approximately $32,000.
Based on this conduct, the U.S. Attorney charged Kevin M. Gregory, 40, of Toledo, Ohio, in a criminal information with one count of conspiracy to commit federal program theft. Gregory pleaded guilty to that charge before U.S. District Judge J.P. Boulee.
On September 1, 2022, Karen C. Lyke, 37, of Toledo, Ohio, also pleaded guilty to one count of conspiracy to commit federal program theft.
The Federal Bureau of Investigation and Georgia Office of Inspector General are investigating the case. The Georgia Vocational Rehabilitation Agency also provided valuable investigative assistance.
Assistant U.S. Attorneys Jeffrey W. Davis and Jesika W. French are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Erie Man Sentenced to Prison for Selling Fentanyl-Laced PillsRead the Press Release
ERIE, Pa. - A resident of Erie, Pennsylvania, has been sentenced in federal court to 36 months in jail on his conviction of violating federal drug laws, United States Attorney Cindy K. Chung announced today.
Senior United States District Judge David S. Cercone imposed the sentence on David Aranda, 24.
According to information presented to the court, on or about August 25, 2021, Aranda attempted to possess with intent to distribute 368 grams, an estimated 3,000 to 3,500 counterfeit blue pills, comprised of a mixture and substance containing a detectable amount of fentanyl.
Prior to imposing sentence, Judge Cercone stated that fentanyl “is a scourge of this country” and noted the dramatically increased potency of the fentanyl pills in comparison to the prescription pills they are designed to mimic. “People are dying everyday by what you’re doing,” Judge Cercone stated to Aranda.
Assistant United States Attorney Paul S. Sellers prosecuted this case on behalf of the government.
United States Attorney Chung commended the United States Postal Inspection Service, Drug Enforcement Administration, and Pennsylvania State Police Northwest Strike Force for the investigation leading to the successful prosecution of Aranda.
Eastern District of Texas Joins Transnational Elder Fraud Strike Force to Protect Older AmericansRead the Press Release
BEAUMONT, Texas – The Eastern District of Texas announced today that as part of its continuing efforts to protect older adults and to bring perpetrators of fraud schemes to justice, it is joining the Justice Department’s Transnational Elder Fraud Strike Force, as one of 14 additional U.S. Attorney’s Offices. Since 2019, current Strike Force members — including the Department’s Consumer Protection Branch, six U.S. Attorneys’ Offices, the FBI, U.S. Postal Inspection Service and Homeland Security Investigations — have brought successful cases against the largest and most harmful global elder fraud schemes and worked with foreign law enforcement to disrupt criminal enterprises, disable their infrastructure and bring perpetrators to justice. Expansion of the Strike Force will help to coordinate the Department’s ongoing efforts to combat sophisticated fraud schemes that target or disproportionately impact older adults. The expansion will increase the total number of U.S. Attorneys’ Offices comprising the Strike Force from six to 20, including all of the U.S. Attorneys’ Offices in the states of California, Arizona, Texas, Florida, Georgia, Maryland and New York.
“We are intensifying our efforts nationwide to protect older adults, including by more than tripling the number of U.S. Attorneys’ offices participating in our Transnational Elder Fraud Strike Force dedicated to disrupting, dismantling and prosecuting foreign-based fraud schemes that target American seniors,” said Attorney General Merrick B. Garland. “This expansion builds on the Justice Department’s existing work to hold accountable those who steal funds from older adults, including by returning those funds to the victims where possible.”
“To this day the greatest generation remains the backbone for supporting truth and justice and the American way; knowing better than most what exceptional sacrifices ordinary Americans made to keep our country free,” said Eastern District of Texas U.S. Attorney Brit Featherston. “Unfortunately, those amazing senior citizens now face a target on their own back from cowardly swindlers who attempt to take advantage of them. It’s our turn to give back by helping prevent crimes committed by thieves who lurk at the end of a phone or computer screen. All of us should make it a priority to prevent our seniors from falling prey to these criminals and know that anyone who harms our greatest generation will be hunted down and prosecuted, for that you have our commitment.”
The Strike Force expansion will further enhance the Department’s existing efforts to protect older adults from fraud and exploitation. During the period from September 2021 to September 2022, Department personnel and its law enforcement partners pursued approximately 260 cases involving more than 600 defendants, both bringing new cases and advancing those previously charged. The matters tackled by the Department and its partners ranged from mass-marketing scams that impacted thousands of victims to bad actors scamming their neighbors. Substantial efforts were also made over the last year to return money to fraud victims.
