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


title: New York Woman Charged with Child Exploitation Offense

component: USAO - Connecticut

body_text: Vanessa Roberts Avery, United States Attorney for the District of Connecticut, and Robert Fuller, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, today announced that SASHA MAY, formerly known as Owen May, 23, of Pelham, New York, has been charged by federal criminal complaint with distribution of child pornography. May appeared today before U.S. Magistrate Judge Maria E. Garcia in New Haven and was released on a $100,000 bond into home confinement with electronic monitoring. As alleged in court documents and statements made in court, between December 2023 and May 2024, May engaged in online conversations with an undercover law enforcement officer on the messaging platforms Kik and Whisper. In those conversations, May detailed her sexual interest in children and distributed child pornography. The charge of distribution of child pornography carries a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of 20 years. U.S. Attorney Avery stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt. This matter is being investigated by the FBI’s Child Exploitation Task Force, the Greenwich Police Department and the Pelham (N.Y.) Police Department. The Task Force includes federal, state, and local law enforcement agencies. The case is being prosecuted by Assistant U.S. Attorneys Christopher Lembo and Neeraj Patel. This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc . To report cases of child exploitation, please visit www.cybertipline.com .


title: Jackson Man Sentenced to Over 22 Years in Prison for Brandishing a Firearm During Convenience Store Robberies

component: Federal Bureau of Investigation (FBI)

body_text: Jackson, Miss. – A Jackson man was sentenced to 274 months in federal prison for brandishing a firearm during two convenience store robberies. He was also ordered to pay $5105 in restitution. According to court documents and admissions during public court proceedings, Kenneth Edwards Lewis, Jr., 35, used a firearm during the commission of two convenience store robberies along with his co-defendant, Tramaine Jadell Pettaway, in January and February of 2018. One store was in Clinton and the other was in Ridgeland. The Ridgeland Police Department was able to arrest both Lewis and Pettaway after a short chase following the Ridgeland robbery. Lewis and Pettaway, who has also pled guilty and is awaiting sentencing, have been in custody since February 2018. U.S. Attorney Todd W. Gee of the Southern District of Mississippi and Special Agent in Charge Robert Eikhoff of the Federal Bureau of Investigation made the announcement. The Ridgeland Police Department, the Clinton Police Department, and the FBI investigated the case. Deputy Criminal Chief Lynn Murray and Assistant United States Attorney Charles Kirkham prosecuted the case. This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.


title: Armed Career Criminal Sentenced to 15 Years in Federal Prison for Possession with Intent to Distribute Controlled Substances and Being a Felon in Possession of A Firearm

component: USAO - Arkansas, Eastern

body_text: LITTLE ROCK—Roy Edsel Heifner, Jr., classified as an armed career criminal based on his multiple prior convictions, will spend 15 years in federal prison for his involvement in the distribution of controlled substances, including fentanyl, and for being a felon in possession of a firearm. Jonathan D. Ross, United States Attorney for the Eastern District of Arkansas, announced the sentence, which was handed down on Monday by United States District Judge Lee P. Rudofsky. On February 4, 2020, Heifner, 76, of College Station, Arkansas, was indicted by a federal grand jury for being a felon in possession of a firearm. In a superseding indictment filed on February 7, 2023, Heifner was charged with six counts related to the distribution of Schedule II substances, including fentanyl and oxycodone, and two counts of being a felon in possession of a firearm. At the conclusion of a jury trial on March 1, 2023, the federal jury found Heifner guilty of conspiracy to possess with intent to distribute and to distribute fentanyl and oxycodone, as well as two counts possession with intent to distribute fentanyl and oxycodone, and of being a felon in possession of a firearm. In addition to the 180-month sentence, Judge Rudofsky sentenced Heifner to serve three years supervised release. There is no parole in the federal system. On September 3, 2019, the Drug Enforcement Administration (DEA) received information Heifner was distributing various types of prescription medication from his residence located in College Station. An investigation into Heifner’s background revealed that he was a convicted felon with numerous arrests. On October 17, 2019, a search warrant was executed at Heifner’s residence where law enforcement seized over 300 pills resembling oxycodone but which were in fact fentanyl, as well as approximately 100 pills that were confirmed to be oxycodone and hydrocodone. Law enforcement also seized two firearms and more than $300,000 in United States currency believed to be drug proceeds during the search of Heifner’s residence. After Heifner was first indicted on February 4, 2020, he was released on bond. While on bond, an investigation revealed that he continued to sell pills. In July 2021, law enforcement made controlled purchases of pills from Heifner at his residence, and while again the pills appeared to be oxycodone, they were confirmed as fentanyl. Heifner was taken back into custody and remained detained until his trial. The investigation was conducted by the Drug Enforcement Administration, with assistance from Arkansas State Police, Saline County Sheriff’s Office, and the Little Rock Police Department. The case was prosecuted by Assistant United States Attorneys Anne Gardner and Reese Lancaster. # # # Additional information about the office of the United States Attorney for the Eastern District of Arkansas, is available online at https://www.justice.gov/edar X (formerly known as Twitter): @USAO_EDAR


title: U.S. Attorney’s Office Shares Internet Safety Materials for Families During the Start of the Schoolyear

component: Criminal - Child Exploitation and Obscenity Section

body_text: BOISE – With families and communities throughout Idaho marking the start of the school year, U.S. Attorney Josh Hurwit and his team are sharing online safety resources with parents, educators, and students. The U.S. Attorney’s Office works hand-in-hand with federal, state, and local partners to ensure Idaho’s children are protected online. Sadly, the prevalence of smartphones and other electronic devices has been associated with criminal activity targeted at young people. Predators seek to exploit and abuse children through online communication and through “sextortion” and other schemes. In 2023, the National Center for Missing and Exploited Children (NCMEC) received over 36 million reports related to online sexual exploitation, an increase of 12 percent from 2022. And this problem extends to Idaho. In the first half of 2024, the Idaho Internet Crimes Against Children Task Force received 2,424 reports of child exploitation. Awareness is critical to preventing these heinous crimes. The U.S. Attorney’s Office encourages parents, educators, and community members to review helpful safety resources available to the public, including those found at NCMEC’s NetSmartz website: missingkids.org/NetSmartz/home . Printable internet safety tips sheets for parents and children, in both English and Spanish, are provided with this press release. In addition, today, U.S. Attorney Hurwit and his Office’s Project Safe Childhood Coordinator, Kassandra McGrady, released a public service announcement, available here , to bring awareness to sextortion, a type of blackmail used by offenders to acquire sexual content from a child. The criminal may use deceit or coercion to obtain a nude or sexual image of the child before blackmailing them for money or more content. “As we begin a new schoolyear full of excitement and promise, I urge parents and educators to help educate our youth on internet safety,” said U.S. Attorney Hurwit. “Sextortion and other crimes lead to devastating effects on our children, causing stress, mental health issues, and even suicide. We must protect our children from online predators and arm our children with the knowledge and resources for how to seek help if they fall victim.” The PSA aims to raise awareness about the unfortunate growing prevalence of sextortion and highlight the U.S. Attorney’s Office’s commitment to working alongside Idaho’s dedicated federal, state, and local law enforcement partners to put an end to this awful crime. Follow these steps if you believe your child has been a victim of sextortion: Preserve the evidence . Take screenshots or write down names, usernames, and phone numbers. Report to law enforcement . Contact your local law enforcement and/or your local FBI field office and report it online at tips.FBI.gov . Report the perpetrator on social media . Social media apps have safety features you can use to report misconduct that violates their terms of service. Please do not comply with the predator’s demands . Complying with, or paying the perpetrator, rarely stops the harassment or blackmail and may fuel them to continue. Let NCMEC help get your images down. Visit missingkids.org/IsYourExplicitContentOutThere to learn how to notify companies yourself or visit missingkids.org/gethelpnow/cybertipline to report to NCMEC for help with the process. Remember, the blackmailer is to blame. Even if your child made a choice they regret, the blackmailer is committing a very serious crime. “We are here to help. If you have concerns, reach out to our office, your local law enforcement agency or contact the National Center for Missing and Exploited Children,” said U.S. Attorney Hurwit. “Together we can end the sexual exploitation of teens and kids in Idaho. Please take time to learn how to identify and respond to people who are at risk or who have experienced sextortion.” ###


title: Springfield Business Owner Indicted for Illegal Firearm

component: USAO - Missouri, Western

body_text: SPRINGFIELD, Mo. – A Springfield, Mo., business owner was indicted by a federal grand jury today for illegally possessing a firearm. Garry Earl Shidler, 49, was charged with one count of being a felon in possession of a firearm in an indictment returned by a federal grand jury in Springfield. Shidler is the owner of Chappell’s Tire in Springfield. Today’s indictment alleges that Shidler was in possession of a Colt 5.56-caliber semi-automatic rifle with a 30-round magazine on Dec. 18, 2023. Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Shidler has three prior felony convictions for burglary and prior felony convictions for forgery, tampering and trafficking in stolen identities. This case is being prosecuted by Assistant U.S. Attorney Michael S. Oliver. It was investigated by the Springfield, Mo., Police Department, the Dallas County, Mo., Sheriff’s Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Project Safe Neighborhoods 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: Founder and Chief Executive Officer of Injectable Stem Cell Product Manufacturer Pleads Guilty to Felony Distribution of Unapproved Drug

