title: Carrollton Businessman Sentenced for Failing to Pay Over Payroll Taxes

component: USAO - Georgia, Northern

body_text: NEWNAN, Ga. - Barry Lee White has been sentenced to federal prison for willful failure to pay more than $2.4 million in payroll taxes. “Payroll taxes fund important social insurance programs, including Social Security and Medicare,” said U.S. Attorney Ryan K. Buchanan. “White refused to pay payroll taxes after withholding those funds from his employees’ paychecks for years – stealing from his employees and United States taxpayers. Employers who fail to comply with their legal obligations will be held accountable.” “Employment tax evasion is stealing from the government and the American taxpayer,” said Demetrius Hardeman, Special Agent in Charge, IRS Criminal Investigation, Atlanta Field Office. “Business owners are entrusted to collect and turn over IRS withholding taxes; not doing so may affect employees’ future social security and Medicare benefits. Investigating employment tax fraud is very important to IRS Criminal Investigation. Our special agents will work hard to ensure those who engage in this criminal activity are held accountable.” According to U.S. Attorney Buchanan, the charges and other information presented in court: Between 2012 and 2019, Barry Lee White owned and operated, at different times, two construction maintenance and electrical companies: I-Barr Construction, Inc. and T-Line Construction, LLC. As an employer, White’s companies were required to withhold from employees’ gross pay Federal Insurance Contributions Act (FICA) taxes, which represent Social Security and Medicare taxes, and federal income taxes. Collectively, these withheld taxes are referred to as “payroll taxes.” As the sole operator of the companies, White had the responsibility to collect, truthfully account for, and pay the IRS the payroll taxes. From at least 2015 to 2018, White withheld over $1.8 million in payroll taxes from his employees but failed to pay the taxes to the IRS. In addition, White was required to pay a certain portion of Social Security and federal unemployment tax for the companies; however, he failed to pay more than $600,000 for the employer’s portion of the payroll taxes. Barry Lee White, 59, of Carrollton, Georgia, was sentenced to one year, 10 months in prison to be followed by three years of supervised release. He was also ordered to pay restitution in the amount of $2,499,473.07. White was convicted of these charges on May 7, 2024, after he pleaded guilty. This case was investigated by the Internal Revenue Service Criminal Investigation. Assistant U.S. Attorneys Angela Adams and Erin N. Spritzer prosecuted the case. 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 .


title: Des Moines Man Sentenced to 35 Years in Federal Prison for Child Pornography Offenses

component: Federal Bureau of Investigation (FBI)

body_text: DES MOINES, Iowa – A Des Moines man was sentenced August 23, 2024, to 35 years in federal prison for producing and receiving child pornography. According to public court documents and information presented at sentencing, Brett Michael Bailey, 36, sexually abused a minor and created child pornography of the minor on multiple occasions, including when the minor was twelve years old. In addition, Bailey downloaded tens of thousands of videos and pictures of child pornography from the internet on multiple electronic devices belonging to Bailey. The electronic devices were seized when police executed a search warrant at Bailey’s Des Moines residence in October 2023. After completing his term of imprisonment, Bailey will be required to serve seven years of supervised release. There is no parole in the federal system. Bailey was also ordered to pay restitution totaling $145,500 to 34 different victims portrayed in the images collected by Bailey. United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. The case was investigated by the Iowa DCI’s Internet Crimes Against Children Task Force, Homeland Security Investigations, and FBI Child Exploitation Task Force. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa. This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc . For information about internet safety education, please visit www.usdoj.gov/psc and click on the resources tab.


title: Wilkes-Barre Accountant Sentenced To 30 Months In Prison For Embezzling Over $1.5 Million From Employer

component: USAO - Pennsylvania, Middle

body_text: SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Lawrence Malachefski, age 39, of Wilkes-Barre, PA, was sentenced on August 26, 2024, by United States District Court Judge Malachy E. Mannion to 30 months’ imprisonment and a three-year term of supervised release for wire fraud. According to the United States Attorney Gerard M. Karam, from approximately March 2023 to May 2023, while serving as the financial Controller of a Wilkes-Barre based Heating, Ventilation and Air Conditioning (HVAC) business, Malachefski embezzled over $1.5 million from his employer, converting the funds to his own personal use and then spending the money primarily on online sports betting websites. At his sentencing, Malachefski was also ordered to pay $1,586,557.45 in restitution to the victim-company. This case was investigated by the Federal Bureau of Investigation (FBI) – Philadelphia Division and prosecuted by Assistant U.S. Attorney Jeffery St John. # # #


title: Austal USA LLC Agrees to Settle False Claims Act Allegations Involving Navy Ships

component: Civil Division

body_text: Austal USA LLC (Austal), a Mobile, Alabama, based company, has agreed to pay $811,259 to resolve allegations that it violated the False Claims Act by knowingly supplying valves that did not meet military specifications. Austal manufactures numerous ships for the United States, including the Independence Class Littoral Combat Ship (LCS). The United States' settlement alleges that, under a 2011 Navy contract, Austal invoiced for military grade high performance butterfly valves and triple offset butterfly valves it installed on five LCS hulls when it knew the valves had not met the testing requirements to be deemed military grade. “It is essential to the safety and operational readiness of our Navy fleet that contractors comply with applicable military specifications,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department's Civil Division. “We will continue to hold accountable those who knowingly supply equipment to the U.S. military that fails to meet contract specifications.” “We cannot and will not tolerate companies who cut corners and misrepresent the products they provide to our military,” said U.S. Attorney Todd W. Gee for the Southern District of Mississippi. “This office is committed to protecting taxpayer dollars and will pursue fraud wherever we find it.” “Supplying nonconforming parts to the Department of Defense (DoD) compromises military systems and potentially endangers the lives of U.S servicemembers,” said Special Agent in Charge Darrin K. Jones of DoD Office of Inspector General, Defense Criminal Investigative Service (DCIS), Southeast Field Office. “DCIS and our law enforcement partners are fully committed to ensure the safety of our military personnel and protecting the integrity of the DoD supply chain.” “Product substitution risks degrading warfighter capability and wastes U.S. taxpayer dollars,” said Special Agent in Charge Greg Gross of the Navy Criminal Investigative Service (NCIS) Economic Crimes Field Office. “I want to thank our investigative partners for their collaboration in working with NCIS to protect the integrity of the Department of the Navy procurement process.” DCIS, NCIS and the Defense Contract Audit Agency's Office of Investigative Support investigated the case Senior Trial Counsel Art J. Coulter of the Civil Division's Commercial Litigation Branch, Fraud Section and Assistant U.S. Attorney Deidre Lamppin Colson for the Southern District of Mississippi handled the case. The claims resolved by the settlements are allegations only. There has been no determination of liability. Settlement


title: Marion County Convicted Felon Pleads Guilty To Illegally Possessing A Firearm

component: USAO - Florida, Middle

body_text: Ocala, Florida – United States Attorney Roger B. Handberg announces that Marcus Cleaver Morgan, Jr. (24, Ocala) has pleaded guilty to possessing a firearm as a convicted felon. Morgan faces a maximum penalty of 15 years in federal prison. A sentencing date has not yet been set. According to court documents, on January 14, 2023, officers from the Ocala Police Department attempted to conduct a traffic stop on a vehicle driven by Morgan. Morgan failed to stop, and a high-speed pursuit took place. The pursuit ended when the vehicle Morgan was driving crashed into an embankment. Officers located a backpack near the open driver’s side door where Morgan had been seated. The backpack contained two Glock pistols, approximately 239 grams of marijuana, 33.5 grams of MDPV, and a scale. Testing by the FBI DNA Casework Unit confirmed Morgan’s DNA on the trigger, grip, and slide of one of firearms. At that time, Morgan had a previous state felony conviction for carrying a concealed firearm, therefore, he is prohibited from possessing firearms or ammunition under federal law. This case was investigated by the Ocala Police Department and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Sarah Janette Swartzberg. This case is part of the 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 for occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.


title: Multi-Convicted Felon Sentenced To 8 Years In Federal Prison For Illegal Possession Of A Firearm

body_text: Ocala, Florida – United States District Judge Thomas P. Barber has sentenced Jerome Junior Swopshire (40, Silver Springs) to eight years in federal prison for possession of a firearm and ammunition by a convicted felon. The court also ordered Swopshire to forfeit the firearm involved in the offense. Swopshire entered a guilty plea on July 29, 2024. According to court documents, on August 9, 2023, the United States Marshals Service (USMS) Fugitive Task Force received information that Swopshire, a wanted fugitive, was in Ocala, Florida. A USMS Task Force Officer conducted surveillance and observed Swopshire leaving a residence in Ocala. Swopshire was detained as he was getting into the driver’s seat of a rented vehicle. A search of a backpack Swopshire was wearing revealed a loaded Taurus pistol with an extended ammunition magazine. Swopshire’s backpack also contained a digital scale (coated in a powdery substance that tested positive for cocaine), a jar of marijuana, and small plastic baggies. In the center console of Swopshire’s vehicle was a hard white substance which tested positive for fentanyl and more plastic baggies. Under the driver’s seat, officers located a spent 9mm shell casing—the same caliber as the ammunition in Swopshire’s firearm. At the time, Swopshire had previous state felony convictions for robbery, child abuse, resisting an officer with violence, felony domestic battery, and possession of a controlled substance without a prescription. As a convicted felon, he is prohibited from possessing firearms or ammunition under federal law. Swopshire’s firearm with extended magazine. This case was investigated by the United States Marshals Service Fugitive Task Force, the Alachua County Sheriff’s Office, the City of Ocala Police Department, and Homeland Security Investigations. It is being prosecuted by Assistant United States Attorney Sarah Janette Swartzberg. This case is part of the 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 for occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.


