title: Virginia Man Sentenced for Selling Ghost Guns in West Virginia

body_text: CLARKSBURG, WEST VIRGINIA – Brandon Michael Reckert, 30, of Purcellville, Virginia, was sentenced to 70 months for possessing and selling privately manufactured and unregistered firearms. According to court documents and statements made in court, Reckert was advertising and selling privately manufactured firearms, also known as ghost guns, on social media. Reckert’s home and vehicle were searched, where officers found multiple firearms, firearms parts, ammunition., and tools believed to be used in the manufacturing of the ghost guns. Reckert was ordered to forfeit dozens of firearms, firearms parts, rounds of ammunition, and tools. Reckert will serve three years of supervised release once released from prison. Assistant U.S. Attorney Eleanor Hurney prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives; the West Virginia State Police; the Berkeley County Sheriff’s Office; and the Loudon County, Virginia, Sheriff’s Office investigated. This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. For more information about Project Safe Neighborhoods, please visit Justice.gov/PSN . Chief U.S. District Judge Thomas S. Kleeh presided.


title: Alleged Transnational Human Smuggler Indicted and Sanctioned in the United States and Arrested in Mexico

component: Office of the Attorney General

body_text: An indictment was unsealed yesterday containing criminal charges against the alleged leader of a human smuggling organization responsible for unlawfully bringing thousands of migrants into the United States. Along with the organization, the defendant, who was arrested in Mexico at the request of the United States, has also been designated for financial sanctions by the U.S. Department of the Treasury. These developments were made possible through extensive bilateral coordination and cooperation efforts between U.S. and Mexican law enforcement authorities. Abdul Karim Conteh, 42, a national of Sierra Leone, was arrested on July 11 in Tijuana, Mexico. The United States is pursuing Conteh’s extradition on federal charges stemming from his alleged actions in leading the human smuggling organization. His wife, Veronica Roblero Pivaral, 25, a national of Mexico, remains at large. “In coordination with our law enforcement partners, the Justice Department has worked relentlessly to target and disrupt the unlawful, transnational human smuggling operations that endanger migrants and threaten our national security,” said Attorney General Merrick B. Garland. “We allege Abdul Karim Conteh and his organization smuggled thousands of migrants from more than a dozen different countries through Mexico into the United States. He has been arrested for his alleged role in this prolific, exploitive smuggling operation by Mexican authorities, and the Justice Department will ensure that he is held accountable in an American courtroom.” “Human smugglers exploit the vulnerable for profit,” said Secretary of Homeland Security Alejandro N. Mayorkas. “Along with our partners across this Administration and around the world, we are bringing the full force of the law to bear against the individuals and their organizations that perpetrate this heinous crime. We couple our unrelenting efforts with this warning to would-be migrants everywhere: do not believe the smuggler’s lies and risk your lives in their ruthless hands.” According to the indictment, Conteh’s organization allegedly smuggled thousands of migrants to the United States through Mexico. These smuggled migrants originated from countries around the world, including Iran, Afghanistan, Uzbekistan, Pakistan, Kazakhstan, Turkey, Somalia, Cameroon, Senegal, Mauritania, Ethiopia, Egypt, and others. The migrants paid smuggling fees, often tens of thousands of dollars, to be transported through various countries such as Brazil, Colombia, Ecuador, Panama, Costa Rica, Nicaragua, Honduras, and Guatemala, on the way to the U.S.-Mexico border. “This arrest unravels a global web of coordinated human smuggling into the United States,” said U.S. Attorney Tara McGrath for the Southern District of California. “Even the most far-reaching, prolific networks cannot evade justice.” Conteh allegedly coordinated with Roblero and co-conspirators throughout Mexico and other countries to facilitate the global transportation of migrants into and through Mexico to the U.S. border. Conteh then allegedly oversaw the migrants’ unlawful entry into the United States by various surreptitious and unlawful means, including the use of ladders and tunnels. Conteh, Roblero, and others are charged with conspiracy to smuggle migrants into the United States, which carries a maximum penalty of 10 years in prison. Conteh is also charged with the unlawful smuggling of migrants for financial gain, which carries a mandatory minimum of three years in prison for the first two violations. Additional violations carry a mandatory minimum of five years in prison and a maximum penalty of 15 years in prison. In addition, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) added the Abdul Karim Conteh Human Smuggling Organization (HSO) and four individuals to the Specially Designated Nationals and Blocked Persons List pursuant to Executive Order (E.O.) 13851, as amended by E.O. 13863 (E.O. 13581, as amended). For additional information on actions taken by OFAC, please visit www.home.treasury.gov/news/press-releases/jy2470 . The U.S. Border Patrol, HSI, and IRS Criminal Investigation Los Angeles Field Office are investigating this case. The Justice Department’s Office of International Affairs worked with the Mexican authorities to secure Conteh’s arrest. Assistant U.S. Attorneys Ryan A. Sausedo and David E. Fawcett for the Southern District of California are prosecuting the case, with substantial assistance from Trial Attorney Danielle Hickman of the Criminal Division’s Human Rights and Special Prosecutions Section. These actions resulted from the coordinated efforts of Joint Task Force Alpha (JTFA). Attorney General Merrick B. Garland established JTFA in June 2021 to marshal the investigative and prosecutorial resources of the Justice Department, in partnership with the Department of Homeland Security (DHS), to combat the rise in prolific and dangerous human smuggling and trafficking groups operating in Mexico, Guatemala, El Salvador, and Honduras. JTFA comprises detailees from U.S. Attorneys’ Offices along the southwest border, including the Southern District of California, the District of Arizona, the District of New Mexico, and the Western and Southern Districts of Texas. Dedicated support is provided by numerous components of the Justice Department’s Criminal Division, led by the Human Rights and Special Prosecutions Section, with additional support by the Office of Prosecutorial Development, Assistance, and Training; the Narcotic and Dangerous Drug Section; the Money Laundering and Asset Recovery Section; the Office of Enforcement Operations; the Office of International Affairs; and the Violent Crime and Racketeering Section. JTFA also relies on substantial law enforcement investment from DHS, FBI, DEA, and other partners. To date, JTFA’s work has resulted in more than 310 domestic and international arrests of leaders, organizers, and significant facilitators of human smuggling; more than 250 U.S. convictions; more than 185 significant jail sentences imposed; and forfeitures of substantial assets. Indictment


title: Man Sentenced for Selling $3.5M in Counterfeit and Substandard Electronics for Use in Military Systems

component: Criminal Division

body_text: A California man was sentenced yesterday to three years and six months in prison for a scheme to defraud the Department of Defense’s (DoD) Defense Logistics Agency (DLA) by selling over $3.5 million worth of fan assemblies to the DLA that were either counterfeit or that he misrepresented were new when in fact they were used or surplus. According to court documents, Steve H.S. Kim, 63, of Alameda County, controlled Company A, which sold fan assemblies to the DLA that were either counterfeit or were used or surplus fan assemblies that Kim claimed were new. To trick the DLA into accepting the fan assemblies, Kim created counterfeit labels—some of which used Company B’s registered trademarks—that he attached to the fan assemblies he sold to the DLA. When the DLA questioned Kim about the origin of the fan assemblies, Kim concealed his scheme by giving the DLA fake tracing documents that he created and often signed using a false identity. Some of these counterfeit fans were installed or intended to be installed with electrical components on a nuclear submarine, a laser system on an aircraft, and a surface-to-air missile system. Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; U.S. Attorney Ismail J. Ramsey for the Northern District of California; Special Agent in Charge Bryan D. Denny of the DoD Office of Inspector General, Defense Criminal Investigative Service (DCIS), Western Field Office; Special Agent in Charge Greg Gross of the Naval Criminal Investigative Service (NCIS) Economic Crimes Field Office; Special Agent in Charge Tatum King of Homeland Security Investigations (HSI); and Special Agent in Charge Keith K. Kelly of the Department of the Army Criminal Investigation Division’s (Army CID) Fraud Field Office made the announcement. DCIS, NCIS, HSI, and Army CID investigated the case. Assistant Chief Kyle C. Hankey, Trial Attorney David D. Hamstra, and former Trial Attorney Louis Manzo of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Katherine Lloyd-Lovett for the Northern District of California prosecuted the case. Assistant Deputy Chief Adrienne Rose and Senior Counsels Jason Gull and Matthew A. Lamberti of the Criminal Division’s Computer Crime and Intellectual Property Section provided substantial assistance with the investigation.