component: Civil Division

body_text: The founder and chief executive officer of a California-based company that marketed stem cell-based products linked to multiple hospitalizations pleaded guilty yesterday to a felony violation of the Federal Food, Drug and Cosmetic Act. John W. Kosolcharoen, 53, most recently of Orange County, California, pleaded guilty to introducing an unapproved new drug into interstate commerce with the intent to defraud and mislead. Kosolcharoen is currently in custody serving a sentence for a separate, unconnected conviction. U.S. District Judge Otis D. Wright II for the Central District of California presided over the hearing pursuant to a plea agreement with the government. The court set Kosolcharoen’s sentencing for Sept. 23. According to court documents, beginning in 2016, Kosolcharoen created two companies, Liveyon LLC and Genetech Inc., to manufacture and distribute injectable stem cell products made from human umbilical cord blood. Liveyon marketed the products under different brand names, including “ReGen.” In pleading guilty, Kosolcharoen admitted that he and others misrepresented ReGen as suitable for the treatment of a variety of conditions, such as lung and heart diseases, autoimmune disorders, Alzheimer’s disease, Parkinson’s disease and others. Liveyon marketed the products throughout the United States until about April 2019 using advertising materials that contained multiple false and misleading statements about their purported safety and effectiveness. In recent years, the U.S. Food and Drug Administration (FDA) has warned consumers that patients seeking cures and remedies for serious diseases and conditions may be misled about unapproved stem cell products that are illegally marketed, have not been shown to be safe or effective, and, in some cases, may have significant safety issues that put patients at risk. Stem cell products are regulated by FDA, and generally they must have FDA approval before being introduced into interstate commerce. As part of the plea agreement, Kosolcharoen admitted that to mislead FDA about Liveyon’s activities, he directed Liveyon’s purchase orders to falsely state that the stem cell products were being sold “for research purposes only.” In 2018, FDA and the Centers for Disease Control and Prevention (CDC) received reports of patients in multiple states requiring hospitalization for bacterial infections after receiving Liveyon products. Kosolcharoen admitted that he and others fraudulently induced customers into purchasing stem cell-derived Liveyon products by, among other things, misleading the public about the cause and severity of adverse events suffered by Liveyon patients, and falsely reporting and concealing material facts regarding the outcome of an FDA inspection of Genetech. According to FDA records, that inspection documented evidence of significant deviations from good manufacturing and tissue practices. “Unapproved stem cell treatments not only endanger public health but also exploit the hopes of patients who seek relief from the most serious of diseases,” said Principal Deputy Assistant Attorney General Brian Boynton, head of the Justice Department’s Civil Division. “The Department of Justice is committed to safeguarding the public from these schemes and will vigorously pursue legal action to hold accountable those who unlawfully market and sell these unproven therapies.” “This defendant recklessly put people’s lives in danger, giving false hope to patients with serious illnesses,” said U.S. Attorney Martin Estrada for the Central District of California. “Today’s guilty plea shows that we will hold accountable corporate executives and healthcare professionals who put profits over patients.” “We are grateful for the work by the Department of Justice to hold accountable establishments that prey upon vulnerable populations by marketing potentially dangerous stem cell products with false and misleading claims about their safety and effectiveness,” said Director Peter Marks, M.D., Ph.D. of FDA’s Center for Biologics Evaluation and Research. “When unscrupulous providers offer umbilical cord blood stem cell products and treatments that are both unapproved and unproven, they put consumers’ health at risk, and multiple users of this firm’s products in fact suffered adverse events,” said Special Agent in Charge Robert Iwanicki of FDA Office of Criminal Investigations Los Angeles Field Office. “FDA will continue to investigate and bring to justice those who endanger the public’s health for material gain.” “This investigation was a joint effort between multiple federal agencies and state and local health departments to quickly put a stop to the distribution of unsafe, contaminated products,” said Director Michael Bell, M.D. of CDC’s Division of Healthcare Quality Promotion. “The rapid response by our public health system identified products marketed as stem cell treatments to be the source of serious infections in dozens of patients. Our message to all consumers and providers is to heed the warning against the use of unapproved products like these with unproven claims of effectiveness for conditions like joint disease, chronic pain, or COVID-19. Please don’t let products like these put you or your patients’ health at risk.” FDA’s Office of Criminal Investigations, FBI, Amtrak Office of Inspector General, Defense Criminal Investigative Service, Department of Health and Human Services Office of Inspector General, Department of Labor Employment Benefits Security Administration and California Department of Health Care Services investigated the case. Assistant U.S. Attorneys Mark Aveis and David Chao for the Central District of California, Assistant Director Ross S. Goldstein and Trial Attorneys Meredith B. Healy, Kathryn A. Schmidt and Peter J. Leininger of the Justice Department’s Consumer Protection Branch are prosecuting the case. Additional information about the Consumer Protection Branch and its enforcement efforts can be found at www.justice.gov/civil/consumer-protection-branch .


title: California Doctor Sentenced for Health Care Fraud Scheme

component: Criminal Division

body_text: A California man was sentenced today to 37 months in prison for his role in a $2.8 million fraud scheme in which Medicare was billed for hospice services that the patients did not need. According to court documents and evidence presented at trial, John Thropay, M.D., 75, of Arcadia, was the medical director of multiple hospice companies, including Blue Sky Hospice Inc., located in Van Nuys, California. From October 2014 to March 2016, Thropay fraudulently certified Medicare patients of Blue Sky Hospice as having terminal illnesses that the patients did not have so that the company could bill Medicare for hospice services. In 2015, Thropay was listed as attending provider for more hospice claims paid by Medicare than any other provider in the nation. Thropay was convicted at trial in the Central District of California of one count of conspiracy to commit health care fraud and four counts of health care fraud on Feb. 15. Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division, U.S. Attorney E. Martin Estrada for the Central District of California, Acting Assistant Director in Charge Akil Davis of the FBI Los Angeles Field Office and Special Agent in Charge Timothy DeFrancesca of the Department of Health and Human Services, Office of Inspector General (HHS-OIG)'s Los Angeles Regional Office made the announcement. The FBI and HHS-OIG investigated the case. Assistant Deputy Chief Niall M. O’Donnell and Trial Attorney Eric C. Schmale of the Criminal Division’s Fraud Section prosecuted the case. The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, currently comprised of nine strike forces operating in 27 federal districts, has charged more than 5,400 defendants who collectively have billed federal health care programs and private insurers more than $27 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.


title: Independence Man Indicted for Fentanyl Trafficking, Illegal Firearms

body_text: KANSAS CITY, Mo. – An Independence, Mo., man was indicted by a federal grand jury today for his role in a conspiracy to distribute fentanyl and illegally possessing firearms. Demarkus Q. Shelton, 44, was charged in a 16-count indictment returned by a federal grand jury in Kansas City, Mo. Today’s indictment replaces a federal criminal complaint that was filed against Shelton on Aug. 2, 2024, and includes additional charges. According to an affidavit filed in support of the original criminal complaint, the investigation began on Feb. 22, 2024, when a teenager was found dead of an apparent overdose in Johnson County, Mo. Evidence at the scene, including fentanyl and smoking paraphernalia, indicated the victim had been using fentanyl prior to his death. An autopsy was conducted, which cited a cause of death as the toxic effects of fentanyl. Investigators learned the overdose victim was among several Johnson County youth who allegedly purchased fentanyl from Shelton earlier that same day. The affidavit cites a series of controlled purchases from Shelton resulting in the seizure of over 95 grams of powder or “raw” fentanyl. As little as two milligrams of fentanyl can be fatal. During the drug transactions, the affidavit says, Shelton was usually armed with a handgun with a drum magazine and/or an AK-47 or AR-style rifle. In one transaction, Shelton allegedly sold the confidential informant a Palmetto State Armory AR model multi-caliber firearm with a 30-round magazine in addition to 22.7 grams of powder fentanyl for $2,300. On Aug. 5, 2024, law enforcement officers executed a search warrant at the hotel room where Shelton was arrested on the complaint. Officers found a Taurus .40-caliber semi-automatic firearm and a Taurus .22-caliber semi-automatic handgun. Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Shelton, who is on state probation, has prior felony convictions for possession of a controlled substance, burglary, and tampering with a motor vehicle. The federal indictment charges Shelton with one count of conspiracy to distribute fentanyl, seven counts of distributing fentanyl, six counts of possessing a firearm in furtherance of a drug-trafficking crime, and two counts of being a felon in possession of a firearm. This case is being prosecuted by Assistant U.S. Attorney Ashleigh A. Ragner. It was investigated by the Jackson County Drug Task Force, the Missouri State Highway Patrol, the Johnson County, Mo., Sheriff's Department and the Drug Enforcement Administration.


