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17 September 2024
Davenport Man Sentenced to 25 Years in Federal Prison for Methamphetamine and Firearm ChargesRead the Press Release
DAVENPORT, Iowa – A Davenport man was sentenced yesterday to 25 years (300 months) in federal prison for possessing a distribution quantity of methamphetamine and a possessing a firearm in furtherance of his drug trafficking.
According to public court documents, law enforcement witnessed Roy Albert Phillips, 35, recklessly driving and attempted a traffic stop. Phillips did not stop, ran multiple stop signs, and drove more than 50 miles per hour in a 25 mile-per-hour-zone. Phillips eventually struck a pole and fled on foot. Officers observed Phillips drop a backpack while fleeing, which was later found to contain a loaded handgun and approximately one pound of methamphetamine. Officers searched Phillips’ phone and located messages indicative of Phillips trafficking pound quantities of methamphetamine and carrying the gun related to his drug trafficking activities.
After completing his term of imprisonment, Phillips will 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 Bettendorf Police Department, Iowa State Patrol, Iowa Division of Narcotics Enforcement, Davenport Police Department, and Scott County Sheriff’s Office.
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.
Danville Men Sentenced for Convenience Store RobberyRead the Press Release
ROANOKE, Va. – A pair of Danville, Virginia men who robbed the Sunrise convenience store in Danville in February 2023 were sentenced yesterday in federal court.
Calvin Franklin Hughes Jr., 38, and Arshay Treyvant Haley, 19, both previously pled guilty for their roles in the robbery.
Yesterday in U.S. District Court, Hughes was sentenced to 156 months in prison and Haley was sentenced to 92 months.
According to court records and evidence presented to the court, around 8:30 p.m. on February 15, 2023, Hughes and Haley entered the Danville Sunrise convenience store wearing masks. Hughes held the store clerk at gunpoint for close to a minute, while Haley walked behind the counter and brandished a large machete at the clerk. Hughes took approximately $750 from the cash register and Haley grabbed several cigarette cartons from the shelf. Before fleeing the store with Haley, Hughes fired his pistol into the ceiling above the clerk, causing the clerk to duck in fright.
United States Attorney Christopher R. Kavanaugh and James VanVliet, Acting Special Agent in Charge of the Washington Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives made the announcement.
The Danville Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case.
Assistant U.S. Attorney Drew O. Inman prosecuted the case for the United States.
Crack distributor heads to prisonRead the Press Release
GALVESTON, Texas – A 44-year-old La Marque resident has been sentenced for conspiracy to distribute cocaine and cocaine base, announced U.S. Attorney Alamdar S. Hamdani.
Smith Henry Jones pleaded guilty Feb. 17, 2022.
U.S. District Judge Jeffrey V. Brown has now ordered Jones to serve 144 months in federal prison to be immediately followed by five years of supervised release. The court also issued a final order of forfeiture for $60,000 in cash and a residential house with lot valued at approximately $250,000.
Between February 2017 and February 2019, Jones managed a group of persons who distributed cocaine base or “crack” in the La Marque and Texas City areas.
Jones will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI’s Safe Streets and Violent Crimes Task Force and the La Marque Police Department conducted the investigation. Assistant U.S. Attorneys Kenneth A. Cusick and Mary Ellen Smyth prosecuted the case.
Council Bluffs Man Sentenced to 220 Months in Federal Prison for Possessing a Distribution Quantity of MethamphetamineRead the Press Release
COUNCIL BLUFFS, Iowa – A Council Bluffs man was sentenced today to 220 months in federal prison for possessing a distribution quantity of methamphetamine.
According to public court documents, law enforcement used a confidential informant to purchase methamphetamine from Philip Duane Sales, 54, in fall 2023. On December 20, 2023, law enforcement executed a search warrant at Sales’ residence and seized approximately 70 grams of methamphetamine and currency, some of which was utilized during a controlled buy in October 2023.
After completing his term of imprisonment, Sales will 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 Southwest Iowa Narcotics Enforcement (SWINE) Task Force, Council Bluffs Police Department, Iowa Department of Narcotics Enforcement, and Iowa State Patrol.
Connecticut Investment Advisor Imprisoned for Defrauding Clients of $2.7 Million Through Cherry-Picking SchemeRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that JONATHAN VINCENT GLENN, 55, of Greenwich, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to 21 months of imprisonment, followed by three years of supervised release, for defrauding investment clients through a “cherry-picking” securities scheme. Glenn also must serve the first six months of his supervised release in home confinement.
“Cherry-picking” is a fraudulent securities trading practice in which the responsible individual executes trades without assigning those trades to a particular trading account until the individual determines whether or not the trade has become profitable or suffered losses. The responsible individual then allocates the profitable trades to favored accounts – often the individual’s own accounts – and assigns unprofitable trades to disfavored client accounts.
According to court documents and statements made in court, Glenn owned Glenn Capital LLC, also known as GlennCap LLC, an investment advisory firm headquartered in Greenwich. Through Glenn Capital, Glenn provided clients with portfolio management services including asset selection and asset allocation. Glenn managed all of Glenn Capital’s advisory clients’ accounts and was authorized to make trading decisions on each client’s behalf without seeking approval for each trade. Glenn placed trades on behalf of advisory clients, himself, or family members by trading directly in the relevant individual account, or by placing block trades in Glenn Capital’s omnibus account and allocating the block trades among the relevant individual accounts. Glenn Capital’s Code of Ethics required Glenn to determine and document the specific allocation of each block trade prior to the execution, and to allocate block trades to individual accounts at an average price.
Glenn defrauded clients by retroactively allocating profitable omnibus-account trades to favored clients, family, and personal accounts, and unprofitable omnibus-account trades to non-favored-client accounts. Notwithstanding the requirements set forth in the Code of Ethics, Glenn did not determine the allocation of block trades until after they were executed, when he knew if the trades were profitable in the hours following the execution. When a block purchase of an equity security increased in value in the hours after the purchase, Glenn generally realized the profits by selling the security. He then allocated those profits to favored-client, family, firm, and personal accounts. When a block purchase of an equity security decreased in value, Glenn generally allocated those block purchases to the non-favored-client accounts. Glenn did not inform his clients that he was “cherry picking.” Instead, he gave the false impression that he allocated trades fairly and according to a pre-determined allocation methodology.
Through this scheme, Glenn defrauded more than 45 clients of a total of more than $2.7 million. He is required to make full restitution.
On October 5, 2023, Glenn pleaded guilty to securities fraud.
Glenn, who is released on bond, is required to report to prison on December 2.
This matter was investigated by the Federal Bureau of Investigation with the assistance of the U.S. Securities and Exchange Commission, which has settled fraud charges with Glenn and GlennCap LLC.
This case was prosecuted by Assistant U.S. Attorney Heather L. Cherry.
Clairton Resident Indicted on 19 Counts of Sexual Exploitation of MinorsRead the Press Release
PITTSBURGH, Pa. - A resident of Clairton, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges related to the sexual exploitation of minors, United States Attorney Eric G. Olshan announced today.
The 19-count Indictment named Joseph Primiero, 26, as the sole defendant.
According to the Indictment, on January 22, 2022, and between June 13, 2022, and June 28, 2022, Primiero produced material depicting the sexual exploitation of minors. During that same time frame, Primiero allegedly coerced and enticed a minor to engage in sexual activity, received and distributed material depicting the sexual exploitation of minors, and transferred obscene images and videos of himself engaged in sexually explicit conduct to a minor. Additionally, Primiero is charged with possession of material depicting the sexual exploitation of prepubescent minors and minors under 12 years of age on May 22, 2024.
The law provides for a maximum total sentence of up to life in prison, a fine of up to $4.75 million, or both. Under the federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney V. Joseph Sonson is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and Allegheny County Police Department conducted the investigation leading to the Indictment.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Charter School Founder Pleads Guilty to Embezzling over $73,000 from Former School in ConcordRead the Press Release
CONCORD – A Boscawen woman pleaded guilty in federal court to stealing over $73,000 in U.S. Department of Education funds from the former Capital City Public Charter School in Concord, First Assistant U.S. Attorney Jay McCormack announces.
Stephanie Alicea, 49, pleaded guilty to one count of theft from a program receiving federal funds. U.S. District Court Chief Judge Landya B. McCafferty scheduled sentencing for January 6, 2025.
Alicea was the founder of the Capital City Public Charter School (“Capital City”) in Concord, New Hampshire. Capital City offered classes to several dozen students during the 2018-19 and 2019-20 school years. Alicea oversaw the school’s finances and day-to-day operations. Capital City received federal charter school grant funds, which were to be used solely for education-related expenses.
In spring 2020, an external auditor detected irregularities with Capital City’s finances. Specifically, the auditor found that Alicea had spent some of the grant funds on expenses that were personal in nature, including gambling, dining, and travel. In total, Alicea stole $73,253.36 in federal grant funds from Capital City.
Capital City closed after the 2019-20 school year, surrendered its charter in February 2021, and declared bankruptcy in March 2021.
The charge of Theft from a Program Receiving Federal Funds provides for a sentence of up to 10 years in prison, up to 3 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.
The U.S. Department of Education’s Office of Inspector General and Federal Bureau of Investigation led the investigation. Assistant U.S. Attorney Alexander S. Chen is prosecuting the case.
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Businessman Sentenced in Tax Scheme, Ordered to Pay $38.9 Million in RestitutionRead the Press Release
A former Frisco man was sentenced yesterday to 52 months in prison and ordered to pay more than $38.9 million in restitution to the IRS, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Ronald James Paolucci, the 55-year-old co-founder and employee of American Management Staffing (AMS), was charged by felony information in January 2023 and pleaded guilty in February 2023 to conspiracy to defraud the United States and making and subscribing a false tax return. He was sentenced Monday by U.S. District Judge Sam A, Lindsay.
“We were proud to partner with IRS-CI on this important case,” said U.S. Attorney Leigha Simonton. “We stand ready to prosecute any employer who pockets employees’ payroll taxes and those who otherwise refuse to meet their tax obligations.”
“Nearly 70% of total U.S. revenues collected by the IRS are collected through employment taxes. When the employer withholds the payroll taxes but fails to pay the taxes over to the IRS, they may be criminally investigated and prosecuted for failing to withhold, collect, and pay over the tax. This was the case with Mr. Paolucci, his failure to remit withheld taxes is not only a breach of trust but a serious crime with severe consequences,” said Christopher J. Altemus Jr., Special Agent in Charge IRS Criminal Investigation, Dallas Field Office. “In addition to failing to meet payroll tax obligations, Mr. Paolucci failed to report his personal compensation and was ordered to pay approximately $10 million in restitution for his personal tax obligations. Let this sentence serve as a stark reminder: tax compliance is not optional; it is the law.”
According to court documents, AMS provided temporary staffing services to business clients. Mr. Paolucci was employed by AMS from approximately 2011 through 2020 and had control over AMS’ business affairs, including, approving payments and controlling AMS’s bank accounts.
AMS was obligated to pay the temporary employees and withhold and pay all applicable taxes for the employees. Mr. Paolucci withheld payroll taxes from the employees’ paychecks, including federal income taxes, Medicare and social security taxes. AMS was required to make deposits of the payroll taxes to the Internal Revenue Service (IRS) on a periodic basis and to file Employer’s Quarterly Federal Income Tax Return forms setting forth the total amount of wages, total amount of income tax withheld, total amount of social security and Medicare taxes due and the total tax deposits.
Mr. Paolucci agreed to continue to withhold payroll taxes from the temporary employees but understood that taxes would not be paid over to the IRS. Mr. Paolucci continued to issue IRS Forms W-2 to the temporary employees representing to the employees and the IRS that AMS was withholding and paying to the IRS payroll taxes.
From 2014 through 2020, AMS paid temporary employees and withheld approximately $13 million in payroll taxes from its employees. During the same time, AMS issued IRS W-2 forms to the employees showing that AMS withheld approximately $13 million in payroll taxes from those employees, however, AMS did not make any payments to the IRS.
IRS – Criminal Investigation conducted the investigation. Assistant U.S. Attorney Marty Basu prosecuted the case.
Bronx Former Attorney Pleads Guilty to Large-Scale Immigration FraudRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that KOFI AMANKWAA, a Bronx-based former immigration attorney, pled guilty to immigration fraud in connection with his supervision of a multi-year scheme to file fraudulent immigration documents under the Violence Against Women Act (“VAWA”). AMANKWAA pled guilty today before U.S. District Judge Katherine Polk Failla.
U.S. Attorney Damian Williams said: “For years, Kofi Amankwaa oversaw a massive immigration fraud scheme, filing thousands of immigration documents falsely alleging that his clients were victims of abuse by their children or other family members. Amankwaa’s actions undermined our U.S. immigration system, exploited VAWA — a law that allows noncitizen victims of domestic abuse a path to lawful permanent residence status — and victimized vulnerable clients in the process. Today’s guilty plea highlights this Office’s dedication to holding accountable those who abuse the trust placed in them as attorneys and fraudulently use our immigration system as a tool for their own financial gain.”
According to the allegations in the Information, public filings, and statements made in public court proceedings:
From September 2016 through November 2023, AMANKWAA and others at his direction met with clients and instructed them to sign fraudulent Form I-360 VAWA Petitions falsely stating that the clients were abused by their U.S. citizen children. AMANKWAA also signed the petitions, under penalty of perjury, as the attorney preparer.
AMANKWAA used the filing of the fraudulent Form I-360 VAWA Petitions, among other filings, as a basis to request for his clients’ advance parole travel documents — documents that enable individuals without legal status in the U.S. to travel abroad temporarily and return. AMANKWAA then directed his clients, upon obtaining the advance parole travel documents, to travel abroad and return to the U.S. Last, AMANKWAA used the fraudulently procured advance parole as a basis for his clients to apply for lawful permanent resident status.
AMANKWAA carried out this illegal scheme knowing that his clients had not, in fact, been abused by their children or without ever asking whether any such abuse occurred. Moreover, AMANKWAA was often unsuccessful in obtaining lawful permanent resident status for his clients because the clients’ immigration applications were denied on the basis of fraud, among other reasons. AMANKWAA typically charged his clients between $3,000 and $6,000 for his services, plus administrative fees.
In November 2023, following numerous complaints by clients regarding the fraudulent abuse allegations, AMANKWAA’s license to practice law in the State of New York was suspended, and in August 2024, AMANKWAA was disbarred.
As part of today’s plea, AMANKWAA has agreed to forfeit $13,389,000 and pay $16,503,425 in restitution to his victims.
If you believe you or your family member is a victim of VAWA fraud perpetrated by AMANKWAA, please contact USANYS.VAWAFraud@usdoj.gov.
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AMANKWAA, 70, of South River, New Jersey, pled guilty to one count of immigration fraud, which carries a maximum sentence of 10 years in prison.
