title: Huntington Man Sentenced to Prison for Role in Methamphetamine Trafficking Ring

component: USAO - West Virginia, Southern

body_text: CHARLESTON, W.Va. – Elijah Figg, also known as "Bang," 24, of Huntington, was sentenced today to five years and three months in prison, to be followed by three years of supervised release, for distribution of a quantity of methamphetamine. Figg admitted to his role in a drug trafficking organization (DTO) that operated in the Charleston area. According to court documents and statements made in court, on December 29, 2020, Figg sold 3 pounds of methamphetamine for $16,500 to an individual in Charleston. Figg admitted to using his mobile device to communicate with the individual to arrange the deal. Figg further admitted that he knew the individual was going to redistribute the methamphetamine. After the transaction, Figg traveled with four other people to the Beckley area of Raleigh County. Law enforcement officers attempted a traffic stop of the vehicle, and the driver attempted to flee. The pursuit ended when the vehicle struck some utility poles. Officers searched the vehicle and found $18,332 and methamphetamine residue. Figg admitted that the money found included the $16,500 he received from the methamphetamine transaction. Figg participated in a participated in a DTO responsible for distributing large quantities of methamphetamine in the Charleston area. A dozen individuals pleaded guilty in connection with this prosecution. During the course of the nearly year-long investigation, law enforcement seized approximately 15 pounds of methamphetamine, 45 firearms, including an IMI Industries Uzi fully automatic 9mm submachine gun, and more than $375,000 in cash. United States Attorney Will Thompson made the announcement and commended the Drug Enforcement Administration (DEA), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Charleston Police Department and the Metropolitan Drug Enforcement Network Team (MDENT) for their investigative work, and the U.S. Marshals Service, the West Virginia State Police, and the Appalachia High Intensity Drug Trafficking Area (HIDTA) for providing assistance. Senior United States District Judge John T. Copenhaver, Jr. imposed the sentence. Assistant United States Attorney Monica D. Coleman prosecuted the case. The investigation was part of the Department of Justice’s Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations, and is the keystone of the Department of Justice’s drug reduction strategy. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking organizations, transnational criminal organizations, and money laundering organizations that present a significant threat to the public safety, economic, or national security of the United States. A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case Nos. 2:21-cr-32 and 2:23-cr-88. ###


title: Steuben County man going to prison for possession of child pornography

component: USAO - New York, Western

body_text: ROCHESTER, N.Y. - U.S. Attorney Trini E. Ross announced today that John Buckley, 61, of Wayland, NY, who was convicted of possession of child pornography, was sentenced to serve 10 years in prison by Chief U.S. District Judge Elizabeth A. Wolford. Assistant U.S. Attorney Kyle P. Rossi, who handled the case, stated that between August and December 2021, Buckley used his cellphone to take sexually explicit photos of a minor female. On August 30, 2022, the FBI executed a federal search warrant on the cellphone and recovered 31 images containing child pornography, including images of the minor female. The sentencing is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Matthew Miraglia. Additional assistance was provided by the FBI Chicago Field Office and the Joliet, Illinois Police Department. # # # #


title: Honduran convicted smuggler imprisoned for illegally entering country after seven removals

component: USAO - Texas, Southern

body_text: LAREDO, Texas – A 42-year-old Honduran man has been sentenced following another conviction for illegally re-entering the United States following an order of removal, announced U.S. Attorney Alamdar S. Hamdani. Abner Jovani Castellanos pleaded guilty Oct. 4, 2023. U.S. District Judge Marina Garcia Marmolejo has now ordered him to serve 30 months in federal prison to be immediately followed by three years of supervised release. At the hearing, the court heard about Castellanos’ previous conviction in 2008 for human smuggling, in which he worked as a brush guide in a smuggling operation. During that attempt, an El Salvadoran man obtained serious injuries and part of his leg had to be amputated after it was caught underneath a moving train – Castellanos and another brush guide ordered the man to jump off the train. On June 10, 2023, law enforcement encountered Castellanos near Laredo. He was first ordered to be removed from the United States on June 5, 2001, with six subsequent removals from 2001 to 2020, along with prior convictions for illegal entry and illegal re-entry. Castellanos will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future. Border Patrol conducted the investigation. Special Assistant U.S. Attorney Terence A. Check Jr. and Assistant U.S. Attorney Brandon Scott Bowling prosecuted the case.