title: Leechburg Man Pleads Guilty to Cocaine Violation

body_text: JOHNSTOWN, Pa. – A resident of Leechburg, Pennsylvania, pleaded guilty in federal court to a charge of violating federal narcotics laws, United States Attorney Eric G. Olshan announced today. Ernest Clinton, 42, pleaded guilty before Senior United States District Judge Kim R. Gibson. In connection with the guilty plea, the Court was advised that, from in and around August 2018 to March 2023, in the Western District of Pennsylvania, Clinton conspired with others to distribute and possess with intent to distribute 500 grams or more of a mixture and substance containing cocaine. Clinton was intercepted on a federal wiretap obtaining cocaine that he distributed to others. Judge Gibson scheduled sentencing for January 14, 2025. The law provides for a total sentence of not less than five years and up to 40 years in prison, a fine of up to $5 million, or both. Under the federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant. Assistant United States Attorney Arnold P. Bernard Jr. is prosecuting this case on behalf of the government. The Federal Bureau of Investigation’s Laurel Highlands Resident Agency and Homeland Security Investigations conducted the investigation that led to the prosecution of Clinton. Additional agencies participating in this investigation include the Internal Revenue Service – Criminal Investigation, United States Postal Inspection Service, and other local law enforcement agencies. This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.


title: Mississippi Seafood Distributor and Managers Plead Guilty to Conspiracy and Misbranding of Seafood

component: Energy and Natural Resources Division

body_text: A Mississippi seafood distributor and two company managers pleaded guilty today to conspiring with others to mislabel seafood and to commit wire fraud by marketing inexpensive and frozen imported substitutes as more expensive and premium local species. Quality Poultry and Seafood Inc. (QPS), the largest seafood wholesaler on the Mississippi Gulf Coast, has agreed to pay the United States $1 million in forfeitures and a criminal fine of $150,000. QPS sales manager Todd A. Rosetti and business manager James W. Gunkel, both of Ocean Springs, Mississippi, also pleaded guilty to misbranding seafood to facilitate QPS’ fraud. QPS admitted to participating in this fish substitution scheme from as early as 2002 and continuing through November 2019. The indictment alleges that QPS recommended and sold to its restaurant customers foreign-sourced fish that could serve as convincing substitutes for the local species the restaurants advertised on their menus. QPS also labeled the cheap imports that it sold to customers at its own retail shop and café as premium local fish. “QPS and company officials went to great lengths in conspiring with others to perpetuate fraud for more than a decade, even after they knew they were under federal investigation,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “Mislabeling seafood harms local wholesalers and fishermen who compete to sell locally sourced, premium fish in a market unfairly flooded with less expensive fish, frozen and imported from overseas.” “When imported substitutes are marketed as local domestic seafood, it depresses the value of authentic Gulf Coast seafood, which means that honest local fishermen and wholesalers have a harder time making a profit,” said U.S. Attorney Todd W. Gee for the Southern District of Mississippi. “This kind of mislabeling fraud hurts the overall local seafood market and rips off restaurant customers who were paying extra to eat a premium local product. These convictions should serve as a warning: restaurants and wholesalers will face criminal prosecution if they are not honest with customers about what they are actually buying.” “U.S. consumers expect their seafood to be correctly identified. When sellers purposefully substitute one fish species for another, they deceive consumers and cause potential food safety hazards to be overlooked or misidentified by processors or end users,” said Special Agent in Charge Justin Fielder of the Food and Drug Administration (FDA)’s Office of Criminal Investigations, Miami Field Office. “We will continue to investigate and bring to justice those who put profits above public health.” The indictment alleges that even after agents from the FDA executed a criminal search warrant at QPS to investigate its sale of mislabeled fish, QPS continued for over a year to sell frozen fish imported from Africa, South America and India for use as substitutes for local premium species. Mary Mahoney’s, which pleaded guilty in May, admitted that between December 2013 and November 2019, it fraudulently sold, as local premium species, approximately 58,750 pounds (over 29 tons) of fish that was not the species identified on its menu. QPS supplied seafood to Mary Mahoney’s and many other restaurant restaurants and retailers. QPS, Rosetti and Gunkel will be sentenced on Dec. 11. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. FDA’s Office of Criminal Investigations is investigating the case. Senior Trial Attorney Jeremy F. Korzenik of the Environment and Natural Resources Division’s Environmental Crimes Section and Assistant U.S. Attorney Andrea Jones for the Southern District of Mississippi are prosecuting the case.


component: USAO - Mississippi, Southern


title: St. Francis Man Sentenced for Failure to Register as a Sex Offender

component: USAO - South Dakota

body_text: PIERRE - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Eric C. Schulte has sentenced a St. Francis, South Dakota, man convicted of Failure to Register as a Sex Offender. The sentencing took place on August 26, 2024. George Allen Scott, age 39, was sentenced to 16 months in federal prison, followed by five years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund. Scott was indicted by a federal grand jury in January of 2024. He pleaded guilty on May 30, 2024. Scott was convicted of Abusive Sexual Contact in 2012. As a result of this conviction, he is required to register as a sex offender and to update his registration within three business days of relocation or changing employment. In December of 2023, Scott relocated from St. Francis to Sioux Falls, South Dakota, and appropriately updated his sex offender registration. He subsequently moved out of his Sioux Falls residence, however, and did not update his registration. He was arrested in St. Francis on January 26, 2024. This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc . This case was investigated by the U.S. Marshals Service. Assistant U.S. Attorney Kirk Albertson prosecuted the case. Scott was immediately remanded to the custody of the U.S. Marshals Service.


title: California Man Sentenced for Possession of Child Pornography

body_text: SIOUX FALLS - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Karen E. Schreier has sentenced a Los Angeles, California, man convicted of Possession of Child Pornography. The sentencing took place on August 26, 2024. Terrell Stanley, age 25, was sentenced to three years and ten months in federal prison, followed by five years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100. Stanley must register as a sex offender upon his release from federal prison. Stanley was indicted by a federal grand jury in November of 2023. He pleaded guilty on June 18, 2024. The conviction stemmed from an incident on April 12, 2022, when Stanley knowingly possessed video files with child pornography. The videos involved a 16-year-old female that Stanley met online. The video files were obtained without the minor’s consent and were subsequently used to attempt to coerce the victim into providing more pornographic files. This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc . This case was investigated by Homeland Security Investigations and the Brookings Police Department. Assistant U.S. Attorney Jeffrey C. Clapper prosecuted the case. Stanley was immediately remanded to the custody of the U.S. Marshals Service.


title: Jamaican National Extradited for Scheme to Defraud American Citizen

component: Office of Public Affairs

body_text: WASHINGTON - A Jamaican national was extradited to the United States and made his initial appearance today in Sioux Falls, South Dakota, following his role in a long-running scheme to defraud a California woman. Dwayne Anderson, 35, of Hannover, Jamaica, will face federal wire fraud charges. He was arrested, pursuant to the U.S. request for extradition, on July 11, by Jamaican authorities. He has remained in custody in Jamaica since that time. According to the indictment, from as early as 2010 until September 2017, Anderson participated in a scheme to defraud an American woman. Using phony names, he contacted the victim by telephone, text message, and email and falsely informed her that she had won millions of dollars in a sweepstakes. Anderson persuaded the victim, who believed the defendant’s false representations, to send money to pay various fees and taxes associated with the sweepstakes. He instructed the victim on how, and to whom, to send these payments. Anderson repeatedly contacted the victim with additional requests to pay money and told the victim that her winnings would be forthcoming if she paid the requested money. Anderson induced the victim to travel to Jamaica in September 2017 by falsely informing her that she would be able to collect her prize winnings. He told the victim to bring $1,600 in cash with her to Jamaica and instructed the victim to give the money to a driver that met her at the airport. The victim paid the purported fees but never received any of her purported winnings. “The Justice Department’s Consumer Protection Branch is committed to bringing transnational criminals who defraud Americans to justice, wherever they are located,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “Ensuring that those who perpetrate these types of fraud schemes are held accountable is a priority of the department, and I thank the government of Jamaica for its assistance extraditing the defendant to face charges here in the United States.” “Making a living by exploiting the trust of Americans and draining their hard-earned savings is despicable,” said U.S. Attorney Alison Ramsdell for the District of South Dakota. “The District of South Dakota, working alongside our law enforcement partners, will pursue and prosecute anyone who engages in criminal acts that harm Americans. “Collaboration between international law enforcement partners is critical to protecting the international rule of law and the U.S. Mailstream,” said Inspector in Charge Eric Shen of the U.S. Postal Inspection Service (USPIS) Criminal Investigations Group. “The U.S. Postal Inspection Service is committed to protecting Americans from transnational crime and is grateful to our partners in Jamaica for assistance in bringing Anderson to Justice.” Anderson is charged with eight counts of wire fraud filed in the U.S. District Court for the District of South Dakota in February 2023 and was unsealed upon the defendant’s extradition to the United States on Aug. 22. If convicted, Anderson faces a maximum penalty of 20 years in prison for each count. USPIS investigated the case. The Jamaica Constabulary Force provided critical assistance. The Justice Department’s Office of International Affairs worked with law enforcement partners in Jamaica to secure the arrest and extradition of Anderson. Trial Attorneys Brandon Robers and Edward Emokpae of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Ann Hoffman for the District of South Dakota prosecuted the case. The Justice Department continues to investigate and bring charges in other similar matters involving attempts to defraud residents of the United States. If you or someone you know is age 60 or older and has experienced financial fraud, experienced professionals are standing by at the National Elder Fraud Hotline 1-833-FRAUD-11 (1-833-372-8311). This Justice Department hotline, managed by the Office for Victims of Crime, can provide personalized support to callers by assessing the needs of the victim and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is open Monday through Friday from 10:00 a.m. to 6:00 p.m. ET. English, Spanish and other languages are available. More information about the department’s efforts to help American seniors is available at its Elder Justice Initiative webpage www.justice.gov/elderjustice . For more information about the Consumer Protection Branch and its enforcement efforts visit www.justice.gov/civil/consumer-protection-branch . Elder fraud complaints can be filed with the FTC at www.reportfraud.ftc.gov/ or at 877-FTC-HELP. The Justice Department provides a variety of resources relating to elder fraud victimization through its Office for Victims of Crime, at www.ovc.gov . For more information about the Consumer Protection Branch and its fraud enforcement efforts, visit www.justice.gov/civil/consumer-protection-branch . An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.


