title: North Port Man Gets Life In Federal Prison For Using Hidden Cameras To Produce Child Sexual Abuse Material

component: USAO - Florida, Middle

body_text: Tampa, Florida – U.S. District Judge William F. Jung has sentenced Gregory Allen Williamson (59, North Port), a/k/a “Vlad Vlad,” to life in federal prison for enticing a minor to engage in sexual activity, and for the production, distribution, and possession of child sexual abuse material. Williamson was found guilty following a jury trial on March 13, 2024. According to testimony and evidence presented at trial, Williamson isolated and groomed a vulnerable 12-year-old victim, and recent immigrant from Eastern Europe, to engage in sexual activity. Using the alias “Vlad Vlad,” Williamson sent the victim anonymous and graphic sexually explicit emails, including ones containing child sexual abuse material. Williamson later gifted the victim cellphone chargers which, unbeknownst to the victim, contained hidden cameras. Williamson used the chargers to surreptitiously record and produce sexually explicit images of the victim when the victim was naked in the victim’s bedroom. One of the cellphone chargers with a hidden camera is pictured below. “Life in prison will keep this depraved individual from hurting another child. Our special agents, task force officers, and analysts work these investigations with compassion and dogged determination to ensure the innocent are protected from predators,” said FBI Tampa Acting Special Agent in Charge Rodney Crawford. This case was investigated by the Federal Bureau of Investigation Tampa Division − Sarasota Resident Agency and the North Port Police Department, with substantial assistance from the Sarasota County Sheriff’s Office. It was prosecuted by Assistant United States Attorneys Erin Claire Favorit and Lindsey Schmidt. This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc .


title: COVID-19 stimulus check theft sends Houston resident to prison

component: USAO - Texas, Southern

body_text: HOUSTON – A 50-year-old man has been sentenced for committing fraud in connection with stimulus checks, announced U.S. Attorney Alamdar S. Hamdani. Ndem Oduu pleaded guilty March 14. U.S. District Judge Charles R. Eskridge has now ordered Oduu to serve 45 months in federal prison to be immediately followed by three years of supervised release. Oduu was also ordered to pay restitution in the amount of $1,867. At the hearing, the court heard additional evidence that showed Oduu possessed thousands of pages of documents in his apartment related to his efforts to defraud the government through fraudulent loans and tax credits. In handing down the sentence, the court noted he hoped Oduu would lead a productive life upon release. At the time of his plea, Oduu admitted to appropriating a victim’s Economic Impact Payment, also referred to as a stimulus check, in the amount of $1,200 and depositing the check into his own account. The U.S. government offered these payments to the general public in response to the economic harm of the COVID-19 pandemic. Oduu has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future. Social Security Administration-Office of Inspector General and Texas Department of Public Safety conducted the investigation. Assistant U.S. Attorney Jay Hileman prosecuted the case.


title: Sikorsky Support Services Inc. and Derco Aerospace Inc. Agree to Pay $70M to Settle False Claims Act Allegations of Improper Markups on Spare Parts for Navy Trainer Aircraft

component: Civil Division

body_text: Sikorsky Support Services Inc. (SSSI), a Delaware corporation headquartered in Stratford, Connecticut, and Derco Aerospace Inc. (Derco), a Wisconsin corporation headquartered in Milwaukee, Wisconsin, have agreed to pay $70 million to resolve False Claims Act allegations that they overcharged the Navy for spare parts and materials needed to repair and maintain the primary aircraft used to train naval aviators. In a lawsuit filed in the U.S. District Court for the Eastern District of Wisconsin, the Justice Department alleged that SSSI and Derco, which were both wholly-owned subsidiaries of the same parent company, knowingly entered into an improper cost-plus-percentage-of-cost (CPPC) subcontract. Under that contract, SSSI agreed to purchase parts from Derco at the cost that Derco paid other suppliers for those parts, plus a fixed 32% markup. SSSI, in turn, submitted cost vouchers to the Navy for reimbursement of the amounts it paid to Derco. The government alleged that, by failing to disclose that the costs claimed by SSSI were the product of an illegal CPPC subcontract between SSSI and Derco, SSSI and Derco knowingly presented false and fraudulent cost vouchers to the Navy. The district court ruled that Derco’s markup violated a federal statute barring CPPC contracting, which Congress prohibited because it gives suppliers incentive to drive up government costs, as well as the terms of the prime contracts between SSSI and the Navy. “Government contractors must ensure their subcontracting arrangements comply with the law and with their contractual obligations,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “Today’s settlement demonstrates that the Justice Department will ensure that government contractors do not skirt the law and engage in self-dealing that may artificially inflate their charges at the expense of the American taxpayers.” “The U.S. Attorney’s Office is committed to preventing fraud and protecting taxpayer money,” said U.S. Attorney Gregory J. Haanstad for the Eastern District of Wisconsin. “Government contractors must put compliance with the law ahead of profits. This settlement makes the United States whole for the inflated costs arising from SSSI’s and Derco’s illegal subcontract deterring future violations of the law.” “Today’s settlement agreement should serve as a strong deterrent for those who seek to exploit the Department of Defense's procurement process,” said Special Agent in Charge Darrin K. Jones of Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS), Southeast Field Office. “This investigation is part of an ongoing effort by the Defense Criminal Investigative Service and our partners to aggressively investigate defective pricing and cost mischarging schemes that put American taxpayer dollars at risk.” “Overinflation of parts and material costs for the repair and maintenance of aircraft affected naval air training and is a disservice to the American taxpayer,” said Special Agent in Charge Greg Gross of the Naval Criminal Investigative Service (NCIS) Economic Crimes Field Office. “NCIS continues to safeguard the Department of the Navy’s warfighting efforts from economic crimes by upholding the integrity of the defense acquisition process.” The settlement resolves a lawsuit filed under the qui tam or whistleblower provision of the False Claims Act, which permits private parties to file suit on behalf of the United States for false claims and share in a portion of the government’s recovery. The Act permits the United States to intervene and take over responsibility for litigating these cases, as the United States did here. The qui tam case is captioned United States ex rel. Patzer v. Sikorsky Aircraft Corp., Sikorsky Support Services Inc., and Derco Aerospace Inc. , Case No. 11-0560 (E.D. Wis.) and was brought by Mary Patzer, a former employee of Derco. The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section and the U.S. Attorney’s Office for the Eastern District of Wisconsin, with assistance from DCIS. Trial Attorneys Alan Gale, Nelson Wagner and Gary Newkirk of the Civil Division’s Commercial Litigation Branch, Fraud Section and Assistant U.S. Attorney Michael Carter for the Eastern District of Wisconsin handled the matter. The claims resolved by the settlement are allegations only. There has been no determination of liability. Settlement


title: Midlothian Man Sentenced in One of Two Cases Involving Fraud, Bribery

component: Federal Bureau of Investigation (FBI)

body_text: SAN ANTONIO – A Midlothian man was sentenced in federal court to 25 months in prison for falsifying court documents and bribing a Veteran’s Administration contracting officer. According to court documents, Javor McCoy, 43, attempted to avoid a civil court appearance in Dallas by transmitting a criminal summons to an employee with the Dallas County Court showing he had to appear in court for a Western District of Texas federal indictment. The summons contained the false and fraudulent electronic signature of a United States magistrate judge and had been altered to display a fictitious appearance date for McCoy. The criminal summons altered by McCoy was related to charges he faced for bribery of a public official. In that case, court documents reveal that McCoy owned Ready 2 Go Transport Central LLC (R2G Central), a purported Service-Disabled Veteran Owned Small Business, providing transportation for veterans, including ambulance and wheelchair transportation. McCoy’s co-defendant in the bribery case, Glenn Dartone Johnson, 50, of San Antonio, was a contracting officer with the Department of Veteran’s Affairs (VA). McCoy paid Johnson approximately $100,000 for information regarding the VA bid process and for Johnson’s assistance in influencing the VA bid process to help R2G Central win competitive bids from the VA. McCoy pleaded guilty to charges in both cases in January. U.S. District Judge Orlando Garcia ordered the Defendant sentenced to 25 months on each case, to be served concurrently. McCoy will also be subject to a term of supervised release of three years. Johnson pleaded guilty on Dec. 20, 2023, to one count of conspiracy to commit bribery of a public official and is scheduled to be sentenced Sept. 19, 2024. U.S. Attorney Jaime Esparza of the Western District of Texas made the announcement. The FBI and VA-OIG investigated the case. Assistant U.S. Attorney Justin Chung and Special Assistant U.S. Attorney Jay Porier prosecuted the case. ###


title: St. Charles Man Sentenced to 40 Years in Prison for Recording Sexual Abuse of 2 Girls

body_text: ST. LOUIS – U.S. District Judge Sarah E. Pitlyk on Friday sentenced a St. Charles, Missouri man who recorded his sexual abuse of two young girls for years to 40 years in prison. Ronald C. Lawrence sexually abused two girls for years, starting when one was just 7 years old. He recorded that abuse and shared those images with others online. The victims’ mother spoke in court, saying Lawrence had destroyed their lives and violated the trust they once had in him. Lawrence also downloaded and possessed child sexual abuse material involving other children, and Judge Pitlyk ordered him to pay restitution of $3,000 to one of those children whose identity is known. Lawrence directed a third juvenile victim that he met via social media to create and send him videos of child pornography and asked the victim and another person to send him exploitative images of their younger siblings. Lawrence, 25, pleaded guilty in U.S. District Court in St. Louis to two counts of production of child pornography, two counts of distribution of child pornography and one count of receiving child pornography. The FBI, the St. Charles Police Department, the St. Charles County Police Department and the FBI investigated the case. Assistant U.S. Attorney Jillian Anderson prosecuted the case. This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Department of Justice Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc .


