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18 May 2022
Member of Philadelphia ‘Hilltop’ Drug Gang Sentenced to over 15 Years in PrisonRead the Press Release
PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Paul Robinson, 32, of Philadelphia, PA, was sentenced to 15 years and eight months in prison, and six years of supervised release by United States District Judge Gene E.K. Pratter for distributing narcotics as part of the Hilltop Drug Trafficking Group (DTG), an organization responsible for putting large amounts heroin and other narcotics including crack cocaine, oxycodone and fentanyl on the streets of West, Southwest, and Northwest Philadelphia, and Upper Darby between 2013 and 2018.
In December 2021, the defendant pleaded guilty to multiple felony narcotics charges including distribution of controlled substances and distribution of controlled substances near a school, stemming from his role in the Hilltop organization. The DTG operated seven days a week from approximately 9:00 am until midnight as a phone order/delivery service, through which customers called a cell phone number belonging to the leaders of the organization, including Robinson, to place orders for illegal narcotics. The customers were then redirected to “runners,” who would meet the customers on the street, often entering the customers’ vehicles, to deliver the narcotics in exchange for payment. Hilltop was a violent group that often defended its territory and narcotics with firearms, and through distribution of narcotics is responsible for multiple overdose deaths.
“This case is an excellent example of all levels of law enforcement collaborating to dismantle a dangerous drug trafficking operation putting deadly narcotics on streets all across Philadelphia and beyond,” said U.S. Attorney Williams. “This defendant directly threatened the safety of children by conducting the business of drug dealing adjacent to schools and playgrounds, actions for which he will now spend the better part of two decades behind bars.”
The case was investigated by Drug Enforcement Administration and the Philadelphia Police department, and is being prosecuted by Assistant United States Attorney Kelly Harrell and Everett Witherell.
Martinsburg woman admits to firearms chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Jordan Teal Burg, of Martinsburg, West Virginia, has admitted to a firearms charge, United States Attorney William Ihlenfeld announced.
Burg, 33, pleaded guilty today to one count of “Aiding and Abetting False Statement During Purchase of a Firearm.” Burg admitted to working with others to illegally purchase three pistols from a licensed firearms dealer in April 2021 in Jefferson County.
Burg faces up to 10 years of incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Special Assistant U.S. Attorney Carrie L. Lehman, also with the Berkeley County Prosecuting Attorney’s Office, is prosecuting the case on behalf of the government. The ATF and the Easter Panhandle Drug Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Martinsburg residents indicted on cocaine and fentanyl chargesRead the Press Release
MARTINSBURG, WEST VIRGINIA – Two Martinsburg residents are facing cocaine and fentanyl charges, accused of having enough fentanyl to kill 20,000 people, United States Attorney William Ihlenfeld announced.
Desmond Lamont Davis, 31, and Karmen Grimes, 21, were indicted this week on one count of “Conspiracy to Possess with Intent to Distribute 28 Grams or More of Cocaine Base,” one count of “Conspiracy to Possess with Intent to Distribute 40 Grams or More of Fentanyl,” and one count of “Conspiracy to Possess with Intent to Distribute Cocaine Hydrochloride.” Davis and Grimes are accused of working together to sell cocaine and fentanyl in Berkeley and Jefferson Counties from 2019 to 2021.
Davis and Grimes each at least five years and up to 40 years of incarceration and a fine of up to $5,000,000 for each of the first two counts and each face up to 20 years of incarceration and a fine of up to $1,000,000 for the third count. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Lara Omps-Botteicher is prosecuting the case on behalf of the government. The Eastern Panhandle Drug Task Force, a HIDTA-funded initiative; ATF; and the U.S. Marshals Service investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Manchester Physician Barred from Prescribing Certain Controlled SubstancesRead the Press Release
NASHVILLE – In a settlement reached last week, David Florence, D.O., a Manchester, Tennessee physician, agreed to be barred from prescribing Schedule II and the vast majority of Schedule III controlled substances, announced United States Attorney Mark H. Wildasin for the Middle District of Tennessee.
Pursuant to the Consent Judgment and Permanent Injunction, Florence is permanently enjoined from issuing prescriptions for any controlled substances under Schedules II and III of the Controlled Substances Act, with limited exceptions for buprenorphine products as allowed by Tennessee law, testosterone, and two migraine medications. Florence also agreed not to order or store any controlled substances, and not to prescribe to himself, any immediate family members, fellow employees, or significant others.
Under the terms of the agreement, DEA has the right to enter Florence’s registered location at any time during business hours without notice for the purpose of determining compliance. In addition, Florence must comply with all laws concerning the supervision of mid-level providers. If Florence fails to comply with the terms of the settlement agreement, he is subject to civil penalties, criminal charges, and/or the revocation of his DEA Registration.
This agreement resolves all remaining claims the United States asserted against Florence, stemming from a lawsuit originally filed by the former office manager of a Cookeville, Tenn. pain clinic where Florence practiced, which was brought under the qui tam, or whistleblower, provisions of the False Claims Act. The Whistleblower provisions allow private citizens with knowledge of false claims to bring civil suits on behalf of the government.
“We rely on whistleblowers to help identify unlawful conduct, and we greatly appreciate the assistance that the relator in this case provided throughout the investigation and court proceedings that allowed us to stop Dr. Florence from ever again prescribing the dangerous controlled substances at issue here,” said U.S. Attorney Wildasin. “This extraordinary injunctive relief is one of the many ways in which the United States can protect the public from providers who recklessly prescribe, or fail to properly supervise others in prescribing, dangerous controlled substances.”
In March 2016, the United States filed a civil complaint in intervention, alleging violations of the Controlled Substances Act and the False Claims Act, against Florence and other defendants. As to Florence, the United States alleged that he prescribed controlled substances that had no legitimate medical purpose and failed to properly supervise mid-level practitioners. The United States previously obtained settlements that resulted in the dismissal of its claims against all other defendants named in its complaint in intervention.
This matter was investigated by the Department of Health & Human Services – Office of Inspector General, the Drug Enforcement Administration, and the Tennessee Bureau of Investigation Medicaid Fraud Control Unit. Assistant U.S. Attorney Wynn Shuford represented the United States.
The case is captioned as United States ex rel. Norris v. Anderson, No. 3:12-cv-00035 (M.D. Tenn.). The claims in the complaint are allegations only, and there has been no determination of liability.
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Manchester Man Sentenced to 70 Months for Five Robberies in Manchester and GoffstownRead the Press Release
CONCORD - Jonathan McKnight, 39, of Manchester, was sentenced to 70 months in federal prison for interference with commerce by threats and violence by committing five robberies, United States Attorney Jane E. Young announced today.
According to court documents and statements made in court, on March 25, 2020, McKnight robbed a convenience store in Manchester by passing a note to the clerk indicating he had a gun and wanted money. On March 28, 2020, McKnight robbed another convenience store in Manchester by again passing a note to the clerk ordering the clerk to give him the money. On this occasion, he gestured toward his back waistband while lifting up his sweatshirt. An officer who reviewed the store video footage recognized McKnight as the person in the video. On March 30, 2020, Manchester police officers conducted a post-arrest interview with McKnight. He admitted to committing both robberies and passing the same note at each robbery. While acknowledging he had claimed to have a gun during the robberies, he stated he did not possess a gun during the robberies.
On July 7, 2020, Manchester police officers responded to another robbery. The cashier gave the officers a description of the robber and told them that the robber had placed a note on the counter. The cashier gave the robber approximately $100-$150 from the drawer, mostly $1.00 bills. After reviewing the store video footage, officers located McKnight wearing the same clothing worn by the robber. He had approximately $60, including approximately 25 $1.00 bills.
On March 7, 2021, and March 10, 2021, McKnight committed additional robberies at two separate locations in Goffstown. Investigators received a tip that McKnight committed both robberies and McKnight later admitted that he committed both robberies.
McKnight previously pleaded guilty on November 29, 2021.
“Robberies and other violent crimes not only endanger lives but also spread fear throughout the community,” said U.S. Attorney Young. “Thanks to excellent police work in this case, Mr. McKnight has been held responsible for his criminal conduct. This successful prosecution is an example of how local and federal law enforcement partners work collaboratively and diligently to protect public safety and keep our citizens safe from violent crime.”
“Jonathan McKnight has repeatedly demonstrated why he is a serious threat to the community, confessing to a string of robberies during which he threatened to use a firearm,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “Today’s sentence should be a reminder to everyone of the serious consequences that come with putting people in danger. New Hampshire is much safer with him behind bars.”
These matters were investigated by the Manchester Police Department and Goffstown Police Department with assistance from the Federal Bureau of Investigation. The case was prosecuted by Assistant U.S. Attorney Debra Walsh.
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Madisonville Man Faces Federal Methamphetamine ChargesRead the Press Release
Paducah, KY – A federal grand jury returned an indictment last week charging a Madisonville, KY man with distributing methamphetamine and possessing with the intent to distribute methamphetamine.
According to court records, Travarius Baxter, 34, distributed methamphetamine on February 17, 2022, and possessed methamphetamine with the intent to distribute it on March 9, 2022.
On May 16, 2022, the defendant was arraigned before a U.S. Magistrate Judge in the U.S. District Court for the Western District of Kentucky. If convicted at trial, he faces a mandatory minimum sentence of at least 10 years, and up to life, in federal prison. There is no parole in the federal system. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky made the announcement.
The Drug Enforcement Administration and the Madisonville-Hopkins County VICE/Narcotics Unit are investigating the case.
The case is being prosecuted by Assistant U. S. Attorney Leigh Ann Dycus.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Lowell Postal Carrier Arrested on Bribery and Cocaine ChargesRead the Press Release
BOSTON – A Lowell postal worker has been arrested for allegedly attempting to bribe and sell cocaine to a postal supervisor.
John Noviello, of Nashua, N.H., 61, was charged with one count of bribery of a public official and one count of distribution of cocaine. Noviello was released on conditions following an initial appearance in federal court in Boston on May 12, 2022.
According to the charging documents, Noviello was a mail carrier for the U.S. Postal Service in Lowell. It is alleged that, on Feb. 15, 2022, Noviello approached a U.S. Postal supervisor seeking their assistance in a scheme to divert postal packages suspected of containing cocaine. Noviello allegedly offered to pay the supervisor $1,750 per kilogram of cocaine successfully obtained from any diverted packages. On Feb. 17, 2022, Noviello allegedly left $850 in cash, concealed in a Dunkin’ bag, inside the supervisor’s vehicle in an attempt to encourage the supervisor to agree to the scheme. It is alleged that Noviello, referring to the $850, later commented to the supervisor, “that was a nice envelope for starters.” After contacting authorities, the supervisor conducted a controlled purchase from Noviello during which the defendant allegedly distributed approximately four grams of cocaine for $200.
The charge of bribery of a public official provides for a sentence of up to 15 years in prison, up to three years of supervised release and a fine of $250,000. The charge of distribution of cocaine provides for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of $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; Matthew Modafferi, Special Agent in Charge of the United States Postal Service Office of Inspector General, Northeast Area Office; and Ketty Larco Ward, Inspector in Charge of the U.S. Postal Inspection Service, made the announcement. Assistant U.S. Attorney John T. Mulcahy of Rollins’ Criminal Division is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Local woman charged with preparing false income tax returnsRead the Press Release
HOUSTON – A tax preparer has been arrested on charges she was responsible for more than a dozen fraudulent tax returns, announced U.S. Attorney Jennifer B. Lowery.
Authorities took Cheryl Kissentaner into custody today. She is expected to make her initial appearance before U.S. Magistrate Judge Christina A. Bryan at 2 p.m.
A federal grand jury returned the 15-count indictment March 30.
The indictment alleges that from 2015 to 2018, Kissentaner fraudulently prepared 15 false income tax returns for clients.
If convicted, Kissentaner faces up to three years of prison and up to a $250,000 fine for each count.
IRS-Criminal Investtigation conducted the investigation. Assistant U.S. Attorney Justin R. Martin is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Kanawha County Man Sentenced to Prison for Federal Drug CrimeRead the Press Release
CHARLESTON, W.Va. – A Kanawha County man was sentenced today to three years and one month in prison, to be followed by three years of supervised release, for aiding and abetting the distribution of methamphetamine.
According to court documents and statements made in court, John Eric Dickson, 59, of St. Albans, admitted that he supplied co-defendant Rodney Alexander Minter, 62, of Logan, with an ounce of methamphetamine on January 5, 2021, to sell to another individual. Minter pleaded guilty to distribution of 5 grams or more of methamphetamine, and faces a mandatory minimum of five years and up to 40 years in prison when he is sentenced on June 9, 2022.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Drug Enforcement Administration (DEA) and the Violent Crime and Drug Task Force West.
Senior United States District Judge David A. Faber imposed the sentence. Assistant United States Attorney Courtney L. Cremeans prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:21-cr-169.
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Justice Department Settles with IT Recruiter to Resolve Immigration-Related Discrimination ClaimsRead the Press Release
The Department of Justice announced that it has reached a settlement agreement with Amtex Systems Inc., an IT staffing and recruiting company based in New York. The settlement resolves claims that Amtex discriminated against U.S. workers based on their citizenship or immigration status during several stages of the recruitment process because their clients preferred workers with temporary employment visas.
“IT staffing agencies cannot unlawfully exclude applicants or impose additional burdens because of someone’s citizenship or immigration status,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Civil Rights Division is committed to enforcing the law to ensure that job applicants, including U.S. workers, are protected from unlawful discrimination.”