title: Founder and CEO of Injectable Stem Cell Product Manufacturer Pleads Guilty to Felony Distribution of Unapproved Drug

component: USAO - California, Central

body_text: LOS ANGELES – The founder and chief executive officer of a California-based company that marketed stem cell-based products linked to multiple hospitalizations has pleaded guilty to a felony violation of the Federal Food, Drug and Cosmetic Act, the Justice Department announced today. John Warrington Kosolcharoen, 53, most recently of Rancho Santa Margarita, pleaded guilty to one count of introducing an unapproved new drug into interstate commerce with the intent to defraud and mislead. Kosolcharoen is currently in custody serving a sentence for a separate, unconnected conviction. “This defendant recklessly put people’s lives in danger, giving false hope to patients with serious illnesses,” said United States Attorney Martin Estrada. “Today’s guilty plea shows that we will hold accountable corporate executives and healthcare professionals who put profits over patients.” According to court documents, beginning in 2016, Kosolcharoen created two companies, the Irvine-based Liveyon LLC and the San Diego-based Genetech Inc., to manufacture and distribute injectable stem cell products made from human umbilical cord blood. Liveyon marketed the products under different brand names, including “ReGen.” In pleading guilty, Kosolcharoen admitted that he and others misrepresented ReGen as suitable for the treatment of a variety of conditions, such as lung and heart diseases, autoimmune disorders, Alzheimer’s disease, Parkinson’s disease and others. Liveyon marketed the products throughout the United States until about April 2019 using advertising materials that contained multiple false and misleading statements about their purported safety and effectiveness. In recent years, the U.S. Food and Drug Administration (FDA) has warned consumers that patients seeking cures and remedies for serious diseases and conditions may be misled about unapproved stem cell products that are illegally marketed, have not been shown to be safe or effective, and, in some cases, may have significant safety issues that put patients at risk. Stem cell products are regulated by FDA, and generally they must have FDA approval before being introduced into interstate commerce. As part of the plea agreement, Kosolcharoen admitted that to mislead FDA about Liveyon’s activities, he directed Liveyon’s purchase orders to falsely state that the stem cell products were being sold “for research purposes only.” In 2018, FDA and the Centers for Disease Control and Prevention (CDC) received reports of patients in multiple states requiring hospitalization for bacterial infections after receiving Liveyon products. Kosolcharoen admitted that he and others fraudulently induced customers into purchasing stem cell-derived Liveyon products by, among other things, misleading the public about the cause and severity of adverse events suffered by Liveyon patients, and falsely reporting and concealing material facts regarding the outcome of an FDA inspection of Genetech. According to FDA records, that inspection documented evidence of significant deviations from good manufacturing and tissue practices. “Unapproved stem cell treatments not only endanger public health but also exploit the hopes of patients who seek relief from the most serious of diseases,” said Principal Deputy Assistant Attorney General Brian Boynton, head of the Justice Department’s Civil Division. “The Department of Justice is committed to safeguarding the public from these schemes and will vigorously pursue legal action to hold accountable those who unlawfully market and sell these unproven therapies.” “We are grateful for the work by the Department of Justice to hold accountable establishments that prey upon vulnerable populations by marketing potentially dangerous stem cell products with false and misleading claims about their safety and effectiveness,” said Director Peter Marks, M.D., Ph.D. of FDA’s Center for Biologics Evaluation and Research. “When unscrupulous providers offer umbilical cord blood stem cell products and treatments that are both unapproved and unproven, they put consumers’ health at risk, and multiple users of this firm’s products in fact suffered adverse events,” said Special Agent in Charge Robert Iwanicki of FDA Office of Criminal Investigations Los Angeles Field Office. “FDA will continue to investigate and bring to justice those who endanger the public’s health for material gain.” “This investigation was a joint effort between multiple federal agencies and state and local health departments to quickly put a stop to the distribution of unsafe, contaminated products,” said Director Michael Bell, M.D. of CDC’s Division of Healthcare Quality Promotion. “The rapid response by our public health system identified products marketed as stem cell treatments to be the source of serious infections in dozens of patients. Our message to all consumers and providers is to heed the warning against the use of unapproved products like these with unproven claims of effectiveness for conditions like joint disease, chronic pain, or COVID-19. Please don’t let products like these put you or your patients’ health at risk.” FDA’s Office of Criminal Investigations, FBI, Amtrak Office of Inspector General, Defense Criminal Investigative Service, Department of Health and Human Services Office of Inspector General, Department of Labor Employment Benefits Security Administration and California Department of Health Care Services investigated the case. Assistant United States Attorneys Mark Aveis of the Major Frauds Section and David H. Chao of the General Crimes Section, Assistant Director Ross S. Goldstein and Trial Attorneys Meredith B. Healy, Kathryn A. Schmidt and Peter J. Leininger of the Justice Department’s Consumer Protection Branch are prosecuting the case. United States District Judge Otis D. Wright II scheduled a September 23 sentencing hearing, at which time Kosolcharoen will face a statutory maximum sentence of three years in federal prison.


title: Peoria Man Sentenced to 42 Months in Federal Prison for Threatening to Assault and Murder a U.S. District Court Judge

body_text: PEORIA, Ill. – A Peoria, Illinois, man, Paul Jordan Klawer, 34, was sentenced on August 21, 2024, to 42 months in federal prison for threatening a federal judge. Klawer was also order to serve a three-year term of supervised release upon completion of his term of confinement. At the sentencing hearing before U.S. District Judge Lindsay C. Jenkins, the government established that in May 2022 Klawer was representing himself as a party in a civil rights case pending in federal court in the Central District of Illinois. When Klawer became frustrated with matters in that case, he wrote a series of threatening emails to the lawyer representing the opposing party. In the emails, Klawer made multiple threats, including “tell the judge if he doesn’t take my warnings serious…I’ll blow his f****** brains out in broad daylight and put on his Tombstone exactly how much value he gave our future by suppressing evidence of misconduct…” Klawer went on to threaten others as well, promising that if his demands in the case were not met, he would commit various violent acts including blowing up the Department of Human Services in Springfield. Also at the sentencing hearing, Judge Jenkins found Klawer’s repeated threats to the judge who was presiding over the civil case were “tremendously serious.” Judge Jenkins noted that the threats were “specific, graphic, disgusting, and criminal, and all arising out of the normal and natural progression” of any civil case instituted in the country. Jenkins stated that the messages Klawer sent degrade our justice system, are destabilizing, and are dangerous when directed to people who were fulfilling their role in the larger justice system. Klawer was arrested in December 2023 after a criminal complaint was filed in federal court. A federal grand jury returned an indictment in mid-December 2023. Klawer initially pled not guilty but entered a change of plea with Judge Jenkins in April 2024. He has remained in the custody of the U.S. Marshals Service since his arrest. “The judiciary is designed to be insulated from intimidation, harassment, and fear of retribution so judges can render fair, impartial and independent decisions. The defendant’s actions were an attack on the justice system itself,” said Assistant U.S. Attorney, Ronald L. Hanna. “We will not tolerate actors like Klawer who try to use fear and intimidation to get their way.” The statutory penalties for threatening a federal official are up to 10 years’ imprisonment, followed by up to three years of supervised release. The U.S. Marshals Service; Federal Bureau of Investigation, Springfield Field Office; the Illinois State Police; and the Northbrook, Illinois, Police Department investigated the case. Assistant U.S. Attorney Hanna represented the government in the prosecution.