As part of its elder fraud efforts, the Eastern District of Texas engaged in outreach to the community to raise awareness about scams and exploitation and preventing victimization. This year, the Eastern District of Texas participated in events to provide educational programming to seniors such as presentations provided to tenants of the Plaza Tower in downtown Tyler; local Rotary Clubs; the Hamptons of Tyler, a retirement community; residents of the Pecan Place Senior Apartments in Bonham; the Texoma Senior Center in Sherman; and a church in Beaumont. Groups or organizations in the Eastern District of Texas that are interested in securing a speaker for their event should contact Assistant U.S. Attorney Camelia Lopez at the Plano U.S. Attorney’s Office at 972-509-1201.
The Department also highlighted other efforts, including the indictment of individuals in the Eastern District of Texas who were charged in September 2021 with, allegedly, facilitating a range of schemes, including romance scams.
In the past year, the Department has notified over 550,000 people that they may be eligible for payments. Notifications were made to consumers whose information was sold by one of three data companies prosecuted by the Department and were later victims of “sweepstakes” or “astrology” solicitations that falsely promised prizes or individualized services in return for a fee. More than 150,000 of those victims cashed checks totaling $52 million, and thousands more are eligible to receive checks. Also notified were consumers who paid fraudsters perpetrating person-in-need scams and job scams via Western Union. In the past year, the Department has identified and contacted over 300,000 consumers who may be eligible for remission. Since March of 2020 more than 148,000 victims have received more than $366 million as a result of a 2017 criminal resolution with Western Union for the company’s willful failure to maintain an effective anti-money laundering program and its aiding and abetting of wire fraud.
Over the past year, the Department pursued cases against the perpetrators of “grandparent scams,” otherwise known as “person-in-need scams.” These scams typically begin when a fraudster, often based overseas, contacts an older adult and poses as either a grandchild, other family member or someone calling on behalf of a family member. Call recipients are told that their family member is in jeopardy and is urgently in need of money. When recently sentencing one of eight perpetrators of a grandparent scam indicted under the Racketeer Influenced and Corrupt Organizations Act, a federal judge described such scams “heartbreakingly evil.” The Department is working with government partners and others to raise awareness about these schemes.
Reporting from consumers about fraud and fraud attempts is critical to law enforcements efforts to investigate and prosecute schemes targeting older adults. If you or someone you know is age 60 or older and has been a victim of financial fraud, help is available the National Elder Fraud Hotline: 1-833 FRAUD-11 (1-833-372-8311). This Department of Justice Hotline, managed by the Office for Victims of Crime, is staffed by experienced professional who provide personalized support to callers by assessing the needs of the victim and identifying next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting or connect them with agencies, and provide resources and referrals on a case-by-case basis. The hotline is staffed seven days a week from 6:00 a.m. to 11:00 p.m. Eastern Time. English, Spanish and other languages are available. More information about the Department’s elder justice efforts can be found on the Department’s Elder Justice website, www.elderjustice.gov.
Some of the cases that comprise today’s announcement are charges, which are merely allegations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
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Eastern District of North Carolina Takes Part in Department’s Wide-Ranging Efforts to Protect Older AdultsRead the Press Release
RALEIGH, N.C. – The Justice Department announced today the results of its efforts over the past year to protect older adults from fraud and exploitation. During the past year, the Department and its law enforcement partners tackled matters that ranged from mass-marketing scams that impacted thousands of victims to bad actors scamming their neighbors. Substantial efforts were also made over the last year to return money to fraud victims. Today, the Department also announced it is expanding its Transnational Elder Fraud Strike Force to amplify efforts to combat scams originating overseas.
“We are intensifying our efforts nationwide to protect older adults, including by more than tripling the number of U.S. Attorneys’ offices participating in our Transnational Elder Fraud Strike Force dedicated to disrupting, dismantling and prosecuting foreign-based fraud schemes that target American seniors,” said Attorney General Merrick B. Garland. “This expansion builds on the Justice Department’s existing work to hold accountable those who steal funds from older adults, including by returning those funds to the victims where possible.”
“Our seniors and older adults deserve our greatest care and respect,” said U.S. Attorney Michael Easley. “Our office will continue to investigate and prosecute those that target the most vulnerable among us. In the past year alone, we have put individuals behind bars for scams that involved stealing government benefits, pensions and fake romances.”
During the period from September 2021 to September 2022, Department personnel and its law enforcement partners pursued approximately 260 cases involving more than 600 defendants, both bringing new cases and advancing those previously charged.
