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12 December 2024
St. Tammany Parish Man Guilty of Conspiracy to Defraud Former Political Candidate and Four Other Louisiana ResidentsRead the Press Release
NEW ORLEANS, LOUISIANA –U.S. Attorney Duane A. Evans announced that JOSEPH HAROLD WEST, JR. (“WEST”), a resident of St. Tammany Parish, pled guilty on December 5, 2024 before United States District Judge Barry W. Ashe, to conspiracy to commit wire fraud, in violation of Title 18, United States Code, Section 371.
According to court documents, from as early as November 2020, and continuing through at least May 2024, WEST, and others, conspired to: defraud Candidate 1 with fake campaign services; defraud Victim 1 out of approximately $236,867 in fake real estate purchases and associated costs; defraud Victim 2 out of approximately $83,268.05 in fraudulent claims of real estate and title work; and defraud Victims 3 and 4 out of approximately $112,328.18 in connection with a fake legal defense scheme. Among other things, WEST and others utilized numerous fake aliases and occupations, “burner” numbers for text messages and calls, and fraudulent invoices, all in order to defraud their victims.
WEST faces up to five (5) years in prison, up to three (3) years of supervised release, a fine of up to $250,000 or the greater of twice the gross gain to the defendant or twice the gross loss to the victim, and a mandatory $100 special assessment fee. WEST has agreed to pay restitution of approximately $446,302.23 to his victims.
The case is being investigated by the Federal Bureau of Investigation. The prosecution of the case is being handled by Assistant United States Attorney, Andre J. Lagarde of the Public Integrity Unit.
St. Louis Man Sentenced to 15 Months in Prison for Pandemic Loan FraudRead the Press Release
ST. LOUIS – U.S. District Judge John A. Ross on Thursday sentenced a man who fraudulently obtained $41,484 in loans intended to help struggling businesses during the pandemic to 15 months in prison.
Judge Ross ordered Robert Baines, 44, to repay the amount of the loans, as well as $4,815 to the property management company where he once worked. After Baines pleaded guilty to two felony counts of wire fraud in August, allegations emerged that he told tenants to pay rent directly to him and moved two tenants into vacant apartments without leases and told them to pay him in cash, stealing a total of $7,315. Baines subsequently repaid $2,500 to his former employer.
In his guilty plea in August, Baines admitted fraudulently obtaining Paycheck Protection Program (PPP) loans in 2021. He applied for a first draw PPP loan on March 31, 2021, and a second draw PPP loan on April 9, 2021. In the loan applications, Baines falsely claimed that he was self-employed, lied about his business income and submitted a forged IRS form to bolster his claims. Baines was not self-employed and did not earn any of the claimed self-employment income. In his application for the second-draw loan, Baines falsely claimed that he’d suffered at least a 25% reduction in gross income between 2019 and 2020.
The PPP loans were designed to help small businesses during the COVID-19 pandemic and, accordingly, were to be used for business-related purposes, such as to cover payroll, utilities, and rent or mortgage payments. Instead, Baines instead used the money for restaurants, travel, clothing and other retail items.
The U.S. Secret Service investigated the case. Assistant U.S. Attorney Justin Ladendorf prosecuted the case.
Seminole Resident Sentenced for Murder in Indian Country and Firearms ChargeRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Coker Dean Barker, age 37, of Seminole, Oklahoma, was sentenced to life in prison for one count of Murder in Indian Country and 120 months for Using, Carrying, Brandishing, and Discharging a Firearm During and Related to a Crime of Violence. The sentences are set to be served consecutively to each other and to a separate conviction for escape.
The charges arose from investigations by the Seminole Police Department, the Seminole County Sheriff’s Office, the Oklahoma State Bureau of Investigation, the Texas Rangers, U.S. Customs and Border Protection, and the Federal Bureau of Investigation.
On April 10, 2023, Barker was found guilty by a federal jury at trial on one count of Murder in Indian Country and one count of discharging a firearm during a crime of violence. According to the evidence presented at trial, in April of 2019, Barker participated in brutally attacking, shooting, and killing the victim at a residence in Seminole County, within the boundaries of the Seminole Nation Reservation of Oklahoma and the Eastern District of Oklahoma. An autopsy revealed that, during the fatal attack, the victim sustained 18 broken ribs, two punctured lungs, and multiple bullet and shotshell wounds. After attempting to burn evidence to evade prosecution, Barker fled to the Mexican border where he was apprehended by U.S. Customs and Border Protection and returned to Oklahoma for prosecution.
The Honorable John Heil, III, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, presided over the hearing. Barker will remain in the custody of the U.S. Marshals Service pending transportation to a designated United States Bureau of Prisons facility to serve a non-paroleable sentence of incarceration.
Assistant U.S. Attorney Kevin Gross represented the United States.
Seminole Resident Sentenced for Accessory After the Fact to Murder in Indian CountryRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Scott William Lanham, age 45, of Seminole, Oklahoma, was sentenced to 87 months in prison for one count of Accessory After the Fact to Murder in Indian Country.
The charge arose from an investigation by the Seminole Police Department, the Seminole County Sheriff’s Office, the Oklahoma State Bureau of Investigation, the Texas Rangers, the U.S. Customs and Border Protection, and the Federal Bureau of Investigation.
On March 4, 2024, Lanham pleaded guilty to the charge. According to court documents, in April of 2019, after the murder of an area Seminole resident, Lanham knowingly helped one of the perpetrators cover up the crime, disposing of a murder weapon and destroying evidence in order to hinder and prevent arrest and prosecution. Despite Lanham’s efforts, the Government investigated and prosecuted the crime, and on April 10, 2023, a federal jury convicted Coker Dean Barker for murder.
The crimes occurred in Seminole County, within the boundaries of the Seminole Nation Reservation, in the Eastern District of Oklahoma.
The Honorable John Heil, III, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, presided over the hearing. Lanham will remain in the custody of the U.S. Marshals Service pending transportation to a designated United States Bureau of Prisons facility to serve a non-paroleable sentence of incarceration.
Assistant U.S. Attorney Kevin Gross represented the United States.
Sarasota Man Indicted for Distributing, Receiving, and Accessing Child Sexual Abuse MaterialRead the Press Release
Tampa, Florida – United States Attorney Roger B. Handberg announces the return of an indictment charging Sean Anthony Christie (42, Sarasota) with distribution, receipt, and access with intent to view child sexual abuse material. If convicted on all counts, Christie faces a maximum penalty of 20 years in federal prison.
According to the indictment, between November 17 and 19, 2024, Christie distributed and received child sex abuse material. Christie also accessed with intent to view child sex abuse material which involved a child under the age of 12.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Federal Bureau of Investigation. It will be prosecuted by Assistant United States Attorney Courtney Derry.
This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
San Antonio Man Sentenced to 28 Years in Federal Prison for Armed Pharmacy RobberiesRead the Press Release
SAN ANTONIO – A San Antonio man was sentenced to 339 months in federal prison for three counts of pharmacy robbery and three counts of brandishing a firearm during and in relation to a crime of violence.
According to court documents, from October to December 2020, Atseko Factor, 40, and co-defendant Andre Dupree Jack, 41, robbed three pharmacies at gunpoint in Luling, Pleasanton and Seguin. During the robberies, Factor and Jack pointed firearms at the employees, bound them with zip ties, and stole more than $43,000 worth of controlled substances, along with cash, pharmaceuticals and merchandise.
Factor pleaded guilty to the charges Sept. 10. In addition to imprisonment, Factor was ordered to pay approximately $47,000 in restitution.
Jack pleaded guilty to one count of conspiracy to commit pharmacy robbery and four counts of brandishing a firearm during and in relation to a crime of violence on March 21. He is scheduled to be sentenced Jan. 16, 2025.
U.S. Attorney Jaime Esparza for the Western District of Texas made the announcement.
The Drug Enforcement Administration and Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case along with the Pleasanton, Seguin, and Luling Police Departments.
Assistant U.S. Attorneys Brian Nowinski and John Fedock prosecuted the case.
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Rydox Cybercrime Marketplace Shut Down and Three Administrators ArrestedRead the Press Release
The Justice Department today announced the seizure of Rydox, an illicit website and marketplace dedicated to selling stolen personal information, access devices, and other tools for carrying out cybercrime and fraud, and the arrest of Rydox administrators and Kosovo nationals Ardit Kutleshi, 26, and Jetmir Kutleshi, 28. Both defendants were arrested earlier today in Kosovo by Kosovo law enforcement pursuant to a U.S. request for extradition. They are currently awaiting extradition to the United States to face an indictment unsealed today in the Western District of Pennsylvania.
A third administrator of the Rydox marketplace, Kosovo national Shpend Sokoli, was also arrested earlier today in Albania by Albania’s Special Anti-Corruption Body (SPAK). Sokoli is expected to be charged and prosecuted in Albania.
According to the indictment, the Rydox marketplace has conducted over 7,600 sales of personally identifiable information (PII), stolen access devices, and cybercrime tools, which generated at least $230,000 in revenue since its inception in or around February 2016. These sales included PII, credit card information, and login credentials stolen from thousands of victims residing in the United States. In addition, the Rydox site has offered for sale at least 321,372 cybercrime products to over 18,000 users including stolen PII such as names, addresses, and social security numbers; access devices such as stolen credentials for online accounts and credit card information; and cybercrime tools such as scam pages, spamming logs, and spamming tutorials.
“The Rydox marketplace was a one-stop shop where upwards of 18,000 of its cybercriminal customers could choose from more than 300,000 cybercrime tools,” said U.S. Attorney Eric G. Olshan for the Western District of Pennsylvania. “While cybercrime often involves conduct occurring overseas and the actions of foreign nationals, its harms can be devastatingly local, with residents in our own communities suffering financial ruin as a result of the theft and misuse of their sensitive personal information. Today’s takedown reinforces our steadfast message that the Western District of Pennsylvania and our domestic and international law enforcement partners will use every available tool to hold accountable those who pursue illicit profit at the expense of ordinary citizens around the world.”
“The success of this international operation underscores the power of collaboration between the FBI and our partners worldwide,” said Special Agent in Charge Kevin Rojek of the FBI Pittsburgh Field Office. “It also serves as a clear warning: those who go after innocent people for financial gain will be pursued and brought to justice no matter where they are in the world. This operation marks a major blow against the criminal underground that seeks to profit from stolen information and fuels global cybercrime.”
“The indictment alleges that, for more than eight years, the defendants administered an illicit online marketplace that sold PII, credit card information, and login credentials that had been stolen from thousands of U.S. victims,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “Today, we announce that, working with our domestic and foreign law enforcement partners, we have dismantled the marketplace, arrested its administrators, and seized their criminal proceeds. This announcement is a powerful demonstration of the value of our partnerships on cybercrime, without which these arrests and seizures would not have been possible.”
As part of the actions announced today, the United States also obtained judicial authorization to seize the domain www.Rydox.cc, which hosted and facilitated access to the Rydox website. The seizure of this domain by the government will prevent the owners and third parties from using the site to continue to buy and sell cybercrime tools and stolen personal information. Anyone visiting this site will now see a seizure banner that notifies them that the domain has been seized by federal authorities.
Rydox Domain Splash Page
In coordination with today’s actions, the FBI and Royal Malaysian Police seized servers in Kuala Lumpur, Malaysia, that hosted the Rydox illicit marketplace and took the Rydox website offline. The United States also obtained judicial authorization to seize approximately $225,000 worth of cryptocurrency from accounts controlled by the defendants.
Ardit Kutleshi and Jetmir Kutleshi are each charged with two counts of identity theft, one count of conspiracy to commit identity theft, one count of aggravated identity theft, one count of access device fraud, and one count of money laundering, all arising from their roles as administrators of the Rydox website. If convicted, they each face a maximum penalty of 20 years in prison for the money laundering offense, a maximum penalty of 10 years in prison for the access device fraud offense, a maximum penalty of five years in prison for each of the identity theft offenses, and a mandatory minimum sentence of two years in prison for the aggravated identity theft charge, which is required to run consecutively to any other sentence imposed. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI Pittsburgh Field Office investigated this case in coordination with the Kosovo State Prosecutor’s Special Prosecution Office, Kosovo Police’s Cybercrime Investigation Directorate, SPAK, Attorney General’s Chambers of Malaysia, and Royal Malaysia Police’s Commercial Crime Investigation Department.
Assistant U.S. Attorney Nicole Stockey for the Western District of Pennsylvania and Senior Counsel Thomas Dougherty of the Criminal Division’s Computer Crime and Intellectual Property Section are prosecuting the case. The Justice Department’s Office of International Affairs provided significant assistance.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Rydox Cybercrime Marketplace Shut Down and Three Administrators ArrestedRead the Press Release
The Justice Department today announced the seizure of Rydox, an illicit website and marketplace dedicated to selling stolen personal information, access devices, and other tools for carrying out cybercrime and fraud, and the arrest of Rydox administrators and Kosovo nationals Ardit Kutleshi, 26, and Jetmir Kutleshi, 28. Both defendants were arrested earlier today in Kosovo by Kosovo law enforcement pursuant to a U.S. request for extradition. They are currently awaiting extradition to the United States to face an indictment unsealed today in the Western District of Pennsylvania.
A third administrator of the Rydox marketplace, Kosovo national Shpend Sokoli, was also arrested earlier today in Albania by Albania’s Special Anti-Corruption Body (SPAK). Sokoli is expected to be charged and prosecuted in Albania.
According to the indictment, the Rydox marketplace has conducted over 7,600 sales of personally identifiable information (PII), stolen access devices, and cybercrime tools, which generated at least $230,000 in revenue since its inception in or around February 2016. These sales included PII, credit card information, and login credentials stolen from thousands of victims residing in the United States. In addition, the Rydox site has offered for sale at least 321,372 cybercrime products to over 18,000 users including stolen PII such as names, addresses, and social security numbers; access devices such as stolen credentials for online accounts and credit card information; and cybercrime tools such as scam pages, spamming logs, and spamming tutorials.
“The indictment alleges that, for more than eight years, the defendants administered an illicit online marketplace that sold PII, credit card information, and login credentials that had been stolen from thousands of U.S. victims,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “Today, we announce that, working with our domestic and foreign law enforcement partners, we have dismantled the marketplace, arrested its administrators, and seized their criminal proceeds. This announcement is a powerful demonstration of the value of our partnerships on cybercrime, without which these arrests and seizures would not have been possible.”
“The Rydox marketplace was a one-stop shop where upwards of 18,000 of its cybercriminal customers could choose from more than 300,000 cybercrime tools,” said U.S. Attorney Eric G. Olshan for the Western District of Pennsylvania. “While cybercrime often involves conduct occurring overseas and the actions of foreign nationals, its harms can be devastatingly local, with residents in our own communities suffering financial ruin as a result of the theft and misuse of their sensitive personal information. Today’s takedown reinforces our steadfast message that the Western District of Pennsylvania and our domestic and international law enforcement partners will use every available tool to hold accountable those who pursue illicit profit at the expense of ordinary citizens around the world.”