title: Ocala Woman Arrested For COVID Fraud

body_text: Ocala, Florida – United States Attorney Roger B. Handberg announces the arrest of Lisa Yvette Starkes (52, Ocala) on an indictment charging her with two counts of wire fraud. If convicted, Starkes faces up to 20 years in federal prison on each count and a forfeiture order for $41,452—an amount representing the unlawful proceeds of the offense. The indictment was returned on August 6, 2024. According to court documents, between August 4, 2020, and April 12, 2021, Starkes devised a scheme to defraud the Small Business Administration (SBA) by submitting false Paycheck Protection Program (PPP) loan applications. PPP loans were one of the sources of economic relief provided for by the Coronavirus Aid, Relief and Economic Security (CARES) Act. Starkes, however, provided false representations in her PPP applications to secure the loans. The loan proceeds—$41,452—were later electronically transferred into her bank account. An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty. This case is being investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Hannah Nowalk. 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 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 Justice.gov/Coronavirus and Justice.gov/Coronavirus/CombatingFraud. 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 via the NCDF Web Complaint Form.


title: North Carolina Tax Return Preparer Indicted

component: Tax Division

body_text: A federal grand jury in Greensboro, North Carolina, returned an indictment yesterday charging a former Raleigh, North Carolina, man with 27 counts of preparing and filing false tax returns and obstructing the IRS. According to the indictment, Jerome Osuamadi Nwabueze owned and operated Total Tax Services, located in High Point, North Carolina. Between 2018 and 2022, to secure higher refunds for his clients, Nwabueze allegedly prepared and filed with the IRS false tax returns that reported wages and withholdings, business income and expenses and education expenses that were fabricated or inflated. Nwabueze also allegedly prepared and filed false tax returns for himself that reported similar false items, and omitted income he earned from preparing tax returns. These false tax returns also generated refunds for Nwabueze to which he was not entitled. The indictment further alleges that, when the IRS audited Nwabueze in 2020, he fabricated tax documents and provided them to the IRS. If convicted, Nwabueze faces a maximum penalty of three years in prison for each false tax return charge and three years in prison for the obstruction charge. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Sandra J. Hairston for the Middle District of North Carolina made the announcement. IRS Criminal Investigation is investigating the case. Trial Attorney Isaiah Boyd of the Tax Division and Assistant U.S. Attorney Ashley Waid for the Middle District of North Carolina are prosecuting the case. An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.


title: Uzbek National Sentenced For Role In Long-Running Immigration And Passport Fraud Conspiracy

body_text: Orlando, Florida – U.S. District Judge Roy B. Dalton has sentenced Dilrabo Obidova (36, Uzbekistan) for her role in a long-running immigration and passport fraud conspiracy. The Court sentenced Obidova to a time-served sentence reflecting the time Obidova was detained pending trial. The Court has also entered an order immediately deporting Obidova to Uzbekistan with no option to apply for asylum or any other immigration relief. Obidova entered a guilty plea in May 2024. Obidova’s husband, Abduvosit Razikov, was charged in the same indictment. He remains at-large. According to court documents, Razikov and Obidova conspired since at least 2007 to bring Obidova to the United States from Uzbekistan and fraudulently obtain immigration benefits for her. To this end, Obidova entered into a sham marriage with a U.S. citizen, even though she was already married to Razikov. To perpetuate the myth that she was legitimately married to a U.S. citizen, Obidova moved in with her sham husband, filed joint tax returns with him, staged photos, and even listed her sham husband on her and Razikov’s children’s birth certificates. Obidova, with Razikov’s assistance, also filed several immigration and passport applications, each time making false statements or concealing information about her sham marriage and her marriage to Razikov. After obtaining lawful permanent resident status, Obidova attempted to become a naturalized U.S. citizen. In her application for naturalization, Obidova made numerous false statements, under penalty of perjury, relating to her background, marriages, and past attempts to illegally obtain immigration benefits and status. Law enforcement officers took Obidova into custody when she traveled to Orlando for her final naturalization interview. This case was investigated by the Federal Bureau of Investigation’s Joint Terrorism Task Force, with valuable assistance from the U.S. Department of State’s Diplomatic Security Service, U.S. Customs and Border Protection, U.S. Citizenship and Immigration Services, Immigration and Customs Enforcement’s Enforcement and Removal Operations and Office of the Principal Legal Advisor, and the Orange County Sheriff’s Office. It was prosecuted by Assistant United States Attorneys Kara M. Wick and Richard Varadan.


title: CEO of Publicly Traded Company Arrested in Securities Fraud Scheme

component: Criminal Division

body_text: The chief executive officer of Minerco Inc. (stock ticker MINE) was arrested last week on charges of securities fraud related to a scheme to defraud investors in Minerco. According to court documents, between about October 2019 and June 2021, Julius Jenge, 54, allegedly defrauded investors in the publicly traded securities of Minerco by, among other things, working together with his co-schemer to take control of Minerco in late 2019; causing the issuance of one billion Minerco shares to a nominee shareholder; and causing positive press releases about Minerco to be issued to the public, at least some of which contained materially false and misleading information, in an effort to artificially increase the share price of Minerco. Beginning in or around January 2020, Minerco purported publicly to be in the business of developing, marketing, and distributing psilocybin mushrooms, also known as magic mushrooms or psychedelic mushrooms. Jenge allegedly concealed the involvement in Minerco of a co-schemer who had a criminal history and who controlled all aspects of Minerco’s operations. Among other things, Jenge allegedly failed to disclose his co-schemer’s involvement with Minerco in public filings, although he was required to do so. In addition, as part of the securities fraud scheme, and during an investor video conference, Jenge allegedly falsely stated that he had earned an MBA in marketing and a BA in accounting. Minerco’s stock price and trading volume increased during the period of the alleged scheme, as investors purchased Minerco stock during this period. Jenge was arrested on Aug. 22 at Ronald Reagan Washington National Airport, where he was booked on a flight to Tanzania. Jenge is charged with one count of securities fraud. If convicted, Jenge faces up to 20 years in prison. Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division, Inspector General Deborah Jeffrey of the U.S. Securities and Exchange Commission Office of Inspector General (SEC-OIG), and Inspector in Charge Eric Shen of the U.S. Postal Inspection Service (USPIS) Criminal Investigations Group made the announcement. The SEC-OIG and USPIS are investigating the case. Trial Attorney Kyle Crawford of the Criminal Division’s Fraud Section is prosecuting the case. If you believe you are a victim in this case, please contact the Fraud Section’s Victim Witness Unit toll-free at (888) 549-3945 or by email at victimassistance.fraud@usdoj.gov . You are also encouraged to visit our webpage for this case at www.justice.gov/criminal/criminal-vns/case/united-states-v-julius-makiri-jenge . A criminal complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.


title: U.S. Navy Shipbuilder Pleads Guilty to Financial Accounting Fraud Scheme and Obstructing a Defense Department Audit