The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Mr. Williams praised the outstanding investigative work of the Newark Field Office of Homeland Security Investigations. Mr. Williams also thanked the U.S. Citizenship and Immigration Services’ Office of Fraud Detection and National Security for their support in this investigation.
This case is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorney Adam Z. Margulies is in charge of the prosecution.
Bradenton Man Charged with Possession of Child Sex Abuse MaterialRead the Press Release
Tampa, Florida – United States Attorney Roger B. Handberg announces the arrest and filing of a criminal complaint charging Christopher David Clark (52, Bradenton) with possession of child sex abuse material. Clark was arrested on September 12, 2024. If convicted, Clark faces a maximum penalty of 20 years in federal prison.
According to the criminal complaint, on September 12, 2024, the Federal Bureau of Investigation executed a search warrant at Clark’s home. During the search, agents located more than 40 electronic devices, to include computers, cellphones, and external drives. A preview of an external hard drive revealed multiple images of child sexual abuse material.
A complaint is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Federal Bureau of Investigation, with assistance from the Manatee County Sheriff’s Office, the Bradenton Police Department, and the Sarasota Police Department. It will be prosecuted by Assistant United States Attorney Ross Roberts.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Baltimore woman pleads guilty to COVID fraudRead the Press Release
BUFFALO, N.Y. — U.S. Attorney Trini E. Ross announced today that Nina M. Williams, 56, of Baltimore, Maryland, pleaded guilty before Senior U.S. District Judge William, M. Skretny to wire fraud, which carries a maximum penalty of 20 years in prison and a $250,000 fine.
According to court documents, Williams transmitted two fraudulent Paycheck Protection Program (PPP) loan applications on behalf of Nimiche Inc. and Nimiche Interiors Inc., a Maryland-based business, along with fraudulent supporting documentation, to a federally insured bank in Buffalo, NY, and a mortgage lending business, which participated as lenders in the PPP loan program. In May 2020, Williams electronically submitted a PPP loan application to the bank for $97,500, and in April 2021, she electronically submitted a PPP loan application to the mortgage lending business for $432,960.
Williams falsely claimed that Nimiche Inc. and Nimiche Interiors Inc. had between four and 25 employees and average monthly payrolls of, respectively, $39,000 to $173,185. Williams falsely stated that the loan funds would be used to retain workers and maintain payroll or other proscribed uses under the PPP loan rules. This resulted in the bank issuing $97,500 into Nimiche Inc.’s business account controlled by Williams. However, the funds were not used for business-related expenses. Instead, Williams used some of the funds towards the purchase of real property in Maryland. In addition, the mortgage lending business issued loan proceeds totaling $432,960, into Nimiche Inc.’s business account controlled Williams. Once again, the funds were not used for business-related expenses.
During the May 2020, through May 2021 time period, Williams worked with others to submit at least five additional fraudulent PPP and Economic Injury Disaster Loan (EIDL) loan applications to the mortgage lending business and another bank. In total, based on the materially false and fraudulent representations contained in the application materials, Williams intended to fraudulently obtain a total of approximately $2.6 million in PPP and EIDL funds, and in fact fraudulently obtained approximately $1.5 million in PPP and EIDL funds.
The plea is the result of an investigation by the Internal Revenue Service, Criminal Investigation Division, under the direction of Thomas Fattorusso, Special Agent-in-Charge, New York Field Office, Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Matthew Miraglia, the U.S. Postal Inspection Service Boston Division, under the direction of Inspector in Charge Ketty Larco-Ward, and the Social Security Administration Office of Inspector General, under the direction of Acting Special Agent-in-Charge Corwin Rattler. The case was prosecuted by Assistant U.S. Attorney Charles M. Kruly and Trial Attorney Jennifer Bilinkas of the Criminal Division’s Fraud Section.
Sentencing is scheduled for December 18, 2024, before Judge Skretny.
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Ballard County Man Sentenced to 5 Years in Federal Prison for Child Pornography OffensesRead the Press Release
Paducah, KY – A Ballard County man was sentenced last week to 5 years in federal prison for child pornography charges.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky and Special Agent in Charge Michael E. Stansbury of the Federal Bureau of Investigation Louisville Field Office made the announcement.
According to court documents, Kyle J. Ratta, 34, was sentenced to 5 years in prison, followed by 10 years of supervised release, for one count of attempted receipt of child pornography, one count of possession of child pornography, and one count of attempted transfer of obscene material to a minor. Ratta communicated online with an undercover law enforcement agent he believed to be 14 years old, and during those communications, he attempted to receive a sexually explicit image. Law enforcement subsequently recovered over 200 images of child pornography that were saved in file folders on a computer Ratta used.
There is no parole in the federal system.
This case was investigated by the FBI Hopkinsville Satellite Office.
Assistant U.S. Attorney Raymond McGee, of the U.S. Attorney’s Paducah Office, prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
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Attorney Pleads Guilty to Obtaining Fraudulent Economic Injury Disaster Loans and Money LaunderingRead the Press Release
ATLANTA - Sanjay Patel, an attorney who formerly operated a Georgia-based real estate law firm, has pleaded guilty to fraudulently obtaining nearly $300,000 in Economic Injury Disaster Loans (EIDL) during the COVID-19 pandemic, and to using his attorney escrow account to launder more than $250,000 from unrelated investor fraud schemes.
“This office will remain steadfast in coordinating with our federal law enforcement partners to identify and hold accountable those who defrauded the government’s COVID relief programs,” said U.S. Attorney Ryan K. Buchanan. “It is especially aggravating that Patel, an attorney, not only used his professional standing to commit money laundering, but he also defrauded the American taxpayer out of hundreds of thousands of dollars.”
“The U.S. Postal Inspection Service will continue to ensure fraudsters who sought to enrich themselves with funds from pandemic-assistance programs are held accountable,” said Tommy D. Coke, Inspector in Charge of the Atlanta Division. “This case serves as a reminder to individuals that engage in unlawful activity that law enforcement will spare no resource to bring you to justice for your criminal activity.”
“This guilty plea is a testament to our commitment to holding accountable those who engage in financial fraud,” said Edwin S. Bonano, Special Agent in Charge of FHFA-OIG’s Southeast Region.
“Even after four years, the FBI and our partners will continue to seek out anyone who abused their positions to defraud the government during the COVID-19 pandemic,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “This plea proves that no matter how much time has passed, if you commit financial crimes and steal from American taxpayers, you will be held accountable.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: Between August 2020 and March 2021, Patel submitted four fraudulent EIDL loan applications to the Small Business Administration (SBA) seeking at least $421,000 to purportedly operate his business, including his law practice, Worden & Associates.
In the fraudulent applications, Patel repeatedly misrepresented the number of employees his law firm employed, its gross revenues, and in at least one application, the existence of his business. In reliance on Patel’s fraudulent misrepresentations, the SBA funded two of his loans totaling approximately $300,000.
After receiving the loan proceeds, Patel misused the funds for unauthorized purposes. EIDL loans are intended to be used for a business’s working capital to make regular payments for operating expenses, including payroll, rent/mortgage, utilities, and other ordinary business expenses, as well as to pay business debt incurred at any time. But Patel spent the fraudulent EIDL loan proceeds he received on various things, including spending the funds at casinos, personal expenses, and to make payments toward non-business loans.
Separately, Patel used his Interest on Lawyer Trust Account (IOLTA) to launder the proceeds from various investment frauds. For example, on May 14, 2020, Patel received $350,000 from an investor who believed the funds were going to be used for an energy project. But after receiving those funds, Patel immediately wired $250,000 to another entity, unrelated to the investment. Similarly, in June 2020, Patel received another $350,000 as part of a different energy investment. After receiving this investor money, Patel laundered over $132,000 by conducting a series of wire transfers to other accounts unrelated to the investment. Although Patel was not involved in the underlying fraudulent activity, he knew that these funds were derived from various investor fraud schemes.
Sanjay Patel, 45, of Mobile, Alabama, is scheduled to be sentenced on December 12, 2024, at 3:00 p.m. before U.S. District Judge Steve C. Jones.
This case is being investigated by the United States Postal Inspection Service, Federal Bureau of Investigation, Federal Housing Finance Agency - Office of Inspector General, and Federal Deposit Insurance Corporation - Office of Inspector General.
Assistant U.S. Attorney Alex R. Sistla is prosecuting the case.
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.
For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
16 September 2024
Winooski, Vermont Man Sentenced to Time Served in Drug Trafficking and Firearm Possession CaseRead the Press Release
Burlington, Vermont – The United States Attorney’s Office for the District of Vermont stated that on September 16, 2024, Justin Bolio, 38, of Winooski, Vermont, was sentenced by Chief United States District Judge Christina Reiss to time served to be followed by a 3-year term of supervised release. Justin Bolio previously pleaded guilty to distribution of cocaine and being a prohibited person in possession of a firearm.
According to court records, on October 25, 2023 in Colchester, Vermont, Bolio sold cocaine base to a confidential informant who was acting at the direction of law enforcement. Several days later, on October 31, 2023, investigators executed a federal search warrant at Bolio’s residence in Winooski. At the time of the search warrant execution, law enforcement found Bolio at the residence, searched him, and found cocaine base and more than $500 in U.S. currency on his person. Investigators also located a High Standard 12-gauge shotgun in Bolio’s bedroom inside of the residence. In that same room, law enforcement found a piece of paper entitled “Justin Bolio serial numbers for my weapons” with a description and serial number for the High Standard shotgun written on the document. Bolio was prohibited from possession of a firearm because in October 2023, he was an unlawful user of controlled substances.
United States Attorney Nikolas P. Kerest commended the collaborative investigatory efforts of Homeland Security Investigations, the Winooski Police Department, the Chittenden County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
The case was prosecuted by Assistant U.S. Attorney Zachary Stendig. Bolio was represented by Lisa Shelkrot, Esq.
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.
Windsor Man Indicted for Extortion and ThreatsRead the Press Release
BOSTON – A Windsor, Mass. man was arrested today and charged in federal court in Springfield for making online threats and extortionate demands.
Michael Andrew Rodgers, 31, was indicted by a federal grand jury on one count of threatening interstate communications and one count of extortionate interstate communications. Rodgers was released on conditions following an initial appearance today in federal court in Springfield, Mass. before U.S. District Court Magistrate Judge Katherine A. Robertson.
According to the indictment, on April 5, 2023, Rodgers posted a threat on the Google review page of a Springfield medical practice that stated: “They gonna get what’s coming soon. […] Will be there in the morning to get them myself one way or another. Locked and loaded.” Beneath this text, Rodgers allegedly included an image of a hand holding a gun.
It is further alleged that on April 6, 2024, Rodgers submitted a threat through a fraud reporting website for the Social Security Administration Office of the Inspector General with the intent to extort Social Security disability benefits. Specifically, Rodgers allegedly stated: “I m gonna start taking what I need. By any means nessacary. […] GIVE ME MY MONEY OR IM GONNA START DROPPING PEOPLE. YOULL NEVER FIND MY WEAPONS SO STOP LOOKING AND GIVE ME MY CHECK. […] NEXT TIME I SLICE SOMETHING OPEN. IT WONT BE ME. ITLL BE ONE OF YOUR CHILDREN ILL MERC A WHOLE SCHOOL AND NOT GIVE A F***. […] SO YOULL BE MY FIRST TARGET IF YOU KEEP REFUSING TO HELP ME.”
“The charges against Mr. Rodgers involve very serious and terrifying threats designed to instill fear and extort his victims. His alleged extortion demands to unlawfully obtain money from the federal government clearly crossed the line into criminal conduct. In these virulent times, no one should ever have to endure the fear and distress caused by this type of alleged conduct.,” said Acting United States Attorney Joshua S. Levy. “Our office remains steadfast in pursuing justice and ensuring that those who resort to violent threats and intimidation are held fully accountable for their actions.”
“While the First Amendment gives us the right to express our own opinions, violent physical threats are certainly not protected speech,” said Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “When someone repeatedly threatens the lives of others, it’s a clear red flag, and we have to take their despicable words at face value. Today’s arrest of Michael Rodgers demonstrates the FBI’s resolve to investigate and bring to justice anyone who crosses this line.”
“The safety and security of the Social Security Administration is of utmost priority and our agency is committed to protecting employees from threats and acts of violence. We thank our law enforcement partners, the Massachusetts State Police and the FBI assisting in this investigation and working to apprehend this subject.” said Corwin Rattler, Acting Special Agent in Charge, Social Security Administration Office of the Inspector General, Boston-New York Field Division.
The charge of threatening interstate communications provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. The charge of extortionate interstate communications provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting U.S. Attorney Levy, FBI SAC Cohen and SSA-OIG Acting SAC Rattler made the announcement today. Valuable assistance in the investigation was provided by the Massachusetts State Police, Springfield Police Department, Windsor Police Department and Federal Protective Service. Special Assistant U.S. Attorney James J. Nagelberg of the Major Crimes Unit is prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
West Virginia’s U.S. Attorney’s Offices to Work with Local Partners to Reduce Domestic ViolenceRead the Press Release
CHARLESTON, W.Va. – 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.
“Domestic violence abusers use firearms to threaten, intimidate and coerce, and abusers with access to a gun are five times more likely to kill their partners,” said United States Attorney Will Thompson of the Southern District of West Virginia. “These designations will strengthen and enhance our ongoing collaboration with law enforcement and other community partners.”
“Domestic abusers are some of the most dangerous people in our community,” said United States Attorney William Ihlenfeld of the Northern District of West Virginia. “This initiative will make West Virginia safer, especially for survivors of domestic violence.”
“Domestic violence is prevalent in every community and affects people regardless of their background,” said Special Agent in Charge Shawn Morrow of the ATF Louisville Field Division, which covers West Virginia. “Firearms often play a role in domestic violence, and too frequently guns are used by abusers to silence their victims. ATF recognizes that, and our agency is committed to working with the United States Attorney to hold offenders accountable and protect those who most need it.”
The West Virginia designations will complement such existing approaches as a continuing series of training sessions in partnership with the West Virginia Coalition Against Domestic Violence.
This training educates advocates on relevant federal law, enforcement options and resources while keeping a focus on the vulnerability and needs of victims and survivors.
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.
Kanawha County has been designated in the Southern District of West Virginia. The Wheeling area, including Ohio, Brooke, and Hancock counties, has been designated in the Northern District of West Virginia.
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.
West Virginia’s U.S. Attorney’s Offices to Work with Local Partners to Reduce Domestic ViolenceRead the Press Release
CHARLESTON, W.Va. – 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.
“Domestic violence abusers use firearms to threaten, intimidate and coerce, and abusers with access to a gun are five times more likely to kill their partners,” said United States Attorney Will Thompson of the Southern District of West Virginia. “These designations will strengthen and enhance our ongoing collaboration with law enforcement and other community partners.”