“The success of this international operation underscores the power of collaboration between the FBI and our partners worldwide,” said Special Agent in Charge Kevin Rojek of the FBI Pittsburgh Field Office. “It also serves as a clear warning: those who go after innocent people for financial gain will be pursued and brought to justice no matter where they are in the world. This operation marks a major blow against the criminal underground that seeks to profit from stolen information and fuels global cybercrime.”
As part of the actions announced today, the United States also obtained judicial authorization to seize the domain www.Rydox.cc, which hosted and facilitated access to the Rydox website. The seizure of this domain by the government will prevent the owners and third parties from using the site to continue to buy and sell cybercrime tools and stolen personal information. Anyone visiting this site will now see a seizure banner that notifies them that the domain has been seized by federal authorities.
Rydox Domain Splash PageIn coordination with today’s actions, the FBI and Royal Malaysian Police seized servers in Kuala Lumpur, Malaysia, that hosted the Rydox illicit marketplace and took the Rydox website offline. The United States also obtained judicial authorization to seize approximately $225,000 worth of cryptocurrency from accounts controlled by the defendants.
Ardit Kutleshi and Jetmir Kutleshi are each charged with two counts of identity theft, one count of conspiracy to commit identity theft, one count of aggravated identity theft, one count of access device fraud, and one count of money laundering, all arising from their roles as administrators of the Rydox website. If convicted, they each face a maximum penalty of 20 years in prison for the money laundering offense, a maximum penalty of 10 years in prison for the access device fraud offense, a maximum penalty of five years in prison for each of the identity theft offenses, and a mandatory minimum sentence of two years in prison for the aggravated identity theft charge, which is required to run consecutively to any other sentence imposed. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI Pittsburgh Field Office investigated this case in coordination with the Kosovo State Prosecutor’s Special Prosecution Office, Kosovo Police’s Cybercrime Investigation Directorate, SPAK, Attorney General’s Chambers of Malaysia, and Royal Malaysia Police’s Commercial Crime Investigation Department.
Senior Counsel Thomas Dougherty of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Nicole Stockey for the Western District of Pennsylvania are prosecuting the case. The Justice Department’s Office of International Affairs provided significant assistance.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Russian National Indicted for Assisting Sanctioned Oligarch in Schemes to Employ an American Citizen to Launch and Operate Russian Television NetworkRead the Press Release
Note: View the superseding indictment here.
WASHINGTON — A superseding indictment was unsealed today charging Alexey Komov, 53, of Russia, with conspiracy and violations of U.S. sanctions arising from his assistance to sanctioned Russian oligarch Konstantin Malofeyev, who was previously charged with sanctions violations in April 2022.
As alleged, Komov conspired with Malofeyev to recruit and employ an American citizen, Jack Hanick, who worked for Malofeyev in launching and operating a television network in Russia. Komov also conspired with Malofeyev, Hanick, and others to illegally transfer a $10 million investment that Malofeyev had made in a U.S. bank to a business associate in Greece, in violation of the sanctions blocking Malofeyev’s assets from being transferred.
“The indictment alleges Alexey Komov played an essential role in a multi-faceted scheme to violate and evade U.S. sanctions imposed on a significant financier of Russian aggression in Ukraine,” said Co-Director Menno Goedman of Task Force KleptoCapture. “Task Force KleptoCapture will continue to disrupt schemes perpetrated by Komov and other sanction evaders, whenever and wherever they may hide.”
“As alleged, Alexey Komov facilitated the efforts of Konstantin Malofeyev — an oligarch closely tied to Russian aggression in Ukraine who has been determined by the Department of Treasury’s Office of Foreign Assets Control (OFAC) to have been one of the main sources of financing for the promotion of Russia-aligned separatist groups operating in the sovereign nation of Ukraine — to flout U.S. sanctions,” said U.S. Attorney Damian Williams for the Southern District of New York. “The unsealing today of the indictment against Komov is yet another reminder that this office will continue to hold those accountable that seek to undermine the United States’ national security goals.”
In 2014, the president issued Executive Order 13660, which declared a national emergency with respect to the situation in Ukraine. To address this national emergency, the president blocked all property and interest in property that came within the United States or the possession or control of any U.S. person, of individuals determined by the Secretary of the Treasury to be responsible for or complicit in, or who engaged in, actions or policies that threatened the peace, security, stability, sovereignty, or territorial integrity of Ukraine, or who materially assist, sponsor, or provide financial, material, or technological support for, or goods and services to, individuals or entities engaging in such activities. Executive Order 13660, along with certain regulations issued pursuant to it (the Ukraine-Related Sanctions Regulations) prohibits, among other things, making or receiving any funds, goods, or services by, to, from, or for the benefit of any person whose property and interests in property are blocked.
On Dec. 19, 2014, OFAC designated Malofeyev as a Specially Designated National (SDN) pursuant to Executive Order 13660. OFAC’s designation of Malofeyev explained that he was one of the main sources of financing for Russians promoting separatism in Crimea, and has materially assisted, sponsored, and provided financial, material, or technological support for, or goods and services to or in support of the so-called Donetsk People’s Republic, a separatist organization in the Ukrainian region of Donetsk.
As alleged in the indictment, beginning in at least 2012, Komov assisted Malofeyev in recruiting and hiring a U.S. citizen named Jack Hanick to work on a new Russian cable television news network that Malofeyev was creating. As part of Komov’s recruitment of Hanick, Komov travelled to Manhattan to meet with Hanick and subsequently introduced Hanick to Malofeyev in Russia. With Komov’s knowledge, Malofeyev negotiated directly with Hanick regarding Hanick’s salary, payment for Hanick’s housing in Moscow, and Hanick’s Russian work visa. Malofeyev paid Hanick through two separate Russian entities through the end of 2018.
After OFAC designated Malofeyev as a SDN in December 2014, Malofeyev continued to employ Hanick on the Russian TV Network, with Komov’s assistance and input, and in violation of the Ukraine-Related Sanctions Regulations. For example, prior to the launch of the Russian TV Network on the air in Russia in April 2015, Komov wrote an email to Malofeyev, Hanick, and another employee, referencing their prior discussion with Malofeyev earlier that day and instructing Hanick to create two types of programs and allocate staff. Komov further wrote, “Hopefully Konstantin will be providing general direction and guidance for both projects. Looking forward to our long-term co-operation on those exciting endeavors!” In turn, Hanick requested Komov to serve as a moderator for the first broadcast, writing “KM [i.e. Malofeyev] and I agree that we need you on this the first show on [the Russian TV Network]!!!”
With Komov’s participation, Malofeyev also employed Hanick to assist Malofeyev in transferring a shell company that Malofeyev owned to a Greek associate of Malofeyev. In 2014, Malofeyev, assisted by Komov, had used the shell company to make a $10 million investment in a Texas-based bank holding company. Komov helped set up the deal, emailing a Texas-based attorney (Individiual-1), “I plan to come to the US with two of my close friends Konstantin Malofeev [sic] and [another individual] on Feb 4-9, 2014 . . . I’d like the three of us to meet with you to discuss our cooperation, and also joint investment projects (please propose attractive investment opportunities with reliable partners for $50-100 mln participation from our side)”. On or about March 25, 2014, Komov wrote to Individual-I, “Konstantin has confirmed today that he goes ahead with the 10 mln investment in the bank project.”
Beginning in or about March 2015, with Komov’s assistance, Malofeyev began making plans to transfer ownership of the shell company to the Greek Business Associate, in violation of the Ukraine-Related Sanctions Regulations. On or about March 4, 2015, Komov wrote to Individual-1, “I need to discuss with you several things: previous investment in the bank project (we want to consider selling it)”. On or about March 17, 2015, Komov wrote to Individual-1 about the Texas Bank Interest, in part, “We want to keep it where it is now, only the owner from our side changes.” Consistent with that plan, in or about May 2015, Malofeyev’s attorney drafted a sale and purchase agreement that purported to transfer the shell company to the Greek Business Associate in exchange for one U.S. dollar. In June 2015 Malofeyev had Hanick physically transport a copy of Malofeyev’s certificate of shares in the Texas Bank from Moscow to Athens to be given to the Greek Business Associate. Malofeyev signed the sale and purchase agreement in June 2015, but the agreement was fraudulently backdated to July 2014 to make it appear that the transfer had taken place prior to the imposition of U.S. sanctions. Malofeyev’s attorney then falsely represented to the Texas Bank that the transfer had taken place in July 2014, even though Malofeyev and his attorney well knew that the transfer of the shell company was executed in June 2015.
The United States seized and forfeited approximately $5.4 million in the property traceable to Malofeyev’s Texas Bank investment, which had been converted by the Texas Bank in 2016 to cash held in a blocked U.S. bank account. In February 2023, the U.S. Attorney General authorized a transfer of these forfeited funds to the State Department to support Ukrainian veterans.
Malofeyev and Komov are believed to be in Russia and remains at large. Komov is charged with one count of violating the International Emergency Economic Powers Act and one count of conspiring to do the same, each of which carry a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI is investigating the case with assistance from the Justice Department’s Office of International Affairs.
Assistant U.S. Attorneys Vladislav Vainberg, Thane Rehn, and Jessica Greenwood for the Southern District of New York and Trial Attorney Scott Claffee of the National Security Division’s Counterintelligence and Export Section are prosecuting the case.
The investigation was coordinated through the Justice Department’s Task Force KleptoCapture, an interagency law enforcement task force dedicated to enforcing the sweeping sanctions, export controls and economic countermeasures that, beginning in 2014, the United States, along with its foreign allies and partners, has imposed in response to Russia’s unprovoked military invasion of Ukraine. Announced by the Attorney General on March 2, 2022, and under the leadership of the Office of the Deputy Attorney General, the Task Force will continue to leverage all of the department’s tools and authorities to combat efforts to evade or undermine the collective actions taken by the U.S. government in response to Russian military aggression.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Russian National Assisted Sanctioned Oligarch in Schemes to Employ an American Citizen to Launch and Operate Russian Television NetworkRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, Menno Goedman, the Co-Director of Task Force KleptoCapture, and James E. Dennehy, the Assistant Director in Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of a Superseding Indictment charging ALEXEY KOMOV with conspiracy and violations of U.S. sanctions arising from his assistance to sanctioned Russian oligarch KONSTANTIN MALOFEYEV, who was previously charged in April 2022. As alleged, KOMOV conspired with MALOFEYEV to recruit and employ an American citizen, Jack Hanick, who worked for MALOFEYEV in launching and operating a television network in Russia. KOMOV also conspired with MALOFEYEV, Hanick, and others to illegally transfer a $10 million investment that MALOFEYEV had made in a U.S. bank to a business associate in Greece, in violation of the sanctions blocking MALOFEYEV’s assets from being transferred.
U.S. Attorney Damian Williams said: “As alleged, Alexey Komov facilitated the efforts of Konstantin Malofeyev – an oligarch closely tied to Russian aggression in Ukraine who has been determined by OFAC to have been one of the main sources of financing for the promotion of Russia-aligned separatist groups operating in the sovereign nation of Ukraine – to flout U.S. sanctions. The unsealing today of the Indictment against Komov is yet another reminder that this Office will continue to hold those accountable that seek to undermine the United States’ national security goals.”
KleptoCapture Co-Director Menno Goedman said: “The indictment alleges Alexey Komov played an essential role in a multi-faceted scheme to violate and evade U.S. sanctions imposed on a significant financier of Russian aggression in Ukraine. Task Force KleptoCapture will continue to disrupt schemes perpetrated by Komov and other sanction evaders, whenever and wherever they may hide.”
FBI Assistant Director in Charge James E. Dennehy said: “Alexey Komov, a Russian national, allegedly conspired with an American citizen and a sanctioned Russian oligarch to develop a Russian cable network to promote anti-Western propaganda. This alleged conspiracy violated laws designed to protect the national security of the United States and our allies. The FBI remains committed to apprehending foreign nationals who employ our citizens to satisfy their odious agenda.”
According to the Indictment unsealed today in Manhattan federal court:[1]
In 2014, the President issued Executive Order 13660, which declared a national emergency with respect to the situation in Ukraine. To address this national emergency, the President blocked all property and interest in property that came within the U.S. or the possession or control of any U.S. person, of individuals determined by the Secretary of the Treasury to be responsible for or complicit in, or who engaged in, actions or policies that threatened the peace, security, stability, sovereignty, or territorial integrity of Ukraine, or who materially assist, sponsor, or provide financial, material, or technological support for, or goods and services to, individuals or entities engaging in such activities. Executive Order 13660, along with certain regulations issued pursuant to it (the “Ukraine-Related Sanctions Regulations”) prohibits, among other things, making or receiving any funds, goods, or services by, to, from, or for the benefit of any person whose property and interests in property are blocked.
On December 19, 2014, the Department of Treasury’s Office of Foreign Assets Control (“OFAC”) designated MALOFEYEV as a Specially Designated National (“SDN”) pursuant to Executive Order 13660. OFAC’s designation of MALOFEYEV explained that he was one of the main sources of financing for Russians promoting separatism in Crimea, and has materially assisted, sponsored, and provided financial, material, or technological support for, or goods and services to or in support of the so-called Donetsk People’s Republic, a separatist organization in the Ukrainian region of Donetsk.
As alleged in the Indictment, beginning in at least 2012, KOMOV assisted MALOFEYEV in recruiting and hiring a U.S. citizen named Jack Hanick to work on a new Russian cable television news network (the “Russian TV Network”) that MALOFEYEV was creating. As part of KOMOV’s recruitment of Hanick, KOMOV travelled to Manhattan to meet with Hanick and subsequently introduced Hanick to MALOFEYEV in Russia. With KOMOV’s knowledge, MALOFEYEV negotiated directly with Hanick regarding Hanick’s salary, payment for Hanick’s housing in Moscow, and Hanick’s Russian work visa. MALOFEYEV paid Hanick through two separate Russian entities through the end of 2018.
After OFAC designated MALOFEYEV as a SDN in December 2014, MALOFEYEV continued to employ Hanick on the Russian TV Network, with KOMOV’s assistance and input, and in violation of the Ukraine-Related Sanctions Regulations. For example, prior to the launch of the Russian TV Network on the air in Russia in April 2015, KOMOV wrote an e-mail to MALOFEYEV, Hanick, and another employee, referencing their prior discussion with MALOFEYEV earlier that day and instructing Hanick to create two types of programs and allocate staff. KOMOV further wrote, “Hopefully Konstantin will be providing general direction and guidance for both projects. Looking forward to our long-term co-operation on those exciting endeavors!” In turn, Hanick requested KOMOV to serve as a moderator for the first broadcast, writing “KM [i.e. MALOFEYEV] and I agree that we need you on this the first show on [the Russian TV Network]!!!”