body_text: Austal USA LLC (Austal USA), a Mobile, Alabama-based shipbuilder that constructs vessels for the U.S. Navy and U.S. Coast Guard, pleaded guilty yesterday and has agreed to pay $24 million to resolve an investigation by the Justice Department related to an accounting fraud scheme and efforts to obstruct the Defense Contract Audit Agency (DCAA) during a financial capability audit. Austal USA is a wholly owned subsidiary of Austal Limited, an Australian company that is publicly traded on the Australian Securities Exchange and was traded over-the-counter in the United States via American Depositary Receipts. The Justice Department’s criminal resolution was coordinated with the U.S. Securities and Exchange Commission (SEC). Separately, Austal USA also entered into a False Claims Act settlement with the department’s Civil Division to resolve claims that it knowingly provided non-compliant parts to the U.S. Navy. “Austal USA, a shipbuilder for the U.S. military, engaged in a years-long scheme to illegally inflate its profits on ships the company was building for the U.S. Navy, reporting false financial results to investors, lenders, and its auditors,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “The investing public, the U.S. Navy, and the Defense Contract Audit Agency relied on Austal USA to tell the truth about its financial condition and its performance on U.S. Navy contracts. Today’s guilty plea underscores the Department of Justice’s commitment to holding U.S. government contractors accountable for their criminal misconduct and ensuring that they engage honestly with the U.S. government.” “Maintaining our national security and military infrastructure cannot come at the cost of the integrity of our contracting processes,” said U.S. Attorney Sean P. Costello for the Southern District of Alabama. “Today’s actions ensure accountability and promote the rule of law in this critical arena.” According to court documents, from at least in or around 2013 through at least in or around July 2016, Austal USA and its co-conspirators conspired to mislead Austal Limited’s shareholders, independent financial statement auditors and the investing public about Austal USA’s financial condition. Specifically, Austal USA artificially suppressed an accounting metric known as an “estimate at completion” (EAC) in relation to multiple Littoral Combat Ships that Austal USA was building for the U.S. Navy. Suppressing the EACs had the effect of falsely overstating Austal USA’s profitability on those shipbuilding efforts and Austal Limited’s earnings reported in its public financial statements. Austal USA and its co-conspirators manipulated the EAC figures in part by using so-called “program challenges,” which were false plug numbers to hide growing shipbuilding costs that should have been incorporated into the company’s financial statements. Austal USA did this to maintain and increase the share price of Austal Limited’s stock. When the higher costs were eventually disclosed to the market, Austal Limited wrote down over $100 million, and the stock price was significantly negatively impacted. “Defense contractors that engage in fraud erode the public’s trust in our Armed Forces,” said Director Omar Lopez of the Naval Criminal Investigative Service (NCIS). “NCIS and our investigative partners are determined to hold those accountable whose actions erode that trust. We are committed to rooting out economic crime that negatively impacts the readiness of the Department of the Navy.” “This case is a direct result of the superb dedication of the investigative and prosecution teams,” said Director Kelly P. Mayo of the Department of Defense (DoD) Office of Inspector General, Defense Criminal Investigative Service (DCIS). “These committed professionals’ efforts send a clear message to DoD contractors of our unwavering resolve to investigate and prosecute fraud, corruption, and efforts to circumvent compliance measures that reduce our combat effectiveness.” The department reached this resolution with Austal USA based on a number of factors, including, among others, the nature and seriousness of the offense and the pervasiveness of the misconduct at the most senior levels of Austal USA. Austal USA received credit for affirmative acceptance of responsibility and limited credit for its cooperation with the department’s investigation, which included facilitating interviews with current and former employees, enabling the department to promptly produce records in a related court case, and making a timely disclosure of all relevant facts and documents pertaining to an unrelated matter. However, Austal USA’s cooperation was limited in a number of respects, including: Austal USA did not provide to the department any relevant facts relating to this conduct until two years after learning of the department’s investigation; Austal USA produced certain relevant documents after significant delay; Austal USA was delayed in responding to certain requests from the government, and often required follow-up requests from the government before responding; and Austal USA did not at all times demonstrate a commitment to full and timely cooperation. Austal USA also engaged in remedial measures, but those remedial measures were untimely and incomplete, including that Austal USA did not begin disciplining employees involved in the misconduct until more than two years after Austal USA learned of the government’s investigation and did not undertake any independent steps to make restitution to the victims of its securities fraud scheme. Austal USA has begun remediating weaknesses in internal controls that allowed the company’s misconduct to occur, but Austal USA’s remediation of its controls is still ongoing and requires additional improvements and testing. Under the terms of the plea agreement, which still must be accepted by the court, Austal USA pleaded guilty to one count of securities fraud and one count of obstruction of a federal audit. Based on application of the U.S. Sentencing Guidelines, the department determined that the appropriate criminal penalty is $73,572,680.10. However, due to Austal USA’s demonstrated inability to pay the criminal fine, Austal USA and the department agreed, consistent with the department’s inability to pay guidance, that Austal USA would pay a criminal fine of $24 million and restitution of up to $24 million for losses to Austal Limited shareholders. The department has agreed to credit all of the criminal fine and restitution against amounts Austal USA will pay to resolve an investigation by the SEC for related conduct. Austal USA has also agreed to retain an independent compliance monitor for a period of three years, and Austal USA and Austal Limited have agreed to continue to implement a compliance and ethics program at Austal USA designed to prevent and detect fraudulent conduct throughout its operations. Austal USA and Austal Limited have also agreed to continue to cooperate with the Justice Department in any ongoing or future criminal investigations relating to this conduct. In addition, Austal USA will serve three years of probation. A sentencing hearing is scheduled for Nov. 25. Three former Austal USA executives, Craig Perciavalle, Williams Adams, and Joseph Runkel, were indicted on March 30, 2023 on one count of conspiracy to commit wire fraud and wire fraud affecting a financial institution, five counts of wire fraud, and two counts of wire fraud affecting a financial institution. They await trial. NCIS and DCIS are investigating the case. The Justice Department’s Office of International Affairs and authorities in Australia, as well as DCAA’s Office of Investigative Support, provided valuable assistance in the matter. Assistant Chief Kyle Hankey and Trial Attorneys Laura Connelly and Spencer Ryan of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Christopher Bodnar for the Southern District of Alabama are prosecuting the case. If you believe you are a victim in this case, please contact the Fraud Section’s Victim Witness Unit toll-free at (888) 549-3945 or by email at victimassistance.fraud@usdoj.gov . Victims can find case updates and additional information at www.justice.gov/criminal/criminal-vns/case/austal-usa-llc . Under the terms of the plea agreement, the SEC would handle the distribution of funds to harmed investors. Investors harmed as a result of the misconduct of defendant should watch the SEC’s Harmed Investors page for further developments regarding the SEC’s distribution of funds to harmed investors. An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.


title: Grand jury indicts Elma man on multiple child pornography charges

component: USAO - New York, Western

body_text: BUFFALO, N.Y.-U.S. Attorney Trini E. Ross announced today that a federal grand jury has indicted Matthew A. Steele, 53, of Elma, NY, on charges of production, distribution, and possession of child pornography, which carry a mandatory minimum penalty of 15 years in prison and a maximum penalty of 30 years. Assistant U.S. Attorney Aaron J. Mango, who is handling the case, stated that according to the indictment, on more than one occasion between July 2008 and July 2012, Steele coerced a minor victim to engage in sexually explicit conduct for the purpose of producing a visual depiction. Steele then distributed some of the images that were produced. In addition, Steele possessed images of a prepubescent minor on a hard drive. Steele was arraigned today before U.S. Magistrate Judge Jeremiah J. McCarthy and was detained. The indictment is the result of an investigation by Homeland Security Investigations, under the direction of Special Agent-in-Charge Matthew Scarpino and the Great Falls, Montana Police Department, under the direction of Chief Jeff Newton. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty. # # # #


title: Former Federal Correction Officer Pleads Guilty to Smuggling Contraband into Metropolitan Detention Center in Brooklyn

component: USAO - New York, Eastern

body_text: Earlier today, in federal court in Brooklyn, Fabienne Osias, a former federal correction officer employed by the United States Bureau of Prisons (BOP), pleaded guilty to smuggling cell phone chargers into the Metropolitan Detention Center (MDC) in Brooklyn. The proceeding was held before United States Magistrate Judge Marcia M. Henry. When sentenced, Osias faces up to one year in prison. Osias resigned from the BOP on August 23, 2024. Breon Peace, United States Attorney for the Eastern District of New York, and Ryan T. Geach, Special Agent in Charge, Department of Justice, Office of the Inspector General, Northeast Region (DOJ-OIG) announced the arrest and guilty plea. “The defendant abused her position of trust to smuggle cell phone chargers into the Metropolitan Detention Center,” stated United States Attorney Peace. “Contraband cell phones enable federal inmates to continue committing crimes even while they are in custody at the MDC, which endangers both the jail population and the community at large. This Office will vigorously investigate and prosecute acts of public corruption at the MDC at every level.” “Contraband, including cell phones, in prisons can be dangerous weapons. The Department of Justice Office of the Inspector General is committed to bringing to justice any Correctional Officer that violates their oath and smuggles contraband into federal prison facilities,” stated DOJ-OIG Special Agent in Charge Geach. On February 28, 2023, Osias attempted to provide to an inmate of the MDC the following prohibited devices: five Universal Serial Bus (USB) charging cubes and nine USB charging cables, which are utilized by users of commercial mobile phone services. The Cell Phone Contraband Act of 2010 prohibits the possession of cell phones in federal prisons by unauthorized persons, including inmates. The government’s case is being handled by the Office’s Public Integrity Section. Assistant United States Attorney Sara K. Winik is in charge of the prosecution. The Defendant : Fabienne Osias Age: 40 Brooklyn, New York E.D.N.Y. Docket No. 24-CR-321 (MMH)


title: Two Men Sentenced to Prison for Their Roles in a $300 Million Nationwide Magazine Fraud Scheme Targeting Elders

component: USAO - Minnesota

body_text: MINNEAPOLIS – Anthony Eugene Moulder and Abdou-Rahmane Diallo have been sentenced to 120 months and 90 months in prison, respectively, for their roles in a $300 million nationwide telemarketing fraud scheme that targeted elderly and vulnerable victims, announced U.S. Attorney Andrew M. Luger. According to court documents, Moulder, 63, of Fort Myers, Florida, owned and operated several Florida-based companies involved in fraudulent magazine sales, including Gulf Coast Readers Inc., ARCO Media Inc., KMK Magazines Inc., and Leisure Time Resources Inc. As part of the scheme, from 2008 through 2020, Moulder purchased lists that contained the information of consumers—many of whom were elderly and vulnerable—who were already receiving magazines through other companies. Moulder provided the lists to his sales teams and directed them to use deceptive sales scripts to induce victims into making large or repeat payments to Moulder’s companies for unwanted magazine subscriptions. Over the course of the scheme, Moulder and his companies defrauded thousands of victims across the United States out of approximately $86,589,272. According to court documents, Diallo, 36, of Montreal, Quebec, was a co-owner and operator of Readers Services, a Canadian-based company that carried out a telemarking fraud scheme. From 2011 through 2020, Diallo and other participants of the fraud scheme targeted people who had previously been victimized by fraudulent magazine companies and were currently being billed by one or more fraudulent magazine companies on an ongoing basis—and used this vulnerability to victimize them all over again through promises of being able to cancel their unwanted magazine subscriptions. Diallo pretended to be from the “magazine cancellation department” and offered to pay off the victims’ “outstanding balance” and cancel their existing magazine subscriptions in exchange for a large, lump-sum payment. In reality, the victims did not owe Diallo or his company any money, and Diallo had no power or ability to cancel the victims’ existing magazine subscriptions or any outstanding balances. As a result of this “piggyback” fraud scheme, Diallo and other participants in the fraud scheme defrauded more than 20,000 victims—many of whom were elderly and vulnerable—across the United States out of approximately $30 million. On January 13, 2023, Moulder pleaded guilty to one count of conspiracy to commit mail fraud. On March 4, 2024, Diallo pleaded guilty to two counts of wire fraud. Both men were sentenced yesterday in U.S. District Court by Judge John R. Tunheim. This case is the result of an investigation conducted by the United States Postal Inspection Service and the FBI. Additional assistance was provided by Homeland Security Investigations, the Treasury Inspector General for Tax Administration (TIGTA), and the Minnesota Attorney General’s Office. Assistant U.S. Attorneys Harry M. Jacobs and Garrett S. Fields prosecuted the cases.