The department’s investigation began after a U.S. citizen filed a discrimination complaint with the Civil Rights Division’s Immigrant and Employee Rights Section (IER) against Amtex. Based on its investigation, the department concluded that Amtex used a company operating in India to identify and screen job applicants based on clients’ preferences for workers with particular citizenship or immigration statuses. The investigation determined that the recruiters sent job advertisements with their clients’ unlawful citizenship or immigration status preferences, and also implemented those preferences when considering applicants. The recruiters’ practices harmed U.S. workers by deterring them from applying, and not considering those who did apply. For example, the investigation revealed that Amtex did not consider at least three U.S. workers when they applied to a job posting that stated a preference for workers with temporary employment visas. The department further concluded that recruiters for Amtex discriminated against non-U.S. citizen applicants by routinely requiring them to provide an immigration document to move forward in the recruitment process.
The Immigration and Nationality Act (INA) protects U.S. citizens, non-U.S. citizen nationals, refugees, asylees, and recent lawful permanent residents from workplace discrimination based on citizenship or immigration status. Recruiters are liable for violations of the INA if they implement a client’s unlawful discriminatory preferences. Under the INA, employers or recruiters can only limit jobs based on citizenship or immigration status if required by a law, regulation, executive order or government contract. Further, because federal law only allows employers to check a person’s permission to work after they are hired, employers and recruiters must not verify the permission to work of job applicants.
Under the terms of the settlement agreement, Amtex will pay over $15,000 in civil penalties to the United States, revise its policies and procedures, train relevant employees and agents on the INA’s anti-discrimination provision, and be subject to monitoring for a three-year period to ensure compliance.
IER is responsible for enforcing the anti-discrimination provision of the INA. Among other things, this law prohibits discrimination based on citizenship or immigration status, and national origin in hiring, firing, or recruitment or referral for a fee; unfair documentary practices; retaliation; and intimidation. More information about citizenship status discrimination under the INA is available in this flyer.
Learn more about IER’s work and how to get assistance through this brief video. Applicants or employees who believe they were discriminated against based on their citizenship, immigration status, or national origin in hiring, firing, recruitment, or during the employment eligibility verification process (Form I-9 and E-Verify); or subjected to retaliation, may file a charge. The public also can contact IER’s worker hotline at 1-800-255-7688; call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); email IER@usdoj.gov; sign up for a free webinar; or visit IER’s English and Spanish websites. Subscribe to GovDelivery to receive updates from IER.
View the Spanish translation of this press release here. View the Hindi translation of this press release below.
Justice Department Settles Immigration-Related Discrimination Claim Against Indiana Staffing CompanyRead the Press Release
The Department of Justice announced that it has reached a settlement agreement with JMJ Talent Solutions Inc. (JMJ Talent Solutions), a staffing company with four locations throughout Indiana. The settlement resolves a claim that JMJ Talent Solutions discriminated against three non-U.S. citizens because of their citizenship status when it asked them to present specific documentation to prove they had permission to work in the United States instead of letting them choose which valid documents to show.
“Employers may not discriminate against workers when verifying their permission to work in the United States – such as by rejecting their valid documentation, requesting specific documentation, or requesting more documents than necessary — based on the workers’ citizenship status or national origin,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “All workers have the right to choose the valid documents they want to present for that process. The Justice Department will continue to fight to remove unlawful barriers in the workplace.”
Based on its investigation, the department determined that, after rejecting valid documentation that a non-U.S. citizen presented to prove she was allowed to work in the United States, JMJ Talent Solutions requested that she present specific immigration documents, including a Permanent Resident Card with an unexpired date. The department also determined that the staffing company asked at least two other lawful permanent residents to present their Permanent Resident Cards to prove their permission to work.
The Immigration and Nationality Act (INA) prohibits employers from rejecting documentation that reasonably appears to be valid and to relate to the person who presents it, from asking workers to show specific documentation, and from asking for more documentation than the law requires to prove their permission to work. Employers that do so may violate the INA’s anti-discrimination provision.
Under the terms of the settlement agreement, JMJ Talent Solutions will pay a civil penalty, post notices informing workers of their rights under the INA’s anti-discrimination provision, train its staff and be subject to departmental monitoring for three years.
The Civil Rights Division’s Immigrant and Employee Rights Section (IER) is responsible for enforcing the anti-discrimination provision of the INA. The statute prohibits discrimination based on citizenship status and national origin in hiring, firing, or recruitment or referral for a fee; unfair documentary practices; and retaliation and intimidation.
Learn more about IER’s work and how to get assistance through this brief video. Find more information on how employers can avoid discriminating when verifying an employee’s permission to work on IER’s website. Applicants or employees who believe they were discriminated against based on their citizenship, immigration status, or national origin in hiring, firing, recruitment, or during the employment eligibility verification process (Form I-9 and E-Verify); or subjected to retaliation, may file a charge. The public can also call IER’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); email IER@usdoj.gov; sign up for a free webinar; or visit IER’s English and Spanish websites. Subscribe to GovDelivery to receive updates from IER. View the Spanish translation of this press release here.
Justice Department Secures Agreement to Provide Community-Based Services to Children with Disabilities in Rhode IslandRead the Press Release
The Department of Justice today entered into a settlement agreement with the Rhode Island Executive Office of Health and Human Services (EOHHS) to resolve alleged violations of the Americans with Disabilities Act (ADA).
The parents of a child with autism filed a complaint with the Justice Department, alleging that Rhode Island failed to provide their minor son with community-based Medicaid services that the state had authorized. These services allow children with disabilities to remain in their homes and communities rather than enter residential treatment facilities. The parents alleged that while the state authorized their son to receive 25 to 34 hours per week of community-based services, their son only received, on average, half of the weekly authorized hours. As a result, the parents feared that their son would be forced to leave their home and move to an institution. After the United States opened an investigation of this complaint, the child entered an out-of-state residential treatment facility for several months.
“The ADA requires states to provide disability services in the most integrated setting appropriate so that children with disabilities can remain at home with their families,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Providing community-based services allows children with disabilities to live at home and avoid needless placement in residential facilities. The Civil Rights Division will vigorously enforce the ADA so that people with disabilities can get services at home instead of in facilities.”
“Integrated, community-based services for children with intellectual and developmental disabilities are critical to keeping families together and ensuring that children receive care in a supporting and loving environment; no family should be forced to make a choice between care and separation from their children when adequate support is possible in a community setting,” said U.S. Attorney Zachary A. Cunha of the District of Rhode Island. “That is what the ADA requires, what today’s agreement is designed to ensure, and what this office will continue to demand as we go forward.”
Under the agreement reached today, Rhode Island will modify its policies so that children with intellectual and developmental disabilities such as autism will receive the community-based services to which they are authorized. The state will require that families of such children receive a family care plan, allow families to receive services from different provider agencies, and provide oversight to make sure children with disabilities receive authorized community-based services. The state will also create an ombudsman program to allow individuals and their family members to express concerns. For the complainants’ son, EOHHS will develop an individualized service plan to identify the community-based services necessary for him to live at home, and pay $75,000 in damages.
This matter was handled jointly by Assistant U.S. Attorney Amy Romero for the District of Rhode Island and the Civil Rights Division’s Disability Rights Section.
The Justice Department plays a central role in advancing the ADA’s goals of equal opportunity, full participation, independent living, and economic self-sufficiency for people with disabilities. For more information on the Civil Rights Division, please visit http://www.justice.gov/crt. For more information on the ADA, please call the department’s toll-free ADA information line at 800-514-0301 (TDD 800-514-0383) or visit www.ada.gov. ADA complaints may be filed online at http://www.ada.gov/complaint.
Anyone in the District of Rhode Island may also report civil rights violations directly to the U.S. Attorney’s Office for the District of Rhode Island at Civil Rights Enforcement (justice.gov) or 401-709-5000.
Jackson Man Pleads Guilty to Possession of a Firearm by a Convicted FelonRead the Press Release
Jackson, Miss. – A Jackson man pleaded guilty to possession of a firearm by a convicted felon, announced U.S. Attorney Darren J. LaMarca and Special Agent in Charge Jermicha Fomby of the Federal Bureau of Investigation in Mississippi.
According to court documents, Don Cornelius Ward, 38, was found in possession of a firearm by officers of the Jackson Police Department on February 3, 2020. Ward has five prior felony convictions. As a convicted felon it is contrary to federal law for Ward to possess any firearm.
Ward pleaded guilty to a violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2) which criminalize the possession of firearms by convicted felons. He is scheduled to be sentenced on September 7, 2022 and faces a maximum penalty of 10 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Jackson Police Department and the FBI are investigating the case.
Assistant U.S. Attorney Charles W. Kirkham is prosecuting the case.
This case is being 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.
Inmate admits to threat chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Shawn L. Price, an inmate at Federal Corrections Institution Gilmer, has admitted to a threat charge, United States Attorney William Ihlenfeld announced.
Price, 42, pleaded guilty today to one count of “Transmitting Threatening Communications in Interstate Commerce.” Price threatened someone by phone in November 2021. According to the indictment, the threat included breaking the subject’s neck and torturing the subject.
Price faces up to five years of incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Christopher L. Bauer is prosecuting the case on behalf of the government. The Bureau of Prisons investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Indianapolis Man Pleads Guilty to Federal Gun CrimeRead the Press Release
CHARLESTON, W.Va. – An Indianapolis man pleaded guilty today to being a felon in possession of a firearm.
According to court documents and statements made in court, on April 20, 2021, officers with the Parkersburg Police Department pulled over a vehicle driven by Steven Loren Mandrell, 44, formerly of Parkersburg, because it didn’t have a valid license plate. As an officer approached the vehicle, Mandrell was seen leaning toward the steering wheel as if he was concealing something underneath the driver’s seat. Mandrell admitted to having two loaded firearms under his seat, a Smith and Wesson .40-caliber pistol and a Bul Transmark 9mm pistol. Both firearms were seized by the officers.
Federal law prohibits a person with a prior felony conviction from possessing a firearm or ammunition. Mandrell knew he was prohibited from possessing firearms because of a January 27, 2010, conviction for delivery of a controlled substance in Wood County Circuit Court.
Mandrell is scheduled to be sentenced on September 14, 2022, and faces a maximum penalty of 10 years in prison, three years of supervised release and a $250,000 fine.
United States Attorney Will Thompson made the announcement and commended the investigative efforts of the Parkersburg Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).
Senior United States District Judge David A. Faber presided over the hearing. Assistant United States Attorney Jeremy B. Wolfe is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:21-cr-231.
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Idaho Falls Man Sentenced to 25 years in Federal Prison for Trafficking MethamphetamineRead the Press Release
POCATELLO – On May 16, 2022, an Idaho Falls man was sentenced to 25 years in federal prison on drug trafficking and immigration charges. A federal jury convicted Jose Luis Cruz-Delgado, 29, at a trial held in November 2021. Senior U.S. District Judge B. Lynn Winmill presided over the trial and imposed sentence.
According to court records and evidence presented at trial, Cruz-Delgado was found guilty of one count of conspiracy to distribute methamphetamine, one count of attempted possession with the intent to distribute methamphetamine, and one count of deported alien found in the United States. On September 26, 2017, Cruz-Delgado and a co-conspirator were stopped in San Bernardino, California, with 28 pounds of methamphetamine. Cruz-Delgado admitted the methamphetamine was his. He also admitted he was returning to Idaho Falls. He was later released on bond following his California arrest.
Cruz-Delgado subsequently continued trafficking methamphetamine to Idaho from California up until his arrest in Idaho in August 2018. Evidence at trial showed that, during the course of the conspiracy, Cruz-Delgado was responsible for distributing over 30 to 40 pounds of methamphetamine through one of several co‑conspirators. When arrested in Idaho, Cruz-Delgado admitted to being previously deported from the United States.
U.S. Attorney Rafael M. Gonzalez Jr., of the District of Idaho made the announcement and commended the cooperative efforts of the Drug Enforcement Administration, Homeland Security Investigations in Idaho Falls, Idaho State Police, Immigration and Customs Enforcement’s, Enforcement and Removal Operations, and the San Bernardino County Sheriff’s Department which led to the charges.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
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Houlton Man Pleads Guilty to Being a Felon in Possession of FirearmsRead the Press Release
BANGOR, Maine: A Houlton man pleaded guilty in federal court to being a felon in possession of firearms, U.S. Attorney Darcie N. McElwee announced today.
According to court records, in September 2020, the Maine Warden Service and Houlton Police Department executed a search warrant at the Houlton home of Daniel Tyce, 40. Tyce admitted to being a felon and that he was in possession of firearms. Law enforcement seized a shotgun and ammunition from inside the residence. They also seized a shotgun, a receiver completed into a pistol with stabilizing brace, and various rounds of ammunition and magazines from a truck Tyce used. Tyce is prohibited from possessing firearms due to prior felony convictions in New Jersey.
Tyce faces up to 10 years in prison and a fine of up to $250,000. He also faces up to three years of supervised release. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Maine Warden Service, Houlton Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case.
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Hazleton Roofing Company Owner Sentenced to Six Months’ Imprisonment for Failing to Pay Payroll TaxesRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced that Charles R. Ehrenberg, age 34, owner of Ehrenberg Roofing and Construction, Inc., located in Hazleton, Pennsylvania, was sentenced yesterday by United States District Court Judge Malachy E. Mannion to 6 months’ imprisonment to be followed by 6 months’ home confinement with electronic monitoring and a 2-year term of supervised release, for failing to collect and pay over several years’ worth of required federal payroll taxes.
According to United States Attorney John C. Gurganus, for a four-year period from 2017 to 2020, Ehrenberg willfully failed to collect and pay over to the IRS required federal payroll taxes in the total amount of $185,681.90. By paying his labor force, which was comprised mostly of undocumented immigrants, an all-cash wage, and by failing to properly account for and pay over any required payroll taxes, Ehrenberg deprived the government of substantial tax revenue. At sentencing, Ehrenberg was also ordered to make restitution to the IRS in the amount of $185,681.90.
The case was investigated by IRS-Criminal Investigation. Assistant U.S. Attorney Jeffery St John prosecuted the case.
