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18 September 2024
Former Nurse Sentenced for Tampering with OxycodoneRead the Press Release
BOSTON – A former nurse was sentenced yesterday for tampering with liquid oxycodone syringes at a local rehabilitation center.
Jaclyn McQueen, 44, of Dedham, was sentenced by U.S. District Court Judge Julia E. Kobick to three years of probation. In January 2024, McQueen pleaded guilty to one count of tampering with a consumer product. McQueen was charged by Information on Dec. 7, 2023.
From approximately February through May 2020, McQueen worked as a registered nurse at a rehabilitation center in Dedham that provided long-term chronic and post-acute care to patients. In her capacity as a nurse, McQueen had access to oxycodone, a Schedule II narcotic, prescribed to patients at the rehabilitation center. During her work shifts, McQueen removed liquid oxycodone from syringes intended for use by patients, consumed the oxycodone herself and refilled the syringes with water to avoid detection. McQueen returned the diluted syringes to the medication carts where they could have been administered to patients.
Acting United States Attorney Joshua S. Levy; Fernando McMillan, Special Agent in Charge of the Food and Drug Administration, Office of Criminal Investigations; and Robert H. Goldstein, MD, PhD, Commissioner of the Massachusetts Department of Public Health made the announcement. Assistant U.S. Attorney Kelly Begg Lawrence, Chief of the Health Care Fraud Unit, prosecuted the case.
Former Mexican law enforcement official imprisoned for hiring drivers to transport loads of deadly narcoticsRead the Press Release
BROWNSVILLE, Texas – A 56-year-old Mexican citizen residing in the Brownsville area has been sentenced following his conviction for conspiracy with intent to deliver cocaine, heroin and fentanyl, announced U.S. Attorney Alamdar S. Hamdani.
A federal jury convicted Gilberto Almaraz-Muniz April 26 on one count of conspiracy and three counts of possession with intent to distribute various controlled substances following a five-day trial.
U.S. District Judge Rolando Olvera has now ordered him to serve 250 months in federal prison to be immediately followed by five years of supervised release. At the hearing, the court heard additional information detailing the extensive elements of the conspiracy Almaraz-Muniz lead. In handing down the sentence, the court noted Almaraz-Muniz specifically made use of younger individuals to carry out the transportation of the drugs.
Law enforcement conducted a narcotics seizure in Klegberg County March 10, 2022. At that time, authorities arrested co-conspirator Pedro Venegas Jr., 24, in Brownsville.
Once law enforcement noticed tampering within the engine, they took his truck to a secure location to remove the engine’s manifold and other components. The exposed internal workings of the engine revealed 23 bundles of heroin, cocaine and fentanyl. The truck’s 6-cylinder engine had modifications to appear as an 8-cylinder to keep the drugs hidden within those areas.
Further evidence showed co-conspirator Jetzrael Saldana, 26, Brownsville, recruited Venegas as driver on behalf of Almaraz-Muniz who was a law enforcement official in Mexico and operated as the drug supplier.
During the trial, witnesses testified that Almaraz-Muniz would ask Saldana to recruit drivers to take drug loads past the immigration checkpoint for distribution in Houston and other areas. Almaraz-Muniz would then arrange for the vehicles to be titled in the drivers’ names and have them do “dry runs,” crossing the port of entry several times before hiding drugs within the vehicle.
At the time of the trial, the jury heard additional evidence about two other drug seizures during which Almaraz-Muniz hired drivers to deliver narcotics. The seizures included 83 kilograms of liquid meth at the Gateway International bridge in Brownsville on July 17, 2022, and a 24-kilogram seizure of black tar heroin in Robstown Sept. 26, 2022.
Almaraz-Muniz has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration conducted the investigation with the assistance of the South Texas Narcotics Task Force in Kingsville and Homeland Security Investigations. Assistant U.S. Attorneys Oscar Ponce and Victoria Aranda prosecuted the case.
Former Fairfax County deputy sentenced to over six years in prison for conspiring with inmate to traffic drugs in jail and sex traffickingRead the Press Release
ALEXANDRIA, Va. – A former Fairfax County Sheriff’s Office (FCSO) deputy was sentenced today to six years and six months in prison for conspiring to distribute drugs and other contraband to an inmate at the Fairfax County Adult Detention Center (Fairfax ADC) in exchange for bribe payments, as well as to women whom the defendant sexually trafficked out of an apartment he rented for his own financial gain and sexual gratification.
According to court documents, from May 2021 to June 21, 2023, Robert Theodore Sanford Jr., 37, was a correctional officer at Fairfax ADC, which holds detainees being held both pre- and post-trial in Fairfax County, Virginia. From December. 2022 through May 2023, Sanford smuggled contraband into Fairfax ADC and provided the contraband and confidential, law-enforcement-sensitive information to an inmate. The contraband included a cell phone and distribution quantities of fentanyl, cocaine, and Suboxone. Sanford also supplied latex gloves and glue to the inmate to help conceal the contraband. The inmate then trafficked the drugs to other inmates.
Outside Fairfax ADC, Sanford procured drugs from the inmate’s associates. In addition to the drugs Sanford smuggled into Fairfax ADC, Sanford distributed drugs to women who lived in and prostituted themselves out of an apartment that Sanford leased.
“Robert Sanford preyed on the vulnerabilities of people in his care,” said Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia. “His corruption didn’t stop with profiting from feeding the addictions of inmates in his charge. Rather than assisting homeless and addicted members of his community, Sanford used drugs to entrap them in a life of prostitution for his own gain.”
Sanford provided the inmate with information such as advance warning of cell searches by deputies, cell blocks to which deputies were proceeding in those searches, whether deputies would be conducting strip searches, and where drug-sniffing dogs were being utilized. Sanford also provided the inmate with information regarding other inmates, including which inmates might be providing information to law enforcement, which assisted Sanford’s co-conspirator in intimidating potential witnesses.
"Robert Sanford violated his oath as a sworn law enforcement officer by distributing contraband, drugs, and confidential information to inmates, who then trafficked the drugs into the detention center,” said David Geist, Acting Special Agent in Charge of the FBI Washington Field Office Criminal and Cyber Division. “Additionally, he placed the lives of inmates and his law enforcement peers in danger. Sanford threatened the security of the community and abused the public trust."
“I am incredibly grateful for the diligent efforts of our F.C.S.O. investigators and their federal colleagues that uncovered corruption that put deputies and inmates at extreme risk,” said Stacey A. Kincaid, Fairfax County Sheriff. “This criminal conduct within the A.D.C. is unacceptable and we will relentlessly pursue those who abuse their positions of trust for personal gain. We express our thanks to the U.S. Attorney’s Office and the FBI for their collaboration and partnership in bringing this criminal to justice.”
On May 4, 2023, FCSO deputies at Fairfax ADC conducted a strip search of Sanford’s co-conspirator, and in the inmate’s long underwear deputies found a cellphone, two charging cables, one portable cellular phone charger, one USB charging brick, 92 counterfeit oxycodone pills, 174 strips of Suboxone, and over three grams of cocaine. The following day, Sanford was informed of the seizure during roll call. Sanford removed his cash tag name and personal email address from the CashApp account he used to receive bribe payments for smuggling contraband into Fairfax ADC. He also stopped sending messages and making calls to the inmate and other conspirators and deleted related messages. Within two weeks of FCSO discovering the contraband, Sanford began the process of resigning from his job, falsely telling FCSO that childcare challenges were the reason for his resignation.
Assistant U.S. Attorney Heather D. Call prosecuted the case.
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. 1:24-cr-110.
Former City of Milwaukee Employee Sentenced in Embezzlement CaseRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that on September 17, 2024, Kelly Whitmore-Behling (age: 47), formerly of Milwaukee, was sentenced to 12 months and one day of imprisonment, followed by three years’ supervised release for her role in an embezzlement scheme.
According to court records, Ms. Whitmore-Behling and her co-defendant were employed by the City of Milwaukee’s Department of Public Works, where their responsibilities included disposing of vehicles and equipment the City no longer needed. Between June and September of 2022, they executed an embezzlement scheme, selling City vehicles and equipment for cash and pocketing most of the proceeds for themselves. The City lost over $350,000 in revenue and was forced to incur additional expenses to replace needed vehicles and equipment that had gone missing. Court records also reveal that during the same time period, Ms. Whitmore-Behling gambled extensively at a local casino. The scheme ended when the co-defendants were suspended from work and the Department of Public Works conducted a thorough equipment audit that revealed the scope of their fraud.
“Ms. Whitmore-Behling abused a position of trust and harmed not only the City itself but also every taxpayer who lives and works in Milwaukee,” said U.S. Attorney Haanstad. “Her conduct caused hundreds of thousands of dollars of loss and risked undermining public faith in city government. I commend everyone who played a role in seeking to hold Ms. Whitmore-Behling and her codefendant accountable for their actions.”
“Ms. Whitmore-Behling was a public employee who cheated not only her employer but the citizens of Milwaukee by embezzling city funds to further her own greed,” said Special Agent in Charge Michael E. Hensle of the FBI Milwaukee Field Office. “The FBI is committed to investigating matters of public corruption, such as Whitmore-Behling, in which government employees betray the trust of the public for personal gain.”
This matter was investigated by the Federal Bureau of Investigation and the Milwaukee Police Department. It was prosecuted by Assistant United States Attorney Rebecca Taibleson.
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For further information contact:
Public Information Officer
Kenneth.Gales@usdoj.gov
(414) 297-1700
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Former Assistant District Attorney Indicted on Bribery, Money Laundering Conspiracy, and Other Felony ChargesRead the Press Release
A federal grand jury in Lafayette, Louisiana, returned an indictment today charging a former Louisiana Assistant District Attorney with conspiracy to commit bribery, bribery, using his cell phone in furtherance of bribery, conspiracy to commit money laundering, and obstruction of justice.
According to court documents, Gary Haynes, 66, of Lafayette, conspired with Dusty Guidry, Leonard Franques, and others to solicit bribes and kickbacks and to accept things of value while Haynes was an Assistant District Attorney in the 15th Judicial District Attorney’s Office (the D.A.’s Office). According to the indictment, Haynes oversaw the D.A.’s Office’s Pretrial Intervention (PTI) program – a program that offered an alternative to criminal prosecution for certain criminal offenders. Haynes approved defendants to participate in the program and then directed them to take classes from Franques’ companies. Those defendants paid money to take classes through Franques’ companies to complete the program and obtain dismissal of the criminal charges against them from Haynes. Haynes, Guidry, and Franques agreed that Haynes would receive kickbacks in exchange for accepting people into the PTI program, directing those people to Franques’ companies, and then dismissing the charges against the people who enrolled in and paid for the courses that Franques’ companies provided.
Further, according to the charges in the indictment, Haynes and his co-conspirators discussed several ways to conceal the nature of the money that Haynes would receive from the kickback scheme, including having Haynes reactivate a defunct company during the conspiracy to hide the proceeds from the kickbacks. Finally, Haynes directed a coconspirator to alter, destroy, and conceal documents and records to prevent their availability in a future proceeding.
Haynes is charged with conspiracy to commit bribery concerning programs receiving federal funds, bribery concerning programs receiving federal funds, two counts of using his cell phone in aid of bribery, conspiracy to commit money laundering, and obstruction of justice. If convicted, he faces a maximum penalty of 65 years in prison.
Franques pleaded guilty on Jan. 12 to one count of conspiracy to commit bribery concerning programs receiving federal funds. Guidry pleaded guilty on March 23, 2023, to two counts of conspiracy to commit bribery concerning programs receiving federal funds and one count of bribery concerning programs receiving federal funds. Both Guidry and Franques are scheduled to be sentenced on Oct. 24.
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division, and U.S. Attorney Brandon Bonaparte Brown for the Western District of Louisiana made the announcement.
The FBI New Orleans Field Office and IRS Criminal Investigation are investigating the case.
Trial Attorneys Steven Loew and Trevor Wilmot of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorneys John Luke Walker and John Nickel for the Western District of Louisiana are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Former Assistant District Attorney Indicted on Bribery, Money Laundering Conspiracy, and Other Felony ChargesRead the Press Release
LAFAYETTE, La. – A federal grand jury in Lafayette, Louisiana returned an indictment today charging a former Louisiana Assistant District Attorney with conspiracy to commit bribery, bribery, using his cell phone in furtherance of bribery, conspiracy to commit money laundering, and obstruction of justice.
According to court documents, Gary Haynes, 66, of Lafayette, conspired with Dusty Guidry, Leonard Franques, and others to solicit bribes and kickbacks and to accept things of value while Haynes was an Assistant District Attorney in the 15th Judicial District Attorney’s Office (the D.A.’s Office). According to the indictment, Haynes oversaw the D.A.’s Office’s Pretrial Intervention (PTI) program–a program that offered an alternative to criminal prosecution for certain criminal offenders. Haynes approved defendants to participate in the program and then directed them to take classes from Franques’s companies. Those defendants paid money to take classes through Franques’s companies to complete the program and obtain dismissal of the criminal charges against them from Haynes. Haynes, Guidry, and Franques agreed that Haynes would receive kickbacks in exchange for accepting people into the PTI program, directing those people to Franques’s companies, and then dismissing the charges against the people who enrolled in and paid for the courses that Franques’s companies provided.
Further, according to the charges in the indictment, Haynes and his co-conspirators discussed several ways to conceal the nature of the money that Haynes would receive from the kickback scheme, including having Haynes reactivate a defunct company during the conspiracy to hide the proceeds from the kickbacks. Finally, Haynes directed a coconspirator to alter, destroy, and conceal documents and records to prevent their availability in a future proceeding.
Haynes is charged with conspiracy to commit bribery concerning programs receiving federal funds, bribery concerning programs receiving federal funds, two counts of using his cell phone in aid of bribery, conspiracy to commit money laundering, and obstruction of justice. If convicted, he faces a maximum penalty of 65 years in prison.
Franques pleaded guilty on January 12, 2024, to one count of conspiracy to commit bribery concerning programs receiving federal funds. Guidry pleaded guilty on March 23, 2023, to two counts of conspiracy to commit bribery concerning programs receiving federal funds and one count of bribery concerning programs receiving federal funds. Both Guidry and Franques are scheduled to be sentenced on October 24, 2024.
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division, and U.S. Attorney Brandon Bonaparte Brown for the Western District of Louisiana made the announcement.
The FBI New Orleans Field Office and IRS Criminal Investigation are investigating the case. Trial Attorneys Steven Loew and Trevor Wilmot of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorneys John Luke Walker and John Nickel for the Western District of Louisiana are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Florida Couple Sentenced to Federal Prison for Interstate Transport of A Minor and Production of Child PornographyRead the Press Release
GAINESVILLE, FLORIDA – Jason R. Coody, United States Attorney for the Northern District of Florida, announced the sentences of two defendants who were convicted for child pornography offenses.
Timothy Frederick Murphy-Johnson, 40, of Gainesville, Florida, was sentenced to life in federal prison after previously pleading guilty to one count of interstate transportation of a minor to engage in sexual activity, one count of conspiracy to produce child pornography, and two counts of production of child pornography.
Olivia Ashford Henn, 21, of Orlando, Florida, was sentenced to 276 months in federal prison after previously pleading guilty to conspiracy to produce child pornography, and two counts of production of child pornography.
“The extreme acts of sexual, physical, and emotional abuse to which this child was subjected over six weeks are indescribable, and nothing short of horrific,” said U.S. Attorney Coody. “These sentences account for the defendants’ vile acts of depravity and send a strong message that those who exploit children will face justice. Due to the tireless efforts of our local, state, and federal law enforcement partners this child was saved and returned to her family. We will continue to work together to protect our children and hold such dangerous criminals accountable.”
In July of 2023, the Florida Department of Law Enforcement (FDLE) and the Alachua County Sheriff’s Office (ACSO) assisted the Texas Department of Public Safety (DPS) with locating and recovering a 16-year-old girl that had been reported missing since June 10, 2023, from Corpus Christi, Texas. Investigation at that time had revealed evidence that the child may have been transported to the Gainesville area, although the identity of the responsible parties remained unknown.
“Justice demands that this couple, who committed the unspeakable acts of kidnapping, physically restraining, drugging and repeatedly sexually abusing a child, be held to the fullest extent of the law,” said Homeland Security Investigations Tallahassee Assistant Special Agent in Charge Nicholas Ingegno. “This life sentence serves as a solemn reminder HSI, alongside our partners at the Florida Department of Law Enforcement, Alachua County Sheriff’s Office, and the Texas Department of Public Safety, are committed to protecting the innocent and ensuring that such egregious violations of human dignity are met with unwavering accountability.”