title: Farrell Man Sentenced to 19.5 Years in Prison for Fentanyl, Heroin, and Cocaine Trafficking

component: Organized Crime Drug Enforcement Task Forces

body_text: PITTSBURGH, Pa. – A resident of Farrell, Pennsylvania, has been sentenced to 235 months in federal prison on his conviction of fentanyl, heroin, and cocaine trafficking crimes, United States Attorney Eric G. Olshan announced today. United States District Judge Cathy Bissoon imposed the sentence on Quinton Pinkins, 39, also ordering Pinkins to serve six years of supervised release following his prison sentence. Pinkins previously pleaded guilty in this case to conspiring to distribute at least 400 grams of fentanyl, 100 grams of heroin, and 500 grams of cocaine between June 2020 to June 2021, and to distributing fentanyl within 1,000 feet of public playground and housing authority properties on May 27, 2021. According to information presented to the Court, Pinkins was a leader of a drug trafficking organization in Mercer County, Pennsylvania, and was responsible for the distribution of 1.2 kilograms of fentanyl, 100 grams of heroin, and 500 grams of cocaine during 2020 and 2021. The Court was further informed that, by May 2021, Pinkins was aware that his fentanyl dealing had resulted in the recent death of one of his customers and the hospitalization of another, but continued dealing the drug in Mercer County and even expanded his fentanyl dealing to Erie County. Prior to 2020, Pinkins had been convicted for heroin and cocaine trafficking and sentenced to incarceration in two separate Pennsylvania prosecutions in 2009 and 2018. Assistant United States Attorneys Craig W. Haller and Benjamin C. Dobkin prosecuted this case on behalf of the United States. United States Attorney Olshan commended the Federal Bureau of Investigation, Drug Enforcement Administration, Pennsylvania Office of Attorney General, Bureau of Alcohol, Tobacco, Firearms and Explosives, Pennsylvania State Police, Lawrence County Drug Task Force, Mercer County Drug Task Force, New Castle Police Department, Sharon Police Department, Hermitage Police Department, and Farrell Police Department for the investigation leading to the successful prosecution of Pinkins. This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.


title: California Drug Courier Is Sentenced To Prison For Attempting To Smuggle 20 Pounds Of Cocaine Through Charlotte Airport

component: USAO - North Carolina, Western

body_text: CHARLOTTE, N.C. – Carlos Fernandez, 33, of Porterville, California, was sentenced today to 87 months in prison followed by three years of supervised release for attempting to smuggle 20 pounds of cocaine through the Charlotte-Douglas International Airport, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Cardell T. Morant, Special Agent in Charge of Homeland Security Investigations (HSI) in North Carolina and South Carolina, and Chief Johnny Jennings of the Charlotte Mecklenburg Police Department (CMPD), join U.S. Attorney King in making today’s announcement. According to court documents and court proceedings, on July 27, 2021, law enforcement conducting routine interdiction operations at the Charlotte-Douglas International Airport questioned Fernandez for suspected drug trafficking, after a drug detecting dog alerted to the presence of narcotics in the defendant’s suitcase. Fernandez had just arrived in Charlotte on a flight that originated in California. Court documents show that law enforcement searched Fernandez’s suitcase and found a smaller suitcase that contained three vacuum-sealed packages, or “bricks.” A lab analysis of the bricks confirmed that the substance was cocaine, weighing approximately nine kilograms, or 20 pounds, total. A forensic analysis of Fernandez’s seized cell phones revealed messages discussing drug trafficking activity. During the investigation, law enforcement also determined that Fernandez had frequently traveled between California and Charlotte as a drug courier. On November 7, 2023, Fernandez pleaded guilty to possession with intent to distribute cocaine and aiding and abetting. He is in federal custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility. In making today’s announcement, U.S. Attorney King thanked HSI and CMPD for their investigation of the case. Assistant U.S. Attorney Shavonn Bennette of the U.S. Attorney’s Office in Charlotte prosecuted the case.


title: Bronx Resident Sentenced to 96 Months for Possessing and Intending to Distribute Over Five Kilograms of Cocaine

component: USAO - New York, Northern

body_text: SYRACUSE, NEW YORK – Jevon Henry, age 43, of the Bronx, New York, was sentenced today to 96 months in prison for possession of cocaine with the intent to distribute. United States Attorney Carla B. Freedman and Frank A. Tarentino III, Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA), New York Division, made the announcement. As part of his prior guilty plea, Henry admitted that on January 29, 2024, he travelled to Syracuse from New York City carrying approximately 5.5 kilograms of cocaine in two pieces of luggage. Henry also admitted that he intended to distribute the cocaine in Syracuse. DEA agents were able to stop Henry at a local hotel before he could distribute any of the cocaine. United States District Judge Glenn T. Suddaby also imposed a 4-year term of supervised release, to begin after Henry is released from prison. DEA investigated the case with assistance from the Syracuse Police Department, Onondaga County Sheriff’s Office, and Onondaga County District Attorney’s Office. Assistant U.S. Attorney Jessica N. Carbone prosecuted the case.


title: New York City Man Sentenced to 188 Months for Drug and Gun Offenses

body_text: SYRACUSE, NEW YORK – Rasheed Mingues, age 45, a resident of New York City, was sentenced today to 188 months in prison following his convictions for possession of controlled substances with the intent to distribute and possession of a firearm as a previously convicted felon. United States Attorney Carla B. Freedman and Frank A. Tarentino III, Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA), New York Division, made the announcement. As part of his previous guilty plea, Mingues admitted that between April and October 2022, he sold over 100 grams of methamphetamine and over 30 grams of fentanyl in the Utica, New York area, where he had been temporarily staying. He also admitted that on December 9, 2022, he possessed over 700 grams of fentanyl, over 700 grams of methamphetamine, and over 100 grams of cocaine with the intent to distribute them, and that he possessed a loaded 9mm handgun in the same bag as the drugs. Federal law prohibits Mingues from possessing the firearm as a result of his prior felony conviction. Chief United States District Judge Brenda K. Sannes also imposed a 5-year term of supervised release, to begin after Mingues is released from prison. Chief Judge Sannes also ordered Mingues to forfeit the firearm. The DEA and New York State Police investigated the case with assistance from the Utica Police Department, Syracuse Police Department, Oneida County Sheriff’s Office, and the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). Assistant U.S. Attorneys Jessica N. Carbone and Benjamin Gillis prosecuted the case.


title: Del Rio Armed Career Criminal Sentenced 15 Years In Federal Prison

body_text: Tampa, Florida – U.S. District Judge Thomas P. Barber has sentenced Kenneth Lorenzo Jackson (49, Del Rio) to 15 years in federal prison for possessing a firearm as a convicted felon. Jackson entered a guilty plea on October 18, 2023. According to the plea agreement, Jackson was indicted on September 7, 2022, in a separate federal case charging him with possessing ammunition as a convicted felon. As a result of that indictment, Jackson was the subject of a federal arrest warrant. On October 18, 2022, officers from the Tampa Police Department were patrolling the Sulphur Springs neighborhood of Tampa when they encountered Jackson walking down the street. The officers were familiar with Jackson and were aware of his outstanding arrest warrant. The officers recovered a loaded firearm (Phoenix Arms HP22A .22 caliber pistol) from the front waistband of Jackson’s pants, along with a crack cocaine rock in his pocket and a small quantity of MDMA. Jackson later admitted to possessing the firearm for protection. Jackson has multiple prior felony convictions for drug offenses and, therefore, is prohibited from possessing a firearm or ammunition under federal law. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Tampa Police Department. It was prosecuted by Assistant United States Attorneys David W.A. Chee and Shauna Hale. 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.