This past year, the U.S. Attorney’s Office for the Eastern District of North Carolina prosecuted 3 cases in support of this effort. On October 15, 2021, a Raeford, North Carolina woman, Tracey McNeill, was sentenced to 12 months and a day imprisonment for wire fraud. According to court documents, McNeill worked as a certified nursing assistant. Over a two-year period, McNeill fraudulently obtained Veterans Affairs (VA) and Office of Personnel Management (OPM) benefits by executing a power of attorney over a disabled U.S. Army veteran in her care. The investigation revealed that McNeill arranged for the victim, whom had dementia, to move into her home and then directed the VA and OPM to deposit his benefits into her bank account. A financial analysis showed that McNeill spent most of the funds on personal expenses, including rent, utilities, credit card payments, and personal purchases. In addition, McNeill completed beneficiary forms in which she listed herself as the beneficiary of the victim’s retirement and life insurance benefits.
On February 3, 2022, a Raleigh, North Carolina man, Furman Ford, was sentenced to 132 months in prison for mail fraud, wire fraud, and aggravated identity theft. According to court records and other evidence presented at trial, Ford was a New York Life (NYL) financial advisor who advised a 72-year-old client who had recently inherited real property valued at $1.3 million. Ford assisted in the sale of the property and the creation of a charitable annuity trust with NYL using the sale proceeds. As part of his responsibilities as the victim’s financial agent, Ford drafted and submitted letters of withdrawal from the victim’s annuity account to pay for certain expenses. During the investigation, agents identified 20 separate fraudulent letters of withdrawal drafted by Ford and submitted to NYL headquarters on behalf of the victim. The funds were diverted to Ford’s personal checking account without the victim’s knowledge or consent and used to fund Ford’s purchase of various personal items, including a BMW vehicle, Rolex watches, firearms, child support, and a cruise to the Bahamas. In total, Ford stole over $1.3 million from the victim.
On March 17, 2022, a Smyrna, Georgia man, Oluwadamilare Kolaogunbule, was sentenced to 71 months in prison for conspiracy to commit money laundering. According to court documents and other information presented in court, between 2014 and 2018, Kolaogunbule opened, maintained, and controlled approximately 20 different bank accounts at multiple financial institutions that were used to launder approximately $2.5 million in romance scam proceeds. Romance scammers exploit victims who are looking for companionship by creating fake profiles on online dating websites that include false personal details, such as the death of a spouse or military service. After creating the illusion of a romantic relationship to gain the victim’s trust, the scammer will typically solicit the victim for money to alleviate some fabricated crisis, such as a medical or business emergency. In this case, more than 60 victims from across the United States, many of whom were elderly, were defrauded by romance fraudsters who directed them to send funds to Kolaogunbule’s various accounts.
The Department also highlighted three other efforts: expansion of the Transnational Elder Fraud Task Force, success in returning money to victims and efforts to combat grandparent scams.
The Department announced that as part of its continuing efforts to protect older adults and bring perpetrators of fraud schemes to justice it is expanding the Transnational Elder Fraud Strike Force, adding 14 new U.S. Attorney’s Offices. Expansion of the Strike Force will help to coordinate the Department’s ongoing efforts to combat largest and most harmful fraud schemes that target or disproportionately impact older adults.
In the past year, the Department has notified over 550,000 people that they may be eligible for remission payments. Notifications were made to consumers whose information was sold by one of three data companies prosecuted by the Department and were later victims of “sweepstakes” or “astrology” solicitations that falsely promised prizes or individualized services in return for a fee. More than 150,000 of those victims cashed checks totaling $52 million, and thousands more are eligible to receive checks. Also notified were consumers who paid fraudsters perpetrating person-in-need scams and job scams via Western Union. In the past year, the Department has identified and contacted over 300,000 consumers who may be eligible for remission. Since March of 2020 more than 148,000 victims have received more than $366 million as a result of a 2017 criminal resolution with Western Union for the company’s willful failure to maintain an effective anti-money laundering program and its aiding and abetting of wire fraud.
Over the past year, the Department pursued cases against the perpetrators of “grandparent scams,” otherwise known as “person-in-need scams.” These scams typically begin when a fraudster, often based overseas, contacts an older adult and poses as either a grandchild, other family member or someone calling on behalf of a family member. Call recipients are told that their family member is in jeopardy and is urgently in need of money. When recently sentencing one of eight perpetrators of a grandparent scam indicted under the Racketeer Influenced and Corrupt Organizations Act, a federal judge described such scams “heartbreakingly evil.” The Department is working with government partners and others to raise awareness about these schemes.
Reporting from consumers about fraud and fraud attempts is critical to law enforcements efforts to investigate and prosecute schemes targeting older adults. If you or someone you know is age 60 or older and has been a victim of financial fraud, help is available the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This Department of Justice Hotline, managed by the Office for Victims of Crime, is staffed by experienced professional who provide personalized support to callers by assessing the needs of the victim and identifying next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting or connect them with agencies, and provide resources and referrals on a case-by-case basis. The hotline is staffed seven days a week from 6:00 a.m. to 11:00 p.m. [ET]. English, Spanish and other languages are available. More information about the Department’s elder justice efforts can be found on the Department’s Elder Justice website, www.elderjustice.gov.