title: Central Pennsylvania  Man Sentenced to Prison for Hobbs Act Robberies

component: USAO - Pennsylvania, Middle

body_text: HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that U.S. District Judge Christopher C. Conner sentenced Kyle Jaden Morales, age 21, of Harrisburg, Pennsylvania to 230 months’ imprisonment following his conviction for robberies of businesses engaged in interstate commerce (Hobbs Act robbery), bank robbery, and brandishing a firearm during and in relation to a crime of violence. According to United States Attorney Gerard M. Karam, Morales previously pleaded guilty to these offenses, which involved Morales’ robberies of McDonald’s restaurants, Sheetz convenience stores, and United Bank in March 2022 during a 12-day crime spree in the states of Pennsylvania, Georgia, North Carolina, and South Carolina. As part of these robberies, Morales pointed a handgun at employees and took money by means of actual and threatened force, violence, and fear of injury. Judge Conner also ordered Morales to pay $5,094 in restitution to the McDonald’s Corporation, Sheetz, Inc., and United Bank, to pay a special assessment of $400, and to serve five years of supervised release after he completes his prison sentence. The case was investigated by the Federal Bureau of Investigation, the East Pennsboro Township Police Department, and the Pennsylvania State Police, and prosecuted by Assistant U.S. Attorneys David C. Williams and Samuel S. Dalke.


title: Federal Inmate Sentenced to Additional 32 Months in Prison for Possessing Improvised Weapon

component: Federal Bureau of Prisons (BOP)

body_text: TERRE HAUTE- Javon Britton, 44, of Georgia, has been sentenced to an additional 32 months in federal prison after being found in possession of a weapon while in prison. According to court documents, in 2015, Britton was convicted of robbery and two counts of brandishing a firearm during a crime of violence and a judge in the Middle District of Georgia sentenced him to 11.5 years in federal prison. He has been serving his prison sentence at the Terre Haute Federal Correctional Complex inmate since 2017. On April 29, 2019, Britton exited the prison dining hall and passed through a walk-through metal detector. The metal detector alerted staff to an object on Britton’s person. A Bureau of Prisons Officer patted Britton down and located a homemade weapon in his right jacket pocket. The weapon consisted of a combination padlock attached to a belt. Britton ran and was tackled by multiple officers, who removed the weapon. Improvised weapons are illegal to possess in federal prison and pose a significant risk to the safety of fellow inmates and correctional staff. The Special Investigation Services branch of the Bureau of Prisons investigated this case. The sentence was imposed by U.S. District Judge James R. Sweeney. U.S. Attorney Myers thanked Assistant U.S. Attorneys James M. Warden and Jayson W. McGrath, who prosecuted this case. ###


title: Sikorsky Support Services, Inc. and Derco Aerospace, Inc. Agree to Pay $70 Million to Settle False Claims Act Allegations of Improper Markups on Spare Parts for Navy Trainer Aircraft

component: USAO - Wisconsin, Eastern

body_text: Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, joins the Civil Division of the Department of Justice in announcing that Sikorsky Support Services, Inc. (“SSSI”), a Delaware corporation headquartered in Stratford, Connecticut, and Derco Aerospace, Inc. (“Derco”), a Wisconsin corporation headquartered in Milwaukee, Wisconsin, have agreed to pay $70 million to resolve False Claims Act allegations that they overcharged the Navy for spare parts and materials needed to repair and maintain the primary aircraft used to train naval aviators. In a lawsuit filed in the United States District Court for the Eastern District of Wisconsin, the United States alleged that SSSI and Derco, which were both wholly-owned subsidiaries of the same parent company, knowingly entered into an improper cost-plus-percentage-of-cost (“CPPC”) subcontract. Under that contract, SSSI agreed to purchase parts from Derco at the cost that Derco paid other suppliers for those parts, plus a fixed 32 percent markup. SSSI, in turn, submitted cost vouchers to the Navy for reimbursement of the amounts it paid to Derco. The government alleged that, by failing to disclose that the costs claimed by SSSI were the product of an illegal CPPC subcontract between SSSI and Derco, SSSI and Derco knowingly presented false and fraudulent cost vouchers to the Navy. The district court ruled that Derco’s markup violated a federal statute barring CPPC contracting, which Congress prohibited because it gives suppliers incentive to drive up government costs, as well as the terms of the prime contracts between SSSI and the Navy. “Government contractors must ensure their subcontracting arrangements comply with the law and with their contractual obligations,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “Today’s settlement demonstrates that the Justice Department will ensure that government contractors do not skirt the law and engage in self-dealing that may artificially inflate their charges at the expense of the American taxpayers.” “The United States Attorney’s Office is committed to preventing fraud and protecting taxpayer money,” said Gregory J. Haanstad, U.S. Attorney for the Eastern District of Wisconsin. “Government contractors must put compliance with the law ahead of profits. This settlement makes the United States whole for the inflated costs arising from SSSI’s and Derco’s illegal subcontract while deterring future violations of the law.” “Today’s settlement agreement should serve as a strong deterrent for those who seek to exploit the DoD’s procurement process,” said Special Agent-in-Charge Darrin K. Jones, Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS), Southeast Field Office. “This investigation is part of an ongoing effort by the Defense Criminal Investigative Service and our partners to aggressively investigate defective pricing and cost mischarging schemes that put American taxpayer dollars at risk.” “Overinflation of parts and material costs for the repair and maintenance of aircraft affected naval air training and is a disservice to the American taxpayer,” said Special Agent in Charge Greg Gross of the Naval Criminal Investigative Service (NCIS) Economic Crimes Field Office. “NCIS continues to safeguard the Department of the Navy’s warfighting efforts from economic crimes by upholding the integrity of the defense acquisition process.” The settlement resolves a lawsuit filed under the qui tam or whistleblower provision of the False Claims Act, which permits private parties to file suit on behalf of the United States for false claims and share in a portion of the government’s recovery. The Act permits the United States to intervene and take over responsibility for litigating these cases, as the United States did here. The qui tam case is captioned United States ex rel. Patzer v. Sikorsky Aircraft Corp., Sikorsky Support Services, Inc., and Derco Aerospace, Inc. , Case No. 11-0560 (E.D. Wis.) and was brought by Mary Patzer, a former employee of Derco. The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, and the United States Attorney’s Office for the Eastern District of Wisconsin. Assistant United States Attorney Michael Carter of the Eastern District of Wisconsin and Trial Attorneys Alan Gale, Nelson Wagner, and Gary Newkirk of the Fraud Section of the Civil Division’s Commercial Litigation Branch handled the matter. The claims resolved by the settlement are allegations only and there has been no determination of liability. # # # For Additional Information Contact: Public Information Officer Kenneth.Gales@usdoj.gov


title: Two Men Sentenced for Commercial Bribery and Tax Fraud

body_text: SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Danny Sing, age 61, of Philadelphia, Pennsylvania, was sentenced to 27 months of imprisonment, and Mark Holmes, age 67, of Muskogee, Oklahoma, was sentenced to 18 months of imprisonment by United States District Judge Malachy E. Mannion, for commercial bribery and tax fraud offenses. According to United States Attorney Gerard M. Karam, Danny Sing pleaded guilty to conspiring with other individuals to failing to withhold and remit approximately $1,360,000 in federal employment taxes to the IRS. Global Staffing Services, Inc. leased temporary employees to companies in Pennsylvania and New York. Sing and his coconspirators paid Global Staffing Services, Inc. employees in cash, paid themselves in cash, and cashed all checks received from Global Staffing Services, Inc.’s clients, to conceal the income and wages from the IRS. Sing also pleaded guilty to providing in excess of approximately $400,000 in bribes and kickbacks to managers and supervisors at Global Staffing Services, Inc.’s client, to obtain business for Global Staffing Services, Inc. In total, Sing and his coconspirators obtained over $16,500,000 from a Pennsylvania food services company for their staffing companies. The criminal activities occurred between 2013 and 2020. Sing further failed to file personal tax returns and pay federal income tax for years 2014 through 2020, despite spending over $1 million at local casinos during that time period. This resulted in over $390,000 in tax losses to the IRS. Mark Holmes pleaded guilty to accepting, as the General Manager of a Pennsylvania food services company, approximately $400,000 in bribes and kickbacks from the owners and operators of Global Staffing Services, Inc. and Penns Independent Staffing, another staffing company, in exchange for hiring their employees. The two temporary staffing companies, in turn, received approximately $7,800,000 from Holmes’s employer. Holmes also pleaded guilty to failing to remit approximately $135,000 in employment taxes to the IRS that were owed by Encore Staffing Solutions LLC, another temporary staffing company that he owned and operated. Encore Staffing Solutions LLC leased temporary employees to manufacturing businesses throughout Pennsylvania. The criminal activities occurred between 2014 and 2020. Five other individuals were previously prosecuted in this investigation: Madeline Nieves, age 49, of Plains, Pennsylvania, pleaded guilty to a tax fraud conspiracy. Nieves conspired with other individuals to defraud the IRS, from 2018 to 2020, in connection with staffing company Encore Staffing Solutions LLC, which she owned and operated with Holmes. Nieves failed to report Encore Staffing Solutions LLC employee wages to the IRS, resulting in approximately $67,000 in employment taxes owed, but never paid, by Encore to the IRS. Nieves also failed to report her own personal income from Encore Staffing Solutions LLC to the IRS. Nieves was sentenced to 15 months of imprisonment. Nari Lam, age 31, of Wilmington, Delaware, pleaded guilty to failing to remit employment taxes to the IRS. From 2016 through 2020, Nari Lam, as the owner of temporary staffing company Penns Independent Staffing, failed to pay approximately $300,000 in employment taxes owed by Penns Independent Staffing to the IRS. Nari Lam was sentenced to three years of probation. Den Lam, age 49, of Philadelphia, Pennsylvania, was charged in an information alleging that he conspired with other individuals to evade federal income taxes for approximately $1,600,000 in wages paid by Global Staffing Services, Inc. to its employees. Den Lam also was charged with failing to withhold and remit approximately $1,360,000 in federal employment taxes owed, but never paid, by Global Staffing Services, Inc. to the IRS. Jason R. Bonnewell, age 41, of North Abington Township, Pennsylvania, pleaded guilty to accepting, as a supervisor of the Pennsylvania food services company, approximately $150,000 in bribes and kickbacks from Global Staffing Services, Inc. and Penns Independent Staffing, in exchange for hiring their employees. The two temporary staffing companies, in turn, received approximately $13,000,000 from Bonnewell’s employer. Bonnewell also pleaded guilty to failing to disclose cash income on his personal tax returns. Bonnewell awaits sentencing. Jose L. Ortiz, age 48, of Drums, Pennsylvania, pleaded guilty to conspiring to commit honest services fraud. From 2014 to 2021, Ortiz was a manager and director at a Pennsylvania food services company who, along with his coconspirators accepted cash bribes and other things of value from other coconspirators who owned and operated Global Staffing Services, Inc. and Penns Independent Staffing. In exchange for the kickbacks, Ortiz and his coconspirators entered contracts with and hired the temporary employees of the two staffing companies, paying them over $18,000,000, in exchange for hundreds of thousands of dollars in kickbacks. Ortiz received approximately $200,000 of those cash kickbacks. The cases were investigated by the IRS Criminal Investigations Division. The cases are being prosecuted by Assistant U.S. Attorney Phillip J. Caraballo. # # #