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Hartford Man Charged with Firearm Possession and Crack Distribution OffensesRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, James Ferguson, Special Agent in Charge, ATF Boston Field Division, and Hartford Police Chief Jason Thody announced that a federal grand jury in Bridgeport returned an indictment today charging CHRISTOPHER GASKIN, 46, of Hartford, with firearm possession and narcotics distribution offenses.
As alleged in court documents and statements made in court, on January 1, 2022, Hartford Police stopped a car Gaskin was operating on Irving Street in Hartford. Gaskin was arrested on state charges after a search of his person revealed a loaded .380 caliber handgun and a distribution quantity of crack cocaine.
It is alleged that Gaskin’s criminal history includes at least eight felony convictions, including convictions for assault, robbery and witness tampering 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.
The indictment charges Gaskin with unlawful possession of a firearm by a felon. For this offense, based on his alleged criminal history, Gaskin is subject to the Armed Career Criminal Act, a federal law imposing severe penalties for firearm or ammunition possession by an individual who has been convicted of at least three violent felonies or serious drug offenses. A defendant who qualifies as an Armed Career Criminal faces a minimum term of imprisonment of 15 years and a maximum term of imprisonment of life. Gaskin is also charged with possession with intent to distribute cocaine base (“crack”), an offense that carries a maximum term of imprisonment of 20 years.
U.S. Attorney Avery stressed that an indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
Gaskin was arrested on a federal criminal complaint on April 28, 2022. He is currently released on a $150,000 bond.
This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Hartford Police Department. The case is being prosecuted by Assistant U.S. Attorney Angel M. Krull.
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.
Greene County Woman Sentenced to Federal Prison for CARES Act FraudRead the Press Release
Bowling Green, KY – A Greene County Kentucky woman was sentenced yesterday to 12 months and 1 day in federal prison for submitting nine fraudulent Coronavirus Aid, Relief, and Economic Security (CARES) Act applications.
According to court documents, between April 2020 and July 2020, Mandy Ellen Bauer, 41, of Greensburg, Kentucky filed nine fraudulent applications for various CARES Act financial assistance programs, including Paycheck Protection Program (PPP) loans, Economic Injury Disaster Loans (EIDL), and advance payment of tax credits, resulting in an attempted theft of over $230,000. In those false applications Bauer exaggerated the gross revenues, number of employees, and payroll of her company, Family Personal Sales. All of Bauer’s fraudulent applications were rejected and she did not receive any funds.
PPP loans were designed to provide a direct incentive for small businesses to keep their workers on the payroll. Under this program, the Small Business Administration (SBA) would forgive all or part of loans if all employees were kept on the payroll for eight weeks and borrowers submitted documentation confirming that the loan proceeds were used for payroll, rent, mortgage interest, or utilities.
EIDLs provided loan assistance (including $10,000 advances) for small businesses and other eligible entities for loans up to $2 million. The EIDL proceeds could be used to pay fixed debts, payroll, accounts payable, and other bills that could have been paid had the disaster not occurred.
“I commend the investigative work of the Treasury Inspector General for Tax Administration,” said Michael A. Bennett, United States Attorney for the Western District of Kentucky. “Together with our federal law enforcement partners we will continue to identify, apprehend, and prosecute fraudsters involved in plots to steal federal relief funds.”
“The Treasury Inspector General for Tax Administration aggressively pursues those who endeavor to defraud programs afforded to the American people under the CARES Act,” said J. Russell George, the Treasury Inspector General for Tax Administration (TIGTA). “We appreciate the efforts of the Department of Justice in this effort.”
The Treasury Inspector General for Tax Administration investigated the case, which was prosecuted by Assistant U.S. Attorney David Weiser.
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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Georgia resident pleads guilty to cyberstalkingRead the Press Release
United States Attorney Richard G. Frohling announced on May 18, 2022 that Minjie Cao (age 27) of Alpharetta, Georgia, pleaded guilty to one count of cyberstalking in violation of Title 18, United States Code, Section 2261A. The charges relate to death threats that Cao sent to Kenosha government officials in August 2020 during the protests and unrests in Kenosha, Wisconsin.
As detailed in court documents, between August 27, 2020 and August 29, 2020, Cao, who resided outside of Atlanta, Georgia, sent email death threats to three Kenosha government officials. Cao also made several phone calls to the offices of these individuals – all for the purpose of causing them distress during the unrest in Kenosha.
The cyberstalking count carries a maximum penalty of up to five years in prison, up to $250,000 in fines, and up to three years of supervised release. Sentencing is set for October 19, 2022, before U.S. District Judge J.P. Stadtmueller.
This matter was investigated by the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Benjamin Proctor.
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For further information contact: Public Information Officer Kenneth Gales
(414) 297-1700
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Georgia Man Charged with Federal Hate Crimes and Firearms OffensesRead the Press Release
Larry Edward Foxworth, 48, was indicted yesterday by a federal grand jury in Atlanta, Georgia, for hate crime and federal firearms violations.
This indictment charges Foxworth with two counts of willfully attempting, through the use of a firearm, to cause bodily injury to customers, employees and other people present at convenience stores in Jonesboro, Georgia, because of their actual and perceived race, color and national origin. Foxworth is also charged with two counts of using a firearm in furtherance of a crime of violence. If convicted, Foxworth faces up to life in prison for each hate crime count and a mandatory minimum of 10 years in prison, consecutive to any other sentence, for each firearm count.
“Hate-fueled violence has no place in a civilized society,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Thankfully no one was injured by the conduct alleged in this case, but the Justice Department is committed to using all the tools in our law enforcement arsenal to prosecute allegations of hate crimes.”
“No person should be afraid to shop or go to work in our community. Nor should people have to worry that they may be violently attacked because of the color of their skin,” said U.S. Attorney Ryan K. Buchanan for the Northern District of Georgia. “Combating hate crimes continues to be among the Department of Justice’s top priorities. In this District, allegations of criminal activity fueled by hate and racism will always merit our full attention.”
“Hate crimes are the top priority of the FBI’s Civil Rights Program, due to the damaging impact they have on victims and entire communities,” said Special Agent in Charge Keri Farley of the FBI Atlanta Field Office. “This office will use every resource available to ensure that criminals committing bias-motivated violent crimes are held accountable.”
The case was investigated by the FBI’s Atlanta Field Office, and is being prosecuted by Assistant U.S. Attorney Brent Gray for the Northern District of Georgia and Trial Attorney Alec Ward of the Justice Department’s Civil Rights Division.
For more information and resources on the department’s efforts to combat hate crimes, visit justice.gov/hatecrimes.
An indictment is merely an allegation, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Ft. Bragg Employee Sentenced to 42 Months’ Imprisonment for Receipt of BribesRead the Press Release
WILMINGTON, N.C. – A Fayetteville man was sentenced today to 42 months for receiving bribes in his role as a purchasing agent while employed at Ft. Bragg. Calvin Alfonza Jordan pleaded guilty to receiving bribes, in violation of 18 U.S.C. § 201, in February of this year.
“As suggested by the presiding judge at sentencing, one of the things that makes our government, the United States of America, great and unique from others is its commitment to deal with each of its citizens fairly,” Michael Easley, U.S. Attorney for the Eastern District of North Carolina, said. “The taking of bribes by employees of the United States is in direct contradiction to that foundational premise. As this prosecution and resulting sentence show, employees of the government who abuse their positions by taking bribes will be prosecuted and face consequences to their crimes.”
According to court documents, Calvin Alfonza Jordan was a procurement agent assigned to the Operations and Maintenance Division, Directorate of Public Works (DPW), at Fort Bragg, NC. To obtain services, a Ft. Bragg facilities user submits a request for a repair or service of a facility, such as a roof leak, damaged floor, or plumbing issue to the DPW. The request creates a Demand Maintenance Order (DMO) that is forwarded to the appropriate commodity section. The DMO is assigned to a DPW technician that specializes in a certain trade, such as roofing, flooring, plumbing, or carpentry.
The DPW technician assesses the issue to determine if they can complete the repair or service themselves within the time allotted, or certifies that because of manpower, needed expertise, or particular equipment needs, a contractor should undertake the work. If a contractor is to be used for the work, the technician submits a request for a contract to the work leader. If the work is estimated to cost under $2,500, the approved contract is forwarded to a DPW procurement agent who hires a contractor to complete the work. The technician who requested the contract would inspect and certify the work upon completion. Once the technician inspected and certified the contractor’s work, the procurement agent would pay the contractor using a government purchase card.
From 2011 into 2019, Jordan used his position as a procurement agent to receive bribes of approximately $200 per DMO from various vendors contracting with DPW, Ft. Bragg, North Carolina, in return for increasing the number of federal contracts given the vendor. It is estimated Jordan received $773,600 in illegal bribes.
"While Calvin Jordan was supposed to be repairing facilities to provide a safe working and living environment for our soldiers and their families, he was instead busy lining his own pockets and compromising the integrity of the contracting process,” said Special Agent in Charge Christopher Dillard, Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS), Mid-Atlantic Field Office. "Today’s sentencing should send a stark reminder that DCIS and our law enforcement partners remain in pursuit of those who jeopardize the readiness of our military for their own gain."
"The sentence handed down today reflects the unrelenting approach and tenacity we employ daily in pursuing individuals who dare to attempt to defraud the federal government and the U.S. Army", said Special Agent in Charge L. Scott Moreland, of the U.S. Army Criminal Investigation Division's Major Procurement Fraud Field Office. "When it comes to government contracting and purchasing, the superbly skilled and highly-trained special agents in our fraud unit use their finely honed investigation skills to combat and uncover fraud, deception, bribery and other criminal acts."
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after the sentencing by Chief United States Judge Richard E. Myers II. Defense Criminal Investigative Service and the U.S. Army Criminal Investigative Division, Major Procurement Fraud Unit, investigated 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. 5:19-CR-328-FL.
Former South Florida Pharmacy Technician Pleads Guilty to $40 Million Kickback Conspiracy Targeting Military Health Care ProgramsRead the Press Release
Miami, Florida – A former Palm Beach County pharmacy technician and high-level executive assistant has pleaded guilty to her role in a multi-million-dollar kickback conspiracy that defrauded Tricare and CHAMPVA through a South Florida compounding pharmacy. Tricare and CHAMPVA are the health care benefit programs for the United States Department of Defense and Department of Veterans Affairs.
In connection with pleading guilty to one count of conspiracy, Alisa Catoggio, 40, of Boca Raton, Florida, admitted that she was involved in a scheme that paid approximately $40 million in kickbacks to patient recruiters in exchange for their referring prescriptions issued to Tricare and CHAMPVA beneficiaries to a Broward compounding pharmacy. The prescriptions were for expensive pain creams, scar creams, vitamins, and other medically unnecessary compound drugs, which were reimbursed at amounts of up to $15,000 for a one month’s supply. In addition, the Broward pharmacy did not charge the beneficiaries the mandatory co-payments for the drugs, which constituted another form of illicit kickback. The co-conspirators used phony charities to conceal this “no-copayment” kickback activity. The fraudulent billings caused a loss to the military health care program of approximately $88 million.
Sentencing is scheduled for August 9, at 2:00 p.m., before U.S. District Judge Roy K. Altman. Catoggio faces up to 5 years in federal prison.
U.S. Attorney Juan Antonio Gonzalez of the Southern District of Florida; Special Agent in Charge Cynthia A. Bruce, Department of Defense Inspector General’s Defense Criminal Investigative Service (DCIS), Southeast Field Office; Special Agent in Charge David Spilker, Veterans Affairs, Office of Inspector General (VA-OIG), Southeast Field Office; Special Agent in Charge George L. Piro of the FBI Miami; and Special Agent in Charge Justin C. Fielder, FDA Office of Criminal Investigations’ Miami Field Office, announced the guilty plea entered May 17.
The DCIS, VA-OIG, FBI, and the FDA, investigated the case.
Assistant U.S. Attorney Jon Juenger prosecuted the case. Assistant U.S. Attorney Daren Grove is handling the asset forfeiture component of 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 21-cr-60048.
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Former Phoenixville-Area School District Finance Director Sentenced to over One Year in Prison for Embezzling District FundsRead the Press Release
PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Christopher Gehris, 47, Phoenixville, PA, was sentenced today to one year and two months in prison and three years of supervised release, and was ordered to pay over $94,000 in restitution by United States District Court Judge Mitchell S. Goldberg for embezzling that amount from the Phoenixville Area School District (PASD).
In February 2022, the defendant pleaded guilty to embezzlement from a program receiving federal funding and admitted that he stole approximately $94,613 from the PASD. In 2006, the defendant was hired as a controller for the PASD’s Business Office and later promoted to business manager. In 2018, he was appointed to serve as the Director of Finance. From 2013 until 2019, Gehris cashed checks made payable to himself and to “cash,” received checks and direct deposits into his personal checking account for “start-up money” for student activities, stole cash from school programs, and obtained gift cards for personal expenditures – all in furtherance of his embezzlement scheme. He also admitted that he hid his thefts by altering receipts and falsifying reports submitted to the Board of School Directors.
“The defendant stole nearly $100,000 from a public school district, money, some of which was specifically allocated for student activities meant to enhance their educational experience,” said U.S. Attorney Williams. “Criminals that embezzle public money from schools are ripping off hundreds of students while also ripping off all taxpayers who fund them.”
The case was investigated by the Federal Bureau of Investigation and the Phoenixville Police Department and is being prosecuted by Assistant United States Attorney Terri A. Marinari.
Former Member of Springfield Latin Kings Chapter Pleads Guilty to Drug OffensesRead the Press Release
BOSTON – A former member of the Springfield Chapter of the Massachusetts Almighty Latin King and Queen Nation (Latin Kings) has pleaded guilty to drug charges.