Some of the cases that comprise today’s announcement are charges, which are merely allegations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
District of Montana takes part in Justice Department’s efforts to protect older adultsRead the Press Release
HELENA – The Justice Department announced today the results of its efforts over the past year to protect older adults from fraud and exploitation. During the past year, the Department and its law enforcement partners tackled matters that ranged from mass-marketing scams that impacted thousands of victims to bad actors scamming their neighbors. Substantial efforts were also made over the last year to return money to fraud victims. Today, the Department also announced it is expanding its Transnational Elder Fraud Strike Force to amplify efforts to combat scams originating overseas.
“We are intensifying our efforts nationwide to protect older adults, including by more than tripling the number of U.S. Attorneys’ offices participating in our Transnational Elder Fraud Strike Force dedicated to disrupting, dismantling and prosecuting foreign-based fraud schemes that target American seniors,” said Attorney General Merrick B. Garland. “This expansion builds on the Justice Department’s existing work to hold accountable those who steal funds from older adults, including by returning those funds to the victims where possible.”
“We are pleased to be participating on this important task force and applaud the Attorney General for his commitment to protecting older adults. Scamming older adults, who often trust and depend on others for help and care, will not be tolerated by our office. We are committed to fully investigating and prosecuting those who try to exploit our older citizens,” U.S. Attorney Jesse Laslovich said.
During the period from September 2021 to September 2022, Department personnel and its law enforcement partners pursued approximately 260 cases involving more than 600 defendants, both bringing new cases and advancing those previously charged.
This past year, the District of Montana prosecuted a number of cases in which older adults were victims of frauds or scams. The cases include:
- Ronald Lords, of Corvallis, an ex-lawyer who was sentenced to prison for defrauding investors in a real estate scheme.
- William Tempel, a Great Falls construction company official who was sentenced to prison for embezzling from a client.
- Kathy Hendrickson, of Washington, who was sentenced to prison for cyberstalking and harassing a Montana man.
- Ira Westbrook, of Bozeman, who pleaded guilty and is pending sentencing for stealing government benefits while acting as a fiduciary.
- Elizabeth Stephenson, of Billings, who was sentenced to prison in an identity theft case.
- Debra Roeber, of Butte, who was sentenced to prison for stealing more than $600,000 from a blind victim who was under her care.
- Theresa Chabot, of Kalispell, who pleaded guilty and is pending sentencing for running a money mule business for elder abuse.
The Department also highlighted three other efforts: expansion of the Transnational Elder Fraud Task Force, success in returning money to victims and efforts to combat grandparent scams.
The Department announced that as part of its continuing efforts to protect older adults and bring perpetrators of fraud schemes to justice it is expanding the Transnational Elder Fraud Strike Force, adding 14 new U.S. Attorney’s Offices. Expansion of the Strike Force will help to coordinate the Department’s ongoing efforts to combat largest and most harmful fraud schemes that target or disproportionately impact older adults.
In the past year, the Department has notified over 550,000 people that they may be eligible for remission payments. Notifications were made to consumers whose information was sold by one of three data companies prosecuted by the Department and were later victims of “sweepstakes” or “astrology” solicitations that falsely promised prizes or individualized services in return for a fee. More than 150,000 of those victims cashed checks totaling $52 million, and thousands more are eligible to receive checks. Also notified were consumers who paid fraudsters perpetrating person-in-need scams and job scams via Western Union. In the past year, the Department has identified and contacted over 300,000 consumers who may be eligible for remission. Since March of 2020 more than 148,000 victims have received more than $366 million as a result of a 2017 criminal resolution with Western Union for the company’s willful failure to maintain an effective anti-money laundering program and its aiding and abetting of wire fraud.
Over the past year, the Department pursued cases against the perpetrators of “grandparent scams,” otherwise known as “person-in-need scams.” These scams typically begin when a fraudster, often based overseas, contacts an older adult and poses as either a grandchild, other family member or someone calling on behalf of a family member. Call recipients are told that their family member is in jeopardy and is urgently in need of money. When recently sentencing one of eight perpetrators of a grandparent scam indicted under the Racketeer Influenced and Corrupt Organizations Act, a federal judge described such scams “heartbreakingly evil.” The Department is working with government partners and others to raise awareness about these schemes.
Reporting from consumers about fraud and fraud attempts is critical to law enforcements efforts to investigate and prosecute schemes targeting older adults. If you or someone you know is age 60 or older and has been a victim of financial fraud, help is available the National Elder Fraud Hotline: 1-833-FRAUD-11 or 833-372-8311.