With KOMOV’s participation, MALOFEYEV also employed Hanick to assist MALOFEYEV in transferring a shell company that MALOFEYEV owned to a Greek associate of MALOFEYEV (the “Greek Business Associate”). In 2014, MALOFEYEV, assisted by KOMOV, had used the shell company to make a $10 million investment in a Texas-based bank holding company (the “Texas Bank”). KOMOV helped set up the deal, emailing a Texas-based attorney (“Individiual-1”), “I plan to come to the US with two of my close friends Konstantin Malofeev [sic] and [another individual] on Feb 4-9, 2014 . . . I’d like the three of us to meet with you to discuss our cooperation, and also joint investment projects (please propose attractive investment opportunities with reliable partners for $50-100 mln participation from our side)”. On or about March 25, 2014, KOMOV wrote to Individual-I, “Konstantin has confirmed today that he goes ahead with the 10 mln investment in the bank project.”
Beginning in or about March 2015, with KOMOV’s assistance, MALOFEYEV began making plans to transfer ownership of the shell company to the Greek Business Associate, in violation of the Ukraine-Related Sanctions Regulations. On or about March 4, 2015, KOMOV wrote to Individual-1, “I need to discuss with you several things: previous investment in the bank project (we want to consider selling it)”. On or about March 17, 2015, KOMOV wrote to Individual-I about the Texas Bank interest, in part, “We want to keep it where it is now, only the owner from our side changes.” Consistent with that plan, in or about May 2015, MALOFEYEV’s attorney drafted a Sale and Purchase Agreement that purported to transfer the shell company to the Greek Business Associate in exchange for one U.S. dollar. In June 2015 MALOFEYEV had Hanick physically transport a copy of MALOFEYEV’s certificate of shares in the Texas Bank from Moscow to Athens to be given to the Greek Business Associate. MALOFEYEV signed the Sale and Purchase Agreement in June 2015, but the agreement was fraudulently backdated to July 2014 to make it appear that the transfer had taken place prior to the imposition of U.S. sanctions. MALOFEYEV’s attorney then falsely represented to the Texas Bank that the transfer had taken place in July 2014, even though MALOFEYEV and his attorney well knew that the transfer of the shell company was executed in June 2015.
The U.S. seized and forfeited approximately $5.4 million in the property traceable to MALOFEYEV’s Texas Bank investment, which had been converted by the Texas Bank in 2016 to cash held in a blocked U.S. bank account. In February 2023, the U.S. Attorney General authorized a transfer of these forfeited funds to the State Department to support Ukrainian veterans.
MALOFEYEV, of Russia, is believed to be in Russia and remains at large.
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KOMOV, 53, a Russian national, is charged with conspiracy to violate and substantive violation of International Emergency Economic Powers Act, each of which carry a maximum potential sentence of 20 years in prison.
The maximum potential sentences in this case are prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Williams praised the outstanding investigative work of the FBI and thanked the support and expertise of the Department of Justice’s National Security Division and Office of International Affairs in the conduct of this matter.
The prosecution is being handled by the Office’s Illicit Finance and Money Laundering Unit. Assistant U.S. Attorneys Vladislav Vainberg, Thane Rehn, Jessica Greenwood, and Trial Attorney Scott Claffee of the National Security Division’s Counterintelligence and Export Section are in charge of the prosecution.
[1] The entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Rochester woman charged once again with entering restricted area at Rochester airportRead the Press Release
ROCHESTER, N.Y.-U.S. Attorney Trini E. Ross announced today that Takesha Rogers, 39, of Rochester, NY, was arrested and charged by criminal complaint with willfully entering an airport area that serves an air carrier or foreign air carrier in violation of security requirements, which carries a maximum penalty of one year in prison.
Assistant U.S. Attorney Meghan K. McGuire, who is handling the case, stated that according to the complaint, on May 5, 2022, Rogers pleaded guilty to entering an airport area in violation of security requirements, admitting that she had climbed over the fence and willfully entered the Aircraft Operations Area (AOA), which is a restricted area, at the Rochester Airport on four separate occasions. Rogers was sentenced to time served and one year of supervised release. In April 2023, soon after her supervised release began, Rogers again attempted to evade the security requirements at the Rochester Airport, climb a fence, and enter the AOA. She also committed additional violations, which lead to a revocation of her supervised release. In October 2023, Rogers was sentenced to one year in prison. Rogers was released in July 2024. On November 27, 2024, just after 11:30 pm, Rogers again entered a secured AOA at the Rochester Airport. A Monroe County Sheriff’s Deputy responded and observed Rogers running towards a moving aircraft that was taxiing towards the runway. She was taken into custody without incident and deemed a Mental Hygiene Arrest and released to Rochester General Hospital for psychiatric evaluation.
Rogers made an initial appearance before U.S. Magistrate Judge Marian W. Payson and was detained.
The complaint is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Matthew Miraglia, and the Monroe County Sheriff’s Office, under the direction of Sheriff Todd Baxter.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Rhode Island Man Indicted for ATM TheftRead the Press Release
ALBANY, NEW YORK – David Degrasse, age 54, of West Warwick, Rhode Island, was arraigned today on an indictment charging him with interstate transportation of stolen property.
United States Attorney Carla B. Freedman; Craig L. Tremaroli, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI); and New York State Police Superintendent Steven G. James made the announcement.
The indictment alleges that on April 27, 2023, Degrasse transported, from Greene County to Connecticut, approximately $9,300 stolen from an ATM machine in Greene County. The charges in the indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty.
The charge filed against Degrasse carries a maximum term of 10 years in prison, a fine of up to $250,000, and a term of supervised release of up to 3 years. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
Degrasse was arraigned today in Albany, before United States Magistrate Judge Christian F. Hummel, and ordered detained pending a trial scheduled before Senior United States District Judge Frederick J. Scullin, Jr.
The FBI and State Police are investigating the case. Assistant U.S. Attorney Jonathan S. Reiner is prosecuting the case.
Repeat Sex Offender Sentenced to 10 Years in Federal Prison for Possession of Child Sexual Abuse MaterialRead the Press Release
CONCORD – A Nashua man was sentenced in federal court for possessing child sexual abuse material (CSAM), U.S. Attorney Jane E. Young announces.
Shane Niven, 34, was sentenced by U.S. District Court Judge Samantha Elliott to 120 months in federal prison followed by 8 years of supervised release. He was also ordered to pay $24,000 in restitution and a $5,000 special assessment. Niven pleaded guilty in April to possessing child pornography.
“The defendant is a recidivist sex offender who continued his online exploitation of children,” said U.S. Attorney Jane E. Young. “This case highlights the importance of reporting child sexual exploitation to the National Center for Missing and Exploited Children (NCMEC). Cyber tips to NCMEC alerted law enforcement to the defendant’s nefarious online activity and potentially saved additional victims from harm.”
“Niven had already been convicted of possessing child sexual abuse material when he was caught yet again with these horrific files in his possession. Continued vigilance by HSI special agents, paired with our critical public and private sectors partners, allows us to detect, identify and bring to justice predators like Niven, who possess and trade in child sexual abuse material,” said Special Agent in Charge Michael J. Krol for Homeland Security Investigations in New England.
According to court documents and statements made in court, federal authorities found CSAM on electronic devices belonging to Niven after executing a federal search warrant at his home. Niven is a registered sex offender with a prior conviction for possession of CSAM. Authorities identified Niven through tips made to NCMEC, which reflected that on at least two occasions, Niven’s residential IP address had been used to share hundreds of files of suspected CSAM with users of a particular online platform. Several of the files identified in the tips to NCMEC were found on devices seized from Niven’s home.
Homeland Security Investigations led the federal investigation in partnership with the Nashua Police Department. The New Hampshire Internet Crimes Against Children Task Force provided valuable assistance. Assistant U.S. Attorney Kasey Weiland is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
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Registered Sex Offender Sentenced on Child Pornography Charges, Violating Terms of Supervised ReleaseRead the Press Release
PROVIDENCE, RI – A Burrillville man has been sentenced to ten years in federal prison for possessing child pornography and violating the terms of his supervised release, announced United States Attorney Zachary A. Cunha.
Court documents detail that in November 2013, Jaymeson Delgizzi, 31, was convicted in Hickman County, TN, for aggravated sexual assault on a minor. He was sentenced to 11 years imprisonment and ordered to register as a sex offender. In January 2023, after he had been released on parole following his term of incarceration in Tennessee,, Delgizzi cut off his electronic monitoring bracelet and traveled to Rhode Island. Despite taking up residency in Rhode Island, Delgizzi failed to register as a sex offender, as required, and was charged by this Office for that offense. In October 2023, Delgizzi was convicted of violating the Sex Offender Registration and Notification Act (SORNA), and sentenced to five years of federal supervised release.
In November 2023, while on federal pretrial release, the Rhode Island State Police Internet Crimes Against Children Task Force received information from the National Center for Missing & Exploited Children that a Google account belonging to Delgizzi was being used to upload images of child pornography. On January 17, 2024, a search warrant executed at Delgizzi’s residence uncovered both images and videos of child pornography in Delgizzi’s possession.
Delgizzi pleaded guilty on September 17, 2024, to two counts of possession of child pornography. He was sentenced on Wednesday by U.S. District Court Judge Mary S. McElroy to 120 months in federal prison to be followed by ten years of supervised release.
This Project Safe Childhood case was prosecuted by Assistant U.S. Attorney Sandra R. Hebert. The case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc
The matter was investigated by the Rhode Island State Police Internet Crimes Against Children Task Force.
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Raleigh County Man Pleads Guilty to Federal Gun CrimeRead the Press Release
BECKLEY, W.Va. – Brian K. Trent, 29, of Bradley, pleaded guilty on Wednesday, December 11, 2024, to being a felon in possession of a firearm.
According to court documents and statements made in court, on September 12, 2023, law enforcement officers responded to a report of a suspicious vehicle in the Stanaford area of Raleigh County and found Trent and another individual in the reported vehicle. Officers determined that the vehicle was reported stolen in South Carolina, and that Trent was wanted on an active misdemeanor warrant and a parole violation. Officers also saw a firearm between the driver’s seat and the center console of the vehicle. Officers searched Trent and the vehicle and seized a Taurus model G2 9mm pistol, a North American .22-caliber magnum revolver, a Marlin model 60 .22-caliber rifle, a Noble model 60H 12-gauge shotgun, and a Taurus .32-caliber revolver.
Federal law prohibits a person with a prior felony conviction from possessing a firearm or ammunition. Trent knew he was prohibited from possessing a firearm because of his prior felony conviction for destruction of property in Raleigh County Circuit Court on November 29, 2016.
Trent is scheduled to be sentenced on April 4, 2025, and faces a maximum penalty of 15 years in prison, up to three years of supervised release, and a $250,000 fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
United States Magistrate Judge Omar J. Aboulhosn presided over the hearing. Assistant United States Attorney Brian D. Parsons is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 5:24-cr-58.
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Quincy Man Sentenced to More Than One Year in Prison for Filing False Tax ReturnsRead the Press Release
BOSTON – A Quincy man was sentenced today in federal district court in Boston for filing false corporate tax returns to hide over $10 million in corporate revenue and to evade over $2 million in taxes.
Su Nguyen, 60, was sentenced by U.S. Senior District Court Judge William G. Young to 18 months in prison, followed by 12 months of supervised release. He was also ordered to pay $2,090,192.77 in restitution. In May 2024, Su pleaded guilty to three counts of aiding and assisting in the filing of false tax returns. In October 2023, Nguyen was indicted by a federal grand jury.
Between 2016 and 2020, Nguyen owned and operated General Employment Services (GES), a temporary employment agency operating in Massachusetts. Clients paid GES by check for the work performed by GES employees. Nguyen deposited a small number of client checks in a bank account that Nguyen used for GES business and reported that income to the IRS. However, Nguyen cashed the majority of client checks at a check casher located in Worcester and used that cash on himself and to pay employees’ wages off-the-books. In total, Nguyen cashed over $10 million in client checks and did not report that revenue or the wages paid in cash to the IRS. By doing so, Nguyen and GES failed to pay over $2 million in taxes.
United States Attorney Joshua S. Levy; Jonathan Wlodyka, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement. Assistant U.S. Attorneys Christopher J. Markham and Kriss Basil of the Securities, Financial & Cyber Fraud Unit prosecuted the case.
President of North Carolina-Based Entertainment Company Agrees to Plead Guilty to Additional Federal Fraud ChargesRead the Press Release
LOS ANGELES – The president of an entertainment production company, who pleaded guilty earlier this year to embezzling more than $200,000 from a television production, has agreed to plead guilty to new criminal conduct – this time, misappropriating more than $182,000 from investors in various television productions, the Justice Department announced today.
David Ozer, 59, of Roslyn Heights, New York, has agreed to plead guilty to one count of wire fraud, which carries a statutory maximum penalty of 20 years in federal prison. Ozer previously entered a guilty plea to a separate wire fraud charge on October 22.
Ozer is expected to make his initial appearance in United States District Court in downtown Los Angeles on January 24, 2025.
As he previously admitted as part of his guilty plea, Ozer is a producer and the president of Strong Studios Inc., a production company based in Charlotte, North Carolina. According to his plea agreement, Ozer swindled Ravenwood-Productions LLC, the principal financial backer of “Safehaven,” a supernatural thriller television series, by misappropriating approximately $214,486 in production funds from bank accounts for the production. Ozer also created fraudulent accounting records, including falsified invoices, and forged a letter purportedly from his accountant.
After news of Ozer’s first plea agreement was announced, additional victims came forward. As Ozer has admitted in his new plea agreement filed today, he enticed two victims to loan him money in connection with a television series titled “Endangered.” In return, Ozer’s victims were promised executive producer credits. He also solicited funds from another victim in connection with drafting a script. Despite Ozer’s claims that the script development was in progress, the victim learned from the screenwriter that the script neither had been written nor was the screenwriter paid by Ozer. Instead, Ozer misappropriated the three victims’ funds, which totaled approximately $182,500.
To create the false appearance that the misappropriated funds had been used for their intended purpose, Ozer created fraudulent documents, including falsified bank records, as well as forged correspondence from another producer.
Ozer is scheduled to be sentenced by United States District Judge Stanley Blumenfeld Jr. in his first fraud case on January 28, 2025.
The FBI is investigating this matter.
Assistant United States Attorneys Alexander B. Schwab of the Corporate and Securities Fraud Strike Force and Matt Coe-Odess of the General Crimes Section are prosecuting this case.
President of Florida-Based Investment Firm Sentenced for Role in Unregistered Broker SchemeRead the Press Release
BOSTON – The President of a now-defunct investment firm targeting retail investors was sentenced yesterday for assisting an unregistered broker who sold securities in exchange for an undisclosed commission of approximately 40 percent.