Jonathan Casiano, a/k/a “King Legend,” 36, pleaded guilty on Wednesday, May 11, 2022, to two counts of possession with intent to distribute cocaine and fentanyl. U.S. Senior District Court Judge Rya W. Zobel scheduled sentencing for Aug. 17, 2022.
Casiano was identified as a member of the Latin Kings and a drug trafficker operating out of an apartment in Springfield. In July 2019, Casiano was arrested following a traffic stop in Springfield, during which he was found in possession of a privately made 9mm ghost gun with 15 rounds of 9mm ammunition, $9,880 in cash, 486 oxytocin pills and 810 plastic bags containing a total of 87 grams of fentanyl and 66 grams of cocaine.
Casiano was released from custody in December 2019 after posting cash bail.
In December 2019, a federal grand jury returned an indictment alleging racketeering conspiracy, drug conspiracy and firearms charges against 62 leaders, members and associates of the Latin Kings. Casiano was later arrested in February 2020. A subsequent search of Casiano’s person and residence recovered over 2,400 plastic bags bearing the “blue magic” and “chuckie” labels that contained a total of 68 grams of fentanyl, 140 grams of cocaine and other controlled substances. Casiano is the 58th defendant to plead guilty in the case.
The charge of possession with intent to distribute cocaine and fentanyl provides for a sentence of up to 20 years in prison, at least three years and 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.
The United States Attorney’s Office for the District of Massachusetts; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Commissioner Carol Mici of the Massachusetts Department of Correction; and New Bedford Police Chief Joseph C. Cordeiro made the announcement. Valuable assistance was also provided by the FBI North Shore Gang Task Force and the Bristol County and Suffolk County District Attorney’s Offices. Assistant U.S. Attorney Philip A. Mallard of the Organized Crime & Gang Unit is prosecuting the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Florida Pharmacy Owners Sentenced in Tennessee for Multimillion-Dollar Nationwide Telemedicine Pharmacy Fraud SchemeRead the Press Release
A federal judge in Greeneville, Tennessee, sentenced two Florida men for their roles in a multimillion-dollar health care fraud scheme.
Peter Bolos, 44, of Tampa, was convicted by a federal jury in December 2021 of conspiracy to commit health care fraud, 22 counts of mail fraud and introduction of a misbranded drug into interstate commerce. U.S. District Judge J. Ronnie Greer sentenced Bolos to 14 years in prison and ordered him to pay more than $24.6 million in restitution and $2.5 million in forfeiture. The court also sentenced Bolos’s co-defendant, Michael Palso, 48, of Tampa, to 33 months in prison and ordered him to pay more than $24.6 million in restitution. Palso previously pleaded guilty to his role in the conspiracy, as did 14 other defendants in related cases. The remaining defendants are scheduled to be sentenced later this week.
According to court documents and evidence presented at trial, Bolos, Palso and their co-conspirators, Andrew Assad, Scott Roix, Larry Smith, Mihir Taneja, Arun Kapoor and Maikel Bolos, as well as various other companies owned or controlled by some of these individuals, deceived pharmacy benefit managers (PBMs), such as Express Scripts and CVS Caremark, regarding tens of thousands of prescriptions. The PBMs processed and approved claims for prescription drugs on behalf of insurance companies. Bolos and his co-conspirators defrauded the PBMs into authorizing millions of dollars’ worth of claims that private insurers such as Blue Cross Blue Shield of Tennessee, and public insurers such as Medicaid and TRICARE, paid to pharmacies controlled by the co-conspirators.
“The significant sentences imposed by the court are a reflection of the gravity of the crimes that the defendants in this case committed,” said Deputy Assistant Attorney General Arun G. Rao, head of the Civil Division’s Consumer Protection Branch. “The department will continue to work with law enforcement partners to prosecute those who take advantage of telemedicine to perpetrate fraud schemes.”
“The scale of the prescription-drug fraud scheme orchestrated by these defendants and their conspirators was astonishing, and the Court’s prison sentences reflect the seriousness of their crimes,” said U.S. Attorney Francis M. Hamilton III for the Eastern District of Tennessee. “The financial harm caused by health care fraud hurts all Americans, and the United States Attorney’s Office for the Eastern District of Tennessee will continue to support the cooperation among its federal law enforcement partners that is necessary to bring criminal swindlers like these defendants to justice.”
“This sentencing is the result of a multi-agency investigation into a complex telemedicine pharmacy fraud scheme, requiring substantial investigative resources,” said Special Agent in Charge Joseph E. Carrico of the FBI’s Knoxville Field Office. “The FBI, with its law enforcement partners, will remain vigilant to assure that unscrupulous individuals who exploit our health care system are brought to justice.”
“Distributing misbranded prescription drugs in the U.S. marketplace places patients’ health at risk,” said Special Agent in Charge Justin C. Fielder of the FDA Office of Criminal Investigations (OCI) Miami Field Office. “We will continue to pursue and bring to justice those who put profits ahead of public health.”
“Bolos and his co-conspirators abandoned their responsibilities in the health care industry through an elaborate fraud scheme and manipulated the system without regard for patient need or medical necessity to line their pockets,” said Special Agent in Charge John Condon of Homeland Security Investigations (HSI) Tampa. “This significant sentence should serve as a warning to anyone who attempts to deceive the government and steal from taxpayers.”
“Providers who solicit beneficiaries’ personal information and use it to defraud federal health care programs not only undermine the integrity of those programs; they also divert valuable taxpayer dollars for self-serving purposes,” said Special Agent in Charge Tamala E. Miles of the Department of Health and Human Services, Office of Inspector General (HHS-OIG). “HHS-OIG is proud to work alongside our law enforcement partners to investigate and hold accountable perpetrators of federal health care fraud.”
“The U.S. Postal Service, Office of Inspector General, will continue to vigorously investigate those who commit frauds against federal benefit programs and the U.S. Postal Service,” said Special Agent in Charge Matthew Modafferi of the U.S. Postal Service, Office of Inspector General Northeast Area Field Office. “The sentencing in this case sends a clear message to pharmaceutical companies that tactics like these will not be tolerated. The U.S. Postal Service, Office of Inspector General would like to thank our law enforcement partners and the Department of Justice for their dedication and efforts in this investigation.”
Court documents and evidence at trial established that Bolos, Assad and Palso owned and operated Synergy Pharmacy in Palm Harbor, Florida. Under their direction, Synergy employed Scott Roix, a Florida telemarketer operating under the name HealthRight, to generate prescriptions for Synergy and the other pharmacies involved in the scheme. The prescriptions were typically for drugs such as pain creams, scar creams and vitamins. To obtain the prescriptions, Roix used HealthRight’s telemarketing platform as a telemedicine service, cold-calling consumers and deceiving them into agreeing to accept the drugs and to provide their personal insurance information. HealthRight then paid doctors to authorize the prescriptions through its telemedicine platform, even though the doctors never communicated directly with the patients and relied solely on the telemarketers’ screening process as the basis for their authorizations. Because this faulty and fraudulent process made the prescriptions invalid, the drugs were misbranded under the Food, Drug and Cosmetic Act. Synergy and the other pharmacies nonetheless dispensed the drugs to consumers as part of the scheme, so that Bolos could submit fraudulent reimbursement claims.
Court documents and evidence at trial established that during the conspiracy, which lasted from May 2015 through April 2018, Bolos and Palso, along with co-defendant Andrew Assad, paid Roix millions of dollars to buy at least 60,000 invalid prescriptions generated by HealthRight. Bolos selected specific medications for the prescriptions that he could submit for profitable reimbursements at inflated prices. In addition, Bolos, Palso, and Assad used illegal means to hide his activity from the PBMs so that they could remain undetected.
The sentencings for the remaining defendants — all of whom pleaded guilty prior to trial — are scheduled to occur later this week. Larry Smith, Alpha-Omega Pharmacy, Germaine Pharmacy, Zoetic Pharmacy, Tanith Enterprises LLC, ULD Wholesale Group and Taneja will be sentenced on May 17. Kapoor, Sterling Knight Pharmaceuticals and Maikel Bolos will be sentenced on May 18. Assad, Roix and HealthRight LLC will be sentenced on May 19. All of the sentencings will occur before Judge Greer in the U.S. District Court for the Eastern District of Tennessee at Greeneville.
The trial verdict and plea agreements resulted from a multi-year investigation conducted by the HHS-OIG (Nashville); FDA-OCI (Nashville); U.S. Postal Service, Office of Inspector General (Buffalo); FBI (Knoxville and Johnson City, Tennessee); OPM-OIG (Atlanta); and HSI (Tampa). The U.S. Marshals Service also assisted in the investigation and the forfeiture of assets.
Assistant U.S. Attorney Mac Heavener of the U.S. Attorney’s Office for the Eastern District of Tennessee and Senior Trial Attorney David Gunn of the Civil Division’s Consumer Protection Branch in Washington are prosecuting the case. They were assisted by Barbra Pemberton, Bryan Brandenburg and April Denard from the U.S. Attorney’s Office.
Florida Pharmacy Owners Sentenced in Tennessee for Multimillion-Dollar Nationwide Telemedicine Pharmacy Fraud SchemeRead the Press Release
GREENEVILLE, Tenn. A federal judge in Greeneville, Tennessee, sentenced two Florida men for their roles in a multimillion-dollar health care fraud scheme.
Peter Bolos, 44, of Tampa, was convicted by a federal jury in December 2021 of conspiracy to commit health care fraud, 22 counts of mail fraud and introduction of a misbranded drug into interstate commerce. U.S. District Judge J. Ronnie Greer sentenced Bolos to 14 years in prison and ordered him to pay more than $24.6 million in restitution and $2.5 million in forfeiture. The court also sentenced Bolos’s co-defendant, Michael Palso, 48, of Tampa, to 33 months in prison and ordered him to pay more than $24.6 million in restitution. Palso previously pleaded guilty to his role in the conspiracy, as did 14 other defendants in related cases. The remaining defendants are scheduled to be sentenced later this week.
According to court documents and evidence presented at trial, Bolos, Palso and their co-conspirators, Andrew Assad, Scott Roix, Larry Smith, Mihir Taneja, Arun Kapoor, and Maikel Bolos, as well as various other companies owned or controlled by some of these individuals, deceived pharmacy benefit managers (PBMs), such as Express Scripts and CVS Caremark, regarding tens of thousands of prescriptions. The PBMs processed and approved claims for prescription drugs on behalf of insurance companies. Bolos and his co-conspirators defrauded the PBMs into authorizing millions of dollars’ worth of claims that private insurers such as Blue Cross Blue Shield of Tennessee, and public insurers such as Medicaid and TRICARE, paid to pharmacies controlled by the co-conspirators.
“The significant sentences imposed by the court are a reflection of the gravity of the crimes that the defendants in this case committed,” said Deputy Assistant Attorney General Arun G. Rao, head of the Civil Division’s Consumer Protection Branch. “The department will continue to work with law enforcement partners to prosecute those who take advantage of telemedicine to perpetrate fraud schemes.”
“The scale of the prescription-drug fraud scheme orchestrated by these defendants and their conspirators was astonishing, and the Court’s prison sentences reflect the seriousness of their crimes,” said U.S. Attorney Francis M. Hamilton III for the Eastern District of Tennessee. “The financial harm caused by health care fraud hurts all Americans, and the United States Attorney’s Office for the Eastern District of Tennessee will continue to support the cooperation among its federal law enforcement partners that is necessary to bring criminal swindlers like these defendants to justice.”
“This sentencing is the result of a multi-agency investigation into a complex telemedicine pharmacy fraud scheme, requiring substantial investigative resources,” said Special Agent in Charge Joseph E. Carrico of the FBI’s Knoxville Field Office. “The FBI, with its law enforcement partners, will remain vigilant to assure that unscrupulous individuals who exploit our health care system are brought to justice.”
“Distributing misbranded prescription drugs in the U.S. marketplace places patients’ health at risk,” said Special Agent in Charge Justin C. Fielder of the FDA Office of Criminal Investigations (OCI) Miami Field Office. “We will continue to pursue and bring to justice those who put profits ahead of public health.”
“Bolos and his co-conspirators abandoned their responsibilities in the health care industry through an elaborate fraud scheme and manipulated the system without regard for patient need or medical necessity to line their pockets,” said Special Agent in Charge John Condon of Homeland Security Investigations (HSI) Tampa. “This significant sentence should serve as a warning to anyone who attempts to deceive the government and steal from taxpayers.”
“Providers who solicit beneficiaries’ personal information and use it to defraud federal health care programs not only undermine the integrity of those programs; they also divert valuable taxpayer dollars for self-serving purposes,” said Special Agent in Charge Tamala E. Miles of the Department of Health and Human Services, Office of Inspector General (HHS-OIG). “HHS-OIG is proud to work alongside our law enforcement partners to investigate and hold accountable perpetrators of federal health care fraud.”
“The U.S. Postal Service, Office of Inspector General, will continue to vigorously investigate those who commit frauds against federal benefit programs and the U.S. Postal Service,” said Special Agent in Charge Matthew Modafferi of the U.S. Postal Service, Office of Inspector General Northeast Area Field Office. “The sentencing in this case sends a clear message to pharmaceutical companies that tactics like these will not be tolerated. The U.S. Postal Service, Office of Inspector General would like to thank our law enforcement partners and the Department of Justice for their dedication and efforts in this investigation.”