FDLE and ACSO engaged in extensive investigation using IP address information and prior contacts with Murphy-Johnson, a citizen of the United Kingdom residing in Gainesville, Florida, to locate the victim. Based on that information, law enforcement obtained a search warrant for Murphy-Johnson’s residence, which was executed on July 25, 2023. Execution of that warrant led to the discovery of the missing child, who appeared severely fatigued and malnourished, within Murphy-Johnson’s residence. Law enforcement documented several injuries to the child, including ligature marks on her wrists and ankles, bruising, and several cuts and scrapes in various stages of healing.
“Thank you to the Florida Department of Law Enforcement, Alachua County Sheriff’s Office, Texas Department of Public Safety and Homeland Security Investigations agents and investigators who so swiftly and meticulously worked this case and rescued the child from these heinous predators,” said FDLE Jacksonville Special Agent in Charge Keesha Nauss. “These sentences help ensure that no other children will be terrorized by this criminal duo.”
Investigation later revealed that Murphy-Johnson had met the child in a chat on the online platform Discord and had arranged for the child to be transported to his residence in Gainesville, Florida. Following the child’s arrival, Murphy-Johnson, along with co-defendant Olivia Henn, physically restrained the child within Murphy-Johnson’s residence, administered narcotics to the child, and engaged in the repeated physical and sexual abuse of the child until the child’s rescue on July 25, 2023. Co-defendant Henn was later arrested in Winter Garden, Florida, on August 4, 2023, and admitted to physically and sexually abusing the child on three separate occasions in Gainesville, Florida. Henn also admitted to lying to law enforcement over the phone on June 28, 2023, when ACSO deputies responded to Murphy-Johnson’s residence in reference to the child victim screaming for help.
Forensic extraction of the electronic devices used by Murphy-Johnson and Henn revealed many images and videos depicting the physical and sexual abuse of the child victim. Investigation also revealed that the co-defendants administered narcotics to the victim on a regular basis, resulting in the victim’s overdose and resuscitation on at least two occasions.
Murphy-Johnson, should he ever be released from prison, will be subject to a lifetime of supervised release. Henn’s imprisonment will also be followed by a lifetime of supervised release. Both defendants will be required to register as sex offenders, and subject to all sex offender conditions. The Court also ordered forfeiture of the residence and property owned by Murphy-Johnson, which was used to house the victim during the commission of the offenses as well as electronic devices used to commit the offenses. Both defendants were ordered to pay $56,000 in restitution to the child victim.
This conviction was the result of a joint investigation conducted by the Florida Department of Law Enforcement, Alachua County Sheriff’s Office, the Texas Department of Public Safety, and Homeland Security Investigations. Assistant United States Attorneys Frank Williams and David Byron prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Launched in May 2006 by the Department of Justice and led by the U.S. Attorney’s Offices and the Criminal Divisions Child Exploitation and Obscenity Section (CEOS), it marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office for the Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Fentanyl trafficker going to prison for more than 17 yearsRead the Press Release
ROCHESTER, N.Y.-U.S. Attorney Trini E. Ross announced today that Arcides Castillo-Dieguez, 59, of Rochester, NY, who was convicted of possession with intent to distribute 400 grams or more of fentanyl, was sentenced to serve 210 months in prison by U.S. District Judge Frank P. Geraci, Jr.
Assistant U.S. Attorney Matthew T. McGrath, who handled the case, stated that over the course of a long-term narcotics investigation, law enforcement identified Castillo-Dieguez as a bulk supply source of fentanyl for other Rochester drug dealers. Investigators identified several locations from which Castillo-Dieguez either sold or stashed fentanyl for future distribution. In May 2023, multiple search warrants were executed at three of these locations on Avenue A, East Main Street, and Durnan Street. One of the locations was used as a day care facility. Investigators seized over four kilograms of fentanyl, fentanyl analogue and heroin. Drug paraphernalia was also seized during the searches. This is Castillo-Dieguez’s sixth felony conviction for an offense involving the illegal distribution of controlled substances.
The sentencing is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Frank Tarentino, III, New York Field Division, the Monroe County Sheriff’s Office, under the direction of Sheriff Todd Baxter, the Rochester Police Department, under the direction of Chief David Smith, and the Greater Rochester Area Narcotics Enforcement Team (GRANET).
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Felon Sentenced to 10 Years in Prison for Possessing Ammunition He Used in Shooting a Man in Brooklyn in 2021Read the Press Release
Earlier today in federal court in Brooklyn, Leo Oliver, also known as “Gam,” was sentenced by United States District Judge Dora L. Irizarry to 10 years in prison for being a felon in possession of ammunition related to a shooting in 2021. Oliver pleaded guilty to the charge in December 2023. The Court also found that Oliver was responsible for a second shooting in a convenience store in Brooklyn in 2020. As part of the sentence, Oliver was ordered to pay restitution in the amount of $12,000 to the victims.
Breon Peace, United States Attorney for the Eastern District of New York, announced the sentence.
“Today, Oliver has been justly punished for the harm he inflicted upon two people in separate, callous shootings in Brooklyn,” stated United States Attorney Peace. “Fortunately, these victims survived. My Office will continue to work tirelessly with our federal and local law enforcement to reduce gun-related violence in our communities.”
Mr. Peace thanked the U.S. Department of Homeland Security, Homeland Security Investigations New York, and the New York City Police Department for their outstanding investigative work on the case.
According to court filings and facts presented in court, Oliver shot a victim (“Victim-1”) on September 25, 2021 following an argument with Victim-1 on the sidewalk on Van Siclen Avenue in East New York, Brooklyn. Oliver shot Victim-1 in his torso, before fleeing on foot. Victim-1 was hospitalized for gunshots to his torso, a lacerated spleen, and fractured ribs, but he survived. Two .380 shell casing were recovered at the scene.
Judge Irizarry also found today that Oliver committed a second shooting on July 8, 2020 inside a convenience store in East New York, Brooklyn. Victim-2 was working behind the counter when, after a dispute, Oliver pulled a black gun from his pocket and shot Victim-2 in the chest and hand before fleeing in an SUV. A .380 shell casing was recovered from the scene.
Victim-2 was hospitalized with gunshot wounds, fractured ribs, lung bruising, and a fractured hand from the shooting. Victim-2’s injuries left him unable to earn a living.
After the shootings, Oliver took steps to destroy evidence and conceal his crimes. Specifically, he deleted an image of two guns from his cell phone and threw the handgun used in the 2020 shooting into the East River.
The defendant has a criminal history of at least seven felony convictions.
Assistant United States Attorney Adam Amir is in charge of the prosecution.
The Defendant:
LEO OLIVER (also known as “Gam”)
Age: 44
Mechanicsburg, PennsylvaniaE.D.N.Y. Docket No. 23-CR-279 (DLI)
El Departamento de Justicia y el Departamento de Vivienda y Desarrollo Urbano aseguran más de $15 millones de OceanFirst Bank para resolver las reclamaciones de exclusión financiera en New JerseyRead the Press Release
La División de Derechos Civiles del Departamento de Justicia, la Fiscalía Federal para el Distrito de New Jersey y el Departamento de Vivienda y Desarrollo Urbano (HUD) anunciaron hoy que OceanFirst Bank, N.A. ha acordado pagar más de $15 millones para resolver alegaciones de que participó en un patrón o una práctica de discriminación crediticia al practicar la exclusión financiera en barrios de mayoría negra, hispana y asiática en los condados de Middlesex, Monmouth y Ocean en New Jersey. La exclusión financiera es una práctica ilícita en la que los prestamistas evitan la provisión de servicios crediticios a individuos que viven en comunidades de color por motivos de la raza, el color o el origen nacional de las personas que viven en esas comunidades.
En octubre de 2021, el Fiscal General Garland y la Fiscal General Adjunta Clarke lanzaron la Iniciativa del Departamento de Justicia para Combatir la Exclusión Financiera, un esfuerzo de cumplimiento coordinado para abordar esta forma persistente de discriminación contra las comunidades de color. La iniciativa está ampliando el alcance del departamento al fortalecer las asociaciones con las Fiscalías de los Estados Unidos en todo el país, los socios reguladores y sus socios en las oficinas de los Fiscales Generales estatales. Desde 2021, el departamento ha anunciado 13 resoluciones de discriminación y ha obtenido más de $137 millones en ayuda para las comunidades de color que han sido víctimas de discriminación crediticia en todo el país.
“Este acuerdo, y los más de $137 millones en ayuda que el Departamento de Justicia ha conseguido para comunidades de todo el país, ayudarán a garantizar que futuras generaciones de estadounidenses hereden un legado de propiedad de vivienda que se les ha negado con demasiada frecuencia”, dijo el Fiscal General Merrick B. Garland. “La exclusión financiera es ilegal, es perjudicial y está mal. El Departamento de Justicia seguirá haciendo que los bancos y las compañías hipotecarias rindan cuentas por la exclusión financiera y garantizará ayuda para las comunidades que siguen viéndose perjudicadas por estas prácticas discriminatorias”.
“Con demasiada frecuencia, a las comunidades de color se les ha negado el acceso igualitario al crédito y la oportunidad de generar riqueza generacional”, dijo la fiscal general adjunta Kristen Clarke de la División de Derechos Civiles del Departamento de Justicia. “A través de nuestros esfuerzos históricos para combatir la exclusión financiera moderna, hemos abierto nuevas oportunidades de propiedad de vivienda para las familias y comunidades afectadas. Este acuerdo subraya el compromiso del Departamento de Justicia de responsabilizar a los bancos y las instituciones financieras por sus acciones discriminatorias, al tiempo que garantiza la justicia racial y económica para todos los estadounidenses”.
“Nos comprometemos a garantizar que todos en New Jersey tengan acceso al sueño americano de ser propietarios de casa, independientemente de su raza, color de piel u origen nacional”, comentó Philip R. Sellinger, el Fiscal Federal para el Distrito de New Jersey. “Este acuerdo es un paso importante para nivelar el campo de juego y eliminar las barreras ilegales y discriminatorias en los préstamos hipotecarios residenciales”.
“La exclusión financiera no solo es ilegal, sino que cierra injustamente las puertas de oportunidades económicas para miles de familias de color en este país”, dijo la secretaria interina de HUD, Adrianne Todman. “Junto con nuestros socios del Departamento de Justicia, HUD sigue comprometido con hacer valer la Ley de Vivienda Justa erradicando todas las formas de discriminación en la vivienda. El anuncio de hoy subraya nuestro compromiso compartido de lograr justicia y crear oportunidades equitativas para los estadounidenses, en particular para aquellos a quienes históricamente se les ha negado el acceso”.
La queja del Departamento de Justicia, que se presentó hoy en el Tribunal Federal de Distrito para el Distrito de New Jersey alega que, desde el 2018 hasta al menos el 2022, OceanFirst Bank no proporcionó servicios de préstamos hipotecarios a barrios de mayoría negra, hispana y asiática en los condados de Middlesex, Monmouth y Ocean, y desalentó a personas que buscaban crédito en esas comunidades de obtener préstamos hipotecarios. En concreto, la queja alega que OceanFirst centró, de forma desproporcionada, su difusión y publicidad en comunidades de mayoría blanca, ubicó sus sucursales en barrios de mayoría blanca y cerró sus únicas sucursales en los barrios de mayoría negra, hispana y asiática en esos condados.
El Departamento de Justicia ha resuelto sus reclamaciones a través de una orden por consentimiento propuesta, que está sujeta a la aprobación del tribunal. Además, OceanFirst y HUD han celebrado un acuerdo conciliatorio con términos equivalentes. En esas resoluciones, OceanFirst ha acordado hacer lo siguiente:
- Invertir al menos $14 millones en un fondo de subsidios para préstamos para aumentar el acceso a préstamos hipotecarios, a mejoras en la vivienda y al refinanciamiento residencial para residentes de barrios de mayoría negra, hispana y asiática en los condados de Middlesex, Monmouth y Ocean.
- Desembolsar $400,000 en asociaciones comunitarias para proporcionar servicios relacionados con el crédito, la educación financiera del consumidor, la adquisición de viviendas y la prevención de ejecuciones hipotecarias para residentes de barrios de mayoría negra, hispana y asiática en esos condados;
- Desembolsar $700,000 en publicidad, proyección comunitaria, educación financiera al consumidor y asesoramiento de crédito centrado en barrios de mayoría negra, hispana y asiática en esos condados;
- Abrir una oficina de generación de préstamos hipotecarios y mantener abierta la sucursal de servicio completo recientemente abierta, ambas en barrios de mayoría negra, hispana y asiática en esos condados, con al menos un funcionario encargado de préstamos hipotecarios asignado a cada sucursal;
- Llevar a cabo una evaluación de las necesidades crediticias comunitarias, evaluará sus sistemas de gestión de cumplimiento con las leyes de préstamos justos y celebrará capacitaciones del personal sobre el tema de préstamos justos y
- Emplear a un Director de Préstamos Comunitarios que supervisará el desarrollo continuo de préstamos hipotecarios en comunidades de color.
La División de Derechos Civiles del Departamento de Justicia y la Fiscalía Federal para el Distrito de New Jersey iniciaron su investigación de las prácticas crediticias de OceanFirst después de recibir una notificación del regulador del banco, la Oficina del Contralor de la Moneda. OceanFirst cooperó con la investigación y trabajó con el Departamento de Justicia y HUD para resolver las alegaciones de exclusión financiera.
Puede encontrar información sobre la aplicación de las leyes de préstamos justos del Departamento de Justicia en www.justice.gov/fairhousing. Para informarnos de incidentes de discriminación en el ámbito crediticio, llame a la línea informativa del Departamento de Justicia para discriminación en la vivienda al 1-833-591-0291 o entregue un informe en línea. Información sobre la aplicación de las leyes de derechos civiles por parte de la Fiscalía Federal puede encontrarse en www.justice.gov/usao-nj/civil-rights-enforcement. Personas en el Distrito de New Jersey también pueden proporcionar información sobre vulneraciones de derechos civiles aquí o llamando a la línea directa para asuntos de derechos civiles del Fiscal Federal al (855) 281-3339.
East Haven Man Sentenced to 5 Years in Federal Prison for Narcotics Distribution and Firearm Possession OffensesRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that SEAN PEPE, 39, of East Haven, was sentenced today by U.S. District Judge Omar A. Williams in Hartford to 60 months of imprisonment, followed by five years of supervised release, for narcotics distribution and firearm possession offenses.
According to court documents and statements made in court, this matter stems from an investigation by the FBI’s New Haven Safe Streets/Gang Task Force and the DEA New Haven’s Tactical Diversion Squad targeting the manufacture and distribution of counterfeit oxycodone tablets containing fentanyl and counterfeit Adderall tablets containing methamphetamine, and the distribution of heroin and cocaine, in the New Haven area. The investigation, which included court-authorized wiretaps, physical and electronic surveillance, and traffic stops and searches, revealed that Willis Taylor, of West Haven, coordinated the manufacture of counterfeit pills, which he distributed to Pepe and others for further distribution. In addition, the investigation revealed the distribution of other controlled substances, and Pepe also sold cocaine to customers.
On November 18, 2022, a court-authorized search of Pepe’s East Haven residence revealed more than 300 counterfeit fentanyl pills, nearly 75 grams of fentanyl powder, distribution quantities of methamphetamine and cocaine, a machine used to make counterfeit pills (“pill press”), a hydraulic press used to mold drugs into kilogram bricks, three firearms, body armor, numerous rounds of ammunition, more than $86,000 in cash, and a Rolex watch. At the time of the search, Pepe was on state probation after being convicted in September 2021 of illegally possession of weapon in a motor vehicle.
Pepe has been detained since December 2022. On June 12, 2024, he pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, 40 grams or more of fentanyl and 50 grams or more of methamphetamine, and one count of unlawful possession of a firearm by a felon.
Pepe, Taylor, and 12 others were federally charged as a result of this investigation. Taylor has pleaded guilty and awaits sentencing.
Prior to the federal investigation, on October 23, 2021, a 36-year-old woman died of a fentanyl overdose at Pepe’s residence.
This matter has been investigated by the DEA New Haven’s Tactical Diversion Squad, the FBI’s New Haven Safe Streets/Gang Task Force, Homeland Security Investigations (HSI), and the U.S. Marshals Service. The DEA Tactical Diversion Squad is composed of personnel from the DEA and the Manchester, Glastonbury, West Haven, Hamden, Newington, and Bristol Police Departments. The FBI Task Force includes participants from the FBI, the Connecticut State Police, the Connecticut Department of Correction, and the New Haven, Milford, East Haven, West Haven, and Wallingford Police Departments.
The case is being prosecuted by Assistant U.S. Attorneys Ross Weingarten and Katherine Boyles, in coordination with the New Haven and Milford State’s Attorney’s Offices.
This case is being prosecuted through the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. OCDETF identifies, disrupts, and dismantles drug traffickers, money launderers, gangs and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state, and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
In March 2024, the U.S. Attorney’s Office and the DEA’s New England Field Division released a public service announcement warning of the danger of fentanyl and the proliferation of counterfeit prescription pills. Click here for more information.
