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27 July 2022
Serial Bank Robber Sentenced to More Than 27 Years in Federal PrisonRead the Press Release
Orlando, Florida – U.S. District Judge Carlos E. Mendoza today sentenced Raul Reyes-Vazquez (50, Tampa) to 27 years and 3 months in federal prison for committing bank robberies while on federal supervised release in connection with a bank robbery he had committed in 2008. The court also ordered Reyes-Vazquez to forfeit $28,579, which are traceable proceeds of the February 2022 offenses. Reyes-Vazquez had pleaded guilty on May 16, 2022.
According to court documents, on July 28, 2008, Reyes-Vazquez committed a bank robbery through the threat of violence at a Chase Bank in Manhattan. He was convicted and sentenced for that offense in the U.S. District Court for the Southern District of New York. He also committed a series of bank robberies in 2006 in Hialeah and Miami for which he was sentenced in 2019.
In February 2022, Reyes-Vazquez was still serving a sentence of supervised release for his federal conviction for the bank robbery he had committed in 2008.
On February 16, 2022, Reyes-Vazquez entered a Trustco Bank branch in Orlando and announced that it was a robbery and that he would shoot employees if the teller did not give him the money. The teller complied and Reyes-Vazquez obtained $4,200. On February 22, 2022, Reyes-Vazquez entered a Wells Fargo bank branch in Orlando, announced it was a robbery, and threatened to shoot everyone in the bank if they did not provide him money. Bank employees provided a total of $43,695, nearly $20,000 of which was recovered when law enforcement arrested Reyes-Vazquez two days later. At sentencing, Reyes-Vazquez was determined to be a career offender under federal sentencing rules.
This case was investigated by the Federal Bureau of Investigation, with assistance from Orange County Sheriff’s Office and the Orlando Police Department. It was prosecuted by Assistant United States Attorney Dana E. Hill.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety – one that includes investigating and prosecuting crimes, along with prevention and re-entry efforts. In the Middle District of Florida, U.S. Attorney Roger B. Handberg coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Savage Life Boys Gang Member Pleads Guilty to Racketeering ChargesRead the Press Release
DAVENPORT, Iowa – On July 25, 2022, a Davenport man, Darion Daquan Gardner, age 27, pleaded guilty to Assault With a Dangerous Weapon in Aid of Racketeering, Causing Death Through Use of a Firearm, and Attempted Murder in Aid of Racketeering.
In 2016 and 2017, as a member of Savage Life Boys (SLB), a Davenport-based street gang, Gardner was involved in multiple shootings, including at a dice game in December 2016, and at the Hotel Davenport in February 2017. On December 16, 2016, Gardner and other SLB members robbed and physically assaulted another male, including pistol-whipping him. SLB members also shot at the male’s vehicle as the male and an associate fled the area.
On February 12, 2017, at a concert at the Hotel Davenport, Gardner and several other SLB members started a physical altercation with an individual they believed had disrespected their gang. During the altercation, Gardner fired several shots, striking and killing one male and striking and injuring another.
Gardner committed these acts with the intent to maintain or increase his position in the gang.
Gardner is scheduled to be sentenced on November 29, 2022. As part of the plea agreement, the government and Gardner have agreed to recommend a sentence of 450 months in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Richard D. Westphal stated “This plea was the result of a dedicated and long-term investigation that highlights our commitment with local law enforcement to combatting violent crime. The families and friends of the victims in this investigation continue to feel the pain that acts of gun violence can inflict. We will continue to pursue every available law enforcement tool and partnership towards the common goal of community safety.”
Davenport Police Chief Paul Sikorski said “Investigators from the Davenport Police Department have been diligently working on this case for several years with the U.S. Attorney’s Office of the Southern District of Iowa and other collaborative partners. Their persistence and dedication to bringing justice and accountability in the 2017 homicide at the Hotel Davenport and several other shootings and violent encounters this subject was involved in is admirable. I am incredibly proud of the dedication to public safety that is demonstrated in this case and every day by officers and investigators at the Davenport Police Department. This case is a great example of the incredible partnership we have with the U.S. Attorney’s Office and their commitment to justice for our community and the victims of violent crime.” Peoria, Illinois Police Department assisted in the investigation.
Rocky Mount Man Sentenced to More than 29 Years in Federal Prison for Armed Robbery SpreeRead the Press Release
RALEIGH, N.C. – A Rocky Mount man was sentenced to 349 months in prison for multiple armed robberies in July 2019 across Wilson, Nash, Edgecombe, Pitt, Halifax, and Greene Counties. On December 22, 2021, Jequayves Demondre Britt pled guilty to the charges.
According to court documents and other information presented in court, Britt, 21, committed a series of armed commercial robberies between July 12 and July 21, 2019, with his co-defendant and getaway driver, Jacob Austin Evans.
On July 12, 2019, Britt robbed the Kangaroo Express on Sunset Avenue in Rocky Mount with a gun. Britt also robbed a customer at gunpoint. That same evening, Britt robbed the Fuel Doc convenience store on Cokey Road in Rocky Mount. During the robbery, Britt brandished a firearm and stole an undetermined amount of cash from the register before fleeing the scene. Cell phone records revealed Evans was present at both businesses during the times of the robberies. The robberies were captured on video surveillance footage from inside the businesses.
On July 14, 2019, Britt and Evans attempted to rob the S&J Mart located in Wilson. During the robbery, Britt brandished a firearm and demanded money, but the clerk refused to comply with Britt’s demands. Britt fled on foot. Evans was captured on video surveillance footage from inside the business ten minutes prior to Britt’s arrival. That same evening, Britt robbed the City Gas and Convenience store on Forest Hills Road in Wilson. Video footage from inside the store shows Britt brandishing a firearm before stealing more than $1,000 in cash. After this robbery, Britt robbed the Speedway gas station on North Wesleyan Boulevard in Rocky Mount. Video footage shows Britt wearing the same clothes as the two Wilson robberies from earlier that evening.
On July 16, 2019, Britt robbed the New Dixie Mart located on West 5th Street in Roanoke Rapids. During the robbery, Britt brandished a firearm and stole more than $600 from the business. Video surveillance footage captured Britt committing the robbery. Later that evening, Britt robbed the Kangaroo Express on Sunset Avenue in Rocky Mount. Britt carried a firearm during the robbery and threatened to shoot one of the customers if the clerk did not turn over the money. Ultimately, Britt stole $49 from the business. Video surveillance footage captured the events of the robbery. Cell phone records revealed Evans was present at the business around the time of the robbery.
On July 18, 2019, Britt robbed the Dollar General on South Hathaway Boulevard in Sharpsburg. During the robbery, Britt brandished a firearm and stole more than $1,000 in business proceeds. Video surveillance footage from inside the business captured the events of the robbery. That same evening, Britt robbed the Dollar General on East Hamlet Street in Pinetops. During the robbery, Britt pointed his firearm at the two store clerks and stole more than $2,300 in proceeds. Video surveillance footage showed Britt wearing the same clothes as the robbery in Sharpsburg. Cell phone records revealed Evans was present at the business at the time of the robbery.
On July 21, 2019, Britt attempted to rob the Circle K on South Memorial Drive in Greenville. Witnesses observed Britt carrying a firearm as he attempted to gain entry to the Circle K. However, the business had just closed so Britt was unable to get through the locked doors and subsequently fled the area. Later that evening, Britt and Evans robbed the Sheetz gas station on Portertown Road in Greenville. Surveillance video footage shows Evans entering the store as a lookout prior to the robbery. During the robbery, Britt pointed a firearm at the clerk and demanded money from the register. Britt stole $500 in proceeds before fleeing. Cell phone records also revealed Evans was present at the business at the time of the robbery.
That same evening, Britt robbed the Speedway gas station on US Highway 258 in Snow Hill. Britt brandished a firearm during the robbery and stole over $230 in proceeds from the business. As he fled from the store, Britt accidentally discharged his firearm and shot himself in the leg. Britt ultimately made it to Evans’ car and the pair fled the scene. Evans then transported Britt to the Wayne Memorial Hospital in Goldsboro for treatment of the gunshot wound. Britt was arrested on state charges on July 26, 2019.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge James C. Dever III. The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the North Carolina State Bureau of Investigation (SBI), the Wilson County Sheriff’s office, the Wilson Police Department, the Rocky Mount Police Department, the Sharpsburg Police Department, the Roanoke Rapids Police Department, the Pinetops Police Department, the Greenville Police Department, and the Greene County Sheriff’s Office investigated the case. Former Assistant U.S. Attorney J.D. Koesters and Assistant U.S. Attorney Aakash Singh prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 4:20-CR-22-D.
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Repeat Felon Sentenced to 46 Months in Federal Prison for Illegal Possession of a FirearmRead the Press Release
INDIANAPOLIS – Charles Brady, 41, of Indianapolis, was sentenced to 46 months in federal prison after pleading guilty to being a felon in possession of a firearm.
According to court documents, on September 17, 2021, Brady was stopped in his vehicle by Indianapolis Metropolitan Police Department (IMPD) officers, and they discovered he had an outstanding warrant for his arrest. A later search of his vehicle yielded a black 9mm Taurus G2c that Brady admitted to possessing. Brady is prohibited from possessing firearms due to multiple prior felony convictions, including attempted robbery where the defendant tried to rob a victim by pointing a firearm in his face and threatening to shoot him. While serving the probation portion of his sentence for that case, Brady was convicted of another felony offense for dealing cocaine. Brady also has a prior felony conviction for Residential Entry after breaking into his ex-girlfriend’s house after a court had issued a protective order against him.
Zachary A. Myers, U.S. Attorney for the Southern District of Indiana, and Indianapolis Metropolitan Police Department Chief Randal Taylor made the announcement.
The IMPD investigated the case. The Bureau of Alcohol, Tobacco, Firearms and Explosives provided valuable assistance. The sentence was imposed by U.S. District Judge James Patrick Hanlon. As part of the sentence, Judge Hanlon ordered that Brady be supervised by the U.S. Probation Office for three years following his release from federal prison.
U.S. Attorney Myers thanked Assistant U.S. Attorney Abhishek S. Kambli who prosecuted this case.
This case was brought as part of the LEATH Initiative (Law Enforcement Action to Halt Domestic Violence), named in honor of Indianapolis Metropolitan Police Department (IMPD) Officer Breann Leath, who was killed in the line of duty while responding to a domestic disturbance call. A partnership among the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the IMPD, and the U.S. Attorney’s Office for the Southern District of Indiana, the LEATH Initiative focuses federal, state, and local law enforcement resources on domestic violence offenders who illegally possess firearms.
Additionally, this case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement, and the local community to develop effective, locally based strategies to reduce violent crime.
Recidivist Manchester Drug Dealer Sentenced to 9 Years in Prison for Drug DistributionRead the Press Release
Kermit Ceasar, 45, of Manchester, was sentenced to 108 months in federal prison after pleading guilty to one count of cocaine distribution and six counts of crack cocaine distribution, United States Attorney Jane E. Young announced today.
The convictions resulted from a series of drug sales that Ceasar made in Manchester to an undercover informant between April and September of 2021. This case is Ceasar's third federal drug conviction in the District of New Hampshire.
"Kermit Ceasar is a recidivist drug dealer who, for his entire adult life when not imprisoned, has been selling crack cocaine in Manchester. Today's significant sentence will hopefully send the message to those who traffic crack cocaine that my office will take all steps possible to protect the public from recidivist drug dealers," said U.S. Attorney Young. "Seeking lengthy periods of incarceration for cases like this are a critical facet to keeping our communities safe from career criminals."
“Kermit Ceasar has trafficked crack cocaine his entire adult life. In fact, the only time he was not dealing crack was when he was behind bars, which, sadly has been for approximately 20 of the last 27 years. Through his own actions, he has repeatedly degraded the community in which he lives and put public safety at risk," said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. "Today’s sentencing should send a strong message to recidivist drug dealers in New Hampshire that they will face significant consequences for their criminal conduct."
This matter was investigated by the Federal Bureau of Investigations and the Manchester Police Department. The case was prosecuted by Assistant United States Attorney Seth R. Aframe.
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Rap group sent to prison for drug schemeRead the Press Release
CORPUS CHRISTI, Texas – A third individual has been sent to prison for his role in a large-scale narcotics distribution operation involving multiple properties throughout Corpus Christi, announced U.S. Attorney Jennifer B. Lowery.
Javon Hicks aka Drank Nitti Kasino, 41, Corpus Christi, pleaded guilty April 5.
Co-conspirator Dwayne Thompson aka Muddy Kasino, 39, and Zackari Williams aka Arm and Hammer Zone, 30, both of Corpus Christi, pleaded guilty to the same charges March 9 and March 30, respectively.
Today, U.S. District Judge Drew B. Tipton ordered Hicks to serve a total of 138 months, in federal prison. He must also serve five years of supervised release following the sentence.
Hicks and Thompson forfeited personal items including cars, guns, jewelry and cash valued at more than $123,000 following their pleas.
At the time of their pleas, the individuals admitted they were each part of a hip-hop group that produced music under the Kasino World label. They used various houses and apartments throughout Corpus Christi to record their songs and videos. Investigation further revealed the group members also used the locations to distribute crack cocaine and meth with at least 100 sales per day.
Thompson and Williams have previously received their sentences and are currently serving 150 and 120 months, respectively, in prison.
Hicks will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration conducted the investigation with the assistance of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Corpus Christi Police Department. Assistant U.S. Attorneys Roland Swanson and Dennis E. Robinson prosecuted the case.