title: Methamphetamine Traffickers Sentenced to a Combined 368 Months in Prison

component: USAO - Arkansas, Western

body_text: TEXARKANA – A central Arkansas man and woman were sentenced yesterday to a combined total of more than 30 years in federal prison for methamphetamine trafficking and related crimes. The Honorable Chief Judge Susan O. Hickey presided over the sentencing hearings, which took place in the United States District Court in Texarkana. According to court records, on February 28, 2021, Lynnel Antwan Watkins , age 36, of North Little Rock, and Haillie Marie Hendrickson , age 25, of Lonoke, were in a vehicle stopped by the Arkansas State Police on Interstate 49, in Miller County. The driver, Watkins, accelerated away from the scene of the stop at high speed, resulting in a short vehicle pursuit. When their vehicle became disabled, Watkins and his passenger, Hendrickson, were taken into custody on outstanding warrants. Officers then recovered more than nine (9) pounds of methamphetamine from the vehicle’s rear seat. Three firearms were also found in the vehicle, including two stolen AR-15’s, one of which was equipped with a loaded, 100-round drum magazine. On July 20, 2023, Watkins pleaded guilty to Possession of More than 500 Grams of Methamphetamine with Intent to Distribute, and to Possessing a Firearm in Furtherance of a Drug Trafficking Crime. One day later, Hendrickson plead guilty to Possession of Methamphetamine with Intent to Distribute. For those crimes, Watkins was sentenced today to 248 months, in federal prison followed by five years of supervised release. Hendrickson was sentenced to 120 months, in federal prison followed by three years of supervised release. U.S. Attorney David Clay Fowlkes made the announcement. The Arkansas State Police and the Drug Enforcement Administration investigated the case. Assistant U.S. Attorney Graham Jones prosecuted the case for the United States. Related court documents may be found on the Public Access to Electronic Records website at www.pacer.gov .


title: Massachusetts Man Charged with Wildlife Trafficking

component: USAO - Massachusetts

body_text: BOSTON – A Reading, Mass. man has been charged with allegedly trafficking in wildlife parts from endangered and protected species. Adam Bied, 39, is charged with two counts of conspiracy to smuggle goods into the United States, specifically, illegally imported wildlife parts, and three counts of violating the Lacey Act which prohibits trafficking in wildlife. It is alleged that the wildlife was protected by the Endangered Species Act (ESA) as well as the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES). “The illicit trafficking of endangered wildlife for financial gain is a grave offense that poses a significant threat to global conservation efforts and preservation of these species. Mr. Bied’s alleged conduct reflects a blatant disregard for the laws in place to safeguard our planet’s biodiversity. These laws and international treaties exist to protect endangered species from exploitation and to maintain ecological balance,” said Acting United States Attorney Joshua S. Levy. “In addition to the criminal charges, our office is seeking to forfeit the hundreds of animal parts seized from Mr. Bied’s home and a storage unit, including orangutan skulls, tiger skulls and jaguar skins. This forfeiture action sends a clear message that we will not only prosecute those who engage in illegal wildlife trafficking, but also take legal actions to strip them of their ill-gotten gains.” According to court filings, beginning at least from January 2018 until June 2021, Bied bought, sold and traded in wildlife parts and products, with knowledge that many of the transactions were in violation of U.S. laws and regulations and knowingly failed to declare this wildlife upon importation into the United States. Specifically, Bied allegedly placed orders with individuals in Cameroon and Indonesia who were in the businesses of killing and acquiring wildlife – including endangered and protected species – which he then resold or traded to customers in the United States. Bied did not possess a United States Fish and Wildlife Service (USFWS) import/export license or necessary CITES permits, and allegedly failed to declare the wildlife to the USFWS upon import. The United States Attorney’s Office also filed a civil forfeiture complaint seeking to forfeit over 100 wildlife parts from endangered, threatened, or protected species seized by the USFWS in July 2021 from Bied’s residence, storage unit, and a vehicle. As alleged in the civil forfeiture complaint, many of the seized wildlife parts required a CITES permit and/or a USFWS declaration for lawful import and a USFWS import/export license to import wildlife for commercial purposes. Other wildlife parts are alleged to have been acquired in violation of the ESA or the Marine Mammal Protection Act (MMPA). The civil forfeiture complaint alleges that the wildlife parts are subject to civil forfeiture under federal law. The wildlife parts identified in the civil forfeiture complaint include: Orangutan skulls; Tiger skulls; Leopard skin, skulls and claw; Jaguar skin and skull; African lion skulls; Polar bear skull; Narwhal tusk; Otter skeleton; Harp seal skull; South American fur seal skull; Elephant seal skull; Babirusa skulls; Mandrillus skulls; Wallaby skull; and Jackal skull. Federal wildlife statutes and regulations prohibit international and illegal trade in vulnerable wildlife species. The ESA, the Lacey Act and CITES, as well as the accompanying regulations, prohibit the import, export, possession, transport, purchase and sale of protected species. The restrictions apply to live and dead wildlife specimens, as well as the skins, parts and products made in whole or in part from listed species. Additional documents are also required for wildlife protected by the CITES treaty, which regulates trade in endangered or threatened species through permit requirements. The lawful importation of vulnerable wildlife species requires a CITES permit(s). The lawful importation of any foreign species requires a USFWS wildlife declaration. Individuals are also required to have a USFWS import/export license to import wildlife for commercial purposes. The charges of conspiracy as well as the charges under the Lacey Act each provide for a sentence of up to five years in prison, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case. Acting U.S. Attorney Levy and Ryan Noel, Special Agent in Charge of U.S. Fish and Wildlife Service, Office of Law Enforcement, Northeast Region, made the announcement today. This case was worked jointly with the United States Marshals Service and the Department of Justice’s Environment and Natural Resources Division’s Environmental Crimes Section. Assistant U.S. Attorneys Nadine Pellegrini, Chief of the National Security Unit, is prosecuting the case. Assistant U.S. Attorney Carol E. Head, Chief of the Asset Recovery Unit is prosecuting the civil forfeiture case. The details contained in the charging document and civil forfeiture complaint are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law. The United States must establish that the wildlife parts are subject to forfeiture by a preponderance of the evidence.


title: West Texas Man Sentenced to Fourteen Years in Prison for Methamphetamine Trafficking

body_text: TEXARKANA – A West Texas man was sentenced yesterday to 168 months in federal prison, followed by five years of supervised release, for methamphetamine trafficking. The Honorable Chief Judge Susan O. Hickey presided over the sentencing hearing, which took place in the United States District Court in Texarkana. According to court records, on September 28, 2020, Ray Cornelius Calvert , age 43, of El Paso, Texas was the driver of a rental vehicle stopped by the Arkansas State Police on Interstate 30, in Hempstead County. During the traffic stop, a Trooper asked the vehicle’s renter, passenger Anita Marie Hughes , age 47, for consent to search it, which she granted. During the ensuing search, Troopers found approximately 1.5 pounds of pure methamphetamine in the vehicle, which Calvert and Hughes had been transporting to Memphis, Tennessee, for distribution. Subsequent investigation also revealed that, at the time of his arrest in Arkansas, Calvert was on pre-trial release for a separate federal methamphetamine indictment then pending in another state. On July 21, 2023, Calvert pleaded guilty to Possession of Methamphetamine with Intent to Distribute in the Western District of Arkansas. Hughes also pleaded guilty and was sentenced to 72 months in prison in January 2022, followed by 5 years of supervised release. U.S. Attorney David Clay Fowlkes made the announcement. The Arkansas State Police and the Drug Enforcement Administration investigated the case. Assistant U.S. Attorney Graham Jones prosecuted the case for the United States. Related court documents may be found on the Public Access to Electronic Records website at www.pacer.gov .