Court documents and evidence at trial established that Bolos, Assad and Palso owned and operated Synergy Pharmacy in Palm Harbor, Florida. Under their direction, Synergy employed Scott Roix, a Florida telemarketer operating under the name HealthRight, to generate prescriptions for Synergy and the other pharmacies involved in the scheme. The Prescriptions were typically for drugs such as pain creams, scar creams and vitamins. To obtain the prescriptions, Roix used HeathRight’s telemarketing platform as a telemedicine service, cold-calling consumers and deceiving them into agreeing to accept the drugs and to provide their personal insurance information. HeathRight then paid doctors to authorize the prescriptions through its telemedicine platform, even though the doctors never communicated directly with the patients and relied solely on the telemarketers’ screening process as the basis for their authorizations. Because this faulty and fraudulent process made the prescriptions invalid, the drugs were misbranded under the Food, Drug and Cosmetic Act. Synergy and the other pharmacies nonetheless dispensed the drugs to consumers as part of the scheme, so that Bolos could submit fraudulent reimbursement claims.
Court documents and evidence at trial established that during the conspiracy, which lasted from May 2015 through April 2018, Bolos and Palso, along with co-defendant Andrew Assad, paid Roix millions of dollars to buy at least 60,000 invalid prescriptions generated by HealthRight. Bolos selected specific medications for the prescriptions that he could submit for profitable reimbursements at inflated prices. In addition, Bolos, Palso, and Assad used illegal means to hide his activity from the PBMs so that they could remain undetected.
The sentencing for the remaining defendants – all of whom pleaded guilty prior to trial – are scheduled to occur later this week. Larry Smith, Alpha-Omega Pharmacy, Germaine Pharmacy, Zoetic Pharmacy, Tanith Enterprises LLC, ULD Wholesale Group, and Taneja will be sentenced on May 17. Kapoor, Sterling Knight Pharmaceuticals and Maikel Bolos will be sentenced on May 18. Assad, Roix and HeathRight LLC will be sentenced on May 19. All of the sentencings will occur before Judge Greer in the U.S. District Court for the Eastern District of Tennessee at Greeneville.
The trial verdict and plea agreements resulted from a multi-year investigation conducted by the HHS-OIG (Nashville); FDA-OCI (Nashville); U.S. Postal Service, Office of Inspector General (Buffalo); FBI (Knoxville and Johnson City, Tennessee); OPM-OIG (Atlanta); and HSI (Tampa). The U.S. Marshals Service also assisted in the investigation and the forfeiture of assets.
Assistant U.S. Attorney Mac Heavener of the U.S. Attorney’s Office for the Eastern District of Tennessee and Senior Trial Attorney David Gunn of the Civil Division’s Consumer Protection Branch in Washington are prosecuting the case. They were assisted by Barbra Pemberton, Bryan Brandenburg, and April Denard from the U.S. Attorney’s Office.
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Florida Man Sentenced to 120 Months in Prison for Role in $50 Million Health Care Fraud and Kickback SchemeRead the Press Release
NEWARK, N.J. – A Florida man was sentenced today to 120 months in prison for his role in a health care fraud and kickback scheme, U.S. Attorney Philip R. Sellinger announced.
Pat Truglia, 54, of Parkland, Florida, previously pleaded guilty before U.S. District Judge Kevin McNulty in Newark federal court to conspiracy to commit health care fraud. Judge McNulty imposed the sentence today in Newark federal court. Two co-defendants, Nicholas Defonte, 73, and Christopher Cirri, 64, both of Toms River, New Jersey, previously pleaded guilty to the same conspiracy and are awaiting sentencing.
According to documents filed in these cases and statements made in court:
Each defendant played a role in defrauding health care benefit programs by offering, paying, soliciting, and receiving kickbacks and bribes in exchange for completed doctors’ orders for durable medical equipment, namely orthotic braces (DME orders): • Truglia and his conspirators had financial interests in multiple DME companies. The DME companies paid kickbacks to suppliers of DME orders, including Cirri, Defonte, and Truglia, in exchange for DME orders, which the DME companies subsequently fraudulently billed to Medicare, TRICARE, CHAMPVA, and other health care benefit programs. Truglia and his conspirators concealed their ownership of the DME companies by using straw owners who were falsely reported to Medicare as the owners of the companies.
• Truglia, Cirri, Defonte, and their conspirators owned and operated multiple call centers through which they obtained DME orders for beneficiaries of Medicare and other federal health care programs. The call centers paid illegal kickbacks and bribes to telemedicine companies to obtain DME orders for these beneficiaries. The telemedicine companies then paid physicians to write medically unnecessary DME orders. The DME orders were provided to DME supply companies owned by Truglia and others in exchange for bribes. The DME supply companies in turn provided the braces to beneficiaries and fraudulently billed the health care programs.
• Cirri, Defonte, and their conspirators had business relationships with call centers through which they obtained prescriptions for compounded medications and other medical products reimbursable by federal and private health care benefit programs. Cirri and Defonte provided these prescriptions for compounded medical prescriptions and other medical products in exchange for kickbacks and bribes from companies that fraudulently billed them to health care programs.
The defendants caused losses to Medicare, TRICARE, and CHAMPVA of approximately $50 million.
In addition to the prison term, Judge McNulty sentenced Truglia to three years of supervised release and ordered restitution of $33,777,799.67 and forfeiture of $9,477,925.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Acting Special Agent in Charge Michael Messenger in Newark; the Department of Health and Human Services-Office of Inspector General, under the direction of Special Agent in Charge Scott J. Lampert; the U.S. Department of Defense, Office of the Inspector General, Defense Criminal Investigative Service, under the direction of Special Agent in Charge Patrick J. Hegarty; and the U.S. Department of Veterans Affairs, Office of Inspector General, under the direction of Special Agent in Charge Christopher F. Algieri, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Sean M. Sherman of the Opioid Abuse Prevention & Enforcement and Health Care Fraud Units in Newark, Senior Trial Counsel Barbara Ward of the Asset Recovery and Money Laundering Unit in Newark, and Trial Attorney Darren Halverson of the Criminal Division’s Fraud Section.
Defense counsel:
Truglia: Bernard M. Cassidy Esq., Fort Lauderdale, Florida
Cirri: Timothy Anderson Esq., Red Bank, New Jersey
Defonte: Robert Weir Esq., Little Silver, New JerseyFerguson sex offender sentenced to 10 years for possession of child pornographyRead the Press Release
ST. LOUIS – United States District Court Judge Stephen R. Clark on Tuesday sentenced registered sex offender Jimar Jefferson, 26, to 10 years in prison on a charge of possession of child pornography. After his release from prison, Jefferson will be on supervised release for life.
According to the plea agreement, on March 29, 2021, St. Louis County police executed a search warrant at Jefferson’s home on Patricia Avenue in Ferguson that was triggered by nine cyber tips to the National Center for Missing and Exploited Children (NCMEC). Google had notified NCMEC that someone had uploaded more than 200 videos containing child pornography.
Jefferson admitted to police having used the email linked to the uploads. He admitted receiving child pornography on his cell phone and admitted that the files had been backed up to his Gmail account. Investigators later discovered 46 images and one video containing child pornography on one of Jefferson’s cell phones. His email account contained 1,853 videos and 138 image files containing child pornography, including images featuring bestiality or child bondage.
Jefferson was on probation at the time of the offense. In 2017, he pleaded guilty in St. Louis County Circuit Court to two felony counts of second-degree statutory sodomy in a case involving a 15-year-old male victim. He received 30 days of “shock” time and a suspended execution of sentence (SES) of five years in prison. He was also required to register as a sex offender.
Judge Clark ordered the federal prison sentence to run consecutive to any sentence Jefferson receives for violating his probation in the state case. He was also ordered to pay $11,000 in restitution to victims.
The case was investigated by the St. Louis County Police Department and the Federal Bureau of Investigation. Assistant United States Attorney Colleen Lang prosecuted 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. 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.
Ferguson man shot while searching for his drugs sentenced to over 13 years in prisonRead the Press Release
ST. LOUIS – United States District Court Judge Stephen R. Clark on Wednesday sentenced a Ferguson man who was shot while trying to find methamphetamine that had been seized by authorities to 165 months in prison.
Cedric D. Baker, 49, flew to Houston, Texas on July 30, 2020 and bought over 10 kilograms of methamphetamine that had been pressed into pills, then shipped them via Federal Express to his grandmother’s address in the 2300 block of McLaran Avenue in St. Louis, his plea agreement says. Baker’s grandmother did not know about the contents of the package.
The package appeared suspicious and the drugs were discovered and seized. Baker went by the house multiple times to try and find his drugs. On August 12, he went to the address and waved a 9mm pistol when his cousin and his cousin’s friend denied knowledge of the package. The cousin’s friend, who was armed, pulled his own pistol and shot Baker four times, according to court documents.
Baker pleaded guilty in February to one count of possession with intent to distribute methamphetamine and one count of being a felon in possession of a firearm. Baker has prior drug and robbery convictions.
The case was investigated by the St. Louis County Police Department and the Drug Enforcement Administration. Assistant United States Attorney Paul D’Agrosa is prosecuting the case.
Felon sent to prison for firearm charge while on bondRead the Press Release
GALVESTON – A 63-year-old Blessing resident has been ordered to prison following his conviction of being a felon in possession of a firearm, announced U.S. Attorney Jennifer B. Lowery.
Michael Gene Richardson pleaded guilty Oct. 13, 2021.
Today, U.S. District Judge Jeffery V. Brown ordered Richardson to serve 90 months in federal prison to be immediately followed by three years of supervised release. At the hearing, the court noted the large amount of firearms Richardson possessed.
Richardson is a convicted felon and was arrested in 2018 following a drug investigation. Following a search of his residence, authorities found more than 50 firearms, ammunition and suspected improvised bombs.
As a convicted felon, he is prohibited per federal law of possessing firearms or ammunition. As such, he was charged again in 2019. Prior to trial and while on bond, law enforcement found in possession of an additional firearm and ammunition.
The FBI, Bureau of Alcohol, Tobacco, Firearms and Explosives and the Matagorda County Sherriff’s Office conducted the investigation. Assistant U.S. Attorneys Steven Schammel and Richard Bennett prosecuted the case.
Federal Trial Jury Convicts Man for Domestic Violence Against His Intimate Partner Aboard a Cruise ShipRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that GERONIMO FLORES, age 30, from Abilene, Texas, was found guilty today after a three-day jury trial before United States District Judge Wendy B. Vitter. He was found guilty of one count of interstate domestic violence assault by strangulation and one count of interstate domestic violence.
On December 17, 2021, a federal grand jury returned an indictment charging GERONIMO FLORES with domestic violence by strangulation and suffocation in violation of Title 18, United States Code, Sections 113(a)(8) and 7(8) and interstate domestic violence in violation of Title 18, United States Code, Sections 2261(a)(1), 2261(b)(5), and 7(8).
GERONIMO FLORES intentionally assaulted his intimate and dating partner while aboard the Carnival Glory cruise ship on December 2, 2021. The Glory was within the special maritime and territorial jurisdiction of the United States during a voyage that departed from and returned to the Port of New Orleans in the Eastern District of Louisiana. FLORES specifically assaulted the victim by strangulation, as well as striking her in the head with his hand.
For domestic violence by strangulation, GERONIMO FLORES faces a maximum term of ten years imprisonment, up to a $250,000 fine, up to three years of supervised release, and a mandatory $100 special assessment fee. For domestic violence by striking the victim, he faces a maximum term of five years imprisonment, up to a $250,000 fine, up to three years of supervised release, and a mandatory $100 special assessment fee. Sentencing is set before United States District Judge Wendy B. Vitter on August 18. 2022.
U.S. Attorney Evans praised the work of the Federal Bureau of Investigation in investigating this matter. Assistant United States Attorneys Charles D. Strauss and Christopher D. Usher II are in charge of the prosecution.
Federal Jury Convicts Two New York Men for Operating Mass Mailing Fraud Scheme Targeting Elderly and Vulnerable VictimsRead the Press Release
A federal jury in Central Islip, New York, convicted Long Island residents Sean Novis, 51, and Gary Denkberg, 58, of conspiracy to commit mail fraud, mail fraud, wire fraud, fraudulent use of fictitious names and aiding and abetting other mail fraud schemes.
In August 2020, Novis and Denkberg were charged with operating mass mailing fraud schemes that tricked thousands of victims, many of whom were elderly, into providing the defendants with money by falsely promising prizes. Evidence presented at trial showed that, from January 2003 to September 2016, Novis and Denkberg mailed millions of prize notices that falsely represented that the victims had been specifically chosen to receive a large cash prize and would receive the prize if they paid a fee. Victims who paid the requested fee, however, did not receive the promised cash prize. Although the notices appeared to be personalized correspondence, they were merely mass-produced, boilerplate documents that were bulk mailed to recipients whose names and addresses were on mailing lists.
“The Department of Justice’s Consumer Protection Branch is committed to pursuing criminals who defraud the elderly,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “I thank the Postal Inspection Service for conducting a thorough and successful investigation.”
“The two defendants targeted and defrauded elderly Americans, the most vulnerable of populations, through a mass-mailing scheme,” said Inspector in Charge Eric Shen of the U.S. Postal Inspection Service’s Criminal Investigations Group. “The U.S. Postal Inspection Service is deeply committed to protecting the elderly from fraudulent schemes. These convictions underscore the Postal Inspection Service’s and the Department of Justice’s dedication and determination to keep susceptible communities safe from financial exploitation and bring criminals to justice.”
According to trial evidence, Novis and Denkberg continued to operate their fraudulent mass-mailing scheme in violation of U.S. Postal Service cease-and-desist agreements and consent orders that they had agreed to in 2012. The agreements and orders had permanently barred the defendants from mailing fraudulent prize notices.
Novis and Denkberg will be scheduled for sentencing later this year, in Central Islip before U.S. District Judge Joan M. Azrack of the Eastern District of New York. The defendants face a maximum penalty of 20 years in prison. The court will determine any sentences after considering the U.S. Sentencing Guidelines and other statutory factors.
The trial resulted from a multi-year investigation conducted by the U.S. Postal Inspection Service. The case is being prosecuted by trial attorneys Charles Dunn, J. Matt Williams, and Carolyn Rice of the Civil Division’s Consumer Protection Branch.