Randolph Man Pleads Guilty to Production of Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney Trini E. Ross announced today that Alexander Carnahan, 29, of Randolph, NY, pleaded guilty before U.S. District Judge John L. Sinatra, Jr. to two counts of production of child pornography. The charges carry a mandatory minimum penalty of 15 years in prison, a maximum of 30 years, and a $250,000 fine.
Assistant U.S. Attorney Charles M. Kruly, who is handling the case, stated that on January 15, 2020, and April 28, 2020, Carnahan removed Minor Victim 1’s clothing and took a video of Victim 1’s naked body. Carnahan did so because he was sexually attracted to Victim 1, who was 11 years old. During the investigation, law enforcement recovered additional images and videos of Victim 1 in video files belonging to Carnahan.
The plea is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia, and the Jamestown Police Department, under the direction of Chief Timothy Jackson.
Sentencing is scheduled for November 17, 2022, at 11:00 a.m. before Judge Sinatra.
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Quincy Man Arrested for Defrauding Victims Using Various Online SchemesRead the Press Release
BOSTON – A Quincy man was arrested yesterday in connection with his role in expansive online fraud schemes targeting individuals in the United States.
Kelechi Collins Umeh, 39, was charged with one count of conspiracy to commit bank fraud. Umeh was released on conditions following an initial appearance yesterday before U.S. District Court Magistrate Judge Jennifer C. Boal.
According to the charging document, Umeh participated in a series of online scams – including romance, advance fee and business email compromise (BEC) schemes – designed to defraud victims into sending money to accounts controlled by him and his co-conspirators. Romance scams occur when a criminal adopts a fake online identity to gain a victim’s affection and trust. The scammer then uses the illusion of a romantic or close relationship to manipulate and/or steal from the victim. Advance fee scams occur when a criminal asks a victim to pay a fee up front—usually described as a fee, tax, or commission—in order to obtain a bigger payout later, but that payout never occurs. BEC schemes occur when a criminal sends email messages that appear to come from a known source (e.g., “spoofing” a legitimate business email account) to cause victims to transfer funds to accounts controlled by the scammers.
It is alleged that Umeh used fake passports in the names of numerous aliases to open bank accounts in and round Boston to collect and launder the proceeds of the online scams. Umeh and co-conspirators then rapidly executed large cash withdrawals from those accounts, often within days of the deposit and generally structured in amounts less than $10,000, allegedly in an effort to evade detection and currency transaction reporting requirements.
The charge of conspiracy to commit bank fraud provides for a sentence of up to 30 years in prison, five years of supervised release and a fine of up to $1 million or twice the gross gain or loss, whichever is greater, and forfeiture. 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; Matthew B. Millhollin, Special Agent in Charge of Homeland Security Investigations in Boston; Ketty Larco-Ward, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division; and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. Assistant U.S. Attorney Kristen A. Kearney of Rollins’ Securities, Financial & Cyber Fraud Unit is prosecuting the case.
The details contained in the charging document are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Potter, Nebraska Man Sentenced for Possession with Intent to Distribute MethamphetamineRead the Press Release
Acting United States Attorney Steven A. Russell announced that Stetson Reinick, 35, was sentenced July 26, 2022, in federal court in Omaha, Nebraska, for possession with intent to distribute 5 grams or more of actual methamphetamine. Chief United States District Judge Robert F. Rossiter Jr. sentenced Reinick to 110 months’ imprisonment. There is no parole in the federal system. After his release from prison, he will begin a five-year term of supervised release.
On September 21, 2020, law enforcement performed a trash pull at the residence of Reinick and co-defendant, Stephanie Mitchell. Law enforcement seized foil with burned residue that tested positive for heroin. As a result, they were able to obtain a search warrant for the residence. They located a backpack in a back bedroom that contained 21 grams of actual methamphetamine, scales, and drug paraphernalia. In Reinick’s bedroom, a handgun was found between the mattress and headboard on Reinick’s side of the bed.
Mitchell’s trial is scheduled for August 22, 2022.
This case was investigated by the Cheyenne County, Nebraska, Sheriff’s Office.
Portage Man Sentenced to 16 Years’ Imprisonment for Leading Scheme to Defraud Amazon’s Textbook Rental ProgramRead the Press Release
Talsma is last of four defendants sentenced for participating in the mail fraud scheme
GRAND RAPIDS, MICHIGAN — U.S. Attorney Mark Totten announced today that Chief United States District Judge Hala Y. Jarbou sentenced Geoffrey Mark Hays Talsma, 37, of Portage, Michigan, to 16 years’ imprisonment for mail fraud and aggravated identity theft. Talsma’s sentence additionally includes an order to pay restitution to Amazon in the amount of $3,227,347.82. While imposing the sentence, Chief Judge Jarbou commented that Talsma “concocted the scheme and involved many others.”
“Financial crime harms businesses and harms consumers. When someone cheats, we all pay,” said U.S. Attorney Totten. “My office will not tolerate financial fraud and will vigorously pursue those who profit from defrauding others.”
According to court documents, from January 2016 to March 2021, Talsma defrauded Amazon by using the internet to create numerous Amazon accounts and email accounts to rent textbooks and sell the textbooks for a profit when he should have returned the textbooks or paid the agreed upon buy-out price. Talsma caused Amazon to ship the textbooks through the United States Postal Service or across state lines using private commercial carriers. He concealed his fraudulent activities in part by recruiting and paying unwitting individuals to accept shipments of stolen textbooks at their homes so that Amazon would not detect a pattern of large volumes of books going to locations associated with him. Over time, Talsma taught some of these same individuals his scheme to defraud and actively supervised their participation in the fraud. Defendant shared the profits of the fraud scheme with these individuals after he sold the textbooks over the internet and at various bookstores, including a bookstore in Kalamazoo, Michigan. Additionally, according to the plea agreement, Talsma also ordered rental textbooks in the names of unwitting individuals and then pretended to be those individuals when calling Amazon and falsely claiming that he did not receive the textbooks. Talsma then received a credit from Amazon that he used to order additional textbooks. The fraud scheme caused losses to Amazon well in excess of $3,000,000.00.
“For years, Talsma and others enriched themselves by targeting an Amazon program designed to help students save money,” said James A. Tarasca, Special Agent in Charge of the FBI in Michigan. “Mr. Talsma's sentence sends a strong message that the FBI is committed to working with corporations and our law enforcement counterparts to root out this type of fraud and to hold those who participate in these schemes accountable for their criminal behavior.”
“The U.S. Postal Inspection Service is committed to working with our law enforcement partners to pursue those who utilize the U.S. Mail to perpetrate fraudulent schemes and bring them to justice” said Inspector in Charge Rodney M. Hopkins, U.S. Postal Inspection Service, Detroit Division. “This investigation, and today’s sentence reaffirms the important role the U.S. Postal Inspection Service plays in protecting our American consumers and businesses from fraudulent schemes that utilize the U.S. Mail.”
Talsma is the last of four defendants to be sentenced for their roles in the mail fraud scheme. The other individuals previously sentenced include:
- Lovedeep Singh Dhanoa, age 25, of Portage, Michigan – 15 months’ imprisonment
- Paul Steven Larson, age 32, of Kalamazoo, Michigan – 6 months’ imprisonment
- Gregory Mark Gleesing, age 44, of Portage, Michigan – 3 years’ probation, including 4 months’ home detention.
The offices of the Federal Bureau of Investigation, Kalamazoo, and the United States Postal Inspection Service, Grand Rapids, investigated the case. Assistant U.S. Attorney Ronald M. Stella prosecuted the case. Amazon referred the matter to law enforcement and provided significant support to the investigation.
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Pittsburgh Man Pleads Guilty to Holding Counterfeit Drugs and Possessing Equipment Used to Make Fake SubstancesRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania, pleaded guilty in federal court to charges of holding counterfeit drugs for sale and possession of equipment for manufacturing counterfeit substances, United States Attorney Cindy K. Chung announced today.
Joshua Regatuso, age 26, of the City’s Brighton Heights section, pleaded guilty to two counts before United States District Judge Robert J. Colville.
In connection with the guilty plea, the Court was advised that the investigation, which began in early 2021, revealed that Regatuso used another person to receive binding powder and metal die stamps for use in a pill press. Regatuso appeared to have been using similar items to manufacture counterfeit alprazolam pills using etizolam, a medication not approved by the U.S. Food and Drug Administration (FDA) or the Drug Enforcement Administration (DEA) for medical use in the United States. On May 6, 2021, following the execution of a search warrant, agents seized two pill presses; roughly 250 grams of etizolam powder; counterfeit alprazolam tablets containing etilozam; and two bags of binding powder. A second search warrant yielded several thousand counterfeit alprazolam tablets and a baggie of etizolam powder. The tablets had the same markings as have been used by a company that the FDA has authorized to distribute a 2mg pill containing alprazolam.
“Fake prescription medications present a clear danger to every purchaser,” said U.S Attorney Chung. “We will continue to investigate and prosecute individuals who produce and sell counterfeit pills. Counterfeit pills are not only illegal, but often dangerous and potentially lethal.”
“The fake pills that Regatuso was manufacturing and distributing represent the most important enforcement priority for the DEA,” said Thomas Hodnett, Special Agent in Charge of the
Drug Enforcement Administration’s Philadelphia Field Division. “While a significant quantity of the fake pills that law enforcement seizes are manufactured in other countries, we continue to see locally manufactured fake pills that are produced in clandestine laboratories such as the one operated by Regatuso. The DEA would like to emphasize the only safe medications are ones that come from licensed and accredited medical professionals. The DEA warns that pills purchased outside of a licensed pharmacy are illegal and may contain a potentially lethal dose of illicit fentanyl.”Judge Colville scheduled sentencing for Dec. 8, 2022, at 11 a.m. The law provides for a total sentence of not more than 10 years in prison, a fine of not more than $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.
Pending sentencing, the court continued the defendant on bond.
Assistant United States Attorney Brian W. Castello is prosecuting this case on behalf of the government.
The Drug Enforcement Administration conducted the investigation that led to the prosecution of Joshua Regatuso.
Philadelphia Felon Sentenced to 10 Years in Prison for Counterfeit Pill Operation, Firearms OffensesRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that DeWitt Drayton, 46, of Philadelphia, PA, was sentenced to 10 years in prison, and five years of supervised release by United States Senior District Court Judge Anita B. Brody for manufacturing counterfeit pills using controlled substances, including methamphetamine, and for unlawfully possessing three firearms.
In March 2022, the defendant pleaded guilty to the charges of possession with intent to distribute methamphetamine, and two counts of possession of a firearm by a felon. The defendant was charged with these offenses after federal investigators executed a search warrant at his home and uncovered what can be described only as a drug lab. This included multiple pill press machines and other supplies, which the defendant had been using to manufacture counterfeit prescription painkillers using a variety of narcotics, including fentanyl and the horse tranquilizer Xylazine, as well as methamphetamine-laced ecstasy pills. Investigators recovered thousands of pills, which the defendant had manufactured, and which were destined for sale on the streets of Philadelphia. The discovery of these items was not surprising, as federal authorities had been tracking the defendant’s purchases of pill-making supplies from China and elsewhere.
Agents also executed a search warrant at a property in New Jersey used by the defendant, and between the two properties, they recovered three firearms, two of which had obliterated serial numbers, and all of which the defendant was prohibited from possessing given his criminal history.
“Drug distribution and gun violence are an epidemic in Philadelphia and the federal government is aggressively prosecuting both in order to get dangerous, repeat offenders like this defendant off the streets,” said U.S. Attorney Romero. “DeWitt Drayton was a large-scale drug manufacturer and illegally possessed multiple firearms to protect his business, which are both offenses that put our community and the people who live here at risk. We want to thank our law enforcement partners in this case, the DEA and HSI, for their hard work and dedication.”
“Drayton was responsible for manufacturing and distributing fake opioid pills containing illicit fentanyl and fake stimulant pills containing methamphetamine out of a house in the heart of the Kensington section of Philadelphia,” said Thomas Hodnett, Special Agent in Charge of the Drug Enforcement Administration’s (DEA) Philadelphia Field Division. “The current overdose crisis is largely driven by criminals like Drayton who flooded our streets with fentanyl-laced fake pills. Learn more about the dangers of fake pills through our One Pill Can Kill public awareness campaign, which can be accessed at www.dea.gov/onepill.”
“This sentencing demonstrates how Homeland Security Investigations (HSI) Philadelphia Cyber Crime Investigations Task Force (C2iTF) working hand in hand with partners from the Drug Enforcement Administration, Philadelphia Police Department, Customs and Border Protection and the Pennsylvania State Police actively seeks to hold accountable criminals whose actions harm Americans,” said William S. Walker, Special Agent in Charge for the HSI Philadelphia Field Office. “Methamphetamine and illicit firearms are significant contributors to public safety concerns, and we will continue to dismantle criminal organizations which prey upon our communities.”
The case was investigated by Homeland Security Investigations, the Drug Enforcement Administration, Customs and Border Protection, the Pennsylvania State Police and the Philadelphia Police Department, and is being prosecuted by Assistant United States Attorney Timothy M. Stengel.
Pecos Man Pleads Guilty to Possession of Child PornographyRead the Press Release
ALPINE – Today, Miguel Angel Ortega, 39, of Pecos pleaded guilty to one count of possession of child pornography.
According to court documents, on January 4, 2022, a search warrant was executed on Ortega’s cellular phone. Approximately 54 videos containing child pornography of prepubescent children were located.
A sentencing date has not been set. Ortega faces up to 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Ortega has remained in federal custody since his arrest on January 5, 2022.
U.S. Attorney Ashley C. Hoff of the Western District of Texas and Homeland Security Investigations (HSI) Special Agent in Charge Frank Burrola, El Paso Division, made the announcement.