East Bay Entrepreneur Sentenced to One Year in Federal Prison for Tax EvasionRead the Press Release
OAKLAND – Salman Salman was sentenced today to one year and a day in federal prison for tax evasion. The sentence was handed down by the Honorable Haywood S. Gilliam, Jr., United States District Judge.
Salman, 47, of Rodeo, Calif., pleaded guilty to one count of tax evasion under 26 U.S.C. § 7201 on May 8, 2024. According to his plea agreement, Salman admitted he falsely underreported income that he and his wife enjoyed from three businesses he owned and operated during the course of the scheme. The businesses were The Plug Tattoo & Piercing, Inc., S&S Real Estate Investment Group, and Synergy Investment Group Ohio Inc. Further, in his plea agreement Salman acknowledged he understated the amount of distributions his companies made to him, with Salman failing to report over $3.4 million paid to him by his companies. Salman also admitted that he claimed false and overstated expenses, all of which furthered his scheme to reduce his tax obligations. In total, Salman admitted that his failure to disclose over $3.4 million in income he received from his companies for tax years 2016 through 2019 resulted in Salman underreporting capital gains and dividends subject to income tax by more than $2.4 million.
In addition to the prison term, Judge Gilliam also ordered Salman to serve a 36-month period of supervised release, which will begin after he serves his prison term, $438,247 in restitution to be paid in six months, and a fine of $7,500. Salman was ordered to surrender to begin serving his sentence on Oct. 30, 2024.
The announcement was made by United States Attorney Ismail J. Ramsey and IRS Criminal Investigation (IRS-CI) Acting Special Agent in Charge Michael Mosley of the Oakland Field Office.
Assistant U.S. Attorney Thomas Green is prosecuting this case with the assistance of Kay Konopaske and Christine Tian. The prosecution is the result of an investigation by IRS-CI.
Doctor Charged in $32.7M Medicare Fraud SchemeRead the Press Release
A federal grand jury in Lafayette, Louisiana, returned an indictment today charging a Louisiana doctor for his role in a scheme to defraud Medicare of over $32.7 million by submitting claims for medically unnecessary definitive urine drug testing services.
According to court documents, Michael W. Dole, MD, 59, of Alexandria, owned and operated a pain management practice located in Alexandria, which had an in-house drug testing laboratory. From in or around January 2010 through July 2023, Dole allegedly billed Medicare over $32.7 million for definitive testing of routinely over 22 classes of drugs in urine specimens from nearly all his patients, despite a lack of documentation of use or suspicion of use of those drugs by the patients. It is alleged that Medicare subsequently reimbursed Dole over $11.7 million for the medically unnecessary urine drug testing claims, and Dole used the proceeds of the fraud on personal expenses.
Dole is charged with one count of conspiracy to commit health care fraud and five counts of health care fraud. If convicted, he faces a maximum penalty of 10 years in prison on each count.
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; U.S. Attorney Brandon B. Brown for the Western District of Louisiana; Special Agent in Charge Jason E. Meadows of the Department of Health and Human Services Office of Inspector General (HHS-OIG); and Special Agent in Charge Lyonel Myrthil of the FBI New Orleans Field Office made the announcement.
HHS-OIG and the FBI New Orleans Field Office are investigating the case.
Trial Attorneys Samantha E. Usher and Kelly Z. Walters of the Criminal Division’s Fraud Section are prosecuting the case.
The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, currently comprised of nine strike forces operating in 27 federal districts, has charged more than 5,400 defendants who collectively have billed federal health care programs and private insurers more than $27 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Doctor Charged in $32.7M Medicare Fraud SchemeRead the Press Release
LAFAYETTE, La. – A federal grand jury in Lafayette, Louisiana returned an indictment today charging a Louisiana doctor for his role in a scheme to defraud Medicare of over $32.7 million by submitting claims for medically unnecessary definitive urine drug testing services.
According to court documents, Michael W. Dole, M.D., 59, of Alexandria, owned and operated a pain management practice located in Alexandria, which had an in-house drug testing laboratory. From in or around January 2010 through July 2023, Dole allegedly billed Medicare over $32.7 million for definitive testing of routinely over 22 classes of drugs in urine specimens from nearly all his patients, despite a lack of documentation of use or suspicion of use of those drugs by the patients. It is alleged that Medicare subsequently reimbursed Dole over $11.7 million for the medically unnecessary urine drug testing claims, and Dole used the proceeds of the fraud on personal expenses.
Dole is charged with one count of conspiracy to commit health care fraud and five counts of health care fraud. If convicted, he faces a maximum penalty of 10 years in prison on each count.
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; U.S. Attorney Brandon B. Brown for the Western District of Louisiana; Special Agent in Charge Jason E. Meadows of the Department of Health and Human Services Office of Inspector General (HHS-OIG); and Special Agent in Charge Lyonel Myrthil of the FBI New Orleans Field Office made the announcement. HHS-OIG and the FBI New Orleans Field Office are investigating the case.
Trial Attorneys Samantha E. Usher and Kelly Z. Walters of the Criminal Division’s Fraud Section are prosecuting the case. The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, currently comprised of nine strike forces operating in 27 federal districts, has charged more than 5,400 defendants who collectively have billed federal health care programs and private insurers more than $27 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Crisp County Residents Plead Guilty in Armed Meth Trafficking CaseRead the Press Release
ALBANY, Ga. – Two Southwest Georgia residents with criminal pasts pleaded guilty to federal charges resulting from an armed drug trafficking investigation conducted by local, state and federal level law enforcement agencies.
Justin Harris Vinson, 42, of Warwick, Georgia, pleaded guilty to one count of distribution of methamphetamine on Sept. 17 and co-defendant Shana Rae Black, 34, of Cordele, Georgia, pleaded guilty to one count of distribution of methamphetamine on Aug. 15. Both defendants are facing a mandatory minimum of ten years up to a maximum of life imprisonment to be followed by at least five years of supervised release and a $10 million fine. Chief U.S. District Judge Leslie Gardner is presiding over the cases. The sentencing dates will be determined by the Court. There is no parole in the federal system.
“Repeat convicted felons who illegally arm themselves and distribute the most highly addictive and dangerous drugs into our communities will face federal consequences for these crimes,” said U.S. Attorney Peter D. Leary. “Our office is working closely with local, state and federal law enforcement agencies to identity those individuals creating the most havoc in the Middle District of Georgia and hold them accountable for their crimes.”
“Drug traffickers drive addiction and destroy communities,” Robert J. Murphy, Special Agent in Charge of the DEA Atlanta Division stated. “DEA will use any resource necessary to remove these career criminals from our streets.”
“Methamphetamine is a highly addictive drug with devastating consequences to users, their families and communities,” said Supervisory Senior Resident Agent Richard Bilson of FBI Atlanta’s Albany office. “This prosecution closes a pipeline for dangerous drugs flowing into the streets of Southwest Georgia.”
“We are committed to holding those who traffic methamphetamine accountable,” said GBI Director Chris Hosey. “Collaborating closely with state, local and federal law enforcement agencies, we will work to ensure justice and dismantle these dangerous networks.”
"I am incredibly proud of our agency's relentless efforts and the strong collaboration with our local and federal partners. Methamphetamine trafficking brings dangerous consequences to our community, often resulting in tragedy and loss of life. This case highlights our dedication to safeguarding the community and demonstrates the powerful results we achieve through collaboration," stated Crisp County Sheriff Billy Hancock.
According to court documents and statements referenced in court, a confidential informant (CI) working with the Crisp County Sheriff’s Office (CCSO) contacted Black on Facebook to obtain methamphetamine on Oct. 27, 2022. Black sold the CI approximately 111 grams of methamphetamine at a Perry, Georgia, motel; the CI reported there was a pistol on a nightstand in the motel room, next to a bulk quantity of methamphetamine. On Oct. 31, an undercover Georgia Bureau of Investigation (GBI) agent contacted Black to purchase methamphetamine and met her at the Walmart in Cordele. Under audio and video surveillance, the GBI agent purchased methamphetamine from Black.
On Nov. 2, FBI, DEA and GBI agents met with another CI to purchase methamphetamine from Vinson. Under surveillance, Vinson met the CI at his Warwick residence and traveled with Vinson to the Sunrise Inn in Cordele to meet with Black. During the transaction, Black provided 284.4 grams of methamphetamine and collected the majority of the cash payment for the drugs, with Vinson keeping $300 as a brokering fee. Vinson was seen with a firearm during the transaction.
On Nov. 7, CCSO and GBI arrested Black in Crisp County as she traveled in a vehicle back from McDonough, Georgia. A search of the vehicle revealed Black was in possession of 982.7 grams of 97% pure methamphetamine, 15.89 grams of 91% pure methamphetamine, a digital scale and several cell phones. GBI executed a search warrant on the Baymont Inn motel room in Cordele where Black was staying and found a 9mm semiautomatic pistol, a small bag of suspected methamphetamine, four digital scales and bulk quantities of plastic baggies. Black’s cell phones showed extensive communications between her and known drug dealers.
On Jan. 22, 2023, Vinson purchased 15 ounces of methamphetamine in Cordele and sold 277 grams of 98% pure methamphetamine to a CI utilized by GBI in Warwick. During the transaction, the CI observed Vinson place a firearm in the center console of his vehicle. A search warrant was executed at Vinson’s residence on Jan. 26, 2023. Law enforcement located a semiautomatic pistol in his bedroom, along with five other firearms inside of an open safe. Vinson told officers he had been selling methamphetamine in the South Georgia and North Florida area his entire life and that during the peak of COVID in 2020, he would sell approximately three kilograms of methamphetamine per week for six months.
Vinson has a prior felony conviction in Lee County, Georgia, Superior Court for possession with intent to distribute methamphetamine. Black also has a prior felony conviction in Jones County, Georgia, Superior Court for possession with intent to distribute methamphetamine.
This case was investigated by FBI, DEA, GBI and the Crisp County Sheriff’s Office.
Assistant U.S. Attorney Matthew Redavid is prosecuting the case for the Government.
Court-Authorized Operation Disrupts Worldwide Botnet Used by People’s Republic of China State-Sponsored HackersRead the Press Release
Actors Unsuccessfully Sought to Prevent FBI’s Disruption of Botnet
WASHINGTON – The Department of Justice today announced a court-authorized law enforcement operation that disrupted a botnet consisting of more than 200,000 consumer devices in the United States and worldwide. As described in court documents unsealed in the Western District of Pennsylvania, the botnet devices were infected by People’s Republic of China (PRC) state-sponsored hackers working for Integrity Technology Group, a company based in Beijing, China, and known to the private sector as “Flax Typhoon.”
The botnet malware infected numerous types of consumer devices, including small-office/home-office (SOHO) routers, internet protocol (IP) cameras, digital video recorders (DVRs), and network-attached storage (NAS) devices. The malware connected these thousands of infected devices into a botnet, controlled by Integrity Technology Group, which was used to conduct malicious cyber activity disguised as routine internet traffic from the infected consumer devices. The court-authorized operation took control of the hackers’ computer infrastructure and, among other steps, sent disabling commands through that infrastructure to the malware on the infected devices. During the course of the operation, there was an attempt to interfere with the FBI’s remediation efforts through a distributed denial-of-service (DDoS) attack targeting the operational infrastructure that the FBI was utilizing to effectuate the court’s orders. That attack was ultimately unsuccessful in preventing the FBI’s disruption of the botnet.
“The Justice Department is zeroing in on the Chinese government backed hacking groups that target the devices of innocent Americans and pose a serious threat to our national security,” said Attorney General Merrick B. Garland. “As we did earlier this year, the Justice Department has again destroyed a botnet used by PRC- backed hackers to infiltrate consumer devices here in the United States and around the world. We will continue to aggressively counter the threat that China’s state- sponsored hacking groups pose to the American people.”
“The targeted hacking of hundreds of thousands of innocent victims in the United States and around the world shows the breadth and aggressiveness of PRC state-sponsored hackers,” said Eric G. Olshan, the United States Attorney for the Western District of Pennsylvania. “This court-authorized operation disrupted a sophisticated botnet designed to steal sensitive information and launch disruptive cyber attacks. We will continue to work with our partners inside and outside government, using every tool at our disposal, to defend and maintain global cybersecurity.”
“This dynamic operation demonstrates, once again, the Justice Department’s resolve in countering the threats posed by PRC state-sponsored hackers,” said Assistant Attorney General Matthew G. Olsen of the National Security Division. “For the second time this year, we have disrupted a botnet used by PRC proxies to conceal their efforts to hack into networks in the U.S. and around the world to steal information and hold our infrastructure at risk. Our message to these hackers is clear: if you build it, we will bust it.”
“The disruption of this worldwide botnet is part of the FBI’s commitment to using technical operations to help protect victims, expose publicly the scope of these criminal hacking campaigns, and to use the adversary’s tools against them to remove malicious infrastructure from the virtual battlefield,” said FBI Deputy Director Paul Abbate. “The FBI’s unique legal authorities allowed it to lead an international operation with partners that collectively disconnected this botnet from its China-based hackers at Integrity Technology Group.'
According to the court documents, the botnet was developed and controlled by Integrity Technology Group, a publicly traded company headquartered in Beijing, China. The company built an online application allowing its customers to log in and control specified infected victim devices, including with a menu of malicious cyber commands using a tool called “vulnerability-arsenal.” The online application was prominently labelled “KRLab,” one of the main public brands used by Integrity Technology Group.
The FBI assesses that Integrity Technology Group, in addition to developing and controlling the botnet, is responsible for computer intrusion activities attributed to China-based hackers known by the private sector as “Flax Typhoon.” Microsoft Threat Intelligence described Flax Typhoon as nation-state actors based out of China, active since 2021, who have targeted government agencies and education, critical manufacturing, and information technology organizations in Taiwan, and elsewhere. The FBI’s investigation has corroborated Microsoft’s conclusions, finding that Flax Typhoon has successfully attacked multiple U.S. and foreign corporations, universities, government agencies, telecommunications providers, and media organizations.
A cybersecurity advisory describing Integrity Technology Group tactics, techniques and procedures was also published today by the FBI, the National Security Agency, U.S. Cyber Command’s Cyber National Mission Force, and partner agencies in Australia, Canada, New Zealand and the United Kingdom. JCSA: People’s Republic of China-Linked Actors Compromise Routers and IoT Devices for Botnet Operations
The government’s malware disabling commands, which interacted with the malware’s native functionality, were extensively tested prior to the operation. As expected, the operation did not affect the legitimate functions of, or collect content information from, the infected devices. The FBI is providing notice to U.S. owners of devices that were affected by this court-authorized operation. The FBI is contacting those victims through their internet service provider, who will provide notice to their customers.
The U.S. Attorney’s Office for the Western District of Pennsylvania, FBI’s San Diego Office and Cyber Division, and the National Security Cyber Section of the Justice Department’s National Security Division led the domestic disruption effort. Assistance was also provided by the Criminal Division’s Computer Crime and Intellectual Property Section. These efforts would not have been successful without the collaboration of partners, including French authorities, and Lumen Technologies’ threat intelligence group, Black Lotus Labs, which first identified and described this botnet, which it named Raptor Train, in July 2023.
If you believe you have a compromised computer or device, please visit the FBI’s Internet Crime Complaint Center (IC3) or report online to CISA. You may also contact your local FBI field office directly.
The FBI continues to investigate Integrity Technology Group’s and Flax Typhoon’s computer intrusion activities.
Court-Authorized Operation Disrupts Worldwide Botnet Used by People’s Republic of China State-Sponsored HackersRead the Press Release
Note: View the affidavit here.
The Justice Department today announced a court-authorized law enforcement operation that disrupted a botnet consisting of more than 200,000 consumer devices in the United States and worldwide. As described in court documents unsealed in the Western District of Pennsylvania, the botnet devices were infected by People’s Republic of China (PRC) state-sponsored hackers working for Integrity Technology Group, a company based in Beijing, and known to the private sector as “Flax Typhoon.”
The botnet malware infected numerous types of consumer devices, including small-office/home-office (SOHO) routers, internet protocol (IP) cameras, digital video recorders (DVRs), and network-attached storage (NAS) devices. The malware connected these thousands of infected devices into a botnet, controlled by Integrity Technology Group, which was used to conduct malicious cyber activity disguised as routine internet traffic from the infected consumer devices. The court-authorized operation took control of the hackers’ computer infrastructure and, among other steps, sent disabling commands through that infrastructure to the malware on the infected devices. During the course of the operation, there was an attempt to interfere with the FBI’s remediation efforts through a distributed denial-of-service (DDoS) attack targeting the operational infrastructure that the FBI was utilizing to effectuate the court’s orders. That attack was ultimately unsuccessful in preventing the FBI’s disruption of the botnet.