title: Broward Deputy Sheriff and SWAT Team Member Sentenced to Prison for COVID-19 Relief Fraud

component: USAO - Florida, Southern

body_text: MIAMI – Today, U.S. Senior District Judge sentenced Alexandra Acosta, a Broward deputy sheriff and SWAT team member, to 4 months’ imprisonment after a jury convicted her of one count of conspiracy to defraud the Small Business Administration (“SBA”), two counts of false statements to the SBA, and one count of wire fraud, all in relation to her COVID-19 relief fraud scheme. In 2021, Acosta, 38, of Tamarac, Fla., conspired with her tax preparer, Vilsaint St. Louis, to apply for and receive a Paycheck Protection Program (PPP) loan for herself as a sole proprietor doing business as a realtor based upon materially false information about her average monthly income in 2019, including two falsified IRS tax forms submitted with the application. Acosta also sought and received forgiveness of the fraudulently obtained PPP loan, which totaled over $20,000 in principal and interest. During the period of the scheme, Acosta was employed as a deputy sheriff and SWAT team member with the Broward Sheriff’s Office (BSO). In addition to the term of incarceration, Acosta was also ordered to pay a $4,000 fine. Acosta previously repaid the fraudulently obtained loan funds. St. Louis pled guilty to conspiracy to defraud the United States and was sentenced for his involvement in the scheme. U.S. Attorney for the Southern District of Florida Markenzy Lapointe; Special Agent in Charge Brian Tucker of the Eastern Region, Office of Inspector General for the Board of Governors of the Federal Reserve System and the Consumer Financial Protection Bureau (FRB-OIG); Sheriff Gregory Tony of BSO; and Special Agent in Charge Jeffrey B. Veltri of the FBI, Miami Field Office, made the announcement. FRB-OIG, BSO, and FBI Miami investigated this case. Assistant U.S. Attorneys Trevor Jones and Adam Love prosecuted it. Assistant U.S. Attorney Darren Grove is handling asset forfeiture. 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 . On September 15, 2022, the Attorney General selected the Southern District of Florida’s U.S. Attorney’s Office to head one of three national COVID-19 Fraud Strike Force Teams. The Department of Justice established the Strike Force to enhance existing efforts to combat and prevent COVID-19 related financial fraud. The Strike Force combines law enforcement and prosecutorial resources and focuses on large-scale, multistate pandemic relief fraud perpetrated by criminal organizations and transnational actors, as well as those who committed multiple instances of pandemic relief fraud. The Strike Force uses prosecutor-led and data analyst-driven teams to identify and bring to justice those who stole pandemic relief funds. Additional information regarding the Strike Force may be found at https://www.justice.gov/opa/pr/justice-department-announces-covid-19-fraud-strike-force-teams . 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 . Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov , under case number 23-cr-60170. ###


title: Indictment Charges Hartford Man with Defrauding Amazon

component: USAO - Connecticut

body_text: Vanessa Roberts Avery, United States Attorney for the District of Connecticut, and Patrick J. Freaney, Special Agent in Charge, United States Secret Service, New York Field Office, today announced that a federal grand jury in New Haven has returned a four-count indictment charging TERRELL KIMBLE, 44, of Hartford, with offenses stemming from a scheme to defraud Amazon. The indictment was returned on August 7, 2024. Kimble was arrested on August 15, 2024, pleaded not guilty to the charges, and was released on a $250,000 bond. The indictment alleges that Kimble was employed by Amazon as a Regional Fleet Specialist and an Area Manager, based in Connecticut. Amazon operated an employee reward program called Peak, administered through a procurement portal called Coupa. Coupa allowed certain employees, including Area Managers, to reward other employees on their work team for superior performance by ordering an item from Amazon for the employee at no cost. Between approximately July 2021 and December 2022, Kimble placed at least 196 Coupa orders fraudulently representing that they were to reward employee performance, but instead having the products, mainly high-end electronic goods, delivered to his mother’s residence for his own use. The electronic items included Apple iPad Pro, Apple AirPods Pro, and Apple Watch devices, and Nintendo Switches. The indictment charges Kimble with four counts of wire fraud, an offense that carries a maximum term of imprisonment of 20 years on each count. U.S. Attorney Avery stressed that an indictment is not evidence of guilt. Charges are only allegations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt. This matter is being investigated by the U.S. Secret Service and the Connecticut Financial Crimes Task Force, with the assistance of the Windsor, West Hartford, and Hartford Police Departments. The case is being prosecuted by Assistant U.S. Attorney Ray Miller.


title: Cape Girardeau Man Sentenced to 12 Years in Prison for Selling Pounds of Methamphetamine

component: USAO - Missouri, Eastern

body_text: CAPE GIRARDEAU – U.S. District Judge Stephen N. Limbaugh Jr. on Tuesday sentenced a Cape Girardeau man who sold pounds of methamphetamine to confidential informants to 12 years in prison. Dewayne K. Clark, 57, pleaded guilty in May to two counts of distribution of methamphetamine, one count of possession of methamphetamine with intent to distribute and one count of possession of fentanyl with intent to distribute. In the plea, he admitted selling two pounds of meth and 20 fentanyl pills on March 23, 2023, to confidential informants working for investigators in exchange for $8,000 cash. On April 13, 2023, Clark sold two pounds of meth and 40 fentanyl pills for $8,000 to the informants. On May 10, during a court-approved search, investigators found over one pound of meth, 978 pills containing fentanyl, 8 grams of cocaine, a stolen Glock pistol, a Smith & Wesson pistol and an AR-15-style pistol in his home. Clark admitted selling meth and said his biggest customer was a woman who bought a pound every other month, the plea agreement says. A court filing says Clark also sold one pound of meth and 20 fentanyl pills to the informants on March 10, 2023. The Southeast Missouri Drug Task Force, the Mineral Area Drug Task Force, Homeland Security Investigations, the Cape Girardeau police Department and the Missouri State Highway Patrol investigated the case. Assistant U.S. Attorney Julie Hunter prosecuted the case.


title: Old Town Man Sentenced to 3 Years for Possessing Child Sexual Abuse Material

component: USAO - Maine

body_text: BANGOR, Maine: An Old Town man was sentenced today in U.S. District Court in Bangor for possessing child pornography of a child under 12. Chief U.S. District Judge Lance E. Walker sentenced Matthew Podlaski , 40, to 36 months in prison to be followed by five years of supervised release. He was also ordered to pay $58,000 in restitution. According to court records, between October and December 2022, Podlaski searched the internet for and downloaded images of the sexual abuse of young children, storing the images on multiple devices. Investigators seized 14 devices belonging to him, including laptop computers, flash drives and external storage devices. He pleaded guilty on May 9, 2024. Homeland Security Investigations investigated the case. To report an incident involving the possession, distribution, receipt, or production of child pornography: Child sexual abuse material – in legal terms, "child pornography” – captures the sexual abuse and exploitation of children. These images document victims’ exploitation and abuse, and they suffer revictimization every time the images are shared or viewed. File a report with the National Center for Missing & Exploited Children at https://report.cybertip.org or 1-800-843-5678 . If you are in Maine and you or someone you know has been sexually assaulted or abused, you can get help by calling the free, private 24-hour statewide sexual assault helpline at 1-800-871-7741 . Project Safe Childhood: This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Department’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, visit https://www.justice.gov/usao-me/psc . ###


title: Beckley Man Pleads Guilty to Federal Drug Crime

component: USAO - West Virginia, Southern

body_text: BECKLEY, W.Va. – Evann Robinson, 39, of Beckley, pleaded guilty today to distribution of methamphetamine. According to court documents and statements made in court, on May 9, 2023, Robinson sold a controlled substance containing methamphetamine to a confidential informant in Beckley. Robinson is scheduled to be sentenced on December 19, 2024, and faces a maximum penalty of 20 years in prison, at least three years of supervised release, and a $1 million fine. United States Attorney Will Thompson made the announcement and commended the investigative work of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Beckley/Raleigh County Drug and Violent Crime Unit, which consists of officers from the West Virginia State Police, the Raleigh County Sheriff’s Department, and the Beckley Police Department. United States Magistrate Judge Omar J. Aboulhosn presided over the hearing. Assistant United States Attorney D. Keith Randolph is prosecuting the case. A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 5:23-cr-198. ###


title: Justice Department Finds Kentucky Unnecessarily Institutionalizes Louisville Residents with Serious Mental Illness in Psychiatric Hospitals

component: Civil Rights Division

body_text: The Justice Department announced today that it has reasonable cause to believe that the Commonwealth of Kentucky (Kentucky) is violating the Americans with Disabilities Act (ADA) in the Louisville/Jefferson County Metro area by unnecessarily segregating adults with serious mental illness in psychiatric hospitals, rather than providing care in integrated community settings. “People with serious mental illnesses in Louisville are caught in an unacceptable cycle of repeated psychiatric hospitalizations because they cannot access community-based care,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “We thank Kentucky for its full cooperation with our investigation, including readily providing access to staff, documents, and data. We also recognize that Kentucky has already begun taking important steps to expand access to a range of key services, including crisis response services; medication management supports; and housing and employment supports. Our goal is to work collaboratively with Kentucky so that it implements the right community-based mental health services and complies with the ADA. The Justice Department will continue to safeguard the rights of people with disabilities to ensure that they can fully participate in and contribute to their communities.” “These findings demonstrate that the Commonwealth of Kentucky fails to provide adequate community-based mental health services for individuals with serious mental illness in the Louisville Metro area,” said U.S. Attorney Michael A. Bennett for the Western District of Kentucky. “Beyond the violations, however, these findings are also about recognizing the dignity and potential of every individual who has mental illness.” The department’s investigation found Kentucky fails to provide access to community-based mental health services for many people with serious mental illness who need them, including services such as: mobile crisis response, crisis stabilization and crisis respite, case management, Assertive Community Treatment, Permanent Supportive Housing, supported employment and peer support. Instead, Kentucky relies unnecessarily on psychiatric hospitals in violation of the ADA. Each year, thousands of people are admitted to psychiatric hospitals in Louisville, and more than a thousand people experience multiple admissions to these restrictive and often traumatizing settings. With the right community-based services, many of these hospitalizations could be prevented. Kentucky can remedy this violation by expanding community-based services and implementing processes to ensure that individuals can receive those services. The lack of community-based services has also left law enforcement as routine responders to mental health crises, contributing to avoidable law enforcement encounters and incarceration. Deficiencies in Louisville Metro Government’s emergency response system also contribute to these outcomes. In a separate investigation, the Justice Department concluded, in March 2023 , that the Louisville Metro Government and Louisville Metro Police Department violated the ADA by subjecting people with behavioral health disabilities to an unnecessary police response. The department and Louisville are currently negotiating a consent decree to resolve these and other issues. Individuals with information relevant to this matter can contact the department by emailing Community.Kentucky@usdoj.gov . Additional information about the Civil Rights Division of the Justice Department is available at www.justice.gov/crt/rights-persons-disabilities and www.ada.gov . Additional information about the U.S. Attorney’s Office for the Western District of Kentucky’s Civil Rights Program is available at www.justice.gov/usao-wdky/civil-rights-program .