HSI, the Texas Department of Public Safety and the Pecos Police Department are investigating the case.
Assistant U.S. Attorney Lance Kennedy is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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Orlando Man Pleads Guilty to Producing and Possessing Child Sexual Abuse MaterialRead the Press Release
Orlando, Florida– United States Attorney Roger B. Handberg announces that Thomas Zayas (45, Orlando) has pleaded guilty to enticing a minor child to produce sexually explicit videos and to possessing child sexual abuse material. Zayas faces a minimum mandatory penalty of 15 years, and up to 30 years, in federal prison for production of child sexual abuse material, up to 10 years’ imprisonment for possession of child sexual abuse material. He faces a potential life term of supervised release on all counts. A sentencing date has been set for October 26, 2022.
According to the plea agreement, in approximately July 2022, Zayas, posing as a teenage boy, used a messaging application to contact a 12-year-old child. After the child grew tired of Zayas’s romantic advances, the child stopped communicating with Zayas. Zayas then contacted the child again, this time posing as the sister of the teenage boy. Zayas threatened to physically hurt the child for ending the “relationship” with the fictional brother, and as a result, the child agreed to continue a friendship with the original persona. In order to scare the child and prove that Zayas knew who the child was, where she lived, and where the child went to school, Zayas sent the child a photo of the child’s apartment complex and a yearbook photo of the child from the child’s middle school. Zayas then requested several nude images and videos of the child performing sexual acts, and he instructed the child on what to do in the images and videos. Initially the child refused, afraid that Zayas would post the photos on the internet to harm the child. After promising not to use the images to harm the child, the child eventually sent Zayas sexually explicit videos and photos. The demands from Zayas continued, and when the child did not comply with Zayas’s requests, Zayas became hostile and threatened to expose the child with the nude videos and images the child had previously sent.
The Orange County Sheriff’s Office (OCSO) was made aware of Zayas when a school resource officer was contacted by a parent who had received via text message a collage depicting sexually explicit photos of the child. OSCO investigators were able to trace the aliases to Zayas through phone records, and with the help of the U.S. Department of Veterans Affairs – Office of Inspector General, also discovered evidence of an order for flowers, which Zayas had delivered to the child’s middle school, from his work-issued laptop.
This case was investigated by the Federal Bureau of Investigation, the U.S. Department of Veterans Affairs – Office of Inspector General, and the Orange County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Jennifer M. Harrington.
This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Omaha Man Sentenced for Attempted Sex Trafficking of a MinorRead the Press Release
Acting United States Attorney Steven A. Russell announced that on July 26, 2022, District Court Chief Judge Robert F. Rossiter sentenced Hammaduzzaman Syed, age 34, of Omaha, Nebraska, to 120 months incarceration for attempted sex trafficking of a minor. A jury found Syed guilty on March 22, 2022, following a day and a half jury trial. There is no parole in the federal system. After his release, Syed will serve a 5-year term of supervised release.
In November 2020, a deputy with the Douglas County Sheriff’s Office posted an advertisement on Skip the Games, a website known to be commonly used for prostitution. On November 17, 2020, Syed responded to the phone number on the advertisement by text message and began communicating with an undercover deputy who informed Syed that they were a 15-year-old female. Syed then arranged to meet who he believed to be a 15-year-old female for a half hour of sex for $100. Syed then traveled to the agreed upon location with condoms and the agreed upon $100 as pursuant to their text message conversation.
This case was investigated by the Douglas County Sheriff’s Office as part of the FBI’s Child Enticement and Human Trafficking Task Force and was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
North Carolina Woman Pleads Guilty to Selling Unapproved Covid-19 RemediesRead the Press Release
CONCORD – Diana Daffin, 69, of Charlotte, North Carolina, pleaded guilty in federal court to selling unapproved drugs with the intent to defraud or mislead the FDA, United States Attorney Jane E. Young announced today.
According to court documents and statements made in court, Diana Daffin owned and operated a holistic medicine company called Savvy Holistic Health doing business as Holistic Healthy Pet. In March 2020, the Food and Drug Administration (FDA) learned that Daffin was selling unapproved drugs on her website, with the brand name HAMPL, that Daffin claimed were COVID-19 remedies and treatments. In April and August of 2020, the FDA sent Daffin warning letters explaining that various products she was selling—including the HAMPL COVID-19 drugs—were adulterated, misbranded, and unapproved drugs and that she should take immediate action to correct the violation. Daffin responded by telling the FDA that she removed the products from her website and would stop distributing them.
However, Daffin did not stop selling the products. Instead, she continued to distribute the unapproved COVID-19 drugs and took steps to defraud and mislead the FDA. For example, she continued to sell unapproved HAMPL brand drugs by moving them to a password protected website, telling one customer that this was her “way of evading the FDA.”
In February 2021, Daffin sold an undercover law enforcement officer a HAMPL product that she advertised as a drug that could cure, mitigate, treat, and prevent COVID-19 in humans. In an email leading up to the sale, Daffin told the undercover officer, “This stuff does work for covid, but fda shut it down.” Daffin later sold and shipped the undercover agent the unapproved HAMPL-brand COVID-19 drug and other unapproved drugs.
On March 5, 2021, the undercover agent in New Hampshire received HAMPL drugs sold by Daffin, including the purported COVID-19 remedy. The label stated that it provided “a stronger immunity against CV” and promised “Immunity for Humans.”
Daffin is scheduled to be sentenced on November 2, 2022.
This matter was investigated by the United States Food and Drug Administration-Office of Criminal Investigations, Homeland Security Investigations and the United States Postal Inspection Service. The case is being prosecuted by Assistant U.S. Attorneys Matthew T. Hunter and Georgiana L. MacDonald.
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On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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New Hampshire Man Sentenced for Drug and Firearm OffensesRead the Press Release
BOSTON – A New Hampshire man was sentenced today in federal court in Boston for drug and firearm offenses.
Brandon Ortiz, 25, of Manchester, N.H., was sentenced by U.S. District Court Judge Richard G. Stearns to five years in prison and three years of supervised release. On March 8, 2022, Ortiz pleaded guilty to one count of possession with intent to distribute fentanyl and cocaine and one count of possession of a firearm after being convicted of a misdemeanor crime of domestic violence.
On June 6, 2019, police in the City of Lawrence responded to a 911 call about a motor vehicle incident involving a firearm. During the investigation, officers seized fentanyl, cocaine, a loaded semi-automatic pistol and ammunition from Ortiz. Ortiz is prohibited from possessing a firearm and ammunition due to a prior 2018 domestic violence conviction.
United States Attorney Rachael S. Rollins; James Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; Essex County District Attorney Jonathan W. Blodgett; and Lawrence Police Chief Roy P. Vasque made the announcement. Assistant U.S. Attorney Philip C. Cheng of Rollins’ Organized Crime & Gang Unit is prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
New Bedford Man Pleads Guilty to Fentanyl OffenseRead the Press Release
BOSTON – A New Bedford man pleaded guilty today in federal court in Boston to possessing fentanyl intended for distribution.
Marquise Thompson, 35, pleaded guilty to one count of possession with intent to distribute fentanyl. U.S. District Court Judge Allison D. Burroughs scheduled sentencing for Nov. 2, 2022. Thompson was indicted by a federal grand jury in May 2021 and later charged in a superseding Information on July 25, 2022.
In October 2020, Thompson was arrested prior to his attempt to sell fentanyl. Following his arrest, state and federal authorities recovered more than 20 grams of fentanyl and packaging materials from an apartment that Thompson was using in New Bedford to store narcotics.
The charge of possession with intent to distribute fentanyl provides for a mandatory sentence of up to 20 years in prison, up to a lifetime of supervised release and a fine of up to $1 million. 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; James Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; and New Bedford Police Chief Paul Oliveira made the announcement. Assistant U.S. Attorney Evan Gotlob of Rollins’ Major Crimes Unit is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Murder Mail Leads to Federal Conviction of South Florida Jilted LoverRead the Press Release
Miami, Florida – A 43-year-old Pembroke Pines, Florida man who used the United States postal service to solicit, plan, and pay for the murder of his former girlfriend’s new love interest pled guilty today in federal court to a charge of using the mail to commit murder-for-hire, in violation of 18 U.S.C. §1958.
As part of his guilty plea, Ryan Hadeed admitted that in September 2021, he mailed a letter to the intended hitman requesting murder services: “I need someone eliminated. I've been told you can arrange that. $10,000 All in cash and upfront. Person located in Tampa.” In that letter, and two later ones, Hadeed instructed the intended hitman to signal acceptance of the offer by posting marked sheets of paper on a store-front window, among other things. On November 10, 2021, the intended hitman received a final mailing from Hadeed that included a description and pictures of the man that Hadeed wanted killed, the victim’s home address and likely travel schedule, as well as a deadline for the murder. Also inside the envelope was $10,000 cash. Hadeed left the country on a one-way ticket the same day the hitman received the cash and pictures. During a secondary customs inspection of Hadeed when he returned to the U.S. from his international trip, additional evidence of the crime was uncovered. Law enforcement officers, who had learned of the crime, arrested Hadeed. Federal prosecutors filed a case against him in December 2021.
The intended victim, who remains alive, is romantically involved with Hadeed’s former girlfriend.
Hadeed’s sentencing hearing is scheduled for October 26, at 1:15 p.m. before U.S. District William P. Dimitrouleas. Hadeed faces up to 10 years in federal prison and a $250,000 fine.
Juan Antonio Gonzalez, U.S. Attorney for the Southern District of Florida; Anthony Salisbury, Special Agent in Charge, Homeland Security Investigation (HSI), Miami Field Office; Juan A. Vargas, Acting Inspector in Charge, United States Postal Inspection Service (USPIS), Miami Region; and Troy Walker, Special Agent in Charge, Florida Department of Law Enforcement (FDLE), Miami Region, announced the guilty plea.
HSI Miami, USPIS Miami, and FDLE investigated the case, with assistance from Florida Highway Patrol. Assistant U.S. Attorneys Joseph A. Cooley and Deric Zacca are prosecuting the case.
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-60009.
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Moundsville woman admits to methamphetamine chargeRead the Press Release
WHEELING, WEST VIRGINIA – Loretta Jean Minor, of Moundsville, West Virginia, has admitted to a drug charge, United States Attorney William Ihlenfeld announced.
Minor, 44, pleaded guilty today to one count of “Possession with Intent to Distribute Methamphetamine.” Minor admitted to having methamphetamine in January 2022 in Marshall County.
Minor 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 Clayton J. Reid is prosecuting the case on behalf of the government. The Marshall County Drug Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge James P. Mazzone presided.
Monroe County Man to Serve 30 Years for Sexually Exploiting a MinorRead the Press Release
Oxford, Miss. – An Amory man was sentenced to 30 years in federal prison on Monday for producing and distributing child pornography. United States District Judge Neal B. Biggers sentenced Brett Northington, 60, to 360 months in federal prison for using a minor to produce child sexual abuse material and distribute it on the Internet.
The investigation began when the Department of Homeland Security, in conjunction with international intelligence agencies, received information that Northington was distributing child pornography via an instant messaging application. Further investigation revealed that Northington had used the application to take and send sexually explicit pictures and videos of a child under the age of 12.
Northington had been previously convicted of a sex offense in state court.
In sentencing Northington to 30 years in prison, Judge Biggers noted that he felt the sentence was necessary to protect children in Northington’s own family and children outside of his family from abuse.
“Individuals who sexually abuse children in order to produce and distribute child pornography have no place among civilized people and deserve to be in prison for as long as possible,” stated U.S. Attorney Clay Joyner. “Such evil must never be tolerated and these individuals will be prosecuted to the fullest extent of the law.”
“This defendant’s repeated sexual exploitation of minors is deserving of the 30-year prison sentence to ensure he will not inflict further harm and trauma on other children,” said Special Agent in Charge David Denton of HSI New Orleans. “HSI is appreciative of the collaborative efforts of the Monroe County Sherriff’s office for its work with our special agents on this investigation.”
The Department of Homeland Security and the Monroe County Sheriff’s Office investigated the case.
Assistant U.S. Attorney Parker S. King prosecuted the case.
Michigan man sentenced to more than 12 years for drug and firearms chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Alante Martel Nelson, of Detroit, Michigan, was sentenced today to 151 months of incarceration for drug and firearms charges, United States Attorney William Ihlenfeld announced.
Nelson, 29, pleaded guilty in February 2022 to one count of “Possession with Intent to Distribute Heroin” and one count of “Unlawful Possession of a Firearm.” Nelson admitted to having heroin in August 2020 in Monongalia County. Nelson, a person prohibited from having firearms because of a prior conviction, also admitted to having a .380 caliber semi-automatic pistol.
Assistant U.S. Attorney Christopher L. Bauer prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms & Explosives and the Morgantown Police Department investigated.
Chief U.S. District Judge Thomas S. Kleeh presided.
Mexican Mafia supplier and local gang member guilty of drug and gun chargesRead the Press Release
CORPUS CHRISTI, Texas – A 28-year-old man has pleaded guilty to illegally possessing a firearm as a felon and possession with intent to distribute cocaine, announced U.S. Attorney Jennifer B. Lowery.
On April 22, authorities executed a search warrant at Manuel Moya’s residence, at which time they discovered approximately 11.2 kilograms of cocaine, 1.5 kilograms of meth, three kilograms of marijuana and $120,000. They also found other controlled substances such as psilocybin mushrooms, crack cocaine, synthetic cannabinoid and MDMA. He was the only one present at the location.