“The Justice Department is zeroing in on the Chinese government backed hacking groups that target the devices of innocent Americans and pose a serious threat to our national security,” said Attorney General Merrick B. Garland. “As we did earlier this year, the Justice Department has again destroyed a botnet used by PRC-backed hackers to infiltrate consumer devices here in the United States and around the world. We will continue to aggressively counter the threat that China’s state- sponsored hacking groups pose to the American people.”
“Our takedown of this state-sponsored botnet reflects the Department’s all-tools approach to disrupting cyber criminals. This network, managed by a PRC government contractor, hijacked hundreds of thousands of private routers, cameras, and other consumer devices to create a malicious system for the PRC to exploit,” said Deputy Attorney General Lisa Monaco. “Today should serve as a warning to cybercriminals preying on Americans – if you continue to come for us, we will come for you.”
“This dynamic operation demonstrates, once again, the Justice Department’s resolve in countering the threats posed by PRC state-sponsored hackers,” said Assistant Attorney General Matthew G. Olsen of the National Security Division. “For the second time this year, we have disrupted a botnet used by PRC proxies to conceal their efforts to hack into networks in the U.S. and around the world to steal information and hold our infrastructure at risk. Our message to these hackers is clear: if you build it, we will bust it.”
“The disruption of this worldwide botnet is part of the FBI’s commitment to using technical operations to help protect victims, expose publicly the scope of these criminal hacking campaigns, and to use the adversary’s tools against them to remove malicious infrastructure from the virtual battlefield,” said FBI Deputy Director Paul Abbate. “The FBI’s unique legal authorities allowed it to lead an international operation with partners that collectively disconnected this botnet from its China-based hackers at Integrity Technology Group.”
“The targeted hacking of hundreds of thousands of innocent victims in the United States and around the world shows the breadth and aggressiveness of PRC state-sponsored hackers,” said U.S. Attorney Eric G. Olshan for the Western District of Pennsylvania. “This court-authorized operation disrupted a sophisticated botnet designed to steal sensitive information and launch disruptive cyber attacks. We will continue to work with our partners inside and outside government, using every tool at our disposal, to defend and maintain global cybersecurity.”
“The FBI’s investigation revealed that a publicly-traded, China-based company is openly selling its customers the ability to hack into and control thousands of consumer devices worldwide. This operation sends a clear message to the PRC that the United States will not tolerate this shameless criminal conduct,” said Special Agent in Charge Stacey Moy of the FBI San Diego Field Office.
According to the court documents, the botnet was developed and controlled by Integrity Technology Group, a publicly-traded company headquartered in Beijing. The company built an online application allowing its customers to log in and control specified infected victim devices, including with a menu of malicious cyber commands using a tool called “vulnerability-arsenal.” The online application was prominently labelled “KRLab,” one of the main public brands used by Integrity Technology Group.
The FBI assesses that Integrity Technology Group, in addition to developing and controlling the botnet, is responsible for computer intrusion activities attributed to China-based hackers known by the private sector as “Flax Typhoon.” Microsoft Threat Intelligence described Flax Typhoon as nation-state actors based out of China, active since 2021, who have targeted government agencies and education, critical manufacturing, and information technology organizations in Taiwan, and elsewhere. The FBI’s investigation has corroborated Microsoft’s conclusions, finding that Flax Typhoon has successfully attacked multiple U.S. and foreign corporations, universities, government agencies, telecommunications providers, and media organizations.
A cybersecurity advisory describing Integrity Technology Group tactics, techniques and procedures was also published today by the FBI, the National Security Agency, U.S. Cyber Command’s Cyber National Mission Force, and partner agencies in Australia, Canada, New Zealand and the United Kingdom.
The government’s malware disabling commands, which interacted with the malware’s native functionality, were extensively tested prior to the operation. As expected, the operation did not affect the legitimate functions of, or collect content information from, the infected devices. The FBI is providing notice to U.S. owners of devices that were affected by this court-authorized operation. The FBI is contacting those victims through their internet service provider, who will provide notice to their customers.
The FBI’s San Diego Field Office and Cyber Division, the U.S. Attorney’s Office for the Western District of Pennsylvania, and the National Security Cyber Section of the Justice Department’s National Security Division led the domestic disruption effort. Assistance was also provided by the Criminal Division’s Computer Crime and Intellectual Property Section. These efforts would not have been successful without the collaboration of partners, including French authorities, and Lumen Technologies’ threat intelligence group, Black Lotus Labs, which first identified and described this botnet, which it named Raptor Train, in July 2023.
If you believe you have a compromised computer or device, please visit the FBI’s Internet Crime Complaint Center (IC3) or report online to CISA. You may also contact your local FBI field office directly.
The FBI continues to investigate Integrity Technology Group’s and Flax Typhoon’s computer intrusion activities.
Connecticut Man Sentenced to 48 Months in Connection with Theft of Firearms from St. Albans Gun ShopRead the Press Release
Burlington, Vermont – The United States Attorney’s Office for the District of Vermont stated that on September 16, 2024, Jonathan Mitchell, 33, of Meriden, Connecticut, was sentenced by United States District Judge William K. Sessions III to a term of 48 months’ imprisonment to be followed by a three-year term of supervised release. Mitchell previously pleaded guilty to stealing three firearms and conspiring to straw-purchase a firearm from a federal firearms licensee in St. Albans, Vermont.
According to court records, in July of 2023, Mitchell provided a co-conspirator $300 to purchase a firearm for him from the gun shop in St. Albans. Mitchell could not legally purchase or possess the firearm himself because of prior convictions arising out of an armed kidnapping and home invasion for which he was sentenced to 25 years of imprisonment. The transaction was delayed by the National Instant Criminal Background Check System and, several days later, Mitchell and a second co-conspirator returned to the gun shop and stole three firearms from its inventory. Mitchell was arrested in Connecticut in November of 2023.
United States Attorney Nikolas P. Kerest stated, “Straw purchases and thefts of firearms lead to violence in our communities. It is a top priority of the U.S. Attorney’s Office to keep Vermonters safe from violence, and, as this case exemplifies, we continue to use significant resources to address crimes associated with violence in Vermont.” U.S. Attorney Kerest also commended the investigatory efforts of the Bureau of Alcohol, Tobacco, Firearms and Explosives, as well as the Franklin County Sheriff’s Office.
“When firearms are stolen from federal firearm licensees, they often end up fueling gun violence in our communities,” said ATF Special Agent in Charge of the Boston Field Division James M. Ferguson “We are grateful for the strong collaboration between our law enforcement partners and federal prosecutors, whose efforts are essential in investigating and prosecuting these critical cases. Together, we are working to keep our communities safer by preventing stolen guns from being used in violent crimes.”
The case was prosecuted by Assistant U.S. Attorney Nate Burris. Mitchell was represented by Assistant Federal Public Defender Sara Puls.
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.
Columbia Man Sentenced to Federal Prison for Unlawfully Possessing AmmunitionRead the Press Release
COLUMBIA, S.C. — Jamel Lamont Lewis, 35, of Columbia, was sentenced to more than seven years in federal prison after pleading guilty to being a felon in possession of ammunition.
Evidence presented to the court showed that in December 2020, Fairfield County Sheriff’s Office deputies responded to a call of gunshots in the Ridgeway area of Fairfield County. Lewis and another man were firing shots as deputies approached. Deputies found 90 rounds of .22 caliber ammunition in Lewis’s pants pocket along with a quantity of crack cocaine. In July 2021, investigators with the Richland County Sheriff’s Department stopped a car that Lewis was riding in. During the stop, Lewis had to be restrained after he reached for a loaded .22 caliber pistol hidden in his waistband. Lewis also had approximately 65 grams of methamphetamine on him. The pistol was equipped with a large-capacity ammunition magazine.
Lewis is prohibited from possessing firearms or ammunition due to previous felony convictions. In 2007 and 2009, Lewis was convicted of aggravated assault for shooting two different victims. In 2011, Lewis was convicted of assault and battery, first degree, after being involved in a drive-by shooting. In 2018, he was convicted of failure to stop for a blue light and unlawful possession of a firearm after leading police on a vehicle chase and ultimately losing control of the vehicle and tossing a firearm while fleeing on foot.
United States District Judge Sherri A. Lydon sentenced Lewis to 85 months in prison, to be followed by a three-year term of court-ordered supervision. There is no parole in the federal system.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Fairfield County Sheriff’s Office, and the Richland County Sheriff’s Department. Assistant U.S. Attorney Christopher D. Taylor is prosecuting the case.
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Child Predator Sentenced for Aggravated Sexual Abuse of a Minor Child Under 12Read the Press Release
TULSA, Okla. – U.S. District Judge Sara E. Hill sentenced Bryan Stanley Monholland, 59, of Tulsa, for Aggravated Sexual Abuse of a Minor Under 12 Years of Age in Indian Country. Judge Hill ordered Monholland to a term of life imprisonment, followed by lifetime term of supervised release. Upon his release, Monholland will also be required to register as a sex offender.
According to Monhalland’s Petition to Enter Guilty Plea, and subsequent plea of guilty between July 2012 and March 2018, Monholland attempted to and knowingly engaged in a sexual act with a minor child victim who had not attained age 12.
According to court records, Monholland previously pleaded guilty to Lewd Molestation in 2004 and was required to register as a sex offender. He is a citizen of the Cherokee Nation and will remain in custody pending transfer to the U.S. Bureau of Prisons.
The FBI, Catoosa Police Department, and Tulsa Police Department investigated the case. Assistant U.S. Attorneys Valeria Luster, Stephanie Ihler, and Christian Harris prosecuted the case.
This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources tab on that page.
Central New York Man Sentenced to 10 Years for Possession of Child PornographyRead the Press Release
SYRACUSE, NEW YORK – David Hughes, aka Danielle Starr, 50, of Syracuse, and formerly of Oneida County, was sentenced today to serve 10 years in federal prison for possession of a sexually explicit video of a 13-year-old boy he received from the child over the internet.
United States Attorney Carla B. Freedman and Craig L. Tremaroli, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI) made the announcement.
In his earlier guilty plea, Hughes, who previously served 210 months in federal prison for a prior conviction for receipt and possession of child pornography, admitted that while on federal supervised release he used his monitored smart phone to communicate with a person he knew to be a 13-year-old boy. Hughes identified himself as, “Danielle Starr.” In communications captured by the monitoring program, Hughes discussed engaging in sexual conduct with the child, and knowingly received a sexually explicit video the child produced for and sent to Hughes. Law enforcement identified the child as a minor from out of state, and notified the child’s parents of the online activity.
In addition to the 10-year sentence, Hughes was sentenced to a concurrent 2-year term of imprisonment for violating the conditions of supervised release from his prior offense. He will be placed on supervision for 20 years when released from prison, and will continue to be required to register as a sex offender.
This case was investigated by the Federal Bureau of Investigation’s (FBI) Albany Division Child Exploitation and Human Trafficking Task Force and the United States Probation Department. Assistant U.S. Attorney Lisa M. Fletcher, Project Safe Childhood Coordinator for the Northern District of New York, prosecuted the case.
Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
California Restaurant Owner Convicted of Tax and COVID-19 Fraud SchemesRead the Press Release
A federal jury in San Diego convicted a California man yesterday of wire fraud, conspiracy and tax crimes for schemes to defraud COVID-19 relief programs and to file false tax returns.
According to court documents and evidence presented at trial, Leronce Suel was the majority owner of Rockstar Dough LLC and Chicken Feed LLC, both of which operated restaurants in the San Diego area, including Streetcar Merchants in the North Park neighborhood. He conspired with others to underreport over $1.7 million in gross receipts on Rockstar Dough’s 2020 corporate tax return and COVID-19 relief applications. Suel’s businesses fraudulently received $1,773,245 million in COVID-related Paycheck Protection Program loans and Restaurant Revitalization Fund grants, two programs created to provide financial assistance to Americans suffering economic harm as a result of the COVID-19 pandemic. Suel and his co-conspirator misappropriated COVID-19 relief program funds by making substantial cash withdrawals from their business bank accounts, purchasing a home in Arkansas and keeping more than $2.4 million in cash in his bedroom.
Suel did not file timely tax returns for 2018 and 2019, despite being legally required to do so. In addition, during the period 2020 through 2022, Suel did not file personal returns that reported flow through income from his businesses and personal income he received from his business, including millions of dollars in cash he withdrew. In 2023, Suel filed false original and amended tax returns for several years, including personal returns for 2016 and 2017 that included false depreciable assets and business losses.
In total, Suel caused a tax loss to the IRS of $1,292,976.
Suel was convicted of wire fraud, conspiracy to commit wire fraud, tax evasion, conspiracy to defraud the United States, filing false tax returns and failing to file tax returns. He was acquitted of the money laundering charges.
Following the convictions, Suel agreed to forfeit $1,466,918 in U.S. currency.
Suel is scheduled to be sentenced on Dec. 13. He faces a maximum penalty of 30 years in prison for each count of wire fraud and conspiracy to commit wire fraud, a maximum penalty of five years in prison for tax evasion and conspiracy to defraud the United States, a maximum penalty of three years in prison for each count of filing false tax returns and a maximum penalty of one year in prison for each count of failing to file tax returns. 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 Tara K. McGrath for the Southern District of California made the announcement.
IRS Criminal Investigation is investigating the case.
Trial Attorney Julia Rugg of the Justice Department’s Tax Division and Assistant U.S. Attorney Christopher Beeler for the Southern District of California are prosecuting the case.
California Man Sentenced to 10 Years for Drug ConspiracyRead the Press Release
SYRACUSE, NEW YORK – Franklin W. Jackson, age 29, of San Diego, California, was sentenced today to 120 months in prison for his role in a drug-trafficking organization that distributed methamphetamine in Onondaga County and elsewhere in Central New York.
The announcement was made by United States Attorney Carla B. Freedman and Frank A. Tarentino III, Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA), New York Division.
As part of his prior guilty plea, Jackson admitted that from approximately October 2020 through December 2020, he conspired with others to distribute methamphetamine in Central New York, which had been transported from California. Jackson further admitted that in December 2020, he and others loaded 11 vacuum-sealed packages containing more than 50 grams of pure methamphetamine into a rental car, which a coconspirator planned to drive from California to Syracuse, New York. Jackson admitted that he drove a separate car close behind the rental car, to make sure that the coconspirator did not abscond with the methamphetamine and also to act as a diversion to any law enforcement officers who attempted to stop the rental car carrying the drugs. Before ultimately being stopped by police in the area of Oklahoma City, Jackson did attempt to prevent them from stopping the rental car carrying the drugs.
United States District Judge David N. Hurd also ordered Jackson to serve a 4-year term of supervised release to follow his release from prison.
This case was investigated by DEA, U.S. Internal Revenue Service Criminal Investigation (IRS-CI), New York State Police-Violent Gang and Narcotics Enforcement Team (NYSP-VGNET), Onondaga County Sheriff’s Office, Onondaga County District Attorney’s Office, Syracuse Police Department, Oklahoma City Police Department, San Bernardino County Sheriff’s Office, and is being prosecuted by Assistant U.S. Attorney Matthew J. McCrobie.
Boynton Beach Man Sentenced to over 5 Years in Prison for Possessing a Firearm as a Convicted FelonRead the Press Release
MIAMI – On Sept. 16, Jacob Elijah Groover, 26, of Fort Pierce, Fla., was sentenced to 70 months in federal prison to be followed by two years’ supervised release by U.S. District Judge Aileen M. Cannon, after previously pleading guilty to possessing a firearm as a convicted felon.
In October of 2022, during the execution of a car stop related to a drug investigation, Martin County Sheriff’s Office deputies found a Glock 19 9mm firearm under the driver’s seat of the car Groover was driving. Groover admitted that the firearm was his, and that he knew he was previously convicted of a felony and was prohibited from possessing a firearm.
Markenzy Lapointe, U.S. Attorney for the Southern District of Florida; Anthony Salisbury, Special Agent in Charge of Homeland Security Investigations (HSI), Miami Field Office; and William D. Snyder, Martin County Sheriff, made the announcement.
HSI Fort Pierce and Martin County Sheriff’s Office investigated the case. The Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) provided assistance. Assistant U.S. Attorney Christopher Hudock prosecuted this 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 gun violence and other violent crime, 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.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov under case number 23-cr-14052.
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Boston Man Pleads Guilty to Fraudulently Obtaining COVID-Relief FundsRead the Press Release
BOSTON – A Boston man pleaded guilty today in federal court in Boston to fraud and false statements charges in connection with a scheme to fraudulently obtain pandemic-related relief funds from the Paycheck Protection Program (PPP) made available under the Coronavirus Aid, Relief, and Economic Security Act.
Robert Platt Jr., 45, pleaded guilty to one count of wire fraud and one count of making false statements. U.S. District Court Judge Myong J. Joun scheduled sentencing for Dec. 18, 2024. Platt was charged and arrested in February 2024 along with over 40 Heath Street Gang members/associates, who were charged with racketeering conspiracy, drug trafficking, firearms charges, and financial frauds, including COVID-related fraud.