title: Stoughton Man Sentenced to Over 11 Years for Role in Cocaine Trafficking Conspiracy and Bank and Wire Fraud Scheme Related to COVID-19 Pandemic Relief Program

body_text: BOSTON – A Stoughton man was sentenced yesterday in federal court in Boston for his role in a drug trafficking organization (DTO) that shipped dozens of parcels containing kilograms of cocaine from Puerto Rico to various addresses throughout Eastern Massachusetts and Rhode Island. The defendant was also sentenced for his role in a bank and wire fraud scheme to fraudulently obtain COVID-19 pandemic relief funds. Patrick Joseph, 42, was sentenced by U.S. District Court Chief Judge F. Dennis Saylor IV to 138 months in prison followed by five years of supervised release. In March 2024, Joseph pled guilty to one count each of conspiracy to distribute and possess with intent to distribute five kilograms or more of cocaine and cocaine base, wire fraud, bank fraud, and conspiracy to commit wire fraud and bank fraud. From February 2020 to May 2021, Joseph facilitated the transportation of 10-20 kilograms of cocaine from the Dominican Republic to Puerto Rico, and eventually to Massachusetts via the U.S. Mail. The cocaine seized by investigators was found concealed in two-kilogram quantities inside air fryers and locking cash boxes before being sent through the U.S. Mail. The investigation led to the search of several drug stash locations and the seizure of dozens of kilograms of cocaine. During the investigation it was learned that Joseph was involved in a scheme to defraud a COVID-19 pandemic relief program. The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) created a temporary loan program directed at small businesses called the Paycheck Protection Program (PPP). Independent contractors were eligible to apply for PPP loans, which were processed by private financial institutions and fully guaranteed by the U.S. Small Business Administration. If an independent contractor used the loan funds for approved purposes, such as payroll, the loan could be forgiven by the financial institution and paid for by the U.S. Small Business Administration. Joseph participated in a scheme that obtained over $220,000 in proceeds through fraudulent PPP loan applications submitted between April 2020 and April 2021. Joseph and co-conspirator Yves Montima submitted 12 fraudulent PPP loan applications, both in their own names and on behalf of others, at several financial institutions. The fraudulent loan applications claimed independent contractor income that did not exist and substantiated that non-existent income through falsified tax documents. In addition to receiving the proceeds from the loans submitted in their own names, Joseph and Montima received kickback payments from individuals on whose behalf they submitted fraudulent PPP loan applications. In November 2021, Montima pleaded guilty to one count of bank fraud conspiracy and was sentenced in September 2023 . Acting U.S. Attorney Joshua S. Levy; Ketty Larco-Ward, Inspector in Charge of the U.S. Postal Inspection Service’s Boston Division; Andrew Murphy, Special Agent in Charge of the U.S. Secret Service, Boston Field Office; Massachusetts State Police Colonel John Mawn; and Boston Police Commissioner Michael Cox made the announcement today. The Drug Enforcement Administration, New England Field Division and Homeland Security Investigations in Boston provided valuable assistance with the investigation. Assistant U.S. Attorneys Philip C. Cheng and Christopher Markham of the Criminal Division prosecuted the case. This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF . On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus . Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form .


title: Beebe Man Sentenced to 35 Years in Federal Prison For Production of Child Pornography, Transfer of Obscene Material to a Minor, and Attempted Sex Trafficking of A Minor

component: USAO - Arkansas, Eastern

body_text: LITTLE ROCK—Zachary Bradley will spend 35 years in federal prison for production of child pornography, transfer of obscene materials to a minor, and attempted sex trafficking of a minor. Jonathan D. Ross, United States Attorney for the Eastern District of Arkansas, announced the sentence, which was handed down on Thursday, June 20, 2024, by Chief United States District Judge Kristine G. Baker. On approximately October 6, 2021, the minor victim’s stepfather made a report to the Beebe Police Department that the minor victim was raped by Bradley. An investigation revealed that Bradley provided the minor victim with marijuana and alcohol and that he passed out. Once the minor victim woke up, Bradley was performing sexual acts on him. Bradley told the minor victim that if he would continue to engage in sex acts with him, he would give him an allowance. The investigation further revealed that Bradley had multiple videos on his phone that contained child pornography of another minor, believed to be approximately 13 years old. Another video located on Bradley’s phone was a FaceTime conversation between Bradley and the minor. The video depicted a display of the minor’s genitals to Bradley during the conversation. An additional video from a FaceTime conversation depicted Bradley with his shorts pulled down to reveal his genitals to the minor. On December 8, 2021, Bradley, 33, of Beebe, was indicted by a federal grand jury on seven counts: Counts One, Two, Four, Five, and Six: production of child pornography, Count Three: transfer of obscene material to a minor, and Count Seven: attempted sex trafficking of a minor. On July 27, 2023, Bradley, pleaded guilty to all seven counts in the Indictment. The maximum penalty Bradley faced on Counts One, Two, Four, Five, and Six was not less than 15 years and not more than 30 years in prison. The maximum penalty Bradley faced on Count Three was not more than 10 years in prison. For Count Seven, Bradley faced a maximum penalty of not less than 10 years to life in prison. Chief Judge Baker also sentenced Bradley to a lifetime of supervised release. Bradley faced a maximum of supervised release of five years to life and a fine of $250,000. There is no parole in the federal system. The investigation was conducted by the Federal Bureau of Investigation, with assistance from the Beebe Police Department and Arkansas State Police Crimes Against Children Division. The case was prosecuted by Assistant United States Attorney Kristin Bryant. # # # Additional information about the office of the United States Attorney for the Eastern District of Arkansas, is available online at https://www.justice.gov/edar X (formerly known as Twitter): @USAO_EDAR


title: Eleven Men Plead Guilty to Conspiring to Distribute Fentanyl, Methamphetamine and Marijuana in Tennessee and Other States

component: Drug Enforcement Administration (DEA)

body_text: NASHVILLE – Eleven members of a drug trafficking conspiracy pled guilty to conspiring to distribute and possess with the intent to distribute controlled substances in middle Tennessee, announced United States Attorney Henry C. Leventis for the Middle District of Tennessee. Davontay Holt, 30, of Columbia, Tennessee, pled guilty on April 8, 2024 Ricardo Molinero-Alcarez, 29, of Santa Rosa, California, pled guilty on April 9, 2024 Khyre McClain, 21, of Columbia, Tennessee, pled guilty on May 17, 2024 Marcus Johnson, 26, of Santa Rosa, California, pled guilty on May 29, 2024 Ethan Kimes, 22, of Columbia, Tennessee, pled guilty on May 29, 2024 Jahari Armstrong, 22, of Columbia, Tennessee, pled guilty on May 29, 2024 Jaydan Armstrong, 22, of Columbia, Tennessee, pled guilty on May 29, 2024 Mathew Cox, 28, of Santa Rosa, California, pled guilty on June 7, 2024 Tristain Orr, 24, of Columbia, Tennessee, pled guilty on June 17, 2024 Jonny Rodriguez-Gonzalez, 25, Elmira, California, pled guilty on June 17, 2024 Quortez Duncan, 36, of Columbia, Tennessee, pled guilty on June 18, 2024 According to charging and plea documents, agents with the Drug Enforcement Administration and Homeland Security Investigations were investigating the distribution of methamphetamine, marijuana and counterfeit fentanyl-laced Oxycodone tablets with the inscription “M30” which were being shipped from the Santa Rosa, California, area to Tennessee and more than a dozen other states. Subsequent investigation, including surveillance and the review of social media sites and mobile payment records, identified members of the drug distribution network. Law enforcement officers in Columbia, Tennessee, executed several search warrants of the defendants’ residences and recovered loaded firearms and blue tablets inscribed “M30.” On July 25, 2022, HSI agents seized a package from a UPS Store in Sebastopol, California, which was destined for Nashville. This package contained thousands of counterfeit fentanyl-laced Oxycodone “M30” tablets weighing over two kilograms. The package also contained more than eight pounds of methamphetamine. On August 9, 2022, HSI agents intercepted two additional packages from the Santa Rosa area which were destined for residences in Nashville. One package contained 472 grams of the counterfeit fentanyl-laced Oxycodone “M30” tablets and the other package contained approximately four pounds of methamphetamine. The defendants will be sentenced before United States District Judge Waverly D. Crenshaw, Jr., in the spring of 2025. Cox, Johnson, Molinero-Alcarez, McClain, Rodriguez-Gonzalez, and Duncan face up to life imprisonment and a $10,000,000 fine. Holt, Orr, Kimes, Jahari Armstrong, and Jaydan Armstrong face up to 20 years’ imprisonment and a $1,000,000 fine. This case was investigated by the Drug Enforcement Administration; Homeland Security Investigations; the U.S. Postal Inspection Service; the Federal Bureau of Investigation, Memphis Field Office, Nashville Resident Agency; and the Columbia Police Department. Assistant U.S. Attorneys Ahmed Safeeullah and Rachel Stephens are prosecuting the case. # # # # #