title: Danbury Non-Profit Settles Allegations It Enrolled Children of Employees Who Falsely Claimed to be Homeless into its Head Start Programs

component: USAO - Connecticut

body_text: Vanessa Roberts Avery, United States Attorney for the District of Connecticut, today announced that CONNECTICUT INSTITUTE FOR THE COMMUNITIES, INC. (“CIFC”) has entered into a civil settlement agreement and has paid $85,600 to resolve allegations that two of its now-former employees falsely claimed to be homeless while enrolling their children in CIFC’s Head Start programs. CIFC is a Danbury-based non-profit corporation that receives federal grants to operate Head Start programs in several locations in Connecticut. The Head Start program supports children’s growth from birth to age five through services centered around early learning and development, health, and family well-being. Services are available for children from birth to age three (“Early Head Start”) and ages three to five (“Head Start”) in center-based, home-based, or family child care settings. Head Start programs are intended primarily for “children from low-income families” and “homeless children.” Head Start rules also permit programs to enroll children whose families are not “low income,” receiving public benefits, homeless, or in foster care, but the total number of children from such families cannot exceed 10 percent of all program slots. Grantees, such as CIFC, are required to verify applicants’ program eligibility and to keep paper records of those eligibility determinations. The government alleges that, between September 4, 2013 through August 31, 2016, CIFC enrolled into its Head Start programs the children of two now-former CIFC employees – including the now-former Manager of Eligibility, Recruitment, Selection, Enrollment, and Attendance for CIFC’s Head Start programs – which were falsely documented as homeless and for which false supporting documents were created. The CIFC employees were not homeless. To resolve its liability, CIFC has paid $85,600. CIFC received credit in the settlement for its cooperation with the government during its investigation. The False Claims Act allegations resolved by the settlement were originally brought in a lawsuit filed by two whistleblowers under the qui tam, or whistleblower, provisions of the False Claims Act, which allow private parties to bring suit on behalf of the government and to share in any recovery. The relators (whistleblowers), former employees of CIFC, will receive $18,832 as their share of the recovery. The case resolved by this settlement was captioned U.S. ex rel. Nichols et al. v. Connecticut Institute for Communities, Inc. (Docket No. 3:20-CV-00262). This matter was investigated by the Office of Inspector General for the Department of Health and Human Services (HHS-OIG) and the Federal Bureau of Investigation. The case was prosecuted by Assistant U.S. Attorney Sarah Gruber, with the assistance of Auditor Susan N. Spiegel. People who suspect fraud are encouraged to report it by calling 1-800-HHS-TIPS.


title: Roswell Man Indicted for Threatening FBI Director Christopher Wray

component: Federal Bureau of Investigation (FBI)

body_text: ATLANTA – John Woodbury has been indicted on federal charges of transmitting interstate threats to injure FBI Director Christopher Wray and others. “Sending threats to physically harm a public official in an attempt to thwart the administration of justice is a criminal offense,” said U.S. Attorney Ryan K. Buchanan. “Director Wray and other law enforcement officials work tirelessly to safeguard our freedoms and to protect our citizens from harm. Threats against such public servants, who have dedicated themselves to enforcing our criminal laws, is especially heinous. Our office will remain steadfast in helping to ensure that public officials are able to carry out their duties free from fear or intimidation.” According to U.S. Attorney Buchanan, the indictment, and other information presented in court: On June 7, 2023, Woodbury allegedly posted a message on 4chan.org that threatened violence against FBI Director Wray and others. In his message, Woodbury made statements that included the following: “Let’s show them what a [expletive] ‘Nazi’ […] looks like […]. It’s time to burn these [expletive] down and hang them from trees. Hit them where it [expletive] hurts. Hit Chris at his home. Make his family fear stepping one foot outside their [expletive] door.” John Woodbury, 34, of Roswell, Georgia was arrested and arraigned today before U.S. Magistrate Judge Catherine M. Salinas. Woodbury was indicted by a federal grand jury on July 9, 2024. Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial. This case is being investigated by the Federal Bureau of Investigation. Assistant U.S. Attorneys Matthew S. Carrico and Jennifer Keen are prosecuting the case. For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga .


title: Whitefish doctor admits defrauding Medicare and other federal health programs

body_text: MISSOULA — A Whitefish physician accused in connection with alleged schemes to defraud government health programs admitted on Wednesday to falsely billing Medicare and other health programs in a telemedicine scheme that resulted in more than $39 million in false billing, the U.S. Attorney’s Office said today. The defendant, Ronald David Dean, 64, had an initial appearance and pleaded guilty to an information filed on June 24 charging him with conspiracy to commit wire fraud. The charges are part of the Justice Department’s 2024 National Health Care Fraud Enforcement Action. Dean faces a maximum of 10 years in prison, a $1 million fine and three years of supervised release. U.S. District Judge Dana L. Christensen presided. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Sentencing was set for Dec. 4. Dean’s release was continued pending further proceedings. A plea agreement filed in the case calls for Dean to pay at least $780,509 restitution. The government alleged in court documents that Dean, a licensed physician, was paid by a telemedicine company to sign orders for durable medical equipment that patients did not need. Dean then fraudulently charged Medicare, CHAMPVA and the Railroad Retirement Board programs for telemedicine office visits that did not occur. The telemedicine company also used Dean’s information to prescribe unneeded and unnecessary covid tests to patients. The conspiracy ran from about January 2022 until July 2023. In total, Dean’s orders resulted in false billing to government health care programs of more than $39 million. The case was part of a strategically coordinated, two-week nationwide law enforcement action that resulted in criminal charges against 193 defendants for their alleged participation in health care fraud and opioid abuse schemes that resulted in the submission of over $2.75 billion in alleged false billings. The defendants allegedly defrauded programs entrusted for the care of the elderly and disabled to line their own pockets, and the Government, in connection with the enforcement action, seized over $231 million in cash, luxury vehicles, gold, and other assets. The U.S. Attorney’s Office for the District of Montana worked with the Department’s Criminal Division and the following law enforcement organizations to investigate and prosecute the case filed during the enforcement period: the Department of Health and Human Services Office of Inspector General (HHS-OIG), Department of Veterans Affairs Office of Inspector General (VA-OIG), Railroad Retirement Board Office of Inspector General and FBI. XXX


title: Dominican Man Arrested for Drug Trafficking

component: USAO - New Hampshire

body_text: CONCORD – A Dominican man was arrested in connection with a drug trafficking offense, U.S. Attorney Jane E. Young announces. Maikol Yordan Saldivar-Diaz, 28, was charged by complaint with one count of Distribution of Controlled Substances, namely fentanyl and methamphetamine. Saldivar-Diaz was arrested on July 17, 2024, and will appear in federal court in Concord on July 19, 2024. According to the charging documents, Portsmouth Housing Authority notified Portsmouth Police Department of consistent drug activity at the Gosling Meadows Housing Development in Portsmouth, New Hampshire. Investigators were subsequently able to identify Saldivar-Diaz as the source of this drug activity. On three occasions in June and July of 2024, Saldivar-Diaz sold controlled substances to a confidential informant. The first two sales were for a quantity of suspected fentanyl, and the third sale was for a quantity of suspected methamphetamine. Portsmouth Police Department led the investigation. The Drug Enforcement Administration provided valuable assistance. Assistant U.S. Attorney Tiffany Scanlon is prosecuting the case. The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law. ###


title: California Resident Steve H.S. Kim Sentenced For Selling $3.5M In Counterfeit And Substandard Electronics For Use In Military Systems

component: USAO - California, Northern

body_text: OAKLAND – A California man was sentenced to three years and six months in prison for a scheme to defraud the Department of Defense’s (DoD) Defense Logistics Agency (DLA) by selling over $3.5 million worth of fan assemblies to the DLA that were either counterfeit or that he misrepresented were new when in fact they were used or surplus. “Our military must be able to trust that the equipment it is receiving actually reflects what it has purchased,” said U.S. Attorney Ismail Ramsey for the Northern District of California. “Kim fraudulently substituted counterfeit and non-conforming products for the equipment he promised to provide to the government. This sentence should serve as a warning to all vendors that such fraud will not be tolerated.” According to court documents, Steve H.S. Kim, 63, of Alameda County, controlled Company A, which sold fan assemblies to the DLA that were either counterfeit or were used or surplus fan assemblies that Kim claimed were new. To trick the DLA into accepting the fan assemblies, Kim created counterfeit labels—some of which used Company B’s registered trademarks—that he attached to the fan assemblies he sold to the DLA. When the DLA questioned Kim about the origin of the fan assemblies, Kim concealed his scheme by giving the DLA fake tracing documents that he created and often signed using a false identity. Some of these counterfeit fans were installed or intended to be installed with electrical components on a nuclear submarine, a laser system on an aircraft, and a surface-to-air missile system. U.S. Attorney Ismail J. Ramsey for the Northern District of California; Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; Special Agent in Charge Bryan D. Denny of the DoD Office of Inspector General, Defense Criminal Investigative Service (DCIS), Western Field Office; Special Agent in Charge Greg Gross of the Naval Criminal Investigative Service (NCIS) Economic Crimes Field Office; Special Agent in Charge Tatum King of Homeland Security Investigations (HSI); and Special Agent in Charge Keith K. Kelly of the Department of the Army Criminal Investigation Division’s (Army CID) Fraud Field Office made the announcement. DCIS, NCIS, HSI, and Army CID investigated the case. Assistant U.S. Attorney Katherine Lloyd-Lovett for the Northern District of California prosecuted the case together with the DOJ Criminal Division’s Fraud Section Assistant Chief Kyle C. Hankey, Trial Attorney David D. Hamstra, and former Trial Attorney Louis Manzo. Assistant Deputy Chief Adrienne Rose and Senior Counsels Jason Gull and Matthew A. Lamberti of the Criminal Division’s Computer Crime and Intellectual Property Section provided substantial assistance with the investigation.