The department’s extensive and broad-based efforts to combat elder fraud seeks to halt the widespread losses seniors suffer from fraud schemes. The best method for prevention, however, is by sharing information about the various types of elder fraud schemes with relatives, friends, neighbors and other seniors who can use that information to protect themselves.
If you or someone you know is age 60 or older and has been a victim of financial fraud, help is available at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This Department of Justice hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud, and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is staffed seven days a week from 6:00 a.m. to 11:00 p.m. ET. English, Spanish and other languages are available.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at www.justice.gov/civil/consumer-protection-branch. Information about the Department of Justice’s Elder Fraud Initiative is available at www.justice.gov/elderjustice.
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The case name is captioned United States of America v. Sean Novis et al., No. 2:20-cr-00335 (E.D.N.Y.).
Federal Jury Convicts Nevada Man of Impeding and Threatening Federal Officers at the Port of EntryRead the Press Release
TUCSON, Ariz. – On Monday, John Milton Lee, 62, of Las Vegas, Nevada, was found guilty by a federal jury of smuggling goods from the United States and impeding and threatening a federal officer. Lee is scheduled for sentencing on August 3, 2022, before United States District Judge James A. Soto.
According to the evidence presented at trial, Lee traveled from Arizona to Mexico on November 1, 2019, but Mexican authorities returned him to the port almost immediately. When Lee returned to the Lukeville Port of Entry, he refused to provide identification. At secondary inspection, Lee would not exit his vehicle and refused inspection. Instead, Lee told U.S. Customs and Border Protection (CBP) officers that they could not touch him or anything in his vehicle. Lee then reached into his jacket and threatened the officers that he “didn’t want it to go there.” Although Lee never pulled out a gun, officers could see the handle of the firearm in his jacket. Over the next hour, Lee engaged in an armed standoff with five CBP officers. The officers eventually convinced Lee to exit his vehicle, but he still refused to surrender. After continued unsuccessful negotiation, one of the officers tased Lee. Officers confirmed then that Lee had been holding a loaded handgun with a round in the chamber, the safety off, and the hammer cocked. When officers searched Lee, they also found three loaded 30-round rifle magazines.
In a subsequent search of Lee's vehicle, officers discovered that an AR-type rifle had also been within his reach during the standoff. Officers seized three additional long arms, including an HK 91 and a Tavor (Israeli assault rifle), three additional handguns, nearly 2,000 rounds of ammunition, and 17 loaded magazines. All the firearms were loaded with a round in the chamber. In a post-Miranda statement, Lee admitted that he had planned to take the firearms and ammunition to Guatemala.
Homeland Security Investigations, Sells, conducted the investigation in this case, with the assistance of CBP. Assistant U.S. Attorneys Angela Martinez and Serra M. Tsethlikai, District of Arizona, Tucson, handled the prosecution.
CASE NUMBER: CR-19-2946-TUC-JAS
RELEASE NUMBER: 2022-074_Lee# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Federal Inmate Pleads Guilty to Obstructing Justice in Coconspirator’s CaseRead the Press Release
Tampa, FL – United States Attorney Roger B. Handberg announces that Manuel Angel Burgos (39, Brooksville) today pleaded guilty to obstruction of justice and conspiracy to commit an offense against the United States. Burgos faces a maximum penalty of 10 years in federal prison. A sentencing date has not yet been set.
According to court filings, Burgos and Javier Monserrate Vazquez conspired to obtain kilograms of cocaine in packages sent from Puerto Rico to Zephyrhills. Text messages between the two corroborated their involvement, and Burgos made a post-Miranda statement to law enforcement implicating Monserrate Vazquez and another coconspirator. Burgos pleaded guilty to the conspiracy and was sentenced to five years in federal prison.
After Burgos was imprisoned, Monserrate Vazquez tried to corruptly obstruct his pending federal case by getting witnesses to sign affidavits exonerating him. Monserrate Vazquez and others tried to influence witnesses through payments and, in the case of one witness, relocating him to avoid a subpoena. While in federal prison, Burgos signed an affidavit falsely claiming that Monserrate Vazquez had nothing to do with drug trafficking and that certain text messages between the two about packages of cocaine were innocent in nature. Burgos knew these statements were false when he signed the affidavit; Burgos received payments to his prison inmate account from a family member of Monserrate Vazquez’s prior to signing the affidavit.
The United States is also seeking the forfeiture of $1,390, which represents the proceeds obtained by the defendant as a result of the offenses.
This operation is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation conducted by the Drug Enforcement Administration, with assistance from the United States Postal Inspection Service and the Pasco Sheriff’s Office. 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. It is being prosecuted by Assistant United States Attorney Dan Baeza.
Federal Grand Jury Indicts Louisville Man on Additional Carjacking ChargesRead the Press Release
Louisville, KY – A federal grand jury in Louisville, returned a superseding indictment today charging a local man with additional carjacking and firearms charges.
According to court documents, on October 26, 2021, Eder Mayorga-Sanchez, 19, carjacked a vehicle in Louisville, and during the carjacking, shot and caused serious bodily injury to a minor, C.A. On October 30, 2021, and November 4, 2021, he committed three additional carjackings while brandishing a firearm. Thereafter, on November 8, 2021, he robbed The Home Depot on Preston Highway and a Valero convenience store on Terry Road, while brandishing a firearm. He is also charged with Assault 1st in Warren County, Kentucky, Circuit Court for a shooting that occurred there during the same time period.
Mayorga-Sanchez will be arraigned in the U.S. District Court for the Western District of Kentucky on May 19, 2022. Mayorga-Sanchez was previously indicted on one count of carjacking resulting in serious bodily injury, two counts of interference with commerce by robbery, one count of discharge of a firearm in furtherance of a crime of violence, and two counts of brandishing a firearm in furtherance of a crime of violence. As a result of the superseding indictment, he now faces three additional carjacking counts and three additional counts of brandishing a firearm in furtherance of a crime of violence.
If convicted of carjacking resulting in serious bodily injury, Mayorga-Sanchez faces a maximum penalty of 25 years in prison. If convicted of carjacking, he faces a maximum penalty of 15 years in prison. If convicted of interference with commerce by robbery, he faces a maximum penalty of 20 years in prison. If convicted of discharge of a firearm in furtherance of a crime of violence, he faces a mandatory minimum penalty of 10 years in prison, to run consecutively with all other penalties. If convicted of brandishing a firearm in furtherance of a crime of violence, he faces a mandatory minimum penalty of 7 years in prison for each count of conviction, to run consecutively with all other penalties. There is no parole in the federal system. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The superseding indictment was announced by Michael A. Bennett, United States Attorney for the Western District of Kentucky.
The charges were the result of a joint federal and local initiative to investigate and prosecute carjackings in Louisville. The initiative includes the United States Attorney’s Office, the Jefferson County Office of the Commonwealth’s Attorney, the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Louisville Metropolitan Police Department, and Homeland Security Investigations. The Bowling Green Police Department also assisted in this matter.
Assistant U.S. Attorney Ann Marie Blaylock is prosecuting the case.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Elmore County Man Sentenced to 17.5 Years for Sexual Exploitation of a Child and Transferring Obscene Material to a MinorRead the Press Release
Montgomery, Alabama – On Tuesday, May 17, 2022, Jesse Lemar McCormick, a 24-year-old man from Wetumpka, Alabama, was sentenced to 210 months in prison for sexual exploitation of a child and transferring obscene material to a minor, announced United States Attorney Sandra J. Stewart. In addition to his 17.5-year prison sentence, McCormick was ordered to serve 10 years of supervised release and must register as a sex offender. There is no parole in the federal system.
According to McCormick’s plea agreement and other court records, McCormick was involved with several youth groups and organizations in Autauga and Elmore counties. In April 2020, an investigation began when detectives from the Prattville Police Department received a report concerning inappropriate communications between McCormick and a minor. The victim reported that on April 4, 2020, McCormick requested explicit images of the victim’s genitals in a “Snapchat” conversation. Further investigation quickly confirmed this communication, along with many others, and additional minor victims were identified.
During McCormick’s July 29, 2021, plea hearing, he specifically admitted that on at least five occasions, between March and April 2020, he engaged in electronic communications requesting obscene images or videos from minor victims. During the same period, McCormick also sent images and videos of his own genital area to minors, along with videos of McCormick engaging in sexual acts. Victims of the crimes ranged in age from 12 to 15 years old. McCormick pleaded guilty to five counts sexual exploitation of a child, and three counts of transferring obscene material to a minor.
The U.S. Department of Homeland Security Investigations (HSI), the Prattville Police Department, the Elmore County Sheriff’s Office, the Montgomery County Sheriff’s Office, and the Wetumpka Police Department investigated this case. Assistant United States Attorney J. Patrick Lamb prosecuted the case.
El Departamento de Justicia resuelve una acusación de discriminación relacionada con la inmigración contra una empresa de contratación en IndianaRead the Press Release
El Departamento de Justicia anunció hoy que ha llegado a un acuerdo conciliatorio con JMJ Talent Solutions, Inc. («JMJ Talent Soluctions»), una compañía de contratación con cuatro sucursales por el estado de Indiana. El acuerdo resuelve una acusación de que JMJ Talent Solutions discriminó a tres no ciudadanos de los EE. UU. por motivos de su estatus de ciudadanía al pedirles que presentaran documentos específicos para demostrar su permiso para trabajar en los Estados Unidos en vez de permitirles escoger los documentos válidos que querían presentar.
«Los empleadores no pueden discriminar a trabajadores a la hora de verificar su permiso para trabajar en los EE. UU., como, por ejemplo, rechazar su documentación válida, solicitar documentación específica o pedir más documentos de los que sean necesarios, con base en su estatus de ciudadanía o nacionalidad de origen. Todo trabajador tiene derecho a elegir los documentos válidos que quiere presentar para tal proceso», afirmó Kristen Clarke, la Fiscal General Auxiliar de la División de Derechos Civiles del Departamento de Justicia. «El Departamento de Justicia seguirá luchando por quitar barreras ilícitas en el empleo».
Con base en su investigación, el Departamento determinó que, después de rechazar la documentación válida que una no ciudadana de los EE. UU. había presentado para demostrar que tiene permiso para trabajar en los Estados Unidos, JMJ Talent Solutions pidió que ella presentara documentos migratorios específicos, incluyendo una Tarjeta de Residente Permanente con fecha en vigor. Asimismo, el Departamento determinó que la compañía de contratación pidió al menos a dos residentes permanentes legales adicionales que presentaran sus Tarjetas de Residente Permanente para demostrar su permiso para trabajar.
La Ley de Inmigración y Nacionalidad (INA, por sus siglas en inglés) prohíbe que los empleadores rechacen documentación que razonablemente parece ser genuina y pertenecer a la persona que la está presentando, que soliciten que los trabajadores presenten documentación específica o que pidan más documentación de la que por ley se requiere para probar que tienen permiso para trabajar. El empleador que lo haga podría estar vulnerando la disposición antidiscriminatoria de la INA.
Conforme a los términos del acuerdo conciliatorio, JMJ Talent Solutions pagará una sanción civil, publicará notificaciones para informar a los trabajadores de sus derechos en virtud de la disposición antidiscriminatoria de la INA, capacitará a su personal y se someterá a la supervisión del departamento durante tres años.
La Sección de Derechos de Inmigrantes y Empleados de la División de Derechos Civiles es responsable de hacer cumplir la disposición antidiscriminatoria de la INA. La ley prohíbe la discriminación por motivos de estatus de ciudadanía o nacionalidad de origen en los procesos de contratación, despido o reclutamiento o recomendación por comisión; prácticas documentales injustas y represalias e intimidación.
Para aprender más sobre la labor de la IER y cómo conseguir ayuda, vea este vídeo corto. Hay información disponible en el sitio web de la IER sobre cómo los empleadores pueden evitar la discriminación a la hora de verificar el permiso de un empleado para trabajar. Aquellos aspirantes o empleados que creen haber sido discriminados por motivos de su estatus de ciudadanía o nacionalidad de origen en los procesos de contratación, despido, reclutamiento o verificación de la elegibilidad para trabajar (Formulario I-9 e E-Verify) o sujetos a represalias pueden presentar una denuncia. El público también puede llamar a la línea directa de la IER para trabajadores al 1-800-255-7688 (1-800-237-2515, TTY para personas con discapacidades auditivas); llamar a la línea directa de la IER para empleadores al 1-800-255-8155 (1-800-237-2515, TTY para personas con discapacidades auditivas); enviar un correo electrónico a IER@usdoj.gov; inscribirse a un seminario en línea gratuito; o visitar los sitios web de la IER en inglés o español. Para recibir las últimas noticias de la IER, inscríbase a GovDelivery.
El Departamento de Justicia llega a un acuerdo con un reclutador de servicios de informática que resuelve unas acusaciones de discriminación relacionada con la inmigraciónRead the Press Release
El Departamento de Justicia anunció hoy que ha llegado un acuerdo conciliatorio con Amtex Systems Inc., una compañía de contratación y reclutamiento en el ámbito de la informática con sede en New York. El acuerdo resuelve unas acusaciones de que Amtex había discriminado a trabajadores en este país con base en su estatus migratorio o de ciudadanía durante varias fases del proceso de reclutamiento porque sus clientes preferían a trabajadores con visas laborales temporales.
«Las agencias de contratación en el ámbito de la informática no pueden excluir, de manera ilegal, a solicitantes o imponer cargas adicionales debido al estatus migratorio o de ciudadanía de alguien», declaró Kristen Clarke, la Fiscal General Auxiliar de la División de Derechos Civiles del Departamento de Justicia. «La División de Derechos Civiles está comprometida a hacer cumplir la ley para garantizar que los solicitantes de trabajo, incluyendo a trabajadores en este país, queden protegidos de la discriminación ilícita».