title: Sebring Woman Charged for Role in Fatal Human Smuggling Conspiracy

component: USAO - Florida, Southern

body_text: MIAMI - Yaqulelin Dominguez-Nieves, 25, of Sebring, Fla., was detained pending trial today, on an indictment charging ten counts relating to an alien smuggling venture that resulted in the death of approximately sixteen people, four of whom were recovered at sea and found to have died by drowning. “Human smuggling ventures put people’s lives at risk for the sake of profit,” said U.S. Attorney Markenzy Lapointe for the Southern District of Florida. “Human smugglers prey on the migrants’ hopes for a better life. Tragically, the smugglers’ exploits pose a grave danger to migrants. The U.S. Attorney’s Office will continue to work with our partners to prosecute those who carry out illicit human smuggling operations to protect vulnerable migrants and save lives.” "The Coast Guard Investigative Service is committed to safeguarding those who are vulnerable and at risk of exploitation. The indictment and arrest of Yaqulelin Dominguez-Nieves underscore our unwavering dedication to protecting individuals from the dangers of illegal smuggling operations. These criminal activities not only violate federal law but also endanger human lives. We remain steadfast in our mission to bring those who perpetrate such heinous acts to justice and ensure the safety and security of our maritime borders." said Special Agent in Charge Matthew J. Margelot of the Coast Guard Investigative Service (CGIS) Southeast Field Office. According to allegations in the indictment and information presented during the detention hearing, Dominguez-Nieves facilitated a smuggling venture that resulted in death and that was for commercial gain. On Nov. 16, 2022, this smuggling venture resulted in the deaths of approximately sixteen migrants, three of whom are charged in the indictment and many of whom were children, when the boat they were being smuggled in—a boat that according to a survivor was overloaded and did not contain a single life vest—sank roughly thirty miles off the coast of Cuba while in transit to the Southern District of Florida. Dominguez-Nieves was arrested by CGIS Special Agents. If convicted of encouraging and inducing or attempting to bring aliens into the United States resulting in death, Dominguez-Nieves faces a maximum penalty of life in prison or death. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. U.S. Attorney Markenzy Lapointe for the Southern District of Florida and Special Agent in Charge Matthew J. Margelot of the CGIS Southeast Field Office made the announcement. CGIS Southeast Field Office investigated the case, with assistance from U.S. Coast Guard Sector Key West, the U.S. Border Patrol, the Monroe County Medical Examiner’s Office, and the Highlands County Sheriff’s Office. Assistant U.S. Attorney Zachary A. Keller is prosecuting this case. An indictment contains mere allegations, and a defendant is presumed innocent unless and until proven guilty in a court of law . 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 on http://pacer.flsd.uscourts.gov under case number 24-CR-20223. ###


title: Chicago Consultant Sentenced to a Year in Federal Prison for Tax Offenses

body_text: CHICAGO — A Chicago consultant was sentenced today to a year in federal prison for underreporting and failing to file federal income taxes. ANNAZETTE COLLINS, 62, of Chicago, willfully filed a false individual tax return for the calendar years 2014 and 2015, and willfully failed to file an individual income tax return for the calendar year 2016. Collins also willfully failed to file a corporate income tax return for the calendar year 2016 on behalf of her consulting and lobbying business, Chicago-based Kourtnie Nicole Corp. Prior to operating her consulting business, Collins served in the Illinois General Assembly as a Representative and Senator. A jury earlier this year convicted Collins on federal tax charges. In addition to the prison sentence, U.S. District Judge Jorge L. Alonso ordered Collins to pay $110,852 in restitution. The sentence was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Jason Bushey, Acting Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago, and Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. The government was represented by Assistant U.S. Attorneys Michelle J. Parthum and Amarjeet S. Bhachu.


title: South Bend Man Sentenced to 168 Months in Prison

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

body_text: SOUTH BEND – DeVante Jiggetts, 30 years old, of South Bend, Indiana, was sentenced by United States District Court Judge Damon R. Leichty after pleading guilty to two counts of robbery affecting commerce, one count of brandishing a firearm in relation to a crime of violence, and one count of being a felon in possession of a firearm, announced United States Attorney Clifford D. Johnson. Jiggetts was sentenced to 168 months in prison followed by 3 years of supervised release. and was ordered to pay $300 in restitution to the victims of the offense. According to documents in the case, in November and December 2022, Jiggetts, along with co-defendants Smith and Harris, robbed at gunpoint several cellular telephone stores and a convenience store. The stores were spread across LaPorte, Elkhart, and St. Joseph counties. On November 29, 2022, Jiggetts drove Smith to commit a robbery of a cell phone store in South Bend. After the robbery was over, officers tracked Jiggetts to an apartment complex and attempted to apprehend him. Jiggetts fled first in a vehicle and then on foot, all while carrying a 9mm handgun that was recovered by law enforcement. Jiggetts had a 2014 felony robbery conviction which prohibited him from possessing the firearm. Co-defendant Treveon Smith was previously sentenced to 214 months of imprisonment followed by 3 years of supervised release and was ordered to pay $300.00 in restitution. Co-defendant Taibian Harris was previously sentenced to 84 months of imprisonment followed by 2 years of supervised release. This case was investigated by the Federal Bureau of Investigation and the Bureau of Alcohol, Tobacco, Firearms and Explosives with assistance from the St. Joseph County Prosecutor’s Office, the South Bend Police Department, the Elkhart Police Department, the Michigan City Police Department, and the LaPorte County Sheriff’s Department. The case was prosecuted by Assistant United States Attorney Katelan McKenzie Doyle. 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: Provider Agrees to Pay Over $629,000 to Settle Allegations of False Claims Act Violations

component: USAO - Maine

body_text: PORTLAND, Maine: United States Attorney Darcie N. McElwee today announced that Jamie P. Loggins, M.D. has agreed to pay $629,056.76 to settle allegations that he violated the federal False Claims Act (the “FCA”). The civil settlement agreement resolves allegations that Loggins prescribed orthotic braces that were not medically necessary to individuals with whom he had no valid prescriber-patient relationship. Medicare statutes, regulations and guidelines make clear that participating providers may only bill for services actually provided and which are medically reasonable and necessary. As alleged by the Government, from September 2018 through November 2022, Loggins caused claims to be submitted to Medicare for payment for medical services that were not reasonably medically necessary or for which medical necessity could not be determined. More specifically, the Government alleges that Loggins worked with a telemedicine company to provide telemedicine consultations and consultation services. As part of those services, Loggins would review prepared intake forms, which included purported complaint information for a beneficiary and prepared prescriptions for orthotic braces. Frequently, the intake forms included multiple complaints and prescriptions for orthotic braces for each individual beneficiary. The Government alleges that Dr. Loggins would then electronically sign these prescriptions, despite there being no valid prescriber-patient relationship and no medical necessity for the claims. The FCA provides that any person who “knowingly presents, or causes to be presented, a false or fraudulent claim for payment or approval” or “knowingly makes, uses, or causes to be made or used, a false record or statement material to a false or fraudulent claim” is liable to the United States for three times the amount of damages which the United States sustains, plus a civil penalty for each FCA violation. The Government alleges that by submitting claims for payment for medical services that were not medically reasonable or necessary, Loggins violated the FCA. Loggins cooperated with this investigation and did not admit liability in the settlement agreement. Federal authorities encourage health care providers to cooperate with investigations involving the possible submission of false claims to federal programs. Entities or individuals that make proactive, timely and voluntary self-disclosures to the U.S. Attorney’s Office may receive credit during the resolution of a later FCA case. The U.S. Department of Health and Human Services, Office of Inspector General investigated the case. ###


title: Baltimore Man Sentenced To Fourteen Years In Federal Prison For Committing Armed Robberies Of Three Cellphone Stores In Howard County, Anne Arundel County And Baltimore County, Maryland

component: USAO - Maryland

body_text: Baltimore , Maryland – United States District Judge Brendan A. Hurson today sentenced Gary Leon Holloway, age 46, of Baltimore, Maryland, to fourteen years in federal prison, followed by four years of supervised release, for the armed robberies of cellphone stores located in Howard County, Anne Arundel County, and Baltimore County, Maryland. The sentence was announced by Erek L. Barron, U.S. Attorney for the District of Maryland, Special Agent in Charge Toni M. Crosby of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division, Chief Gregory Der of the Howard County Police Department, Chief Amal E. Awad of the Anne Arundel County Police Department, Chief Robert McCullough of the Baltimore County Police Department and Commissioner Richard Worley of the Baltimore Police Department. According to his guilty plea, in January 2020, Holloway and his co-conspirators planned and committed armed robberies of three commercial businesses. Specifically, on January 4, January 15, and January 22, Holloway and at least one of his co-defendants robbed cellphone stores in Ellicott City, Glen Burnie, and Dundalk, Maryland, respectively. Holloway brandished a gun in each robbery and he and his co-defendant stole cellphones and other electronic devices. In the first robbery, Holloway and his co-defendant also stole the wallets of two employees and in the third robbery, they forced the employees to open and empty the safe and stole cash in addition to the cellphones and electronic devices. After the third robbery, Holloway and two co-defendants were arrested in Baltimore County. This case is part of Project Safe Neighborhoods (“PSN”), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. U.S. Attorney Barron commended the ATF, the Howard County Police Department, the Anne Arundel Police Department, the Baltimore County Police Department, and the Baltimore Police Department for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys John W. Sippel, Jr., and Adey Adenrele, who prosecuted the case. For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/project-safe-neighborhoods-psn and https://www.justice.gov/usao-md/community-outreach . # # #


title: Erie Resident Who Led Large-Scale Drug Trafficking Organization Pleads Guilty to Narcotics, Firearms, and Money Laundering Charges