title: U.S. Attorney Secures 26 Year Prison Sentence for Gambling-Fueled Crime Spree

body_text: ALBUQUERQUE – An Albuquerque man was sentenced to 26 years in federal prison for orchestrating a violent home invasion against his father-in-law and robbing a bank in order to fuel a severe gambling addiction. According to court documents and evidence presented at trial, on September 14, 2021, Marc Candelaria , 36, staged a home invasion targeting his own father-in-law, John Doe, and was assisted by an unknown co-conspirator who acted as the actual intruder. The intruder entered the home undetected late at night and attempted to force John Doe to open a safe at gunpoint. When John Doe was unable to open the safe, the intruder made Doe write a $23,000 check. After writing the check, John Doe was brutally beaten, sustaining serious head injuries that caused him to lose consciousness. John Doe was found the next day by his daughter and transported to the hospital in critical condition. Just hours after the home invasion, Candelaria attempted to deposit the stolen check into his personal bank account, however the bank placed a hold on the check due to what appeared to be two separate handwritings and alerted the victim’s wife to a possibly fraudulent check. On October 30, 2021, Candelaria robbed a Bank of America branch using a typewritten demand note that threatened cartel violence. The bank teller, fearing for his life, gave Candelaria the cash from his register. The investigation revealed Candelaria committed both crimes to fund a severe gambling addiction. Between September 2020 and May 2022, he visited a local casino approximately 169 times, losing large sums of money. On March 27, 2024, Candelaria was convicted by a federal jury of bank fraud. On April 10, 2024, Candelaria entered into a plea agreement on the bank robbery charge. Upon his release from prison, Candelaria will be subject to five years of supervised release. U.S. Attorney Alexander M.M. Uballez and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, made the announcement today. The FBI Albuquerque Field Office investigated this case. Assistant U.S. Attorneys Samuel A. Hurtado and Natasha Moghadam are prosecuted the case . # # #


title: Illegal Alien Sentenced To 24 Months For Illegally Possessing A Firearm

component: USAO - Florida, Middle

body_text: Jacksonville, Florida –United States District Judge Marcia Morales Howard has sentenced Edgar Diaz Aquino (20, Jacksonville) to 24 months in federal prison, for being an illegal alien in possession of a firearm. Aquino pleaded guilty to that offense on March 28, 2024. Following his prison sentence, Aquino will be deported from the United States. According to the court documents, on November 16, 2023, Aquino was involved in an altercation with his girlfriend. During the altercation, Aquino retrieved a Glock pistol with an extended magazine and discharged it five feet away from his girlfriend’s feet. When he was arrested by Jacksonville Sheriff’s Office officers, he admitted to possessing the firearm. Aquino was illegally present in the United States and admitted that he was a Honduran national and crossed into the United States through Mexico on April 2, 2019. Illegal aliens are prohibited under federal law from possessing firearms. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Homeland Security Investigations, and the Jacksonville Sherriff’s Office. The case was prosecuted by Assistant United States Attorney John Cannizzaro. 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: Riverview Man Arrested For COVID-19 Fraud

body_text: Tampa, FL – United States Attorney Roger B. Handberg announces the arrest of David Antonetti (28, Riverview) on an indictment charging him with two counts of wire fraud. If convicted, Antonetti faces up to 20 years in federal prison on each count. According to court records, between March 2021 and October 2021, Antonetti devised a scheme to defraud the Small Business Administration by submitting two false and fraudulent Paycheck Protection Program (PPP) loan applications. PPP loans were one of the sources of economic relief provided for by the Coronavirus Aid, Relief and Economic Security (CARES) Act. Antonetti made false representations in both of his PPP applications to secure the loans. The loan proceeds were later electronically transferred into his bank account. An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty. In May 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The task force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. This case was investigated by the Federal Housing Finance Agency – Office of Inspector General, the Federal Bureau of Investigation, and the U.S. Small Business Administration – Office of Inspector General. It is being prosecuted by Special Assistant United States Attorney Chris Poor.


title: Four Men Plead Guilty to Defrauding Global Financial Services Company of Over Two Million Dollars

component: USAO - New York, Eastern

body_text: Between June 4, 2024 and today, in federal court in Central Islip, four defendants, Edward Hernandez, Christopher Flagg, Daquan Lloyd and Corey Ortiz pleaded guilty to money laundering conspiracy in connection with a scheme to steal millions of dollars from a global financial services company based in Menlo Park, California. The proceedings were held before United States District Judge Gary R. Brown. When sentenced, each defendant faces a maximum sentence of 20 years’ imprisonment, restitution of up to $2,087,164, and forfeiture between $56,390 and $700,425. Breon Peace, United States Attorney for the Eastern District of New York and Christie M. Curtis, Acting Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI) announced the guilty pleas. “Each defendant was convicted of their roles in a sprawling and complex nationwide scheme organized from Long Island to steal millions of dollars that were intended for legitimate investors and launder the proceeds of their crime,” stated United States Attorney Breon Peace. “Today’s guilty plea demonstrates how this Office will swiftly bring to justice those who fraudulently manipulate the financial system, no matter how complex the scheme.” Mr. Peace expressed his appreciation to the Securities and Exchange Commission for their assistance with the case. Between December 2018 and January 2023, the defendants engaged in a scheme to defraud a global financial services company of millions of dollars of short-term cash advances, called “Instant Deposits.” The Instant Deposits were intended to enable legitimate investors to immediately trade in their brokerage accounts without having to wait for an incoming wire transfer to clear. To gain access to millions of dollars of Instant Deposits, which were typically capped at $5,000 per account, the defendants established a multi-state recruitment network through which the defendants opened hundreds of fraudulent accounts held in the names of straw account holders, or “Losing Accounts.” Using the Instant Deposits available to the Losing Accounts, the defendants repeatedly bought thinly traded and highly speculative stock options at above-market prices. Selecting these virtually worthless stock options enabled the defendants to match their bids in the Losing Accounts with offers to sell the same overpriced stock options initiated by other brokerage accounts, or “Winning Accounts,” that were also controlled by the defendants and their conspirators. In effect, the defendants transferred the Instant Deposits from the Losing Accounts to the Winning Accounts by way of fraudulent securities transactions. Meanwhile, the incoming wire transfers supposed to cover the Instant Deposits in the Losing Accounts had purposely been initiated by the defendants from bank accounts that had little or no balance. These wire transfers, therefore, failed to clear, but not before the defendants drained the Instant Deposits, leaving the accounts with negative balances and worthless options. The defendants then laundered the stolen funds through multiple electronic banking platforms. In total, the defendants recruited dozens of individuals to engage in their fraudulent scheme and stole more than $2 million. In July 2022, Mr. Peace was selected as the Chairperson of the White Collar Fraud subcommittee for the Attorney General’s Advisory Committee (AGAC) . As the leader of the subcommittee, Mr. Peace plays a key role in making recommendations to the AGAC to facilitate the prevention, investigation and prosecution of various financially motivated, non-violent crimes including securities fraud and money laundering. The government’s case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorneys Jonathan P. Lax and Sara K. Winik are in charge of the prosecution with the assistance of Paralegal Specialists Jacob Menz, Liam McNett and Sarah Burn. The Defendants : EDUARDO HERNANDEZ (also known as “Ghost”) Age: 33 Lindenhurst, New York CHRISTOPHER FLAGG (also known as “Venus”) Age: 28 Copiague, New York DAQUAN LLOYD (also known as “Payday”) Age: 29 Copiague, New York COREY ORTIZ (also known as “Jefe”) Age: 29 Greensboro, North Carolina E.D.N.Y. Docket No. 23-CR-428 (GRB)


title: Rhode Island Man Sentenced To 2 Years In Federal Prison For Making Fake Bomb Threat On Airplane

body_text: Jacksonville, Florida – U.S. District Judge Harvey E. Schlesinger has sentenced Evan Sims (41, Rhode Island) to two years in federal prison, followed by three years of supervised release, for false information and threats regarding an explosive on an airplane. Sims has been in custody since his arrest on December 6, 2023. The court also ordered Sims to pay $25,478 in restitution to Breeze Airways. Sims pled guilty on March 5, 2024. According to court documents, Sims was traveling on a flight from Orlando, Florida to Providence, Rhode Island on December 5, 2023. While seated on the plane, prior to takeoff, Sims began arguing with his travel companion. Sims told his travel companion that he had never heard of the airline for the flight and that he hoped the airplane did not “go down.” Sims stated that they would be “gone with the wind.” During boarding and the airline safety briefing, Sims made comments to his travel companion about needing to use the emergency doors and that the windows looked like they had not been used. Sims also told his travel companion that he hoped they did not have to use the windows. Further, Sims questioned the flight crew regarding the emergency life raft that was in the overhead storage compartment. Sims’s travel companion and the surrounding passengers were uncomfortable with Sims’s statements and Sims’s travel companion asked Sims to stop making his comments. As the flight began the initial ascent into the air, Sims partially stood up in his seat and exclaimed that he wanted to get off the plane. While the flight was airborne, Sims stated approximately two times that his travel companion had a bomb on the plane. Thereafter, due to Sims’s repeated disturbances and escalating behavior, the flight was diverted to the Jacksonville International Airport. Bomb detection dogs were deployed and searched the plane but did not locate a bomb. This case was investigated by the Transportation Security Administration, Jacksonville Aviation Authority Airport Police Department, and the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Ashley Washington.