La investigación del Departamento comenzó después de que un ciudadano de los EE. UU. presentó una demanda de discriminación contra Amtex ante la Sección de Derechos de Inmigrantes y Empleados (IER, por sus siglas en inglés) de la División de Derechos Civiles. Con base en su investigación, el Departamento concluyó que Amtex usó una compañía que opera en India para identificar e investigar a solicitantes con base en la preferencia de los clientes por cierto estatus migratorio o de ciudadanía. La investigación determinó que los reclutadores enviaron anuncios de trabajo que contenían las preferencias ilícitas de sus clientes en cuanto al estatus migratorio o de ciudadanía de los trabajadores, y también implementaron esas preferencias a la hora de considerar a solicitantes. Las prácticas de los reclutadores perjudicaron a los trabajadores en este país al disuadirles de solicitar un puesto y al no considerar a aquellos que sí lo solicitaron. Por ejemplo, la investigación reveló que Amtex no consideró al menos a tres trabajadores en este país cuando estos solicitaron un puesto como respuesta a un anuncio que indicaba una preferencia por trabajadores con visas laborales temporales. Más aún, el Departamento concluyó que reclutadores para Amtex discriminaron a solicitantes no ciudadanos de los EE. UU. al requerir, de manera habitual, que presentaran un documento migratorio para poder proceder con el proceso de reclutamiento.
La disposición antidiscriminatoria de la ley de Inmigración y Nacionalidad (INA, por sus siglas en inglés) protege a ciudadanos estadounidenses, nacionales no ciudadanos de los EE. UU., refugiados, asilados y residentes permanentes legales recientes de la discriminación en el empleo por motivos de su estatus migratorio o de ciudadanía. Los reclutadores son responsables de vulneraciones de la INA si implementan las preferencias discriminatorias ilegales de un cliente. Conforme a la INA, los empleadores y reclutadores solo pueden restringir puestos con base en la ciudadanía o el estatus migratorio si así se lo requiere una ley, un reglamento, una orden ejecutiva o un contrato gubernamental. Es más, ya que las leyes federales solamente permiten que empleadores comprueben el permiso de una persona para trabajar después de que ya haya sido contratada, los empleadores y reclutadores no deben verificar el permiso para trabajar de solicitantes de trabajo.
Conforme los términos del acuerdo conciliatorio, Amtex pagará una sanción civil que asciende a más de $15,000 a los Estados Unidos; revisará sus políticas y procedimientos; capacitará a los empleados y agentes relevantes acerca de la disposición antidiscriminatoria de la INA y se someterá a la supervisión durante un período de tres años con el fin de garantizar su cumplimiento.
La IER es responsable de hacer cumplir la disposición antidiscriminatoria de la INA. Entre otras cosas, la ley prohíbe la discriminación por motivos de estatus migratorio, ciudadanía o nacionalidad de origen en los procesos de contratación, despido o reclutamiento o recomendación por comisión; las prácticas documentales injustas y las represalias e intimidación. Este folleto contiene más información sobre la discriminación al amparo de la INA.
Para aprender más sobre la labor de la IER y cómo conseguir ayuda, vea este vídeo corto. Aquellos aspirantes o empleados que creen haber sido discriminados por motivos de su estatus migratorio o de ciudadanía o nacionalidad de origen en los procesos de contratación, despido, reclutamiento o verificación de la elegibilidad para trabajar (Formulario I-9 e E-Verify) o sujetos a represalias pueden presentar una denuncia. El público también puede llamar a la línea directa de la IER para trabajadores al 1-800-255-7688; llamar a la línea directa de la IER para empleadores al 1-800-255-8155 (1-800-237-2515, TTY para personas con discapacidades auditivas); enviar un correo electrónico a IER@usdoj.gov; inscribirse a un seminario en línea gratuito; o visitar la página web de la IER en inglés o español. Para recibir las últimas noticias de la IER, inscríbase a GovDelivery.
Easton Resident Pleads Guilty to Federal Charge for Posing as a Teenage Boy on Social Media to Entice Minor Females to Send Him Sexually Explicit Images and Videos of ThemselvesRead the Press Release
Baltimore, Maryland - Angel Gabriel Arroyo-Angelino (“Arroyo”), age 34, a Mexican citizen residing in Easton, Maryland, pleaded guilty today to coercion and enticement of a minor to engage in illegal sexual activity. Arroyo admitted that he pretended to be a teenage boy on social media accounts, in order to induce minor females to produce and send to him, sexually explicit images and videos of themselves.
The guilty plea was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office; Chief Allen Lowrey of the Easton Police Department; and Talbot County State’s Attorney Scott G. Patterson.
According to his guilty plea, from December 24, 2017 through September 11, 2018, Arroyo used the alias “Elias Garcia” to create a social media account. Arroyo used the social media account to persuade, induce, and coerce four minor victims to produce and send him sexually explicit images and videos of themselves. Arroyo initiated contact with each of the minor victims on social media and told the victims that he was 16 years old. Arroyo used a profile picture depicting a teenaged boy to manipulate the minors he met online. Arroyo complimented the minors, sent them images of flowers and money, and made other romantic overtures to the minor victims. From these communications, Arroyo knew that the victims were underaged minors. Despite that knowledge, Arroyo persuaded the victims to send him nude images, often sending them cash in the mail if they sent the sexually explicit images and videos he requested.
The social media platform became aware of Arroyo’s misconduct in May of 2018 and terminated his Elias Garcia account. The social media platform also alerted the National Center for Missing and Exploited Children (“NCMEC”) and submitted a Cybertip detailing a sexually explicit online conversation that Arroyo had with one of the victims, a 15-year-old female (Victim #3), which culminated in the minor sending Arroyo a sexually explicit video of herself.
After receiving the Cybertip, investigators at the Easton Police Department obtained a series of search warrants for online and phone accounts associated with the “Elias Garcia” persona, and after gathering additional information, obtained a search warrant to search Arroyo’s residence in Easton, Maryland on September 11, 2018. While executing the search warrant, detectives discovered a white envelope in Arroyo’s bedroom that contained a $50.00 bill. The envelope was addressed to an individual later identified as a 12-year-old female and Victim #3’s name was handwritten in the area where “sender” information is customarily placed. Investigators discovered that Arroyo had been engaging in communications with the 12-year-old minor through social media, offering her money in exchange of sexually explicit photos.
In addition to the white envelope, investigators also discovered a black cell phone hidden in Arroyo’s bedroom. A subsequent review of the contents of the cell phone revealed sexually explicit images of several of the minor victims, as well as evidence linking Arroyo to the “Elias Garcia” communications and to another alias “Emiel Quiross” Arroyo used to create an additional social media account. Investigators obtained a search warrant to search this newly discovered alias account and discovered that Arroyo used the “Emiel Quiross” account to coerce and entice two additional minor victims, Victim #5 and Victim #6, to produce and send to him, sexually explicit images of themselves. Arroyo employed a similar pattern to manipulate Victim #5 and Victim #6, by pretending to be a 16-year-old boy and offering the minor females cash in exchange for sending him close-up images of the victims’ genitals. The “Emiel Quiross” account was created by Arroyo after the social media platform shut down his “Elias Garcia” account.
On September 11, 2018, after voluntarily waiving his Miranda rights Arroyo agreed to speak with investigators. During the interview, Arroyo admitted that the cell phone and white envelope found in his bedroom belonged to him. Arroyo claimed that he was using the envelope to mail money to his “ex-girlfriend.” When asked why Victim #3’s name was handwritten on the top-left “sender” portion of the envelope, Arroyo denied knowing Victim #3, and claimed that he made up the name of a female to place on the envelope so his “ex-girlfriend’s” new boyfriend would not become suspicious regarding the source of the money she received in the envelope. During the interview, Arroyo used another alias when identifying himself to investigators and did not provide his real name.
Arroyo faces a mandatory minimum sentence of 10 years in federal prison and a maximum of life in prison for enticement and coercion of a minor to engage in illegal sexual activity. Chief United States District Judge James K. Bredar has scheduled sentencing for October 4, 2022 at 10:00 a.m.
As stated in his plea agreement, upon his release from prison, Arroyo will be required to register as a sex offender in the places where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (“SORNA”).
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s 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. For more information about Internet safety education, please visit www.justice.gov/psc and click on the “Resources” tab on the left of the page.
United States Attorney Erek L. Barron commended the FBI, the Easton Police Department and the Talbot County State’s Attorney’s Office for their work in the investigation and prosecution. Mr. Barron thanked Assistant U.S. Attorneys Christine Duey and Colleen E. McGuinn, who are prosecuting the federal case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md/project-safe-childhood and https://www.justice.gov/usao-md/community-outreach.
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DuBois, PA Man Pleads Guilty to Possessing Child PornographyRead the Press Release
JOHNSTOWN, Pa. – A resident of DuBois, Pa., pleaded guilty in federal court to a charge of possession of child pornography, United States Attorney Cindy K. Chung announced today.
William R. Mumma, 32, pleaded guilty to a one-count Information before Senior United States District Judge Kim R. Gibson.
In connection with the guilty plea, on or about Oct. 26, 2017, to on or about Sept. 12, 2018, Mumma possessed images of minors engaged in sexually explicit conduct, which were produced using prepubescent minors engaging in sexually explicit conduct. The computer graphic files were shipped or transported in interstate or foreign commerce.
Judge Gibson scheduled sentencing for September 14, 2022, at 10:30 a.m. The law provides for a maximum total sentence of 20 years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Arnold P. Bernard, Jr. is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation conducted the investigation that led to the prosecution of Mumma.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by 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 better 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.
Drug User on Probation for Trafficking Stolen Weapons Found in Possession of .45 Caliber Pistol Sentenced to Federal PrisonRead the Press Release
A man who was riding as a passenger in a vehicle which was shot at in Cedar Rapids, Iowa, and found in possession of a .45 caliber pistol, was sentenced today to two years in federal prison.
Darrell Morrow, age 20, from Rock Island, Illinois, received the prison term after an October 14, 2021 guilty plea to being a prohibited person in possession of a firearm.
At the guilty plea, Morrow admitted that on October 5, 2020, he knowingly possessed a .45 caliber Springfield pistol. At the time he possessed the pistol, he had previously been convicted of trafficking in stolen weapons in Linn County, Iowa, in 2019 and was an unlawful user of a controlled substance. At sentencing, the evidence showed that Morrow was riding in a vehicle in Cedar Rapids which was riddled with gunfire. He was transported to the hospital due to injuries and law enforcement officers found his stolen gun lying near the crashed vehicle. Morrow’s social media accounts showed a history of firearms and narcotic use.
Morrow was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Morrow was sentenced to 24 months’ imprisonment and fined $100. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
Morrow is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case is being prosecuted by Assistant United States Attorney Liz Dupuich and investigated by the Cedar Rapids Safe Streets Task Force. The task force is composed of representatives from the Federal Bureau of Investigation and the Cedar Rapids Police Department.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is 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
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21-CR-0055.
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Dover Man Indicted for Possession and Receipt of Child PornographyRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Jonathan Lee Debus, age 42, of Dover, Pennsylvania, was indicted by a federal grand jury and charged with possession and receipt of child pornography.
According to U.S. Attorney John C. Gurganus, the indictment charges Debus with receipt and possession of child pornography involving a minor under 12 years of age, between October 1, 2021 and May 12, 2022, in York County. The indictment alleges that the conduct occurred subsequent to Debus’ Pennsylvania state conviction in the York County Court of Common Pleas for unlawful contact with minors and statutory sexual assault.
The matter was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Scott R. Ford is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by 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.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
The maximum penalty for these offenses is up to 60 years in prison, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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District of Columbia Man Sentenced to 70 Months in Prison for Conspiracy to Distribute Narcotics and Use FirearmsRead the Press Release
WASHINGTON – Daquon Wood, 29, of Washington D.C., was sentenced today to 70 months in federal prison for his role in an ongoing conspiracy to distribute narcotics and a related conspiracy to possess firearms in furtherance of drug trafficking.
The announcement was made by U.S. Attorney Matthew M. Graves, Wayne A. Jacobs, Special Agent in Charge of the FBI Washington Field Office Criminal Division, and Charlie J. Patterson, Special Agent in Charge of the Washington Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).
Wood is one of more than a dozen individuals arrested as part of a joint FBI/ATF investigation which resulted in the seizure of more than 34 pounds of marijuana, 16 firearms, and more than $270,000 in cash.
Wood, who utilized the street nickname “Fly Quon,” pleaded guilty on Nov. 5, 2021, in the U.S. District Court for the District of Columbia, to one count of conspiracy to distribute more than 100 kilograms of marijuana, as well as oxycodone and codeine. As part of his plea agreement, Wood admitted to participating in a separate conspiracy to use, carry, and possess firearms. Wood was sentenced by the Honorable Amy Berman Jackson. Following completion of his prison term, Wood will be placed on four years of supervised release.
According to the government’s evidence, beginning in approximately June 2018, and continuing through April 2021, Wood and his co-conspirators maintained drug dealing territory on Trenton Place SE in the Congress Heights neighborhood of the District of Columbia – a territory they defended by carrying, and discharging, firearms at perceived rivals.
As part of his role in the conspiracy, Wood distributed narcotics in street-level transactions and served as an armed defender of the co-conspirators’ drug dealing territory. Wood encouraged his co-conspirators to pool their money to buy as many firearms as possible for use in defending their territory and, as part of the conspiracy possessed and trafficked in fully automatic machineguns – including “giggle switch” devices which convert semi-automatic Glock-style handguns to be capable of fully automatic fire. As part of his sentence, Wood agreed to forfeit an ARMSCOR AK 22 rifle that was seized from a hiding spot or “trap” that he maintained.
Wood was arrested on May 5, 2021. He has been detained ever since.