Law enforcement also found a Century Arms Inc. pistol, Ruger rifle, two Taurus pistols, three Glock pistols, a JTS Group shotgun, body armor, high-capacity magazines and several rounds of ammunition. Two of the firearms contained chambered rounds. Moya took responsibility of the weapons and ammunition.
In addition, they discovered several ledgers that documented Moya’s controlled substance distribution activities and a notebook with instructions on how to make drugs. Other supplies were found in the search including glassware with residue of controlled substances, bags, equipment for vacuum sealing, weight scales, small sandwich bags, money counters and razor blades.
The investigation revealed Moya was a local gang member and a drug supplier to the Mexican Mafia. He distributed narcotics on both an individual and large-scale basis.
Moya has been previously convicted of possession of a controlled substance, unlawful possession of cocaine and unlawful possession of a firearm by a felon. As such, he is prohibited from possessing firearms or ammunition per federal law.
U.S. District Judge David S. Morales will impose sentencing on Oct. 19. At that time, Moya faces up to life in prison and a possible $10 million maximum fine.
He has been and will remain in custody pending that hearing.
Homeland Security Investigations conducted the investigation with the assistance of the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney J. Parker Gochenour is prosecuting the case.
Man Sentenced to Five Years in Federal Prison for Committing Arson during Civil Unrest in Rockford in 2020Read the Press Release
ROCKFORD — A man has been sentenced to five years in federal prison for setting fire to a store in Rockford during a period of civil unrest in 2020.
SEAN CARDENAS, 22, of Rockford, pleaded guilty earlier this year to an arson charge. Cardenas admitted that on May 30, 2020, he used a hammer to break the glass front doors of Burlington Coat Factory, 6260 E. State St. Wearing a hood and mask to conceal his identity, Cardenas entered the store and used a Molotov cocktail to ignite a fire inside it.
In addition to the prison sentence, U.S. District Judge Iain D. Johnston on Tuesday ordered Cardenas to pay restitution of $965,591.
The sentencing was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Kristen de Tineo, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives. The government was represented by Assistant U.S. Attorney Jessica S Maveus.
Man Sentenced to 37 Months in Prison for Threatening and Pointing a Firearm at a WomanRead the Press Release
A man who pointed a firearm at a woman and threatened to kill her was sentenced Wednesday in federal court, announced U.S. Attorney Clint Johnson.
“William Caudle knowingly possessed a stolen gun, fired it multiple times in a neighborhood, then pointed it at a concerned citizen. Because of his criminal acts, he will spend more than three years in prison,” said U.S. Attorney Clint Johnson. “Federal prosecutors and our partners at the ATF and Tulsa County Sheriff’s Office will not stand by while criminals use guns and violence to intimidate, threaten, or harm those living in Tulsa County.”
U.S. District Judge Claire V. Eagan sentenced William Joseph Caudle, 19, to 37 months in federal prison followed by three years of supervised release. Judge Eagan further referred Caudle to drug treatment and vocational training programs offered by the Federal Bureau of Prisons.
Caudle previously pleaded guilty to assault with a dangerous weapon with intent to do bodily harm in Indian Country and felon in possession of a firearm.
Caudle admitted that he pointed a Glock 17, 9 mm semi-automatic pistol at a woman and stated that he was going to kill the woman and her boyfriend. He further admitted to being a felon in possession of the firearm and 13 rounds of ammunition.
According to court documents, deputies were dispatched to a home just after 10 pm on Jan. 5, 2022, after the caller informed authorities that they heard gunshots.
When officers arrived, they made contact with a woman who reported that she heard four or five gunshots. Afterward, she saw Caudle standing in the street with another person and asked if he heard the gunfire. She explained that he became angry and removed a firearm from his sweatshirt. He then pointed the firearm at the woman, began walking toward her, and stated that he was going to kill her and her boyfriend.
Multiple witnesses heard the initial gunfire and placed Caudle at the scene. One witness heard the victim yell at Caudle and observed him point the firearm at the victim.
Deputies eventually made contact with Caudle, and after a short struggle, took him into custody. Based on witness accounts, deputies searched a near-by Tulsa County home and located the Glock 17. The gun was magazine loaded with 13 rounds of ammunition. Deputies also found two spent cartridge casings in the front yard of the home. An NCIC check revealed the firearm had been stolen earlier that morning.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and Tulsa County Sheriff’s Office conducted the investigation. Assistant U.S. Attorney Thomas E. Buscemi is prosecuting the case.
Man Sentenced to 10+ Years for Attempted Child Sex Trafficking Following StingRead the Press Release
A would-be child sex trafficker was sentenced today to more than 10 years in federal prison, announced U.S. Attorney for the Northern District of Texas Chad E. Meacham.
Gary Jordan, 23, pleaded guilty in March to one count of attempted child sex trafficking. He was sentenced Wednesday to 121 months in federal prison by U.S. District Judge Brantley Starr.
“This defendant trawled social media, prepared to use a combination of flattery and threats to lure teenage girls into commercial sex. Fortunately, the “child” on whom he chose to prey was an undercover agent – but it could have been an actual teen,” said U.S. Attorney Chad Meacham. “Unfortunately, evil lurks on the internet. Parents and guardians, please keep an eye on your children’s social media activity and report any concerns to law enforcement immediately. Child sex trafficking is all too real. We can only prevent it by working together.”
“Child sex trafficking is a despicable crime that has no place in our communities,” said Assistant Special Agent in Charge Jesse Woods, HSI Dallas. “This defendant’s sentence for his criminal intent should serve as reminder that the North Texas Trafficking Task Force will work endlessly to prosecute those seeking to exploit minors for roles in the commercial sex industry.”
According to court documents, on Aug. 3, 2020, Mr. Jordan initiated a social media conversation with an account he believed belonged to a 16-year-old girl. In actuality, the account was run by an undercover Homeland Security Investigations agent.
During their conversations, Mr. Jordan offered to teach the child the commercial sex “game” and claimed she could earn “50k in a week.” He told her he had been involved in the commercial sex business for five years, adding that he charged a $10,000 upfront fee but would waive it for her because “I see yo worth.”
When he learned she was only 16, he offered to help her obtain a fake ID and fly her out to Fort Lauderdale. (He later changed his mind and decided to pick her up in Dallas.)
He instructed the child to send him a sexually explicit photo. When she hesitated, saying she was afraid her guardian would find out, he told her she was “not going back home.”
“Don’t think u going anywhere cause ur not,” he wrote, later stating, “I’m looking for a trap rn [right now].”
He also asked her to send a photo to prove she was not a law enforcement officer.
The child confided in him that intercourse had been painful for her in the past, and he said he would have sex with her himself before selling her body to other men. He promised to take her shopping, saying she would look “sexy” in the clothing he planned to buy her.
Eventually, he sent an uber to an address she provided to transport her to his hotel room in Dallas.
Agents arrested him inside the hotel room around 2 p.m. on Aug. 4, 2020. They forced their way into the room after hearing him attempt to open the window. He was at the foot of the bed, clad only in underpants.
In plea papers, Mr. Jordan admitted that he was aware of the purported child’s status as a juvenile and that he attempted to entice her.
Homeland Security Investigation’s Dallas Field Office conducted the investigation. Assistant U.S. Attorneys Renee Hunter, Rebekah Ricketts (fmr.) and Melanie Smith (fmr.) prosecuted the case.
Los Angeles man sentenced to more than 15 years for role in drug distribution operationRead the Press Release
CLARKSBURG, WEST VIRGINIA – Francisco Chanes, of Los Angeles, California, was sentenced today to 188 months of incarceration for his role in methamphetamine, crack cocaine, fentanyl, and heroin drug distribution operation, United States Attorney William Ihlenfeld announced.
Chanes, age 31, pled guilty to one count of “Conspiracy to Distribute Controlled Substances” and one count of “Unlawful Use of Communication Facility.” Chanes admitted to working with others to distribute methamphetamine, cocaine base, cocaine hydrochloride, and fentanyl from the Spring of 2018 until October 2020.
Assistant U.S. Attorneys Zelda E. Wesley and Sarah E. Wagner prosecuted the case on behalf of the government. The FBI's Northern West Virginia Drug Task Force in partnership with the Mon Metro Drug Task Force, a HIDTA-funded initiative, investigated. The Task Forces have members from the Federal Bureau of Investigation; the Drug Enforcement Administration; the Bureau of Alcohol, Tobacco, Firearms and Explosives; West Virginia State Police; Monongalia County Sheriff's Office; and, the Morgantown, WVU, Granville and Star City Police Departments. The investigation was also assisted by the following law enforcement partners: the Monongalia County Prosecutor’s Office; the FBI in Houston, Texas; the Houston Police Department's Multi Agency Gang Initiative; the United States Postal Inspection Service in Houston; and the FBI and DEA in Los Angeles, California.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Chief U.S. District Judge Thomas S. Kleeh presided.
Related case here: https://www.justice.gov/usao-ndwv/pr/25-people-indicted-drug-trafficking-operation-spanned-several-states
Lexington Man Indicted on 15 Counts for Armed Robbery and Brandishing a Firearm at 7 Columbia Area BusinessesRead the Press Release
COLUMBIA, SOUTH CAROLINA — A federal grand jury in Columbia returned a 15-count indictment against Deveon Antonio Belk, 35, of Lexington, charging felon in possession of a firearm and ammunition, seven counts of Hobbs Act robbery, and seven counts of brandishing a firearm in connection with a crime of violence.
The indictment alleges that between November 9 and November 16, 2020, Belk robbed seven Columbia-area businesses at gunpoint, including Dollar General, Family Dollar, Wendy’s, SKS Mart, and CVS. The indictment alleges that Belk brandished a firearm at each victim business, where he stole money and merchandise. The indictment also charges he was a felon in possession of a firearm and ammunition, and that he possessed a Ruger 9mm pistol and 9mm ammunition in connection with his conduct.
Belk faces a maximum penalty of up to Life in prison. He is currently detained pending his arraignment in federal court in Columbia on August 9, 2022, at 10:00 A.M. before U.S. Magistrate Judge Paige J. Gossett.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The case was investigated by the FBI, Richland County Sheriff’s Department, Lexington County Sheriff’s Office, Columbia Police Department, Irmo Police Department, and South Carolina Law Enforcement Division. Assistant U.S. Attorney Elliott B. Daniels is prosecuting the case.
U.S. Attorney Adair F. Boroughs stated that all charges in the indictment are merely accusations and that defendants are presumed innocent unless and until proven guilty.
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Lewiston Man Sentenced to over 10 Years for Conspiracy to Distribute MethamphetamineRead the Press Release
COEUR D’ALENE – A Lewiston man was sentenced to 121 months in federal prison for possession with intent to distribute methamphetamine.
According to evidence presented in court, and in court documents, Ricky Dale Faulkner, 57, was arrested when task force officers executed a search warrant at his residence and seized over one pound of methamphetamine, cash, and a handgun. Faulkner’s cell phone was also seized and data on the phone showed that Faulkner was distributing methamphetamine to people in the Lewiston, Idaho, and Clarkson, Washington, area.
Senior Ninth Circuit Judge Richard C. Tallman, sitting as a U.S. District Court judge, also ordered Faulkner to serve five years of supervised release following his prison sentence. Faulkner pleaded guilty to the charge on April 8, 2022.
U.S. Attorney Josh Hurwit made the announcement and commended the cooperative effort between the Federal Bureau of Investigation, Bureau of Alcohol, Tobacco, Firearms and Explosives, North Idaho Violent Crime Task Force, Quad Cities Drug Task Force, and the Nez Perce County Prosecutor’s Office.
The Quad Cities Drug Task Force is a multi-jurisdictional group of law enforcement officers working together to target drug trafficking in Lewiston and Moscow, Idaho, and Clarkston and Pullman, Washington. Task force members include the Lewiston Police Department, Clarkston Police Department, Nez Perce County Sheriff’s Office, Moscow Police Department, Latah County Sheriff’s Office, Asotin County Sheriff’s Office, Whitman County Sheriff’s Office, and Washington State Police. The Quad Cities Drug Task Force worked collaboratively with the North Idaho Violent Crime Task Force in this and other cases.
The North Idaho Violent Crime Task Force (NIVCTF) is an FBI led task force with law enforcement officers from Lewiston Police Department, Nez Perce County Sheriff's Office, Grangeville Police Department, Nez Perce Tribe Police Department, and Idaho State Police. The mission of the NIVCTF is to identify and target for prosecution criminal enterprise groups and individuals responsible for crimes of violence and the manufacture and distribution of illegal narcotics.
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Lake Placid, Florida Man Charged for Participating in Business Email Compromise Scheme Spanning Four StatesRead the Press Release
Montgomery, Alabama – A Florida man has been arrested for his role in a business email compromise scheme that impacted at least four businesses in four different states, including Alabama. Timothy Scott Marable, 50, from Lake Placid, Florida, was arrested last week after being indicted by a federal grand jury in Montgomery, Alabama on two counts of wire fraud.
According to the indictment, a business email compromise scheme is a fraud scheme in which participants gain unauthorized access to a business email account through various means, such as hacking the account or obtaining login information through social engineering. Participants then use the compromised email account to send emails to other businesses posing as a legitimate account holder. Oftentimes, the scheme participants attempt to steal money from email recipients by fraudulently representing that the legitimate account holder had changed banking information and instructing the recipient to make future payments to a new bank account. The new bank account frequently belongs to a participant in the business email compromise scheme, who receives payment obtained by fraud and transfers the proceeds to others involved in the scheme.
The indictment alleges that from November 2019, until August 2020, Marable participated in a business email compromise scheme primarily by receiving fraudulent transfers into bank accounts to which he had signature authority. Throughout to course of the scheme, Marable allegedly received into various bank accounts under his control approximately $2,701,746.50. Companies located in Alabama, Idaho, Ohio, and Texas fell victim to this scheme.