This Department of Justice Hotline, managed by the Office for Victims of Crime, is staffed by experienced professional who provide personalized support to callers by assessing the needs of the victim and identifying next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting or connect them with agencies, and provide resources and referrals on a case-by-case basis. The hotline is staffed seven days a week from 6:00 a.m. to 11:00 p.m.[ET]. English, Spanish and other languages are available. More information about the Department’s elder justice efforts can be found on the Department’s Elder Justice website, www.elderjustice.gov.
Some of the cases that comprise today’s announcement are charges, which are merely allegations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
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District of New Jersey Takes Part in Department’s Wide-Ranging Efforts to Protect Older AdultsRead the Press Release
NEWARK, N.J. – The Justice Department announced today the results of its efforts over the past year to protect older adults from fraud and exploitation. During the past year, the Department and its law enforcement partners tackled matters that ranged from mass-marketing scams that impacted thousands of victims to bad actors scamming their neighbors. Substantial efforts were also made over the last year to return money to fraud victims. Today, the Department also announced it is expanding its Transnational Elder Fraud Strike Force to amplify efforts to combat scams originating overseas.
“We are intensifying our efforts nationwide to protect older adults, including by more than tripling the number of U.S. Attorneys’ offices participating in our Transnational Elder Fraud Strike Force dedicated to disrupting, dismantling and prosecuting foreign-based fraud schemes that target American seniors,” Attorney General Merrick B. Garland said. “This expansion builds on the Justice Department’s existing work to hold accountable those who steal funds from older adults, including by returning those funds to the victims where possible.”
“Preying on our older citizens, who are often vulnerable to these types of fraud scams, is something our office takes especially seriously,” U.S. Attorney Sellinger said. “As scammers continue to concoct new ways to try and trick our parents and grandparents out of their money, we will be there with our law enforcement partners to stop them, and to always try to return stolen funds to the victims.”
From September 2021 to September 2022, Department personnel and its law enforcement partners pursued approximately 260 cases involving more than 600 defendants, both bringing new cases and advancing those previously charged.
This past year, the District of New Jersey brought charges against multiple defendants for devising and carrying out fraudulent schemes that specifically targeted elderly victims. This included seven leaders of the Cape Town Zone of the Neo Black Movement of Africa, also known as “Black Axe,” and an eighth man who conspired with a Black Axe leader, all of whom were charged with multiple federal crimes relating to internet-based romance scams and advance fee schemes they perpetrated from South Africa. The District also obtained guilty pleas from multiple defendants whose lottery sweepstakes scams and romance scams had targeted elderly victims in New Jersey.
As part of the District of New Jersey’s elder fraud efforts, the Office engages in outreach to raise awareness about scams and exploitation and preventing victimization. This year, these outreach efforts included a presentation to seniors at the Springfield, New Jersey community center on April 28, 2022, entitled “Identity Theft & Fraud Prevention,” in cooperation with representatives from the Union County Prosecutor’s Office and the Springfield, New Jersey, Police Department.
The Department also highlighted three other efforts: expansion of the Transnational Elder Fraud Task Force, success in returning money to victims, and efforts to combat grandparent scams.
The Department announced that as part of its continuing efforts to protect older adults and bring perpetrators of fraud schemes to justice it is expanding the Transnational Elder Fraud Strike Force, adding 14 new U.S. Attorney’s Offices. Expansion of the Strike Force will help to coordinate the Department’s ongoing efforts to combat largest and most harmful fraud schemes that target or disproportionately impact older adults.
In the past year, the Department has notified over 550,000 people that they may be eligible for remission payments. Notifications were made to consumers whose information was sold by one of three data companies prosecuted by the Department and were later victims of “sweepstakes” or “astrology” solicitations that falsely promised prizes or individualized services in return for a fee. More than 160,000 of those victims cashed checks totaling $62 million, and thousands more are eligible to receive checks. Also notified were consumers who paid fraudsters perpetrating person-in-need scams and job scams via Western Union. In the past year, the Department has identified and contacted over 300,000 consumers who may be eligible for remission. Since March of 2020 more than 148,000 victims have received more than $366 million as a result of a 2017 criminal resolution with Western Union for the company’s willful failure to maintain an effective anti-money laundering program and its aiding and abetting of wire fraud.
Over the past year, the Department pursued cases against the perpetrators of “grandparent scams,” otherwise known as “person-in-need scams.” These scams typically begin when a fraudster, often based overseas, contacts an older adult and poses as either a grandchild, other family member or someone calling on behalf of a family member. Call recipients are told that their family member is in jeopardy and is urgently in need of money. When recently sentencing one of eight perpetrators of a grandparent scam indicted under the Racketeer Influenced and Corrupt Organizations Act, a federal judge described such scams “heartbreakingly evil.” The Department is working with government partners and others to raise awareness about these schemes.