In announcing the sentence, U.S. Attorney Graves, Special Agent in Charge Jacobs, and Special Agent in Charge Patterson commended the work of those who investigated the case from the FBI and ATF. They also expressed appreciation to those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Genevieve de Guzman, Kim Hall, and Teesha Tobias. Finally, they commended the work of Assistant U.S. Attorney James B. Nelson, who investigated and prosecuted the case, with help from former Assistant U.S. Attorneys Kaitlin Vaillancourt and Christopher Berridge.
Department of Justice Secures Agreement with EOHHS to Provide Community-Based Services to Children with Disabilities in Rhode IslandRead the Press Release
PROVIDENCE, R.I. – The United States Attorney’s Office for the District of Rhode Island and the U.S. Department of Justice today entered into a settlement agreement with the Rhode Island Executive Office of Health and Human Services (EOHHS) to resolve alleged violations of the Americans with Disabilities Act (ADA).
The parents of a child with autism filed a complaint with the U.S. Attorney’s Office, alleging that Rhode Island failed to provide their minor son with community-based Medicaid services that the State had authorized. These services allow children with disabilities to remain in their homes and communities rather than enter residential treatment facilities. The parents alleged that while the State authorized their son to receive 25 to 34 hours per week of community-based services, their son only received, on average, half of the weekly authorized hours. As a result, the parents feared that their son would be forced to leave their home and move to an institution. After the United States opened an investigation of this complaint, the child entered an out-of-state residential treatment facility for several months.
“Integrated, community-based services for children with intellectual and developmental disabilities are critical to keeping families together and ensuring that children receive care in a supporting and loving environment; no family should be forced to make a choice between care and separation from their children when adequate support is possible in a community setting,” said U.S. Attorney Zachary A. Cunha of the District of Rhode Island. “That is what the ADA requires, what today’s agreement is designed to ensure, and what this office will continue to demand as we go forward.”
“The ADA requires states to provide disability services in the most integrated setting appropriate so that children can remain at home with their families,” said Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division. “Providing community-based services allows children with disabilities to live at home and avoid residential facilities. The Civil Rights Division will vigorously enforce the ADA so that people with disabilities can get services at home instead of in facilities.”
Under the agreement reached today, Rhode Island will modify its policies so that children with intellectual and developmental disabilities such as autism will receive the community-based services that they are authorized. The State will require that every family receive a family care plan, allow families to receive services from different provider agencies, and provide oversight to make sure children with disabilities receive authorized community-based services. The State will also create an ombudsman program to allow individuals and their family members to express concerns. For the complainants’ son, EOHHS will develop an individualized service plan to identify the community-based services necessary for him to live at home, and pay $75,000 in damages.
This matter was handled jointly by Assistant US Attorney Amy Romero of the U.S. Attorney’s Office for the District of Rhode Island and the Disability Rights Section of the Department’s Civil Rights Division.
The Justice Department plays a central role in advancing the ADA’s goals of equal opportunity, full participation, independent living, and economic self-sufficiency for people with disabilities. For more information on the Civil Rights Division, please visit http://www.justice.gov/crt. For more information on the ADA, please call the department’s toll-free ADA Information Line at 800-514-0301 (TDD 800-514-0383) or visit www.ada.gov. ADA complaints may be filed online at www.ada.gov/complaint.
Anyone in the District of Rhode Island may also report civil rights violations directly to the U.S. Attorney’s Office for the District of Rhode Island at https://www.justice.gov/usao-ri/civil-rights-enforcement or 401-709-5000.
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Chicago Tech Executive Sentenced to a Year in Federal Prison for Illegally Exporting Computer Equipment to PakistanRead the Press Release
CHICAGO —A Chicago technology executive has been sentenced to a year in federal prison for illegally exporting computer equipment from the United States to a nuclear research agency of the Pakistani government.
OBAIDULLAH SYED, 67, of Northbrook, Ill., pleaded guilty last year to conspiring to export goods from the U.S. without a license from the Department of Commerce and to submit false export information. U.S. District Judge Mary M. Rowland on Tuesday sentenced Syed to a year and a day in federal prison. Prior to sentencing, Syed forfeited $247,000 of criminally derived cash to the U.S. government.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Angie Salazar, Special Agent-in-Charge of the Chicago office of Homeland Security Investigations; Aaron Tambrini, Special Agent-in-Charge of the U.S. Department of Commerce, Bureau of Industry and Security-Office of Export Enforcement, Chicago Field Office; and Cynthia A. Bruce, Special Agent-in-Charge of the U.S. Department of Defense, Defense Criminal Investigative Service, Southeast Field Office. The government was represented by Assistant U.S. Attorney Peter M. Flanagan.
Syed owned Pakistan-based BUSINESS SYSTEM INTERNATIONAL PVT. LTD., and Chicago-based BSI USA. The companies provided high-performance computing platforms, servers, and software application solutions. Syed admitted in a plea agreement that from 2006 to 2015 he conspired with his company’s employees in Pakistan to violate the International Emergency Economic Powers Act by exporting computer equipment from the U.S. to the Pakistan Atomic Energy Commission without obtaining the required authorization from the U.S. Department of Commerce. The PAEC is a Pakistani government agency designated by the U.S. government as an entity which may pose an unusual or extraordinary threat to the national security, foreign policy, or economy of the United States.
Syed further admitted that he and the other conspirators falsely represented to U.S.-based computer manufacturers that the illegal shipments were intended for Pakistan-based universities or Syed’s businesses, when, in fact, the conspirators knew that the true end user of each shipment was either the PAEC or a research institute that trained the agency’s engineers and scientists. In so doing, Syed and his company caused the U.S.-based computer manufacturers to submit to the U.S. government shipping documents that listed false end-users for the U.S.-origin goods, thereby undermining the U.S. government’s ability to stop the illegal shipments.
Business System International Pvt. Ltd. was charged in the conspiracy as a corporate defendant. The company has yet to respond to the charges.
Carfentanil Trafficker Is Sentenced to More Than Nine Years in PrisonRead the Press Release
CHARLOTTE, N.C. – Miguel Angel Gonzalez-Perez, a/k/a Fernando Contreras Gonzalez, 54, of Mexico, was sentenced today to 97 months in prison and three years of supervised release for trafficking carfentanil, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Robert J. Murphy, Special Agent in Charge of the Atlanta Field Division of the Drug Enforcement Administration (DEA), which oversees the Charlotte District Office, and Chief Joseph D. Ramey of the Gaston County Police Department join U.S. Attorney King in making today’s announcement.
According to the DEA, carfentanil is a synthetic opioid generally used as a tranquilizing agent for elephants and other large mammals. Carfentanil is approximately 10,000 times more potent than morphine and 100 times more potent than fentanyl. The presence of carfentanil in illicit U.S. drug markets is cause for grave concern, as the relative strength of this drug can lead to increased overdoses and overdose-related deaths. Carfentanil also poses a significant threat to everyone who may come in contact with this substance due to accidental exposure, including first responders and law enforcement personnel.
According to court documents and statements made in court, on May 1, 2020, law enforcement in Gaston County conducted a traffic stop of the vehicle Gonzalez-Perez was driving. Over the course of the traffic stop, law enforcement found more than two kilograms of carfentanil hidden in a shoebox inside the vehicle. The approximate street value of the carfentanil seized is $175,000. Court records show that Gonzalez-Perez had traveled to Atlanta to obtain the carfentantil and was headed back to Western North Carolina when he was intercepted by law enforcement.
On November 16, 2021, Gonzalez-Perez pleaded guilty to possession with intent to distribute carfentanil and aiding and abetting.
The DEA and the Gaston County Police Department investigated the case.
Assistant U.S. Attorney Taylor G. Stout of the U.S. Attorney’s Office in Charlotte prosecuted the case.
California Resident Pleads Guilty for His Role in Sim Swap Scam Targeting at Least 40 People, Including New Orleans ResidentRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that RICHARD YUAN LI, age 21, a resident of Hercules, California, pleaded guilty on May 17, 2022 before United States District Judge Greg G. Guidry to conspiracy to commit wire fraud, in violation of Title 18, United States Code, Sections 1349 and 1343, for his role in a SIM Swap scam that targeted at least forty people, including a New Orleans-area physician (Victim A).
According to court documents, a SIM Swap scam is a cellular phone account takeover fraud that results in the routing of a victim’s incoming calls and text messages to a different phone. Once a perpetrator is able to swap the SIM card, it is likely he is able to obtain access to a victim’s various personal accounts, including email accounts, bank accounts, and cryptocurrency accounts, as well as any other accounts that use two-factor authentication.
LI participated in a scheme that involved multiple parts. First, in January 2018, they defrauded Apple, Inc. into providing a second Apple iPhone without paying for it by convincing an Apple customer service representative that they had not received an Apple iPhone 8 they ordered (hereinafter “the Apple iPhone 8”). LI took possession of the Apple iPhone 8. LI and his co-conspirators then arranged for victims’ telephone numbers to be swapped to SIM cards contained in cellular phones in their possession, including the Apple iPhone 8. Between July 2018 and December 2018, LI participated in unauthorized SIM Swaps with his co-conspirators that targeted at least forty phone numbers.
Specifically, on November 10, 2018, Victim A’s telephone number was swapped to the Apple iPhone 8, which LI kept in his dorm room at a university in California. The SIM swap caused the transmission of a series of writings, signs, signals, and sounds that traveled in interstate commerce, including between the States of Florida, Louisiana, and California. Thereafter, LI and his co-conspirators gained access to Victim A’s email accounts and cryptocurrency accounts. Thereafter, one or more members of the conspiracy called Victim A and threatened to release contents of his email account unless Victim A paid a 100 Bitcoin ransom. Ultimately, they were able to steal approximately $57,117.50 worth of cryptocurrency before Victim A was able to regain control of his accounts. LI’s participation in a SIM Swap of another individual on December 4, 2018, caused that victim to lose approximately $4,000. In total, between July 19, 2018, and December 6, 2018, LI participated in unauthorized SIM Swaps with his co-conspirators that targeted at least forty victims.
LI faces a maximum term of twenty (20) years in prison, a fine of up to $250,000.00, up to three (3) years of supervised release after imprisonment, and a mandatory $100 special assessment fee per count. He may also be ordered to pay restitution to the victims for their losses. Sentencing before Judge Guidry has been scheduled for August 9, 2022.
U.S. Attorney Evans praised the work of the Federal Bureau of Investigation. Assistant United States Attorney Jordan Ginsberg, the Public Corruption Unit Chief, is in charge of the prosecution.
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California Man Sentenced to 25 Years in Federal Prison for Kidnapping Former Dating Partner, Illegal Firearm PossessionRead the Press Release
MEDFORD, Ore.—On May 17, 2022, a Humboldt County, California man was sentenced to 25 years in federal prison for the armed kidnapping of three adult victims, including a former dating partner, and illegally possessing a stolen firearm as a convicted felon.
George Gene Rose, 45, was sentenced to 300 months in federal prison and five years’ supervised release.
“Mr. Rose’s callous and terrifying kidnapping of his former partner and two other adult victims warrant the lengthy prison sentence imposed today. We hope this sentence will bring some measure of peace and closure for these victims after this harrowing ordeal,” said Scott Erik Asphaug, U.S. Attorney for the District of Oregon.
“The physical and emotional toll Mr. Rose subjected his victims to cannot be undone; however, our hope is that today’s sentence begins the healing process for these victims. His actions were cold-blooded and egregious and physical and emotional violence of this kind will not be tolerated,” said Kieran L. Ramsey, Special Agent in Charge of the FBI in Oregon.
According to court documents, on August 3, 2020, Rose entered the apartment of his first victim, a former dating partner, and waited for them to return home from work. Once inside, he stole a shotgun and several shotgun shells belonging to the victim’s landlord. When the victim returned home with a roommate, Rose confronted both individuals and ordered them to the ground at gunpoint. He bound both by their hands and feet and placed duct tape over their mouths and faces. Rose located a third victim in an adjacent bedroom and tied them up in a similar manner at gunpoint. When the third victim tried to break free of the binding, Rose struck them in the head with the butt of the stolen shotgun.
Rose then forced all three victims into a stolen pickup truck and fled. Several hours later, he released his second and third victims in a rural area of Northern California and told them to seek help from a house located two miles away. Rose continued driving north toward Oregon, while his first victim faded in and out of consciousness. Near Talent, Oregon, Rose abandoned the truck and led his first victim, who was not wearing shoes, through a densely wooded area. He repeatedly voiced his intention to kill the victim and himself.
Three days after the kidnapping, Rose’s victim convinced him to turn himself in. Rose eventually allowed the victim to knock on the door of a nearby residence and negotiate the terms of his surrender to police. Rose was arrested in possession of the stolen shotgun and more than two dozen shotgun shells.
On May 20, 2021, a federal grand jury in Medford returned a two-count indictment charging Rose with kidnapping and illegally possessing a firearm as a convicted felon. On September 27, 2021, he pleaded guilty to both charges.
U.S. Attorney Asphaug and Special Agent in Charge Ramsey made the announcement.
This case was investigated by the FBI with assistance from the Jackson County Sheriff’s Office, Humboldt County Sheriff’s Office, and the Humboldt County District Attorney’s Office. It was prosecuted by John C. Brassell, Assistant U.S. Attorney for the District of Oregon.
Domestic violence involving a current or former partner is a serious crime that includes both physical and emotional abuse. Sometimes these crimes are hidden from public view with survivors suffering in silence, afraid to seek help or not knowing where to turn. The traumatic effects of domestic violence also extend beyond the abused person, impacting family members and communities.
If you or someone you know are in immediate danger, please call 911.
If you need assistance or know someone who needs help, please contact the National Domestic Violence Hotline by calling 1-800-799-SAFE (7233) or texting “START” to 88788. Many communities throughout the country have also developed support networks to assist survivors in the process of recovery.