An indictment is merely an allegation that a crime has been committed. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
“In 2021, business email compromises were one of the most widely reported cyber security issues according to IC3.gov,” stated FBI Special Agent in Charge Paul Brown from Mobile, Alabama. “Please report any suspicious activity and assist law enforcement in the struggle to ensure cyber security."
The case was unsealed today by the United States District Court for the Middle District of Alabama. A date for Marable’s arraignment will be scheduled in the near future.
This case is being prosecuted by the U.S. Attorney’s Office for the Middle District of Alabama, with assistance from the U.S. Attorney’s Office for the District of Idaho. The case was investigated by the FBI in Alabama and Idaho. Assistant United States Attorney Stephen K. Moulton is prosecuting the case.
KC Medical Spa Owner Pleads Guilty to Illegal TreatmentsRead the Press Release
KANSAS CITY, Mo. – The former owner of a Kansas City, Mo., medical spa pleaded guilty in federal court today to providing illegal treatments to his patients, several of whom suffered adverse effects from the foreign products.
Richard B. Smith III, 46, of Shawnee, Kansas, waived his right to a grand jury and pleaded guilty before U.S. District Judge Howard F. Sachs to a federal information that charges him with one count of receiving misbranded drugs (foreign and unapproved Botox) and delivering them for pay with the intent to defraud or mislead, and one count of receiving adulterated devices (Juvederm Ultra 3) and delivering them for pay with the intent to defraud or mislead.
Smith owned and operated Tap and Blade, located at 7208 Wornall Road, Suite 206, in Kansas City, Mo. Tap and Blade offered medical services, such as injections of prescription drugs, including Botox, and prescription devices to enhance facial features, including Juvederm Ultra 3. Tap and Blade also offered cosmetic services, such as microblading, brow shading, and cool sculpting. Smith was the only employee of Tap and Blade and performed all the procedures offered at the clinic.
The U.S. Food and Drug Administration, Office of Criminal Investigations began investigating Tap and Blade in December 2020 based on information that multiple patients suffered injuries after receiving treatment at Tap and Blade. Agents executed a search warrant at Tap and Blade on April 7, 2021, and found boxes of Juvederm Ultra 3 as well as three syringes filled with Botox.
By pleading guilty today, Smith admitted that he obtained Botox and Juvederm Ultra 3 over the internet and without a prescription from a website in China. Smith purchased the products from Alibaba.com because the foreign products were significantly cheaper, which allowed him to lower his cost compared to his competitors and led him to gain more customers.
Smith admitted he never told his patients he was using foreign prescription drugs and devices that had not been approved by the FDA. Smith estimated he treated approximately 50 to 60 customers. Smith treated at least 10 patients who suffered a bodily injury after being treated with Juvederm Ultra 3.
During the more than three years Tap and Blade operated, from Jan. 1, 2018, to April 30, 2021, there was never a medical doctor associated with the spa, nor was there a doctor overseeing procedures. Smith admitted that he knew his patients should have seen a doctor prior to receiving treatment, and that he told them there was a doctor on staff. Prior to opening Tap and Blade, Smith practiced injections on honeydew fruit, fake heads, and fake skins.
The FDA approval of Botox limits the drug to use under the supervision of a licensed practitioner, thus, it is a prescription drug. Smith admitted that the foreign and unapproved Botox he purchased for use at his spa was misbranded because it did not bear adequate directions for use.
Upon being injected beneath the skin’s surface, Juvederm adds volume and lift to smooth wrinkles and folds. Juvederm products are regulated as devices because, when injected, they are intended to reside under the skin and do not achieve their primary intended purpose through chemical action or metabolization. The FDA’s approval for Juvederm products limits them to use under the supervision of a licensed practitioner, thus, they are prescription devices. Juvederm Ultra 3 is not legal for distribution in the United States because it lacks FDA approval.
Under federal statutes, Smith is subject to a sentence of up to six years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Special Assistant U.S. Attorney Bradley Cooper. It was investigated by the Food and Drug Administration Office of Criminal Investigation.
KC Man Sentenced for Illegal FirearmRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Mo., man was sentenced in federal court today for illegally possessing a firearm.
Jovell L. Swopes, 44, was sentenced by U.S. District Judge Roseann Ketchmark to eight years in federal prison without parole. The court ordered this sentence to be served consecutively to a sentence of two years in federal prison for violating the terms of his federal supervised release, for a total term of 10 years in federal prison without parole.
On Dec. 15, 2021, Swopes was convicted at trial of one count of being a felon in possession of a firearm.
Swopes sold 2.7 grams of marijuana to an undercover Kansas City, Mo., police officer on July 31, 2019. He was pulled over afterward and placed under arrest. Officers searched the vehicle Swopes was driving and found a loaded Glock .40-caliber semi-automatic pistol on the floor underneath the front passenger seat. Officers found a Glock magazine that contained 21 .40-caliber rounds inside a fanny pack on the floor of the backseat.
At the time of his arrest, Swopes was on supervised release after serving almost four years in federal prison for a conviction of being a felon in possession of a firearm. According to court documents, Swopes has a violent criminal history, including a long history of arrests related to assaults and domestic violence. For example, Swopes drove up to a residence on June 10, 2018, got out of his vehicle, and began to fire several shots from a firearm at another man. The victim attempted to run away from Swopes, who continued firing, shooting the victim multiple times in the legs. Swopes then got into his minivan and drove away.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. In addition to his prior federal conviction for being a felon in possession of a firearm, Swopes has prior state felony convictions for assault, armed criminal action, sale of a controlled substance, and possession of a controlled substance.
This case was prosecuted by Assistant U.S. Attorneys Kenneth W. Borgnino and David A. Barnes. It was investigated by the Kansas City, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Project Safe Neighborhoods
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
KC Man Sentenced for Illegal FirearmRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Mo., man who was among five motorists speeding through midtown has been sentenced in federal court for illegally possessing a firearm after fleeing from police officers in a high-speed chase.
George L. Gordon, 42, was sentenced by U.S. District Judge Howard F. Sachs on Tuesday, July 26, to eight years in federal prison without parole.
On March 11, 2022, Gordon pleaded guilty to being a felon in possession of a firearm.
A Kansas City Police Department helicopter spotted five vehicles driving erratically at high speed in the area of Main Street and 39th Street at about 3:30 a.m. on July 4, 2020. The vehicles were driving into oncoming lanes of traffic. When the vehicles entered U.S. Highway 71 traveling north, officers attempted to conduct a traffic stop, but all five vehicles fled in different directions. The helicopter continued tracking Gordon, who was driving the lead vehicle.
Gordon pulled into an empty lot in the 2600 block of Euclid Avenue, got out of his car, and jumped over a fence. When police officers arrived, Gordon jumped back over the fence, causing the Glock .22-caliber pistol in his hand to accidentally discharge. Gordon was arrested after a foot chase, and officers used a police service dog to find the pistol Gordon dropped during the pursuit.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Gordon has two prior federal convictions for being a felon in possession of a firearm and was on federal supervised release at the time of this offense. Gordon also has prior felony convictions for robbery, armed criminal action, endangering the welfare of a child, domestic assault, attempted forgery, and possession of a controlled substance.
This case was prosecuted by Assistant U.S. Attorney Sean T. Foley. It was investigated by the Kansas City, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Project Safe Neighborhoods
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Justice Department, Consumer Financial Protection Bureau, and Three State Attorneys General Reach Settlements with Trident Mortgage Company to Resolve Lending Discrimination ClaimsRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that the Department of Justice, the Consumer Financial Protection Bureau (CFPB), and the Attorneys General of Pennsylvania, New Jersey, and Delaware announced today agreements to resolve allegations that Trident Mortgage Company (Trident), which is owned by Berkshire Hathaway, Inc., engaged in a pattern or practice of lending discrimination by “redlining” in the Philadelphia metropolitan area, including neighborhoods in Philadelphia, Camden, and Wilmington. This resolution represents the Justice Department’s first redlining settlement against a mortgage company and is the second-largest redlining settlement in Justice Department history.
“Redlining” is an illegal practice in which lenders avoid providing credit services to individuals living in certain communities or postal zip codes because of the race, color, or national origin of persons residing there. Under a proposed federal consent order, which is subject to court approval and was filed in conjunction with a complaint today in the U.S. District Court for the Eastern District of Pennsylvania, Trident has agreed to invest over $20 million to increase credit opportunities in neighborhoods of color in the Philadelphia metropolitan area. Trident will also pay a civil money penalty of $4 million.
The complaint filed in federal court alleges that: (1) Trident violated the Fair Housing Act and the Equal Credit Opportunity Act, which prohibit financial institutions from discriminating on the basis of race, color, or national origin in their mortgage lending services; (2) Trident further violated the Consumer Financial Protection Act, which prohibits offering or providing to a consumer any financial product or service not in conformity with federal consumer financial law; (3) from at least 2015 to 2019, Trident failed to provide mortgage lending services to neighborhoods of color in the Philadelphia metropolitan area; (4) Trident concentrated its offices in majority-white neighborhoods; (5) Trident failed to direct its loan officers to serve—and its loan officers did not serve—the credit needs of neighborhoods of color; (6) Trident’s outreach and marketing avoided those neighborhoods; and (7) Trident’s loan officers and other employees sent and received work e-mails containing racial slurs and messages referring to communities of color as “ghetto.”
The $20 million that Trident agrees, under the proposed consent order, to invest to increase credit opportunities for residents of neighborhoods of color in the Philadelphia metropolitan area includes at least: $18.4 million in a loan subsidy fund; $750,000 for development of community partnerships to provide services that increase access to residential mortgage credit; $875,000 for advertising and outreach; and $375,000 for consumer financial education.
Because Trident is no longer lending, it will contract with another lender to provide loan subsidies and services to the “redlined” communities and will ensure that the lender: maintains at least four mortgage loan officers dedicated to serving neighborhoods of color in and around Philadelphia, Camden, and Wilmington; maintains at least four office locations in those neighborhoods; and employs a full-time manager of community lending who will oversee the continued development of lending in neighborhoods of color in the Philadelphia metropolitan area.
Separately, Trident has also entered into agreements with the Commonwealth of Pennsylvania and the States of New Jersey and Delaware. Under those agreements, which resolve allegations against both Trident and Fox & Roach LP (a real estate affiliate of Trident): Trident will reimburse Pennsylvania and New Jersey for costs that they incurred in conducting their investigations; and Fox & Roach will invest $150,000 in marketing to communities of color in the Philadelphia metropolitan area.
“For far too many years, Philadelphia’s Black, Latino, and other communities of color have lacked equal access to lending and legal deed ownership. These historically redlined areas of Philadelphia continue to experience disproportionate amounts of poverty, poor health outcomes, limited educational attainment, unemployment, and violent crime,” U.S. Attorney Jacqueline Romero said. “I am pleased that my office could support the Attorney General’s Combatting Redlining Initiative through this resolution, and I look forward to our continued partnership with the Civil Rights Division.”
“Last fall, I announced the Department’s Combatting Redlining Initiative and promised that we would mobilize resources to make fair access to credit a reality in underserved neighborhoods across our country,” said Attorney General Merrick B. Garland. “As demonstrated by today’s historic announcement, we are increasing our coordination with federal financial regulatory agencies and state Attorneys General to combat the modern-day redlining that has unlawfully plagued communities of color.”
“This settlement is a stark reminder that redlining is not a problem from a bygone era. Trident’s unlawful redlining activity denied communities of color equal access to residential mortgages, stripped them of the opportunity to build wealth and devalued properties in their neighborhoods,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This settlement ensures that significant lending resources will be infused into neighborhoods of color in and around Philadelphia that have historically experienced racial discrimination. Along with our federal and state law enforcement partners, we are sending a powerful message to lenders that they will be held accountable when they run afoul of our fair lending laws.”
“Trident illegally redlined neighborhoods in the Philadelphia area, excluding qualified families seeking to own a home,” said CFPB Director Rohit Chopra. “With housing costs so high, it is critical that illegal discrimination does not put homeownership even further out of reach.”
This settlement is part of the U.S. Attorney General’s Combatting Redlining Initiative, announced in October 2021 and aimed at coordinating agencies’ enforcement efforts to address this persistent form of discrimination against communities of color. The Initiative is expanding the Justice Department’s reach by strengthening partnerships with U.S. Attorney’s Offices around the country, with regulatory partners like CFPB, and with partners in States’ attorney general offices.
The U.S. Department of Justice Civil Rights Division and the CFPB jointly investigated the matter, with support from the U.S. Attorney’s Office. The investigation was coordinated closely with the attorneys general of the Commonwealth of Pennsylvania and the States of New Jersey and Delaware.
A copy of the complaint, as well as additional information about the Justice Department’s fair lending enforcement, can be found at www.justice.gov/fairhousing. Individuals may report lending discrimination by calling the Justice Department’s Housing Discrimination Tip Line at 1-833-591-0291, or submitting a report online.
Citizens in the Eastern District of Pennsylvania who believe that they may have been victims of lending discrimination may also contact the U.S. Attorney’s Office for the Eastern District of Pennsylvania at 215-861-8200 or 615 Chestnut Street, Suite 1250, Philadelphia, PA 19106, ATTN: Civil Division Chief Gregory David.