title: Former Partner at Broker-Dealer Firm Indicted for Role in $3.4 Million Insider Trading Scheme

component: USAO - New Jersey

body_text: NEWARK, NJ. – A former partner at a New Jersey broker-dealer firm was arraigned on charges of engaging in an insider trading scheme that netted millions of dollars in illegal trading profits, U.S. Attorney Philip R. Sellinger announced today. Christopher Matthaei, 44, of Brielle, New Jersey, was arraigned before U.S. District Judge Georgette Castner in Trenton federal court on July 17, 2024. Matthaei was indicted by a federal grand jury on June 21, 2024, with two counts of securities fraud conspiracy (Counts One and Nine) and seven counts of securities fraud (Counts Two through Eight). According to documents filed in this case and statements made in court: Matthaei was a partner and senior salesperson at a Charlotte, North Carolina-based broker-dealer with offices in Red Bank, New Jersey. From May 2020 through February 2021, Matthaei illegally traded on material, non-public information (MNPI) that he received from Sean Wygovsky, a conspirator and friend who worked at a large Canadian asset management firm. The MNPI pertained to Special Purpose Acquisition Companies (SPACs) that were engaged in confidential merger negotiations and shared information with the asset management firm as a potential investor in the SPAC deals. Wygovsky received this MNPI every time a SPAC was placed on his firm’s confidential restricted list, meaning that the firm’s employees were prohibited from buying or selling the SPACs’ securities, either personally or via another person or third party. Despite knowing about these trading restrictions, Wygovsky shared the MNPI with Matthaei, who then purchased securities in the SPACs using his personal brokerage accounts. In June 2020, Matthaei paid for a private plane and extended trip with Wygovsky and their families to a luxury resort on the island of St. Barts, where they continued to engage in the insider trading scheme. In total, Matthaei made approximately $3.4 million in illegal trading profits from the insider trading scheme. Wygovsky pleaded guilty on May 25, 2023, before Judge Castner to an information charging him with securities fraud in connection with the insider trading scheme. The securities fraud conspiracy charged in Count One carries a maximum potential penalty of five years in prison and a $250,000 fine; the securities fraud counts charged in Counts Two through Seven each carry a maximum potential penalty of 20 years in prison and a $5 million fine; the securities fraud count charged in Count Eight and the securities fraud conspiracy charged in Count Nine each carry a maximum potential penalty of 25 years in prison and a $250,000 fine. The U.S. Securities and Exchange Commission previously filed a civil complaint against Matthaei based on the same conduct. U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to the indictment. The government is represented by Assistant U.S. Attorneys Jennifer Kozar and Shontae D. Gray of the U.S. Attorney’s Office Economic Crimes Unit in Newark. The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty. matthaei.indictment.pdf


title: Airline Employee Indicted For Attempted Coercion, Enticement Of  A Minor And Possession Of Child Sexual Abuse Material

body_text: Tampa, Florida –United States Attorney Roger B. Handberg announces the return by a grand jury of an indictment charging Brian Todd Walker (51, Bradenton) with attempted coercion and enticement of a minor to engage in sexual activity and possession of child sexual abuse material. If convicted on all counts, Walker faces a maximum penalty of life in federal prison. According to court documents, Walker contacted a 12-year-old female living in his community over the social media application, TikTok. Walker engaged in sexual conversations with who he believed to be the 12-year-old female and attempted to coerce and entice her to engage in sexual activity. Within the conversations, Walker shared his attraction to 12-year-old females and expressed his desire to meet in person. On June 24, 2024, Walker travelled to meet the minor in person at the community pool and was arrested at the scene. Law enforcement seized a cell phone from Walker and located images of minors under the age of 12 engaged in sexually explicit conduct. An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty. This case was investigated by the Federal Bureau of Investigation. It will be prosecuted by Assistant United States Attorney Courtney Derry. This 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 United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.


title: Milton Man Charged with Stolen Firearms Offenses

component: USAO - Vermont

body_text: Burlington, Vermont – The United States Attorney’s Office for the District of Vermont stated that John Turner, 53, of Milton, Vermont, was indicted on federal charges alleging that Turner conspired with others in July 2019 to possess stolen firearms. He was arrested on those charges and arraigned on the indictment on July 17, 2024. He was released on conditions. If convicted, Turner faces a maximum possible penalty of 20 years in prison and fines of up to $500,000. According to court records, Tuner conspired with others to steal several firearms from a residence in Colchester, Vermont. Those firearms included four handguns. The indictment alleges that one of the handguns was used to murder a man on July 11, 2019. Kory George and Angela Auclair have been charged in Vermont state court with conspiring to murder David Auclair on July 11, 2019. George has pleaded guilty to those charges and been sentenced. Auclair is still facing a state murder conspiracy charge. The indictment is an accusation only and the defendant is presumed innocent until and unless proven guilty. If convicted, any sentence will be determined by the U.S. District Court with guidance from the advisory United States Sentencing Guidelines and the statutory sentencing factors. The investigation resulting in these charges was led by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Vermont State Police. Assistant United States Attorney Paul Van de Graaf is handling the prosecution for the government. Turner is represented by Karen Shingler, Esq. This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. For more information about Project Safe Neighborhoods, please visit Justice.gov/PSN .


title: Justice Department sues Southwest Key for sexual abuse and harassment of children in shelters

component: USAO - Texas, Southern

body_text: HOUSTON – The Justice Department has filed a lawsuit against Southwest Key Programs Inc., a Texas-based nonprofit that provides housing to unaccompanied children who are encountered at the southern land border of the United States. The lawsuit alleges Southwest Key, through its employees, has engaged in a pattern or practice of sexual abuse and harassment of unaccompanied children in Southwest Key shelters in violation of the Fair Housing Act. “In search of the American Dream, children often endure perilous journeys on their migration north to the southern border. The sexual harassment alleged in the complaint would destroy any child’s sense of safety turning what was an American Dream into a nightmare,” said U.S. Attorney Alamdar S. Hamdani of the SDTX. “We look forward to working together with the Civil Rights Division (CRD) and the U.S. Attorney’s Office for the Western District of Texas (WDTX) to provide justice for the victims who allegedly suffered harm in Southwest Key’s shelters.” “Sexual harassment of children in residential shelters, where a child should be safe and secure, is abusive, dehumanizing and unlawful,” said Assistant Attorney General Kristen Clarke of the Justice Department’s CRD. “Sexual abuse of children is a crisis that we can’t ignore or turn a blind eye to. This lawsuit seeks relief for children who have been abused and harmed, and meaningful reforms to ensure no child in these shelters is ever subjected to sexual abuse again.” “Every child has the right to feel safe and secure in their dwelling, including in shelter care,” said U.S. Attorney Jaime Esparza for the WDTX. “This lawsuit seeks to provide a pathway for justice and healing for these children, who are among the most vulnerable in our society.” “Department of Health and Human Services (DHHS) has a zero-tolerance policy for all forms of sexual abuse, sexual harassment, inappropriate sexual behavior and discrimination,” said DHHS Secretary Xavier Becerra. “The Department of Justice’s (DOJ) complaint against Southwest Key raises serious pattern or practice concerns. DHHS will continue to work with DOJ and oversight agencies to hold its care-giving programs like Southwest Key accountable. And we will continue to closely evaluate our assignment of children into care-giving programs to ensure the safety and well-being of every child in DHHS custody.” Southwest Key operates 29 shelters that provide temporary housing for unaccompanied children in Texas, Arizona and California, and is the largest housing provider for unaccompanied children in the United States. Southwest Key receives grants from the DHHS Office of Refugee Resettlement (ORR) to provide housing and other care for unaccompanied children at these shelters. Unaccompanied children are minors who enter the United States without parents or other legal guardians and without lawful immigration status in the United States. The shelters are the children’s homes until they are reunited with their immediate families or placed with a relative or other vetted sponsor while their immigration cases proceed. The lawsuit, filed yesterday in the U.S. District Court for the WDTX, alleges that, from 2015 through at least 2023, multiple Southwest Key employees subjected children in their care to severe or pervasive sexual harassment that has included, among other things, sexual contact and inappropriate touching, solicitation of sex acts, solicitation of nude photos, entreaties for inappropriate relationships and sexual comments. The complaint further alleges that Southwest Key took insufficient action to prevent sexual harassment of the children in its care, failed to consistently follow federal requirements for preventing, detecting and reporting abuse including sexual harassment, failed to take appropriate or sufficient action to protect the children in its care and discouraged children from disclosing sexual harassment in violation of federal requirements, despite ORR having issued multiple corrective actions to Southwest Key. The department’s lawsuit seeks monetary damages to compensate children the alleged harassment children harmed, a civil penalty to vindicate the public interest and a court order barring future discrimination and requiring Southwest Key to take appropriate steps to prevent such harassment in the future. Individuals who believe that they may have been victims of sexual harassment or abuse at Southwest Key shelters or who have other information that may be relevant to this case, may contact the Justice Department’s housing discrimination tip line at 1-833-591-0291. For Spanish dial “2,” then dial “2” for sexual harassment cases and dial “3” for the Southwest Key lawsuit mailbox. For English dial “1,” then dial “2” for sexual harassment cases and dial “9” for the Southwest Key lawsuit mailbox. Individuals can also email the Justice Department . The CRD leads the Justice Department’s Sexual Harassment in Housing Initiative in coordination with U.S. Attorneys’ Offices across the country. The initiative seeks to address and raise awareness about sexual harassment by people who have control over housing. Since launching the initiative in October 2017, the department has filed 43 lawsuits alleging sexual harassment in housing and recovered over $17 million for victims of such harassment . The Fair Housing Act prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status. More information about the Civil Rights Division and the laws it enforces is available here .