Clinton Greyling, 50, of Tamarac, Fla., was sentenced by U.S. District Court Judge Richard G. Stearns to one year of probation. He was also ordered to perform 200 hours of community service and to forfeit $229,576. In August 2024, Greyling pleaded guilty to one count of aiding and abetting an unregistered broker. Greyling was charged in July 30, 2024.
Greyling was the President of Trends Investments, Inc., a now-shuttered Florida-based company that sold securities of fledgling public companies that were engaged in mergers. Between February 2017 and June 2019, Trends sold shares of several companies to retail investors throughout the United States. Greyling touted the companies as promising because they were supposedly about to enter new and exciting business lines, including therapeutic cannabinoids and blockchain technology. To sell the securities, Trends engaged a former registered broker, who solicited prospective customers to buy shares by falsely holding himself out as a broker and wealth manager and telling customers that the securities were promising investments. At Greyling’s direction, Trends paid the individual—who was no longer registered as a broker with the U.S. Securities & Exchange Commission, as required—an undisclosed commission of approximately 40 percent, totaling more than $800,000 on over $1.9 million in sales. Greyling also assisted the individual by providing positive information about the companies, including information about when the companies’ securities would purportedly begin active trading on the over-the-counter market. Trends, however, ultimately did not timely deliver shares to customers and the promised investment returns did not materialize. The shares sold to investors were ultimately worthless as a practical matter, as the customers were generally unable to deposit or trade them in a timely manner.
United States Attorney Joshua S. Levy and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement. Assistant U.S. Attorney James R. Drabick of the Securities, Financial & Cyber Fraud Unit prosecuted the case.
Postal Employee Sentenced for Mail TheftRead the Press Release
NEW ORLEANS, LOUISIANA – SHAKEITHA WILEY (“WILEY”), age 41, of New Orleans, was sentenced on December 5, 2024 to 3 years probation, announced U.S. Attorney Duane A. Evans. WILEY previously pled guilty to unauthorized opening of mail, in violation of Title 18, United States Code, Section 1703(b). Additionally, WILEY was ordered to pay a $25.00 mandatory special assessment fee and restitution and fine in the amounts of $210.00 respectively.
According to court documents, on or about August 25, 2023, WILEY, a mail handler at the New Orleans Processing and Distribution Center, opened a parcel of mail not directed to her and removed two gift cards totaling $210. WILEY later used the stolen gift cards for her own benefit.
The case was investigated by the United States Postal Service, Office of the Inspector General. Assistant United States Attorney Christine Calogero of the General Crimes Unit was in charge of the prosecution.
Portsmouth Man Sentenced to Probation After Admitting to Violating the Migratory Bird Treaty ActRead the Press Release
PROVIDENCE, RI – A Portsmouth man has been sentenced to six months’ federal probation after admitting to a federal magistrate judge that he violated the Migratory Bird Treaty Act when he shot hawks on and around his property, announced United States Attorney Zachary A. Cunha.
According to information presented to the court, from October 2018 through April 2021, eight injured or deceased hawks were recovered from the vicinity of property owned by Robert J. Ferreira, 65. Ammunition recovered from three of the hawks matched an air rifle belonging to Ferreira.
Appearing before a magistrate judge in federal court in Providence today, Ferreira admitted to using his air rifle to injure three Red-Tailed hawks and a Cooper’s hawk between October 23, 2018, and March 18, 2019. He pleaded guilty to four misdemeanor charges of hunting, taking, killing, or attempting to take or kill migratory birds.
The Migratory Bird Treaty Act protects certain migratory birds, including the Red-Tailed hawk and Cooper hawk, and forbids hunting, capturing, or killing these birds unless authorized by permit.
Ferreira was sentenced on Thursday by Magistrate Judge Lincoln D. Almond to six months of probation.
The case was prosecuted by Assistant U.S. Attorney Denise M. Barton, with the assistance of Assistant U.S. Attorney Christine D. Lowell.
The matter was investigated by U.S. Fish and Wildlife Service, Office of Law Enforcement.
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Poplar Bluff Man Convicted of Methamphetamine Distribution ChargeRead the Press Release
CAPE GIRARDEAU – Jurors in U.S. District Court in Cape Girardeau on Thursday found a Poplar Bluff man guilty of one felony count of possession with intent to distribute methamphetamine.
Evidence and testimony presented at the trial of Deshante R. Nabors showed that on the evening of Aug. 6, 2020, a Poplar Bluff Police Department officer activated his lights and siren and tried to conduct a traffic stop of a Ford Fusion being driven by Nabors. Nabors continued to drive, tossing out a black sock containing meth. Nabors jumped out of the vehicle while it was moving and ran away. He was later found and arrested. He had $1,030 in cash and a clear bag containing more meth in his pocket. There was more methamphetamine and marijuana in the Ford.
Sentencing for Nabors, 33, is scheduled for March 18, 2025. The charge is punishable by up to 20 years in prison.
The case was investigated by the Poplar Bluff Police Department. Assistant U.S. Attorneys Paul Hahn and Christopher Shelton are prosecuting the case.
Plains man sentenced to five years in prison for possessing firearm with obliterated serial numberRead the Press Release
MISSOULA — A Plains man who admitted to a firearms crime after trying to sell a gun with an obliterated serial number was sentenced today to five years in prison, to be followed by three years of supervised release, U.S. Attorney Jesse Laslovich said.
The defendant, Zen York Lowther, 36, pleaded guilty in August to possession of a firearm with an obliterated serial number.
U.S. District Judge Donald W. Molloy presided.
The government alleged in court documents that law enforcement learned Lowther was in possession of firearms and controlled substances and was on state parole for felony burglary and theft. Law enforcement also received information that Lowther was engaged in the sale of firearms. Agents arranged for a confidential source to meet with Lowther to purchase firearms. Lowther agreed to sell two pistols and a shotgun on Aug. 2, 2023 in St. Regis. When Lowther arrived, he was taken into custody. In a search of his vehicle, law enforcement located a 9mm pistol with an obliterated serial number in a bag along with 9mm ammunition. In addition, there was a 12-gauge shotgun on the center bench seat and $5,257. In a search of Lowther’s residence, agents recovered 19 more firearms and two silencers.
The U.S. Attorney’s Office prosecuted the case. The Plains Police Department, Mineral County Sheriff’s Office, Montana Highway Patrol and Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. For more information about Project Safe Neighborhoods, please visit Justice.gov/PSN.
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Pittsburgh Man Sentenced to Three Years of Prison and $100,000 Fine for Bankruptcy and Mail Fraud Conviction Related to South Side PropertyRead the Press Release
PITTSBURGH, Pa. - A resident of Pittsburgh, Pennsylvania, has been sentenced in federal court to 36 months of incarceration, a $100,000 fine, and three years of supervised release on his conviction of bankruptcy fraud and mail fraud, United States Attorney Eric G. Olshan announced today.
United States District Judge Christy Criswell Wiegand imposed the sentence on Prasad Margabandhu, of Pittsburgh’s Mt. Lebanon suburb.
According to information presented to the Court, from March 2019 to June 2022, Margabandhu engaged in a scheme to defraud the bankruptcy court by filing multiple bankruptcy petitions in the names of companies he controlled called “RSP Pittsburgh” and “Shane Tracy Enterprises” solely to delay efforts by creditors such as the mortgage holder and taxing bodies to execute on judgments against a property at 1925 East Carson Street in Pittsburgh. With respect to the charge of mail fraud, Margabandhu admitted that his insurance claim relating to a June 2022 fire that destroyed the East Carson Street property was fraudulent. In particular, Margabandhu admitted that he had made several materially false statements to the company that insured the property.
Margabandhu has been ordered to voluntarily surrender to the United States Marshals Service on January 8, 2025, to begin serving his sentence.
Assistant United States Attorneys Gregory C. Melucci and Shaun E. Sweeney prosecuted this case on behalf of the government.
United States Attorney Olshan commended the Bureau of Alcohol, Tobacco, Firearms and Explosives, Internal Revenue Service, Federal Bureau of Investigation, and Office of the United States Trustee for the investigation leading to the successful prosecution of Margabandhu.
Owner of Milford Chiropractic Clinic Pleads Guilty to Federal Health Care Fraud OffenseRead the Press Release
WILMINGTON, Del. – David C. Weiss, U.S. Attorney for the District of Delaware, announced today that Pierre Charles Moise, age 57, of Apopka, Florida, pleaded guilty on December 10, 2024, in the U.S. District Court for the District of Delaware to concealing from insurance companies the fact that he paid patients to attend his chiropractic clinic. The Honorable U.S. District Judge Jennifer L. Hall accepted the plea.
According to court documents, Moise owned and operated the Wellness Health Center (“WHC”), a chiropractic clinic, in Milford, Delaware. Between at least January 2019 and March 2022, Moise, himself and through others, paid patients who had been in recent car accidents to attend treatment sessions at the WHC irrespective of whether that treatment was needed. At his instruction, WHC employees then submitted claims for reimbursement to insurance companies, who, under Delaware’s no-fault Personal Injury Protection (“PIP”) law, were obligated to pay WHC for that treatment. Moise and WHC received over $630,000 from insurance companies as a result of that fraud scheme.
Moise pleaded guilty to making a false statement relating to health care matters and faces a maximum penalty of five years in prison. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Weiss stated, “Moise defrauded insurance companies out of hundreds of thousands of dollars by taking advantage of Delaware’s PIP laws. Those laws are designed to help put injured individuals back on their feet, not to enrich criminal actors. My office is committed to prosecuting individuals who engage in such criminal schemes that hurt all Delawareans by increasing insurance costs for everyone.”
“Moise’s business model revolved around defrauding automobile insurers. Instead of operating a legitimate chiropractic clinic, he actively sought patients who did not need treatment, paying them to visit his office unnecessarily and then filing fraudulent claims,” said FBI Baltimore Special Agent in Charge William J. DelBagno. “Insurance fraud is not a victimless crime. It costs taxpayers millions of dollars every year. The FBI will continue to collaborate with our partners to ensure those who engage in such deceptive actions are held accountable.”
This case was investigated by the FBI Baltimore Field Office’s Wilmington Resident Agency with assistance from investigators with the Delaware Department of Insurance Fraud Prevention Bureau. Assistant U.S. Attorneys Jesse S. Wenger, Meredith C. Ruggles, and Shamoor Anis are prosecuting the case.
Oroville Hospital to Pay $10.25 Million to Resolve Allegations of Kickbacks and False BillingRead the Press Release
SACRAMENTO, California — Oroville Hospital has agreed to pay $10.25 million to the United States and the State of California to resolve allegations that it violated the False Claims Act and the Anti-Kickback Statute, U.S. Attorney Phillip A. Talbert announced today.
The settlement resolves allegations that Oroville Hospital engaged in an illegal kickback and physician self-referral scheme by paying kickbacks to physicians for patients they admitted to the hospital, and that it knowingly submitted false claims to Medicare and Medi-Cal for medically unnecessary hospital admissions and claims that included false diagnosis codes. Oroville Hospital will pay $9,518,954 to the federal government and $731,046 to the State of California.
“Physicians should make decisions based the best interests of their patients, not their own personal financial interests,” said U.S. Attorney Talbert. “Hospitals engaging in kickback schemes betray the trust placed in them by their communities and distort care decisions that should be untainted by illegal kickbacks. This settlement demonstrates my office’s commitment to preserving the integrity of public healthcare programs and ensuring that the well-being of patients remains paramount.”
“Improperly billing federal health care programs depletes valuable government resources used to provide medical care to millions of Americans,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will continue to advocate for the appropriate use of Medicare and Medicaid funds, and we will pursue health care providers who defraud taxpayers by knowingly submitting false claims.”
The settlement resolves allegations that, to increase hospital admissions, Oroville Hospital illegally paid kickbacks to its physicians who were responsible for deciding whether individuals should be admitted as inpatients. These physicians allegedly received a bonus based on how many patients they admitted, according to the settlement agreement. The settlement also resolves allegations that Oroville Hospital admitted patients as inpatients when it knew inpatient care was not medically necessary. Oroville Hospital then submitted claims to Medicare and Medicaid for inpatient care, which is more expensive. Oroville Hospital further allegedly submitted claims to Medicare and Medicaid that included false diagnosis codes for systemic inflammatory response syndrome (SIRS), resulting in excessive reimbursement to the Hospital.
In connection with the settlement, Oroville Hospital entered into a five-year Corporate Integrity Agreement with the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) that requires, among other requirements, the implementation of a risk assessment and internal review process designed to identify and address evolving compliance risks. The Corporate Integrity Agreement also requires an independent review organization to, among other requirements, annually assess both the medical necessity and appropriateness of select claims billed to Medicare and policies and systems to track arrangements with some referral sources.
The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by Cecilia Guardiola. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. The qui tam case is captioned United States ex rel. Cecilia Guardiola v. Oroville Hosp., Case No. 2:20-CV-1558 (E.D. Cal.). As part of the settlement announced today, Ms. Guardiola will receive approximately $1.8 million.
Assistant U.S. Attorney Steve Tennyson handled the case for the U.S. Attorney’s Office. The resolution obtained in this matter was the result of a coordinated effort between the U.S. Attorney’s Office for the Eastern District of California, the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, the Department of Health and Human Services, Office of the Inspector General, and the California Department of Justice, Division of Medi-Cal Fraud and Elder Abuse.
The claims resolved by this settlement are allegations only, and there has been no determination of liability.
Note: View the settlement here.
Ohio Auction Prevented from Conducting Business Due to Animal Welfare Act ViolationsRead the Press Release
CLEVELAND – A federal court has entered a consent decree to prevent the Mt. Hope Auction Company from conducting business or exhibiting animals without a license. The Millersburg, Ohio company was a holder of a class B dealer license from the U.S. Department of Agriculture (USDA). However, its license renewal was denied due to failing two relicensing inspections and failure to schedule a third, and final, inspection. A USDA license is required to obtain and sell Animal Welfare Act (AWA) regulated animals in commerce. Since 2022, the USDA conducted 11 inspections involving Mt. Hope. All 11 inspections identified multiple violations of AWA regulations and standards.
Under the consent decree, the Mt. Hope Auction agrees not to deal in or exhibit AWA-regulated animals without a license, and to allow the USDA access to ensure compliance with this provision. Moreover, if the Mt. Hope Auction applies for and obtains a new USDA license within the next three years, it agrees to a two-year probationary period.
A civil complaint filed in September against Mt. Hope Auction alleged that it placed animals in serious danger and violated the AWA during their three-day, Mid-Ohio Alternative Animal and Bird Sales which it held three times a year. Each of these auctions featured thousands of animals and included more than 200 domestic and exotic species such a sheep, rabbits, parrots, bobcats, red kangaroos, giraffes, Egyptian fruit bats, and sloths. Endangered species such as ring-tailed lemurs were also included in the auction.