title: Suffolk services provider pleads guilty to healthcare fraud

component: USAO - Virginia, Eastern

body_text: NORFOLK, Va. – A Suffolk woman pled guilty yesterday to one count of healthcare fraud and six counts of making false statements relating to healthcare matters. According to court documents, from June 2016 through October 2018, Whitteney Guyton, 43, engaged in a scheme to defraud the Virginia Department of Medical Assistance Services (DMAS), which administers Medicaid in the Commonwealth. Guyton owned and operated Synergy Health Systems LLC (Synergy), Which provided healthcare services to patients covered by Medicaid. Ms. Guyton billed Medicaid for the services she claimed Synergy provided to patients. However, the company’s records were falsified, incomplete, failed to comply with basic Medicaid requirements, and included inflated time. Synergy offered two types of care: personal and respite care, and mental health skill building (MHSS). The services that Synergy offered required assessments by licensed professionals to comply with Medicaid regulations. To be paid for personal care, a registered nurse (RN) must complete the patient assessment. A licensed mental health professional (LMHP), such as a licensed clinical social worker (LCSW) is required to fill out assessments for, and periodically re-assess, patients receiving mental health services. While Guyton had an LCSW contractor from 2016 to July 2017, she did not have another LMHP to do the assessments or reassessments until October 2018. Guyton instructed her staff to forge the original LCSW's signature on assessments and certifications. Guyton and Synergy submitted documents to DMAS for authorization for MHSS for over 35 patients that contained forged signatures and authorizations, fraudulently billing and receiving over $740,000 from DMAS. Guyton and Synergy did the same for personal care and respite services. Guyton and Synergy forged signatures of an RN and fraudulently billed and received over $50,000 from DMAS. Synergy billed and received from DMAS an additional $480,000 for patients for whom there was no documentation that any assessment had ever been done or while they were in the hospital or at other care settings. Guyton and Synergy also inflated the time for billing for mental health services. As a result of these schemes, Guyton illegally obtained approximately $1,320,088. Guyton is scheduled to be sentenced on Jan. 10, 2025. She faces up to 10 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Maureen R. Dixon, Special Agent in Charge of the Office of Inspector General for the U.S. Department of Health and Human Services (HHS); and Jason S. Miyares, Attorney General of Virginia, made the announcement after Senior U.S. District Judge John A. Gibney Jr. accepted the plea. Assistant U.S. Attorneys Elizabeth M. Yusi and Clayton D. LaForge are prosecuting the case. A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:23-cr-35.


title: City of Atlanta’s Former Chief Financial Officer Sentenced to Prison for Federal Program Theft and Tax Obstruction

body_text: The City of Atlanta’s former chief financial officer (CFO) was sentenced today to 36 months in prison, three years of supervised release, and ordered to pay restitution in the amount of $177,197.48 and a fine of $10,000 for abusing his position to steal public money and obstruct the IRS. According to court documents, from 2011 to 2018, Jimmie Anthony “Jim” Beard, 60, of Fort Lauderdale, Florida, oversaw the City of Atlanta’s Department of Finance, in which his primary responsibility was to manage the city’s financial condition. At least as early as 2015, Beard devised and executed a scheme to use his authority as CFO to obtain money and property from Atlanta for his own use, including to pay for thousands of dollars in personal travel expenses for himself, his family, and his travel companions, and to buy and possess restricted machine guns. Further, while CFO, Beard submitted years of fraudulent tax returns in which he claimed personal business expenses to lower what he owed in taxes. During a 2015 audit of one of those returns, Beard lied to the IRS and obstructed auditors by submitting receipts for transactions that were actually paid by the City of Atlanta in connection with Beard’s official duties. The investigation later revealed that Beard had no personal business, and years of tax deductions were based on a lie. Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; U.S. Attorney Ryan Buchanan for the Northern District of Georgia; Executive Director Michael Nordwall of the FBI’s Criminal, Cyber, Response, and Services Branch; Special Agent in Charge Keri Farley of the FBI Atlanta Field Office; Special Agent in Charge Demetrius Hardeman of the IRS Criminal Investigation (IRS-CI) Atlanta Field Office; and Assistant Special Agent in Charge Alicia D. Jones of ATF Atlanta Field Division made the announcement. The FBI, IRS-CI, and ATF investigated the case. Trial Attorney Trevor Wilmot of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorneys Garrett Bradford, Tiffany Johnson, and former Assistant U.S. Attorney Jeffrey Davis for the Northern District of Georgia prosecuted the case.


title: Honduran Man Sentenced to Prison for Illegally  Reentering the United States After Being Deported Six Times

component: USAO - Iowa, Northern

body_text: A man who had been deported, illegally returned to the United States, and then used someone else’s social security number to obtain employment was sentenced Monday to ten months in federal prison. Elder Moises Ramirez-Melgar, age 32, a citizen of Honduras illegally present in the United States and residing in Postville, Iowa, received the prison term after a June 17, 2024, guilty plea to one count of unlawful possession of an identification document and one count of illegal reentry into the United States after having been deported. In a plea agreement, Ramirez-Melgar admitted he had previously been deported from the United States and illegally reentered the United States without the permission of the United States government. Ramirez-Melgar was previously deported in December 2009, September 2014, March 2016, March 2017, May 2020, and March 2023. Ramirez-Melgar also admitted he possessed a fraudulent Social Security card bearing an alias name when he was arrested on January 30, 2024, for operating a motor vehicle while under the influence (OWI). Ramirez-Melgar admitted he knowingly used the fraudulent Social Security card to prove his authorization to work in the United States when he completed employment and tax forms at businesses in West Union, Iowa in December 2021, in Lime Springs, Iowa in August 2022, and in Cresco, Iowa in November 2023. Illegal aliens are not authorized to work in the United States. The number on the Social Security card was a real Social Security number assigned to a United States citizen. On the employment applications, Ramirez-Melgar falsely claimed to be a citizen of the United States. On January 31, 2024, immigration officials learned Ramirez-Melgar had illegally returned to the United States and found Ramirez-Melgar at the Allamakee County Jail following his arrest for OWI. On March 15, 2024, Ramirez-Melgar was convicted of OWI in state court and sentenced to 35 days’ imprisonment. Ramirez-Melgar was previously convicted in January 2023 in the Northern District of Iowa of illegally reentering the United States, served four months’ imprisonment and was deported. Ramirez-Melgar was also convicted in the District of Arizona in February 2017 and March 2020 of illegal entry into the United States. Ramirez-Melgar was sentenced in Cedar Rapids by United States District Court Chief Judge C.J. Williams. Ramirez-Melgar was sentenced to ten months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system. Ramirez-Melgar is being held in the United States Marshal’s custody until he can be transported to a federal prison. The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by the Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations. Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl . The case file number is 24-CR-1004. Follow us on Twitter @USAO_NDIA.


title: Convicted Felon Is Sentenced For Illegally Possessing A Loaded Firearm Fitted With An Extended Magazine

component: USAO - North Carolina, Western

body_text: CHARLOTTE, N.C. – Monwazee Raymon Boston, 32, of Charlotte was sentenced today to five years in prison followed by three years of supervised release for illegally possessing a loaded firearm fitted with an extended magazine, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Bennie Mims, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, and Chief Johnny Jennings of the Charlotte Mecklenburg Police Department, join U.S. Attorney King in making today’s announcement. According to court documents and court proceedings, on July 21, 2021, law enforcement were surveilling an area known for frequent drug trafficking and illegal firearms activity, when they observed the defendant, with an extended firearms magazine sticking out of his pants, leave the area in his vehicle. Shortly thereafter, law enforcement located Boston’s parked vehicle with Boston already outside the vehicle. When Boston saw the officers, he fled on foot and hid behind a truck parked in a driveway. The officers located Boston and placed him under arrest. The officers also found a Glock pistol behind the same truck where Boston hid. The pistol was fitted with a fully loaded 30-round extended magazine, with an additional round in the chamber. Officers also conducted a search of Boston’s vehicle where they located 445 methamphetamine pills, and almost half a kilogram of marijuana. Court documents show that, in 2011, Boston was convicted of drug trafficking and firearms offenses in federal court in South Carolina. Boston was on federal supervised release for that conviction when he possessed the loaded firearm. On May 1, 2023, Boston pleaded guilty to possession of a firearm by a convicted felon. He is in federal custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility. In making today’s announcement, U.S. Attorney King thanked the ATF and CMPD for their investigation of the case. Assistant U.S. Attorney Alfredo De La Rosa of the U.S. Attorney’s Office in Charlotte 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.


title: Dog Daycare Employee Indicted on Charges of Felony Cruelty to Animals for Kicking a Dog to Death

component: USAO - District of Columbia

body_text: WASHINGTON – Adriano Demorais, 33, of Prince George’s County, Maryland, was arrested and arraigned today on an indictment charging him with felony cruelty to animals stemming from an incident on February 16, 2024. Demorais was arraigned on August 27, 2024, at a hearing in Superior Court of the District of Columbia before the Honorable Robert Salerno. If convicted, Demorais faces a maximum statutory sentence of five years in prison. Any sentence will be determined by the Court based on the advisory Sentencing Guidelines and other statutory factors. According to the government’s evidence, on February 16, 2024, Demorais, an employee of District Dogs, was working overnight at the Navy Yard location. Demorais was feeding dogs in the early morning when Bronny, a 5-month-old Mountain Cur/German Shephard dog, was near Demorais’ feet. Demorais forcefully kicked Bronny in the left side of his stomach. Bronny briefly circled the room before collapsing several seconds later. Bronny was transported to a veterinary facility where he was pronounced dead. Demorais admitted to striking Bronny, claiming he kicked Bronny out of frustration over Bronny becoming too energetic while Demorais was trying to feed dogs. A necropsy report confirmed that Bronny’s cause of death was blunt abdominal trauma with subsequent hemorrhagic shock. This case is being investigated by the Humane Rescue Alliance and the Metropolitan Police Department. This case is being prosecuted by Assistant U.S. Attorney Valerie Tsesarenko.