title: Four Admit Illegally Dealing in Firearms

component: Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF)

body_text: CAPE GIRARDEAU – Four people, including one felon, have admitted involvement in the illegal sale of firearms, including guns that were later found at crime scenes. Terry Lee Allen, 38, pleaded guilty Tuesday in U.S. District Court in Cape Girardeau to one count of unlicensed firearms dealing. On Nov. 19, 2021, Bureau of Alcohol, Tobacco, Firearms and Explosives agents identified Allen as someone who repeatedly bought multiple firearms from licensed dealers. He was the last known purchaser of seven guns linked to crime scenes in several states, his plea says. Six of the seven guns and 38 of the firearms Allen bought between June 24, 2018, and June 6, 2021, came from Bull Run Weaponry in Marble Hill, Missouri. Bull Run owner William Henry Otto did not report Allen’s suspicious conduct to the ATF. Undercover ATF special agents bought firearms from Allen twice: two Glock pistols on Dec. 2, 2021, and a Pioneer Arms Corp. “Hellpup” AK-style pistol and two Glock pistols on Dec. 14, 2021. Allen had purchased all the pistols from Otto. Otto falsely reported two of the Glocks had been sold five days after Allen sold them to the ATF agent, Allen’s plea says. During a Dec. 21, 2021, court-approved search of Allen’s home, agents found 24 firearms and $55,200 cash. Allen admitted not having a Federal Firearms License (FFL). Otto’s records show that he sold at least 199 guns to Allen, the vast majority of which Allen illegally sold to others. Allen and Otto also exchanged messages in which they discuss Allen’s illegal firearm sales. Otto, 46, pleaded guilty August 22 to aiding and abetting unlicensed firearms dealing and admitted knowingly aiding Allen in his illegal gun sales. Otto also pleaded guilty in July in a separate case and admitted allowing a convicted felon, Shawn Dennis Stockard, to use his FFL to buy firearms at an auction house in Illinois. Stockard then transported the guns to Missouri and transferred them to his wife via Otto. In early 2022, ATF agents learned of Stockard’s gun sales, and of his connection to Otto. During a court-approved search of Stockard’s home, they found 215 firearms, thousands of rounds of ammunition and numerous accessories, including high-capacity magazines. The Stockards have also pleaded guilty and await sentencing. Otto is scheduled to be sentenced November 21. Allen is scheduled to be sentenced November 26. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. Assistant U.S. Attorney Timothy Willis is prosecuting the case.


title: Prospect Man Sentenced to Over 11 Years in Federal Prison for Bank Fraud, Wire Fraud, and Money Laundering

component: USAO - Kentucky, Western

body_text: Louisville, KY –A Prospect, Kentucky, man was sentenced yesterday to 11 years and 4 months in federal prison for seven felony offenses which include conspiracy to commit bank fraud, bank fraud, wire fraud, and money laundering. The man’s wife was sentenced to three months for misprision of a felony. U.S. Attorney Michael A. Bennett of the Western District of Kentucky, Special Agent in Charge Vince Zehme of the FDIC Office of Inspector General, and Special Agent in Charge Michael E. Stansbury of the FBI Louisville Field Office made the announcement. According to court documents, Jeffrey Robert Owen, age 60, was sentenced to 11 years and 4 months in federal prison, followed by three years of supervised release, for two counts of conspiracy to commit bank fraud, two counts of bank fraud, two counts of wire fraud, and one count of money laundering. Jeffrey Owen’s wife, Kimberly Dawn Owen , age 56, was sentenced to three months in federal prison for one count of misprision of a felony. Jeffrey Owen and Kimberly Owen were convicted following a jury trial in March of 2024. Both Jeffrey Owen and Kimberly Owen were ordered to pay $587,345.07 in restitution. There is no parole in the federal system. From 2013 to 2014, Jeffrey Owen conspired with Kimberly Owen to apply for four commercial real estate loans from three financial institutions using personal financial statements that omitted liabilities and judgments. After the loans at one of the banks went into default, Jeffrey Owen and his wife took steps to block the collection through fraud, including filing a fraudulent bankruptcy petition to stay foreclosure proceedings on one of the properties. To obtain escrowed insurance proceeds, Jeffrey Owen also provided the bank with invoices from a fake business and identified an acquaintance who had been dead for several years as one of the people who worked at the business. To thwart the bank and other creditors, Jeffrey Owen and his wife filed a lawsuit on behalf of one of their entities against Jeffrey Owen’s wife in her individual capacity. Jeffrey Owen used the lawsuit to garnish his wife’s wages, so another creditor would be unable to garnish them. They then spent the money from the garnishment on their household expenses such as the mortgage on their $750,000 home and tuition for their two children at a local private school. The FDIC Office of Inspector General and the FBI investigated the case. Assistant U.S. Attorneys Amanda Gregory and Nicole Elver prosecuted the case with assistance from paralegal James Aaron Cooper. ###


title: Former Inglewood Police Officer Sentenced to 2½ Years in Federal Prison for Stealing Cocaine from Lockup Then Reselling It

component: USAO - California, Central

body_text: SANTA ANA, California – A former Inglewood Police Department (IPD) officer was sentenced today to 30 months in federal prison for stealing cocaine from IPD’s lock-up and reselling it on the street. John Abel Baca, 48, of Whittier, then a 21-year veteran of the Inglewood Police Department and its union representative, was sentenced by United States District Judge James V. Selna. Judge Selna also ordered Baca to pay a $40,000 fine and found that Baca abused his position of trust as a police officer and that his sales extended over a lengthy period beginning in 2020. Baca pleaded guilty in October 2023 to one count of distribution of cocaine. “This defendant – a veteran of the Inglewood Police Department – abused his position as a law enforcement officer to promote his drug trafficking activities,” said United States Attorney Martin Estrada. “I thank IPD for its cooperation in bringing the defendant to justice – someone who broke his oath to protect the public.” “Former officer Baca tarnished the badge and dishonored the majority of those who serve and protect our communities with integrity,” said Akil Davis, the Assistant Director in Charge of the FBI's Los Angeles Field Office. “This case serves as a reminder that no one is above the law, and corruption and criminal behavior will not be tolerated.” Baca distributed cocaine on two occasions, the first in April 2021, when he delivered cocaine to a buyer. Baca then delivered approximately one kilogram of cocaine to the same buyer during another meeting in May 2021, in exchange for $22,000 in cash. In February 2021, the buyer informed the FBI that Baca, then an active-duty IPD officer, previously had offered to sell the buyer one kilogram of cocaine, two kilograms of “White China” heroin, and an unlimited supply of black tar heroin. The buyer reported that Baca claimed to have stolen drugs and cash during routine traffic stops that Baca made as a drug task force officer with IPD. During a secretly recorded meeting in late April 2021, Baca provided a sample of the cocaine to the buyer to provide to purported buyers. During that meeting, Baca also offered to sell the buyer a kilogram of “China White” heroin for $10,000. Several days later, Baca negotiated the price for one kilogram of cocaine – $22,000 in cash – and then delivered a brick of cocaine to the buyer’s workplace on May 4, 2021. Later the same day, Baca collected $22,000 in cash from the CW’s residence. The FBI investigated this matter. The Inglewood Police Department provided its full cooperation during the investigation. Assistant United States Attorney Cassie D. Palmer of the Public Corruption and Civil Rights Section prosecuted this case.


title: Lebanon Man Sentenced to 25 Years for Child Sexual Exploitation

component: USAO - Missouri, Western

body_text: SPRINGFIELD, Mo. – A Lebanon, Mo., man was sentenced in federal court today for sexually exploiting children from several different countries. John Anthony Carpenter, 43, was sentenced by U.S. District Judge Brian C. Wimes to 25 years in federal prison without parole. The court also sentenced Carpenter to 25 years of supervised release following incarceration and ordered him to pay $15,000 in restitution to his victims. Carpenter will be required to register as a sex offender upon his release from prison and will be subject to federal and state sex offender registration requirements, which may apply throughout his life. On Jan. 30, 2024, Carpenter pleaded guilty to one count of the sexual exploitation of children. Law enforcement officers executed a search warrant at Carpenter’s residence on April 13, 2022, in relation to two separate child sexual exploitation investigations in Connecticut and New Jersey. Officers located Carpenter at his place of employment and he turned over two cell phones to investigators. Carpenter admitted to viewing child pornography, sending child pornography, and soliciting child pornography from multiple victims. Carpenter sent Robux (the currency used with the online game platform Roblox) to juvenile females in exchange for nude photos and videos. Investigators found 36 pre-paid Robux cards in Carpenter’s bedroom. Carpenter told investigators that, a week prior, he sent a $10 Robux gift card to a 16- or 17-year-old girl in exchange for nude images of her. Carpenter stated he used applications and sites such as Snapchat, Likee, Discord, and Omegle to solicit and exchange child pornography. Investigators found 956 files of child sexual abuse material and 6,512 files of child exploitative or age-difficult material on Carpenter’s electronic devices. Among those files were images and videos that Carpenter solicited from minor victims living in Dubai, the Philippines, and the United Kingdom. This case was prosecuted by Assistant U.S. Attorney Stephanie L. Wan. It was investigated by the Connecticut State Police, the Essex County, N.J., Prosecutor’s Office, Homeland Security Investigations, the Horry County, S. C., Sheriff’s Department, the Laclede County, Mo., Sheriff’s Department, and the Southwest Missouri Cyber Crimes Task Force. Project Safe Childhood 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."