Justice Department and Consumer Financial Protection Bureau Secure Agreement with Trident Mortgage Company to Resolve Lending Discrimination ClaimsRead the Press Release
Settlement Provides Over $20 Million to Increase Credit Opportunities in Neighborhoods of Color
First Redlining Settlement Against Mortgage Company; Second Largest Redlining Settlement in Justice Department History
The Department of Justice, the Consumer Financial Protection Bureau (CFPB), and the Attorneys General of Pennsylvania, New Jersey, and Delaware announced today agreements to resolve allegations that Trident Mortgage Company (Trident), which is owned by Berkshire Hathaway Inc., engaged in a pattern or practice of lending discrimination by “redlining” in the Philadelphia metropolitan area, including neighborhoods in Philadelphia, Camden, and Wilmington. This resolution is the first redlining settlement that the Justice Department has reached with a non-bank lender and the second largest redlining settlement in the department’s history.
“Last fall, I announced the Department’s Combatting Redlining Initiative and promised that we would mobilize resources to make fair access to credit a reality in underserved neighborhoods across our country,” said Attorney General Merrick B. Garland. “As demonstrated by today’s historic announcement, we are increasing our coordination with federal financial regulatory agencies and state Attorneys General to combat the modern-day redlining that has unlawfully plagued communities of color.”
“This settlement is a stark reminder that redlining is not a problem from a bygone era. Trident’s unlawful redlining activity denied communities of color equal access to residential mortgages, stripped them of the opportunity to build wealth, and devalued properties in their neighborhoods,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This settlement ensures that significant lending resources will be infused into neighborhoods of color in and around Philadelphia that have historically experienced racial discrimination. Along with our federal and state law enforcement partners, we are sending a powerful message to lenders that they will be held accountable when they run afoul of our fair lending laws.”
“Trident illegally redlined neighborhoods in the Philadelphia area, excluding qualified families seeking to own a home,” said CFPB Director Rohit Chopra. “With housing costs so high, it is critical that illegal discrimination does not put homeownership even further out of reach.”
“For far too many years Philadelphia’s Black, Latino, and other communities of color have lacked equal access to lending and legal deed ownership,” said U.S. Attorney Jacqueline Romero for the Eastern District of Pennsylvania. “These historically redlined areas of Philadelphia continue to experience disproportionate amounts of poverty, poor health outcomes, limited educational attainment, unemployment, and violent crime. I am pleased that my office could support the Attorney General’s Combatting Redlining Initiative through this resolution, and I look forward to our continued partnership with the Civil Rights Division.”
“Redlining” is an illegal practice in which lenders avoid providing credit services to individuals living in communities of color because of the race, color, or national origin of residents of those communities. The complaint filed in federal court today alleges that from at least 2015 to 2019, Trident failed to provide mortgage lending services to neighborhoods of color in the Philadelphia metropolitan area, that its offices were concentrated in majority-white neighborhoods, and that its loan officers did not serve the credit needs of neighborhoods of color. The complaint also alleges that loan officers and other employees sent and received work e-mails containing racial slurs and referring to communities of color as “ghetto.”
Under the proposed consent order, which is subject to court approval and was filed in conjunction with a complaint today in the U.S. District Court for the Eastern District of Pennsylvania, Trident has agreed to invest over $20 million to increase credit opportunities in neighborhoods of color in the Philadelphia metropolitan area. Trident will invest at least: $18.4 million in a loan subsidy fund for residents of neighborhoods of color in the Philadelphia metropolitan area; $750,000 for development of community partnerships to provide services that increase access to residential mortgage credit; $875,000 for advertising and outreach; and $375,000 for consumer financial education. Because Trident no longer operates a lending business, it will contract with another lender to provide loan subsidies and services to the “redlined” communities. Trident will ensure that the lender employs at least four mortgage loan officers dedicated to serving neighborhoods of color in and around Philadelphia, Camden, and Wilmington; maintains at least four office locations in those neighborhoods; and employs a full-time manager of community lending who will oversee the continued development of lending in neighborhoods of color in the Philadelphia metropolitan area. Trident will also pay a civil money penalty of $4 million.
Trident has also entered into agreements with Pennsylvania, New Jersey, and Delaware. Those agreements resolve allegations against both Trident and Fox & Roach LP, a real estate affiliate of Trident. In addition to the settlement terms included in the federal consent order, under the agreements with Pennsylvania and New Jersey, Trident will reimburse the states for costs incurred in conducting the investigations. Fox & Roach will also invest $150,000 in marketing to communities of color in the Philadelphia metropolitan area.
The Justice Department and the CFPB jointly investigated the matter, with support from the United States Attorney’s Office in the Eastern District of Pennsylvania. The investigation was coordinated closely with the attorneys general of the Commonwealth of Pennsylvania and the states of New Jersey and Delaware.
This settlement is part of the Justice Department’s Combatting Redlining Initiative, a coordinated enforcement effort to address this persistent form of discrimination against communities of color. The initiative is expanding the department’s reach by strengthening partnerships with U.S. Attorneys’ Offices around the country, regulatory partners and our partners in state attorney general offices. Additional information about the section’s fair lending enforcement can be found at www.justice.gov/fairhousing. Individuals may report lending discrimination by calling the Justice Department’s housing discrimination tip line at 1-833-591-0291, or submitting a report online. View the Spanish translation of this press release here.
Justice Department Secures $293,000 Jury Award Against City of Springfield, Illinois, for Discriminating Against People with DisabilitiesRead the Press Release
On July 26, following a two-day trial, a federal jury awarded $293,000 in damages against the City of Springfield, Illinois, for attempting to close a group home for people with developmental disabilities in 2016.
In 2014, three residents with intellectual and physical disabilities moved into a single- family home on Noble Avenue in Springfield, Illinois, where they received community residential services from a state-licensed provider, Individual Advocacy Group (IAG). Such arrangements, known as Community Integrated Living Arrangements (CILAs), permit residents with disabilities to live in an integrated community setting rather than an institution. Even though the home was operating in compliance with state requirements, the City attempted to shut it down in 2016. The City relied on a local spacing ordinance that prohibited two homes for individuals with disabilities from operating within 600 feet of one another.
The United States filed suit against the City of Springfield in 2017. In 2020, the Court ruled that the City had violated the Fair Housing Act by enforcing the spacing ordinance against the home, granting the United States’ and IAG’s motions for summary judgment on liability. This week’s jury trial was to determine what damages should be awarded for any harm caused by the City’s conduct. The jury determined that the City should pay a total of $293,000: $162,000 in compensatory damages to the residents of the home and their guardians and $131,000 in compensatory damages to IAG.
“The Fair Housing Act prevents cities from maintaining discriminatory zoning laws and enforcing them against their citizens,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This verdict recognizes the significant pain and real harm that results when officials undertake discriminatory action to block group homes. We will continue to vigorously enforce the FHA to ensure that people with disabilities can live in the communities and housing of their choice, free from discrimination.”
“Persons with disabilities should have the same housing choices as all members of our community,” said Assistant U.S. Attorney Joshua I. Grant for the Central District of Illinois. “The jury’s verdict shows how persons with disabilities can often face barriers that make their lives more difficult and erode their dignity. The U.S. Attorney’s Office will continue to work with the Department of Justice to ensure equal access to housing and justice for the citizens of the Central District of Illinois.”
The United States is also seeking a civil penalty and an injunction requiring the City to take certain corrective and preventive actions. The United States’ request for such relief is pending with the Court.
Individual Advocacy Group and Mary B. Valencia, sister and guardian of one of the residents, are represented by Kennedy Hunt P.C., a law firm in St. Louis, Missouri.
The federal Fair Housing Act prohibits discrimination in housing because of disability, race, color, religion, national origin, sex and familial status. More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt. Individuals who believe they have been victims of housing discrimination may submit a report online at www.civilrights.justice.gov, or may contact the Department of Housing and Urban Development at 1-800-669-9777 or through its website at www.hud.gov.
Justice Department Secures $293,000 Jury Award Against City of Springfield, Illinois, for Discriminating Against People with DisabilitiesRead the Press Release
WASHINGTON – On July 26, 2022, following a two-day trial, a federal jury awarded $293,000 in damages against the City of Springfield, Illinois, for attempting to close a group home for people with developmental disabilities in 2016.
In 2014, three residents with intellectual and physical disabilities moved into a single- family home on Noble Avenue in Springfield, Illinois, where they received community residential services from a state-licensed provider, Individual Advocacy Group (IAG). Such arrangements, known as Community Integrated Living Arrangements (CILAs), permit residents with disabilities to live in an integrated community setting rather than an institution. Even though the home was operating in compliance with state requirements, the City attempted to shut it down in 2016. The City relied on a local spacing ordinance that prohibited two homes for individuals with disabilities from operating within 600 feet of one another.
The United States filed suit against the City of Springfield in 2017. In 2020, the Court ruled that the City had violated the Fair Housing Act by enforcing the spacing ordinance against the home, granting the United States’ and IAG’s motions for summary judgment on liability. This week’s jury trial was to determine what damages should be awarded for any harm caused by the City’s conduct. The jury determined that the City should pay a total of $293,000: $162,000 in compensatory damages to the residents of the home and their guardians; and $131,000 in compensatory damages to IAG.
“The Fair Housing Act prevents cities from maintaining discriminatory zoning laws and enforcing them against their citizens,” said Assistant Attorney General Kristen Clarke of the Civil Rights Division. “This verdict recognizes the significant pain and real harm that results when officials undertake discriminatory action to block group homes. We will continue to vigorously enforce the FHA to ensure that people with disabilities can live in the communities and housing of their choice, free from discrimination.”
“Persons with disabilities should have the same housing choices as all members of our community,” said Assistant U.S. Attorney Joshua I. Grant for the Central District of Illinois. “The jury’s verdict shows how persons with disabilities can often face barriers that make their lives more difficult and erode their dignity. The U.S. Attorney’s Office will continue to work with the Department of Justice to ensure equal access to housing and justice for the citizens of the Central District of Illinois.”
The United States is also seeking a civil penalty and an injunction requiring the City to take certain corrective and preventive actions. The United States’ request for such relief is pending with the Court.
Individual Advocacy Group and Mary B. Valencia, sister and guardian of one of the residents, are represented by Kennedy Hunt, P.C., a law firm in St. Louis, MO.
The federal Fair Housing Act prohibits discrimination in housing because of disability, race, color, religion, national origin, sex and familial status. More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt. Individuals who believe they have been victims of housing discrimination may submit a report online at www.civilrights.justice.gov, or may contact the Department of Housing and Urban Development at 1-800-669-9777 or through its website at www.hud.gov.
Jury convicts San Ygnacio man for brandishing AR-15Read the Press Release
LAREDO, Texas – A federal jury in Laredo has convicted a 45-year-old man of being a felon in possession of a firearm, announced U.S. Attorney Jennifer B. Lowery.
The jury deliberated for 45 minutes before convicting Daniel Arturo Lozano following a one-day trial.
At trial, the jury heard that on June 21, 2021, law enforcement responded to reports describing Lozano’s angry and disorderly behavior at Lozano’s Country Store located in San Ygnacio.
Upon their arrival, Lozano fled the scene and began a vehicle chase before returning to the store. At that time, he exited his vehicle and brandished an AR-style rifle. Lozano left the rifle at the store, returned to his truck and departed. Law enforcement took Lozano into custody later that night.
The defense attempted to convince the jury that the weapon Lozano displayed was actually a realistic-looking pellet gun that law enforcement found when they arrested him. However, the jury saw both the pellet gun and AR-style rifle compared side by side and the rifle was identified as the weapon Lozano had showed at the scene.
The jury did not believe defense claims and found Lozano guilty as charged.
He had been previously convicted of possession of cocaine. As such, he is prohibited per federal law of possession of firearms or ammunition.
U.S. District Judge Marina Garcia Marmolejo presided over trial and set sentencing for Oct. 27. At that time, Lozano faces up to 10 years in federal prison and a possible $250,000 maximum fine.
He has been and will remain in custody pending sentencing.
The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation with the assistance of the Zapata County Sheriff’s Office. Assistant U.S. Attorneys Brian Bajew and David Fawcett are prosecuting the case.
Indianapolis Man on Parole was Sentenced to 5 Years in Federal Prison for Gun Crimes After Leading Police on Two High-Speed ChasesRead the Press Release
INDIANAPOLIS – Tragejo Harris, 28, of Indianapolis, was sentenced to five years in federal prison after pleading guilty to being a felon in possession of a firearm.
According to court documents, on April 29, 2021, officers responded to reports of a person firing multiple gunshots from a moving car in the vicinity of the Martindale-Brightwood neighborhood of Indianapolis. Police found a vehicle parked on the street that appeared to have been struck by multiple bullets. Harris’ girlfriend stated that she and her child were inside her home when Harris fired multiple shots at her parked car after an argument.
The next day, officers found Harris’s car at a gas station. When officers attempted to approach Harris, he fled and led police on a high-speed chase on the streets of Indianapolis exceeding speeds of 97 miles per hour. Officers lost sight of the vehicle after three miles.
On May 4, 2021, an undercover detective exchanged messages with Harris, who indicated that he planned to flee to Illinois. The detective, in an undercover capacity, arranged to meet Harris in person before he left town. On May 6, 2021, Harris arrived at the pre-arranged meeting location. Harris recognized police and fled by car again. Harris drove across a field, through a ditch, and onto Binford Boulevard at speeds of up to 100 miles per hour. Harris abandoned the vehicle and fled on foot. Officers found Harris hiding in a nearby building and arrested him. During an interview with police, Harris admitted to shooting his girlfriend’s car and fleeing from police. Harris also told police he had his four-year-old daughter in the car during the first police chase on April 30, 2021.