“Domestic abusers are some of the most dangerous people in our community,” said United States Attorney William Ihlenfeld of the Northern District of West Virginia. “This initiative will make West Virginia safer, especially for survivors of domestic violence.”
“Domestic violence is prevalent in every community and affects people regardless of their background,” said Special Agent in Charge Shawn Morrow of the ATF Louisville Field Division, which covers West Virginia. “Firearms often play a role in domestic violence, and too frequently guns are used by abusers to silence their victims. ATF recognizes that, and our agency is committed to working with the United States Attorney to hold offenders accountable and protect those who most need it.”
The West Virginia designations will complement such existing approaches as a continuing series of training sessions in partnership with the West Virginia Coalition Against Domestic Violence. This training educates advocates on relevant federal law, enforcement options and resources while keeping a focus on the vulnerability and needs of victims and survivors.
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.
Kanawha County has been designated in the Southern District of West Virginia. The Wheeling area, including Ohio, Brooke, and Hancock counties, has been designated in the Northern District of West Virginia.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia.
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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Waterbury Gang Member Pleads GuiltyRead the Press Release
JUSTIN CABRERA, also known as “J.U.,” 25, of Waterbury, pleaded guilty today before U.S. District Judge Kari A. Dooley in Bridgeport to offenses stemming from his participation in the 960 gang, a violent Waterbury street gang.
Today’s announcement was made by Vanessa Roberts Avery, United States Attorney for the District of Connecticut; Maureen T. Platt, State’s Attorney for the Waterbury Judicial District; Robert Fuller, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation; James Ferguson, Special Agent in Charge, ATF Boston Field Division; and Waterbury Police Chief Fernando C. Spagnolo.
According to court documents and statements made in court, in an effort to address drug trafficking and related violence in Waterbury, the FBI, ATF, and Waterbury Police have been investigating multiple Waterbury-based groups, including the 960 gang. On September 14, 2021, a federal grand jury in Hartford returned a 36-count indictment charging Cabrera and 15 other alleged 960 gang members with racketeering, narcotics trafficking, firearm possession, murder, attempted murder and assault, and obstruction of justice offenses.
Cabrera pleaded guilty to one count of attempted murder and assault with a dangerous weapon in aid of racketeering, and one count of carrying and using a firearm during and in relation to a crime of violence.
On October 31, 2017, 960 members shot and wounded an individual in an attempt to murder members of a rival gang. In pleading guilty, Cabrera admitted that he operated one of the vehicles used in the shooting.
Judge Dooley scheduled sentencing for December 9, at which time Cabrera faces a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of life.
Cabrera has been detained since September 16, 2021.
This investigation has been conducted by the FBI’s Northern Connecticut Gang Task Force, Waterbury Police Department, ATF, and U.S. Marshals Service, with the assistance of the Southington Police Department, Watertown Police Department, New Milford Police Department, Connecticut State Police, Connecticut Department of Correction, Connecticut Forensic Science Laboratory, and the DEA Laboratory. The case is being prosecuted by Assistant U.S. Attorneys Geoffrey M. Stone, John T. Pierpont, Jr. and Natasha M. Freismuth, and Supervisory Assistant State’s Attorney Don E. Therkildesen, Jr. and Deputy Assistant State’s Attorney Alexandra Arroyo of the Waterbury State’s Attorney’s Office, who have been cross-designated as Special Assistant U.S. Attorneys in this matter.
This prosecution is a part of the Justice’s Department’s Project Safe Neighborhoods (PSN) and Organized Crime Drug Enforcement Task Forces (OCDETF) programs.
PSN is 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. In May 2021, the Justice Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. For more information about Project Safe Neighborhoods, please visit www.justice.gov/psn.
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.
Volusia County Woman Sentenced to over Nine Years in Prison for Bank Fraud and Aggravated Identity TheftRead the Press Release
Orlando, Florida – U.S. District Judge John Antoon II has sentenced Angela Courington (65, Volusia County) to nine years and three months in federal prison for bank fraud and aggravated identity theft. As part of her sentence, the court also entered an order of forfeiture in the amount of $2,201,836.40, the proceeds of the fraud. Courington entered a guilty plea on June 5, 2024.
According to court documents, between January 2013 and October 2022, Courington stole more than $2.2 million from her employer and his companies in her role as the companies’ accounting manager. Specifically, Courington made at least 84 company checks payable to herself without authorization by fraudulently forging the signature of the owner of the companies. To conceal her fraud, Courington documented the forged checks in the companies’ accounting systems as legitimate expenses. Additionally, as part of her fraudulent scheme, she used the companies’ credit cards and funds from her employer’s personal bank account for her own benefit, including, in large part, to fund her gambling habit.
This case was investigated by Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Kara M. Wick.
Virginia Man Sentenced for Illegal Possession of A Firearm and AmmunitionRead the Press Release
Greenbelt, Maryland –United States District Judge Paula Xinis sentenced Lavar William Henderson, age 46, of Richmond, Virginia to 90 months and 3 years of supervised release after he was found guilty of being a felon in possession of a firearm and ammunition.
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 (ATF) Baltimore Field Division; Chief Jessica M. E. Taylor of the United States Park Police, and Colonel Roland L. Butler, Jr., Superintendent of the Maryland State Police.
According to the guilty plea, on October 26, 2022, Henderson illegally possessed a 9mm pistol, loaded with 14 rounds of ammunition. On that day, United States Park Police officers were alerted to be on the lookout for a black Jaguar driven by a man wearing a red hat, who was pointing a firearm with a red laser at other motorists. A car matching that description passed a crash scene and officers at the scene followed, then conducted a traffic stop of the vehicle. Henderson was arrested.
Multiple witnesses observed Henderson point the Sig Sauer pistol equipped with a laser at motorists that day. Witnesses were driving in a truck on Interstate 495 near Forestville Road in District Heights, Maryland. While doing so, Henderson pulled his car alongside their truck and flashed a firearm with a laser attachment at them. Henderson then pulled directly in front of the victims’ truck and came to a complete stop before proceeding again. Henderson did this several times before coming to a complete stop near Forestville Road, forcing the victims to also stop their truck. Henderson then got out of his care and began screaming at the victims. Henderson also began beating on the window of their truck, asking the victims if they wanted to fight. Henderson then went back to his black Jaguar and pulled a handgun from inside and pointed it at the window of the truck. The handgun had a red laser. Henderson then got back inside of the black Jaguar and drove away at a high rate of speed.
Another witness came in contact with Henderson while they were both driving on the Baltimore-Washington Parkway. This witness was driving her car in the right lane, and when she attempted to merge into traffic, Henderson in his black Jaguar attempted to pass by on the left. He then honked his horn at the witness numerous times and refused to allow her to merge into traffic. Henderson pulled along the left side of the victim’s’ car, scratching the car from the front side panel to the back side panel. Henderson then pointed a gun at the driver through the driver’s window and shouted obscenities. He then drove away, further damaging the side of the victim’s car as he did so.
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.
U.S. Attorney Barron commended the ATF, the U.S. Park Police, and the Maryland State Police for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney LaShanta Harris and Assistant U.S. Attorney Patrick Kibbe, who prosecuted 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.
Violent Sex Trafficker Sentenced to More than 15 Years in PrisonRead the Press Release
NEWS RELEASE SUMMARY – September 16, 2024
SAN DIEGO – Troy Shelvin Cannon of Las Vegas was sentenced in federal court today to 188 months in prison for sex trafficking by fraud, force, or coercion. Cannon was convicted by a federal jury after a three-day trial in April.
The jury found that Cannon was sex trafficking an adult female victim and taking the money she earned from engaging in commercial sex acts to use for his own personal profit. Over many months, Cannon coerced the victim to continually engage in prostitution. For example, Cannon texted the victim messages that stated, in part:
- “And ima choke you so hard”
- “You making this ass whooping worse”
- “Bitch make some trap”
- “Hoe I got accolades and receipts and videos bout my pimping”
On December 20, 2023, Cannon followed through on his prior threats, violently assaulting the victim by strangling her and punching her face. Cannon left his victim with multiple serious injuries, which caused, in part, significant swelling to her forehead, bruising on her arms, and abrasions throughout her body.
According to evidence presented at trial, this was not Cannon’s first foray into “pimping.” For example, in 2021, Cannon was arrested for pandering in Las Vegas after he tried to traffic a detective who was undercover as a prostitute.
“Cannon used violence and intimidation to exploit a human being for profit,” said U.S. Attorney Tara McGrath. “The court imposed a sentence today holding him accountable, and sending a message that this kind of crime for greed will not be tolerated in San Diego.”
“HSI is committed to protecting the vulnerable and keeping our communities safe,” said Christopher Davis, acting special agent in charge for HSI San Diego. “Every time HSI and our law enforcement partners are successful at apprehending violent predators, we deliver a strong message - exploitation will not be tolerated, and those who prey on the weak will face the full weight of the law.”
This case is being prosecuted by Assistant U.S. Attorney Derek Ko, Katie Grammenidis and Lyndzie Carter.
DEFENDANT Case Number 24cr0135-BAS
Troy Shelvin Cannon Age: 30 Las Vegas, Nevada
SUMMARY OF CHARGES
Sex Trafficking by Force, Fraud, and Coercion – Title 18, U.S.C., Section 1591(a) and (b)(1)
Maximum penalty: Life in prison and $250,000 fine
INVESTIGATING AGENCIES
Homeland Security Investigations
San Diego Human Trafficking Task Force
United States Reaches Agreement with COBB Tuning Products for Clean Air Act ViolationsRead the Press Release
The Justice Department and Environmental Protection Agency (EPA) today announced a settlement agreement with COBB Tuning Products to resolve claims relating to the manufacture and sale of automotive emission defeat devices in violation of the Clean Air Act. The settlement requires COBB to pay a civil penalty of just over $2.9 million, based on the company’s limited ability to pay, and to stop the manufacture and sale of defeat devices.
COBB is an automotive aftermarket parts manufacturer and retailer based in Austin, Texas, which formerly sold its parts in Plano, Texas; Portland, Oregon; and Fountain Valley, California. In the complaint filed with the settlement agreement, COBB is alleged to have manufactured and sold defeat devices prohibited under the Clean Air Act that, when installed, bypass or disable EPA-approved emission controls and harm air quality.
“COBB created software that allowed users to disable emissions controls, increasing pollution and violating the law,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “We are committed to enforcing the Clean Air Act, which remains one of our most important tools in helping to secure and maintain a clean environment.”
“Defeat devices significantly increase air pollution from motor vehicles, particularly in communities that already are overburdened by pollution,” said Assistant Administrator David M. Uhlmann of EPA’s Office of Enforcement and Compliance Assurance. “Use of illegal defeat devices has gone on for far too long. EPA will use all of its enforcement tools to hold polluters like COBB Tuning accountable until these illegal practices stop.”
COBB manufactured or sold over 90,000 of these aftermarket defeat devices since January 2015. COBB’s actions resulted in substantial excess emissions of nitrogen oxides, hydrocarbons and carbon monoxide. Today’s settlement requires the company to stop manufacturing and selling aftermarket defeat devices. COBB may continue to sell tuners and software tunes which the California Air Resources Board determined do not increase emissions above allowable levels. This enforcement action will prevent additional excess emissions that would have resulted from the continued sale of these illegal products.
In addition to requiring COBB to pay a civil penalty of more than $2.9 million, the settlement agreement requires the company to:
- Remove delete features from its software,
- Destroy violative products still in its inventory,
- Cease providing technical support or honoring warranty claims for previously sold violative products,
- Revise its marketing materials,
- Notify the customers that purchased the subject parts that the products at issue violate the Clean Air Act, and
- Conduct compliance training for its employees and contractors.
Defeat devices, which are often sold to enhance engine performance, work by disabling a vehicle's emission controls, causing air pollution. As a result of enforcement efforts, some of the largest manufacturers of defeat devices have agreed to pay penalties and stop the sale of defeat devices.
More information on this settlement is available on the COBB Tuning Performance Settlement Agreement web page.
The proposed consent decree, lodged in the U.S. District Court for the Western District of Texas, is subject to a 30-day comment period and final court approval. Information on submitting comment and access to the settlement agreement is available on the Justice Department’s website: www.justice.gov/enrd/consent-decrees.
The EPA investigated the case.
Attorneys with the Justice Department’s Environmental Enforcement Section are handling the case.
U.S. Attorney’s Office in Chicago Announces Individual Self-Disclosure Pilot ProgramRead the Press Release
CHICAGO — The U.S. Attorney’s Office in Chicago today announced the formation of a pilot program that encourages early and voluntary self-disclosure of criminal conduct by individual participants in certain non-violent offenses.
The six-month pilot program is geared toward individuals who have participated in and have knowledge of criminal wrongdoing by virtue of their employment. The purpose of the program is to encourage and incentivize individuals to self-report wrongdoing that was previously unknown to law enforcement, without fear of criminal prosecution for doing so. The benefit for those who make timely and meaningful disclosures is a non-prosecution agreement in exchange for their ongoing assistance. Depending on the success of the pilot program, the Office will determine whether to extend it on a more permanent basis.
“We are implementing this pilot program to provide a roadmap for how to report individual and organizational misconduct,” said Morris Pasqual, Acting United States Attorney for the Northern District of Illinois. “We hope the program will enhance our effectiveness by incentivizing individuals and their counsel to provide us with actionable and timely information.”
From today through March 15, 2025, the Office will accept submissions on a pre-printed intake form that should be emailed to USAILN.WBP@usdoj.gov. Each submission will be reviewed by a working group of Assistant U.S. Attorneys. Anonymous reporting is not allowed, and individuals who have already been informed they are a subject or target of a federal criminal investigation will not be eligible. The reporting individual must agree to forfeit or disgorge any proceeds from their own criminal wrongdoing and pay full restitution to victims.
The program is not available to individuals whose misconduct involved violence, the threat of violence, terrorism, or any sex offense involving the force, fraud, or coercion of a minor. Additionally, elected federal or foreign officials, federal law enforcement officers, and individuals who are the highest-ranking person in their organization are not eligible to participate in the program. Click here for a full list of terms and conditions.
NDIL Individual Self-Disclosure Intake Form NDIL Individual Self-Disclosure Pilot Program Terms and ConditionsU.S. Attorney’s Office Announces Implementation of New Whistleblower Pilot ProgramRead the Press Release
WASHINGTON – U.S. Attorney Matthew M. Graves announced today the implementation of a new Whistleblower Non-Prosecution Pilot Program encouraging individuals to disclose criminal conduct undertaken by or through companies, exchanges, or other institutions. provided the whistleblower meets certain criteria. A copy of the policy is available on the USAO-DC webpage (embedded link). This pilot program is in addition to the Department of Justice’s recently launched Corporate Whistleblower Awards Pilot Program which provides monetary incentives for the disclosure of previously undetected misconduct that the whistleblowers themselves did not meaningfully participate in.