If Mt. Hope Auction were to obtain a new USDA license, it would do so under a probationary period and agree to comply with AWA requirements to provide adequate veterinary care to animals consigned at the auctions; handle animals carefully; prevent the public from contacting animals without a responsible employee present; ensure that all facilities and enclosures are sanitary, in good repair and meet the minimum AWA standards; and create and maintain complete and accurate records. Mt. Hope also agrees to maintain veterinary records to allow for future monitoring of veterinary care. If Mt. Hope repeatedly violates the same AWA regulations and standards during the probationary period, its AWA license will be permanently revoked.
“In recent years, Mt. Hope Auction has auctioned off more than 5,000 animals annually, which underscores the widespread effect of their violations,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “The company’s ‘business as usual’ approach — risking injury, illness and harm to the animals at its auctions — will not continue. It is important for auction houses dealing in regulated animals to abide by the Animal Welfare Act and provide humane treatment to the animals that come through their doors.”
“USDA is committed to ensuring the safety and wellbeing of animals protected under the Animal Welfare Act,” said Deputy Administrator Sarah Helming for USDA’s Animal Care program. “The partnership between USDA and DOJ helps to ensure enforcement of the AWA regulations for those who put regulated animals at risk.”
“Despite numerous opportunities to correct their business practices, Mt. Hope Auction chose not to comply,” said Rebecca Lutzko, U.S. Attorney for the Northern District of Ohio. “Their complete disregard for the laws regarding animal welfare and treatment placed both these animals and the public at large in danger. As this case demonstrates, we will hold accountable businesses that seek to profit from treating animals inhumanely.”
At the time of the complaint filing, Mt. Hope had been cited for 69 AWA violations in less than two years. This included repeated violations for failing to provide veterinary care to sick or injured animals. In one instance, inspectors saw a calf unable to stand, with its legs splayed in an abnormal position and a member of the public reported that the calf had been in the same position since the day before. Other violations reported in court documents include Asian antelopes and cattle that were so emaciated that their ribs, scapula, pelvic bones, and individual vertebrae were visible; sheep and exotic cattle with diarrhea on their hind legs, a fox with eye discharge, birds with feather loss; and a pheasant with a wound on top of its head that was bleeding and its neck matted down from blood drainage as it lay lethargic with little to no reaction to the loud surrounding environment.
The investigation also determined that animal enclosures were unsafe, improperly constructed, unsanitary, damaged or broken, too small, or did not provide adequate ventilation. Several animals were found covered in excrement or unable to move. Court documents further revealed that there was a lack of sufficient food and water for animals. Inspectors discovered rabbits that had been deprived of food and water. Once provided with water, one rabbit drank for more than 40 seconds, a nursing rabbit drank for more than two-and-a-half minutes, and a third rabbit drank for over four minutes.
Mt. Hope also allowed the public to touch animals — including potentially dangerous coyotes, fox and bison — without proper barriers or employee supervision. The complaint also alleged that Mt. Hope had accepted hundreds of animals from sellers who did not hold a USDA license when they were required.
The court entered a temporary restraining order against Mt. Hope on Sept. 13, requiring the auction company to comply with several AWA requirements at its September Alternative Animal and Bird Sale. Mt. Hope canceled that sale. Mt. Hope’s USDA license was set to expire at the end of September, and after failing to demonstrate compliance at two inspections, Mt. Hope declined the third and final opportunity for a re-licensing inspection and terminated the re-licensing process.
The USDA investigated this case. Senior Trial Attorney Devon Flanagan and Trial Attorneys Kamela Caschette and Taylor Mayhall of the Environment and Natural Resources Division’s Wildlife and Marine Resources Section prosecuted the case, with the assistance of Assistant U.S. Attorneys Kathryn Andrachik and Elizabeth Deucher for the Northern District of Ohio.
To report animal welfare violations, visit https://www.aphis.usda.gov/awa/regulatory-enforcement/complaint.
mt_hope_complaint.pdf signed_consent_decree.pdfOahu Basketball Coach Pleads Guilty to Child Exploitation and Harassment Offenses Involving Ten VictimsRead the Press Release
HONOLULU – United States Attorney Clare E. Connors announced that Dwayne Yuen, a 51-year-old resident of Honolulu, pleaded guilty today to all six counts in a First Superseding Indictment and six counts in a filed Information charging him with child exploitation and harassment offenses. Specifically, Yuen pleaded guilty to committing crimes against three minor victims, including sex trafficking Minor Victim 1 in 2005 and 2006; coercing and enticing Minor Victim 2 to engage in sexual activity in 2006; and producing, receiving, and possessing child pornography of Minor Victim 3 in and around 2020 to 2023. He also pled guilty to harassing victims identified in court documents as Victims 4 through 10 through anonymous and obscene communications in and around 2021 to 2023. The Federal Bureau of Investigation arrested Yuen in February 2023, and he has been detained at the Federal Detention Center in Honolulu since his arrest.
Court pleadings and information in court hearings describe a course of criminal conduct spanning nearly two decades. Yuen was a youth basketball coach of mostly middle school- and high school-aged girls. He coached both private club teams and teams at various private and public schools on Oahu. Minor victims 1 to 3 and Victims 4 to 10 were all basketball players coached by Yuen. Victims 4 through 9 were at or near eighteen years old when Yuen sent the harassing and sexually explicit communications, and Victim 10 was seventeen years old.
“Cases involving the exploitation of minors by those they trust often span years, including because perpetrators spend time grooming their targets, who then may delay reporting the crimes for various reasons,” said United States Attorney Clare E. Connors. “This case represents a concerted, persistent effort by law enforcement, advocates, and the targets themselves to seek justice and healing in the criminal system.”
Yuen’s sentencing date is set for April 3, 2025, before the Honorable J. Michael Seabright, Senior United States District Judge. Yuen faces a mandatory fifteen years in prison and up to 144 years in prison for all twelve of the offenses to which he pleaded guilty. Yuen also faces a term of supervised release of up to life, mandatory restitution, and must register as a sex offender.
The FBI is investigating the case, and the prosecution is being handled by Assistant U.S. Attorney Rebecca Perlmutter and Trial Attorney Gwendelynn Bills of the U.S. Department of Justice’s Child Exploitation and Obscenity Section.
North Platte Woman Sentenced to over 3 Years for Distribution of MethamphetamineRead the Press Release
United States Attorney Susan Lehr announced that Jessica Binegar, a/k/a “Jessica Keo”, age 38, of North Platte, Nebraska was sentenced on December 12, 2024, in federal court in Lincoln, Nebraska for one count of distribution of 5 grams or more of meth. United States District Judge Susan M. Bazis sentenced Binegar to a total of 43 months’ imprisonment. There is no parole in the federal system. After Binegar’s release from prison, she will begin a 3-year term of supervised release.
Beginning in 2021, the FBI and CODE Drug Task Force opened an investigation into drug trafficking in the North Platte area. March of 2022, law enforcement set up a controlled buy over Facebook with a Confidential Informant (“CI”). In the course of the buy, Binegar was observed approaching the buy location. She was also heard on the recorded audio associated with the buy. Through surveillance and debriefings, law enforcement learned that Binegar was the source of the meth that was sold during the controlled buy.
The meth purchased by the CI was turned over to law enforcement and sent to the Nebraska State Patrol Crime Lab, where it was confirmed to be 12.9 grams of meth with 100% purity for 12 grams of actual meth.
Subsequently, law enforcement was able to conduct three additional controlled buys with Binegar, all for meth.
This case was investigated by the CODE Task Force which is made up of law enforcement agencies throughout a 22-county area in west-central/southwest Nebraska and includes the North Platte Police Department, Dawson County Sheriff’s Office, Lincoln County Sheriff’s Office, Red Willow County Sheriff’s Office, Frontier County Sheriff’s Office, Nebraska State Patrol, Federal Bureau of Investigation (FBI), Drug Enforcement Administration (DEA), and Homeland Security Investigations (HSI).
North Platte Man Sentenced to 10 Years for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Susan Lehr announced that Joey G, Romero, age 37, of North Platte, was sentenced on December 12, 2024, in federal court in Lincoln, Nebraska for one count of conspiracy to distribute 50 grams or more of methamphetamine. United States District Judge Susan M. Bazis sentenced Romero to a total of 120 months’ imprisonment. There is no parole in the federal system. After Romero’s release from prison, he will begin a 5-year term of supervised release.
Between July 2022 and February 2023, Romero, Jamie Hopkins, Michael Stroble, Luke Schwartz, and others conspired to sell meth in and around North Platte, Nebraska. The group was responsible for the distribution of pounds of meth and was subject to multiple controlled buys, search warrants, and arrests. During the life of the conspiracy, a Confidential Informant (“CI”) made purchases from each co-conspirator.
In July and August 2022, a CI made five controlled buys from Hopkins and Romero. In these buys, the CI purchased 26 grams of meth and 10 pills. The pills later tested positive for meth and fentanyl.
In addition to the CI, three other informants provided information on Romero’s role in the conspiracy.
Schwartz was sentenced August 22, 2024, to 120 months imprisonment. Hopkins was sentenced on October 17, 2024, to 120 months imprisonment.
Stroble’s case is pending and he is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case was investigated by the CODE Task Force which is made up of law enforcement agencies throughout a 22-county area in west-central/southwest Nebraska and includes the North Platte Police Department, Lexington Police Department, Dawson County Sheriff’s Office, Ogallala Police Department, Nebraska State Patrol, Federal Bureau of Investigation (FBI), and Homeland Security Investigations (HSI).
North Andover Man Pleads Guilty to Possessing over 30 Firearms and Explosives as a Convicted FelonRead the Press Release
BOSTON – A North Andover, Mass. man pleaded guilty yesterday in federal court in Boston to possessing over 30 firearms and explosives as a convicted felon.
Daniel Medina, 64, pleaded guilty to unlawful possession of a machine gun, unlawful possession of explosives and as a felon in possession of firearms and ammunition. U.S. District Court Judge Patti B. Saris scheduled sentencing for April 3, 2025. In October 2024, Medina was charged by criminal complaint.
On July 1, 2024, law enforcement was dispatched to the area of Medina’s North Andover residence after receiving a report of an explosion. Upon arrival, damage to two vehicles was observed as well as a piece of mail addressed to Medina beneath the damaged rear passenger door of one vehicle. The damages to the vehicles and materials left behind were consistent with common items used in manufacturing homemade explosive devices, specifically ball bearings or shrapnel. Witnesses observed Medina running from the damaged vehicles toward his residence following the explosion.
During a search of Medina’s residence the following day, the following items were seized:v32 firearms, including 12 rifles, 15 pistols, three shotguns and two antique firearms; 9,000 rounds of various calibers of modern ammunition manufactured outside of Massachusetts; 75 magazines for various caliber firearms; various firearm parts; a Glock switch device; books pertaining to the building of firearms and manufacturing of explosives and drugs; shrapnel accessories such as BB’s and ball bearings; multiple firework containers; and various containers of powders produced and shipped in interstate commerce.Potassium chlorate and aluminum powder – the same flash powder found in the suspected explosive material used for the prior day’s explosion – were found in the containers.
Medina is prohibited from possessing firearms, ammunition and explosive material due to a 2002 state conviction of assault and battery in Lawrence District Court, for which he was sentenced to two and a half years in jail.
The charge of being a felon in possession of a firearm and ammunition provides for a sentence of up to 15 years in prison, three years of supervised release and a fine of up to
$250,000. The charge of illegal possession of a machine gun provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000. The charge of illegal possession of an explosive material provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.United States Attorney Joshua S. Levy and James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division made the announcement today. Valuable assistance was provided by the North Andover Police Department, Massachusetts State Police and the Essex County District Attorney’s Office. Assistant U.S. Attorney Luke A. Goldworm of the Major Crimes Unit is prosecuting the case.
Norfolk fentanyl trafficker sentenced to over 14 years in prisonRead the Press Release
NORFOLK, Va. – A Norfolk woman was sentenced today to 14 years and six months in prison for fentanyl trafficking.
According to court documents, in December 2023, Homeland Security Investigations (HSI) intercepted a parcel containing one pound of cocaine that was sent from a UPS store in Chula Vista, California, to an address in Norfolk. On Dec. 13, 2023, a controlled delivery was conducted at the intended address. A coconspirator collected the package and started driving in the direction of the residence of Felisha Alexander, aka Fe, 48. Upon realizing law enforcement was following, the co-conspirator threw the parcel from the car.
During the roadside detention and investigation of the coconspirator after the car was stopped, investigators observed Alexander watching and video recording the detention and arrest of the co-conspirator. A short time later, Investigators saw Alexander and a second coconspirator leaving Alexander’s residence. The second coconspirator placed a backpack in the trunk of a vehicle parked directly in front of the residence. With consent and based on a canine alert, investigators searched the vehicle and Alexander’s residence.
Investigators recovered the backpack, which contained 1,779 grams of a mixture of para-fluorofentanyl and fentanyl as well as 2,815 fentanyl pills pressed to appear like legitimate medicine. From Alexander's residence, investigators recovered numerous tracking receipts for shipped parcels, a loaded handgun, and approximately $82,000.
A search of cellphones recovered during the investigation contained communications between Alexander and a third co-conspirator coordinating the shipping and distribution of controlled substances as well as multiple photos of large quantities of suspected methamphetamine, heroin, and other controlled substances and large quantities of money.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Kai Wah Chan, Special Agent in Charge of HSI Washington, D.C.; Anthony A. Spotswood, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives Washington Field Division; Jarod Forget, Special Agent in Charge for the Drug Enforcement Administration’s Washington Division; Ramin Fatehi, Norfolk Commonwealth’s Attorney; Colonel Gary T. Settle, Virginia State Police Superintendent; and Mark Talbot, Chief of Norfolk Police, made the announcement after sentencing by Chief U.S. District Judge Mark S. Davis.
Special Assistant U.S. Attorney Graham M. Stolle, an Assistant Commonwealth’s Attorney with the Norfolk Commonwealth’s Attorney Office, and Assistant U.S. Attorney Anthony C. Marek prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:24-cr-61.
Nigerian National Extradited to Nebraska to Face Fraud Scheme ChargeRead the Press Release
United States Attorney Susan Lehr announced the extradition of Abiola Kayode, 37, of Nigeria, to the District of Nebraska on a Conspiracy to Commit Wire Fraud Indictment, filed in August 2019 in Omaha, Nebraska. In April 2023, law enforcement authorities in the Republic of Ghana arrested Kayode pursuant to a U.S. request for his extradition. Ghanaian authorities ultimately granted this request and surrendered Kayode to FBI special agents who brought him to the District of Nebraska. Kayode had an initial appearance on the Indictment on December 11, 2024. United States Magistrate Judge Michael D. Nelson ordered Kayode remain detained pending trial.