body_text: JOHNSTOWN, Pa. – A resident of Erie, Pennsylvania, pleaded guilty in federal court to charges of violating federal narcotics, firearms, and money laundering laws, United States Attorney Eric G. Olshan announced today. John Christopher Bisbee, 44, pleaded guilty before Senior United States District Judge Kim R. Gibson to Counts Two, Three, Thirteen, and Fourteen of the Superseding Indictment. In connection with the guilty plea, the Court was advised that, from in and around July 2019 to in and around June 2020, in the Western District of Pennsylvania, Bisbee conspired with others to distribute and possess with intent to distribute 500 grams or more of methamphetamine. Bisbee, who led and directed the drug trafficking organization’s activity in Erie and surrounding areas, including New York, was intercepted on a federal wiretap obtaining kilogram quantities of methamphetamine that he distributed to others. Through a source of supply in Atlanta, Bisbee imported dozens of kilograms of methamphetamine at a time, packaged it for final distribution, and provided it to a network of distributors below him to distribute and collect proceeds from the drugs. During the execution of a search warrant at Bisbee’s residence in June 2020, law enforcement agents seized two handguns and more than 100 rounds of ammunition. Under federal law, Bisbee is prohibited from possessing any firearms or ammunition based on previous felony convictions for drug trafficking. In this case, Bisbee also pleaded guilty to possessing these firearms in furtherance of the instant federal drug trafficking crime. Bisbee additionally acknowledged that, from in and around July 2019 to in and around June 2020, he conspired with others to commit money laundering by using drug proceeds to purchase real estate with cash. Judge Gibson scheduled sentencing for October 22, 2024. The law provides for a maximum total sentence of not less than 15 years and up to life in prison, a fine of up to $10 million, or both. Under the federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history of the defendant. Assistant United States Attorney Maureen Sheehan-Balchon is prosecuting this case on behalf of the government. The Drug Enforcement Administration and Pennsylvania State Police conducted the investigation that led to the prosecution of Bisbee. Additional agencies participating in this investigation included the Bureau of Alcohol, Tobacco, Firearms and Explosives, Internal Revenue Service–Criminal Investigation, United States Postal Inspection Service, Homeland Security Investigations, Pennsylvania Office of Attorney General, Clearfield County District Attorney’s Office, Erie County District Attorney’s Office, Millcreek Police Department, Erie Bureau of Police, and other local law enforcement agencies. This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.


title: Illegal Firearm Possession by Convicted Felon Lands Oklahoma City Man in Federal Prison for Eight Years

component: USAO - Oklahoma, Western

body_text: OKLAHOMA CITY – DONALD EDWARD HILL, JR. , 24, of Oklahoma City, has been sentenced to serve 96 months in federal prison for illegally possessing a firearm after a previous felony conviction, announced U.S. Attorney Robert J. Troester. On August 9, 2023, Hill was charged by Information with being a felon in possession of a firearm. According to an affidavit in a previously filed criminal complaint, in March 2023, an arrest warrant was issued for Hill in Oklahoma County District Court related to a shooting incident. When law enforcement executed a search warrant at the Edmond apartment where Hill was arrested, they located a pistol in a pair of Hill’s pants. According to public record, Hill has multiple prior felony convictions, including assault and battery with a dangerous weapon, discharging a firearm into a dwelling, and possession of a firearm after juvenile adjudication, all in Oklahoma County District Court case number CF-2017-6085; placing bodily fluids upon a government employee in Oklahoma County District Court case number CF-2018-1014; and possession of a firearm after juvenile adjudication in Oklahoma County District Court case number CF-2019-543. On September 11, 2023, Hill pleaded guilty, and admitted he possessed the firearm, despite knowing he was prohibited from doing so because of his felony convictions. At the sentencing hearing on June 18, 2024, U.S. District Judge Jodi W. Dishman sentenced Hill to serve 96 months in federal prison, followed by three years of supervised release. In announcing the sentence, the Court noted Hill’s extensive criminal history and his lack of respect for the law, as well as the need to protect the public from further crimes committed by the defendant. This case is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Oklahoma City Police Department. Assistant U.S. Attorney Danielle M. Connolly prosecuted the case. This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. For more information about PSN, please visit https://justice.gov/psn and https://justice.gov/usao-wdok . Reference is made to public filings for additional information.


title: Oklahoma City Man Sentenced to Serve Nine Years in Federal Prison for Role in Major Black-Market Marijuana Operation

body_text: OKLAHOMA CITY – BRANDON YE , 43, of Oklahoma City, has been sentenced to serve 108 months in federal prison for possession of marijuana with intent to distribute, and possession of a firearm in furtherance of a drug trafficking crime, announced U.S. Attorney Robert J. Troester. On May 3, 2024, a federal grand jury returned a four-count Indictment against Ye and several other co-defendants, charging them for their roles in a major black-market marijuana drug trafficking organization (DTO). According to public record, in December 2022, agents with the Federal Bureau of Investigation (FBI), Oklahoma Bureau of Narcotics (OBN), and Oklahoma City Police Department officers, were investigating reports of a separate DTO when they observed what appeared to be an ‘Amazon’ delivery van pull up to a suspected drug stash house. Agents witnessed several individuals load the van with large, full trash bags. The van’s registration led authorities to a business address in Oklahoma City owned by Ye, followed by a home owned by Ye, where authorities observed what was later determined to be a fake Amazon van parked in the driveway. An affidavit in a previously filed criminal complaint further alleges that Ye, working with the co-defendants and others, would pick up trash bags containing vacuum-sealed packages of marijuana from licensed marijuana grows across Oklahoma, and deliver the bags to a stash house operated by Ye in Oklahoma City. From there, the marijuana was repackaged into cardboard boxes and would be moved to two warehouses owned by Ye, to be picked up by a semi-truck, and transported to the east coast. It’s estimated that, between June 2022 and March 2023, Ye helped ship approximately 28 tons of marijuana out of the state of Oklahoma. On September 11, 2023, Ye pleaded guilty to a two-count Superseding Information, and admitted to knowingly possessing marijuana with the intent to distribute, and to possessing a firearm while distributing that marijuana illegally. At the sentencing hearing on June 20, 2024, U.S. District Judge Scott L. Palk sentenced Ye to serve 108 months in federal prison. In announcing the sentence, Judge Palk specifically noted the vast amount of marijuana transported by Ye during his clandestine operation. This case is the result of an investigation by the FBI Oklahoma City Field Office, the OBN, and OCPD. It is also a part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks. Assistant U.S. Attorney Wilson D. McGarry is prosecuting the case. Reference is made to public filings for additional information.


title: Springfield Man Sentenced to 30 Years in Prison for Purchasing Pornographic Images, Videos from Child Victim

component: USAO - Missouri, Western

body_text: JEFFERSON CITY, Mo. – A Springfield, Mo., man was sentenced in federal court today for the sexual exploitation of a child. Jason T. Bernard, 54, was sentenced by U.S. District Judge Roseann A. Ketchmark to 30 years and five months in federal prison without parole. The court also sentenced Bernard to a lifetime of supervised release following incarceration and ordered him to pay $171,000 in restitution. On Aug. 29, 2023, Bernard pleaded guilty to one count of the exploitation of a child, one count of the coercion and enticement of a child, and one count of receiving child pornography. The investigation began when nine CyberTips were received from the National Center for Missing and Exploited Children on April 7, 2022. The nine CyberTips involved 145 images of child pornography, some victims as young as toddlers, that Bernard uploaded for storage to the Verizon Cloud. After investigators identified Bernard as the account holder, they received information from law enforcement in North Carolina that Bernard also was involved in one of their investigations. For two years, Bernard had been sending funds through Cash App to a child victim identified in court documents as “Jane Doe 1,” starting when she was 12 or 13 years old. In exchange, the child victim sent pornographic images and videos of herself to Bernard. Bernard admitted that he sent sex toys and alcohol to Jane Doe, and those items were later used to produce images that he purchased from Jane Doe. Bernard possessed more than 700 images and videos of the child victim. Bernard also admitted to having multiple conversations with Jane Doe about her traveling to Missouri to meet him for sex, offered her money for this potential meeting, and had conversations with Jane Doe about purchasing either a plane ticket or a bus ticket to facilitate her travel to Missouri. Investigators also discovered more than 1,500 additional images and videos of child pornography on Bernard’s cell phone. This case was prosecuted by Assistant U.S. Attorney Stephanie L. Wan. It was investigated by the Greene County, Mo., Sheriff’s Department, Homeland Security Investigations, the Southwest Missouri Cyber Crimes Task Force, and the Beaufort County, North Carolina, Sheriff’s Department. 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: Supreme Court's Rahimi Decision Important for Local Domestic Violence Initiative – Operation 922

body_text: OKLAHOMA CITY – Today, the Supreme Court in United States v. Rahimi upheld the constitutionality of the federal statute prohibiting individuals subject to a domestic violence restraining order from possessing a firearm or ammunition. This law is a critical tool in our ongoing violent crime initiative – Operation 922. In 2018, the Western District of Oklahoma launched Operation 922 as the local implementation of Project Safe Neighborhoods (PSN), a Department of Justice program to reduce violent crime. The specific strategy is to reduce gun violence by targeting the subject matter of domestic violence. “The Supreme Court’s decision today is vital to our office’s ongoing commitment to address domestic violence through enforcement of federal firearms laws,” said U.S. Attorney Robert J. Troester. “We cannot have safe neighborhoods without first having safe homes. By bringing the power of federal prosecution to hold domestic abusers accountable, particularly when they possess a firearm, we are protecting the lives of women and children in abusive relationships, and the police officers who respond to domestic calls.” Domestic abusers are found in all neighborhoods, regardless of race, ethnicity, socio-economic status, educational level, employment status, or geographic area. When domestic violence escalates to involving firearms, the threat to physical safety increases significantly for the intimate partner, child of a partner, and law enforcement officers responding to domestic calls. Operation 922 prioritizes prosecutions of repeat domestic abusers and particularly violent offenders in domestic settings who violate federal law (primarily firearms offenses). It brings law enforcement, prosecutors, and non-profit entities together with common purpose and clear direction – to protect victims of domestic violence and hold abusers accountable. Since Operation 922 was launched in 2018, the U.S. Attorney’s Office for the Western District of Oklahoma has charged 338 individuals with federal offenses stemming from domestic violence. To date, 321 have already been determined guilty through trial or plea, and 291 have already been sentenced to an average of more than 74 months in federal prison. Cases have originated in 26 different counties in the Western District of Oklahoma.