The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) created a temporary loan program directed at small businesses called the Paycheck Protection Program (PPP). PPP loans were processed by private financial institutions and fully guaranteed by the U.S. Small Business Administration. If the small business used the loan funds for approved purposes, such as payroll, the loan could be forgiven by the financial institution and paid for by the U.S. Small Business Administration.
In April 2021, Platt submitted a fraudulent PPP loan application on behalf of his purported business. The application contained multiple false statements, including false representations regarding the purported business’s total gross income in 2019 and the purpose of the loan. Platt also submitted false tax records in support of his loan application. Based on the fraudulent application, Platt received approximately $20,833, which he then spent on non-business-related expenses.
The charge of wire fraud provides for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of up to $250,000 or twice the gross gain or loss from the offense. The charge of making false statements provides for a sentence of up to five years in prison, up to three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy; Boston Police Commissioner Michael Cox; Jonathan Mellone, Special Agent in Charge of Department of Labor, Office of Inspector General; and Harry T. Chavis Jr, Special Agent in Charge of the Internal Revenue Service Criminal Investigations made the announcement today. Assistant U.S. Attorneys Sarah Hoefle and Lucy Sun of the Organized Crime & Gang Unit are prosecuting the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Baltimore BGF Gang Member Sentenced to 38 Years in Federal Prison for Racketeering Conspiracy Charge, Including MurderRead the Press Release
Baltimore, Maryland – On September 17, 2024, U.S. District Judge James K. Bredar sentenced David Warren, a/k/a “Meshawn,” age 32, of Baltimore to 467 months in federal prison, followed by 5years of supervised release, for conspiring to participate in a violent racketeering enterprise known as the Black Guerilla Family (“BGF”) gang.
The sentence was announced by Erek L. Barron, United States Attorney for the District of Maryland; Special Agent in Charge Toni M. Crosby of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Special Agent in Charge William J. DelBagno of the Federal Bureau of Investigation, Baltimore Field Office; Commissioner Richard Worley of the Baltimore Police Department; and Chief Robert McCullough of the Baltimore County Police Department.
According to his plea agreement and other court documents, beginning in 2015 Warren was a member and associate of the BGF, also known as “Jamaa,” and participated in the BGF criminal enterprise, including a murder and a drug distribution conspiracy; further, Warren was a “hit man” accepting money in exchange for murdering others. BGF is a nationwide gang which began operating in prisons and is now involved in criminal activity, including murder, murder-for-hire, robbery, extortion, drug trafficking, obstruction of justice and witness intimidation, in cities throughout the United States, including Baltimore and throughout Maryland.
As detailed in his plea agreement, in May 2015, at the direction of a BGF leader, Warren and others fired upon a group of rivals who were attending a candlelight vigil for a deceased rival in east Baltimore. One man was shot during the attack and survived. A year later in May 2016, again at the behest of a BGF leader, Warren and a co-conspirator attempted to murder another rival and received a portion of an $8,000 payment in exchange for the attempt. Two weeks later, on Memorial Day weekend, Warrant attempted to murder a rival drug dealer at a holiday barbeque in north Baltimore. The man and four others were shot and survived but all sustained injuries.
In or about 2018, Warren became a hit man for co-defendant Davante Harrison, a/k/a “YGG Tay.” Between February and August 2018, Warren and others targeted three of Harrison’s rivals. On April 4, 2018, Warren and co-conspirators sought to locate and murder one of Harrison’s rivals at a residence of Chanette Neal and Justice Allen, the sister and mother of the rival. Not finding the rival at the residence, Warren and co-conspirators murdered Neal and Allen using a .357 caliber handgun. Later that day, Warren messaged a female associate and wrote that he was “waiting on the bag” meaning payment for the murder.
Additionally, on August 7, 2018 Warren and two co-conspirators, including co-defendant Wayne Prince, attempted to murder another rival of Harrison at a home that the rival owned and was having renovated. A construction crew was on site at the time. During the attempted murder, Prince and a co-conspirator shot and killed one of the construction workers, Bryan McKemy, using a .40 caliber handgun. They also shot a second construction worker in the head, but that person survived the attack. Afterwards, Warren messaged another that he was “waiting on a bag” indicating again that he anticipated being paid for the murder.
This case was made possible by investigative leads generated from the Bureau of Alcohol, Tobacco, Firearms, and Explosives’ (ATF) National Integrated Ballistic Information Network (NIBIN). NIBIN is the only national network that allows for the capture and comparison of ballistic evidence to aid in solving and preventing violent crimes involving firearms. NIBIN is a proven investigative and intelligence tool that can link firearms from multiple crime scenes, allowing law enforcement to quickly disrupt shooting cycles. For more information on NIBIN, visit https://www.atf.gov/firearms/national-integrated-ballistic-information-network-nibin.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case is also part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
United States Attorney Barron commended the ATF, the FBI, the Baltimore City Police Department, and the Baltimore County Police Department for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Ari D. Evans, Patricia C. McLane, and Kim Y. Hagan who are prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/project-safe-neighborhoods-psnexile and https://www.justice.gov/usao-md/community-outreach.
Anchorage man charged with threatening U.S. Supreme Court Justices, their family membersRead the Press Release
ANCHORAGE, Alaska – A federal grand jury in Alaska returned an indictment today charging an Anchorage man with threatening to injure and kill six U.S. Supreme Court Justices and some of their family members.
According to court documents, Panos Anastasiou, 76, was arrested today. The indictment alleges that between March 10, 2023, and July 16, 2024, Anastasiou sent over 465 messages to the Supreme Court through a public website the court maintained.
Beginning on Jan. 4, 2024, Anastasiou’s messages allegedly escalated to messages intending to threaten harm toward the victims. The messages contained violent, racist and homophobic rhetoric coupled with threats of assassination by torture, hanging and firearms.
Anastasiou is charged with nine counts of making threats against a federal judge and 13 counts of making threats in interstate commerce. The defendant made his initial court appearance today before U.S. Magistrate Judge Kyle F. Reardon of the U.S. District Court for the District of Alaska. If convicted, he faces up to 10 years in prison for each count of making threats against a federal judge and up to five years in prison for each count of making threats in interstate commerce. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney S. Lane Tucker of the District of Alaska made the announcement.
The Supreme Court of the United States Police, Protective Intelligence Unit, with significant support from the U.S. Marshals Service and the FBI Anchorage Field Office, is investigating the case.
Assistant U.S. Attorney Will Taylor is prosecuting the case.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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ATF honors U.S. Attorney Luger during annual awards ceremonyRead the Press Release
WASHINGTON, D.C. - Bureau of Alcohol, Tobacco, Firearms, and Explosives Director Steven Dettelbach, with the assistance of ATF Assistant Director Marvin Richardson, presented U.S. Attorney Andrew Luger, for the District of Minnesota, with the Honorary Award of Appreciation during the 28th Annual Awards Ceremony held at ATF headquarters in Washington, D.C., Sept. 18, 2024.
During the ceremony, U.S. Attorney Luger was recognized for his exceptional level of support to the overall mission of ATF. He was praised for being a steadfast ally to ATF in the fight to combat violent crime and was commended for his innovative strategy of both targeting those who are committing firearm violence and disrupting the supply of firearms to criminals. He was additionally recognized for leading public outreach and education efforts, raising awareness of the causes of firearms violence, and promoting evidence-based prevention strategies.
The Honorary Award of Appreciation recognizes senior officials, the head of or the entire staff of a major department or organization that provided an exceptional level of assistance to an ATF field division or directorate. The Award of Appreciation is one of ten Honorary Awards given, in addition to the Memorial and Meritorious Award categories, all of which make up the award ceremony held annually in the Elizebeth Smith Friedman Auditorium at ATF Headquarters in Washington, D.C.
ATF is the federal law enforcement agency with jurisdiction involving firearms and violent crimes and regulates the firearm industry. For more information about ATF, go to www.atf.gov or follow @ATFHQ on Twitter. Follow @ATFStPaul on Twitter for ATF news in North Dakota, South Dakota, Minnesota, and Wisconsin.
17 September 2024
Woman admits to submitting false disaster relief applications resulting in $620,000 lossRead the Press Release
HOUSTON – A 34-year-old former Houston resident has pleaded guilty to conspiracy to commit wire fraud, announced U.S. Attorney Alamdar S. Hamdani.
From March 2020 until March 2021, Cora Chantail Custard conspired with others to submit false and fraudulent loan applications for financial assistance both personally and on behalf of others.
The co-conspirators submitted false applications to the Small Business Administration (SBA), Federal Emergency Management Agency (FEMA) and multiple state unemployment insurance agencies.
Over the course of the conspiracy, Custard resided in both Houston and San Antonio.
As part of her plea, Custard admitted to using her Facebook account to advertise her services to file fraudulent disaster relief applications. Custard’s posts repeatedly described the scheme to her social media followers as “doing apps,” with the ability to obtain between $6,000 and $8,000 for an application within four to seven days of filing.
Custard submitted or caused the submission of over 100 fraudulent Economic Injury Disaster Loan applications, at least 36 of which resulted in advance payments totaling $345,000.
Further investigation revealed Custard filed at least 30 fraudulent FEMA Disaster Benefit applications related to Hurricane Laura in August 2020 and Hurricane Sally in September 2020. At least 16 of those fraudulent applications resulted payouts totaling approximately $75,000.
Additionally, Custard committed several other fraudulent acts like filing over 100 false unemployment insurance applications in Michigan, Illinois and several other states for her own and others’ benefits. At least 20 of those fraudulent applications resulted in payments totaling approximately $200,000.
Due to her actions, multiple agencies lost a total of $620,000.
U.S. District Judge David Hittner will impose sentencing in January 2025. At that time, Custard faces up to five years in federal prison and a possible $250,000 maximum fine.
She was permitted to remain on bond pending that hearing.
The Department of Homeland Security-Office of Inspector General (OIG), IRS-Criminal Investigation, Treasury Inspector General for Tax Administration, Social Security Administration-OIG, SBA-OIG and Department of Labor-OIG conducted the investigation.
Assistant U.S. Attorney Karen M. Lansden is prosecuting the case.
Woman Sentenced to One Year in Prison for Pandemic Loan FraudRead the Press Release
ST. LOUIS – U.S. District Judge Matthew T. Schelp on Tuesday sentenced a woman who obtained COVID-19 pandemic loans for a fake company called the “Barbie Factory” to a year and a day in prison.
Juashayla Jane Walls, 31, of Jennings, Missouri, was also ordered to repay $55,833 and will be placed on supervised release for five years after her release from prison.
Walls was originally scheduled to be sentenced in July, but after she claimed she used some of the money for another business, Judge Schelp ordered an accounting of where every dollar of the loan money went. In one example he gave in court Tuesday, he said she spent nearly $8,000 at a casino. Walls also spent loan money on shopping trips and other personal purchases, her plea agreement says
Judge Schelp called the crime “sickening” and “disheartening,” as it came during a worldwide crisis and took money from a program that was intended to help struggling American businesses and jobs during the pandemic.
Walls submitted a fraudulent Paycheck Protection Program (PPP) loan application on Aug. 25, 2020, seeking $20,000 for the “Barbie Factory.” Walls falsely claimed that the company was in operation, had four employees and a monthly payroll of $8,000. She also submitted a fraudulent Internal Revenue Service tax form that said employees had been paid a total of $96,000 in wages, tips and other compensation.
On March 2, 2021, Walls submitted a loan forgiveness application, falsely claiming that she had used the loan for payroll. Her application was approved and the loan was forgiven.
Walls’ second loan application for $20,000 was not approved.
A third application, submitted April 16, 2021, and seeking $20,833, was approved. Walls falsely claimed she was self-employed and had a gross annual income of $151,104. She successfully submitted a fraudulent loan forgiveness application on Aug. 14, 2021.
In September of 2021, Walls submitted fraudulent applications to the Economic Injury Disaster Loan Program, a Small Business Administration program intended to help struggling business owners during the pandemic. Walls again falsely claimed the $15,000 she received would go to Barbie Factory payroll and other businesses expenses.
Walls pleaded guilty in April in U.S. District Court in St. Louis to one felony count of wire fraud.
The FBI investigated the case. Assistant U.S. Attorney Kyle Bateman prosecuted the case.
Anyone with information about pandemic fraud should call the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or report via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Westwego Woman Indicted for Unemployment Insurance Fraud and Covid FraudRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Duane A. Evans announced today that REHA JANEE ARVIE, (“ARVIE”), age 33, of Westwego, LA, was indicted on September 6, 2024 for Conspiracy to Commit Mail Fraud (Count1), in violation of Title 18, United States Code, Section 1349; Mail Fraud (Counts 2 and 3), in violation of Title 18, United States Code, Section 1341; and, Making False Statements (Count 4), in violation of Title 18, United States Code, Section 1001(a)(2).
According to the indictment, beginning in or around July 2020, ARVIE defrauded, and attempted to defraud, various state offices of Unemployment Insurance (“UI”) through the submission of approximately 100 fraudulent UI applications. ARVIE recruited friends and family via Facebook to file these fraudulent UI applications. Additionally, ARVIE filed fraudulent UI applications for herself and others, in various states including Arizona, California, Colorado, Hawaii, Indiana, Missouri, Nevada, Pennsylvania, Utah, Texas, and the territory of Guam. ARVIE charged those for whom she filed fraudulent UI claims fees ranging from $1,200.00 to $1,500.00. Moreover, during the investigation, ARVIE lied to federal agents during an interview.
Later, on April 8, 2021, ARVIE unlawfully obtained a Paycheck Protection Program (“PPP”) loan from the United States Small Business Administration (“SBA”). Specifically, ARVIE falsely claimed on her PPP application that she had income of $102,357.00 for the year 2020 and submitted a fraudulent Schedule C in support thereof. As a result of her false statements, ARVIE received a PPP loan of approximately $20,832.00.
If convicted, ARVIE faces up to twenty (20) years imprisonment, per count, for Counts 1 through 3 and up to five (5) years imprisonment for Count 4. As to each count, ARVIE also faces up to three (3) years of supervised release, a fine up to $250,000.00, or twice the gross gain to the defendant, or twice the gross loss to any victim, and a $100.00 mandatory special assessment fee.
U.S. Attorney Evans reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
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. The Department of Veterans Affairs, Office of the Inspector General, is an active member of the PRAC Fraud Task Force.
“The PRAC was established to promote transparency and facilitate coordinated oversight of the federal government’s COVID-19 pandemic response. The PRAC’s 20 member Inspectors General identify major risks that cross program and agency boundaries to detect fraud, waste, abuse, and mismanagement in the more than $5 trillion in COVID-19 spending, including spending via the Paycheck Protection Program (PPP), and Economic Injury Disaster Loan (EIDL) program. This case was also supported by the PRAC’s Pandemic Analytics Center of Excellence, which applies the latest advances in analytic and forensic technologies to help OIGs and law enforcement pursue data-driven pandemic relief fraud investigations.”
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The United States Attorney’s Office would also like to acknowledge the assistance of the U.S. Department of Labor, Office of Inspector General; the Department of Veteran Affairs, Office of Inspector General; The Pandemic Response Accountability Committee; the United States Department of Homeland Security Office of Inspector General COVID Fraud Unit; and the California Employment Development Department with this matter. The prosecution of this case is being handled by Assistant United States Attorney Brian M. Klebba, Chief of the Financial Crimes Unit.
Weslaco man sentenced for attempting to import shoebox of crystal methRead the Press Release
McALLEN, Texas – A 23-year-old man has been sentenced for drug trafficking, announced U.S. Attorney Alamdar S. Hamdani.
Jesse James Gonzalez pleaded guilty Sept. 27, 2023.
U.S. District Judge Micaela Alvarez has now ordered Gonzalez to serve 120 months in federal prison to be immediately followed by five years of supervised release. At the hearing, the court heard additional information about how Gonzalez’s criminal history was repetitive and warranted a lengthy sentence. In handing down the sentence, the court noted the societal harms of trafficking in narcotics and the destruction in communities that it occurs.
On Nov. 29, 2022, Gonzalez attempted to make entry into the United States through the Donna Port of Entry. Gonzalez was carrying a shoebox containing two packages of white crystal meth.
Authorities discovered the meth during the inspection process and Gonzalez subsequently admitted he had “ice” in the shoebox.
Homeland Security Investigations and Customs and Border Protection conducted the investigation with the assistance of the Drug Enforcement Administration.
Assistant U.S. Attorney (AUSA) Devin V. Walker prosecuted the case. AUSA Ted Parran handled the sentencing hearing.
Virginia Man Admits Conspiring to Launder Money Obtained from Internet-Enabled Romance ScamsRead the Press Release
NEWARK, N.J. – A Virginia man today admitted to conspiring to launder money taken from victims across the United States as a part of a series of romance scams, U.S. Attorney Philip R. Sellinger announced.