Reporting from consumers about fraud and fraud attempts is critical to law enforcements efforts to investigate and prosecute schemes targeting older adults. If you or someone you know is age 60 or older and has been a victim of financial fraud, help is available the National Elder Fraud Hotline: 1-866 FRAUD-11 (1-833-372-8311). This Department of Justice Hotline, managed by the Office for Victims of Crime, is staffed by experienced professional who provide personalized support to callers by assessing the needs of the victim and identifying next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting or connect them with agencies, and provide resources and referrals on a case-by-case basis. The hotline is staffed seven days a week from 6:00 a.m. to 11:00 p.m.[ET]. English, Spanish and other languages are available. More information about the Department’s elder justice efforts can be found on the Department’s Elder Justice website, www.elderjustice.gov.
Some of the cases that comprise today’s announcement are charges, which are merely allegations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
District Man Found Guilty by Jury of Second-Degree Murder for Killing Woman at Her ApartmentRead the Press Release
WASHINGTON – Darnell Sterling, 57, of Washington, D.C., has been found guilty by a jury of charges stemming from the murder of his girlfriend, whose body has never been recovered, announced U.S. Attorney Matthew M. Graves and Robert J. Contee III, Chief of the Metropolitan Police Department (MPD).
Sterling was found guilty on Oct. 3, 2022, following a trial in the Superior Court of the District of Columbia, of second-degree murder and a related charge of contempt. He is to be sentenced on Feb. 3, 2023, by the Honorable Maribeth Raffinan.
According to the government’s evidence, in the early morning hours of July 17, 2020, Sterling fatally attacked the victim, Olga Ooro, 34, inside her apartment in the 300 block of Massachusetts Avenue NW. Ms. Ooro’s body has never been found. Sterling killed Ms. Ooro while her seven-year-old son was asleep, in the apartment, in his own bedroom. He cleaned up the crime scene and left the building. He then returned the next night and used Ms. Ooro’s keys to enter the building and retrieve the body from a hidden location. He then loaded the body into his car and disposed of it.
Ms. Ooro was reported missing after her son was found wandering the apartment building.
At the time of the murder, Sterling was under a court order to stay away from Ms. Ooro, following his arrest for assaulting her on April 20, 2020.
Sterling was arrested in the murder case on July 23, 2020. He has been in custody ever since.
In announcing the verdict, U.S. Attorney Graves and Chief Contee commended the work of those who investigated the case from the Metropolitan Police Department. They also expressed appreciation for the assistance provided by the FBI, the Maryland State Police, the Ocean City, Maryland, Police Department, the District of Columbia Department of Forensic Sciences, and Bode Technology. They acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Supervisory Paralegal Specialist Tasha Harris; Paralegal Specialist Stephanie Gilbert; Investigative Analyst Zachary McMenamin; Victim/Witness Advocate Christina Bloodworth; former Victim/Witness Advocate Marcia Rinker; Maenylie Watson, Tonya Jones, and Katina Adams-Washington, of the Victim/Witness Assistance Unit; Supervisory Litigation Technology Specialist Leif Hickling; Litigation Technology Specialist Maisha Treadwell, and Intern Ahna Halpern.
Finally, they commended the work of Assistant U.S. Attorneys Michael Liebman and Kristian Hinson, who investigated and prosecuted the case.
Connecticut U.S. Attorney’s Office Takes Part in Department’s Wide-Ranging Efforts to Protect Older AdultsRead the Press Release
The Justice Department today announced the results of its efforts over the past year to protect older adults from fraud and exploitation. During the past year, the Department and its law enforcement partners tackled matters that ranged from mass-marketing scams that impacted thousands of victims to bad actors scamming their neighbors. Substantial efforts were also made over the last year to return money to fraud victims. Today, the Department also announced it is expanding its Transnational Elder Fraud Strike Force to amplify efforts to combat scams originating overseas.
“We are intensifying our efforts nationwide to protect older adults, including by more than tripling the number of U.S. Attorneys’ offices participating in our Transnational Elder Fraud Strike Force dedicated to disrupting, dismantling and prosecuting foreign-based fraud schemes that target American seniors,” said Attorney General Merrick B. Garland. “This expansion builds on the Justice Department’s existing work to hold accountable those who steal funds from older adults, including by returning those funds to the victims where possible.”
“Elder fraud schemes are becoming more sophisticated and more dastardly, and our office will continue to prioritize the prosecution of individuals who victimize vulnerable individuals,” said U.S. Attorney Vanessa Roberts Avery. “We are also committed to engaging with older members of our community to help them avoid scams that put them at great financial risk.”