“This pilot program will allow more persons, with information vital to criminal activity, to participate in the criminal justice system from the correct side of the law,” said U.S. Attorney Graves. “Cooperating witnesses are an important tool in our fight to identify crime undertaken by or through public or private companies, or criminal conduct involving local bribery, which may otherwise go undetected.”
The program, effective immediately, is designed to encourage individuals to come forward about previously unknown fraud, bribery, or other misconduct. The program applies in certain circumstances where an individual voluntarily discloses to the USAO-DC information regarding criminal conduct undertaken by or through public or private companies, exchanges, financial institutions, investment advisers, or investments funds involving fraud or corporate control failures or affecting market integrity, or criminal conduct involving state or local bribery or fraud related to federal, state, or local funds. It only offers benefits to those who did not play a leading role in the misconduct, and who are not in a position of executive leadership, or federal, state, or local law enforcement or officials.
The pilot program provides transparency regarding circumstances in which USAO-DC prosecutors will offer deferred or non-prosecution agreements to incentivize individuals to provide original information. Receipt of such information can assist in investigating and prosecuting criminal conduct that may otherwise go undetected, which will further encourage companies to create compliance programs that help prevent, detect, and remediate misconduct and to report misconduct when it occurs.
Additional information can be found at: District of Columbia | District of Columbia Whistleblower Non-Prosecution Program (justice.gov). Interested parties will also find an intake form that can be emailed to: USADC.Whistleblower@usdoj.gov.
U.S. Attorney Jesse Laslovich announces $3.5 million in Justice Department grants to aid crime victimsRead the Press Release
BILLINGS — U.S. Attorney Jesse Laslovich today announced grant funding of more than $3.5 million for Montana from the U.S. Department of Justice’s Office of Justice Programs to support crime victims. The funding, totaling $3,657,090, is for two programs.
“Obtaining justice requires both accountability of the offender and support for crime victims. This funding demonstrates the Justice Department’s continuing commitment to ensuring that crime victims have access to assistance and compensation programs they need and deserve,” U.S. Attorney Laslovich said.
The Montana Board of Crime Control will receive $3,017,090 from the Office for Victims of Crime. The funds are from the Fiscal Year 2024 Victim Assistant Formula Grant through the Victims of Crime Act. The MBCC will provides funds from the Crime Victims Fund to enhance crime victim services in the state. These assistance funds are typically competitively awarded by the state to local community-based organizations that provide direct services to crime victims. The project period began Oct. 1, 2023 and will end Sept. 30, 2027. MBCC is a quasi-judicial board appointed by the governor to promote public safety.
The Montana Department of Justice will receive $640,000 from the Office for Victims of Crime. The funds are from the Fiscal Year 2024 Victim Compensation Formula Grant through the Victims of Crime Act. The grant provides funds from the Crime Victims Fund to enhance State Victim Compensation payments to eligible crime victims. The Victims of Crime Act compensation funds provide financial assistance to Federal and State victims of crime. The project period began Oct. 1, 2023 and will end Sept. 30, 2027.
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U.S. Attorney Brandon B. Brown Announces the Availability of Additional Project Safe Neighborhoods Grant Funds for the Western District of LouisianaRead the Press Release
SHREVEPORT / LAFAYETTE / ALEXANDRIA / LAKE CHARLES/ MONROE, La. – United States Attorney Brandon B. Brown and the Project Safe Neighborhoods (PSN) Task Force announced the availability of approximately $148,319 in additional PSN grant funds for the Western District of Louisiana. The Department of Justice, Office of Justice Programs (OJP), and Bureau of Justice Assistance is seeking applications for funding of a grant under the PSN Program. At least 30% ($44,495.70) of the grant funds must be designated for grants under the PSN Program to fund new and/or current gang violence reduction strategies in the Western District.
The PSN approach is guided by four key 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 of our efforts. The fundamental goal is to reduce violent crime, not simply to increase the number of arrests or prosecutions. PSN programs are led by U.S. Attorneys’ Offices in collaboration with local public safety agencies and community organizations. The programs’ emphasis on community engagement, prevention and intervention measures, focused and strategic enforcement, and measurement and accountability has helped achieve overall reductions in violent crime, including gun homicides, in neighborhoods where PSN strategies have been implemented.
“The violent crime rate is down in our district, but we cannot rest and become complacent,” said United States Attorney Brandon B. Brown. “The awarding of this grant is evidence that federal government is continuing to collaborate with our state and local law enforcement partners and non-governmental organizations to make Shreveport, Monroe, Alexandria, Lake Charles, Lafayette and all points between a safer place to live. If there are law enforcement partners and organizations ready to join us in the fight to combat violent crime through the acquisition of high-level investigative resources or the development of a crime prevention and deterrence strategy, I encourage you to apply for these funds.”
Past recipients of PSN grants have been the Alexandria, Lake Charles, Monroe, Shreveport and Lafayette Police Departments as well as the Caddo Parish and Lafayette Parish Sheriff’s Offices and Lafayette City Marshal’s Office. Funds were granted for various programs to include assisting with implementation of a new computer software program, body cameras for law enforcement officers, training for officers on gang prevention and overtime hours for law enforcement officers to increase patrols in areas that saw an increase in violent crime, including narcotics, gang and gun-related violent crimes.
The Shreveport Police Department has been named as the fiscal agent for administering the funds allowed through this PSN grant. A committee comprised of community volunteers from the five major cities in the Western District of Louisiana has been appointed to be responsible for reviewing the applications received from law enforcement and non-governmental agencies who submit their grant proposals.
The Shreveport Police Department, on behalf of the DOJ’s OJP, is seeking applications for these grant funds under the PSN Program. At least 30% of the grant funds must be designated for grants under the PSN Program to fund new and/or current gang violence reduction strategies in the Western District. Various types of single or multi-grantee grant proposals are welcome, including those that address the following:
- Gang and gun violence reduction, deterrence, prevention, community outreach and education;
- Enforcement, adjudication and supervision programs;
- Prisoner re-entry programs; or
- Other innovative related projects.
The FY2024 PSN Grant Announcement can be found by clicking on the “Attachments” link below the press release on our website at: https://www.justice.gov/usao-wdla/pr. To be eligible, grant proposals must be submitted no later than 5 p.m. on Friday, October 18, 2024, to the following e-mail address: USALAW.PSN@usdoj.gov. Interested applicants may also e-mail questions or contact Lisa Alwert at (337) 262-6618 for additional information.
An informational meeting will be held via WebEx on Tuesday, October 1, 2024, at 10:30 a.m. If you are interested in applying for these grant funds and learning more about the details required to be eligible, please send your e-mail and contact information to: USALAW.PSN@usdoj.gov by Friday, September 27, 2024, at 5:00 p.m. in order to obtain the link to the WebEx meeting.
More information about awards under PSN and other OJP grants can be found on the OJP Grant Awards Page.
Attachments:
PSN FY2024 Grant Announcement Attachment# # #
U.s. Attorney’s Office to Work with Local Partners to Reduce Domestic ViolenceRead the Press Release
U.S. Justice Department Designates Saginaw in the Eastern District of Michigan Under Section 1103 of the Violence Against Women Act, Prioritizing Firearms Prosecutions of Domestic
Violence Offenders
BAY CITY – 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.
“According to available National Incident-Based Reporting System (NIBRS) data, Saginaw has one of the highest rates of firearm violence against intimate partners in the state, and our office is committed to use all the tools in our toolbox to partner with local and federal law enforcement and community organizations to reduce firearm-related domestic violence in Saginaw and across the Eastern District of Michigan,” stated U.S. Attorney Dawn N. Ison.
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 Eastern District of Michigan, Saginaw has been designated.
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.Two Rhode Island Men Charged for Leading Roles in Large-Scale Organized Theft Crime Ring; Investigation ContinuesRead the Press Release
PROVIDENCE, RI – Following the seizure of approximately 60,000 stolen items, primarily over-the-counter pharmaceutical products and cosmetics worth an estimated $1.6 million dollars, two Rhode Island men described in court documents as high-level members of an organized retail theft crime ring that targeted retailers nationwide, and then resold the stolen goods in bulk to other retailers and private citizens, have been arrested and charged in federal court in Providence, RI, announced Zachary A. Cunha, United States Attorney for the District of Rhode Island.
As reflected in court document, it is alleged that Norman L. Cipriano, 52, of Warwick, and Patrick M. Vigneau, 59, of Cranston, RI, are high-level wholesalers known within organized theft rings as Diverters. Diverters often set up shell companies, own warehouses where stolen merchandise is shipped, and act as suppliers for small to mid-size retail chains. These organizations frequently utilize e-commerce marketplaces to promote and offer their goods and use unregulated third-party processors such as PayPal in order to avoid detection.
To date, agents and task force officers from the United States Postal Inspection Service, Homeland Security Investigations, and the Warwick Police Department have executed multiple search warrants in Warwick, Cranston, and Pawtucket, RI, seizing enough stolen goods to fill three fully loaded 24-foot box trucks. Authorities have also moved to freeze several bank and e-commerce accounts, and have seized more than two dozen boxes in transit via UPS.
It is alleged that, over the last several years, this Rhode Island-based organized retail crime theft has netted roughly $12.3 million dollars in sales.
“The scale of the retail theft network whose alleged leaders we have charged today is staggering,” remarked U.S. Attorney Zachary A. Cunha. “In addition to imposing higher prices on legitimate retail consumers, theft rings like this one put unsuspecting customers at risk from damaged, expired, or adulterated goods, and impose untold economic costs. Today’s arrests and the disruption of this network reflects the kind of tenacity and dedication that this Office and our partners will continue to bring to bear to combat this type of brazen criminality.”
Stolen Items Seized by Law Enforcement
“The U.S. Postal Inspection Service is committed to dismantling organized retail theft,” said Ketty Larco-Ward, Inspector in Charge of the Boston Division for the Postal Inspection Service. “These criminals use the U.S. Mail to ship the stolen items to unsuspecting customers who assume they are purchasing legitimate goods from a reputable online seller. The impact of this type of crime is more than just using the mail for illegal gain. This crime has significant negative impact on businesses, retailers, and public safety. The U.S. Postal Inspection Service along with our law enforcement partners, will continue to pursue criminals who victimize postal customers and bring them to justice.”
“The scale of this alleged theft organization is simply astonishing. Special agents and officers seized tens of thousands of stolen items valued at over $1.6 million, but this represents only a snapshot of this alleged scheme,” said Special Agent in Charge Michael J. Krol for Homeland Security Investigations in New England. “HSI is proud to work alongside our federal, local, and private industry partners to unravel this organization. Organized retail theft is not a victimless crime and when theft groups undermine international commerce and the supply chain, we all pay.”
Colonel Bradford Connor of the Warwick Police Department stated, “The Warwick Police Department is dedicated to collaborating with our state and local partners to fight organized retail theft. This investigation highlights the various schemes aimed at defrauding businesses and citizens. The joint efforts of the United States Postal Inspection Service, Homeland Security Investigations, and the U.S. Attorney’s Office were crucial in bringing these individuals to justice and dismantling this organized crime ring.”
Stolen Items Seized by Law Enforcement
Cipriano and Vigneau are charged by way of federal criminal complaints with interstate transportation of stolen goods, conspiracy to commit interstate transportation of stolen goods, money laundering, conspiracy to commit money laundering, and engaging in monetary transactions in property derived from unlawful activity.
Court documents allege that organized theft rings operate by dividing responsibilities among various individuals. At the first stage, these rings employ individuals known as “Boosters,” led by Crew Bosses who provide them with lists of items to be stolen from retail outlets, most often high-demand, high-priced products. The stolen items are then turned over to “Fencers,” middlemen who work between the Boosters/Crew Bosses and other individuals involved in the organization. Fencers move the items to “Cleansers” who strip retail and anti-theft stickers and devices from the stolen items prior to them being shipped off to “Diverters.” Diverters act as wholesalers, salespeople, or coordinators of secondary sales, often times selling the stolen goods to small to mid-sized retail chains that in turn sell the products to consumers.
In this matter, it is alleged that stolen and cleaned merchandise was turned over to Cipriano and Vigneau in their roles as Diverters. The defendants, allegedly operating under the names of various shell companies, and working with others, sold large volumes of stolen merchandise via e-commerce sites such as eBay, Walmart, and Amazon. In order to avoid detection, unregulated third-party processors, such as PayPal, were used, tied to bank accounts controlled by the defendants.
A federal criminal complaint is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
According to court records, Norman L. Cipriano was convicted in Rhode Island state court in 2005 and served a term of six years of incarceration for conspiracy and receiving stolen goods. Additionally, Cipriano was convicted in federal court in August 2013 on a charge of trafficking counterfeit goods and was sentenced to 50 months in federal prison.
Patrick M. Vigneau, convicted by a federal jury in March 1998 on charges of engaging in a continuing enterprise, possession with intent to distribute marijuana, and conspiring to commit money laundering, was released from federal prison in 2020 and is currently serving a term of federal supervised release.
This case is being prosecuted by Assistant United States Attorney Ly T. Chin.
The matter is being investigated by the United States Postal Inspection Service, Homeland Security Investigations (HSI) New England, HSI Providence, and the Warwick, RI, Police Department.
United States Attorney Cunha acknowledges and thanks the following law agencies for their assistance: HSI Springfield, MA; HSI Hartford, CT; HSI New Haven, CT: Customs and Border Protection; Cranston RI, Police Department; Pawtucket, RI, Police Department; Providence RI, Police Department; Newport RI, Police Department; East Providence RI, Police Department; Portsmouth RI, Police Department; Rhode Island State Police; Rhode Island National Guard; Naperville, IL, Police Department; Wilmette, IL, Police Department; and the California Highway Patrol.
United States Attorney Cunha also acknowledges loss prevention personnel from Walmart, Ahold Delhaize (Stop & Shop) CVS, Home Depot, United Parcel Service, Amazon, and eBay for their assistance to law enforcement.
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search_warrant_and_criminal_complaint_affidavits.pdf usa_cunha_news_conference_remarks_9-16-2024_004.pdfTwo Puerto Rican Men Sentenced for Destroying Wetlands Including in the Jobos Bay National Estuarine Research ReserveRead the Press Release
On Friday, Sept. 13, two Puerto Rican men were sentenced for their destruction, removal and fill of protected wetlands in Puerto Rico in violation of the Clean Water Act.
U.S. District Court Judge Gina R. Mendez-Miro for the District of Puerto Rico sentenced Rafael Carballo-Diaz, 51, to 12 months in prison, one year of supervised release and a $4,000 fine. According to court documents, starting in July 2020, Carballo-Diaz destroyed, removed and filled mangrove wetland areas within and around the Jobos Bay National Estuarine Research Reserve (JBNERR) in Las Mareas, Puerto Rico. Despite lacking a permit, he filled the area with quarry material, gated the area, placed at least six mobile housing units on the property and added a pool. He then named the property “Cacique Resort” and rented the units online as short-term vacation properties.