Nana Yaw Marfo, 39, of Alexandria, Virginia, pleaded guilty before U.S. District Court Judge Esther Salas in Newark federal court today to an information charging him with one count of money laundering conspiracy.
According to documents filed in this case and statements made in court:
Marfo laundered money obtained through internet-enabled romance scams through numerous bank accounts opened in different business names. After receiving the romance scam victims’ money, Marfo wired thousands of dollars to overseas bank accounts. As part of this scheme, Marfo received and transferred approximately $4.7 million, knowing that the transactions were for the purpose of disguising or hiding the proceeds of criminal activity.
The money laundering conspiracy charge has a maximum prison term of 20 years, and a maximum fine of $500,000 or twice the value of the funds involved in the transfer, whichever is greater. Sentencing is scheduled for Feb. 4, 2025.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Acting Special Agent in Charge Nelson I. Delgado in Newark and Special Agent in Charge Gregory D. Nelsen in Cleveland, Ohio, with the investigation leading to the guilty plea.
The government is represented by Assistant U.S. Attorneys David E. Malagold and Ingrid Eicher of the Criminal Division in Newark.
marfo.information.pdfUnited States Attorney Breon Peace Announces Whistleblower Non-Prosecution Pilot ProgramRead the Press Release
United States Attorney Breon Peace today announced that the U.S. Attorney’s Office for the Eastern District of New York (the “Office”) has implemented a new Whistleblower Non-Prosecution Pilot Program (the “Whistleblower Pilot Program”). The Whistleblower Pilot Program, which is effective immediately, is designed to encourage individuals to disclose original and actionable information about previously unknown criminal conduct undertaken by or through public or private entities or organizations. It does so by providing transparency regarding the conditions under which an individual’s voluntary self-disclosure of criminal conduct to the Office, coupled with the agreement to fully cooperate in the investigation of others involved, may make the individual eligible for a non-prosecution agreement (“NPA”). The Whistleblower Pilot Program will enable the Office to investigate and hold wrongdoers accountable more quickly, particularly with respect to criminal conduct that might otherwise go undetected or be impossible to prove, and will, in turn, further encourage companies to create and enforce compliance programs that help prevent, detect, and remediate misconduct and to report misconduct when it occurs.
The program applies to circumstances where an individual voluntarily discloses to the Office information regarding criminal conduct undertaken by two or more individuals, or by or through public or private entities or organizations, including corporations, partnerships, non-profits, exchanges, money services businesses, banks, financial institutions, investment advisers, or investment funds, involving: (1) fraud or corporate control failures; (2) intellectual property theft and related violations; (3) market integrity; (4) state or local bribery or fraud relating to federal, state, or local funds; (5) obstruction of justice, perjury, or false statements; (6) healthcare fraud, including violations of the Anti-Kickback statute; and (7) money laundering related to any of the prior-listed crimes. Pursuant to the Whistleblower Pilot Program, the Office will enter into an NPA in exchange for the individual’s cooperation where the following conditions are met:
- The misconduct has not previously been made public and is not already known to the Department of Justice (“DOJ”);
- The individual discloses the criminal conduct voluntarily to EDNY and not in response to a government inquiry or obligation to report misconduct to EDNY or any other component of DOJ, and prior to imminent threat of disclosure or government investigation;
- The individual provides substantial assistance in the investigation and prosecution of one or more equally or more culpable persons, and is prepared to cooperate fully with this Office in its investigation and prosecution of the disclosed conduct, including testifying in any proceeding in the Eastern District of New York or elsewhere as requested by the Office;
- The individual provides complete, truthful, and accurate information, and discloses all criminal conduct in which the individual has participated and of which the individual is aware;
- The individual is not an elected, or appointed and confirmed, federal, state, local or foreign official; a federal law enforcement official; the highest-ranking person within the organization where the misconduct occurred (e.g., the Chief Executive Officer) or the person who, regardless of title, exercises primary control over the operations of such organization; or the head of a public agency or entity;
- The individual’s role in the alleged misconduct did not involve: leading or originating the illegal activity; violence or the threat of violence; any federal or state sex offense involving fraud, force, coercion, or a minor; or any federal or state offense involving terrorism; and
- The individual has not been previously convicted of any felony involving: violence or the threat of violence; any sex offense involving force, fraud, coercion, or a minor; terrorism; or fraud or dishonesty.
If an individual discloses information to the Office regarding the covered crimes but does not meet the requirements set forth above, the Office will nevertheless consider exercising discretion to extend a non-prosecution agreement, taking into account certain factors outlined in the Whistleblower Pilot Program, including, but not limited to, information provided by the individual about individuals or entities located outside the United States of America that could lead to the investigation and prosecution of such individuals or entities; whether the individual has information about criminal conduct by a federal elected or appointed and confirmed official, or by a senior officer and/or member of the board of directors of a publicly traded company; and the adequacy of non-criminal sanctions.
Finally, to receive a non-prosecution agreement under the Whistleblower Pilot Program, the reporting individual will be required to forfeit or disgorge any proceeds from the criminal wrongdoing and pay restitution to victims.
The specific terms of the Whistleblower Pilot Program, along with a form for voluntary self-disclosures and the email address to which such forms should be sent, is available on the Office’s website here.
U.S. Attorney’s Office to Work with Local Partners to Reduce Domestic ViolenceRead the Press Release
WASHINGTON – Attorney General Merrick B. Garland has approved an initial set of 78 communities across 47 states, territories, and the District of Columbia for designation under Section 1103 of the Violence Against Women Act Reauthorization Act of 2022.
The Justice Department - through its United States Attorney’s offices (USAOs) and Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Field Divisions - will partner with each designated jurisdiction to develop a plan to reduce intimate partner firearm violence and to prioritize prosecutions of domestic violence offenders prohibited under 18 U.S. Code Section 922(g) from owning firearms.
“It has been my observation that many of the persons who are the drivers of violence in the local community at large, use violence in their most personal relationships as well. Increasing our focus on intimate partner firearm violence will invariably make the community safer for all its residents,” said United States Attorney Clifford D. Johnson.
“These important partnerships will strengthen our ability to investigate these cases and increase our coordination efforts among law enforcement and communities in order to assist victims of domestic violence,” said ATF Special Agent in Charge Christopher Amon of the Chicago Field Division. “ATF prioritizes investigations of prohibited persons who illegally possess firearms and look forward to the Northern District of Indiana United States Attorney's leadership to prosecute these important cases.”
The Northern District of Indiana will re-direct the Deputy Prosecutor from the Lake County Prosecutor’s office who currently works in the NDIN USAO (as a Special Assistant United States Attorney) to focus on this initiative. This SAUSA will serve as coordinator between the Lake County Prosecutor Office, the Gary Police Department and this Office.
Communities have been designated in close coordination with community stakeholders. They include rural areas, suburban areas, urban areas, and Tribal communities. The Justice Department used data to identify communities that could benefit from increased focus on intimate partner violence resources and where the local jurisdiction is committed to partnering with the Department to increase the use of federal tools to prosecute offenders under 18 U.S.C. 922(g). The designation represents the partnership and coordination between the department and the local jurisdiction to ensure federal resources are being leveraged effectively to address intimate partner firearm violence.
In the Northern District of Indiana, Gary, Indiana, is the jurisdiction that has been designated for special emphasis under this initiative.
The Justice Department anticipates additional jurisdictions to be designated as USAOs continue coordination with their local stakeholders. All USAOs, with or without specific community designations under Section 1103, will continue to combat intimate partner firearm violence and prioritize prosecutions of domestic violence offenders as part of their Project Safe Neighborhoods strategy and in support of the Department’s Comprehensive Strategy for Reducing Violent Crime.
U.S. Attorney’s Office to Work with Local Partners to Reduce Domestic ViolenceRead the Press Release
U.S. Justice Department Designates Lansing in the Western District of Michigan Under Section 1103 of the Violence Against Women Act, Prioritizing Firearms Prosecutions of Domestic Violence Offenders
Grand Rapids, Mich – U.S. Attorney for the Western District of Michigan Mark Totten today announced that U.S. Department of Justice Attorney General Merrick B. Garland has approved an initial set of 78 communities across 47 states, territories, and the District of Columbia for designation under Section 1103 of the Violence Against Women Act Reauthorization Act of 2022. Last Friday marked the 30th Anniversary of the VAWA. The City of Lansing was identified as a designated community in the Western District of Michigan.
The Justice Department - through its United States Attorney’s offices (USAOs) and Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Field Divisions - will partner with each designated jurisdiction to develop a plan to reduce intimate partner firearm violence and to prioritize prosecutions of domestic violence offenders prohibited under 18 U.S. Code Section 922(g) from owning firearms.
“Domestic violence harms families, perpetuates social inequities, and leaves victims fearful and feeling like they have nowhere to turn,” said U.S. Attorney Mark Totten. “My office is fully committed to working with our law enforcement and community partners to protect victims and we will continue to identify opportunities to prosecute gun offenders with a record of domestic and intimate-partner violence.”
“Three decades ago, VAWA transformed our national response to domestic violence, sexual assault, dating violence, and stalking,” said Attorney General Garland. “Its enactment sent a message: gender-based and intimate-partner violence is not just a private matter, not just a local matter, but a national crisis — one that our country was no longer willing to tolerate. As we take stock of the progress that VAWA has advanced, the Department of Justice remains committed to using every tool at our disposal to end these forms of violence and support survivors.”
“Everyone deserves to feel safe in their relationships. The use of firearms to commit domestic violence is unacceptable,” said ATF Detroit Special Agent in Charge James Deir. “ATF and our law enforcement partners remain resolute in holding violent offenders who threaten the safety of their family and our community accountable.”
Communities have been designated in close coordination with community stakeholders. They include rural areas, suburban areas, urban areas, and Tribal communities. The Justice Department used data to identify communities that could benefit from increased focus on intimate partner violence resources and where the local jurisdiction is committed to partnering with the Department to increase the use of federal tools to prosecute offenders under 18 U.S.C. 922(g). The designation represents the partnership and coordination between the department and the local jurisdiction to ensure federal resources are being leveraged effectively to address intimate partner firearm violence.
The Justice Department anticipates additional jurisdictions to be designated as USAOs continue coordination with their local stakeholders. All USAOs, with or without specific community designations under Section 1103, will continue to combat intimate partner firearm violence and prioritize prosecutions of domestic violence offenders as part of their Project Safe Neighborhoods strategy and in support of the Department’s Comprehensive Strategy for Reducing Violent Crime.
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Recent domestic violence cases prosecuted by the Western District of Michigan
Lansing Man Sentenced For Illegal Gun Possession
Serial Domestic Abuser Sentenced To 46 Months In Federal Prison For Illegally Possessing A Firearm
U.S. Attorney Mark Totten pledges to use criminal firearm laws to protect victims of domestic violence
Muskegon Man Sentenced To 15 Years In Prison For Stalking His Ex-Wife And Possessing Firearms
U.S. Attorney Mark Totten Vows to Fight Gender-Based Violence
U.S. Attorney's Office to Work with Local Partners to Reduce Domestic ViolenceRead the Press Release
LAS VEGAS – Attorney General Merrick B. Garland has approved an initial set of 78 communities across 47 states, territories, and the District of Columbia for designation under Section 1103 of the Violence Against Women Act Reauthorization Act of 2022.
The Justice Department - through its United States Attorney’s offices (USAOs) and Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Field Divisions - will partner with each designated jurisdiction to develop a plan to reduce intimate partner firearm violence and to prioritize prosecutions of domestic violence offenders prohibited under 18 U.S. Code Section 922(g) from owning firearms.
“The strength of our local partnerships plays a key role in our focused efforts to address and reduce intimate partner firearm violence in Las Vegas, and to support and seek justice for victims and survivors,” said U.S. Attorney Jason M. Frierson for the District of Nevada. “The U.S. Attorney’s Office is committed to leveraging our resources to combat firearm violence against intimate partners. We will continue to work hand in hand with the ATF and Clark County District Attorney’s Office to hold violent intimate partner offenders accountable.”
“ATF is committed to our pledge of ensuring the safety of the public, which includes continuing our efforts to ensure protection from intimate partner firearm violence,” said Special Agent in Charge Jennifer Cicolani, San Francisco Field Division, Bureau of Alcohol, Tobacco, Firearms & Explosives. “We will continue to work with our prosecutorial partners and local law enforcement to ensure that this conduct is not tolerated within the Las Vegas community and that the prosecution of domestic offenders, who are prohibited from having a firearm, are a priority.”
The U.S. Attorney’s Office for the District of Nevada works closely with the Clark County District Attorney’s Office to address intimate partner gun violence in the Las Vegas Valley. Where appropriate, possession of firearms by dangerous, repeat domestic violence offenders are adopted for prosecution under federal law. Prosecution of the most dangerous offenders under the federal statute often results in a substantially longer sentence for that offender.
Communities have been designated in close coordination with community stakeholders. They include rural areas, suburban areas, urban areas, and Tribal communities. The Department used data to identify communities that could benefit from increased focus on intimate partner violence resources and where the local jurisdiction is committed to partnering with the Department to increase the use of federal tools to prosecute offenders under 18 U.S.C. 922(g). The designation is an indicator of partnership and coordination between the Department and the local jurisdiction to ensure federal resources are being leveraged effectively to address intimate partner firearm violence.
The Justice Department anticipates additional jurisdictions to be designated as USAOs continue coordination with their local stakeholders. All USAOs, with or without specific community designations under Section 1103, will continue to combat intimate partner firearm violence and prioritize prosecutions of domestic violence offenders as part of their Project Safe Neighborhoods strategy and in support of the Department’s Comprehensive Strategy for Reducing Violent Crime.
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U.S. Attorney Jessica D. Aber and HUD Inspector General Rae Oliver Davis host Safe Housing SummitRead the Press Release
RICHMOND, Va. – U.S. Attorney Jessica D. Aber for the Eastern District of Virginia and U.S. Department of Housing and Urban Development Inspector General Rae Oliver Davis hosted a Safe Housing Summit in Richmond on Sept. 16 focused on combatting sexual misconduct, promoting environmental justice, and protecting the civil rights of residents in HUD-assisted housing.
The summit was attended by representatives from a number of organizations, including the Richmond Redevelopment Housing Authority, Virginia Organizing, Community Climate Collaborative, Legal Aid Justice Center, Richmond Tenants Union, Storefront for Community Design, Virginia Environmental Justice Collaborative, Housing Opportunities Made Equal (HOME) of Virginia, Virginia Poverty Law Center, Discoverself Fellowship, United Communities Against Crime, and the University of Richmond.
“The Department of Justice and the U.S. Attorney’s Office play an important role in fulfilling the promise of HUD-assisted housing,” said U.S. Attorney Aber. “We are very pleased to be joined by community groups and residents, providing an opportunity both to listen to their concerns and to share with them information regarding resources and recourse. Our message today is that the law is on your side and assistance is available to you.”
“Along with the strong commitment from U.S. Attorney Aber, community outreach events like we hosted today in Richmond allow HUD OIG to amplify for HUD tenants and applicants seeking housing that they have a right to housing that is void of sexual misconduct, and safe from lead and environmental hazards,” said Inspector General Oliver Davis. “We remain committed to investigating those who risk the health and safety of HUD-assisted families or who victimize vulnerable people receiving HUD assistance with our partners at the U.S. Attorney’s Office.”
Participants discussed the Justice Department’s environmental justice enforcement strategy. In particular, the U.S. Attorney’s Office prioritizes cases that will reduce harm to public health and the environment for overburdened and underserved communities, and lead paint is a matter of priority for HUD OIG. Participants discussed the Environmental Protection Agency’s mapping of environmental justice indicators like lead paint across the Eastern District of Virginia.
The event also featured a presentation on combatting sexual harassment in housing through civil and criminal enforcement of the Fair Housing Act. Participants discussed how to identify sexual harassment affecting or impairing housing rights, from quid pro quo demands to a hostile housing environment, and covered various options for enforcing those rights, either privately, through administrative remedies within HUD’s Office of Fair Housing and Equal Opportunity, or via criminal charges. Participants learned about the case of Joseph Centanni, a New Jersey Section 8 landlord who agreed to pay $4.5 million in a civil enforcement action relating to numerous accusations of demands for sexual acts from tenants.
The summit also addressed the enforcement of civil rights laws in housing. The discussion centered on criminal enforcement of the Fair Housing Act, which prohibits violence or threats of violence on the basis of race or other protected categories to deny a resident’s enjoyment of a housing right, such as leasing or occupying a dwelling. One recent example from the Eastern District of Virginia is the prosecution of David L. Merryman, a landlord in Hampton and Newport News, for fraud, identity theft, and multiple civil rights offenses. In his guilty plea, Merryman admitted to acts of violence and numerous threats to tenants on account of their race. The presentation from the U.S. Attorney’s Office noted that race-based interference with fair housing is the most frequently charged hate crime statute in the United States.