Kayode, who was on the FBI’s Most Wanted Cyber Criminal List, is alleged to have participated in a business email compromise (BEC) scheme from January 2015 to September 2016. The BEC scheme defrauded businesses in the District of Nebraska and elsewhere of more than $6 million. According to the indictment, Kayode’s co-conspirators posed as the chief executive officer, president, owner, or other executive of the targeted company. Using e-mail accounts spoofed to make it appear as though they were from the company’s true business executive, Kayode’s co-conspirators directed business employees or recipients of the e-mail to complete wire transfers. The business employees, believing the requests were legitimate, complied with the wire transfer requests and wired the money as instructed by Kayode’s co-conspirators.
It is alleged Kayode provided bank account information to the co-conspirators who sent the fraudulent e-mails, and which directed business employees to wire money to accounts controlled by Kayode and others. These bank accounts largely belonged to victims of internet romance scams, who were instructed by co-conspirators to transfer the funds to other bank accounts.
Some of Kayode’s co-conspirators have already been convicted and sentenced. Adewale Aniyeloye, one of the fraudsters sending the spoofed e-mails to the target business, was sentenced in February 2019 to 96 months’ imprisonment and ordered to pay $1,570,938.05 in restitution. Pelumi Fawehinimi, a bank account facilitator, was sentenced in March 2019 to 72 months’ imprisonment and ordered to pay $1,014,159.60 in restitution. Onome Ijomone, a romance scammer, was sentenced in January 2020 to 60 months’ imprisonment and ordered to pay $508,934.40 in restitution after his successful extradition from Poland. Other co-conspirators remain at large. Alex Ogunshakin, a co-conspirator who provided bank accounts for the scheme, was sentenced to 45 months’ imprisonment in October 2024 after his successful extradition from Nigeria.
“Four years ago, we identified six Nigerian nationals suspected of defrauding individual victims and businesses in Nebraska and other states of millions of dollars,” said FBI Omaha Special Agent in Charge Eugene Kowel. “Today, Abiola Kayode is the second of those co-conspirators to be extradited to stand trial in Nebraska. Our message to the remaining four co-conspirators; we are coming for you. Dismantling cyber-criminal groups that victimize U.S. citizens is a priority for the FBI, DOJ, and our international law enforcement partners. The FBI, working together with our partners in Ghana, particularly the Office of the Attorney General and Ministry of Justice, the Ghana Police Service - INTERPOL, and the Ghana Immigration Service, will continue to pursue and bring to justice criminals who engage in Business Email Compromise and other fraud schemes.”
This case was investigated by the Federal Bureau of Investigation. The Department of Justice’s Office of International Affairs provided significant assistance in securing Kayode’s extradition.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Newberry County Man Charged in Fatal Shooting of SLED K9 Indicted for Gun ChargeRead the Press Release
COLUMBIA, S.C. — A federal grand jury in Columbia returned a single-count indictment against James Robert Peterson, 37, of Prosperity, for being a felon in possession of a firearm.
The indictment alleges that on June 11, Peterson was found in possession of firearm during an incident where he allegedly shot and killed South Carolina Law Enforcement Division (SLED) K9 Agent Coba while law enforcement was attempting to arrest him. Peterson has been charged in state court for a number of other charges related to the incident. Peterson has a previous felony conviction that prevents him from possessing a firearm.
Peterson faces a maximum penalty of 15 years in federal prison and is currently detained awaiting trial.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the South Carolina Law Enforcement Division, the Newberry County Sheriff's Office, and the Lexington County Sheriff’s Department. Assistant U.S. Attorney Elle E. Klein is prosecuting the case.
U.S. Attorney Adair F. Boroughs stated that all charges in the indictment are merely accusations and that defendants are presumed innocent unless and until proven guilty.
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New York-Based Businessman Admits $5.3 Million Health Care Fraud and Kickback ConspiracyRead the Press Release
NEWARK, N.J. – A New York-based businessman admitted his role in a health care fraud and illegal kickback conspiracy, Attorney for the United States Vikas Khanna announced today.
Mansinh Chaudhari, aka “Monsi Koova,” 55, of Illinois, pleaded guilty today before U.S. District Judge Michael E. Farbiarz in Newark federal court to an information charging him with conspiracy to commit health care fraud and conspiracy to violate the Federal Anti-Kickback statute.
According to documents filed in the case and statements made in court:
Chaudhari owned, operated, and had a financial interest in a New York-based consulting company that purchased information associated with prospective Medicare beneficiaries amounting to a guarantee that Medicare would reimburse the purchase of COVID-19 tests. Chaudhari then sold beneficiary information to medical providers in New Jersey, Tennessee, Colorado, Connecticut, Utah, and elsewhere, so the medical providers could use that information to submit or cause the submission to Medicare of claims for up to eight OTC COVID-19 tests per month that beneficiaries did not need and had not ordered.
Chaudhari and the medical providers attempted to conceal their arrangements by entering into sham agreements. He also issued fraudulent invoices to the medical providers that solicited payment for marketing, consulting, or fulfillment. In total, Chaudhari and his conspirators caused a loss to Medicare of more than $5.3 million.
Conspiracy to commit health care fraud is punishable by a maximum of 10 years in prison and conspiracy to violate the Federal Anti-Kickback Statute is punishable by a maximum of five years in prison. Each count is also punishable by a $250,000 fine, or twice the gross gain or loss from the offense, whichever is greatest. Sentencing is scheduled for April 29, 2025.
Attorney for the United States Khanna credited special agents of the FBI, under the direction of Acting Special Agent in Charge Nelson I. Delgado in Newark; the Department of Health and Human Services-Office of Inspector General, under the direction of Acting Special Agent in Charge Naomi Gruchacz; the U.S. Department of Defense, Office of the Inspector General, Defense Criminal Investigative Service, under the direction of Special Agent in Charge Patrick 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 the guilty plea.
The government is represented by Assistant U.S. Attorney Matthew Specht of the Special Prosecutions Division under the supervision of the Opioid Abuse Prevention and Enforcement Unit.
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Defense counsel: Paul D’Emilia Esq., New York
chaudhari.information.pdfNew York Doctor Pleads Guilty to Receiving KickbacksRead the Press Release
BOSTON – A New York doctor pleaded guilty today in federal court in Boston to receiving kickbacks in exchange for ordering medically unnecessary brain scans.
Dr. Vishnudat Seodat, 75, of Mattituck, N.Y. pleaded guilty to one count of conspiracy to commit health care fraud. U.S. District Court Judge Nathaniel M. Gorton scheduled sentencing for March 11, 2025. Seodat was charged by criminal complaint in December 2024.
Seodat, an internist in Long Island, N.Y., was a licensed medical doctor in the State of New York for approximately 36 years. From approximately June 2013 through June 2019, Seodat conspired with others, including a principal for a mobile medical diagnostics company that performed transcranial doppler (TCD) scans, to order hundreds of medically unnecessary TCD scans in exchange for kickbacks. TCD scans are brain scans that measure blood flow in parts of the brain. Seodat and his alleged co-conspirators used false diagnoses to order the unnecessary brain scans, for which a co-conspirator would submit claims to Medicare and other insurance companies, including private insurance companies, on behalf of the medical diagnostic company for payment. In exchange, Seodat was paid cash kickbacks of approximately $100 per test. The scheme resulted in fraudulent bills of approximately $1 million to Medicare and private insurance companies.
The charge of conspiracy to commit health care fraud provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Joshua S. Levy; Roberto Coviello, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Jonathan Wlodyka, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation Division, Boston Field Office; Carol S. Hamilton, Regional Director of the U.S. Department of Labor, Employee Benefits Security Administration, Boston Regional Office; Ketty Larco-Ward, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division; and Christopher Algieri, Special Agent in Charge of the U.S. Department of Veterans Affairs Office of Inspector General, Northeast Field Office made the announcement. Assistant U.S. Attorneys Howard Locker and Mackenzie Queenin of the Health Care Fraud Unit are prosecuting the case
New Orleans Man Pleads Guilty to Federal Drug and Weapons ViolationsRead the Press Release
NEW ORLEANS, LOUISIANA –CYRIL HOFFMAN, JR. (“HOFFMAN”), age 26, a resident of New Orleans, pled guilty on December 10, 2024 before U.S. District Judge Darrel J. Papillion to two counts of possession with intent to distribute marijuana, in violation of 21 U.S.C. §§ 841(a)(1) and 841(b)(1)(D); possession of a firearm in furtherance of a drug trafficking crime, in violation of 18 U.S.C. § 924(c)(1)(A)(i); and receipt of a firearm while under indictment, in violation of 18 U.S.C. §§ 922(n) and 924(a)(1)(D).
According to court documents, the Federal Bureau of Investigation (FBI) executed a search warrant at HOFFMAN’s residence on August 20, 2021. FBI personnel recovered marijuana that HOFFMAN intended to sell and six firearms from HOFFMAN’s bedroom. Specifically, the FBI recovered a Brothers LA Arms .300 millimeter caliber semi-automatic pistol, loaded with a 60 round magazine; a Palmetto State Armory Model PA-15, .223/5.56 millimeter caliber semi-automatic rifle, loaded with a 30 round magazine; an Anderson Manufacturing Model AM-15, 5.56 millimeter caliber semi-automatic pistol, loaded with a high-capacity magazine containing live rounds; a Glock Model 23, .40 caliber semi-automatic pistol, loaded with 20 live rounds; a Glock Model 19, 9 millimeter semi-automatic pistol, loaded with 14 live rounds; and a Glock Model 17, 9 millimeter semi-automatic pistol, loaded with 17 live rounds.
A few weeks before the execution of the search warrant, HOFFMAN was indicted in Orleans Parish Criminal District Court for six felony offenses, including four counts of attempted second degree murder and one count of conspiracy to commit second degree murder. Following the search warrant, HOFFMAN was arrested on those charges but bonded out of jail in June 2022. On October 25, 2022, while still under indictment and awaiting trial in Orleans Parish, deputies with the United States Marshals Service encountered HOFFMAN inside a motel room in New Orleans East. There was a Glock Model 22, .40 caliber firearm inside the room, which HOFFMAN denied was his. However, the FBI later found messages that HOFFMAN sent to a third-party admitting he was in possession of the gun. HOFFMAN continued to sell marijuana while on bond and on May 17, 2023, FBI personnel executed another search warrant at HOFFMAN’s new residence and recovered marijuana, digital scales, and packaging supplies for distribution.
As to each of his convictions for possession with intent to distribute marijuana, HOFFMAN faces up to five years in prison and a minimum of two years of supervised release. As to his conviction for possessing a firearm in furtherance of that drug trafficking crime, he faces a mandatory minimum sentence of five years up to life in prison, which must run consecutively to any other sentence, and up to three years of supervised release. As to his conviction for receipt of a firearm while under indictment, he faces up to 5 years in prison and up to three years of supervised release. Each count also carries up to a $250,000 fine and a mandatory special assessment fee of $100.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The case was investigated by Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney David Berman of the Violent Crime Unit.
New London Man Sentenced to 12 Years in Federal Prison for Trafficking FentanylRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that WILLIAM CARABALLO, III, also known as “Wilo” and “Couzzo,” 41, of New London, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to 144 months of imprisonment, followed by five years of supervised release, for trafficking fentanyl.
According to court documents and statements made in court, on four occasions between March and May 2020, an undercover law enforcement officer purchased heroin/fentanyl from Cruz J. Bonilla. During the investigation, law enforcement identified Caraballo as Bonilla’s drug supplier and learned that Caraballo regularly transported kilogram quantities of heroin/fentanyl from New York to southeastern Connecticut for distribution. On June 6, 2020, investigators tracked Caraballo as he traveled to the Bronx, New York, where he stayed for approximately 30 minutes before returning to Connecticut. Connecticut State Police stopped Caraballo’s vehicle on I-95 North in Connecticut and found him in possession of approximately one kilogram of fentanyl in a heat-sealed bag. Caraballo was arrested on state charges at that time.
Caraballo has been detained since his federal arrest on October 6, 2020. On June 27, 2024, he pleaded guilty to possession with intent to distribute 400 grams or more of fentanyl.
Caraballo’s criminal history includes an assault conviction in 2002 related to his shooting an individual in the arm after an argument about a football game, a conviction for stabbing a relative in the chest with a pocketknife in 2013, drug convictions, and convictions for other offenses.
On July 30, 2024, Bonilla pleaded guilty to possession with intent to distribute, and distribution of, a controlled substance, and also admitted that he violated the conditions of his supervised release that followed a prior federal conviction. He is detained while awaiting sentencing.
This investigation was conducted by the Drug Enforcement Administration, the Connecticut State Police, and the Connecticut Statewide Narcotics Taskforce East. The case was prosecuted by Assistant U.S. Attorneys Konstantin Lantsman and Natasha M. Freismuth.
Monongalia County Woman Sentenced to 14 Years for Drug TraffickingRead the Press Release
CLARKSBURG, WEST VIRGINIA – Anette Sanabria-Velez, 40, of Morgantown and Granville, West Virginia, was sentenced today to 168 months in federal prison for possession with intent to distribute cocaine hydrochloride.
According to court documents and statements made in court, Sanabria-Velez was trafficking cocaine in Monongalia County, sometimes from her home. She would travel to Puerto Rico to order drugs that would then be shipped to various locations in West Virginia and Maryland for distribution. Through the course of the investigation, more than four kilograms of cocaine was seized from Sanabria-Velez’s vehicle and residence.
Sanabria-Velez will serve three years of supervised release following her prison sentence.
Assistant U.S. Attorney Zelda Wesley prosecuted the case on behalf of the government.
The Drug Enforcement Administration investigated.
Chief U.S. District Court Judge Thomas S. Kleeh presided.
Mishawaka Man Sentenced to 12 Months in PrisonRead the Press Release
SOUTH BEND – Joseph Traver, 35 years old, of Mishawaka, Indiana, was sentenced by United States District Court Judge Damon R. Leichty after pleading guilty to bank fraud and possession of stolen mail, announced United States Attorney Clifford D. Johnson.
Traver was sentenced to 12 months in prison followed by 2 years of supervised release.
According to documents in the case, between September 2023 and January 2024, Traver stole mail out of official collection boxes that were located outside the United States Post Office in Osceola, Indiana. He intercepted checks that had been mailed at that location from at least three identified victims and interrupted postal delivery of the mail. He also altered one check from the stolen mail matter and fraudulently deposited the check at a financial institution.
This case was investigated by the United States Postal Inspection Service with assistance from the St. Joseph County Police Department. The case was prosecuted by Assistant United States Attorney Hannah T. Jones.
Michigan Businessman Convicted of PPP Loan FraudRead the Press Release
A federal jury convicted a Michigan businessman today of wire fraud for fraudulently obtaining a Payroll Protection Program (PPP) loan and loan forgiveness.
According to court documents and evidence presented at trial, Dale Thrush, of Farwell, owned and operated several automotive repair service locations and a gas station. From approximately February 2021 through September 2021, Thrush defrauded the Small Business Administration (SBA) by falsely representing to a bank and the SBA in an application for a PPP loan that he was not subject to an indictment, when in fact he was, and then by seeking forgiveness of that loan. The PPP was enacted as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, a law designed to provide emergency financial assistance to the millions of Americans feeling the economic effects caused by the COVID-19 pandemic.