title: Marysville Man Sentenced to 27 Years in Prison for Child Exploitation Charges

component: USAO - California, Eastern

body_text: SACRAMENTO, Calif. — Brent Hooton, 51, of Marysville, was sentenced today by U.S. District Judge Dale A. Drozd to 27 years in prison for sexual exploitation of a child and distribution of child pornography, U.S. Attorney Phillip A. Talbert announced. According to court documents, in May 2021 Hooton produced three images of a severely autistic child who was under the age of 12 engaged in sexually explicit conduct. Hooton shared these images on Kik Messenger with an undercover FBI agent. When Hooton’s phone was searched pursuant to a warrant, agents discovered that in May 2021, Hooton distributed sexually explicit images of the child victim to at least six other users on Kik. Further, in this timeframe, Hooton distributed on Kik at least four images of other children engaged in sexually explicit conduct. This case was the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorneys Audrey B. Hemesath and Denise N. Yasinow prosecuted the case. This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit Justice.gov/PSC .


title: Owners of Local Real Estate Investment Company Indicted in Federal Court for Fraud

component: USAO - Oregon

body_text: PORTLAND, Ore.—An indictment was unsealed in federal court today charging the owners of a local real estate investment company with defrauding individual investors and commercial lenders out of more than $18 million. Robert D. Christensen, 54, of Sherwood, Oregon, and Anthony M. Matic, 55, of Damascus, Oregon, have been charged in a 21-count indictment with conspiracy to commit wire fraud, wire fraud, and money laundering. According to the indictment, from approximately January 2019 through June 2023, Christensen and Matic are alleged to have devised and carried out a scheme wherein they convinced individual investors to fund the purchase and renovation of undervalued residential real estate properties. After renovating the properties, Christensen and Matic claimed they would rent the properties to generate income and then refinance them to extract their increased value from the renovations. The pair further misled investors into believing they would be repaid their full principal investment along with interest as high as eight to fifteen percent and a large lump sum payout, all within periods as short as 30 to 90 days. Christensen and Matic’s scheme failed to generate the promised returns almost immediately and they began using new investments to repay earlier investors to keep their business afloat. When they were unable to raise enough money from new investors, Christensen and Matic are alleged to have devised a separate scheme to defraud commercial lenders. By December 2020, the pair began submitting loan applications with false financial information to different commercial lenders and, based on their misrepresentations, received millions of dollars in loans. In total, Christensen and Matic’s two schemes defrauded individual investors out of more than $11 million and commercial lenders out of more than $7 million. Christensen and Matic made their initial appearances in federal court today before a U.S. Magistrate Judge. Both were arraigned, pleaded not guilty, and released on conditions pending a 7-day jury trial scheduled to begin on October 29, 2024. Conspiracy to commit wire fraud and wire fraud are punishable by up to 20 years in federal prison and three years’ supervised release. Money laundering in punishable by up to 10 years in federal prison and three years’ supervised release. All three charges may also result in fines of up to $250,000 or twice the gross gains or losses resulting from the offense. This case was investigated by the FBI and IRS Criminal Investigation. It is being prosecuted by Assistant U.S. Attorney Robert Trisotto. An indictment is only an accusation of a crime, and defendants are presumed innocent unless and until proven guilty.


title: Sex Trafficker Sentenced to 17.5 years in prison

component: USAO - Michigan, Eastern

body_text: DETROIT –For years, Quiyemabi Summerlin preyed on drug addicted women and lured them into his basement with false promises. Once there, he supplied them with heroin, fentanyl, and cocaine, and forced them to engage in endless commercial sex acts. At times, Summerlin used violence to ensure his victims’ compliance. He also raped several of his victims. Summerlin, 45, of Detroit, was sentenced to 17.5 years for sex trafficking using force and coercion, maintaining a drug premises, and felon in possession of a firearm, announced U.S. Attorney Dawn N. Ison. Ison was joined in the announcement by Special Agent in Charge Cheyvoryea Gibson of FBI Detroit. “This defendant treated his victims like commodities,” stated U.S. Attorney Ison. “He targeted vulnerable women and exploited them for his own profit. He manipulated his victims’ drug addictions and provided them with a constant supply of heroin and crack cocaine. He built a business through violence and coercion without regard to the consequences for other human lives.” "Sex trafficking, violent acts and coercion are never acceptable and will be meticulously investigated by members of FBI Michigan, including local law enforcement partners assigned to the FBI’s Southeast Michigan Trafficking and Exploitation Crimes (SEMTEC) Task Force,” said Cheyvoryea Gibson, Special Agent in Charge of the FBI in Michigan. “The sentencing of Quiyemabi Summerlin is a testament of the diligent work performed by the men and women of the FBI and the thorough prosecution from the United States Attorney’s Office of Eastern Michigan. Mr. Summerlin’s sentencing is an important next step in healing to those victimized by his heinous and deplorable actions.” Summerlin pleaded guilty to trafficking three victims. During the investigation, the FBI identified 25 women that stayed in Summerlin’s home for some period of time, performing commercial sex acts at his direction. The case was investigated by special agents of the FBI and was prosecuted by Assistant United States Attorneys Sara D. Woodward and Tara Hindelang.


title: Former Columbus police officer pleads guilty to stealing cocaine from crime scenes, police evidence room

component: USAO - Ohio, Southern

body_text: COLUMBUS, Ohio – A former Columbus police officer pleaded guilty in federal court here today to crimes involving more than 10 kilograms of cocaine and money laundering. Joel M. Mefford, 35, of London, Ohio, pleaded guilty to two counts of possessing with intent to distribute 500 grams or more of cocaine, one count of possessing with intent to distribute five kilograms or more of cocaine, and one count of money laundering. According to court documents, Mefford was a Columbus police officer assigned to investigate drug crimes. On three occasions between February and April 2020, Mefford worked with another officer to steal and traffic cocaine. In February 2020, Mefford and the other officer were investigating a drug crime and unlawfully gained access to a detached garage belonging to the subject of the investigation. Without a warrant, they entered the garage and discovered two kilograms of cocaine in the rafters. They unlawfully seized one of the kilograms and left the other to be found during the execution of a search warrant the next morning. The other officer gave the stolen narcotics to another individual to sell. Similarly, in February and March 2020, Mefford and the other officer were investigating drug-trafficking activity at houses on Ambleside Drive and Kilbourne Avenue in Columbus. On March 7, 2020, the officers took a bag containing multiple kilograms of cocaine from the house on Ambleside Drive and arrested an individual there. They then traveled to the house on Kilbourne Avenue and removed a kilogram of cocaine. That same day, Mefford turned in one kilogram of cocaine to evidence, and the officers stole the other kilograms to be sold. In April 2020, Mefford and the other officer stole between 10 and 20 kilograms of cocaine from the Columbus police property room and replaced it with fake cocaine. Mefford transported the stolen cocaine in a police cruiser and the other officer later gave the drugs to another individual to sell. The drug proceeds were then given to the other officer, who provided Mefford his cut. Mefford personally received a total of approximately $130,000 from cocaine sales. Mefford deposited more than $72,000 of the cash derived from the cocaine sales into his personal bank account. Possessing with intent to distribute five kilograms or more of cocaine is punishable by at least 10 years and up to life in prison. Possessing with intent to distribute 500 grams or more of cocaine carries a potential penalty of five to 40 years in prison. Money laundering is punishable by up to 10 years in prison. Congress sets the minimum and maximum statutory sentences. Sentencing of the defendant will be determined by the Court at a future hearing based on the advisory sentencing guidelines and other statutory factors. Kenneth L. Parker, United States Attorney for the Southern District of Ohio; and Elena Iatarola, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the plea entered today before U.S. District Judge Edmund A. Sargus Jr. Assistant United States Attorneys Peter K. Glenn-Applegate and Elizabeth A. Geraghty are representing the United States in this case. The case was investigated by the FBI’s Southern Ohio Public Corruption Task Force, which includes special agents and officers from the FBI, Ohio Attorney General’s Bureau of Criminal Investigation, the Ohio Auditor of State’s Office and the Columbus Division of Police. # # #


title: Cincinnati woman sentenced to 2 years in prison for laundering money for online romance scammers

body_text: CINCINNATI – A Cincinnati woman was sentenced in U.S. District Court to 24 months in prison for laundering money for online romance scammers. Pamela Moore, 65, admitted in her guilty plea in February 2024 that she laundered more than $8 million in scam proceeds. According to court documents, between 2020 and 2023, Moore’s personal and business bank accounts with multiple banks received more than $8 million in criminally derived funds. Moore personally received approximately $1.7 million of the funds, which she used or converted to Bitcoin at the direction of the scammers. For example, Moore maintained multiple business bank accounts for PSM Custom Designs and Jewelries and used the purported jewelry business accounts solely for money laundering. As part of her sentence, Moore will pay $1,680,900 in restitution. Kenneth L. Parker, United States Attorney for the Southern District of Ohio; Karen Wingerd, Special Agent in Charge, Internal Revenue Service - Criminal Investigation (IRS-CI); and Yvonne Dicristoforo, Special Agent in Charge, United States Secret Service; announced the sentence imposed by Senior U.S. District Judge Michael R. Barrett. Assistant United States Attorneys Ebunoluwa A. Taiwo and Ryan A. Keefe represented the United States in this case. # # #