title: Disbarred Personal Injury Lawyer Tom Girardi Found Guilty of Defrauding Clients Out of Tens of Millions of Dollars

body_text: LOS ANGELES – Disbarred plaintiffs’ personal injury attorney Thomas Vincent Girardi was found guilty by a jury today of leading a years-long scheme in which he embezzled tens of millions of dollars of money that belonged to his clients, some of whom awaited payment for treatment of severe physical injuries. Girardi, 85, of Seal Beach, was found guilty of four counts of wire fraud. “Tom Girardi built celebrity status and lured in victims by falsely portraying himself as a ‘Champion of Justice,’” said United States Attorney Martin Estrada. “In reality, he was a Robin-Hood-in-reverse, stealing from the needy to support of a lavish, Hollywood lifestyle. Today’s verdict shows that the game is up – we can all now see this defendant for what he was and the victims he callously betrayed.” “Mr. Girardi exploited his clients’ misfortunes on a grand scale,” said Special Agent in Charge Tyler Hatcher, IRS Criminal Investigation, Los Angeles Field Office. “His clients sought his help in the wake of significant trauma and injury, yet he violated their trust to steal from them and fund his own lavish lifestyle, and he will now face the consequences of his actions.” “Mr. Girardi was retained to advocate for clients who put their trust in him, but instead, lied to them and stole their money to fund his lavish lifestyle,” said Akil Davis, the Assistant Director in Charge of the FBI's Los Angeles Field Office. “Girardi falsely promoted himself in the media as a pillar of the legal community with a heightened sense of justice, but the clients he wronged for many years have now found actual justice in today's verdict.” According to evidence presented at a 13-day trial, Girardi – a once-powerful figure in California’s legal community – ran the now-defunct law firm Girardi Keese. For years, Girardi misappropriated and embezzled millions of dollars from client trust accounts at his law firm. The scheme involved defendant Girardi stealing millions of dollars in client settlement funds and failing to pay Girardi Keese clients – some of whom had suffered serious injuries in accidents – the money they were owed. In carrying out this scheme, from October 2010 to late 2020, Girardi provided a litany of lies for failure to pay clients and directed a law firm employee to pay previously defrauded clients or other unrelated expenditures. Girardi sent lulling communications to the clients that, among other things, falsely denied that the settlement proceeds had been paid and falsely claimed that Girardi Keese could not pay the settlement proceeds to clients until certain purported requirements had been met. These bogus requirements included addressing supposed tax obligations, settling bankruptcy claims, obtaining supposedly necessary authorizations from judges, and satisfying other debts. Girardi diverted tens of millions of dollars from his law firm’s operating account to pay illegitimate expenses, including more than $25 million to pay the expenses of EJ Global, a company formed by his wife related to her entertainment career, as well as spent millions of dollars of Girardi Keese funds on private jet travel, jewelry, luxury cars, and exclusive golf and social clubs. At the end of 2020, as Girardi and his law firm faced mounting legal problems related to his years-long theft of client funds, Girardi Keese was forced into involuntary bankruptcy. The State Bar of California disbarred Girardi in July 2022. United States District Judge Josephine L. Staton scheduled a December 6 sentencing hearing, at which time Girardi will face a statutory maximum sentence of 20 years in federal prison for each count. Relatedly, co-defendant Christopher Kazuo Kamon, 50, formerly of Encino and Palos Verdes and who was residing in The Bahamas at the time of his November 2022 arrest on a federal criminal complaint, awaits trial in this matter in January 2025. Kamon, the former chief financial officer at Girardi Keese, is charged with multiple fraud counts for allegedly aiding and abetting Girardi’s scheme to defraud clients. Kamon allegedly also embezzled millions of dollars from the law firm’s accounts for his own personal enrichment. Kamon, who remains in federal custody, has pleaded not guilty to these charges. Girardi, Kamon, and David R. Lira, Girardi’s son-in-law and a former lawyer at Girardi Keese, also face federal fraud charges in Chicago. Trial in that case is scheduled for March 3, 2025. An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt. IRS Criminal Investigation and the FBI investigated this matter. The Office of the United States Trustee provided assistance. Assistant United States Attorneys Scott Paetty of the Major Frauds Section and Ali Moghaddas of the Corporate and Securities Fraud Strike Force are prosecuting this case.


title: Oklahoma Medical Clinic, Owners, and Treating Physician Pay $246,000 to Settle Allegations of Submitting False Medicare Claims for Medically Unnecessary Ultrasound Procedures

component: USAO - Oklahoma, Western

body_text: OKLAHOMA CITY – Oklahoma Medical Clinic , LLC (“OMC”), Tracy Ellis , D.C., (“Dr. Ellis”) and Tristan Ellis (“Mrs. Ellis”), paid $150,000 to resolve allegations that they submitted or caused the submission of false claims to the Medicare program for medically unnecessary ultrasound procedures, announced United States Attorney Robert J. Troester. In a separate agreement Mark L. Wells , PA-C (“Mr. Wells”), paid $96,000 to resolve allegations he, as the practitioner treating the patients and performing the medically unnecessary ultrasound services, caused the submission of false claims to the Medicare program. OMC was an Oklahoma limited liability company that provided chiropractic, medical and durable medical equipment services in Oklahoma City, Oklahoma. Dr. Ellis is a chiropractic physician licensed to practice in the State of Oklahoma who worked at OMC during the relevant time and was responsible for the submission of claims to Medicare. Mrs. Ellis was a part owner of OMC and was aware of the services provided by OMC. Mr. Wells is a physician assistant licensed to practice in the State of Oklahoma who worked at OMC during the relevant time. The United States alleges that from December 1, 2017, through November 30, 2022, OMC billed Medicare for medically unnecessary ultrasound services performed by Mr. Wells. The Medicare program does not cover medically unreasonable or unnecessary services and supplies, including, for example, excessive and/or unnecessary diagnostic procedures. To resolve these allegations, OMC and the Ellis’ paid $150,000, and Mr. Wells paid $96,000, to the United States. In reaching this settlement, OMC, the Ellis’, and Mr. Wells did not admit liability, and the government did not make any concessions about the legitimacy of the claims. The agreement allows the parties to avoid the delay, expense, inconvenience, and uncertainty involved in litigating the case. Assistant U.S. Attorneys Amanda R. Johnson and Ronald R. Gallegos prosecuted the case. Investigative assistance was provided by HHS-OIG Office of Audit Services.


title: Austal USA LLC Agrees to Settle False Claims Act Allegations Involving Navy Ships

component: USAO - Mississippi, Southern

body_text: Austal USA LLC (Austal), a Mobile, Alabama, based company, has agreed to pay $811,259 to resolve allegations that it violated the False Claims Act by knowingly supplying valves that did not meet military specifications. Austal manufactures numerous ships for the United States, including the Independence Class Littoral Combat Ship (LCS). The United States' settlement alleges that, under a 2011 Navy contract, Austal invoiced for military grade high performance butterfly valves and triple offset butterfly valves it installed on five LCS hulls when it knew the valves had not met the testing requirements to be deemed military grade. “It is essential to the safety and operational readiness of our Navy fleet that contractors comply with applicable military specifications,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department's Civil Division. “We will continue to hold accountable those who knowingly supply equipment to the U.S. military that fails to meet contract specifications.” “We cannot and will not tolerate companies who cut corners and misrepresent the products they provide to our military,” said U.S. Attorney Todd W. Gee for the Southern District of Mississippi. “This office is committed to protecting taxpayer dollars and will pursue fraud wherever we find it.” “Supplying nonconforming parts to the Department of Defense (DoD) compromises military systems and potentially endangers the lives of U.S servicemembers,” said Special Agent in Charge Darrin K. Jones of DoD Office of Inspector General, Defense Criminal Investigative Service (DCIS), Southeast Field Office. “DCIS and our law enforcement partners are fully committed to ensure the safety of our military personnel and protecting the integrity of the DoD supply chain.” “Product substitution risks degrading warfighter capability and wastes U.S. taxpayer dollars,” said Special Agent in Charge Greg Gross of the Navy Criminal Investigative Service (NCIS) Economic Crimes Field Office. “I want to thank our investigative partners for their collaboration in working with NCIS to protect the integrity of the Department of the Navy procurement process.” DCIS, NCIS and the Defense Contract Audit Agency's Office of Investigative Support investigated the case Senior Trial Counsel Art J. Coulter of the Civil Division's Commercial Litigation Branch, Fraud Section and Assistant U.S. Attorney Deidre Lamppin Colson for the Southern District of Mississippi handled the case. The claims resolved by the settlements are allegations only. There has been no determination of liability. Settlement