Thrush is scheduled to be sentenced on July 17, 2025. He faces a maximum penalty of 20 years in prison for wire fraud. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Dawn Ison for the Eastern District of Michigan made the announcement.
IRS-Criminal Investigation is investigating the case.
Trial Attorneys Mark McDonald and Evan Mulbry of the Justice Department’s Tax Division are prosecuting the case.
Maryland Woman Sentenced for Role in Million Dollar Fraud Scheme at New Orleans Marine Forces Reserve FacilityRead the Press Release
NEW ORLEANS – United States Attorney Duane A. Evans announced that on December 10, 2024, KAMILA HORAKOVA DUDLEY (“DUDLEY”), age 43, of Silver Spring, Maryland, was sentenced to 3 years probation, payment of a $100.00 mandatory special assessment fee, and restitution in the amount of $473,702.43 by United States District Judge Greg G. Guidry. DUDLEY previously pled guilty to misprision of a felony, namely, wire fraud, in violation of 18 U.S.C. § 4.
According to court documents, DUDLEY was employed by Company A from September 2008 through March 2023; and, from March 2017 through November 2018, she served as Company A’s office manager. As Company A’s office manager, DUDLEY, among other things, prepared and submitted Company A’s invoices for payment.
In approximately March 2017, Company A subcontracted with Company B to provide onsite support services at the Marine Forces Reserve (MARFORRES) facility in New Orleans, Louisiana. Company A, by and through multiple employees, committed wire fraud by knowingly submitting materially false invoices to Company B, knowing that Company B would, in turn, present the false information to the United States for payment. From March 2017 through November 2018, Company A billed the United States, through Company B, for services not provided. The fraudulent invoices included the names of Company A’s executives, who performed no work at MARFORRES. The fraudulent invoices also included the names of certain individuals who worked full-time on a separate contract at a separate facility and, thus, performed no work at MARFORRES. Because neither Company B nor the United States, was aware of the fraudulent nature of the invoices, Company A was paid approximately $1,300,000 under the subcontract.
Despite having knowledge of these events, that constituted wire fraud, DUDLEY did not make known the information and, further, attempted to conceal it. For example, on or about October 31, 2017, DUDLEY was notified by one of her colleagues that Company A’s cost submissions contained the names of individuals who worked on a separate contract and who performed no work at MARFORRES. DUDLEY did not make that information known, including the fact that prior invoices containing those names were false and fraudulent. DUDLEY resumed the preparation and submission of Company A’s invoices, removed only the challenged names, and concealed the fraudulent nature of the earlier submissions.
“Ms. Dudley’s submission of false invoices to the Department of the Navy for payment represents a disservice to the U.S. Government and American taxpayers,” said Special Agent in Charge Greg Gross of the Naval Criminal Investigative Service (NCIS) Economic Crimes Field Office. “NCIS remains committed to conducting thorough investigations that protect service members from the threats posed by procurement fraud, safeguard the integrity of the defense acquisition process, and preserve warfighting readiness.”
U.S. Attorney Evans praised the work of the special agents of the Naval Criminal Investigative Service, the Defense Criminal Investigative Service, and members of the Defense Contract Audit Agency. The case was prosecuted by Assistant United States Attorney Andre J. Lagarde of the Public Integrity Unit.
Louisiana Fugitive Sentenced to Federal Prison for Possessing Loaded FirearmRead the Press Release
Fort Myers, Florida – U.S. District Judge Thomas P. Barber today sentenced Sammie Ray Sewell, Jr. (43, Alexandria, LA) to five years in federal prison for possessing a firearm and ammunition as a convicted felon. The court also ordered Sewell to forfeit the firearm and ammunition, which were possessed during the offense. Sewell entered a guilty plea on September 16, 2024.
According to court documents, a detective from the Lee County Sheriff’s Office located Sewell at a Fort Myers hotel with a chamber loaded pistol with an extended magazine. At the time, Sewell had extraditable warrants out of Louisiana and was a convicted felon. As a convicted felon, Sewell is prohibited by federal law from possessing firearms or ammunition.
This case was investigated by the Lee County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorney Mark Morgan.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make out neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in first place, setting focused and strategic enforcement priorities, and measuring the results.
Long Beach Man Sentenced to More Than 6 Years in Prison for Daylight Smash-and-Grab Robbery of Beverly Hills Jewelry StoreRead the Press Release
LOS ANGELES – A Long Beach man was sentenced today to 80 months in federal prison for participating in the March 2022 daylight smash-and-grab robbery of a Beverly Hills jewelry store in which nearly $2.7 million worth of merchandise was stolen.
Jimmy Lee Vernon III, 33, was sentenced by United States District Judge George H. Wu, who also ordered Vernon to pay $2,674,600 in restitution.
Vernon pleaded guilty on August 1 to one count of interference with commerce by robbery (Hobbs Act). He has been in federal custody since September 2022.
“This defendant took part in a blatant assault on a store operating in daylight hours, believing he could rob and intimidate others with impunity,” said United States Attorney Martin Estrada. “Now, he will serve a lengthy sentence in federal prison. Our office and our law enforcement partners will not tolerate these sorts of brazen attacks on our community.”
On March 22, 2022, Vernon committed a robbery of the Luxury Jewels of Beverly Hills store. Vernon used heavy tools to smash the store’s display case while employees were present, causing fear of injury to people inside the store.
Vernon then removed jewelry and other items from the store display cases valued at approximately $2,674,600. The merchandise consisted of approximately 19 bracelets, seven pairs of earrings, four necklaces, a pair of obelisks, eight rings, and 20 watches.
After the robbery, Vernon and his accomplices ran out of the store, leaving behind their Kia vehicle – which had been reported stolen out of Long Beach four days before the robbery. During the robbery, Vernon’s cellphone fell out of his sweatpants pocket while he smashed the jewelry store’s window, was left behind and later recovered by law enforcement, according to an affidavit previously filed in this case.
Two days after the robbery, one of Vernon’s accomplices posted on his Instagram account numerous photographs that included large stacks of money and a message praising his “robbery gang,” according to court documents.
As for Vernon’s co-defendants, Deshon Bell, 22, of Long Beach, pleaded guilty in December 2023 to one count of Hobbs Act robbery and is serving a federal prison sentence of one year and one day. Ladell Tharpe, 39, of Long Beach, pleaded guilty on September 30 to one count of Hobbs Act robbery and awaits a January 6, 2025, sentencing hearing.
The FBI and the Beverly Hills Police Department investigated this matter.
Assistant United States Attorneys Kevin J. Butler of the Violent and Organized Crime Section and Kevin B. Reidy of the Major Frauds Section prosecuted this case.
LaPorte Man Sentenced to 120 Months in PrisonRead the Press Release
SOUTH BEND – Matthew Frazier, 51 years old, of LaPorte, Indiana, was sentenced by United States District Court Judge Damon R. Leichty after being found guilty of possession of child pornography following a one-day trial, announced United States Attorney Clifford D. Johnson.
Frazier was sentenced to 120 months in prison followed by 7 years of supervised release.
According to documents in the case, in September 2022, Frazier was on probation for prior state court convictions of child exploitation and possession of child pornography. A search of his residence resulted in the recovery of an electronic device which contained 18 photos and 18 videos of child sexual abuse material.
This case was investigated by Homeland Security Investigations with assistance from the Indiana State Police Internet Crimes Against Children Task Force and the Michigan City Police Department. The case was prosecuted by Assistant United States Attorneys Hannah T Jones and Jerome W. McKeever.
The case was brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov
Kentucky Nurse Pleads Guilty to Opioid Diversion SchemeRead the Press Release
BECKLEY, W.Va. – Jacqueline Brewster, 54, of Belfry, Kentucky, pleaded guilty on Wednesday, December 11, 2024, to obtaining a controlled substance by fraud and wrongful disclosure of individually identifiable health information.
According to court documents and statements made in court, Brewster admitted that she unlawfully accessed and used individually identifiable health information of patients at Raleigh General Hospital in Beckley to divert hydromorphone, an opioid, for her personal use. Brewster was employed as a travel nurse at Raleigh General Hospital from September 2021 until February 2022.
To carry out her diversion scheme, Brewster accessed automated controlled substance dispensing machines at Raleigh General Hospital using her personal biometrics and began the process for checking out hydromorphone purportedly for a patient. Once the machine’s drawer opened, Brewster siphoned off a portion of hydromorphone from its vial, diluted the remaining hydromorphone with another substance so the vial would appear full, reattached the cap and returned the vial to the machine drawer. She subsequently canceled the transaction.
Brewster admitted that on one occasion she unlawfully accessed individually identifiable health information and obtained a hydromorphone by fraud occurred on or about February 1, 2022, at Raleigh General Hospital. Brewster further admitted that she carried out her scheme and diverted hydromorphone many times over the course of her employment at Raleigh General Hospital, and that she siphoned the hydromorphone not for any legitimate use.
Brewster is scheduled to be sentenced on April 4, 2025, and faces a maximum penalty of 14 years in prison, up to three years of supervised release, and a $500,000 fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the U.S. Food & Drug Administration–Office of Criminal Investigations (FDA-OCI) Metro Washington Field Office, and the valuable assistance provided by detectives from the West Virginia State Police and the Kentucky State Police.
United States Magistrate Judge Omar J. Aboulhosn presided over the hearing. Assistant United States Attorney Owen Reynolds is prosecuting the case.
This case is part of a strategically coordinated, two-week nationwide law enforcement action that resulted in criminal charges against 193 defendants for their alleged participation in health care fraud and controlled substance abuse schemes that resulted in the submission of over $2.75 billion in alleged false billings. The defendants allegedly defrauded programs entrusted for the care of the elderly and disabled to line their own pockets, and the Government, in connection with the enforcement action, seized over $231 million in cash, luxury vehicles, gold, and other assets.
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. 5:24-cr-104.
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Kapaa Woman Indicted for Scheme to Defraud Coronavirus Rental and Utility Assistance ProgramRead the Press Release
HONOLULU – On December 12, 2024, a federal grand jury returned an eight-count indictment against Kaiaulani C. Kaiawe, also known as Coty K. Duhaylongsod, 46, of Kapaa, Hawaii, charging Kaiawe with wire fraud, aggravated identity theft, and money laundering in connection with fraudulent claims for pandemic-related rental and utility assistance.
The charges in the indictment pertain to the Kauai Coronavirus Rental and Utility Assistance (CRUA) program. In 2021, Congress authorized the creation of Emergency Rental Assistance programs within the Department of the Treasury to fund rent, utility, and other housing-related expense assistance to households that were impacted by the COVID-19 pandemic. In the State of Hawaii, the County of Kauai used ERA funds to establish the CRUA program. The County of Kauai contracted with a local credit union to administer the CRUA program.
According to the indictment, Kaiawe is charged with wire fraud in connection with a scheme to defraud the CRUA program to obtain benefit payments she was not eligible to receive. The CRUA program required eligible claimants to submit an application electronically, using its website, and to provide certain personal information of the claimant, including his or her name and date of birth, as well as a landlord or property manager contact, before certifying that the representations made in the claim were true and accurate. If the credit union approved the claim, rental payments for the claimant were sent directly to the claimant’s landlord or property manager, and utility payments were sent directly to his or her utility company.
The indictment alleges that Kaiawe submitted a false CRUA claim on her own behalf, using her former name, Coty Duhaylongsod, as the claimant, and then listing her then-current name, Kaiawe, as her landlord to improperly receive a CRUA benefit payment. The indictment further alleges that Kaiawe then submitted multiple other false CRUA claims using the personal information of others as claimants, without their knowledge and consent, and then falsely listing herself as their landlord or property manager to obtain additional benefit payments that she was not entitled to receive. Finally, the indictment alleges that Kaiawe submitted other false claims for CRUA benefits that used the identities of acquaintances as landlords or property managers, without their knowledge or consent; for these claims Kaiawe, entered a residential address for the landlord or property manager to receive payment that was within sight of her home, which allowed Kaiawe to intercept the rental assistance program check when it was delivered.
Kaiawe submitted CRUA claims seeking a total of almost $250,000 that she was not eligible to receive. According to the indictment, Kaiawe fraudulently obtained at least approximately $126,026 in CRUA assistance benefits.
“Congress appropriated critically important funds during the COVID-19 pandemic to help people in our community who were struggling,” said United States Attorney Clare E. Connors. “We continue to investigate those who fraudulently obtained federal funds at the expense of those who needed this assistance in order to remain housed, and will hold them accountable.”
Kaiawe is charged with four counts of wire fraud, three counts of aggravated identity theft, and one count of money laundering. Each of the wire fraud counts carries a maximum penalty of 30 years in prison and a fine of up to $1,000,000. Each of the aggravated identity theft counts carries a sentence of two years in prison. The money laundering count carries a maximum penalty of ten years in prison and a fine of up to $250,000 or up to twice the amount of criminally-derived property involved in the transaction. An indictment is merely an accusation, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
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) at 866-720-5721 or online at www.justice.gov/DisasterComplaintForm.
This case is being investigated by the Federal Bureau of Investigation and the Kauai Police Department. It is being prosecuted by Assistant U.S. Attorney Gregg Paris Yates.
Justice Department Secures Agreement with Louisville Metro Government to Reform Louisville Metro’s and Louisville Metro Police Department’s Unconstitutional and Unlawful PracticesRead the Press Release
Remote video URLThe Justice Department announced today that it has entered into a court enforceable agreement with Louisville Metro Government (Louisville Metro) to resolve the Department’s findings that Louisville Metro and the Louisville Metro Police Department (LMPD) engage in a pattern or practice of violations of the Constitution and federal law.
The consent decree, filed today in the U.S. District Court for the Western District of Kentucky, sets forth a blueprint for reform by Louisville Metro and LMPD. The decree sets out specific policies, trainings, and programs that Louisville Metro and LMPD will implement to protect the rights of Louisville residents and promote public safety. The decree requires Louisville Metro and LMPD to collect and analyze data to improve as an agency and to hold officers and Louisville Metro employees accountable. The decree also requires Louisville Metro and LMPD to report on their progress publicly and to involve the community throughout the implementation process.
Under the decree, the parties will jointly recommend that the court appoint an independent monitor to assess Louisville Metro and LMPD’s implementation of the agreement. The independent monitor will regularly report to the public and the court on their progress.
“Nearly five years after Breonna Taylor was shot and killed in her own home in the middle of the night by Louisville Metro Police Department officers, the Justice Department has secured an agreement to enact significant, systemic reforms to policing in Louisville,” said Attorney General Merrick B. Garland. “This agreement addresses the serious violations of federal law that we uncovered during our pattern or practice investigation and puts the city of Louisville and its police department on a path to lasting reform. We are committed to honoring Breonna Taylor through our work to implement the agreement and to make Louisville a better and safer place for all of its residents.”