title: Woman Admits Multimillion-Dollar COVID-19 Relief Program Fraud Scheme

body_text: CAMDEN, N.J. – A North Carolina woman admitted conspiring to submit fraudulent applications leading to the issuance of 29 Paycheck Protection Program (PPP) loans totaling more than $3.5 million, U.S. Attorney Philip R. Sellinger announced today. Lisa Smith, 61, of Cornelius, North Carolina, pleaded guilty before U.S. District Judge Karen M. Williams in Camden federal court on July 17, 2024, to an information charging her with one count of bank fraud conspiracy. According to documents filed in these cases and statements made in court: In early 2021, Smith submitted PPP loan applications for two companies that she controlled. The applications included fake bank statements and fake IRS tax forms, and significantly overstated the companies’ number of employees and payroll expenses. Smith obtained $125,000 in PPP loans based on these fraudulent applications. Smith and her conspirators recruited individuals who owned companies with little or no operations to apply for PPP loans. Smith helped the recruited individuals submit PPP loan applications that contained fake bank statements and fake IRS tax forms, and that contained materially false representations about the companies’ number of employees and payroll expenses. Based on these fraudulent PPP loan applications, more than 25 PPP loans totaling more than $3.5 million were approved and funded. Smith received a percentage of the loan proceeds as compensation for her role. The count of conspiracy to commit bank fraud is punishable by a maximum of 30 years in prison and a $1 million fine. Sentencing is scheduled for Nov. 21, 2024. U.S. Attorney Sellinger credited special agents of the Federal Deposit Insurance Corporation – Office of the Inspector General, New York Region, under the direction of Special Agent in Charge Patricia Tarasca; special agents of the FBI’s South Jersey Resident Agency, under the direction of Special Agent in Charge Wayne A. Jacobs in Philadelphia; special agents of the Social Security Administration, Office of the Inspector General, Boston-New York Field Division, under the direction of Acting Special Agent in Charge Bradley Parker; and special agents of the U.S. Department of Labor, Office of the Inspector General, New York Region, under the direction of Special Agent in Charge Jonathan Mellone, with the investigation leading to the guilty plea. The government is represented by Assistant U.S. Attorney Daniel A. Friedman and Jason M. Richardson, Attorney in Charge of the U.S. Attorney’s Office’s Camden Office. smith.information.pdf


title: Gang Member Sentenced to 2 Years in Prison for Illegal Firearms Trafficking

component: USAO - California, Eastern

body_text: FRESNO , Calif. — Juan Banda Jr., 44, of Selma, was sentenced yesterday by U.S. District Judge Dale A. Drozd to 2 years in prison for engaging in the business of manufacturing and dealing firearms without a license, U.S. Attorney Phillip A. Talbert announced. According to court documents, between Feb. 1, 2022, and March 15, 2023, Banda and Arthur Garcia, 22, of Selma, engaged in the business of dealing and manufacturing firearms. He engaged in the repetitive purchase and resale of firearms for the principal purpose of profit and did not possess a valid Federal Firearms License. Banda admitted membership in the Vario Selma Rifa Bulldog gang when he was arrested. On March 15, 2023, a search warrant was executed at Banda’s residence and the following was seized: three completed AR-15 style rifles, a Springfield XD 9, a gray and black privately-manufactured handgun, four privately manufactured rifle lower receivers with trigger assemblies, as well as firearm parts and ammunition. Messages revealed dozens more firearms previously manufactured and trafficked by Banda, many of which were earmarked for distribution to gang members. This case is the product of an investigation by the FBI, the Multi-Agency Gang Enforcement Consortium (MAGEC), and the Fresno Police Department. Assistant U.S. Attorney Robert Veneman-Hughes is prosecuting the case. Garcia is scheduled for a status conference on Aug. 28, 2024. The charges against him are only allegations; he is presumed innocent until and unless proven guilty beyond a reasonable doubt. 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 U.S. Department of Justice launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. For more information about Project Safe Neighborhoods, please visit Justice.gov/PSN .


title: Drug stash house operator heads to prison

body_text: McALLEN, Texas – A 47-year-old Pharr resident has been sentenced for his role in operating a drug stash house in north McAllen, announced U.S. Attorney Alamdar S. Hamdani. Ivan Garza pleaded guilty Dec. 20, 2023. U.S. District Judge John D. Rainey has now ordered Garza to serve 87 months in federal prison to be immediately followed by four years of supervised release. At the hearing, the court heard arguments regarding the possession of firearms in connection to the protection of drugs and drug money. In handing down the sentence, Judge Rainey noted Garza was not merely present at a drug stash house. On Feb. 23, 2021, law enforcement responded to gunfire at a residence located in a north McAllen neighborhood. Upon arrival at the scene, authorities determined armed masked men had pulled Garza out of a black Chevy SUV as he was leaving the residence. Law enforcement also learned that others at the residence opened fire from a balcony at the masked men as they fled the scene in Garza’s SUV. In response, authorities made contact with Garza and other individuals staying at the residence. Following a search warrant, authorities seized three handguns, bundles of money totaling $268,000 and four kilograms of cocaine. Video from the residence’s cameras revealed Garza and others moved several of the seized cocaine bundles just before the masked men struck. The investigation also revealed the black Chevy SUV the masked men took from Garza contained cocaine. Garza will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future. The McAllen Police Department and FBI conducted the investigation. Assistant U.S. Attorney Jesse Salazar prosecuted the case.


title: Justice Department Sues Southwest Key for Sexual Abuse and Harassment of Children in Shelters

component: Civil Rights Division

body_text: The Justice Department has filed a lawsuit against Southwest Key Programs Inc. (Southwest Key), a Texas-based nonprofit that provides housing to unaccompanied children who are encountered at the southern land border of the United States. The lawsuit alleges that Southwest Key, through its employees, has engaged in a pattern or practice of sexual abuse and harassment of unaccompanied children in Southwest Key shelters in violation of the Fair Housing Act. “Sexual harassment of children in residential shelters, where a child should be safe and secure, is abusive, dehumanizing and unlawful,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Sexual abuse of children is a crisis that we can’t ignore or turn a blind eye to. This lawsuit seeks relief for children who have been abused and harmed, and meaningful reforms to ensure no child in these shelters is ever subjected to sexual abuse again.” “HHS has a zero-tolerance policy for all forms of sexual abuse, sexual harassment, inappropriate sexual behavior, and discrimination,” said U.S. Department of Health and Human Services (HHS) Secretary Xavier Becerra. “The U.S. Department of Justice’s complaint against Southwest Key raises serious pattern or practice concerns. HHS will continue to work with the Justice Department and oversight agencies to hold its care-giving programs like Southwest Key accountable. And we will continue to closely evaluate our assignment of children into care-giving programs to ensure the safety and well-being of every child in HHS custody.” “Every child has the right to feel safe and secure in their dwelling, including in shelter care,” said U.S. Attorney Jaime Esparza for the Western District of Texas. “This lawsuit seeks to provide a pathway for justice and healing for these children, who are among the most vulnerable in our society.” “In search of the American Dream, children often endure perilous journeys on their migration north to the southern border,” said U.S. Attorney Alamdar S. Hamdani for the Southern District of Texas. “The sexual harassment alleged in the complaint would destroy any child’s sense of safety, turning what was an American Dream into a nightmare. We look forward to working together with the Civil Rights Division and the U.S. Attorney’s Office for the Western District of Texas to provide justice for the victims who allegedly suffered harm in Southwest Key’s shelters.” Southwest Key operates 29 shelters that provide temporary housing for unaccompanied children in Texas, Arizona and California, and is the largest housing provider for unaccompanied children in the United States. Southwest Key receives grants from the HHS Office of Refugee Resettlement (ORR) to provide housing and other care for unaccompanied children at these shelters. Unaccompanied children are minors who enter the United States without parents or other legal guardians and without lawful immigration status in the United States. The shelters are the children’s homes until they are reunited with their immediate families or placed with a relative or other vetted sponsor while their immigration cases proceed. The lawsuit, filed yesterday in the U.S. District Court for the Western District of Texas, alleges that, from 2015 through at least 2023, multiple Southwest Key employees subjected children in their care to severe or pervasive sexual harassment that has included, among other things, sexual contact and inappropriate touching, solicitation of sex acts, solicitation of nude photos, entreaties for inappropriate relationships and sexual comments. The complaint further alleges that Southwest Key took insufficient action to prevent sexual harassment of the children in its care, failed to consistently follow federal requirements for preventing, detecting and reporting abuse including sexual harassment, failed to take appropriate or sufficient action to protect the children in its care and discouraged children from disclosing sexual harassment in violation of federal requirements, despite ORR having issued multiple corrective actions to Southwest Key. The department’s lawsuit seeks monetary damages to compensate the children harmed by the alleged harassment, a civil penalty to vindicate the public interest and a court order barring future discrimination and requiring Southwest Key to take appropriate steps to prevent such harassment in the future. Individuals who believe that they may have been victims of sexual harassment or abuse at Southwest Key shelters or who have other information that may be relevant to this case, may contact the Justice Department’s housing discrimination tip line at 1-833-591-0291. For Spanish dial “2”; then dial “2” for sexual harassment cases; and dial “3” for the Southwest Key lawsuit mailbox. For English dial “1”; then dial “2” for sexual harassment cases; and dial “9” for the Southwest Key lawsuit mailbox. Individuals can also email the Justice Department at southwest.key@usdoj.gov or report through our online portal at civilrights.justice.gov/link/southwestkey . The Justice Department’s Sexual Harassment in Housing Initiative is led by the Civil Rights Division, in coordination with U.S. Attorneys’ Offices across the country. The initiative seeks to address and raise awareness about sexual harassment by people who have control over housing. Since launching the initiative in October 2017, the department has filed 43 lawsuits alleging sexual harassment in housing and recovered over $17 million for victims of such harassment. The Fair Housing Act prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status. More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt .


title: Former Government Official Arrested for Acting as Unregistered Agent of South Korean Government

body_text: Note : View the indictment here. Sue Mi Terry, 54, of New York, New York, was arrested yesterday and presented on criminal charges related to offenses under the Foreign Agents Registration Act (FARA). According to court documents, after leaving U.S. government service and for more than a decade, Terry worked as an agent of the government of the Republic of Korea (ROK), commonly known as South Korea, without registering as a foreign agent with the Attorney General, as required by law. As covertly directed by ROK government officials, Terry publicly advocated ROK policy positions, disclosed non-public U.S. government information to ROK intelligence officers and enabled ROK officials to gain access to U.S. government officials. In exchange for these actions, ROK intelligence officers provided Terry with luxury goods, expensive dinners and more than $37,000 in funding for a public policy program focusing on Korean affairs that Terry controlled. From in or about 2001 to in or about 2011, Terry served in a series of positions in the U.S. government, including as an analyst on East Asian issues for the Central Intelligence Agency, as the Director for Korea, Japan and Oceanic Affairs for the White House National Security Council and as the Deputy National Intelligence Officer for East Asia at the National Intelligence Council. Since leaving government service in or about 2011, Terry has worked at academic institutions and think tanks in New York City and Washington, D.C. Terry has made media appearances, published articles and hosted conferences as a policy expert specializing in, among other things, South Korea, North Korea and various regional issues impacting Asia. Terry has also testified before Congress on at least three occasions regarding the U.S. government’s policy toward Korea. As she admitted in a voluntary interview with the FBI in 2023, Terry served as a valuable “source” of information for the ROK National Intelligence Service (ROK NIS), the primary intelligence agency for the ROK. For example, in or about June 2022, Terry participated in a private, off-the-record group meeting with a U.S. Secretary level official regarding the U.S. Government’s policy toward North Korea. Immediately after the meeting, Terry’s primary ROK NIS point of contact, or handler, picked up Terry in a car with ROK Embassy diplomatic plates. While in the car, Terry passed her handler detailed handwritten notes of her meeting, which were written on the letterhead of a think tank where Terry had recently worked. Terry’s handler then photographed the notes while still sitting in the car with Terry. Weeks later, at the request of her ROK NIS handler, Terry hosted a happy hour for Congressional staff. Although the happy hour was ostensibly on behalf of the think tank where Terry worked, the ROK NIS paid for it with Terry’s knowledge. Terry’s handler attended the event and posed as a diplomat, mingling with Congressional staff without disclosing that he was, in fact, an ROK intelligence officer. ROK government rewarded Terry for her services. For example, Terry’s ROK NIS handlers gifted her a $2,950 Bottega Veneta handbag and a $3,450 Louis Vuitton handbag, both of which Terry selected during shopping trips with her handlers. One of Terry’s ROK NIS handlers also gifted her a $2,845 Dolce & Gabbana coat. In addition to luxury goods, Terry’s ROK NIS handlers provided her expensive meals, including at Michelin-starred restaurants. Terry’s ROK NIS handlers also deposited approximately $37,000 into an unrestricted “gift” account that Terry controlled at the think tank where she worked. In addition, ROK government officials paid Terry to write articles in both the U.S. and Korean press conveying positions and phrases dictated by the ROK government. Terry is charged with one count of conspiracy to violate FARA and one count of failure to register under FARA. If convicted, she faces a maximum penalty of 10 years in prison. If convicted, a federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division, U.S. Attorney Damian Williams for the Southern District of New York and Executive Assistant Director Robert R. Wells of the FBI’s National Security Branch made the announcement. The FBI’s Counterintelligence Division and New York Field Office are investigating the case with assistance from the FBI Washington Field Office. Assistant U.S. Attorneys Kyle A. Wirshba, Alexander Li and Sam Adelsberg for the Southern District of New York are prosecuting the case, with assistance from Trial Attorney Christopher M. Rigali of the National Security Division’s Counterintelligence and Export Control Section. A criminal complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.


title: Wadesboro Man In Possession Of A Stolen Firearm Is Sentenced To Prison

component: USAO - North Carolina, Western

body_text: CHARLOTTE, N.C. – U.S. Attorney Dena J. King announced that Patrick Taylor, 26, of Wadesboro, N.C., was sentenced to 10 years in prison on Tuesday, followed by three years of supervised release for possession of a stolen firearm by a felon, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. This sentence will be served in conjunction with related offenses for which Taylor is currently serving state terms of imprisonment. Bennie Mims, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, and Chief J. Bryan Gilliard of the Monroe Police Department (MPD), join U.S. Attorney King in making today’s announcement. According to court documents and the sentencing hearing, on June 6, 2022, MPD officers received information that Taylor was driving a stolen vehicle in the Monroe area. MPD officers located the vehicle and attempted to conduct a vehicle stop. Court documents show that the vehicle failed to stop and instead increased its speed, driving around other vehicles and through a median. Eventually, the vehicle drove through a grassy area before crashing. When the vehicle came to a stop, Taylor jumped out and fled into a wooded area. MPD officers pursued on foot until they lost sight of Taylor. According to court records, law enforcement located Taylor in a nearby field and the defendant was subsequently arrested. Once Taylor was apprehended, court documents show that law enforcement located a firearm near where Taylor had been located. During the investigation, law enforcement determined that Taylor had stolen the firearm from another individual a few days prior, and that the firearm had been reported stolen. On December 20, 2023, Taylor pleaded guilty to possession of a stolen firearm. Taylor will remain in federal custody until he is transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility. In making today’s announcement, U.S. Attorney King commended ATF and the Monroe Police Department for their investigation of the case and thanked the Union County Sheriff’s Office for their invaluable assistance. Special Assistant U.S. Attorney (SAUSA) William Wiseman of the U.S. Attorney’s Office in Charlotte prosecuted the case. Mr. Wiseman is a state prosecutor with the office of the 26 th Prosecutorial District and was assigned by District Attorney Spencer Merriweather to serve as a SAUSA with the U.S. Attorney’s Office in Charlotte. Mr. Wiseman is sworn in both state and federal courts. The SAUSA position is a reflection of the partnership between the office of the 26 th Prosecutorial District and the United States Attorney’s Office. In July 2022, the U.S. Attorney’s Office launched Think Again , an informational campaign to educate the public on how to prevent illegal firearms from getting into the wrong hands. The U.S. Attorney’s Office has partnered with the ATF in this initiative, in an effort to reduce gun-induced violence and to increase reporting of illegal firearms. The campaign encourages the public to submit an anonymous tip about illegal firearms and other criminal activity to the ATF by calling 1-888-ATF-TIPS (1-888-283-8477), via text at 63975, or online at WWW.ATF.GOV/ATF-TIPS . For additional information about our Think Again initiative, please visit our website . You can view our Think Again Public Service Announcements here .


title: Fact Sheet: Justice Department Improves Access to the Immigration Court System

component: Executive Office for Immigration Review

body_text: As part of its ongoing efforts to increase and improve access to the immigration court system, the Executive Office for Immigration Review (EOIR) is creating a new leadership position within EOIR’s Office of the Director focused on improving access to the immigration system and finding innovative ways to increase representation rates for noncitizens in immigration court. This new role will serve as EOIR’s public facing point of contact for government and public stakeholders with business before, or interest in, EOIR. The new leadership role will also work to amplify interagency immigration access initiatives by proactively communicating information about available immigration services across government agencies as well as work with other government agencies to determine how best to increase access to the immigration court system as a whole. They will also serve as a central coordinator for feedback on access and representation concerns in the immigration court system and lead efforts to design responsive programming to address legal access concerns. EOIR also continues to expand on its ongoing access initiatives, including: Respondent Access Portal: In July, EOIR announced the launch of the Respondent Access Portal , a secure online platform that allows unrepresented noncitizens with proceedings before EOIR to view case information and scheduled hearings, download their electronic case record, and file documents directly with the immigration court. The portal provides unprecedented ease of access to immigration court proceedings for unrepresented noncitizens, improving transparency and helping noncitizens better navigate the immigration court system. Attorney of the Day Program: In this program, licensed attorneys provide unrepresented noncitizens in immigration court with general information about immigration court proceedings and relief options and attend preliminary hearings. Attorneys of the Day may be volunteers, legal service providers, or law school clinicians assisted by student practitioners. Attorneys of the Day may also explain immigration court forms and how to seek pro bono legal resources. By the end of FY24, EOIR will expand the Attorney of the Day Program to three additional courts, Hyattsville, New York-Varick Street, and Atlanta-Peachtree. Attorney of the Day is currently available in San Francisco, New Orleans, and Chicago. Law School Working Group: EOIR’s Law School Working Group facilitates law school clinic representation in immigration court. The Working Group activities include holding merits hearings during academic semesters, and increasing student engagement at immigration court hearings, including as Friends of the Court and through limited representation. Over the next few months, the Law School Working Group will meet with law school representatives in DC and surrounding areas, Philadelphia, San Diego, Los Angeles, and San Francisco, in order to expand these efforts. Model Hearing Program: EOIR’s Model Hearing Program provides current and future immigration law practitioners with substantive and practical information about practices and procedures in immigration court. The Model Hearing Program encompasses a wide range of resources and events, including live Model Hearing Program events at immigration courts, recorded model hearings and substantive law seminars available on demand, and information about the immigration court system available through the Immigration Court Online Resource website. Through the Model Hearing Program, EOIR has provided approximately 3,000 individuals with substantive training on immigration law as well as live practical training on representing noncitizens in immigration court. EOIR plans to hold another live Model Hearing Program session in September.