From September 2021 to September 2022, Justice Department personnel and its law enforcement partners pursued approximately 260 cases involving more than 600 defendants, both bringing new cases and advancing those previously charged.
Elder fraud cases prosecuted in the District of Connecticut include:
- U.S. v. Clason – Matthew Clason, of Cheshire, was a registered investment advisor who stole more than $600,000 from an elderly client. In December 2021, he was sentenced to 30 months of imprisonment.
- U.S. v. Fasasi, et al – Farouq Fasasi and several associates in Connecticut were involved in lottery scams and romance fraud scams that defrauded primarily elderly victims across the country of more than $5 million. One elderly Connecticut resident lost more than $1 million. Fasasi and five others were convicted of various charges stemming from the schemes. In August 2022, Fasasi was sentenced to 14 years of imprisonment.
- U.S. v. Senerth – Douglas Senerth, of South Windsor, stole approximately $679,000 from his grandparents by falsely claiming to be a college student and inducing them to give him money to pay for nonexistent college tuition and other related expenses, and funds that he claimed he would invest on their behalf. In July 2022, he was sentenced to 18 months of imprisonment.
- U.S. v. Singh – Jhanannie Singh, of Queens, New York, stole hundreds of thousands of dollars in U.S. Savings Bonds from an elderly woman for whom she provided home health services, and then enlisted others to help her sell the bonds. Singh pleaded guilty in August 2022 and awaits sentencing.
- U.S. v. Ivy – Gregory Ivy, of New Haven, stole blank checks from a retired woman for whom he performed odd jobs. Ivy forged the victims signature on some of the checks and deposit them into his personal account, and also provided checks to another individual, who further shared the victim’s bank account information. The victim lost more than $479,000 through this scheme, and Ivy personally stole more than $162,000. Ivy pleaded guilty in September 2022 and awaits sentencing.
As part of the District of Connecticut’s elder fraud efforts, it engages in outreach to the community and industry to raise awareness about scams and exploitation and preventing victimization. This year, members of the office have made presentations at several community senior centers in Connecticut, AARP-CT roundtables and law enforcement conferences.
The Justice Department also highlighted three other efforts: expansion of the Transnational Elder Fraud Task Force, success in returning money to victims and efforts to combat grandparent scams.
The Department announced that, as part of its continuing efforts to protect older adults and bring perpetrators of fraud schemes to justice, it is expanding the Transnational Elder Fraud Strike Force, adding 14 new U.S. Attorney’s Offices. Expansion of the Strike Force will help to coordinate the Department’s ongoing efforts to combat largest and most harmful fraud schemes that target or disproportionately impact older adults.
In the past year, the Justice Department has notified over 550,000 people that they may be eligible for remission payments. Notifications were made to consumers whose information was sold by one of three data companies prosecuted by the Department and were later victims of “sweepstakes” or “astrology” solicitations that falsely promised prizes or individualized services in return for a fee. More than 150,000 of those victims cashed checks totaling $52 million, and thousands more are eligible to receive checks. Also notified were consumers who paid fraudsters perpetrating person-in-need scams and job scams via Western Union. In the past year, the Department has identified and contacted over 300,000 consumers who may be eligible for remission. Since March 2020, more than 148,000 victims have received more than $366 million as a result of a 2017 criminal resolution with Western Union for the company’s willful failure to maintain an effective anti-money laundering program and its aiding and abetting of wire fraud.
Over the past year, the Justice Department pursued cases against the perpetrators of “grandparent scams,” otherwise known as “person-in-need scams.” These scams typically begin when a fraudster, often based overseas, contacts an older adult and poses as either a grandchild, other family member or someone calling on behalf of a family member. Call recipients are told that their family member is in jeopardy and is urgently in need of money. When recently sentencing one of eight perpetrators of a grandparent scam indicted under the Racketeer Influenced and Corrupt Organizations Act, a federal judge described such scams “heartbreakingly evil.” The Department is working with government partners and others to raise awareness about these schemes.
Reporting from consumers about fraud and fraud attempts is critical to law enforcements efforts to investigate and prosecute schemes targeting older adults. If you or someone you know is age 60 or older and has been a victim of financial fraud, help is available the National Elder Fraud Hotline: 1-833-FRAUD-11 or 833-372-8311. This Department of Justice Hotline, managed by the Office for Victims of Crime, is staffed by experienced professional who provide personalized support to callers by assessing the needs of the victim and identifying next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting or connect them with agencies, and provide resources and referrals on a case-by-case basis. The hotline is staffed seven days a week from 6:00 a.m. to 11:00 p.m.[ET]. English, Spanish and other languages are available. More information about the Department’s elder justice efforts can be found on the Department’s Elder Justice website, www.elderjustice.gov.