If you have or someone you know has information about environmental hazards and unsafe unit conditions in HUD-assisted housing or you have or someone you know has been a victim of sexual harassment, sexual assault, or sexual exploitation—even if the events occurred years ago—report it to the HUD Office of Inspector General Hotline at 1-800-347-3735 or visit the website at www.hudoig.gov/hotline. You may also file a complaint with HUD’s Office of Fair Housing and Equal Opportunity at https://www.hud.gov/fairhousing/fileacomplaint.
You may also contact the U.S. Department of Justice at 1-844-380-6178 or visit www.civilrights.justice.gov. Anyone who believes they may have been a victim of environmental injustices or housing discrimination may also contact the U.S. Attorney’s Office at (804) 819-5400 or by email at usavae.usattys@usdoj.gov.
U.s. Attorney’s Office to Work with Local Partners to Reduce Domestic ViolenceRead the Press Release
BILLINGS — Attorney General Merrick B. Garland has approved an initial set of 78 communities across 47 states, territories, and the District of Columbia for designation under Section 1103 of the Violence Against Women Act Reauthorization Act of 2022.
The Justice Department - through its United States Attorney’s offices (USAOs) and Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Field Divisions - will partner with each designated jurisdiction to develop a plan to reduce intimate partner firearm violence and to prioritize prosecutions of domestic violence offenders prohibited under 18 U.S. Code Section 922(g) from owning firearms.
In the District of Montana, Gallatin County and Bozeman have been designated.
“Domestic gun violence not only leads to tragedy within families, but it also ripples through our communities. Everyone has a right to feel safe in their homes and communities. Reducing intimate partner firearm violence and getting dangerous offenders off the street are top priorities for our office. By continuing our commitment to work with our local, state and federal law enforcement partners, and community stakeholders, we are making sure that persons who are prohibited under federal law from having guns are prosecuted and held accountable,” U.S. Attorney Laslovich said.
“Domestic abuse was once considered a private matter to be suffered alone in the shadows,” said ATF Special Agent in Charge Brent Beavers. “VAWA has steadily shone a light on this issue, resulting in significant decreases in domestic violence over the past few decades. We recognize firearms are often used by abusers to carry out acts of domestic violence. To combat this, we encourage our law enforcement partners to seek all available federal funds so we may continue to disrupt this violence and strengthen our support of all victims.”
"As the County Attorney in Gallatin County, I witness firsthand the devastating impact of domestic violence on families and communities,” said Gallatin County Attorney Audrey Cromwell. “Gallatin County's designation as a VAWA jurisdiction and partnership with the US Attorney's Office marks a crucial advancement in our fight against domestic violence. By collaborating at both local and federal levels, we enhance our capability to tackle the complexities of these cases, especially those involving gun violence. Our joint efforts are not only aimed at reducing domestic violence and preventing homicides but also at providing robust support to survivors, ensuring they have the resources and protection necessary to rebuild and thrive. This initiative underscores our commitment to a safer, more just community."
The U.S. Attorney’s Office for the District of Montana is working with law enforcement to reduce gun violence through coordinated, multi-agency investigations through the federal initiative, Project Safe Neighborhoods, to ensure that persons who violate federal firearms law are charged, convicted and sentenced to federal prison, where there is no parole.
Communities have been designated in close coordination with community stakeholders. They include rural areas, suburban areas, urban areas, and Tribal communities. The Justice Department used data to identify communities that could benefit from increased focus on intimate partner violence resources and where the local jurisdiction is committed to partnering with the Department to increase the use of federal tools to prosecute offenders under 18 U.S.C. 922(g). The designation represents the partnership and coordination between the department and the local jurisdiction to ensure federal resources are being leveraged effectively to address intimate partner firearm violence.
The Justice Department anticipates additional jurisdictions to be designated as USAOs continue coordination with their local stakeholders. All USAOs, with or without specific community designations under Section 1103, will continue to combat intimate partner firearm violence and prioritize prosecutions of domestic violence offenders as part of their Project Safe Neighborhoods strategy and in support of the Department’s Comprehensive Strategy for Reducing Violent Crime.
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U.s. Attorney’s Office to Work with Local Partners to Reduce Domestic ViolenceRead the Press Release
TYLER, Texas – Attorney General Merrick B. Garland has approved an initial set of 78 communities across 47 states, territories, and the District of Columbia for designation under Section 1103 of the Violence Against Women Act Reauthorization Act of 2022.
The Justice Department - through its United States Attorney’s offices (USAOs) and Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Field Divisions - will partner with each designated jurisdiction to develop a plan to reduce intimate partner firearm violence and to prioritize prosecutions of domestic violence offenders prohibited under 18 U.S. Code Section 922(g) from owning firearms. In the Eastern District of Texas, Gregg County has received designation.
“Domestic violence is a significant problem in our nation and presents a special challenge to prosecutors,” said Eastern District of Texas U.S. Attorney Damien M. Diggs. “The causes of domestic violence are numerous and varied and require a concerted national and local effort if there is going to be success at tackling this problem. Addressing domestic and sexual violence must be a linchpin in the attack on violent crime. As such, we are proud to announce that in Gregg County we will prioritize firearms prosecutions of domestic violence offenders to aid our state and local partners, who do the heavy lifting in this important fight.”
“One of ATF-Dallas Field Division’s top priorities has been, and will continue to be, to reduce domestic violence, especially those incidents in which firearms are used,” said ATF Dallas Special Agent in Charge Jeffrey C Boshek II. “All people, no matter their gender, race, creed, or color, deserve to have relationships free from domestic violence– a heinous crime that terrorizes families, shatters homes, and destroys lives. Let it serve as a notice- through our partnerships with the Eastern District of Texas U.S. Attorney’s Office, and state and local law enforcement agencies, ATF will remain steadfast in its pursuit of domestic abusers in possession of firearms illegally.”
Communities have been designated in close coordination with community stakeholders. They include rural areas, suburban areas, urban areas, and Tribal communities. The Justice Department used data to identify communities that could benefit from increased focus on intimate partner violence resources and where the local jurisdiction is committed to partnering with the Department to increase the use of federal tools to prosecute offenders under 18 U.S.C. 922(g). The designation represents the partnership and coordination between the department and the local jurisdiction to ensure federal resources are being leveraged effectively to address intimate partner firearm violence.
The Justice Department anticipates additional jurisdictions to be designated as USAOs continue coordination with their local stakeholders. All USAOs, with or without specific community designations under Section 1103, will continue to combat intimate partner firearm violence and prioritize prosecutions of domestic violence offenders as part of their Project Safe Neighborhoods strategy and in support of the Department’s Comprehensive Strategy for Reducing Violent Crime.
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U.s. Attorney’s Office to Partner with Grand Forks Law Enforcement to Reduce Domestic Violence Under Violence Against Women Act DesignationRead the Press Release
U.S. Department of Justice Designates Grand Forks in the District of North Dakota Under Section 1103 of the Violence Against Women Act, Prioritizing Firearms Prosecutions of Domestic Violence Offenders
Fargo – Attorney General Merrick B. Garland has approved an initial set of 78 communities, including Grand Forks, North Dakota, for designation as a jurisdiction of focus to address intimate partner gun violence under Section 1103 of the Violence Against Women Act Reauthorization Act of 2022.
The Justice Department - through its United States Attorney’s offices (USAOs) and Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Field Divisions - will partner with Grand Forks and each designated jurisdiction to develop a plan to reduce intimate partner firearm violence and to prioritize prosecutions of domestic violence offenders prohibited under 18 U.S. Code Section 922(g) from owning firearms. The plans can include appointment of Special Assistant United States Attorneys (SAUSAs) to prosecute those offenders in federal court.
“Our law enforcement partners in Grand Forks have made reducing domestic violence a priority for decades,” said Mac Schneider, United States Attorney for the District of North Dakota. “This designation by the Department of Justice is a recognition of that strong record and seeks to build on it. By targeting domestic violence offenders who illegally possess firearms for prosecution in federal court, we can save lives and protect families. I am grateful for the partnership of the Grand Forks State’s Attorney’s Office, the Grand Forks County Sheriff’s Office, and the Grand Forks Police Department and look forward to continuing our work with them on this important effort.”
“We look forward to working together with federal authorities to combat intimate partner violence in our county,” said Grand Forks County States Attorney Haley L. Wamstad. “This additional tool in our tool chest will help us to hold accountable the most lethal offenders of intimate partner violence and ensure justice for the victims of these crimes.”
“We are proud to stand alongside our colleagues at the U.S. Attorney’s Office on this focused initiative,” said Special Agent in Charge Travis S. Riddle, of the St. Paul Field Division. “A firearm in the hands of domestic abuser is a very real threat to those trapped in these unfortunate situations. We highly encourage those who may find themselves, or may know of a person, affected by domestic violence where a firearm is involved to reach out to authorities. No one should have to live their life in constant fear, and we’re here to work alongside our law enforcement partners to investigate these cases.”
Communities have been designated by the Department of Justice after coordination with community stakeholders. Nationally, they include rural areas, suburban areas, urban areas, and Tribal communities. The Justice Department used data to identify communities that could benefit from increased focus on intimate partner violence resources and where the local jurisdiction is committed to partnering with the Department to increase the use of federal tools to prosecute offenders under 18 U.S.C. 922(g). The designation represents the partnership and coordination between the department and the local jurisdiction to ensure federal resources are being leveraged effectively to address intimate partner firearm violence.
The Justice Department anticipates additional jurisdictions across the country to be designated as USAOs continue coordination with their local stakeholders. All USAOs, with or without specific community designations under Section 1103, will continue to combat intimate partner firearm violence and prioritize prosecutions of domestic violence offenders as part of their Project Safe Neighborhoods strategy and in support of the Department’s Comprehensive Strategy for Reducing Violent Crime.
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Two charged with fentanyl traffickingRead the Press Release
LAREDO, TEXAS – Two Texas men are charged with possession with intent to distribute fentanyl and conspiracy to do so, announced U.S. Attorney Alamdar S. Hamdani.
A federal grand jury has returned a two-count indictment against Hernan Cortez, 40, Houston, and Daniel Elizondo, 37, Laredo. Previously in custody upon the filing of a criminal complaint Aug. 30, they are expected to make an appearance on the indictment before a U.S. magistrate judge in the near future.
According to the charges, Cortez transported approximately a half of a kilogram of fentanyl from Houston to Laredo Aug. 28. He allegedly intended to sell the drugs in Laredo with Elizondo’s assistance.
On Aug. 29, Cortez brought the fentanyl to a stash house where Elizondo was located, according to the complaint. Elizondo allegedly exited the stash house wearing a black satchel bag and walked into an alleyway connected to an adjoining property. Soon thereafter, he no longer had the bag, according to the charges.
The complaint alleges authorities executed a search warrant and found 508 grams of fentanyl hidden in a tire wheel in the alleyway where Elizondo had been.
If convicted, Cortez and Elizondo face up to 20 years in federal prison and a possible $10 million maximum fine.
The Drug Enforcement Administration conducted the investigation with the assistance of Homeland Security Investigations, Webb County Precinct 1 Constables Office, Webb County Sheriff’s Office and the Laredo Police Department.
Assistant U.S. Attorney Andrew P. Hakala-Finch is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Two Council Bluffs Men Sentenced to Federal Prison for Conspiracy to Distribute MethamphetamineRead the Press Release
COUNCIL BLUFFS, Iowa – Two Council Bluffs men were sentenced to federal prison for conspiring to distribute methamphetamine:
- Michael Guy Given, 36, was sentenced on August 14, 2024, to a 120‑month prison term; and
- Brian Michael Hogan, 50, was sentenced on September 17, 2024, to a 120‑month prison term.
According to public court documents, between March and April 2023, Given and Hogan conspired to distribute methamphetamine in the Council Bluffs metropolitan area. During a search warrant, law enforcement located methamphetamine, a digital scale, and drug packaging materials.
After completing their terms of imprisonment, Given and Hogan will each be required to serve a five-year term of supervised release. There is no parole in the federal system.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. This case was investigated by the Council Bluffs Police Department and the Southwest Iowa Narcotics Enforcement (SWINE) Task Force.
Tuscola Contractor Sentenced for Fraud Related to Central Illinois Home Building BusinessRead the Press Release
Urbana, Ill. – A Tuscola, Illinois, man, Aaron Gillison, 40, of the 800 block of Beecher Drive, was sentenced on September 13, 2024, to one day in prison, a term of three years of supervised release, and ordered to pay $76,995 in restitution.
Gillison had previously pleaded guilty to the offense of giving a false oath or account in a bankruptcy proceeding, in violation of 18 U.S.C. § 152(2).
Gillison initially came to the attention of the Federal Bureau of Investigation following a series of complaints from Central Illinois homeowners to various local law enforcement agencies. One impacted homeowner won a civil judgement against Gillison and his company.
At the sentencing hearing in front of U.S. District Court Judge Colin S. Bruce, the government presented evidence that, at a bankruptcy proceeding, Gillion falsely claimed that he had not used business funds for personal expenses, nor had he co-mingled client funds with his own personal accounts. Further evidence showed the FBI investigation uncovered that, in the twelve months leading up to his business declaring bankruptcy, Gillison had transferred approximately $65,000 from a business account into his personal account, wrote nearly $22,000 in checks to himself from the business account, and spent more than $10,000 in business funds on personal purchases, such as fishing gear and outdoor equipment.
During the sentencing, Judge Bruce noted that Gillison had no criminal history prior to this conduct. He also noted that Gillison was employed and would be able to pay the restitution while he maintained employment.
The maximum penalty for giving a false oath or account in a bankruptcy proceeding are not more than five years in the Bureau of Prisons, not more than a three-year term of supervised release, and up to a $250,000 fine.
The investigation was conducted by the Federal Bureau of Investigation, Springfield Field Office, with assistance of several local law enforcement agencies. Assistant U.S. Attorney Nathan Bertrand represented the United States in the prosecution.
Turks and Caicos Man Arrested, Accused of Sextortion of Missouri TeenRead the Press Release
ST. LOUIS – A man from the Turks and Caicos has been arrested after being indicted and accused of the sextortion of a Missouri teen.
Alexander Gardiner, 23, of Providenciales, was indicted by a grand jury in U.S. District Court in St. Louis on May 22 on one count of coercion and enticement of a minor.
Gardiner was arrested in the Miami International Airport on August 8. He appeared in court in St. Louis Tuesday and pleaded not guilty to the charges.
“Although many perpetrators who seek to exploit and blackmail minors do so from overseas, we will not let borders keep us from stopping sextortion and seeking justice,” said U.S. Attorney Sayler A. Fleming
“A large number of sextortion investigations have identified the perpetrators as living outside of the United States,” said Special Agent in Charge Ashley T. Johnson of the FBI St. Louis Division. “Investigating sextortion is one of the top priorities in the FBI’s Violent Crimes Against Children program. In addition, the FBI provides support and resources to help victims and their families during their time of need.”
The indictment accuses Gardiner of attempting to coerce a minor into engaging in sexually explicit conduct between Sept. 24, 2018, and June 30, 2023.
An August 14 detention order says Gardiner is accused of making contact with a minor in Missouri via social media and enticing the minor to send him sexually explicit images. Gardiner then demanded money from the minor by threatening to send those images to others, and did post an explicit video on social media, the order says. A motion seeking Gardiner’s detention alleges that images of other teenage victims were discovered in Gardiner’s iCloud account. Gardiner used the screen name noahmonn on Snapchat, algardiner33 and algardiner22 on Google and @jewelsbaits on X, court records show.
Charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
The enticement charge is punishable by at least 10 years in prison, with a maximum term of life.
Others who believe they may have been targets of a sextortion attempt should contact local law enforcement or the FBI by calling Call 1-800-CALL-FBI, contacting your local FBI office, or reporting it online at tips.fbi.gov or cybertipline.org.
The National Center for Missing and Exploited Children (NCMEC) has detailed information on resources for sextortion victims, including videos and discussion guides to help explain the problem to children and adults. They also have a step-by-step guide on how to report pictures or videos of children to social media companies and flag pictures so that the companies will seek out and remove the images.
The FBI investigated the case with the assistance of the Royal Turks and Caicos Islands Police Force. Assistant U.S. Attorney Jillian Anderson is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Department of Justice Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Travel Tourism Company Pays More Than $2 Million to Resolve Civil Claims Regarding Funds Obtained Under the Paycheck Protection ProgramRead the Press Release
Tampa, FL – United States Attorney Roger B. Handberg announces that Miles Partnership, LLC (Miles), a travel and tourism consulting company headquartered in Sarasota, Florida, has agreed to a civil settlement of $2,281,950 to resolve allegations that Miles improperly obtained and received forgiveness of a loan under the Paycheck Protection Program (PPP).