title: Local attorney pleads guilty to child pornography crimes

body_text: COLUMBUS, Ohio – A local attorney pleaded guilty in federal court here today to receiving and possessing child pornography. The plea agreement for Stephen Chinn, 40, of Columbus, includes a recommended sentence of 60 to 108 months in prison. According to court documents, in May 2023, Chinn uploaded child pornography to the internet that depicted prepubescent minors engaged in sexually explicit conduct including sex acts with adults and animals. These uploads were flagged by the National Center for Missing and Exploited Children (NCMEC). When investigators executed a search warrant in August 2023 at Chinn’s Grandview Heights residence, they discovered a desktop computer containing more than 4,000 child sexual abuse images. In addition, a forensic analysis of Chinn’s computer revealed he had downloaded and saved other child sexual abuse material in August 2023. The material included prepubescent children engaged in bestiality and sexual intercourse with adults, as well as minor victims subjected to sadistic and masochistic abuse. Forensic data revealed that much of this content was downloaded from a Russian social media site known to be used for the download and exchange of child sexual abuse material. At the time, Chinn was employed as a public defender in Franklin County. Chinn was initially arrested charged locally with Pandering Sexually Oriented Matter Involving a Minor and Pandering Obscenity. Chinn was released on bond in that matter. He was charged federally in September 2023, and the federal indictment superseded the charges in his local case. The case was investigated by the Franklin County Internet Crimes Against Children (ICAC) Task Force. Kenneth L. Parker, United States Attorney for the Southern District of Ohio; Angie M. Salazar, Special Agent in Charge, Homeland Security Investigations (HSI); Grandview Heights Police Chief Ryan Starns; Franklin County Sheriff Dallas Baldwin; and Franklin County Prosecutor Gary Tyack announced the guilty plea entered today. Assistant United States Attorneys Emily Czerniejewski and Noah R. Litton are representing the United States in this case. # # #


title: Columbus woman sentenced to more than 23 years in prison for kidnapping infant twins

body_text: COLUMBUS, Ohio – A Columbus woman was sentenced in U.S. District Court today to 280 months in prison for two counts of kidnapping a minor. Nalah T. Jackson, 26, kidnapped two infants in December 2022 and traveled interstate with one of them. “Jackson left one five-month-old twin baby alone and strapped in a car seat in an airport parking lot in subzero temperatures. Then, she left the other twin baby strapped in his car seat in an abandoned vehicle in another state. Even if her crime had started as a crime of opportunity to steal a running vehicle, Jackson’s blatant disregard for the lives of two helpless infants is heinous,” said U.S. Attorney Kenneth L. Parker. “Today’s sentence represents the serious and significant nature of harm Jackson caused to these children and our community.” According to court documents, close to 10pm on the night of Dec. 19, Jackson walked out of Donatos Pizza on North High Street in Columbus and drove away in a black Honda Accord that had been left running in the parking lot. Two twin five-month-old infants were buckled in the back seat. The infants’ mother was inside Donatos to pick up a delivery order at the time. Over the next several hours, Jackson drove from Columbus to Dayton and to various other locations in central and western Ohio. Jackson arrived at the Dayton International Airport close to 3am. She parked in an economy lot and left the infants in the car while she entered the airport. Jackson attempted to hire an Uber to find the stolen car in the economy lot, but could not pay, and ultimately found the stolen car on foot. After finding the vehicle, Jackson left one of the infants in the parking lot at approximately 4am. A passerby parking their vehicle saw the baby in his car seat wrapped in a quilt between two vehicles and alerted security. After Jackson left the Dayton International Airport parking lot at high speeds, she traveled to Indianapolis with the second baby still in the vehicle. She arrived at a Papa Johns Pizza on Indiana Avenue near the university district at approximately 8am on Dec. 20, and exited the stolen car on foot. She never returned to the vehicle, leaving the second baby strapped in his car seat in the back seat of the car. The baby remained strapped in the car seat for the next two-and-a-half-days while family members, concerned citizens and law enforcement officers continued to search for him. By happenstance, an Indianapolis woman encountered Jackson after she abandoned the stolen vehicle on Dec. 20. Jackson was selling stolen merchandise outside of a local gas station. The woman gave Jackson a ride to a nearby shopping plaza and gave Jackson her cell phone number in case Jackson came across any more holiday gifts for resale. That night, the woman noticed several social media posts regarding the kidnapping and recognized Jackson as the alleged kidnapper. The woman called her cousin, and together they formulated a plan to meet up with Jackson to confirm her identity, recover the infant if possible and lead Jackson to law enforcement. On Dec. 22, the women met up with Jackson, whom they traced to a local residence through a phone number Jackson had previously used to call one of them. The women confirmed that Jackson was the same person identified as the kidnapping suspect and drove her to several shopping centers in Indianapolis, all-the-while surreptitiously attempting to contact law enforcement in Columbus and Indianapolis. Eventually, one of the women was able to route local law enforcement to their vehicle over the phone by pretending that she was speaking with her boyfriend and providing updates on her location. The women tried to signal to Indianapolis police that Jackson was the kidnapping suspect, and eventually told officers when they were removed from Jackson’s immediate presence. Jackson provided a false name and another individual’s identification card to the officers. After some time, the officers confirmed Jackson’s identity and arrested her for kidnapping. After the arrest, they let the two women go without interviewing them about their time spent with Jackson. The two women decided to continue searching for the missing infant. They discovered a bus schedule that Jackson left behind in the backseat of their vehicle and decided to focus their search on a bus route near the university district. While driving around searching that area to no avail, and with driving conditions worsening quickly due to an impending snowstorm, the women decided to get something to eat before heading home. As they were pulling into a Blaze Pizza, they noticed a black Honda Accord at the nearby Papa Johns and noticed snow had already accumulated on the car. They drove up to the stolen car and attempted to open the back door, which was locked. The driver’s door did open. Due to an overwhelming foul smell coming from the car, and the silence of the baby, one of the women screamed, assuming the baby was deceased. Upon hearing the scream, the baby alerted and began crying. One of the women removed the baby from his car seat and began comforting him. The women then noticed an empty Indianapolis police cruiser parked nearby and began looking for officers, who they found on their lunch break inside the Blaze Pizza. Indianapolis police then relocated to Papa Johns Pizza and took custody of the baby, taking him to a local hospital. The infant was treated for dehydration, heart abnormalities due to the dehydration, extreme diaper rash and skin deterioration due to him being buckled in a car seat for three days while sitting in his own excrement. Jackson was charged federally in January 2023. U.S. Attorney Parker acknowledged the numerous law enforcement agencies who have assisted in this case, including FBI offices in Columbus, Dayton and Indianapolis; the Columbus, Dayton, Huber Heights, Riverside, Vandalia, Dayton International Airport and Indianapolis police departments; the Montgomery County Sheriff’s Office; Ohio State Highway Patrol and U.S. Marshals Service’s Southern Ohio Fugitive Apprehension Strike Team (SOFAST). Assistant United States Attorneys Emily K. Czerniejewski and Noah R. Litton are representing the United States in this case. # # #


title: Former Real Estate Executive Sentenced To 14 Months In Prison For Defrauding Williams Sonoma