Some of the cases that comprise today’s announcement are charges, which are merely allegations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Columbus man indicted on firearms chargeRead the Press Release
WHEELING, WEST VIRGINIA – Quintae L. Stubbs, of Columbus, Ohio, was indicted today on a firearms charge, United States Attorney William Ihlenfeld announced.
Stubbs, 31, is charged with one count of “Unlawful Possession of a Firearm.” Stubbs, a person prohibited from having firearms because of prior convictions, is accused of having a 9mm pistol in July 2022 in Ohio County.
Stubbs faces up to 15 years of incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Clayton J. Reid is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Wheeling Police Department investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Colorado Man Charged with Participation in Vermont Kidnapping and MurderRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that today, Jerry Banks, 35, of Fort Garland, Colorado was charged with a murder-for-hire conspiracy and the kidnapping of Gregory Davis, a resident of Danville, Vermont, on January 6, 2018, resulting in Davis’s death. Banks was added as a defendant to the murder-for-hire conspiracy case already pending against Serhat Gumrukcu, 39, of Los Angeles, California, and Berk Eratay, 36, of Las Vegas, Nevada.
Following an exhaustive investigation by detectives with the Vermont State Police and agents of the Federal Bureau of Investigation, law enforcement obtained a criminal complaint in April 2022 that charged Banks with kidnapping Davis. According to the complaint affidavit, Banks arrived at Davis’s Danville residence on the evening of January 6, 2018, posing as a United States Marshal claiming to arrest Davis. Davis was found dead the next day in a snowbank on a Barnet, Vermont road several miles from the Davis residence.
In May 2022, in a separate case, the grand jury charged Gumrukcu and Eratay with conspiring in a murder-for-hire scheme, resulting in Davis’s death. According to court records, Gumrukcu and Davis were involved in a business dispute at the time of Davis’s murder. Court records outline evidence that Eratay contacted Aron Ethridge, on Gumrukcu’s behalf, to find someone to kill Davis. Ethridge then enlisted Banks as the hitman. Court records allege that Eratay paid Ethridge over $100,000 to murder Davis.
On May 24, 2022, Gumrukcu was arrested in Los Angeles and Eratay was arrested in Las Vegas. Both have been held in custody since that date. Gumrukcu was arraigned on the murder-for-hire conspiracy charge today in United States District Court in Burlington in front of Chief Judge Geoffrey W. Crawford. Last week, Judge Crawford denied Eratay’s request to be released from custody pending trial. Ethridge has pleaded guilty to hiring Banks to murder Davis and conspiring to kidnap Davis.
The charges in the superseding indictment carry a mandatory sentence of life imprisonment. The superseding indictment contains accusations only, and the defendants are presumed innocent until and unless proven guilty.
The prosecutors are Assistant United States Attorneys Paul Van de Graaf and Jonathan Ophardt. Banks is represented by Michael Desautels and Mary Nerino from the Federal Public Defender’s Office. Ethridge is represented by Mark Kaplan, Esq. Eratay is represented by Robert Katims, Esq. Gumrukcu is represented by David Kirby, Esq.
U.S. Attorney Nikolas P. Kerest commended the efforts of the Federal Bureau of Investigation and the Vermont State Police for their collaborative investigation of Davis’s murder. U.S. Attorney Kerest also thanked the Internal Revenue Service Criminal Investigations for assisting in the ongoing investigation.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. For more information about Project Safe Neighborhoods, please visit https://www.justice.gov/psn
Cleveland men indicted on money laundering chargesRead the Press Release
WHEELING, WEST VIRGINIA – Two Cleveland, Ohio men are facing money laundering charges, United States Attorney William Ihlenfeld announced.
Robert Jermele Atkinson, 41, and Micah A. Atkinson, 26, were indicted today on charges involving money laundering. Robert is accused of gambling proceeds from illegal drug activity at Mountaineer Casino in Hancock County and elsewhere, beginning in 2020. According to the indictment, once Robert was arrested on a drug-related offense in October 2020, Micah then continued to gamble those proceeds. They are accused of depositing winnings from said gambling in bank accounts and safe deposit box. On four separate occasions, Robert and Micah Atkinson placed bets in excess of $10,000 for a total of $70,000.00. Robert Atkinson is pending sentencing in a drug related case in the Northern District of Ohio.
Robert Atkinson and Micah Atkinson each face up to 10 years of incarceration and a fine of up to $250,000 for each of the charges they are facing. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Jennifer T. Conklin is prosecuting the case on behalf of the government. The West Virginia State Police investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.