Nathaniel Hernandez-Claudio, property manager at Carballo-Diaz’s Cacique Resort, was sentenced by Judge Mendez-Miro to 12 months of probation for his role in filling the property. Both Carballo-Diaz and Hernandez-Claudio were indicted in December 2023, and pleaded guilty in July.
Mangrove wetlands, such as those destroyed by the defendants, are critical to local infrastructure, economies and ecosystems because they can limit damage from flooding and storms, reduce pollution and provide habitat for numerous marine and endangered species. The JBNERR was designated as a reserve in 1981 to protect the wetlands and study the biological and societal impacts of estuarine habitat, as well as provide recreation and educational opportunities to local communities. The reserve is home to the endangered brown pelican, peregrine falcon, hawksbill turtle and West Indian manatee.
Congress enacted the Clean Water Act in 1972 to protect and maintain the integrity of the waters of the United States. It prohibits the discharge of any pollutant and fill material into waters of the United States except when a permit is obtained from the United States.
This case is part of an ongoing investigation into the destruction of wetlands in Puerto Rico. Previously charged individuals include Luis Enrique Rodriguez-Sanchez, sentenced in June; Awildo Jimenez-Mercado sentenced on Sept. 11; and Pedro Luis Bones-Torres, scheduled to be sentenced on Nov. 7.
Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division and U.S. Attorney W. Stephen Muldrow for the District of Puerto Rico made the announcement.
The Environmental Protection Agency’s Criminal Investigation Division and the FBI investigated the case, with support from the Puerto Rico and U.S. Virgin Islands Environmental Crimes Task Force.
Senior Trial Attorney Patrick M. Duggan of the Justice Department’s Environmental Crimes Section and Assistant U.S. Attorney Seth A. Erbe for the District of Puerto Rico are prosecuting the case.
Two Puerto Rican Men Sentenced for Destroying Wetlands Including in the Jobos Bay National Estuarine Research ReserveRead the Press Release
SAN JUAN, Puerto Rico – On Friday, Sept. 13, two Puerto Rican men were sentenced for their destruction, removal and fill of protected wetlands in Puerto Rico in violation of the Clean Water Act.
U.S. District Court Judge Gina R. Méndez-Miró for the District of Puerto Rico sentenced Rafael Carballo-Díaz, 51, to 12 months in prison, one year of supervised release and a $4,000 fine. According to court documents, starting in July 2020, Carballo-Díaz destroyed, removed and filled mangrove wetland areas within and around the Jobos Bay National Estuarine Research Reserve (JBNERR) in Las Mareas, Puerto Rico. Despite lacking a permit, he filled the area with quarry material, gated the area, placed at least six mobile housing units on the property and added a pool. He then named the property “Cacique Resort” and rented the units online as short-term vacation properties.
Nathaniel Hernández-Claudio, property manager at Carballo-Díaz’s Cacique Resort, was sentenced by Judge Méndez-Miró to 12 months of probation for his role in filling the property. Both Carballo-Díaz and Hernández-Claudio were indicted in December 2023, and pleaded guilty in July.
Mangrove wetlands, such as those destroyed by the defendants, are critical to local infrastructure, economies and ecosystems because they can limit damage from flooding and storms, reduce pollution and provide habitat for numerous marine and endangered species. The JBNERR was designated as a reserve in 1981 to protect the wetlands and study the biological and societal impacts of estuarine habitat, as well as provide recreation and educational opportunities to local communities. The reserve is home to the endangered brown pelican, peregrine falcon, hawksbill turtle and West Indian manatee.
Congress enacted the Clean Water Act in 1972 to protect and maintain the integrity of the waters of the United States. It prohibits the discharge of any pollutant and fill material into waters of the United States except when a permit is obtained from the United States.
This case is part of an ongoing investigation into the destruction of wetlands in Puerto Rico. Previously charged individuals include Luis Enrique Rodríguez-Sánchez, sentenced in June; Awildo Jiménez-Mercado sentenced on Sept. 11; and Pedro Luis Bones-Torres, scheduled to be sentenced on Nov. 7.
Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division and U.S. Attorney W. Stephen Muldrow for the District of Puerto Rico made the announcement.
The Environmental Protection Agency’s Criminal Investigation Division and the FBI investigated the case, with support from the Puerto Rico and U.S. Virgin Islands Environmental Crimes Task Force.
Senior Trial Attorney Patrick M. Duggan of the Justice Department’s Environmental Crimes Section and Assistant U.S. Attorney Seth A. Erbe for the District of Puerto Rico are prosecuting the case.
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Two Members of a Nationwide Drug Trafficking Ring Sentenced for Methamphetamine Trafficking ConspiracyRead the Press Release
BOSTON – Two members of a nationwide drug trafficking ring were sentenced today in federal court in Boston. During the investigation over 160 pounds of pure methamphetamine, as well as an AK-47, a Glock with no serial number, two loaded Smith & Wesson handguns and over 4,200 rounds of ammunition were seized. An illegal marijuana grow operation with hundreds of marijuana plants was also dismantled.
Edison Klotz, 48, of Stoughton, Mass., was sentenced by U.S. District Court Judge Nathaniel M. Gorton to 46 months in prison, followed by two years of supervised release after pleading guilty to two counts of a superseding information charging him with conspiracy to distribute and to possess with intent to distribute methamphetamine and distribution and possession with intent to distribute methamphetamine.
Brian Keleman, 55, of Woonsocket, Rhode Island, was sentenced by U.S. District Court Judge Nathaniel M. Gorton to 60 months in prison, followed by three years of supervised release after pleading guilty to two counts of a superseding indictment charging him with conspiracy to distribute and to possess with intent to distribute controlled substances and money laundering conspiracy.
The superseding indictment also charged 10 other defendants with controlled substance offenses, firearm offenses and money laundering offenses.
In approximately October 2020, investigators received information about drug trafficking activities of a large-scale methamphetamine supplier in the Boston area. Over the course of the investigation, a cooperating witness completed controlled purchases from members of the drug trafficking organization, including from Klotz. In November 2020, Klotz distributed over 108 grams of pure methamphetamine to the cooperating witness.
In late 2020, co-defendant Reshat Alkayisi was identified as a large-scale methamphetamine trafficker, who distributed multi-pound quantities to distributor customers throughout the New England area. Between October 2020 and April 2021, 12 controlled purchases of methamphetamine were made from the drug trafficking organization—two of which were delivered personally by Alkayisi and one that was negotiated with Alkayisi and delivered by Keleman. The investigation also revealed that Keleman worked for Alkayisi on Alkayisi’s illegal marijuana grow. In addition, Keleman delivered methamphetamine on behalf of Alkayisi and also assisted Alkayisi in laundering his drug proceeds.
Klotz and Keleman are the fifth and sixth defendants to be sentenced. All other defendants have pleaded guilty and are awaiting sentencing or have been sentenced.
Acting United States Attorney Joshua S. Levy; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Stephen Belleau, Acting Special Agent in Charge of the Drug Enforcement Administration, New England Field Division made the announcement. Valuable assistance was provided by the Massachusetts Department of Correction; Norfolk County Sherriff’s Office; and Concord, Hudson, Peabody, Reading, Watertown and Waltham Police Departments. Assistance was also provided by the Massachusetts, Rhode Island, New Hampshire and Maine State Police. Assistant U.S. Attorneys Alathea Porter and Katherine Ferguson of the Criminal Division are prosecuting the case.
This case 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.
Two Former High-Ranking FDNY Officials Charged with Bribery, Corruption, and False Statements OffensesRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, Jocelyn E. Strauber, the Commissioner of the New York City Department of Investigation (“DOI”), and James E. Dennehy, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of an Indictment charging ANTHONY SACCAVINO and BRIAN CORDASCO, two former chiefs of the New York City Fire Department (“FDNY”) Bureau of Fire Prevention (“BFP”) with bribery, corruption, and false statements offenses. SACCAVINO and CORDASCO were arrested this morning and will be presented today before U.S. Magistrate Judge Robyn F. Tarnofsky. The case is assigned to U.S. District Judge Lewis J. Liman.
U.S. Attorney Damian Williams said: “As alleged, Anthony Saccavino and Brian Cordasco abused their authority as chiefs of the FDNY’s Bureau of Fire Prevention to line their pockets in a pay-to-play bribery scheme. By allegedly selling priority access to the BFP’s services, which are vital to preventing New York City businesses and homes from fire-related incidents, Saccavino and Cordasco undermined the public trust and put their own greed above the interests of the taxpayers they swore to serve. This Office and our partners at the DOI and FBI will continue to ensure that City officials who put themselves over the public interest will be held accountable.”
DOI Commissioner Jocelyn E. Strauber said: “When senior City officials provide special treatment in exchange for money, they abuse their authority, fail to serve New Yorkers fairly and equitably, and undermine confidence in the integrity of City government. As alleged, two senior leaders of the Bureau of Fire Prevention, responsible for fire safety approvals and inspections, and facing a significant backlog, fast-tracked dozens of projects in exchange for tens of thousands of dollars in bribe payments. I thank the FDNY for referring allegations of possible criminal conduct to DOI, prompting this investigation, and the U.S. Attorney’s Office for the Southern District of New York and the FBI for working with us to pursue this important case.”
FBI Assistant Director in Charge James E. Dennehy said: “The FDNY officials charged today allegedly took bribes to expedite the inspection process, undermining the fairness and integrity that are fundamental to our system. By doing so, they not only compromised public safety but also eroded the public’s trust in those who are sworn to protect us. Additionally, they damaged the trust of the overwhelming majority of New York City firefighters who are honest, hardworking public servants who dedicate their lives to protecting our communities, often putting themselves in harm's way to ensure our safety. These men and women embody the highest standards of integrity and service. The actions of a few should not overshadow the dedication and bravery of the many who wear the badge with pride and honor.”
As alleged in the Indictment:[1]
SACCAVINO and CORDASCO repeatedly abused their positions of trust as high-ranking officials in the FDNY from at least in or about 2021 through in or about 2023 by soliciting and accepting tens of thousands of dollars in bribe payments in exchange for providing preferential treatment to certain individuals and companies with matters pending before the BFP.
SACCAVINO and CORDASCO were at relevant times Chiefs of the BFP, which is responsible for overseeing and approving the installation of fire safety and suppression systems in commercial and residential buildings in New York City. The BFP ensures that these systems comply with fire safety regulations by, among other things, reviewing and approving design plans and conducting on-site inspections of installed systems. In many cases, BFP approvals are required before a building can be occupied or opened to the public. As Chiefs of Fire Prevention—and, ultimately, the top two ranking members of the BFP—during the relevant period, SACCAVINO and CORDASCO supervised the BFP personnel who conducted these plan reviews and inspections. For nearly two years, SACCAVINO and CORDASCO misused their authority as Chiefs for their private financial gain.
Specifically, SACCAVINO and CORDASCO solicited and accepted bribes from a retired FDNY firefighter, Henry Santiago Jr., who ran an unsanctioned “expediting” business (the “Santiago Company”). Acting in large part at the direction of SACCAVINO and CORDASCO, Santiago promised his customers that he could “expedite”—or fast-track—their plan reviews and inspection dates with the BFP, in exchange for payment. Santiago made this claim even though the BFP generally addressed applications on a first-come, first-served basis, and notwithstanding the significant wait times that BFP applicants generally faced during the relevant period.
Behind the scenes, after a customer had hired the Santiago Company, SACCAVINO and CORDASCO directed BFP personnel to prioritize that customer’s plan review or inspection request in exchange for bribe payments from Santiago and/or the Santiago Company. In carrying out their official duties as Chiefs, SACCAVINO and CORDASCO justified the priority requests within the FDNY by lying to their BFP subordinates about the basis for their directions to prioritize certain projects over others. Santiago was paid by the customers of his company for this “expediting” and, in turn, Santiago made bribe payments to SACCAVINO and CORDASCO to obtain preferential treatment by the BFP for the Santiago Company’s customers.
Collectively, SACCAVINO, CORDASCO, and Santiago received more than $190,000 in payments in connection with this scheme.
As part of the investigation into this bribery scheme, in or about February 2024, SACCAVINO and CORDASCO each participated in voluntary interviews with the FBI. During those interviews, SACCAVINO and CORDASCO each repeatedly made false statements in an effort to conceal their involvement in the bribery scheme.
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If you believe you have information related to bribery, fraud, or any other illegal conduct by FDNY or BFP employees, please contact tipline@doi.nyc.gov or (212) 825-2828. If you were involved in such conduct, please consider self-disclosing through the SDNY Whistleblower Pilot Program at USANYS.WBP@usdoj.gov.
SACCAVINO, 59, of New York, New York, and CORDASCO, 49, of Staten Island, New York, are each charged with one count of conspiracy to solicit and receive a bribe, which carries a maximum sentence of five years in prison; one count of solicitation and receipt of a bribe, which carries a maximum sentence of 10 years in prison; one count of honest services wire fraud, which carries a maximum sentence of 20 years in prison; one count of conspiracy to commit honest services wire fraud, which carries a maximum sentence of 20 years in prison; and one count of making false statements, which carries a maximum sentence of five years in prison.
Santiago, 46, of Staten Island, New York, pled guilty on September 10, 2024, to one count of conspiracy to commit bribery, which carries a maximum sentence of five years in prison; one count of bribery, which carries a maximum sentence of 10 years in prison; one count of conspiracy to commit honest services wire fraud, which carries a maximum sentence of 20 years in prison; and one count of honest services wire fraud, which carries a maximum sentence of 20 years in prison. His case is assigned to U.S. District Judge Andrew L. Carter. Under the terms of his plea agreement, Santiago agreed to cooperate with the Government.
The statutory maximum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Williams praised the outstanding work of the DOI and FBI.
The prosecution of this case is being handled by the Office’s Public Corruption Unit. Assistant U.S. Attorneys Jessica Greenwood, Matthew King, and Daniel H. Wolf are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the Indictment and the descriptions of the Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Tulsa Man Sentenced After Search Warrant Found Fentanyl, a Short-Barreled Rifle and Machine GunRead the Press Release
TULSA, Okla. – U.S. District Judge John D. Russell sentenced Dai-Shad Le’Sai-Rio Lucas, 26, for Possession of Fentanyl with Intent to Distribute, Illegal Possession of a Machine Gun, and Possession of a Short-Barreled Rifle in Furtherance of a Drug Trafficking Crime. Judge Russell ordered Lucas to 144 months imprisonment, followed by 3 years of supervised release.
In October 2023, the Tulsa Police Department executed a search warrant on Lucas’ home. When officers entered the home, Lucas admitted to throwing pills, a short-barreled rifle, a machine gun, and a pistol out of his bedroom window. During an extensive search of the home, officers found cocaine, several pills that contained fentanyl, digital scales, cash, a bulletproof vest, and additional firearms. Further, Lucas admitted that he intended to sell the pills that contained fentanyl.