component: USAO - California, Northern

body_text: SAN FRANCISCO – Augusto Alizo was sentenced today to 14 months in prison for charges related to his role in a multi-million-dollar fraud scheme, announced United States Attorney Ismail J. Ramsey and IRS Criminal Investigation (IRS-CI) Acting Special Agent in Charge Michael Mosley. The sentence was handed down by the Hon. Richard Seeborg, Chief U.S. District Judge. On February 27, 2024, Alizo, 52, of Weston, Florida, admitted he conspired with two co-defendants—a Vice President at Williams Sonoma, Inc. (WSI), and Kourosh Mirmehdi, Alizo’s direct report at the global logistics company where they both worked—to divert and steal more than $4.1 million in commercial real estate broker commission rebates that should have gone to WSI. WSI is a home-goods retailer headquartered in San Francisco that operates brands such as Williams Sonoma, Pottery Barn, and West Elm. The global logistics company where Alizo worked helped clients secure commercial real estate, including large commercial warehouses. In his plea agreement, Alizo admitted that he concealed from the global logistics company that co-defendant Mirmehdi was helping WSI obtain commercial warehouse space. Alizo also admitted that he and his co-defendants concealed from WSI and the global logistics company that he, Mirmehdi, and the conspiring Vice President at WSI pocketed real estate broker commissions rebates that should have gone to WSI. As part of his plea agreement, Alizo admitted that from 2020 through 2022, co-defendant Mirmehdi was working to secure commercial warehouse space for WSI in Georgia, New Jersey, Arizona, and California. Alizo hid this from their employer. Alizo also hid from their employer the fact that his co-defendants were negotiating with real estate brokers to obtain broker commission rebates that should have gone to WSI. These broker commissions rebates were paid to a shell company owned by the conspiring WSI Vice President, and then distributed to private bank accounts controlled by Alizo and his co-conspirators. Alizo also admitted in his plea agreement that he knew co-defendant Mirmehdi was holding himself out to real estate brokers as an employee of the global logistics company and that in negotiating with real estate brokers Mirmehdi was benefitting from status and bargaining power due to his position and title at the global logistics company. Alizo further admitted that he knew Mirmehdi was falsely and deceptively representing that WSI was the global logistics company’s client when in fact it was not. Alizo concealed this deception from his and Mirmehdi’s employer. As part of his plea agreement, Alizo admitted that he acted with the intent to deceive and cheat both his employer and WSI to further the scheme and conspiracy to defraud so that he and his co-defendants could obtain broker commissions rebates that should have gone to WSI. Alizo admitted that he received approximately 25% of the broker commissions and rebates obtained as part of the conspiracy. Alizo admitted that the conspirators obtained a total of $4,110,323.81 and that he personally obtained $965,526.51. In a memorandum filed for the sentencing, the government argued that Alizo’s involvement in the fraud conspiracy was critical. Rather than using his authority as a corporate executive to stop the fraud before it began, Alizo gave his direct report, co-defendant Mirmehdi, the green light to engage in fraud, identified how the conspirators would conceal the fraud, and ensured the fraud would not be discovered by his employer. As a result, Alizo pocketed nearly $1 million in fraud proceeds. Alizo was indicted by a federal grand jury on April 11, 2023. He was charged with one count of wire fraud conspiracy, in violation of 18 U.S.C. § 1349; four counts of wire fraud, in violation of 18 U.S.C. § 1343; and one count of money laundering conspiracy, in violation of 18 U.S.C § 1956(h). Under the plea agreement, Alizo pleaded guilty to the wire fraud conspiracy. In addition to the 14-month term of imprisonment, Chief Judge Seeborg further sentenced the defendant to a two-year period of supervision following his release from prison and ordered Alizo to pay $965,526.51 in restitution to Williams Sonoma. Alizo was ordered to surrender into custody on December 2, 2024. Assistant U.S. Attorney Christiaan Highsmith is prosecuting the case with the assistance of Sara Slattery. The prosecution is the result of an investigation by the IRS-CI.


title: Former Kearney Man Sentenced to 9 Years for Wire Fraud

component: Federal Bureau of Investigation (FBI)

body_text: United States Attorney Susan Lehr announced that Jeffery S. Sikes, age 43, formerly of Kearney, Nebraska, was sentenced on August 27, 2024, in federal court in Lincoln, Nebraska for committing wire fraud. Senior United States District Judge John M. Gerrard sentenced Sikes to 108 months’ imprisonment. After Sikes’ release from prison, he will begin a 3-year term of supervised release. There is no parole in the federal system. Sikes was additionally ordered to pay $819,169.96 in restitution to the victims of his crimes. Beginning in early 2012, and continuing through on or about July 1, 2014, Sikes devised and enacted multiple fraudulent schemes in the District of Nebraska. The Indictment charged Sikes with enacting several separate schemes with different victims being preyed upon by Sikes for each individual scheme. In each scheme Sikes defrauded others, obtaining money and property by the means of materially false and fraudulent pretenses, representations, promises, and omissions and during the course of which different wires or mails would be used in furtherance of the schemes. The charges included a scheme representing to real estate developers that Sikes had located tenants and demanding a finder’s fee—when in fact no tenants existed. In another scheme, Sikes convinced others to invest their retirement into an alleged new research and development company which did not in reality exist. Each scheme typically included complex fraudulent documents which were used to lull the victims into a sense of security. In the scheme to which Sikes pled guilty, he approached B & J Partnership, d/b/a Speedway Properties (“B & J”), as a “consultant” for Vanguard Nebraska, a limited liability company (“Vanguard”). He contacted B & J about obtaining a lease for commercial space owned by B & J in Lincoln, Nebraska. Sikes represented to B & J that Vanguard intended to establish laboratory space in Lincoln for use in research and development. Sikes proposed that B & J provide $750,000 in financing for the build out of the commercial space owned by B & J. He provided complex falsified documents to convince B & J to enter into the lease and to finance the building including fraudulent balance sheets and IRS tax forms; fraudulent information about purported subcontractors who were allegedly responsible for the construction; and fraudulent bills payable from said subcontractors for work performed or materials related to the construction costs for the property. In reality, Vanguard was never a real company. All documents submitted to B &J and others concerning Vanguard and the subcontractors allegedly working on the project were manufactured and fraudulently created by Sikes and others working with Sikes. During the course of this scheme, Sikes directed the disbursement of funds for fraudulent invoices of $507,231.96 causing a loss to B & J. In addition to the loss to B & J, the other schemes mentioned within the Indictment resulted in the loss of an additional $311,938 to other victims. In total, Sikes is responsible for defrauding multiple companies, organizations, and individuals for $819,169.96. Sikes pled guilty to one count of wire fraud on April 28, 2017. On January 5, 2018, Sikes did not appear for his sentencing hearing and a warrant was issued for his arrest. It was later determined that Sikes fled Nebraska to Alabama, where he was living in hiding with others and using the alias “Kenneth Allen.” In February of 2022, Sikes was arrested and charged with conspiracy to maliciously destroy by fire in the District of Alabama—a crime for which he was convicted on May 30, 2023. Pursuant to the documents in that case, while living as a fugitive in Alabama, Sikes led a conspiracy of seven other co-defendants. As part of the conspiracy, Sikes and the others set fires to four different Walmart stores in Alabama and Mississippi. Each of the fires were set during business hours while customers, employees, and vendors were inside the stores. In the lead up to setting these fires, Sikes and his conspirators had meetings and drafted a “Declaration of War and Demands for the People” that made demands and consisted of threats against Walmart if their demands were not met. Sikes pled guilty to the conspiracy charge in the Alabama case. He was sentenced to 216 months’ (18 years) imprisonment, supervised release for 3 years, and to pay restitution in the amount of $7,295,533.23 to be paid jointly and severally with co-defendants from that case. After Sikes’ sentencing in Alabama, he was returned to the District of Nebraska to face sentencing for his crimes committed as part of this case in the District of Nebraska. The sentence of imprisonment imposed today by Senior District Judge Gerrard was ordered to be consecutive to Sikes’ term of imprisonment imposed in the Alabama case. Following today’s sentencing United States Attorney Susan T. Lehr stated “The United States Attorney’s Office is dedicated to ensuring justice is served for all crimes committed in the District of Nebraska and to holding defendants accountable regardless of the number of years it takes. Jeffery Sikes’ serious crimes perpetrated against numerous Nebraska citizens and businesses was not forgotten and today’s sentence is a reflection of the dedication and hard work of all those involved with this case both before and after Sikes fled in 2018.” "Jeffrey S. Sikes' fraudulent schemes had devastating financial consequences for his Nebraska victims," said FBI Omaha Special Agent in Charge Eugene Kowel. "His attempt to avoid facing the consequences of his crimes was futile. No matter how long it takes, the FBI is dedicated to working with our federal, state, and local law enforcement partners to bring criminals to justice." This case was investigated by the Federal Bureau of Investigation.


title: Knox County Enters Into Settlement Agreement Following Complaint by Deaf Citizen

component: USAO - Texas, Northern

body_text: Knox County, Texas will take steps to ensure qualified sign language interpreters, real-time transcription services, and other accommodations are available to deaf and hard-of-hearing citizens as required by the Americans with Disabilities Act, announced U.S. Attorney for the Northern District of Texas Leigha Simonton. In February of 2020, a citizen contacted the county, via email, about arranging a marriage ceremony at the county courthouse. He explained that both he and his fiancée (now spouse) are deaf and would need an interpreting service. The county’s Justice of the Peace responded, also via email, that “the arrangement for an interpreter will need to be made by you and funded by you.” The Justice Department later determined that the response constituted a violation of Title II of the Americans with Disabilities Act (ADA), which requires public entities to “furnish appropriate auxiliary aids and services where necessary to afford individuals with disabilities … an equal opportunity to participate in, and enjoy the benefits of, a service, program, or activity of a public entity.” The county entered into a settlement agreement with the United States Attorney’s Office on Aug. 27. The agreement requires the county to post a notice outlining its responsibilities under the ADA on its website, in conspicuous locations in each of its public buildings, and in a newspaper of general circulation serving the county. It also requires the county to identify and develop procedures for using vendors able to provide sign language interpreters, real-time transcription services, braille, and other accommodations, and to develop and implement a training program to educate its employees on the requirements of the Americans with Disabilities Act. Complaints that a county service, program, or activity is not accessible to persons with disabilities may be directed to the Knox County Judge at (940) 459-2191 or cojudge@knoxcountytexas.org . Under the terms of the agreement, any complaints made to the county alleging discrimination based on disability must be forwarded to the Department of Justice within 21 days.