Harris lied to the police and claimed he sold the firearm used in the shooting. Police later located Harris’s gun under a potted plant near where Harris abandoned the vehicle after the second chase. That firearm matched the shell casings retrieved from the April 29th shooting at the car. Harris is a convicted felon who is legally prohibited from possessing a firearm. Harris was also on parole for armed robbery at the time of this offense.
Zachary A. Myers, U.S. Attorney for the Southern District of Indiana; Daryl S. McCormick, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Columbus Field Division; and Indianapolis Metropolitan Police Department (IMPD) Chief Randal Taylor made the announcement.
ATF and IMPD investigated the case. The sentence was imposed by U.S. District Judge Jane Magnus-Stinson. As part of the sentence, Judge Magnus-Stinson ordered that Harris be supervised by the U.S. Probation Office for three years following his release from federal prison.
U.S. Attorney Myers thanked Assistant U.S. Attorney Kelsey Massa who prosecuted this case.
This case was brought as part of the LEATH Initiative (Law Enforcement Action to Halt Domestic Violence), named in honor of Indianapolis Metropolitan Police Department (IMPD) Officer Breann Leath, who was killed in the line of duty while responding to a domestic disturbance call. A partnership among the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the IMPD, and the U.S. Attorney’s Office for the Southern District of Indiana, the LEATH Initiative focuses federal, state, and local law enforcement resources on domestic violence offenders who illegally possess firearms.
Additionally, this case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement, and the local community to develop effective, locally based strategies to reduce violent crime.
Hartford Man Sentenced to 55 Months for Gun and Drug OffensesRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that FRANCISCO FRANCESCHINI, 29, of Hartford, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 55 months of imprisonment, followed by three years of supervised release, for firearm possession and drug distribution offenses.
According to court documents and statements made in court, on April 8, 2021, a court-authorized search of Franceschini’s residence revealed a loaded 9mm handgun, a loaded .380 caliber handgun, and approximately 44 grams of crack cocaine.
Franceschini’s criminal history includes multiple state convictions for firearm and narcotics 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.
Franceschini has been detained in federal custody since September 23, 2021. On March 18, 2022, he pleaded guilty to one count of possession of a firearm by a felon, and one count of possession with intent to distribute cocaine base (“crack”).
This investigation was conducted by the FBI’s Connecticut Violent Crime Task Force, the Hartford Police Department and the Connecticut State Police. The case was prosecuted by Assistant U.S. Attorney David T. Huang.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Gulfport Man Found Guilty of Being an Unlawful User of a Controlled Substance in Possession of a FirearmRead the Press Release
Gulfport, Miss. – A federal jury convicted a Gulfport man yesterday for being an unlawful user of a controlled substance in possession of a firearm, announced U.S. Attorney Darren LaMarca and Special Agent in Charge Brad L. Byerley of the Drug Enforcement Administration.
According to court documents and evidence presented at trial, Patrick Darnell Daniels, Jr., 26, was in possession of a handgun and an assault rifle at a traffic stop in Hancock County, Mississippi, on April 25, 2022. At the time of the possession, Daniels admitted to being an unlawful user of marijuana. Additional evidence supported his admission, and such evidence was presented to the jury, who deliberated for under an hour before finding him guilty of the one count indictment.
Daniels will be sentenced on October 18, 2022, in Gulfport. He faces a maximum penalty of 10 years in prison and a $250,000 fine.
The Drug Enforcement Administration investigated the case.
Assistant U.S. Attorneys Erica Rose and Jonathan Buckner prosecuted the case.
Georgia Man Sentenced to 130 Months in Prison for his Role in Oxycodone Prescription SchemeRead the Press Release
Montgomery, Alabama – On Tuesday, July 26, 2022, Maurice Daughtry, 38, of Marietta, Georgia, was sentenced to 130 months in prison for his role as one of the organizers of a conspiracy to illegally distribute oxycodone, announced United States Attorney Sandra J. Stewart.
According to Daughtry's plea agreement and other court records, Daughtry entered into an agreement with co-conspirator, D’Livro Lemat Beauchamp, to obtain illegitimate prescriptions for oxycodone, a Schedule II controlled substance. At the time the conspiracy began, Beauchamp was a physician operating a medical practice in Montogmery, Alabama. Per their agreement, Dr. Beauchamp would sign oxycodone prescriptions made out to either Daughtry or one of his other co-conspirators. The co-conspirators would pay Dr. Beauchamp $350 per prescription.
Once Dr. Beauchamp signed the prescriptions, the individuals named on the prescriptions—including Daughtry—would have them filled at local pharmacies. Daughtry would then collect pills from the co-conspirators, paying each one between $100 and $250 per prescription. Daughtry would then illegally distribute the oxycodone pills he obtained.
Daughtry’s plea agreement indicates that he first received a prescription from Beauchamp as part of the scheme in August of 2012. Thereafter, Daughtry received prescriptions for 90 30-milligram oxycodone tablets approximately once a month. Daughtry specifically admitted during his plea hearing to receiving and filling 54 prescriptions representing a total of 145,800 milligrams of the drug. Documents indicate that the conspiracy continued until April of 2020 and involved numerous co-conspirators, some of whom were operating at Daughtry’s direction.
Daughtry’s prison sentence will be followed by three years of supervised release. There is no parole in the federal system.
The Drug Enforcement Administration’s Tactical Diversion Squad investigated this case, with assistance from the United States Department of Health and Human Services – Office of Inspector General, the Shelby County Sheriff’s Office, the Montgomery Police Department, and the Alabama Board of Medical Examiners. Assistant United States Attorneys Stephen K. Moulton, Jonathan S. Ross, Alice S. LaCour, and B. Chelsea Phillips prosecuted the case.
Georgia Man Is Sentenced to Prison for Defrauding Medicaid Programs in Three StatesRead the Press Release
CHARLOTTE, N.C. – A Georgia man was sentenced to prison for participating in a scheme that defrauded the Medicaid programs in North Carolina, South Carolina and Georgia of more than $5 million, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. U.S. District Judge Kenneth D. Bell sentenced Glenn Pair, 36, of Stonecrest, Georgia to 70 months in prison and two years of supervised release and ordered the defendant to pay a total of $5,078,444 as restitution.
U.S. Attorney King is joined in making today’s announcement by Adair Ford Boroughs, U.S. Attorney for the District of South Carolina, Ryan K. Buchanan, U.S. Attorney for the Northern District of Georgia, North Carolina Attorney General Josh Stein, Robert R. Wells, Special Agent in Charge of the FBI in North Carolina, and Donald “Trey” Eakins, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division, Charlotte Field Office (IRS-CI).
The criminal charges filed against Pair in federal court in the Northern District of Georgia and South Carolina were transferred to the U.S. District Court for the Western District of North Carolina in September and October 2021, respectively. In October 2021, Pair pleaded guilty to conspiracy to commit Medicaid fraud in connection with the three federal prosecutions. Pair also pleaded guilty to a money laundering conspiracy offense in the Western District of North Carolina. Today’s sentence resolves all three federal criminal actions against the defendant.
According to filed court documents and today’s sentencing hearing, Pair and his co-conspirator, Markuetric Stringfellow, owned and operated an after-school and youth mentoring program known as Do-It-4-The Hood Corporation (D4H). From January 2016 through November 2018, Pair and Stringfellow paid individuals to recruit at-risk youths, in particular children who were Medicaid eligible in North Carolina, for their D4H program. Once enrolled, children were required to submit urine specimens for drug testing. Pair and Stringfellow conspired with certain laboratories to perform the drug testing of the enrolled children’s urine specimens and received kickbacks once the laboratories were reimbursed by the North Carolina Medicaid. In 2017, Pair moved to Georgia, and he and Stringfellow expanded the fraudulent scheme to defraud the state’s Medicaid program.
The South Carolina scheme involved Wrights Care Services LLC (Wrights Care), a qualified provider of Medicaid rehabilitative behavioral health services in South Carolina. Pair and Stringfellow became owners of a Wrights Care franchise in Columbia, South Carolina. Starting in or around 2014, Pair and Stringfellow defrauded the South Carolina Medicaid program by filing fraudulent claims for mental health counseling or other services that were either not provided, partially provided, or did not qualify for Medicaid reimbursement. Pair and Stringfellow submitted falsified patient billing records and fake medical notes to support the fraudulent reimbursement claims filed. After learning there was a Medicaid audit for Wrights Care, Stringfellow attempted to deceive South Carolina Medicaid auditors. In or about March 2015, Stringfellow met other associates of Wrights Care in Columbia for a “note party.” During this gathering and in Pair’s presence, the co-conspirators created false and fraudulent billing records to substantiate previously-submitted fraudulent Medicaid claims, forged signatures, and falsified records subject to the audit, which they then submitted to South Carolina Medicaid auditors in response to the audit.
Over the course of the scheme, Pair, Stringfellow and their co-conspirators submitted thousands of fraudulent claims to Medicaid of the three states totaling over $17 million and received over $5 million in fraudulent reimbursements. In addition, they received $1.8 million in kickbacks from the laboratories that participated in the conspiracy.
Pair is currently released on bond. He will be ordered to report to the federal Bureau of Prisons upon designation of a federal facility. Stringfellow was sentenced in February 2021 to 78 months in prison and was ordered pay $5,278,550 in restitution for his role in the scheme.
In making today’s announcement U.S. Attorney King thanked the U.S. Attorneys’ Offices in South Carolina and the Northern District of Georgia, the FBI in North Carolina, South Carolina and Georgia, and the Medicaid Investigations Division in the three states for their investigative efforts and coordination throughout case.
Assistant U.S. Attorneys Michael E. Savage and Graham Billings of the U.S. Attorney’s Office in Charlotte, prosecuted the case, assisted by Special Assistant U.S. Attorney Jermaine Sellers with the Medicaid Fraud Investigation Division of the N.C. Attorney General’s Office.
Former Minneapolis Police Officers Tou Thao and J. Alexander Kueng Sentenced to Prison for Depriving George Floyd of His Constitutional RightsRead the Press Release
The Justice Department announced today that former Minneapolis Police Officer Tou Thao, 36, was sentenced to serve 42 months in prison, and former Minneapolis Police Officer J. Alexander Kueng, 28, was sentenced to serve 36 months in prison, for depriving George Floyd Jr. of his constitutional rights.
On Feb. 24, 2022, following a trial that lasted nearly five weeks, a federal jury in St. Paul, Minnesota, found Thao and Kueng guilty of depriving Floyd of his constitutional right to be free from an officer’s unreasonable force when each willfully failed to intervene to stop former Minneapolis Police Department (MPD) Officer Derek Chauvin’s use of unreasonable force. The jury also found that Thao and Kueng deprived Floyd of his constitutional right to be free from a police officer’s deliberate indifference to serious medical needs when they saw Floyd restrained in police custody in clear need of medical care and willfully failed to aid him. The jury further found that both of these offenses resulted in Floyd’s bodily injury and death. Both offenses are violations of the federal criminal civil rights statute that prohibits willful violations of civil rights by a person, such as a police officer, acting in an official capacity.
The same jury also found former MPD Officer Thomas Lane guilty of depriving Floyd of his constitutional right to be free from a police officer’s deliberate indifference to Floyd’s serious medical needs, resulting in bodily injury to Floyd and his death. On July 21, Lane was sentenced to 30 months in prison for this offense.
Former Officer Derek Chauvin previously pleaded guilty to depriving Floyd and a then-14-year-old child of their constitutional rights in violation of the same federal statute. On July 7, Chauvin was sentenced to 252 months in prison for those crimes.
“All four officers involved in the tragic death of George Floyd have now been convicted in federal court, sentenced to prison and held accountable for their crimes,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “George Floyd’s death could have been prevented if these defendants had carried out their affirmative duty to intervene to stop another officer’s use of deadly force. While these defendants have now been held accountable, law enforcement officers and leaders must take seriously the affirmative duty under the Constitution to intervene to stop misconduct by fellow officers and the duty to render medical aid. The federal prosecution of all officers tied to the death of George Floyd should send a clear and powerful message that the Department of Justice will never tolerate the unlawful abuse of power or victimization of Americans by anyone in law enforcement.”
“Former officers Thao and Kueng each had an individual duty and opportunity to intervene in the excessive force that resulted in the agonizing death of Mr. Floyd, but both men failed to take any action,” said U.S. Attorney Andrew M. Luger for the District of Minnesota. “These sentences reaffirm that every law enforcement officer, whether rookie or senior, has an affirmative duty to protect individuals in their custody.”
This case was investigated by the FBI and the Minnesota Bureau of Criminal Apprehension. It was prosecuted by Special Litigation Counsel Samantha Trepel and Trial Attorney Tara Allison of the Civil Rights Division, and Assistant U.S. Attorneys Samantha Bates, LeeAnn Bell, Evan Gilead, Manda Sertich and Allen Slaughter of the U.S. Attorney’s Office for the District of Minnesota.
Former Minneapolis Police Officers Tou Thao and J. Alexander Kueng Sentenced to Prison for Depriving George Floyd of His Constitutional RightsRead the Press Release
ST. PAUL, Minn. – The Justice Department announced today that former Minneapolis Police Officer Tou Thao, 36, was sentenced to serve 42 months in prison, and former Minneapolis Police Officer J. Alexander Kueng, 28, was sentenced to serve 36 months in prison, for depriving George Floyd Jr. of his constitutional rights.
On Feb. 24, 2022, following a trial that lasted nearly five weeks, a federal jury in St. Paul, Minnesota, found Thao and Kueng guilty of depriving Floyd of his constitutional right to be free from an officer’s unreasonable force when each willfully failed to intervene to stop former Minneapolis Police Department (MPD) Officer Derek Chauvin’s use of unreasonable force. The jury also found that Thao and Kueng deprived Floyd of his constitutional right to be free from a police officer’s deliberate indifference to serious medical needs when they saw Floyd restrained in police custody in clear need of medical care and willfully failed to aid him. The jury further found that both of these offenses resulted in Floyd’s bodily injury and death. Both offenses are violations of the federal criminal civil rights statute that prohibits willful violations of civil rights by a person, such as a police officer, acting in an official capacity.