Lucas will remain in custody pending transfer to the U.S. Bureau of Prisons.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and Tulsa Police Department investigated the case. Assistant U.S. Attorney Mike Flesher prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. For more information about PSN, please visit Justice.gov/PSN.
Suspect at Trump International Golf Course Charged with Firearms OffensesRead the Press Release
MIAMI - Ryan Wesley Routh, 58, of Hawaii, has been charged by a criminal complaint in the Southern District of Florida with firearms charges related to an incident at Trump International Golf Club in West Palm Beach on Sept. 15.
Routh was charged with possession of a firearm by a convicted felon and possession and receipt of a firearm with an obliterated serial number and made his initial appearance today before Magistrate Judge Ryon M. McCabe in the federal courthouse in West Palm Beach. A detention hearing has been scheduled for Sept. 23. The investigation remains ongoing.
According to allegations in the criminal complaint, a Secret Service agent walking the golf course perimeter saw what appeared to be a rifle poking out of the tree line. After the agent fired a service weapon in the direction of the rifle, a witness saw a man later identified as Routh fleeing the area of the tree line. Routh was later apprehended by officers from the Martin County Sheriff’s Office, in coordination with the Palm Beach County Sheriff’s Office.
The complaint alleges that in the area of the tree line from which Routh fled, agents found a digital camera, a backpack, a loaded SKS-style rifle with a scope and a black plastic bag containing food. The serial number on the rifle was obliterated.
According to the complaint, Routh was convicted of felonies in North Carolina in December 2002 and March 2010.
The FBI is leading the ongoing investigation. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the U.S. Secret Service are providing assistance.
The U.S. Attorney’s Office for the Southern District of Florida and the Counterterrorism Section of the Justice Department’s National Security Division are prosecuting the case.
A criminal complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Note: View the criminal complaint here.
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Suspect at Trump International Golf Course Charged with Firearms OffensesRead the Press Release
Note: View the criminal complaint here.
Ryan Wesley Routh, 58, of Hawaii, has been charged by a criminal complaint in the Southern District of Florida with firearms charges related to an incident at Trump International Golf Club in West Palm Beach on Sept. 15.
Routh was charged with possession of a firearm by a convicted felon and possession and receipt of a firearm with an obliterated serial number and made his initial appearance today before Magistrate Judge Ryon M. McCabe in the federal courthouse in West Palm Beach. A detention hearing has been scheduled for Sept. 23. The investigation remains ongoing.
According to allegations in the criminal complaint, a Secret Service agent walking the golf course perimeter saw what appeared to be a rifle poking out of the tree line. After the agent fired a service weapon in the direction of the rifle, a witness saw a man later identified as Routh fleeing the area of the tree line. Routh was later apprehended by officers from the Martin County Sheriff’s Office, in coordination with the Palm Beach County Sheriff’s Office.
The complaint alleges that in the area of the tree line from which Routh fled, agents found a digital camera, a backpack, a loaded SKS-style rifle with a scope and a black plastic bag containing food. The serial number on the rifle was obliterated.
According to the complaint, Routh was convicted of felonies in North Carolina in December 2002 and March 2010.
The FBI is leading the ongoing investigation. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the U.S. Secret Service are providing assistance.
The U.S. Attorney’s Office for the Southern District of Florida and the Counterterrorism Section of the Justice Department’s National Security Division are prosecuting the case.
A criminal complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
South Dakota Surgical Hospital Agrees to Pay More Than $12.7M 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.
Settlement
South Dakota Surgical Hospital Agrees to Pay More Than $12.7M to Resolve Alleged False Claims Act ViolationsRead the Press Release
WASHINGTON – 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.
Six Members of a Former Cult Convicted of Forced Labor Conspiracy Charges in Years-Long Scheme that Included Multiple MinorsRead the Press Release
Following a 26-day trial, a jury in Kansas convicted Kaaba Majeed, 50, Yunus Rassoul, 39, James Staton, 62, Randolph Rodney Hadley, 49, Daniel Aubrey Jenkins, 43, and Dana Peach, 60, of conspiracy to commit forced labor. The jury additionally convicted Kaaba Majeed of five counts of forced labor. Two other co-defendants, Etenia Kinard, 48, and Jacelyn Greenwell, 45, previously pleaded guilty to conspiracy to commit forced labor.
According to the evidence presented in court during the course of the trial, the defendants were all former high-ranking members of the United Nation of Islam (UNOI), or were wives to the UNOI founder, Royall Jenkins.
“The United Nation of Islam and these defendants held themselves out as a beacon of hope for the community, promising to educate and teach important life skills to members, particularly children,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Instead, the defendants betrayed this trust, exploiting young children in the organization by callously compelling their labor. Prosecuting this case is a testament to the Justice Department’s unwavering commitment to hold human traffickers accountable. The Justice Department will continue to vigorously investigate and prosecute parasitic criminals who target vulnerable victims to finance their lifestyles.”
”The bravery shown by victims of the United Nation of Islam is inspiring, because they spoke up about heinous atrocities committed against them as vulnerable children,” said U.S. Attorney Kate E. Brubacher for the District of Kansas. “In childhood, they suffered physical and emotional abuse, were denied a proper education, and were subject to forced labor. As adults, these victims found the strength and courage to pursue justice and face their abusers.”
“Under the guise of false pretenses and coercion, these victims, some of whom were as young as eight years old, endured inhumane and abhorrent conditions,” said Special Agent in Charge Stephen Cyrus of the FBI Kansas City Field Office. “Today’s convictions should serve as a stark warning that forced labor will not be tolerated by the FBI.”
UNOI principles included many rules that members had to follow, required “duty” or unpaid labor and emphasized the negative eternal religious consequences of noncompliance. UNOI operated businesses in various cities around the United States, including Kansas City, Kansas; New York City; Newark, New Jersey; Cincinnati, Ohio; Dayton, Ohio; and Atlanta, among other locations.
In their former leadership roles in UNOI, the defendants agreed to compel the labor and services of over a dozen victims, including multiple minors, some of whom were as young as eight years old, between October 2000 and November 2012. The victims worked in UNOI-owned and operated restaurants, bakeries, gas stations, laboratory and a clothing and sewing factory, often up to 16 hours a day. The victims also provided child care and domestic services inside defendants’ homes. None of the victims was ever compensated for the years of work they performed at UNOI businesses or at the behest of the defendants. The victims all lived in deplorable conditions, in overcrowded facilities often overrun with mold, mice and rats. In contrast, the defendants and their immediate families lived comfortably.
The evidence presented in court demonstrated that the defendants used a variety of coercive tactics to compel the victims’ labor and services. In essence, the defendants effectively controlled the victims by manipulating the UNOI rules originally created by the founder.
First, the defendants separated the minor victims from their parents and support network. UNOI enticed parents to send their children to Kansas by promising an education and development of life skills through work at UNOI-operated businesses. However, these promises were false. The minors did not receive an education from an accredited and licensed school but instead worked excessive hours for UNOI’s financial benefit. UNOI’s unlicensed and unaccredited school or “university” was little more than a vehicle for extracting unpaid labor and publicly humiliating victims who violated one of UNOI’s many rules.
Second, the defendants controlled (1) what the victims viewed and read; (2) how the victims dressed; (3) how the victims addressed the defendants and others; (4) with whom the victims communicated; (5) where the victims went; and (6) what the victims ate, to ensure that the victims, particularly the females, maintained a certain weight. The defendants restricted and monitored the victims’ communications with their families, members of the opposite sex and others. The defendants required some victims to undergo colonics, which is a procedure designed to cleanse the colon by streaming gallons of water through a tube inserted into the victims’ rectums. At the same time, the defendants rarely permitted victims to receive outside medical attention for illnesses or injuries.
Third, the defendants regularly punished the victims for violating the rules. The defendants withheld food, prohibited victims from speaking to others for over two weeks, locked them in a dark, frightening basement, imposed extra work and beat them, sometimes in front of others to create a climate of fear and intimidation. The defendants even held one victim upside down over train tracks because he would not admit to stealing food when he was hungry. Another victim drank water from a toilet because she was so thirsty after not being permitted to drink.
Finally, the defendants instilled a fear of noncompliance and of leaving the UNOI by depriving victims of any education or development of life skills. The defendants also told victims that they would burn in “eternal hellfire” if they left. Family members who remained at UNOI were required to shun as “detractors” any victim who left, and UNOI claimed credit for any negative consequence that occurred to members who left the organization.
Sentencing hearings are scheduled for Feb. 18, 2025. Kaaba Majeed faces a maximum penalty of 20 years in prison as well as mandatory restitution. The rest of the defendants each face a maximum penalty of five years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI Kansas City Field Office, with the assistance of the Department of Labor and New York State Department of Labor, investigated this case.
Assistant U.S. Attorney Ryan Huschka for the District of Kansas and Trial Attorneys Kate Alexander, Maryam Zhuravitsky and Francisco Zornosa of the Civil Rights Division’s Human Trafficking Prosecution Unit are prosecuting the case.
Anyone who has information about human trafficking should report that information to the National Human Trafficking Hotline toll-free at 1-888-373-7888, which is available 24 hours a day, seven days a week. For more information about human trafficking, please visit www.humantraffickinghotline.org. Information on the Justice Department’s efforts to combat human trafficking can be found at www.justice.gov/humantrafficking.
Senior Leaders of Violent Drug Gang Convicted of Drug Trafficking While Armed with Machine GunsRead the Press Release
WASHINGTON – Andre Alonte Willis aka “Boogie,” 32, and Broadus Jamal Daniels aka “Wardy,” 29, both of Washington, D.C. were found guilty today of drug and gun charges related to a drug trafficking conspiracy. The verdicts were announced by U.S. Attorney Matthew M. Graves, Acting Special Agent in Charge David Geist of the FBI Washington Field Office Criminal and Cyber Division, Acting Special Agent in Charge James Van Vliet of the ATF Washington Field Division, and Chief Pamela A. Smith of the Metropolitan Police Department.
Willis and Daniels were both found guilty of conspiracy to distribute more than 100 kilograms of marijuana, possession with the intent to distribute marijuana, unlawful possession of machine guns, and possessing firearms in furtherance of drug trafficking. Daniels was also found guilty of possessing machine guns in furtherance of drug trafficking and unlawful possession of a firearm by a convicted felon. U.S. District Judge Amy Berman Jackson scheduled sentencing hearings for February 2025.
“These guilty verdicts are the latest step in our ongoing effort to federally prosecute those who are driving violence or whose conduct is a magnet for violence,” said US Attorney Graves. “These defendants have been found guilty of illegally possessing numerous firearms and possessing a conversion device that could transform a handgun into a machine gun. We, along with our law enforcement partners, will continue to identify those driving violence within our community and work to hold them accountable for crimes that will remove them from our community for lengthy periods of time.”
According to the evidence presented at trial, Willis was a “big homie” in the D.C. street crew known as “Push Dat Shit” or “PDS.” PDS maintained gang territory in the 3300 – 3500 blocks of Wheeler Road, Southeast, and adjacent areas, and operated an open air drug market outside the Holiday Market located at 3509 Wheeler Road, Southeast. In approximately August 2018, PDS became allied with a neighboring street gang known as Jugg Gang, or “JG,” including JG “big homie” Daniels.
Between August 2018 and April 2023, members of the allied PDS/JG street crew sold drugs from Holiday Market and from “trap houses” that they maintained in apartment buildings surrounding that location. As their drug business grew, PDS/JG became the target of drive-by shootings conducted by rival gangs – shootings they referred to as “spinning the block.” Beginning in approximately August 2019, a PDS/JG member began assembling AR-Pistol assault rifles from “kits” purchased from online retailers and modifying them to be capable of fully automatic fire. Such firearms are defined as “Privately Made Firearms” by the ATF but are frequently referred to as “ghost guns” on the street.
As was proved at trial, PDS/JG members used, carried, and possessed these “ghost gun” AR-Pistol machine guns in order to defend their territory from rival gangs, and also to “spin the block” on rival gangs in order to deter and dissuade their rivals from entering PDS/JG territory.
Andre Alonte Willis, also known as “Boogie,” faces a mandatory minimum sentence of 10 years in prison. Willis’ sentencing is scheduled for February 6, 2024. Broadus Jamal Daniels, also known as “Wardy” and “JG Wardy” faces a mandatory minimum sentence of 65 years in prison. Daniels’ sentencing is scheduled for February 14, 2024.
This conviction is part of an ongoing joint investigation which has now resulted in 22 convictions and the seizure of two vehicles, 35 firearms, four machine guns, more than 1,000 rounds of ammunition, approximately 60 pounds of marijuana, 41 grams of cocaine base, dozens of oxycodone pills, and approximately $500,000 in cash.
The case was investigated by the FBI’s Washington Field Office, the ATF’s Washington Field Division, and the Metropolitan Police Department. It was prosecuted by Assistant U.S. Attorneys James B. Nelson and Justin F. Song and Paralegal Specialist Melissa Macechko.
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Saint Paul Felon Sentenced to Prison for Illegal Possession of a Machine GunRead the Press Release
MINNEAPOLIS – A Saint Paul man has been sentenced to 72 months in prison followed by three years of supervised release for illegal possession of a machine gun, announced U.S. Attorney Andrew M. Luger.
According to court documents, on January 26, 2023, Mohamed Takieu Khan, Jr., 26, was driving a black 2013 Lincoln MKX in Saint Paul when officers with the Saint Paul Police Department attempted to conduct a traffic stop for speeding. Khan failed to stop, and instead accelerated through a stop sign, lost control of his vehicle, and struck another vehicle. Khan and his passenger got out of the vehicle and fled from the officers on foot. While fleeing, Khan tossed a .40 caliber Glock model 23 pistol that was equipped with a “switch” or “auto sear,” which enables the firearm to be fired as a fully automatic weapon with a single pull of the trigger. Officers searched Khan’s abandoned vehicle and found a second handgun equipped with a switch and more than 800 M-30 fentanyl pills.
On May 14, 2024, Khan pleaded guilty to unlawful possession of a machine gun. He was sentenced today in U.S. District Court by Judge Katherine M. Menendez.
This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Saint Paul Police Department.
Assistant U.S. Attorney Evan B. Gilead prosecuted the case.
SDTX initiates whistleblower non-prosecution pilot programRead the Press Release
HOUSTON – The U.S. Attorney’s Office for the Southern District of Texas (SDTX) will immediately begin implementation of a pilot program to encourage early voluntary disclosure of previously unknown criminal conduct and to help identify and prosecute individuals most culpable for that misconduct, announced U.S. Attorney Alamdar S. Hamdani.
In exchange for self-disclosure and cooperation against others involved in the criminal conduct, SDTX will enter into a non-prosecution agreement where certain specified conditions are met.