Congress created the PPP in March 2020 as part of the Coronavirus Aid, Relief and Economic Security (CARES) Act to provide emergency loans to small businesses suffering economic hardship due to the COVID-19 pandemic. The CARES Act authorized these businesses to seek forgiveness of the loans if they spent the loan funds on eligible expenses. When applying for PPP loans, borrowers were required to certify the truthfulness and accuracy of all information provided in their loan applications. The PPP was administered by the U.S. Small Business Administration (SBA). Under the PPP rules and regulations then in effect, companies that were required to file a registration statement under the Foreign Agents Registration Act (FARA) were not eligible for a PPP loan.
GNGH2, Inc. filed a qui tam complaint in the Middle District of Florida alleging that Miles improperly obtained a second draw PPP loan for $2 million. According to the allegations in the complaint, Miles was required to file a registration statement under FARA due to its work with various foreign tourism boards. The United States investigated GNGH2’s allegations with the cooperation of Miles. The civil settlement will conclude the lawsuit filed by GNGH2 and GNGH2 will receive $207,450 as a share in the recovery.
“The United States Attorney’s Office is committed to investigating and holding responsible those applicants who improperly obtained loans under the PPP program,” said U.S. Attorney Roger B. Handberg for the Middle District of Florida. “We will continue to seek civil redress and, where appropriate, criminally prosecute those individuals and entities that obtained PPP loans to which they were not entitled.”
SBA’s General Counsel Therese Meers stated, “The favorable settlement in this case is the product of enhanced efforts by federal agencies such as the Small Business Administration working with the U.S. Attorney’s Office, other federal law enforcement agencies, as well as private individuals who uncover borrower misconduct to recover the lending program’s damages as well as penalties.”
The investigation was handled by Assistant U.S. Attorney Christopher J. Emden, with assistance from the Small Business Administration - Office of General Counsel.
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.
Tips and complaints from all sources about potential fraud affecting COVID-19 government relief programs can be reported by visiting the webpage of the Civil Division’s Fraud Section, which can be found here. Anyone with information about allegations of attempted fraud involving COVID-19 can also report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Trafficker Who Smuggled Mass Quantities of Fentanyl from Southern California to DC Sentenced to 14 Years in PrisonRead the Press Release
WASHINGTON – Raymond Nava Jr., 20, of Bell Gardens, California., was sentenced today to 168 months in prison for his role in a fentanyl trafficking conspiracy that spanned the country and that was responsible for the distribution of kilograms of fentanyl from Southern California to the DMV. Nava – who sold 12,000 fentanyl-laced counterfeit oxycodone pills and one dozen firearms, including an AR-style rifle to undercover officers – was one of 24 co-defendants arrested over the course of 2023 in D.C., Virginia, Maryland, San Diego, and Los Angeles and charged in the conspiracy.
The sentence was announced by U.S. Attorney Matthew M. Graves, DEA Special Agent in Charge Jarod Forget of the DEA Washington Division, Inspector in Charge Damon Wood of the U.S. Postal Inspection Service Washington Division, and Chief Pamela A. Smith of the Metropolitan Police Department.
Nava pleaded guilty on May 9, 2024, to conspiracy to distribute and possess with intent to distribute 400 grams or more of fentanyl. In addition to the 14-year prison term, U.S. District Court Judge Colleen Kollar-Kotelly ordered Nava to serve five years of supervised release.
According to court documents, Nava’s role in the conspiracy was to serve as an upstream Los Angeles-based supplier of fentanyl-laced counterfeit oxycodone pills to other Los Angeles-based fentanyl traffickers, including co-defendant Hector David Valdez. Valdez allegedly was a bulk supplier of fentanyl-laced counterfeit oxycodone pills to D.C.-based fentanyl traffickers.
In coordinating his sales of fentanyl-laced counterfeit pills, Nava worked with various co-defendants to obtain bulk quantities of pills for redistribution, including fake pills from Mexico-based sources. Nava also conspired with New York-based fentanyl traffickers, meeting with them in Los Angeles and supplying them with the fentanyl-laced fake oxycodone, which the New York-based traffickers then smuggled back to New York using interstate commercial shipping and mail carriers.
Additionally, Nava regularly trafficked firearms in conjunction with his drug trafficking. He conducted multiple controlled purchases of narcotics and firearms with undercover federal law enforcement agents.
In total, Nava sold 12,000 fentanyl-laced counterfeit oxycodone pills and one dozen firearms, including an AR-style rifle, as part of controlled sales that were facilitated by federal undercover officers over the life of conspiracy.
The impetus for this investigation was the overdose death of Diamond Lynch, a young mother in Southeast D.C. In addition to investigating and prosecuting the death resulting case,[1] law enforcement followed the evidence and uncovered a vast network of traffickers who transported fentanyl from Mexico to Los Angeles to the District of Columbia. Since then, investigators have seized more than 450,000 fentanyl pills, 1.5 kilograms of fentanyl powder, and 30 firearms.
This investigation is part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
DEFENDANT
AGE
LOCATION
CHARGES/SENTENCE
Hector David Valdez,
aka “Curl”
26
Santa Fe Springs, California
Conspiracy to distribute 400 grams or more of fentanyl;
Conspiracy to commit international money laundering.
Craig Eastman
20
Washington, D.C.
Pleaded guilty July 25, 2024, to conspiracy to distribute more than 400 grams of fentanyl.
Charles Jeffrey Taylor
20
Washington, D.C.
Conspiracy to distribute 400 grams or more of fentanyl;
Possession with intent to distribute fentanyl.
Raymond Nava, Jr.
20
Bell Gardens,
California
Sentenced 9/17/2024 to 14 Years for conspiracy to distribute 400 grams or more of fentanyl.
Ulises Aldaz
28
Bell Gardens,
California
Sentenced June 28, 2024, to 95 months in prison, four years of supervised release, after pleading guilty to conspiracy to distribute 400 grams or more of fentanyl.
Max Alexander Carias Torres
26
Bell Gardens,
California
Conspiracy to distribute 400 grams or more of fentanyl;
Conspiracy to commit international money laundering
Teron Deandre McNeil, aka “Wild Boy”
34
Washington, D.C.
Conspiracy to distribute 400 grams or more of fentanyl.
Marvin Anthony Bussie,
aka “Money Marr”
21
Washington, D.C.
Sentenced June 28, 2024, to 120 months in prison, five years of supervised release, after pleading guilty to conspiracy to distribute 400 grams or more of fentanyl.
Marcus Orlando Brown
28
Washington, D.C.
Pleaded guilty March 11, 2024, to conspiracy to distribute 40 grams or more of fentanyl.
Columbian Thomas, aka
"Cruddy Murda”
26
Washington, D.C.
Pleaded guilty June 4, 2024, to conspiracy to distribute 400 grams or more of fentanyl.
Wayne Rodell Carr-Maiden
29
Washington, D.C.
Sentenced April 29, 2024, to 45 months in prison, five years of supervised release, after pleading guilty to conspiracy to distribute 40 grams or more of fentanyl.
Andre Malik Edmond,
aka “Draco”
23
Temple Hills, Maryland
Sentenced July 22, 2024, to 130 months incarceration, 5 years of supervised release, after pleading guilty to conspiracy to distribute 400 grams or more of fentanyl.
Treyveon James Johnson,
aka “Treyski”
20
Alexandria, Virginia
Sentenced Sept. 5, 2024, to 108 months in prison after pleading guilty to conspiracy to distribute 40 grams or more of fentanyl.
Karon Olufemi Blalock,
aka “Fat Bags”
30
Alexandria, Virginia
Conspiracy to distribute 400 grams or more of fentanyl
Ronte Ricardo Greene,
aka “Cardiddy”
28
Washington, D.C.
Conspiracy to distribute 400 grams or more of fentanyl;
Possession with intent to distribute fentanyl.
Melvin Edward Allen, Jr., aka “21”
38
Washington, D.C.
Conspiracy to distribute 400 grams or more of fentanyl.
Darius Quincy Hodges,
aka “Brick”
34
Glen Allen, Virginia
Conspiracy to distribute 400 grams or more of fentanyl.
Lamin Sesay,
aka “Rock Star”
27
Alexandria, Virginia
Conspiracy to distribute 400 grams or more of fentanyl.
Paul Alejandro Felix
25
Glendale,
California
Pleaded guilty July 1, 2024, to conspiracy to distribute 400 grams or more of fentanyl.
Omar Arana,
aka “Frogs”
27
Cudahy,
California
Conspiracy to distribute 400 grams or more of fentanyl
Edgar Balderas, Jr., aka “Nano”
26
San Diego,
California
Conspiracy to distribute 400 grams or more of fentanyl.
Raul Pacheco Ramirez
30
Long Beach,
California
Pleaded guilty July 19, 2024, to conspiracy to distribute 400 grams or more of fentanyl.
Giovani Alejandro Briones
30
Victorville, California
Conspiracy to distribute 400 grams or more of fentanyl;
Conspiracy to commit international money laundering.
Alfredo Rodriguez Gonzalez
26
Rosarito, Mexico
Conspiracy to distribute 400 grams or more of fentanyl;
Conspiracy to commit international money laundering.
The prosecutions followed a joint investigation by the DEA Washington Division and the USPIS Washington Division in partnership with the Metropolitan Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), with additional support from the DEA Los Angeles, San Diego, and Riverside Field Offices, the Federal Bureau of Investigation’s Washington Field Office, and the Charles County, Maryland Sheriff’s Office. Valuable assistance was provided by the U.S. Attorney’s Offices in the Central and Southern Districts of California, the Eastern District of Virginia, the District of Maryland and U.S. Marshals.
The case is being prosecuted by Assistant U.S. Attorneys Matthew W. Kinskey, Solomon S. Eppel, and Iris McCranie, of the Violence Reduction and Trafficking Offenses (VRTO) Section.
23cr73
[1] https://www.justice.gov/usao-dc/pr/brother-and-sister-sentenced-drug-conspiracy-involving-fentanyl-sales
Three-Time Convicted Felon Sentenced for Possessing Firearms and AmmunitionRead the Press Release
Orlando, Florida – U.S. District Judge Roy B. Dalton has sentenced Dominick Yvon Louissaint (20, Lake Mary) to 46 months in federal prison for possessing a firearm and ammunition as a convicted felon. The court also ordered Louissaint to forfeit the firearm and ammunition involved in the offense. Louissaint pled guilty on June 18, 2024.
According to court documents, Louissaint was encountered by the Sanford Police Department on January 24, 2024, at the scene of a suspected burglary. Louissaint ignored orders to show his hands, instead attempting to flee. After he was apprehended, the officers discovered that Louissaint was carrying a loaded, concealed firearm, a box of ammunition, and two ski masks. Louissaint has previously been convicted of felony robbery and firearms offenses. As a convicted felon, Louissaint is prohibited from possessing firearms or ammunition under federal law.
This case was investigated by the Federal Bureau of Investigation, with valuable assistance from the Sanford Police Department and the Seminole County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Richard Varadan.
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.
Southern tier man and woman charged to produce child pornographyRead the Press Release
BUFFALO, N.Y. - U.S. Attorney Trini E. Ross announced today that David A. Johnston, 55, of Allegany, NY, and Kayla R. Kio, 26, of Olean, NY, were arrested and charged by criminal complaint with conspiracy to produce child pornography, which carries a mandatory minimum penalty of 15 years in prison, a maximum of 30 years, and a $250,000 fine.
Assistant U.S. Attorney Aaron J. Mango, who is handling the case, stated that according to the complaint, on March 2, 2024, the New York State were called to Wal-Mart in Olean, for a report of a domestic dispute. Kio reported that she was being stalked and harassed by her ex-boyfriend, Johnston. The two worked together at Wal-Mart. Kio stated that in February 2024, while she was in the process of breaking up with Johnston, he requested that she produce and send to him sexually explicit videos of a 5-year-old child. Troopers seized Kio’s cell phone and recovered multiple videos and images of child pornography.
On March 13, 2024, the NYSP executed a search warrant at Johnston’s Allegany residence, during which they seized four cell phones and a tablet. Investigators recovered videos of child pornography and sexually explicit communications exchanged between Kio and Johnston. Johnston was charged with Possessing a Sexual Performance of a Child and Endangering the Welfare of a Child, while Kio was charged with Promoting a Sexual Performance by a Child and Endangering the Welfare of a Child. In 2007, Johnston was convicted of Indecent Assault and Corruption of Minors in McKean, PA, County Court.
Johnston and Kio made an initial appearance before U.S. Magistrate Judge H. Kenneth Schroeder, Jr. Kio was released on conditions. Johnston is being held pending a detention hearing on September 17, 2024, at 2:30 p.m.
The complaint is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Matthew Miraglia, the New York State Police, under the direction of Major Stanley Edwards, and the Cattaraugus County Sheriff’s Office, under the direction of Sheriff Timothy Whitcomb.
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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South Dakota Surgical Hospital and United Surgical Partners International Agree to Pay More Than $12.7 Million to Resolve Alleged False Claims Act ViolationsRead the Press Release
Siouxland Surgery Center LLP, doing business as Dunes Surgical Hospital (Dunes), United Surgical Partners International Inc. (USPI) and USP Siouxland Inc. have agreed to pay approximately $12.76 million to resolve alleged False Claims Act violations relating to improper financial relationships between Dunes and two physician groups. Dunes is a surgical hospital located in Dakota Dunes, South Dakota. Since July 1, 2014, USPI has maintained partial ownership of Dunes through USP Siouxland, a wholly owned subsidiary of USPI. Dunes and USPI disclosed the arrangements at issue to the government following an internal compliance review and independent investigation.
The settlement resolves allegations that, from at least 2014 through 2019, Dunes made significant financial contributions to a non-profit affiliate of a physician group whose physicians referred patients to Dunes. Those payments allegedly funded the salaries of athletic trainers who generated referrals to both the physician group and to Dunes. The settlement also resolves allegations, that during the same time period, Dunes provided another physician group with free or below-fair-market-value clinic space, staff, and supplies. The United States alleged that these arrangements violated both the Anti-Kickback Statute (AKS) and the Physician Self-Referral Law, commonly known as the Stark Law. The AKS prohibits the provision of remuneration to induce the referral of services or items that are paid for by a federal health care program. The Stark Law prohibits hospitals from billing for certain services referred by physicians with whom the hospital has a financial relationship, unless that relationship satisfies one of the law’s statutory or regulatory exceptions. A claim submitted in violation of the AKS or the Stark Law can also violate the False Claims Act.
“The AKS and Stark Law are designed to ensure that decisions about patient care are based on physicians’ independent medical judgment and not their personal financial interest,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “As this settlement reflects, we will hold accountable those who violate these important safeguards, but we will also give to those who disclose their wrongdoing, take appropriate remedial actions and meaningfully cooperate with the government’s investigation.”
In connection with the settlement, the United States acknowledged that Dunes and USPI took a number of significant steps entitling them to credit for cooperating with the government. Following an internal compliance review and independent investigation, Dunes and USPI promptly took remedial actions and disclosed the relevant arrangements to the government. Dunes and USPI also provided the government with a detailed and thorough written disclosure and cooperated with the government throughout its investigation.
“Illegal kickbacks and self-referrals make healthcare more expensive and create the potential for medical decisions that are not based on what is best for patients,” said U.S. Attorney Timothy T. Duax for the Northern District of Iowa. “Our office welcomes the cooperation of those who self-disclose and will continue to work with our law enforcement partners to ensure that taxpayers do not bear the costs of illegal and unethical practices.”
“The U.S. Attorney’s Office is dedicated to fostering a healthcare environment that prioritizes patient well-being above all,” said U.S. Attorney Alison Ramsdell for the District of South Dakota. “We stand firmly against any actions that could undermine the trust and transparency that form the cornerstone of patient care and remain committed to working closely with healthcare professionals and regulatory bodies to promote ethical practices to ensure patients receive the highest standard of care.”
“Individuals and entities that participate in the federal health care system are required to obey laws designed to preserve the integrity of program funds and ensure the provision of appropriate, quality services to patients,” said Special Agent in Charge Linda T. Hanley of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “Together with our federal and state law enforcement partners, we remain committed to investigating allegations of improper arrangements that can put patient safety at risk.”
The settlement resolves allegations of false billings to the Medicare, TRICARE and Medicaid programs. The Medicaid program is jointly funded by the federal and state governments. In addition to the approximately $12.76 million to be paid to the federal government for alleged violations of the False Claims Act, South Dakota, Iowa and Nebraska will collectively receive approximately $1.37 million for their share of the Medicaid portion of the settlement.
The resolution obtained in this matter was the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch, Fraud Section; U.S. Attorney’s Office for the Northern District of Iowa; U.S. Attorney’s Office for the District of South Dakota; and HHS-OIG.
The investigation and resolution of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement can be reported to HHS at 800-HHS-TIPS (800-447-8477).
Trial Attorney Nathan Green, Assistant U.S. Attorney Brandon Gray for the Northern District of Iowa and Assistant U.S. Attorney Alexis Warner for the District of South Dakota handled the matter.
The claims resolved by the United States in the settlement are allegations only. There has been no determination of liability.