The same jury also found former MPD Officer Thomas Lane guilty of depriving Floyd of his constitutional right to be free from a police officer’s deliberate indifference to Floyd’s serious medical needs, resulting in bodily injury to Floyd and his death. On July 21, 2022, Lane was sentenced to 30 months in prison for this offense.
Former Officer Derek Chauvin previously pleaded guilty to depriving Floyd and a then-14-year-old child of their constitutional rights in violation of the same federal statute. On July 7, 2022, Chauvin was sentenced to 252 months in prison for those crimes.
“All four officers involved in the tragic death of George Floyd have now been convicted in federal court, sentenced to prison, and held accountable for their crimes,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “George Floyd’s death could have been prevented if these defendants had carried out their affirmative duty to intervene to stop another officer’s use of deadly force. While these defendants have now been held accountable, law enforcement officers and leaders must take seriously the affirmative duty under the Constitution to intervene to stop misconduct by fellow officers and the duty to render medical aid. The federal prosecution of all officers tied to the death of George Floyd should send a clear and powerful message that the Department of Justice will never tolerate the unlawful abuse of power or victimization of Americans by anyone in law enforcement.”
“Former officers Thao and Kueng each had an individual duty and opportunity to intervene in the excessive force that resulted in the agonizing death of Mr. Floyd, but both men failed to take any action,” said U.S. Attorney Andrew M. Luger. “These sentences reaffirm that every law enforcement officer, whether rookie or senior, has an affirmative duty to protect individuals in their custody.”
This case was investigated by the FBI and the Minnesota Bureau of Criminal Apprehension. It was prosecuted by Special Litigation Counsel Samantha Trepel and Trial Attorney Tara Allison of the Civil Rights Division, and Assistant U.S. Attorneys Samantha Bates, LeeAnn Bell, Evan Gilead, Manda Sertich and Allen Slaughter of the U.S. Attorney’s Office for the District of Minnesota.
Former Democratic Party Chair Sentenced on Conspiracy to Cause Foreign Campaign Donation ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, NY – U.S. Attorney Trini E. Ross announced today that G. Steven Pigeon, 61, of Buffalo, NY, who was convicted of conspiracy to cause a foreign donation in a state election in violation of federal law, was sentenced to serve four months in prison and one year supervised release by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Paul E. Bonanno and Deputy Chief John Keller of the Department of Justice Public Integrity Section, who handled the case, stated that while working as a political consultant and lobbyist in Buffalo, Pigeon represented a foreign client, whose CEO was a Canadian citizen. In early 2014, despite knowing that it was illegal to make a foreign donation to a state political campaign, Pigeon solicited the CEO to make a $25,000 donation to the reelection campaign of a New York state elected official. However, the campaign rejected the donation because the CEO was not a citizen or permanent legal resident of the United States. Pigeon and the CEO then caused the donation from the CEO to be made through another individual, a permanent legal resident of the United States and an employee working for the CEO. In February 2014, a $25,000 donation was made to the elected official’s campaign, with Pigeon and the CEO knowing that the CEO would reimburse, the donation. As a result of the $25,000 donation, Pigeon and the CEO were granted entry into a fundraising event for the public official in New York City on February 26, 2014.
The sentencing is the result of an investigation by the FBI Buffalo Field Office, under the direction of Special Agent in Charge Stephen Belongia; the New York State Attorney General’s Office, under the direction of Letisha James; and the New York State Police, under the direction of Major Eugene Staniszewski.
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Florida Man Sentenced to 24 Months’ Imprisonment for Covid-19 Related Fraud and Identity Theft OffensesRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Jorice Williams Dennard, age 25, of Tampa, Florida, was sentenced on July 26, 2022, by United States District Judge Robert D. Mariani to 24 months and 1 day of imprisonment to be followed by a 2-year term of supervised release for the offenses of mail fraud and aggravated identity theft.
According to United States Attorney Gerard M. Karam, Dennard submitted a false application to the Pennsylvania Department of Labor and Industry for Pennsylvania Pandemic Unemployment Assistance (PUA) benefits using the personal identification information, including name, birth date, and social security number, of another person. Dennard then traveled to Jim Thorpe, PA, in an effort to obtain a package addressed to his identity theft victim that contained a debit card in the victim’s name with a balance of over $14,000 in PUA funds. Dennard was arrested at the Jim Thorpe Post Office.
This case was investigation by the United States Postal Inspection Service (USPIS) and prosecuted by Assistant U.S. Attorney Jeffery St John.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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Florida Businessman Charged with Conspiracy Involving Approximately $25 Million in Fraudulent Medicare Claims for Genetic Testing Submitted by Lawrence County Medical FacilityRead the Press Release
PITTSBURGH, Pa. – A resident of Fort Lauderdale, Florida, was charged in federal court with one count of conspiracy related to the submission of fraudulent Medicare claims, United States Attorney Cindy K. Chung announced today.
Daniel Hurt, 58, was charged by criminal Information with a conspiracy to commit health care fraud, pay and receive unlawful kickbacks, and engage in money laundering.
Beginning in late 2018 and continuing through approximately October 2019, the Information alleges that Hurt participated in a conspiracy related to Medicare billing for cancer genomic (CGx) testing. CGx testing used DNA sequencing to detect mutations in genes that could indicate a higher risk of developing certain types of cancers in the future. CGx testing, however, was not a method of diagnosing whether an individual presently had cancer. As alleged, Hurt and his co-conspirators, including individuals associated with so-called marketing entities, acquired thousands of testing samples from Medicare beneficiaries located throughout the United States. Marketers used targeted campaigns to induce beneficiaries to submit CGx specimens by means of cheek swabs sent to their homes or provided to them at purported “health fairs” held throughout the United States.
According to the Information, Hurt caused CGx specimens to be sent to Ellwood City Medical Center (ECMC), a hospital located in Ellwood City, Pennsylvania. As alleged, Hurt used ECMC as the billing entity for Medicare purposes despite the fact that the facility did not possess properly validated equipment to conduct any CGx testing on-site and, as such, ECMC staff were required, at Hurt’s direction, to repackage the samples and send them to third-party reference laboratories that were capable of completing the testing. In or to justify Medicare reimbursement for the CGx testing, Hurt and his co-conspirators obtained CGx prescriptions from telemedicine physicians without regard to the fact that the doctors did not conduct proper telemedicine visits, were not treating the Medicare beneficiaries for cancer or symptoms of cancer, did not use the test results in the treatment of the beneficiaries, and generally were not qualified to understand and interpret the test results.
According to the Information, Hurt caused ECMC to submit Medicare claims for CGx testing that regularly exceeded $12,000 per beneficiary. In total, between approximately January 2019 and October 2019, Medicare allegedly reimbursed ECMC more than $25 million for CGx testing. During this time, the Information further alleges that Hurt directed ECMC staff to transfer millions of dollars from ECMC-related accounts to bank accounts that Hurt controlled. In turn, Hurt allegedly used funds he obtained from ECMC to pay millions of dollars in kickbacks to the marketers, among others, in exchange for their efforts to obtain CGx samples. To disguise such kickbacks, the Information alleges that Hurt entered into sham contracts with the marketers to make it appear that they were engaged in, and being paid for, legitimate marketing and ]referral services. Likewise, Hurt, acting through entities he controlled, allegedly entered into similar agreements and business arrangements with ECMC that disguised the payments he obtained from the facility as purportedly legitimate payments, including payments related to management services at ECMC’s laboratory. As alleged, the payments, in fact, were based on the volume of CGx tests and the amount of resulting Medicare reimbursements.
According to the Information, Hurt and others used a portion of Medicare reimbursements obtained through the fraudulent submission of CGx claims to engage in monetary transactions in excess of $10,000, including approximately $3 million in payments toward the purchase of a luxury watercraft in Florida.
Hurt faces a maximum sentence of five years in prison and a fine of not more than the greater of $250,000 or an alternative fine in an amount not more than the greater of twice the gross pecuniary gain to any person or twice the pecuniary loss to any person other than the defendant. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Eric G. Olshan is prosecuting this case on behalf of the government. The Federal Bureau of Investigation, U.S. Department of Health and Human Services – Office of Inspector General, and Internal Revenue Service – Criminal Investigation conducted the investigation of the defendant.
An Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Florence Man Sentenced to Prison for Receiving Child PornographyRead the Press Release
MISSOULA — A Florence man who admitted to receiving numerous files of child pornography was sentenced today to seven years in prison, followed by ten years of supervised release, U.S. Attorney Jesse Laslovich said. The defendant was also ordered to pay $51,000 in restitution to the victims. Senior U.S. District Judge Donald W. Molloy presided.
Jeffrey Brandon Zabolotney, 35, previously pleaded guilty in March to one count of receipt of child pornography.
The government alleged in court documents that in November 2020, the Ravalli County Sheriff’s Office (RCSO) received a report that the defendant was accessing child pornography online and that he possessed child pornography on a digital storage device. After obtaining a search warrant for the defendant’s residence, law enforcement seized multiple computers and storage devices. The RCSO reviewed some of the seized devices and located digital files that depicted children engaged in sexually explicit conduct.
In May 2021, Homeland Security Investigations (HSI) began assisting the RCSO with the analysis and review of additional computer items that had not been searched by the RCSO. After analyzing data from computers and digital storage devices that belonged to and were used by the defendant, law enforcement officers and a Certified Forensic Examiner determined that between approximately June 2017 and August 2020, the defendant received over 4,600 image files and over 135 video files of minors engaged in sexually explicit conduct. The sexually explicit conduct included children being raped and being subjected to sexually sadistic conduct. Some of the minors in the files are prepubescent. In addition to content of the files themselves, law enforcement located other evidence that shows the defendant’s intent to commit the crime including documents with websites and passwords related to child pornography and a web history related to a user seeking child pornography.
“HSI investigators and support personnel will relentlessly use all of our investigative capabilities to punish those who engage in the despicable abuse of children, in some cases as young as infants,” said Ryan L. Spradlin, Special Agent in Charge, HSI Denver. “This sentence holds Zabolotney accountable for his atrocious crimes and serves as a warning that HSI and its law enforcement partners will work diligently to keep these predators out of Montana.”
Assistant U.S. Attorney Cyndee L. Peterson prosecuted the case, which was investigated by the Ravalli County Sheriff’ Office and Homeland Security Investigations.
Felon sentenced for illegally possessing firearms following roadway shootingRead the Press Release
ATLANTA – Rico Laprince Southall has been sentenced for possession of a firearm by a convicted felon following an incident where he was arrested after firing multiple gunshots at a family member on a public road in Cobb County, Georgia. Southall’s gunfire also struck another motorist’s vehicle.
“Southall’s illegal possession and dangerous use of these weapons are serious crimes that show how gun violence is a risk to all of us,” said U.S. Attorney Ryan K. Buchanan. “Keeping firearms out of the hands of convicted felons and individuals with violent criminal histories is essential to protecting the citizens of the district and reducing gun violence. Fortunately, no one was injured or killed because of this defendant’s egregious disregard for the safety of our community.”
“ATF will continue to work alongside our Federal, State and local partners in furtherance of reducing violent crime ,” said ATF Atlanta Field Division Special Agent in Charge Ben Gibbons.
"The Cobb County Police Department is exceptionally proud of the actions of the officers, detectives, and civilian staff who were involved in this case and countless other cases like this. The sacrifice these men and women make each time they place the badge and vest on to protect the people of Cobb County is a testament to their character, selflessness, and bravery. The impact of their actions is simply impossible to measure. Through the continued work of seizing illegal guns and removing very violent offenders from our streets, far fewer of our Cobb County community members are shot, killed, and maimed. We are thankful for the continued strong support from Project Safe Neighborhoods, the ATF, and our other federal partners, and we're equally grateful for the dedication of our local officers, detectives, and civilians here in Cobb County,” said Cobb County Police Chief Stuart VanHoozer.
According to the charges, and other information presented in court: On April 1, 2021, Southall targeted the victim, a member of his family, as she drove in Powder Springs, Georgia. Southall pursued the victim’s vehicle through the residential area and fired multiple rounds at her vehicle, all while he and the victim were travelling on a public road. Several rounds struck the victim’s vehicle and entered the passenger compartment of the vehicle, with at least one round striking an unoccupied infant safety seat. Southall also struck another motorist’s vehicle.
When Cobb County Police Department officers arrested Southall, he possessed a weapon equipped with an extended magazine and a revolver that was reported stolen out of Pennsylvania. The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) adopted the case and presented it to the U.S. Attorney’s Office for federal prosecution. Southall’s Cobb County charges are pending.
On July 13, 2022, Judge Eleanor L. Ross sentenced Southall to seven years in prison, to be followed by three years of supervised release. Southall pleaded guilty on April 13, 2022.
Assistant U.S Attorney Norman L. Barnett prosecuted the case. Former Assistant U.S. Attorney D’Juan Jones was the initial prosecutor for this case.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Cobb County Police Department investigated the case.
This case was brought as part of Project Safe Neighborhoods (PSN). In keeping with the Attorney General’s mission to reduce violent crime, the Northern District of Georgia’s PSN program focuses on prosecuting those individuals who most significantly drive violence in our communities, and supports and fosters partnerships between law enforcement and schools, the faith community, and local community leaders to prevent and deter future criminal conduct.
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.