“Rooting out fraud and corruption in the government and private sectors has always been a priority of the SDTX whether that corruption exists in the Rio Grande Valley’s smallest towns or in and around Houston, the nation’s fourth largest city,” said Hamdani. “Those cases often rely on whistleblowers, individuals who witness wrongdoing and want to do the right thing by coming forward to law enforcement. This office’s new policy is my way of encouraging those whistleblowers to come forward to assist our mission to expose and eliminate corruption throughout the district.”
The hope is to incentivize individuals and their counsel to provide actionable and timely information by providing clarity on the requirements and benefits of self-disclosure. This could potentially help the office bring more misconduct to light and better protect the communities within the SDTX.
Reporting parties can be an individual or business, but must disclose criminal conduct of public or private companies, exchanges, financial institutions, investment advisers or investment finds. The disclosed criminal conduct may involve fraud, corporate control failures, affects on market integrity, criminal conduct involving state or local bribery and fraud relating to federal, state or local funds.
To be considered, reporting parties and their related information must meet certain key sets of conditions:
- The misconduct is not already public and known to the office, any Department of Justice component or federal law enforcement agency.
- The individual or organization discloses the criminal conduct voluntarily (e.g., not in response to a government inquiry, reporting obligation, existing agreement to report or prior to imminent threat of disclosure.)
- The individual or organization can provide substantial assistance and is prepared to fully cooperate in the investigation and prosecution of the disclosed conduct and recovery of any related criminal proceeds.
- The individual or organization truthfully and completely discloses all criminal conduct they know of or in which they have participated.
- The individual must not be a federal, state or local elected or appointed official; an official or agent of a federal investigative or law enforcement agency; expected to become of major public interest; the highest-ranking person within the organization or the person who exercises primary control over the organization’s operations where the misconduct occurred.
- The individual did not lead or originate the alleged misconduct or illegal activity.
- The individual has not engaged in any criminal conduct involving the use of force or violence; any sex offense involving fraud, force or coercion of a minor; any offense involving terrorism or national security and does not have a conviction of any kind for conduct involving fraud or dishonesty.
- The individual must agree to forfeit any proceeds from the disclosed criminal wrongdoing and pay restitution to victims consistent with their role in the offense.
This policy does not apply to individuals or organizations providing information regarding violations of the Foreign Corrupt Practices Act, violations of federal or state campaign financing laws, federal patronage crimes, corruption of the electoral process, bribery of federal officials, federal tax offenses or federal environmental crimes.
The SDTX has sole discretion to determine whether an individual has satisfied each of the conditions necessary to consider a non-prosecution agreement.
Individuals or businesses who do not meet the above requirements may still be considered for a non-prosecution agreement on a discretionary basis in exchange for their cooperation after consideration of multiple factors.
Those who qualify for the Whistleblower Pilot Program are encouraged to take advantage of the opportunity to come clean, cooperate throughout the legal process and get on the right side of the law.
Individuals (including through counsel) seeking to be considered for the SDTX Whistleblower Pilot Program may use this WBP intake form to begin the process of disclosing criminal misconduct. Send completed document to the office at USATXS.WBP@usdoj.gov.
This policy does not apply to any other U.S. Attorney’s Office or any other litigating component of the Justice Department. It also does not supersede any provision of the Justice Manual.
Russian Citizen Arrested for Illegally Exporting U.S.-Sourced Microelectronics with Military Applications to RussiaRead the Press Release
WASHINGTON—Denis Postovoy, 44, a Russian citizen living in Sarasota, Florida, was arrested this morning in Sarasota, Florida on an indictment charging him with conspiring to violate the Export Control Reform Act, to commit smuggling, to commit money laundering, and to defraud the United States.
The indictment was announced by U.S. Attorney Matthew M. Graves, Assistant Attorney General Matt Olsen with the Department of Justice’s National Security Division, and Homeland Security Investigations (“HSI”) Special Agent in Charge Ryan L. Spradlin of HSI’s Denver Field Office.
The indictment alleges that, beginning in at least February 2022, following Russia’s full-scale invasion of Ukraine, Postovoy procured and illicitly exported from the United States to Russia microelectronic components with military applications. The exported microelectronics can be used in unmanned aerial vehicles (UAVs or drones). Through a web of companies that he owns or operates in Russia, Hong Kong, and elsewhere, Postovoy and individuals in his network purchased the microelectronics from U.S.-based distributors and exported them to Russia without the required licenses from the U.S. Department of Commerce.
“According to the indictment, this defendant illegally exported dual-use technology to Russia that could bolster its capabilities to wage its unprovoked war against Ukraine,” said U.S. Attorney Graves. “As alleged, he lied about the final destination for the technology he was shipping and used intermediary destinations to mask this illegal activity. Fortunately, our skilled law enforcement partners at HSI and our dedicated attorneys unraveled the plot.”
“This defendant attempted to procure and illegally export dual-use microelectronics with military applications, and ultimately ship them back to Russia,” said Special Agent in Charge Spradlin, of HSI Denver. “Mr. Postovoy will now face justice for his duplicity. Our stellar agents will continue to investigate these crimes alongside our strike force partners and the Department of Justice and hold accountable these criminals who threaten the security of the United States.”
As alleged, Postovoy’s companies included WowCube HK Limited, JST Group Hong Kong, Jove HK Limited, all based in Hong Kong, and the Vector Group in Russia. Postovoy repeatedly concealed and misstated the true end users and end destinations of the microelectronics by submitting false information on documents. He transshipped items that were ultimately destined for Russia through intermediary destinations, including Hong Kong, Switzerland, and elsewhere, and received payments in U.S. dollars from foreign bank accounts. His companies transferred funds for the purchase and shipment of the goods through bank accounts in Hong Kong, Russia, and elsewhere to bank accounts in the United States, including bank accounts maintained by the U.S. suppliers of microelectronics and other sensitive technologies.
This case is being investigated by HSI Colorado Springs. It is being prosecuted by Assistant U.S. Attorney Stuart D. Allen of the U.S. Attorney’s Office for the District of Columbia and Trial Attorney Sean R. Heiden of the National Security Division’s Counterintelligence and Export Control Section.
Today’s actions were coordinated through the Justice Department’s Task Force KleptoCapture and the Justice and Commerce Departments’ Disruptive Technology Strike Force. Task Force KleptoCapture is an interagency law enforcement task force dedicated to enforcing the sweeping sanctions, export restrictions and economic countermeasures that the United States has imposed, along with its allies and partners, in response to Russia’s unprovoked military invasion of Ukraine. The Disruptive Technology Strike Force is an interagency law enforcement strike force co-led by the Departments of Justice and Commerce designed to target illicit actors, protect supply chains and prevent critical technology from being acquired by authoritarian regimes and hostile nation states.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Recidivist Drug Trafficker from Duquesne Convicted at Trial for Firearms Offenses Following Earlier Guilty Plea to Related Fentanyl Trafficking CrimesRead the Press Release
PITTSBURGH, Pa. - After deliberating for three hours, a federal jury on September 12, 2024, found Courtney Washington of Duquesne, Pennsylvania, guilty of two counts of violating federal firearms laws, United States Attorney Eric G. Olshan announced today.
Washington, 30, was tried before United States District Judge Christy Criswell Wiegand in Pittsburgh.
According to evidence presented at trial, Washington sold fentanyl to two confidential informants on April 3, 2023, during an ongoing drug trafficking investigation. Two weeks later, on April 17, 2023, law enforcement officers investigating the earlier fentanyl distribution executed a search warrant at Washington’s home and seized about $45,000 worth of fentanyl from a washing machine, where Washington unsuccessfully had attempted to destroy the drugs, along with a loaded and stolen .45 Glock handgun that Washington attempted to conceal in the ceiling rafters about six feet from the washing machine. Testimony established that the Glock was the same firearm that the confidential informants had observed in the console of Washington’s car during the April 3, 2023, transaction. Washington previously had been convicted of a federal drug trafficking felony and is therefore prohibited under federal law from possessing a firearm or ammunition.
Prior to trial, Washington pleaded guilty to distribution of fentanyl for the April 3, 2023, conduct, as well as possession with intent to distribute the fentanyl found in the washing machine on April 17, 2023. In addition to finding Washington guilty of possessing a firearm as a convicted felon, the jury concluded that Washington possessed the firearm on April 17, 2023, in furtherance of his drug trafficking activities, another violation of federal law. Recordings of prison calls also revealed that Washington attempted to extort and intimidate the confidential informants following his arrest.
Judge Wiegand scheduled sentencing for January 16, 2025. The law provides for a total sentence of not less than five years and up to life in prison, a fine of up to $1,250,000, or both. Under the federal Sentencing Guidelines, the actual sentence imposed is based on the seriousness of the offenses and the prior criminal history of the defendant. As Washington was on federal supervised release for his prior drug trafficking crime at the time he committed these crimes, he faces another sentence for violating the conditions of his supervised release.
Assistant United States Attorneys Brendan T. Conway and V. Joseph Sonson are prosecuting the case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation that led to the prosecution of Washington, with assistance from the Allegheny County Police Department and Duquesne Police Department.
Providence Man Sentenced to Federal Prison for Possessing a Pound of FentanylRead the Press Release
PROVIDENCE, RI – A Providence man who admitted to a federal judge that he was in possession of more than a pound of fentanyl when he was arrested, only a year after completing a term of incarceration in federal prison for trafficking fentanyl, and who was still on federal supervised release at the time of his most recent arrest, has been sentenced to six years in prison, announced United States Attorney Zachary A. Cunha.
Felix Santos, 28, pleaded guilty on May 30, 2024, to a charge of possession with intent to distribute 40 grams or more of fentanyl. He was sentenced by U.S. District Court Chief Judge John J. McConnell, Jr., on September 12, 2024, to 72 months of incarceration to be followed by four years of federal supervised release. Additionally, at the government’s request, the court ordered Santos to forfeit $3,619 in cash and assorted jewelry that he obtained as a result of his drug trafficking activities and that were seized from him at the time of his arrest.
As reflected in court documents, in May 2021, just one year after Santos was released from prison, Providence Police developed information that Santos was again involved in narcotics trafficking. Between May and June of 2021, three controlled purchases of fentanyl were conducted outside of Santos’ residence as part of a DEA investigation. On other occasions, Santos was surveilled by law enforcement engaging in behavior consistent with street-level narcotics distribution while outside his residence.
On June 25, 2021, members of the Providence Police Narcotics Bureau executed a court-authorized search of Santos’ residence and seized 457 grams of fentanyl, 50 grams of crack cocaine, and various materials and items used in the packaging and distribution of narcotics.
The case was prosecuted by Assistant United States Attorney G. Michael Seaman.
The matter was investigated by the Providence Police Narcotics Bureau and the Rhode Island DEA Drug Task Force.
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Pittsburgh Resident Pleads Guilty to Bankruptcy, Mail Fraud Charges Related to East Carson Street Property Destroyed by FireRead the Press Release
PITTSBURGH, Pa. - A resident of Pittsburgh, Pennsylvania, pleaded guilty in federal court to charges of bankruptcy fraud and mail fraud, United States Attorney Eric G. Olshan announced today.
Prasad Margabandhu, 48, pleaded guilty to two counts before United States District Judge Christy Criswell Wiegand.
In connection with the guilty plea to the bankruptcy fraud charge, the Court was advised that, from March 2019 to June 2022, Margabandhu engaged in a scheme to defraud the bankruptcy court by filing multiple bankruptcy petitions in the names of companies he controlled called “RSP Pittsburgh” and “Shane Tracy Enterprises” solely to delay efforts by creditors such as the mortgage holder and taxing bodies to execute on judgments against a property at 1925 East Carson Street in Pittsburgh.
With respect to the guilty plea to the charge of mail fraud, Margabandhu admitted that his insurance claim relating to a June 2022 fire that destroyed the 1925 East Carson Street property was fraudulent. In particular, Margabandhu admitted that he had made several materially false statements to the company that insured the property.
Judge Weigand scheduled sentencing for January 14, 2025. The law provides for a total sentence of up to 25 years in prison, a fine of up to $500,000, or both. Under the federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorneys Gregory C. Melucci and Shaun E. Sweeney are prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives; Internal Revenue Service; Federal Bureau of Investigation, and Office of the United States Trustee conducted the investigation that led to the prosecution of Margabandhu.
Pinellas County Convicted Child Sex Offender Indicted for Attempting to Entice A Minor to Engage in Sexual ActivityRead the Press Release
Jacksonville, Florida – United States Attorney Roger B. Handberg announces the return of an indictment charging Joshua Andrew Finley (46, St. Petersburg) with using the internet to attempt to entice a minor child to engage in sexual activity. If convicted, Finley faces a minimum mandatory penalty of 10 years, up to life, in federal prison and a potential life term of supervised release. Finley is a convicted child sex offender, having previously been convicted in Wisconsin (2009) of interstate travel to engage in illicit sexual conduct with a minor. Finley is currently detained pending his trial scheduled for December 2024.
This case was investigated by the Federal Bureau of Investigation, the St. Petersburg Police Department, the Pinellas County Sheriff’s Office, and the Lee County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue child victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Ohio Man Sentenced for Making False Statements to Purchase Firearms and Unlawful Sale/Transfer of Firearms to JuvenilesRead the Press Release
Tampa, Florida – United States District Judge Steven D. Merryday has sentenced Gabriel Gladman (23, Akron, Ohio) to four years in federal prison for making false and fictitious statements to a federally licensed firearms dealer with the intent to purchase firearms, and unlawful sale/transfer of firearms to juveniles. Gladman was also ordered to forfeit the following: a Smith & Wesson (SD40) semi-automatic firearm, a Taurus G2 semi-automatic firearm, a Glock 26 semi-automatic firearm, a FMK 9C1 semi-automatic firearm, 2 - Taurus G3 semi-automatic firearms, and 2 - Tara TM-9X semi-automatic firearms which are traceable proceeds of the offense.
According to court documents, on eight separate occasions between November 2022 and June 2023, Gladman provided false information to federally licensed firearm dealers in Tampa with the intent to purchase eight semi-automatic firearms. On six separate dates, Gladman sold/transferred some of those firearms to juveniles under the age of 18. It was determined that some of those firearms were used by the juveniles during violent crimes in Tampa. At the time of Gladman’s arrest in Ohio, he was found in possession of two additional firearms.
This case was investigated by the Tampa Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorney Maria Guzman. Assistant United States Attorney Suzanne Nebesky will handle the forfeiture.
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.
Multiple defendants prosecuted on federal firearms, drug chargesRead the Press Release
SAVANNAH, GA: Newly returned indictments in the Southern District of Georgia include felony charges for illegal firearms possession and drug distribution, while additional defendants have been sentenced to federal prison or await further proceedings after pleading guilty to federal gun charges.
“As illegally possessed firearms proliferate in our community, our office continues to hold accountable those who threaten the safety of our neighborhoods” said Jill E. Steinberg, U.S. Attorney for the Southern District of Georgia. “We commend the efforts of our local, state, and federal law enforcement partners in investigating these criminal activities.”