title: Quincy Area Man Convicted of Methamphetamine Distribution

body_text: Springfield, Ill. – A federal jury returned a guilty verdict on June 21, 2024, against Phillip C. Mayfield, 35, of Quincy, Illinois, for distribution of 50 grams or more of methamphetamine. Sentencing for Mayfield has been scheduled on October 29, 2024, at the U.S. Courthouse in Springfield, Illinois. Over three days of testimony in front of U.S. District Judge Colleen R. Lawless, the government presented evidence to establish that, in February 2023, Mayfield sold over 50 grams of methamphetamine to a confidential informant in a grocery store parking lot in Quincy. Evidence established that, in March 2023, Mayfield sold over 50 grams of methamphetamine to a confidential informant in an apartment parking lot in Quincy. Mayfield is in the custody of the United States Marshals Service, where he has been since his arrest on June 20, 2023. At sentencing, Mayfield faces statutory penalties of not less than 10 years and up to a life term of imprisonment; at least 5 years and up to a life term of supervised releasee; up to a $10,000,000 fine; and a $100 special assessment. The case investigation was conducted by the Illinois State Police West Central Illinois Task Force. Valuable assistance was provided by the Drug Enforcement Administration Springfield Resident Office. Assistant U.S. Attorneys Sarah E. Seberger and Matthew Z. Weir represented the government at trial.


title: Doctor Convicted of Unlawful Distribution of Controlled Substances

component: Criminal Division

body_text: A federal jury convicted a Maine doctor today for unlawfully distributing controlled substances, including oxycodone, hydromorphone, and fentanyl. According to court documents and evidence presented at trial, Dr. Merideth Norris, 53, of Kennebunk, distributed controlled substances to patients at her practice without a legitimate medical purpose and outside the usual course of professional practice. Norris prescribed controlled substances despite the fact that some of these patients suffered from opioid use disorder, tested positive for addictive substances that were not prescribed to them, or appeared to be diverting the drugs into the community. Norris was warned about her prescribing on numerous occasions, including by way of pharmacists who refused to fill prescriptions she wrote and letters from an insurance company covering one of her patients. Walmart pharmacies also issued a “central block,” or a nationwide ban, on filling prescriptions written by Norris. When asked by Maine’s Board of Osteopathic Licensure (the “Board”) to justify her prescribing, Norris submitted an incomplete patient file to the Board, and otherwise deceived the Board about her prescribing practices. The jury convicted Norris of 15 counts of unlawfully distributing controlled substances. She faces a maximum penalty of 20 years in prison on each count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; U.S. Attorney Darcie N. McElwee for the District of Maine; Assistant Director Michael Nordwall of the FBI’s Criminal Investigative Division; Special Agent in Charge Jodi Cohen of the FBI Boston Division; Assistant Administrator Thomas Prevoznik of the DEA’s Diversion Control Division; and Special Agent in Charge Roberto Coviello of the Department of Health and Human Services Office of Inspector General (HHS-OIG) Boston Region made the announcement. The FBI, DEA, and HHS-OIG investigated the case. Trial Attorneys Thomas Campbell and Danielle Sakowski of the Criminal Division’s Fraud Section are prosecuting the case, with assistance from Assistant U.S. Attorney Nicholas Scott for the District of Maine. The Fraud Section partners with federal and state law enforcement agencies and U.S. Attorneys’ Offices throughout the country to prosecute medical professionals and others involved in the illegal prescription and distribution of opioids. The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, currently comprised of nine strike forces operating in 27 federal districts, has charged more than 5,400 defendants who collectively have billed federal health care programs and private insurers more than $27 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit . Anyone needing access to opioid treatment services can contact HHS-OIG’s Substance Abuse and Mental Health Services Administration 24/7 National Helpline for referrals to treatment services at 1-800-662-4359.


title: Metairie Man Indicted for Receipt and Distribution of Child Sexual Abuse Material and Obscene Visual Representations of Child Sexual Abuse

body_text: NEW ORLEANS – U.S. Attorney Duane A. Evans announced that KEVIN LILLIS , age 50, a resident of Metairie, Louisiana, was indicted today for distributing child sexual abuse material (CSAM), in violation of Title 18, United States Code, Section 2252(a)(2) (Count 1), receiving child sexual abuse material (CSAM), in violation of Title 18, United States Code, Section 2252(a)(2) (Count 2), and receiving obscene visual representations of the sexual abuse of children, in violation of Title 18, United States Code, Section 1466A (Count 3). According to the indictment, LILLIS distributed visual depictions of minors, including children as young as approximately four (4) years old, engaging in sexually explicit conduct, such as one depiction of a prepubescent female bound and unclothed. LILLIS also received visual depictions of minors, as young as less than one (1) week old, engaging in sexually explicit conduct, including a newborn female with severe discoloration and bruising being victimized by an adult male. LILLIS also received visual depictions of minors engaging in obscene conduct. LILLIS faces a mandatory minimum of five (5) years in prison, and a maximum term of imprisonment of twenty (20) years as to each of Counts 1, 2, and 3. LILLIS also faces at least five years, and up to a lifetime, of supervised release and up to a $250,000 fine for each count. He may also be required to register as a sex offender. U. S. Attorney Evans reiterated that an indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt. 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 United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov. U.S. Attorney Evans praised the work of the Federal Bureau of Investigation in investigating this matter. Assistant United States Attorney Jordan Ginsberg, Chief of the Public Integrity Unit, is in charge of the prosecution.


title: Former Chairman of Nevada-Based Publicly Traded Health Care Company Found Guilty of Multimillion-Dollar Insider Trading Scheme

component: USAO - California, Central

body_text: LOS ANGELES – The former CEO and chairman of the board of directors of Ontrak Inc., a Henderson, Nevada-based publicly traded health care company, was found guilty by a jury today of engaging in an insider trading scheme, using Rule 10b5-1 plans, to avoid losses of more than $12.5 million. Terren Scott Peizer, 64, a resident of Puerto Rico and Santa Monica, was found guilty of one count of securities fraud and two counts of insider trading. “Corporate executives and other insiders hold major power in our economy, but with that power comes responsibility,” said United States Attorney Martin Estrada. “It is important that executives, such as this defendant, be held accountable when they line their own pockets at the expense of shareholders. That is why I created our office’s Corporate and Securities Fraud Strike Force. Today’s verdict sends a clear message that everyone, including corporate executives, must abide by the law.” “When Terren Peizer learned significant negative news about Ontrak, he set up Rule 10b5-1 trading plans to sell shares before the news became public and to conceal that he was trading on inside information,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “With today’s verdict, the jury convicted Peizer of insider trading. This is the Justice Department’s first insider trading prosecution based exclusively on the use of a trading plan, but it will not be our last. We will not let corporate executives who trade on inside information hide behind trading plans they established in bad faith.” According to evidence presented at a 10-day trial, Peizer avoided losses of approximately $12.5 million by entering into two Rule 10b5-1 trading plans while in possession of material, non-public information concerning the serious risk that Ontrak’s then-largest customer would terminate its contract. In May 2021, Peizer entered into his first 10b5-1 trading plan shortly after learning that the relationship between Ontrak and the customer was deteriorating and that the customer had expressed serious reservations about continuing its contract with Ontrak. Peizer later learned that the customer informed Ontrak of its intent to terminate the contract. Then, in August 2021, Peizer entered into his second 10b5-1 trading plan approximately one hour after Ontrak’s chief negotiator for the contract confirmed to Peizer that the contract likely would be terminated. In establishing his 10b5-1 plans, Peizer refused to engage in any “cooling-off” period—the time between when he entered into the plan and when he sold stock—despite warnings from two brokers, a senior Ontrak executive, and attorneys. Instead, Peizer began selling shares of Ontrak on the next trading day after establishing each plan. On August 19, 2021, just six days after Peizer adopted his August 10b5-1 plan, Ontrak announced that the customer had terminated its contract and Ontrak’s stock price declined by more than 44%. “As a CEO, Mr. Peizer abdicated his responsibilities by using his position to conceal trading on material non-public information in order to avoid the losses shareholders suffered,” said Acting Assistant Director in Charge Krysti Hawkins of the FBI Los Angeles Field Office. “The FBI is committed to investigating illegal trading practices and holding offenders accountable in order to ensure fairness and trust in the marketplace.” United States District Judge Dale S. Fischer scheduled an October 21 sentencing hearing, at which time Peizer will face a statutory maximum penalty of 25 years in prison on the securities fraud count and up to 20 years in prison on each of the insider trading counts. The case is part of a data-driven initiative led by the Criminal Division’s Fraud Section to identify executive abuses of 10b5-1 trading plans. Rule 10b5-1 trading plans can offer an executive a defense to insider trading charges. However, the defense is unavailable if the executive is in possession of material, non-public information at the time he or she enters into the 10b5-1 trading plan. Additionally, a plan does not protect an executive if the trading plan was not entered into in good faith or was entered into as part of an effort or scheme to evade the prohibitions of Rule 10b5-1. The Corporate and Securities Fraud Strike Force is designed to expand and prioritize complex corporate and securities fraud investigations, some of which involves corporate executives and other individuals involved in criminal conduct. Members of the Strike Force examine accounting fraud, insider trading, and other matters that directly impact the financial system and trading markets. The FBI investigated the case, with substantial assistance from FINRA’s Criminal Prosecution Assistance Group. Assistant United States Attorney Ali Moghaddas of the Corporate and Securities Fraud Strike Force and Trial Attorneys Matthew Reilly and Della Sentilles of the Justice Department’s Criminal Division’s Fraud Section are prosecuting this case.