title: Prior Felon Sentenced To 120 Months In Federal Prison For Drug Offense And Possession Of A Firearm

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

body_text: TALLAHASSEE, FLORIDA – Adam Joseph King, 42, of Tallahassee, Florida, was sentenced to 120 months in federal prison, after previously pleading guilty for distribution of 5 grams or more of methamphetamine and possession of a firearm by a convicted felon. Jason R. Coody, United States Attorney for the Northern District of Florida, announced the sentence. “Methamphetamine distribution is a scourge on large and small communities of our district,” said U.S. Attorney Coody. “With our dedicated law enforcement partners, we are committed to identifying and aggressively prosecuting those who threaten our citizens’ health and safety by distributing such addictive, controlled substances. This sentence acknowledges the defendant’s continued criminal conduct and sends a straightforward message that there are real and severe consequences for federal firearm and drug offenses.” Court documents reflect that King, and others, were actively receiving and distributing pound quantities of high-purity methamphetamine in the Northern District of Florida, as well as illegally selling firearms. During targeted drug operations, between September 2022 and March 2023, King sold smaller quantities of high-purity methamphetamine and expressed his willingness to illegally obtain and sell firearms. In March 2023, King sold investigative agents approximately an ounce of methamphetamine and a semi-automatic handgun. “Methamphetamine is a dangerous and addictive drug that destroys families and devastates communities,” said DEA Miami Field Division Special Agent in Charge Deanne L. Reuter. “DEA remains committed to working with our local, state, and federal law enforcement partners to thoroughly investigate those who distribute this poison in our communities and hold them accountable for their actions.” King’s prison sentence will be followed by 8 years of supervised release. The case was investigated by the Drug Enforcement Administration and Bureau of Alcohol, Tobacco, and Firearms, in coordination with the Tallahassee Police Department, Leon County Sheriff’s Office, and the North Florida High Intensity Drug Task Force (HIDTA). Assistant United States Attorney Eric Mountin prosecuted the case. This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. As part of its PSN strategy, the United States Attorney’s Office is encouraging everyone to lock their car doors, particularly at night. Burglaries from unlocked automobiles are a significant source of guns for criminals in the Northern District of Florida. Please do your part and protect yourself by locking your car doors. The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office for the Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html .


title: Former Government Official Arrested For Acting As Unregistered Agent Of South Korean Government

component: USAO - New York, Southern

body_text: Damian Williams, the United States Attorney for the Southern District of New York, and Christie M. Curtis, the Acting Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced the unsealing of an Indictment yesterday charging SUE MI TERRY with offenses under the Foreign Agents Registration Act (“FARA”). TERRY was arrested on July 16, 2024, in New York, New York, and presented before U.S. Magistrate Judge Robert W. Lehrburger. The case is assigned to U.S. District Judge Lorna G. Schofield. U.S. Attorney Damian Williams said: “As alleged, Sue Mi Terry, a former CIA and White House employee, subverted foreign agent registration laws in order to provide South Korean intelligence officers with access, information, and advocacy. Terry allegedly sold out her positions and influence to the South Korean government in return for luxury handbags, expensive meals, and thousands of dollars of funding for her public policy program. The charges brought should send a clear message to those in public policy who may be tempted to sell their expertise to a foreign government to think twice and ensure you are in accordance with the law.” FBI Acting Assistant Director in Charge Christie M. Curtis said: “Compromising national security endangers every American by weakening our defenses and putting lives at risk. Sue Mi Terry, a former CIA and White House official, was arrested for allegedly acting as an unregistered agent for South Korea. For over a decade, despite repeated warnings, Terry allegedly exploited her think tank roles to advance a foreign agenda. As alleged, she disclosed sensitive U.S. government information to South Korean intelligence and used her position to influence U.S. policy in favor of South Korea… for money and luxury gifts. Her alleged actions posed a severe threat to national security. This arrest sends a clear message: the FBI will pursue and arrest anyone who endangers our nation’s security by collaborating with foreign spies.” As alleged in the Indictment: [1] After leaving U.S. government service and for more than a decade, TERRY worked as an agent of the government of the Republic of Korea (“ROK”), commonly known as South Korea, without registering as a foreign agent with the Attorney General, as required by law. As covertly directed by ROK government officials, TERRY publicly advocated ROK policy positions, disclosed non-public U.S. government information to ROK intelligence officers, and enabled ROK officials to gain access to U.S. government officials. In return for these actions, ROK intelligence officers provided TERRY with luxury goods, expensive dinners, and more than $37,000 in funding for a public policy program focusing on Korean affairs that TERRY controlled. From in or about 2001 to in or about 2011, TERRY served in a series of positions in the U.S. government, including as an analyst on East Asian issues for the Central Intelligence Agency, as the Director for Korea, Japan, and Oceanic Affairs for the White House National Security Council, and as the Deputy National Intelligence Officer for East Asia at the National Intelligence Council. Since leaving government service in or about 2011, TERRY has worked at academic institutions and think tanks in New York City and Washington, D.C. TERRY has made media appearances, published articles, and hosted conferences as a policy expert specializing in, among other things, South Korea, North Korea, and various regional issues impacting Asia. TERRY has also testified before Congress on at least three occasions regarding the U.S. government’s policy toward Korea. Since leaving U.S. government service, TERRY served as a valuable source of information for the ROK National Intelligence Service (“ROK NIS”), the ROK’s primary intelligence agency. For example, in or about June 2022, TERRY participated in a private, off-the-record group meeting with the U.S. Secretary of State regarding the U.S. government’s policy toward North Korea. Immediately after the meeting, TERRY’s primary ROK NIS point of contact, or “handler,” picked up TERRY in a car bearing ROK Embassy diplomatic license plates. While in the car, TERRY provided her handler detailed handwritten notes of her meeting with the U.S. Secretary of State. TERRY’s handler photographed the notes while sitting in the car with TERRY. Weeks later, at the request of her ROK NIS handler, TERRY hosted a happy hour for Congressional staff. Although the happy hour was under the auspices of the think tank where TERRY worked, the ROK NIS paid for it with TERRY’s knowledge. TERRY’s handler attended the event and posed as a diplomat, mingling with Congressional staff without disclosing that he was, in fact, an ROK intelligence officer. The ROK government rewarded TERRY for her services. For example, TERRY’s ROK NIS handlers gifted her a $2,950 Bottega Veneta handbag and a $3,450 Louis Vuitton handbag, both of which TERRY selected during shopping trips with her handlers. One of TERRY’s ROK NIS handlers also gifted her a $2,845 Dolce & Gabbana coat. In addition to luxury goods, TERRY’s ROK NIS handlers provided her with expensive meals, including at Michelin-starred restaurants. TERRY’s ROK NIS handlers also deposited approximately $37,000 into an unrestricted “gift” account that TERRY controlled at the think tank where she worked. In addition, ROK government officials paid TERRY to write articles in both the U.S. and Korean press conveying positions and phrases provided by the ROK government. * * * TERRY, 54, of New York, New York, has been charged with one count of conspiracy to violate FARA, which carries a maximum sentence of five years in prison, and one count of failure to register under FARA, which carries a maximum sentence of five years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge. Mr. Williams praised the outstanding investigative work of the Counterintelligence Division of the FBI’s New York Field Office. Mr. Williams also thanked the Counterintelligence Division and Foreign Influence Task Force of FBI Headquarters, the Mission Services and Counterintelligence Divisions of the FBI’s Washington Field Office, the Amtrak Police Department, and the Department of Justice’s National Security Division for their assistance. This case is being handled by the Office’s National Security and International Narcotics Unit. Assistant U.S. Attorneys Sam Adelsberg, Alexander Li, and Kyle A. Wirshba are in charge of the prosecution, with assistance from Trial Attorney Christopher M. Rigali of the National Security Division’s Counterintelligence and Export Control Section. The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty. [1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.