“In the wake of Breonna Taylor’s tragic killing, the people of Louisville fiercely advocated for racial justice, policing reform and accountability,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “City residents demanded that they receive the constitutional policing that they rightly deserve. Through this consent decree, Louisville and its police department have committed to addressing the violations of the Constitution and federal law we found during our investigation and to making Louisville a place where the police respect everyone’s rights. We look forward to working with city officials, the police department, and the people of Louisville to establish meaningful and lasting reform.”
The Justice Department and Louisville Metro have jointly requested that the court enter the consent decree as an order of the court. The reforms required by the decree will ensure that:
- LMPD officers use appropriate de-escalation techniques and attempt to resolve incidents without force when possible, and use force in a manner that is reasonable, necessary, and proportional to the threat presented;
- LMPD’s applications for residential search warrants articulate specific, individualized, and accurate facts that establish probable cause for everything to be searched and seized, and LMPD officers execute residential search warrants using safe and lawful tactics;
- LMPD officers conduct street enforcement activities, including stops, frisks, searches, and arrests, in a manner that protects people’s rights;
- LMPD enforces the law fairly and impartially, providing equal protection of the law for all people in Louisville and taking steps to reduce unlawful racial disparities in enforcement;
- LMPD officers respect the First Amendment rights of all persons, including the right to criticize and protest police conduct and to observe and record police officers in the public discharge of their duties;
- Louisville Metro and LMPD deploy non-law enforcement deflection teams to situations involving people in behavioral health crisis where police involvement is not necessary, and when it is necessary, LMPD sends specially trained officers to respond;
- LMPD responds to and investigates sexual assault, domestic violence, and sexual misconduct in a thorough, timely, trauma-informed, and bias-free manner;
- Louisville Metro operates a non-police outreach team to respond to situations involving unhoused individuals that do not warrant a law enforcement or behavioral health crisis response;
- LMPD enhances community engagement and solicits input to ensure its policing practices are responsive to community needs;
- Louisville Metro and LMPD put in place effective supervision practices and robust training for officers;
- LMPD officers receive the support they need to do their jobs safely and effectively;
- LMPD develops a recruitment and hiring program designed to attract a diverse, well-qualified array of individuals; and
- LMPD investigates allegations of officer misconduct fully, fairly, and efficiently, and holds all officers who commit misconduct accountable through fair and consistent discipline.
Along with the consent decree, Louisville Metro and the Department have entered into a new agreement in principle committing to create evaluation tools, called Performance Review methodologies, for each section of the consent decree. These tools will identify in detail the specific metrics that the independent monitor will use to determine whether Louisville Metro and LMPD have complied with the terms of the consent decree.
The Justice Department announced its findings in March 2023, following a thorough investigation into Louisville Metro and LMPD, which began in April 2021. The Civil Rights Division’s Special Litigation Section and the Civil Division of the U.S. Attorney’s Office for the Western District of Kentucky conducted the investigation, with the assistance of law enforcement professionals. The Department conducted the investigation pursuant to 34 U.S.C. § 12601, which prohibits law enforcement officers from engaging in a pattern or practice of conduct that deprives people of rights protected by the Constitution or federal law.
The Department will hold a virtual zoom community meeting to discuss the consent decree on Monday, Dec. 16, at 7:30 pm ET. Register for the event at www.zoomgov.com/webinar/register/WN_O8uZMp10QZaMqSLP1bix2Q#/registration. Members of the public are encouraged to attend to learn more about the decree.
Additional information about the Civil Rights Division is available at www.justice.gov/crt. Information specific to the Civil Rights Division’s police reform work can be found at www.justice.gov/crt/conduct-law-enforcement-agencies.
Read the consent decree here.
Read the consent decree fact sheet here.
Read the findings report here.
Justice Department Secures Agreement to Protect Students in Washington State School District from Harassment based on Sex, Race and National OriginRead the Press Release
WASHINGTON — The Justice Department announced today an agreement with Ellensburg School District in Washington State to resolve the department’s investigation into allegations that students were harassed and discriminated against based on sex, race, color and national origin.
The investigation, conducted jointly by the Justice Department’s Civil Rights Division and U.S. Attorney’s Office for the Eastern District of Washington, found that Black, Latino and LGBTQ+ students in the district had endured widespread harassment, including taunts, intimidation, humiliation, epithets, slurs and death threats. Some students also were physically assaulted by other students at school. The school district’s failure to adequately respond despite its knowledge of this harassment left students vulnerable, leading some to miss class, drop school activities, avoid areas of campus and even transfer or leave school altogether.
“All students, whether Black, Latino or LGBTQ+, have a right to attend school free from fear and harassment,” said Assistant Attorney General Kristen Clarke of the Justice Department's Civil Rights Division. “A school should be a place where students feel safe and supported. The department stands by these students and will ensure that schools respond quickly and effectively to protect students if they face harassment.”
“Protecting the civil rights of all students is critical to ensuring a safe learning environment,” said U.S. Attorney Vanessa Waldref for the Eastern District of Washington. “The U.S. Attorney’s Office commends the Ellensburg School District for its full cooperation throughout the investigation and its commitment to improving the educational environment for students through reforming its response to reports of harassment. This agreement will give the district tools to prevent and address harassment and create a healthier and supportive environment for student learning and development.”
The department opened the investigation in August 2023 under Titles IV and VI of the Civil Rights Act of 1964 and Title IX of the Education Amendments of 1972. The department reviewed records from the 2021-22 through 2023-24 school years and interviewed over 100 people, including current and former students, employees and parents. The district fully cooperated during the investigation.
The department’s investigation found that the district failed to take effective action despite being aware of an environment in which Black, Latino and LGBTQ+ students experienced slurs, taunts and physical assaults based on race, national origin and sex. Black students faced frequent use of the N-word and other racial slurs by their classmates; Latino students were openly subjected to epithets like “beaner,” “wetback” and “mixed-breed”; and LGBTQ+ students endured widespread, ongoing and severe sex-based harassment by their peers, including gendered slurs, public graffiti and intimidation. The district’s insufficient response allowed the harassment to continue and even escalate, denying students equal access to the district’s educational programs.
Under the settlement agreement, Ellensburg School District will implement critical reforms including:
- Retaining a third-party consultant to support the school district in implementing the agreement and creating a discrimination-free educational environment for all students;
- Designating a district coordinator to oversee the effective resolution of reports of harassment;
- Designating a Spanish-speaking liaison to Latino families to ensure that the school district hears and responds to their complaints;
- Creating a new electronic reporting system to track and manage all reports of harassment and the district’s responses to such reports;
- Updating policies and procedures to ensure the district responds promptly and effectively to all reports of harassment and provides appropriate support services to affected students;
- Training all staff and students on how to identify and report harassment; and
- Implementing an annual climate assessment through surveys and listening sessions with students, parents, and school employees so that the district can identify and respond to harassment trends and concerns in the school community.
Enforcing civil rights laws to protect students from harassment is a top priority of the Justice Department’s Civil Rights Division. Additional information about the Civil Rights Division is available at www.justice.gov/crt and additional information about the work of the Educational Opportunities Section is available at www.justice.gov/crt/educational-opportunities-section.
Members of the public may report possible civil rights violations at www.civilrights.justice.gov/.
View the agreement in Spanish here.
View the summary of the agreement here.
View the summary of the agreement in Spanish here.
Justice Department Secures Agreement to Protect Students in Washington State School District from Harassment based on Sex, Race and National OriginRead the Press Release
The Justice Department announced today an agreement with Ellensburg School District in Washington State to resolve the department’s investigation into allegations that students were harassed and discriminated against based on sex, race, color and national origin.
The investigation, conducted jointly by the Justice Department’s Civil Rights Division and U.S. Attorney’s Office for the Eastern District of Washington, found that Black, Latino and LGBTQ+ students in the district had endured widespread harassment, including taunts, intimidation, humiliation, epithets, slurs and death threats. Some students also were physically assaulted by other students at school. The school district’s failure to adequately respond despite its knowledge of this harassment left students vulnerable, leading some to miss class, drop school activities, avoid areas of campus and even transfer or leave school altogether.
“All students, whether Black, Latino or LGBTQ+, have a right to attend school free from harassment, intimidation and death threats,” said Assistant Attorney General Kristen Clarke of the Justice Department's Civil Rights Division. “A school should be a place where students feel safe and supported. The department stands by these students and will ensure that schools respond quickly and effectively to protect students if they face harassment.”
“Protecting the civil rights of all students is critical to ensuring a safe learning environment,” said U.S. Attorney Vanessa Waldref for the Eastern District of Washington. “The U.S. Attorney’s Office commends the Ellensburg School District for its full cooperation throughout the investigation and its commitment to improving the educational environment for students through reforming its response to reports of harassment. This agreement will give the district tools to prevent and address harassment and create a healthier and supportive environment for student learning and development.”
The department opened the investigation in August 2023 under Titles IV and VI of the Civil Rights Act of 1964 and Title IX of the Education Amendments of 1972. The department reviewed records from the 2021-22 through 2023-24 school years and interviewed over 100 people, including current and former students, employees and parents. The district fully cooperated during the investigation.
The department’s investigation found that the district failed to take effective action despite being aware of an environment in which Black, Latino and LGBTQ+ students experienced slurs, taunts and physical assaults based on race, national origin and sex. Black students faced frequent use of the N-word and other racial slurs by their classmates; Latino students were openly subjected to epithets like “beaner,” “wetback” and “mixed-breed”; and LGBTQ+ students endured widespread, ongoing and severe sex-based harassment by their peers, including gendered slurs, public graffiti and intimidation. The district’s insufficient response allowed the harassment to continue and even escalate, denying students equal access to the district’s educational programs.
Under the settlement agreement, Ellensburg School District will implement critical reforms including:
- Retaining a third-party consultant to support the school district in implementing the agreement and creating a discrimination-free educational environment for all students;
- Designating a district coordinator to oversee the effective resolution of reports of harassment;
- Designating a Spanish-speaking liaison to Latino families to ensure that the school district hears and responds to their complaints;
- Creating a new electronic reporting system to track and manage all reports of harassment and the district’s responses to such reports;
- Updating policies and procedures to ensure the district responds promptly and effectively to all reports of harassment and provides appropriate support services to affected students;
- Training all staff and students on how to identify and report harassment; and
- Implementing an annual climate assessment through surveys and listening sessions with students, parents, and school employees so that the district can identify and respond to harassment trends and concerns in the school community.
Enforcing civil rights laws to protect students from harassment is a top priority of the Justice Department’s Civil Rights Division. Additional information about the Civil Rights Division is available at www.justice.gov/crt and additional information about the work of the Educational Opportunities Section is available at www.justice.gov/crt/educational-opportunities-section.
Members of the public may report possible civil rights violations at www.civilrights.justice.gov/.
View the agreement in Spanish here.
View the summary of the agreement here.
View the summary of the agreement in Spanish here.
Justice Department Secures Agreement Preventing Animal Welfare Act Violations at Ohio Auction HouseRead the Press Release
In a consent decree entered today by the U.S. District Court for the Northern District of Ohio, Mt. Hope Auction Co. agreed to monitoring and future restrictions to prevent it from violating the Animal Welfare Act (AWA) through future auctions of exotic or other AWA-regulated animals.
In September, the United States filed a complaint against Mt. Hope Auction, alleging that it was placing animals in serious danger and violating the AWA and its regulations and standards during the Mid-Ohio Alternative Animal and Bird Sales that it held three times a year. Each of these auctions featured thousands of animals, including over 200 different species ranging from parrots to exotic cattle breeds to animals listed under the Endangered Species Act like ring-tailed lemurs.
At the time of the complaint, Mt. Hope had been cited for 69 AWA violations in less than two years, including repeat violations for failing to provide veterinary care to sick or injured animals, allowing unsafe or unsanitary animal enclosures, and allowing the public to touch animals — including potentially dangerous coyotes, fox and bobcats — without proper barriers or employee supervision. The complaint also alleged that Mt. Hope had accepted hundreds of animals from sellers who did not hold the required license from the Department of Agriculture (USDA), becoming a hub for unlawful and poorly documented sales that could proliferate the inhumane care of animals.
The court entered a temporary restraining order against Mt. Hope on Sept. 13, requiring the auction company to comply with several AWA requirements at its September Alternative Animal and Bird Sale. Mt. Hope canceled that sale. Mt. Hope’s USDA license was set to expire at the end of the September, and after failing to demonstrate compliance at two inspections, Mt. Hope declined the third and final opportunity for a re-licensing inspection and terminated the re-licensing process.
“In recent years, Mt. Hope Auction has auctioned off more than 5,000 animals annually, which underscores the widespread effect of their violations,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “The company’s ‘business as usual’ approach — risking injury, illness and harm to the animals at its auctions — will not continue. It is important for auction houses dealing in regulated animals to abide by the Animal Welfare Act and provide humane treatment to the animals that come through their doors.”
“USDA is committed to ensuring the safety and wellbeing of animals protected under the Animal Welfare Act,” said Deputy Administrator Sarah Helming for USDA’s Animal Care program. “The partnership between USDA and DOJ helps to ensure enforcement of the AWA regulations for those who put regulated animals at risk.”
“Despite numerous opportunities to correct their business practices, Mt. Hope Auction chose not to comply,” said U.S. Attorney Rebecca Lutzko for the Northern District of Ohio. “Their complete disregard for the laws regarding animal welfare and treatment placed both these animals and the public at large in danger. As this case demonstrates, we will hold accountable businesses that seek to profit from treating animals inhumanely.”
Under the consent decree, Mt. Hope Auction agrees to not deal in or exhibit AWA-regulated animals without a license, and to allow the Department of Agriculture (USDA) access to ensure compliance with this provision. Moreover, if Mt. Hope Auction applies for and obtains a new USDA license within the next three years, it agrees to enter a two-year probationary period.
During the probationary period, Mt. Hope Auction agrees to comply with AWA requirements to provide adequate veterinary care to animals consigned at the auctions; handle animals carefully; prevent the public from contacting animals without a responsible employee present; ensure that all facilities and enclosures are sanitary, in good repair and meet the minimum AWA standards; and create and maintain complete and accurate records. Mt. Hope also agrees to maintain veterinary records to allow for future monitoring of veterinary care. If Mt. Hope is found to have repeatedly violated the same AWA regulations and standards during the probationary period that were the subject of the United States’ claims, its AWA license will be permanently revoked.
USDA investigated the case and filed a parallel administrative enforcement action.
Senior Trial Attorney Devon Flanagan and Trial Attorneys Kamela Caschette and Taylor Mayhall of the Environment and Natural Resources Division’s Wildlife and Marine Resources Section prosecuted the case, with support from USDA’s Office of General Council and Animal and Plant Health Inspection Service and the assistance of Assistant U.S. Attorneys Kathryn Andrachik and Elizabeth Deucher for the Northern District of Ohio.