title: Chairman of Publicly Traded Health Care Company Convicted of Insider Trading

body_text: A federal jury in Los Angeles convicted the former CEO, executive chairman, and chairman of the board of directors of Ontrak Inc., a publicly traded health care company, for engaging in an insider trading scheme using Rule 10b5‑1 trading plans. “When Terren Peizer learned significant negative news about Ontrak, he set up Rule 10b5-1 trading plans to sell shares before the news became public and to conceal that he was trading on inside information,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “With today’s verdict, the jury convicted Peizer of insider trading. This is the Justice Department’s first insider trading prosecution based exclusively on the use of a trading plan, but it will not be our last. We will not let corporate executives who trade on inside information hide behind trading plans they established in bad faith.” “Corporate executives and other insiders hold major power in our economy, but with that power comes responsibility,” said U.S. Attorney Martin Estrada for the Central District of California. “It is important that executives, such as this defendant, be held accountable when they line their own pockets at the expense of shareholders. That is why I created our office’s Corporate Crime and Securities Fraud Strike Force. Today’s verdict sends a clear message that everyone, including corporate executives, must abide by the law.” According to court documents and evidence presented at trial, Terren S. Peizer, 64, a resident of Santa Monica, California, and Puerto Rico, avoided more than $12.5 million in losses by entering into two Rule 10b5-1 trading plans while in possession of material non-public information concerning the serious risk that Ontrak’s then-largest customer would terminate its contract. In May 2021, Peizer entered into his first Rule 10b5-1 trading plan shortly after learning that the relationship between Ontrak and the customer was deteriorating and that the customer had expressed serious reservations about continuing its contract with Ontrak. Peizer later learned that the customer informed Ontrak of its intent to terminate the contract. Then, in August 2021, Peizer entered into his second Rule 10b5-1 trading plan approximately five minutes after Ontrak’s chief negotiator for the contract informed Peizer that the contract likely would be terminated. “As a CEO, Mr. Peizer abdicated his responsibilities by using his position to conceal trading on material non-public information in order to avoid the losses shareholders suffered,” said Acting Assistant Director in Charge Krysti Hawkins of the FBI Los Angeles Field Office. “The FBI is committed to investigating illegal trading practices and holding offenders accountable in order to ensure fairness and trust in the marketplace.” In establishing his Rule 10b5-1 plans, Peizer refused to engage in any “cooling-off” period—the time between when he entered into the trading plan and when he sold Ontrak stock—despite warnings from multiple brokers, Ontrak’s Insider Trading Compliance Officer, and several attorneys. Instead, Peizer began selling shares of Ontrak on the next trading day after establishing each plan. On Aug. 19, 2021, just six days after Peizer adopted his second Rule 10b5-1 plan, Ontrak announced to the public that the customer had terminated its contract and Ontrak’s stock price declined by more than 44%. The jury convicted Peizer of one count of securities fraud and two counts of insider trading. He is scheduled to be sentenced on Oct. 21 and faces a maximum penalty of 25 years in prison on the securities fraud count and 20 years in prison on each of the insider trading counts. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. The case is part of a data-driven initiative led by the Criminal Division’s Fraud Section to identify executive abuses of 10b5-1 trading plans. A Rule 10b5-1 trading plan, which allows a corporate insider of a publicly traded company to set up a plan for selling company stock, can offer an executive a defense to insider trading charges. However, the defense is unavailable if the executive is in possession of material, non-public information at the time he or she enters into the 10b5-1 trading plan. Additionally, a plan does not protect an executive if the trading plan was not entered into in good faith or was entered into as part of an effort or scheme to evade the prohibitions of Rule 10b5-1. The FBI investigated the case. The Justice Department appreciates the substantial assistance of FINRA’s Criminal Prosecution Assistance Group. Trial Attorneys Matthew Reilly and Della Sentilles of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Ali Moghaddas for the Central District of California are prosecuting the case.


title: KC, Mississippi Men Sentenced to Life in Prison for Murder, Drug Trafficking, Illegal Firearms

body_text: KANSAS CITY, Mo. – A Kansas City, Mo., man and a Crowder, Mississippi, man have been sentenced in federal court for their roles in a drug-trafficking conspiracy that included two murders. Shawn Burkhalter, also known as “Deuce,” 35, of Kansas City, Mo., was sentenced today by U.S. District Judge Brian C. Wimes to life in federal prison without parole. Co-defendant Joshua Nesbitt, also known as “T,” 30, was sentenced yesterday to life in federal prison without parole. On Aug. 28, 2023, Burkhalter and Nesbitt each were found guilty at trial of one count of conspiracy to distribute cocaine and marijuana, one count of possessing cocaine with the intent to distribute, one count of possessing marijuana with the intent to distribute, one count of robbery, two counts of discharging a firearm in furtherance of a crime of violence and a drug-trafficking crime, one count of brandishing a firearm in furtherance of a crime of violence, one count of being felons in possession of a firearm, one count of conspiracy to commit witness and evidence tampering, one count of murdering a potential witness, and one count of evidence tampering. Additionally, Burkhalter was found guilty of one count of witness tampering. Burkhalter and Nesbitt participated in a decade-long conspiracy to distribute cocaine and marijuana from 2008 to Feb. 20, 2018. Six more co-defendants pleaded guilty and have been sentenced for their roles in the drug-trafficking conspiracy. Trial evidence showed that on Sept. 10, 2015, Burkhalter and Nesbitt stole cocaine from Danny Lamont Dean, and in the process of that robbery, shot and killed Dean with a Rock River Arms AR-15, 5.56-caliber semi-automatic rifle. On Oct. 4, 2015, Nesbitt and others stole marijuana from Anthony Dwayne Johnson, and in the process of that robbery, Nesbitt shot and killed Johnson with the same Rock River Arms AR-15, 5.56-caliber semi-automatic rifle, all of which was at the direction of Burkhalter (who was detained in custody at the time of the murder). Trial evidence showed Johnson was murdered because Burkhalter suspected him of providing information to investigators about Burkhalter’s involvement in Dean’s murder. Burkhalter and Nesbitt robbed a Kansas City, Mo., business on Sept. 8, 2015, brandishing the same AR-15 rifle. The government also presented evidence at yesterday’s sentencing hearing that Nesbitt repeatedly assaulted staff members at detention facilities while incarcerated and awaiting trial. Co-defendants Sharika Hooker and Autry Hines, both of Kansas City, Mo.; Joslyn Lee, also known as “Bless,” and Nickayla Jones, both of Blue Springs, Mo.; Rachel Ryce of Raytown, Mo.; and Anthony Peltier, also known as “A-1,” of Lawrence, Kansas, have pleaded guilty and previously been sentenced. This case was prosecuted by Assistant U.S. Attorneys David Raskin, Patrick C. Edwards, and David Wagner. It was investigated by the FBI and the Kansas City, Mo., Police Department.


title: Wallingford Restaurant to Make Changes to Comply with Americans With Disabilities Act

component: USAO - Connecticut

body_text: Vanessa Roberts Avery, United States Attorney for the District of Connecticut, today announced that Ives Road, LLC (“Ives Road”), the owner of the building that currently houses Pacific Buffet & Grill Restaurant (“Pacific Buffet”) in Wallingford, has entered into a settlement agreement to resolve allegations that the building’s parking area did not comply with the Americans with Disabilities Act (“ADA”). This matter was initiated by a complaint filed with the U.S. Department of Justice by an individual claiming that Pacific Buffet did not have adequate accessible parking spaces. Based on its investigation, the government found several ADA violations in Pacific Buffet’s parking area and entrance. Under the terms of the settlement agreement, Ives Road has agreed to make changes to the building’s entrance and parking area to make them more accessible to individuals with disabilities. Among the changes required by the agreement, Ives Road will add three accessible spaces to its parking lot and remove gaps in the pavement around the accessible parking spaces. It will also lighten the pressure required to open its front door and provide more maneuvering clearance at its front door, so that its entrance is more accessible. Ives Road has a total of three months to complete these changes. “No one should have to worry about not finding accessible parking in our state,” said U.S. Attorney Avery. “The ADA’s mandate has existed for more than a decade. I want to commend Ives Road for doing the right thing by cooperating with our investigation and agreeing to make Pacific Buffet more accessible for everyone going forward.” The settlement agreement is effective for three years, and the U.S. Attorney’s Office will monitor compliance during that time. This matter was handled by Assistant U.S. Attorney Stewart C. Dearing. Any member of the public who wishes to file a complaint alleging that any place of public accommodation or public entity in Connecticut is not accessible to persons with disabilities may contact the U.S. Attorney’s Office at 203-821-3700 and ask for the Civil Rights Intake Specialist. Additional information about the ADA can be found at www.ada.gov , or by calling the Justice Department’s toll-free information line at (800) 514-0301 and (800) 514-0383 (TTY). More information about the Department of Justice Civil Rights Division and the laws it enforces is available at www.justice.gov/crt .