title: Knoxville Man Sentenced To 20 Years For Attempting To Provide Material Support To ISIS

body_text: KNOXVILLE, Tenn. - On July 17, 2024, Benjamin Carpenter, 34, of Knoxville, Tennessee, was sentenced to 240 months in prison by the Honorable Katherine A. Crytzer, United States District Judge, in the United States District Court for the Eastern District of Tennessee at Knoxville. Following his incarceration, Carpenter will be on supervised release for 20 years. On October 19, 2023, following an eight-day trial in United States District Court, a jury convicted Benjamin Carpenter, also known as “Abu Hamza,” of attempting to provide material support to ISIS, a foreign terrorist organization, in violation of Title 18, U.S.C. § 2339B. The evidence presented at trial demonstrated that Carpenter served as the leader of Ahlut-Tawhid Publications, an international organization of pro-ISIS “munasirin” (i.e., supporters), dedicated to translating, producing, and distributing ISIS propaganda throughout the world. For years, Carpenter, using his alias “Abu Hamza,” published a large body of ISIS media, including his weekly newsletter entitled From Dabiq to Rome , a periodical that, among other pro-ISIS propaganda themes, celebrated the deaths of American soldiers, glorified suicide bombers, and called for open war against the United States and its Western allies. In 2020 and 2021, Carpenter contacted an individual he believed to be affiliated with ISIS’s central media bureau and provided translation services for a project intended to relaunch Al-Hayat Media Center, ISIS’s official foreign-language media arm. Unbeknownst to him, that individual was an FBI undercover employee who had infiltrated Carpenter’s group. “For years, this defendant led a global digital media operation to distribute pro-ISIS propaganda, promoting the group’s radical message of terror and pushing it to every corner of the world,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “Today’s sentence reflects the seriousness of this defendant’s conduct and the Justice Department’s commitment to identifying and holding accountable those who would provide material support to foreign terrorist organizations.” “Combatting terrorism and keeping our communities safe are the highest priorities of the United States Attorney’s Office,” said United States Attorney Francis M. Hamilton III. “This case deals a serious blow to the expansion of ISIS and its broken message of hatred and senseless violence.” “All across the country, the FBI is working fervently to identify and defeat those who support terrorist organizations. The protection of our citizens will remain a priority for our federal, state, and local law enforcement partners,” said Special Agent in Charge Joseph E. Carrico of the Federal Bureau of Investigation. The case was investigated by the Knoxville Joint Terrorism Task Force, which is composed of federal, state, and local law enforcement agencies. It was led by the Knoxville FBI Field Office and involved the assistance of FBI offices from across the country. Assistant U.S. Attorneys Kyle J. Wilson and Casey T. Arrowood of the Eastern District of Tennessee and Trial Attorney Charles J. Kovats, Jr. of the National Security Division’s Counterterrorism Section represented the United States at trial. ###


title: Former Las Vegas City Councilwoman Charged for Charity Fraud Scheme

body_text: A federal grand jury returned an indictment yesterday charging a former Las Vegas city councilwoman and current Nye County, Nevada, justice of the peace for her alleged scheme to defraud donors to a charity to memorialize police officers who lost their lives in the line of duty. According to the indictment, Michele Fiore, 53, of Pahrump, Nevada, a then-Las Vegas city councilwoman, solicited donations to build a statue honoring Las Vegas police officers who were killed in the line of duty. Fiore allegedly promised donors that “100% of the contributions” would be used towards the creation of this statue. As alleged, Fiore did not use any of the tens of thousands of dollars in charitable donations for the statue of the fallen officer and instead converted the money to her personal use. The donations were used to pay her political fundraising bills and rent and were transferred to family members, including to pay for her daughter’s wedding. Fiore is charged with four counts of wire fraud and one count of conspiracy to commit wire fraud. If convicted, she faces a maximum penalty of 20 years in prison on each count. Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division, and Special Agent in Charge Spencer L. Evans of the FBI Las Vegas Field Office made the announcement. The FBI Las Vegas Field Office is investigating the case. Trial Attorneys Dahoud Askar and Alexander Gottfried of the Criminal Division’s Public Integrity Section are prosecuting the case. An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.


title: Springfield, Illinois, Man Sentenced to 120 Months for Drug Trafficking Associated with Street Gang

component: Department of Justice

body_text: SPRINGFIELD, Ill. – A Springfield, Illinois, man, Christopher Wallace, 32, was sentenced on July 15, 2024, to 120 months in prison, to be followed by three years of supervised release, for his role in a wide-spread drug conspiracy involving a Springfield street gang, Boss Playas, which lasted from approximately May 2020 through November 2020. At the sentencing hearing, Senior U.S. District Judge Sue Myerscough found Wallace was accountable for over 10 kilograms of cocaine as a member of the conspiracy. During the hearing, Judge Myerscough noted that the group of conspirators were responsible for distributing large amounts of controlled substances in the Springfield area, which had a negative effect on the community. Wallace was indicted on December 15, 2020; arrested on September 8, 2022; and pleaded guilty on February 22, 2024. He has remained in the custody of the United States Marshal since his arrest. The statutory penalties for the most serious charge of conviction – conspiracy to distribute cocaine – include not more than twenty years’ imprisonment, up to a $1,000,000 fine, and up to a life term of supervised release. This case was investigated by the Drug Enforcement Administration; Federal Bureau of Investigation, Springfield Field Office; Illinois State Police; and Springfield Police Department Assistant U.S. Attorney Matthew Z. Weir represented the government in the prosecution. The case against Wallace was part of an investigation of the Springfield based Boss Playas street gang and was 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. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF .


title: Justice Department and Department of Education Announce Continuing Success of Student-Loan Bankruptcy Discharge Process

component: Civil Division

body_text: The Justice Department, in close coordination with the Department of Education, announced today the continued and growing success of a process instituted in November 2022 for handling cases in which individuals seek to discharge their federal student loans in bankruptcy. Data and information tracking the effectiveness of the process over the last year and a half demonstrate that it is achieving its goal of providing a more transparent, equitable, and streamlined mechanism for borrowers to request a discharge of their student loans in consumer bankruptcy cases. The process has translated into increasing numbers of eligible federal student loan borrowers seeking and obtaining debt relief under the Bankruptcy Code. The Departments finalized new guidance in November 2022 that outlined a fairer, more accessible process to ensure consistent treatment of the discharge of federal student loans, reduce the burden on borrowers of pursuing such proceedings, and facilitate identifying cases where discharge is appropriate. At the time, both Departments committed to an ongoing assessment of the guidance’s effectiveness. As part of that commitment, the Justice Department surveyed all 94 U.S. Attorneys’ Offices after the first year of implementation, and it recently repeated its survey to obtain updated information about use of the guidance. The information that the Departments have collected from these surveys indicates that the new process continues to be a success, and that an increasing number of borrowers are seeking and receiving discharges of their federal student loan debts. In particular, since the process was announced a year and a half ago, the data collected by the departments reveals that: As anticipated, case filings have steadily increased as consumers have learned of the new process. A total of 588 new cases were filed from October 2023 to March alone, which is a 36% increase from the prior six-month period. And a total of 1,220 cases were filed from November 2022 through March, a significant increase from recent years. The departments expect this trend to continue. The vast majority of borrowers seeking discharge continue to benefit from the guidance. In cases decided by the courts from November 2022 through March, 98% have provided debt relief through full or partial discharge. And the overall number of court judgments providing full or partial discharge have continued to increase, with the number of such judgments over the last six months exceeding the number of judgments for the preceding 12 months. Borrowers continue to embrace the new process set forth in the guidance in large numbers. In filed cases, 96% of all borrowers are voluntarily using the streamlined process, which includes a standard attestation form that allows borrowers more easily to identify and provide relevant information in support of their discharge request. Multiple bankruptcy courts have adopted procedures recognizing the utility of the new process, aimed at further streamlining the procedures debtors must follow to obtain discharges. “We are now able to evaluate the success of the student loan bankruptcy discharge guidance with a robust record of empirical information,” said Acting Associate Attorney General Benjamin C. Mizer. “The results are clear: this guidance has helped make the promise of a fresh start in bankruptcy a meaningful option for individuals weighed down by student loan debt.” “Our clear, fair, and practical standards are helping struggling borrowers find relief that was previously out of reach,” said U.S. Under Secretary of Education James Kvaal. “This data should puncture the myth that struggling borrowers cannot discharge their student loan debt through bankruptcy. We will continue to work with our partners at the Department of Justice to make it simpler and easier for borrowers to get much-needed relief in the way it was intended.” In addition to the internal data surveys, the Justice Department has taken other measures to support and evaluate the new guidance. The Justice Department has been consulting closely with the Department of Education on the process. Since the implementation of the guidance, a dedicated group of experts within the Justice Department's Civil Division also has collected input on the new process from consumer law groups, including the National Association of Consumer Bankruptcy Attorneys. Finally, the Civil Division has conducted trainings for Justice Department attorneys as well as members of the public, including training events supported by regional bar associations and the courts. The Department of Education also participated in training events hosted by regional bar associations, the American Bankruptcy Institute and U.S. Trustee Program, as well as at the annual meeting of the National Association of Chapter 13 Trustees, which included private attorneys as well as Chapter 13 trustees. The Departments will continue to monitor the impact of the guidance to ensure that it is appropriately implemented and meets the goals it was designed to achieve.