title: Oklahoma City Physician Pays $165,000 to Settle Civil Penalty Claims Stemming from his Alleged Issuance of Invalid Prescriptions for Schedule III Controlled Substances

body_text: OKLAHOMA CITY – Tuan Alex Nguyen , M.D. (“Dr. Nguyen”), paid $165,000 to settle civil penalty claims stemming from allegations he violated the Comprehensive Drug Abuse Prevention and Control Act of 1970 (“Act”) and its regulations, announced United States Attorney Robert J. Troester. During the relevant time, Dr. Nguyen was licensed and practiced medicine in Oklahoma City, Oklahoma. Practitioners prescribing controlled substances must be registered under the Act and meet the applicable Act requirements. Among other things, when issuing a prescription for a controlled substance, the Act requires the practitioner be authorized to prescribe that substance by the jurisdiction in which he or she is licensed to practice. The United States alleges that from November 2022 to September 2023, Dr. Nguyen issued prescriptions in the state of Oklahoma for Schedule III Controlled Substances without the required certificate of registration from the Oklahoma Bureau of Narcotics. To resolve these allegations, Dr. Nguyen agreed to pay $165,000 to the United States. In reaching this settlement, Dr. Nguyen did not admit liability, and the government did not make any concessions about the legitimacy of the claims. The agreement allows the parties to avoid the delay, expense, inconvenience, and uncertainty involved in litigating the case. This case was investigated by the Drug Enforcement Administration, Office of Diversion Control. Assistant U.S. Attorneys Amanda R. Johnson and Ronald R. Gallegos prosecuted the case.


title: Berwick Man Sentenced to 7 ½ Years for Fentanyl and Methamphetamine Trafficking

component: Federal Bureau of Investigation (FBI)

body_text: PORTLAND, Maine: A Berwick man was sentenced in U.S. District Court in Portland today for distributing, and possessing with intent to distribute, methamphetamine and fentanyl. U.S. District Judge Nancy Torresen sentenced Bo Rodden , 34, to 90 months in prison to be followed by three years of supervised release. Rodden pleaded guilty on November 30, 2023. According to court records, in January and February of 2023, Rodden sold fentanyl and methamphetamine to a confidential source. On February 14, 2023, a police officer stopped Rodden’s vehicle in Lebanon, Maine. He possessed five bags containing a total of approximately 49 grams of fentanyl and two bags containing a total of approximately 150 grams of methamphetamine. The FBI, Strafford (NH) County Sheriff’s Office and York County Sheriff’s Office investigated the case. ###


title: Atlanta’s Former Chief Financial Officer Sentenced to Federal Prison

component: USAO - Georgia, Northern

body_text: ATLANTA - The City of Atlanta’s former Chief Financial Officer, Jimmie “Jim” A. Beard, has been sentenced to federal prison for a multi-year scheme involving theft of funds, purchase and possession of two machine guns, and obstructing federal tax laws using altered documents and a fake business. “Jim Beard abused the trust and confidence placed in him by the people of the City of Atlanta when he decided to steal tens of thousands of dollars from taxpayers to support his lavish lifestyle,” said U.S. Attorney Ryan K. Buchanan. “Beard’s sentencing is a demonstration of our commitment to hold accountable public officials who trade their position of power for greed and personal gain.” “As this prosecution shows, the Department of Justice will work vigorously to protect the integrity of federal funds. Today’s sentence sends a strong message of deterrence to prevent fraud and theft from state and local governments receiving federal benefits,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri. “Beard’s actions eroded public trust in government. As one of the most powerful people in Atlanta city government, he stole tens of thousands of dollars from taxpayers so he could go on luxurious trips and even buy custom-made machine guns,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “Public corruption is one of the FBI’s top priorities and we continue to work to protect citizens against officials who abuse that trust.” “Public officials are entrusted by the citizens they serve to conduct the business of government on their behalf,” said Demetrius Hardeman, Special Agent in Charge, IRS Criminal Investigation, Atlanta Field Office. “Jim Beard failed in his responsibilities to the community and utilized public tax dollars to satisfy his greed. The sentence today reinforces IRS Criminal Investigation’s commitment to investigating and forwarding for prosecution those who commit financial fraud.” “Beard repeatedly abused his position, broke the law he was sworn to uphold and betrayed the trust of the people of Atlanta,” said ATF Assistant Special Agent in Charge Alicia D. Jones. “This case demonstrates the partnerships of law enforcement to enforce the law and hold individuals accountable, regardless of their position or status.” According to U.S. Attorney Buchanan, the charges and other information presented in court: From approximately November 2011 to May 2018, Beard served as the Chief Financial officer (“CFO”) of the City of Atlanta (the “City”). As CFO, Beard directed and managed the Department of Finance, with primary responsibility for oversight and management of the City’s financial condition, earning a salary of over $260,000 per year. During his tenure, Beard devised and executed a scheme to obtain money and property from the City for private use, including using City funds to: (1) pay for personal luxury travel expenses for himself, his family, and his travel companions; (2) buy items for personal use, including two machine guns; (3) pay for travel to conferences or meetings for which the conference or meeting host reimbursed Beard, with Beard pocketing the reimbursements instead of giving them to the City; and (4) pay for travel that Beard falsely claimed as business deductions on his taxes for a non-existent personal consulting business. In total, Beard stole at least tens of thousands of dollars from the City. By way of example only: •In the summers of 2015 and 2016, Beard charged nearly $4,000 to the City for weekend stays at the J.W. Marriott Hotel in Chicago, Illinois. However, Beard was not in Chicago those weekends and the hotel rooms were actually for his stepdaughter to attend the Lollapalooza music festival. •In December 2015, Beard ordered two custom-built machine guns using a purchase order and $2,641.90 check from the City, telling the manufacturer that the machine guns were for the exclusive use of the Atlanta Police Department (“APD”) – even though Beard took the guns to his own home and APD had no knowledge of them. •In April 2016, Beard charged more than $2,600 to the City for airfare and hotels for two weekend trips to the New Orleans Jazz and Heritage Festival. Beard had no City business in New Orleans during either trip, and took his wife one of the weekends and a different personal companion the other. •In June 2016, Beard charged $975.52 to the City for travel to Washington, D.C. for a meeting with the Municipal Securities Rulemaking Board (“MSRB”). Even though Beard had the City pay for this travel, Beard asked the MSRB to reimburse him personally for these costs and submitted copies of his receipts to the MSRB. As a result, the MSRB issued a check to Beard, which he kept and deposited into his personal bank account. •In April 2017, Beard charged more than $10,000 to the City for a four-day stay for him and his wife at the Shangri-La Hotel in Paris, in a deluxe suite with a view of the Eiffel Tower. Beard exploited his position and power to execute his scheme. When lower-level City staff members responsible for processing travel reimbursements asked him for receipts or work justifications for his trips, Beard refused and ordered the staff (who worked for him) to process the reimbursements without the requisite documentation. A City employee described the culture under Beard as, “if the [] CFO asks you for something, you do not ask questions.” While CFO, Beard also submitted years of fraudulent tax returns in which he claimed personal business expenses to lower what he owed in taxes. During a 2015 audit of one of those returns, Beard lied to the IRS and obstructed auditors by submitting receipts for transactions that were actually paid by the City in connection with Beard’s official duties. The investigation later revealed that Beard did not operate a personal business, and years of tax deductions were based on a lie. Jimmie “Jim” A. Beard, 60, of Fort Lauderdale, Florida was sentenced by U.S. District Judge Steve C. Jones to three years in prison to be followed by three years of supervised release. Beard was also ordered to pay a fine of $10,000 and restitution in the amount of $177,197.48. Beard was convicted on these charges on April 8, 2024, after he pleaded guilty. This case was investigated by the Federal Bureau of Investigation and Internal Revenue Service Criminal Investigations, with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorneys Garrett Bradford and Tiffany Johnson, Department of Justice Trial Attorney Trevor Wilmot, and former Assistant U.S. Attorney Jeffrey Davis prosecuted the case. 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 .


title: Former corrections officer admits to accepting bribes

component: USAO - Texas, Southern

body_text: CORPUS CHRISTI, Texas – A 26-year-old Three Rivers man has entered a guilty plea to bribery of a public official, announced U.S. Attorney Alamdar S. Hamdani. Justin Matthew Gonzalez was a former corrections officer with the federal Bureau of Prisons at the Three Rivers Correctional Institution. As part of his plea, he admitted to receiving approximately $1,600 in what he described as “bribe” payments in return for smuggling cigarettes into the facility. When he reported to work on or about Feb. 11, 2021, authorities searched his bag and discovered 16 packets of cigarettes. “Public service is a public trust, especially for those in positions in corrections and law enforcement,” said Hamdani. “The vast majority of these officers serve with honesty and integrity. However, we must still root out any and all forms of corruption or abuse in our federal prisons and hold accountable those who choose to break the law themselves.” “Gonzalez’s selfish acts compromised the safety and security of the federal prison. The Department of Justice – Office of the Inspector General (DOJ-OIG) is committed to rooting out bribery schemes and bringing perpetrators to justice,” said Special Agent in Charge Cloey C. Pierce, DOJ-OIG, South Central Region. U.S. District Judge David S. Morales will impose sentencing Nov. 20. At that time, Gonzalez faces up to 15 years in federal prison and a possible $250,000 maximum fine. Gonzalez was permitted to remain on bond pending that hearing. The Department of Justice - Office of Inspector General conducted the investigation. Assistant U.S. Attorneys Lisa Collins and Carolyn Ferko are prosecuting the case.