The cases are prosecuted as part of Project Safe Neighborhoods in collaboration with federal, state, and local law enforcement agencies, including the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the FBI, to reduce violent crime with measures that include targeting convicted felons who illegally possess guns.
Those indicted in September include:
- Daniel Blount Cates, 50, of Waynesboro, Ga., charged with Possession of a Firearm by a Convicted Felon, and two counts of Possession of an Unregistered Firearm, referring to a machine gun and a firearm equipped with a silencer. Cates, who was sentenced in federal court to probation on an illegal gambling charge in 2021, was sentenced in June to 15 months in prison after U.S. District Court Judge J. Randal Hall ruled that Cates had violated the terms of his probation by possessing firearms.
- Ray Charles Canady III, 51, of Augusta, charged with Interference with Commerce by Robbery; Possession of a Firearm in Furtherance of a Crime of Violence; and Possession of a Firearm by a Convicted Felon;
- Willie James Norton, 36, of Baxley, Ga., charged with Possession with Intent to Distribute 50 or More Grams of Methamphetamine; Possession of a Firearm in Furtherance of a Drug Trafficking Crime; and Possession of a Firearm by a Convicted Felon;
- Phillip Moore, 29, of Savannah, charged with Possession of a Firearm by a Convicted Felon;
- Scottie Eugene Bryant, 48, of Grovetown, charged with Possession of a Firearm by a Convicted Felon;
- Jack Anthony Bragg, 44, of Statesboro, Ga., charged with Possession of a Firearm by a Convicted Felon; and,
- Jacorey D. Lockett, 30, of Savannah, charged with Possession of a Firearm by a Convicted Felon.
Also previously indicted:
- Daniel Jamal Robertson, 33, of Brooklet, Ga., charged with Possession with Intent to Distribute Controlled Substances, referring to an isomer of Ephylone, also known as bath salts; Possession of a Firearm in Furtherance of a Drug Trafficking Crime; and Possession of a Firearm by a Convicted Felon;
All indicted defendants are considered innocent unless and until proven guilty.
Defendants recently adjudicated on federal firearms charges include:
- Arthur Eugene Cannon, 41, of Savannah, was sentenced to 120 months in prison and fined $1,000 after pleading guilty to Possession of a Stolen Firearm. Savannah Chatham Counter Narcotics Team investigators determined that Cannon illegally possessed a stolen pistol discovered during a drug trafficking investigation. A co-defendant, Thomas Allen Gordon, 56, of Savannah, was sentenced to 70 months in prison and fined $1,500 after pleading guilty to Possession of Methamphetamine and Fentanyl with Intent to Distribute.
- Daquan Minor, 32, of Savannah, was sentenced to 120 months in prison after pleading guilty to Possession of a Stolen Firearm. Savannah police officers found a stolen pistol in Minor’s vehicle during a traffic stop. Minor previously was convicted of felony offenses including illegal gun possession and drug trafficking.
- Marqus Jamal Flanders, 38, of Brunswick, sentenced to 112 months in prison after pleading guilty to Possession of a Firearm by a Convicted Felon. In February 2023, Glynn County police found a pistol in Flanders’ possession after an attempted traffic stop led to a motorcycle and foot chase. Flanders was on probation on state felony charges at the time of his arrest.
- Daveon Daniels, 25, of Grovetown, Ga., was sentenced to 46 months in prison and fined $1,500 after pleading guilty to Illegal Possession of a Machine Gun. Columbia County sheriff’s deputies were investigating a homicide when they determined that Daniels possessed a firearm, equipped with a “Glock switch” to convert it to fully automatic fire.
- Zanuck Lorenzo Berry, 43, of Martinez, Ga., was sentenced to 87 months in prison and fined $1,500 after pleading guilty to Possession of a Firearm by a Convicted Felon. Drug Enforcement Administration agents searched Berry’s home in January 2023 as part of a drug trafficking investigation and found an assault-style rifle, two semiautomatic “ghost gun” pistols, a third handgun, and a shotgun.
- Jamario D. Owens, 24, of Savannah, was sentenced to 49 months in prison after pleading guilty to Possession of a Firearm by a Convicted Felon. Savannah police officers found Owens in possession of a handgun while investigating a reported disturbance.
- Phillip Smith, 49, of Augusta, was sentenced to 156 months in prison and fined $2,500, and Brian Hilliard, 40, of Augusta, was sentenced to 108 months in prison and fined $1,500, after both pled guilty to Conspiracy to Possess with Intent to Distribute and to Distribute Methamphetamine, and Possession of a Firearm by a Convicted Felon, while Glen Taylor, 45, of Beech Island, S.C., was sentenced to 37 months in prison and fined $1,500 and Joshua Wasden, 36, of Thomson, Ga., was sentenced to 120 months in prison and fined $2,000 after both pled guilty to the conspiracy charge. Five co-defendants, including Edward Jake Walters, 29, of Grovetown; Dustin Bayles, 36, of Thomson, Ga.; Linda Campbell, 53, of Augusta; Gary Holcomb, 59, of Martinez; and Destiny Poole, 23, of Grovetown, await sentencing after pleading guilty to the drug conspiracy charge. All were charged in USA v. Walters et al., an indictment alleging an Augusta-area drug trafficking conspiracy. A tenth defendant, Donnie Skillman, 46, of Augusta, awaits further proceedings and is considered innocent unless and until proven guilty.
- Unique Haynes, 26, of Jacksonville, Fla., was sentenced to 120 months in prison after pleading guilty to Conspiracy to Possess with Intent to Distribute and to Distribute Methamphetamine, Cocaine and Fentanyl, and Possession of a Firearm by a Convicted Felon. A co-defendant, Eric Massey, 29, also of Jacksonville, was sentenced to 48 months in prison after pleading guilty to Illegal Use of a Communication Facility. Haynes and Massey were charged in Augusta following an investigation by the Drug Enforcement Administration and the Richmond County Sheriff’s Office, with assistance from the Georgia State Patrol.
- Benjamin Priester, 56, of Pooler, Ga., was sentenced to 92 months in prison after pleading guilty to Possession of a Stolen Firearm. Savannah police officers found a pistol in Priester’s possession during a traffic stop and later determined Priester knew the gun had been stolen.
- Robert Antonio Green, 26, of Savannah, was sentenced to 60 months in prison and fined $1,500 after pleading guilty to Possession of a Firearm by a Convicted Felon. A probation officer from the Georgia Department of Community Supervision found a handgun in Green’s possession during a meeting with Green.
- Michael Jerome Germany, 50, of Grovetown, Ga., was sentenced to 37 months in prison and fined $1,000 after pleading guilty to Possession of a Firearm by a Convicted Felon. Grovetown police officers found a pistol in Germany’s vehicle during a traffic stop.
- Jarrett Lamar Knight, 45, of Savannah, was sentenced 15 months in prison after pleading guilty to Possession of a Firearm by a Convicted Felon. As described in the plea agreement, Knight was a convicted felon when he sold a shotgun to a confidential informant during an ATF investigation.
- Thomas J. Fazio II, 41, of Grovetown, Ga, was sentenced to five years’ probation and fined $2,500 after pleading guilty to Possession of an Unregistered Firearm. In May 2023, Homeland Security Investigations and Customs and Border Protection intercepted suspected firearms silencers being shipped to Fazio, a U.S. Army Staff Sergeant. During a search of Fazio’s residence, investigators found an unregistered firearm silencer.
- David Kreiss, 49, of Twin City, Ga., awaits sentencing after pleading guilty to Possession of Firearms by a Convicted Felon. Twin City police found Kreiss in possession of a rifle and four shotguns while investigating a domestic disturbance.
- Andrey Denorris Blockett, 37, of Augusta, awaits sentencing after pleading guilty to Possession of a Firearm by a Convicted Felon. Georgia State Patrol troopers found Blockett in possession of a pistol with a loaded high-capacity magazine after Blockett fled on an off-road vehicle from a vehicle license check.
- Lial Stephens, 28, of Pooler, Ga., awaits sentencing after pleading guilty to two counts of Interference with Commerce by Robbery. Stephens pointed a pistol at a Garden City, Ga., convenience store clerk during robberies in September and November 2023.
- Richard Bruce Salyer Jr., 49, of Forsyth, Ga., awaits sentencing after pleading guilty to Possession of a Firearm by a Convicted Felon. Chatham County police officers found a pistol in Salyer’s waistband while investigating a report of a stolen vehicle in November 2023. Salyer has two prior convictions for illegally possessing firearms, and at the time of his arrest was an escapee from the Jefferson County, Ga., Correctional Institute.
- Anthony Orlando Jones, 34, of Augusta, awaits sentencing after pleading guilty to Possession of a Firearm by a Convicted Felon. Richmond County deputies and the U.S. Marshals found Jones in possession of a semiautomatic pistol in November 2023 while serving him with an arrest warrant on a state felony charge.
- Barry Christopher Carpenter, 43, of Gainesville, Ga., awaits sentencing after pleading guilty to Possession of a Firearm by a Convicted Felon. Carpenter was arrested on state charges in Columbia County during a burglary investigation.
- Eddie Lee Tolbert, 39, of Augusta, awaits sentencing after pleading guilty to Possession of a Firearm by a Convicted Felon. Grovetown police found a pistol in Tolbert’s possession during a traffic stop.
- Deleon Alexander Jackson, 23, of Augusta, awaits sentencing after pleading guilty to Possession of a Firearm by a Convicted Felon. Richmond County deputies found Jackson in possession of a rifle while investigating a reported disturbance at an Augusta store.
The cases are being prosecuted for the United States by the Southern District of Georgia U.S. Attorney’s Office.
Under federal law, it is illegal for an individual to possess a firearm if he or she falls into one of nine prohibited categories including being a felon; illegal alien; or unlawful user of a controlled substance. Further, it is unlawful to possess a firearm in furtherance of a drug trafficking offense or violent crime. It is also illegal to purchase – or even to attempt to purchase – firearms if the buyer is a prohibited person or illegally purchasing a firearm on behalf of others. Lying on ATF Form 4473, which is used to lawfully purchase a firearm, also is a federal offense.
For more information from the ATF on the lawful purchasing of firearms, please see: https://www.atf.gov/qa-category/atfw-form-4473
Mother Sentenced for Illegal Possession of A Gun in Case Related to the Accidental Discharge Death of Her Two-Year-Old ChildRead the Press Release
GRAND RAPIDS, MICHIGAN — U.S. Attorney for the Western District of Michigan Mark Totten today announced that Emma Huver, 26, of Lansing, was sentenced to 60 months in federal prison for being a felon in possession of a firearm. Huver previously pleaded guilty to possessing a purple 9-millimeter Smith & Wesson semiautomatic pistol in her car on October 24, 2023, when her two-year-old son suffered a gunshot wound and later died. She had previously been convicted of a felony drug offense in 2020.
“Today’s sentencing brings us closer to securing a measure of justice for this senseless loss of life,” said U.S. Attorney Mark Totten. “The tragic death of this two-year-old boy, due to the accidental discharge of a gun that wasn’t properly stored, could have been prevented. We must keep guns out of the hands of those who cannot legally possess them and do everything we can in our fight against the gun violence epidemic that is now the number one cause of death for our youngest, ages 0-19.”
Two other Lansing residents are also charged in the indictment. Avis Coward, 44, pleaded guilty to possessing the purple gun and another pistol. Gina Schieberl, 27, pleaded guilty to tampering with evidence. Coward is scheduled to be sentenced on October 2 and Schieberl is scheduled to be sentenced on October 21.
As alleged, on October 24, 2023, Coward got out of a car at a Lansing gas station and went inside, leaving a two-year-old child and the child’s mother, Huver, in the car. Surveillance video showed that a minute later a bullet hole appeared in the car window. Huver got out of the car holding her child, who had blood on his face from a gunshot wound. As she did so, Coward’s gun fell out of the car. Huver handed the child to Coward, who then passed the child to a third person who took the victim into the gas station and attempted to control the bleeding until medical personnel arrived. Coward returned to the car, picked up the gun off the ground, and put it back in the car. The surveillance video also showed Coward use his hand to break out the front passenger window, which had the bullet hole. Coward then drove away. The child later died from his injuries.
Police later found the car, which was found burned-out and abandoned in a field in Lansing, and a .45 caliber Springfield Armory semiautomatic pistol, the barrel of which was found disassembled and hidden in the wall of a house in Lansing.
Gun violence is an acute problem across the United States. According to the Centers for Disease Control and Prevention, the U.S. firearm homicide rate in 2021 was the highest documented since 1993. While the numbers have slightly declined since 2021, they remain high.
Resources and information on the safe storage of firearms can be found by reviewing the U.S. Department of Justice Safe Storage of Firearms guide, Centers for Disease Control and Prevention fact sheet, and the Bureau of Alcohol, Tobacco, Firearms and Explosives pamphlet. Anyone who possesses a gun must follow all local, state, and federal laws.
This case was investigated by the Lansing Police Department, Michigan State Police, and Bureau of Alcohol, Tobacco, Firearms, and Explosives. It is part of Project Safe Neighborhoods (PSN), a program bringing together federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.
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Morris County Man Sentenced to Seven Years in Prison for Distribution and Possession of Child PornographyRead the Press Release
NEWARK, N.J. – A Morris County, New Jersey, man was sentenced today to 84 months in prison for possessing and distributing images of child sexual abuse, U.S. Attorney Philip R. Sellinger announced.
Anselmo Girimonte, 53, of Wharton, New Jersey, previously pleaded guilty before U.S. District Judge Julien Xavier Neals to an indictment charging him with one count of possession of child pornography and one count of distribution of child pornography. Judge Neals imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
From Dec. 27, 2021, through Jan. 17, 2022, Girimonte distributed material containing images and video files of child sexual abuse, via a publicly available online peer-to-peer (P2P) file-sharing program. Law enforcement used undercover online sessions to access the P2P program and during these sessions a user shared multiple video files of adults sexually abusing prepubescent children from an internet protocol address traced to Girimonte’s residence. During a March 2, 2022, search of Girimonte’s residence, law enforcement found over 100 images and videos depicting child sexual abuse, including images of prepubescent children being sexually abused, on Girimonte’s cell phone.
In addition to the prison term, Judge Neals sentenced Girimonte to 10 years of supervised release and ordered him to pay $68,000 in restitution to the victims.
U.S. Attorney Sellinger credited special agents of Homeland Security Investigations Newark, under the direction of Acting Special Agent in Charge William S. Walker, with the investigation leading to the sentencing. He also thanked the Morris County Prosecutor’s Office, the Rockaway Township Police Department, and the U.S. Postal Inspection Service.
The government is represented by Assistant U.S. Attorney Chelsea D. Coleman of the Opioid Abuse Prevention and Enforcement Unit in Newark.