title: Santa Clara Man Sentenced to 35 Years for Production of Child Pornography

component: USAO - New Mexico

body_text: ALBUQUERQUE – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Jason T. Stevens, Acting Special Agent in Charge of Homeland Security Investigations - El Paso, announced today that Michael Rivera was sentenced to 35 years in prison. A federal jury convicted Rivera, 33, of Santa Clara, on July 11, 2023, of one count of coercion and enticement of a minor and two counts of production of a visual depiction of a minor engaging in sexually explicit conduct after less than two hours of deliberation. A federal grand jury indicted Rivera on Sept. 21, 2022. According to the evidence at trial and other publicly available court records, in 2020, Rivera befriended a minor identified as Jane Doe. Doe and Rivera became close. One day in March of 2021, when Doe was 12 years old, Rivera stopped at a convenience store and bought alcohol for both. He then drove to a secluded area of town and parked the car. Rivera then initiated sexual intercourse with Doe in the car. Afterward, Rivera told Doe that she could not tell anyone because he could get in trouble. Following the incident, Rivera maintained contact with Doe by phone. Later that same year, Rivera began requesting that Doe send him naked photos and videos of herself via text message. Rivera received several items of child sexual abuse material from Doe. At sentencing, the court found that Rivera gained Jane Doe’s family’s trust so that he could be alone with the victim, groomed her in preparation of commissioning a sexual act or sexual contact and was able to later entice her to produce child pornography. Upon his release from prison, Rivera will be subject to 30 years of supervised release and must register as a sex offender. Homeland Security Investigations investigated this case with the assistance of the Grant County Sheriff’s Office, the Las Cruces Police Department, and the Federal Bureau of Investigation. Assistant United States Attorneys Marisa A. Ong, Eliot Neal and Matilda McCarthy Villalobos prosecuted the case. # # # 24-21


title: Former Banking Executive Pleads Guilty to Evading Anti-Money Laundering Regulations

component: Criminal Division

body_text: The former vice president of a bank located in Missouri pleaded guilty today to assisting high-risk bank customers in evading the bank’s anti-money laundering controls. Peter McVey, 45, of Kansas City, Missouri, who served as vice president and director of treasury services for a bank, pleaded guilty to failing to maintain an appropriate anti-money laundering program under the Bank Secrecy Act (BSA). According to court documents, between April 2014 and July 2022, McVey assisted high-risk bank customers engaged in deceptive sweepstakes and short-term online loan activities in evading the bank’s anti-money laundering controls. Specifically, McVey worked with other bank officials and customers to submit fraudulent Currency Transaction Report exemption forms to the Financial Crimes Enforcement Network and knowingly accepted forged bank forms from customers that permitted them to exceed applicable limits on daily transaction values. McVey also admitted that he did not follow know-your-customer or suspicious activity report requirements. McVey faces a maximum penalty of 10 years in prison. He will also pay a fine of $20,000, which is equal to his 2018 bonus from the bank. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division, U.S. Attorney Teresa A. Moore for the Western District of Missouri, Special Agent in Charge Justin R. Bundy of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG) Kansas City Region, Special Agent in Charge Thomas F. Murdock of the IRS Criminal Investigation (IRS:CI) St. Louis Field Office, and Assistant Director Michael Nordwall of the FBI’s Criminal Investigative Division made the announcement. FDIC-OIG, IRS:CI, and the FBI are investigating the case. Trial Attorney Chad M. Davis of the Criminal Division’s Money Laundering and Asset Recovery Section (MLARS) and Assistant U.S. Attorneys Kathleen D. Mahoney, Patrick D. Daly, and Matthew N. Sparks for the Western District of Missouri are prosecuting the case. MLARS’ Bank Integrity Unit investigates and prosecutes banks and other financial institutions, including their officers, managers, and employees, whose actions threaten the integrity of the individual institution or the wider financial system.


title: D.C. Rapper, a Fox 5 Gang Affiliate, Sentenced to 30 Months in Prison on Multiple Firearms Charges

component: USAO - District of Columbia

body_text: WASHINGTON – Russell Campbell, 21, of Washington, D.C., was sentenced today to 30 months in prison in connection with his possession of a Glock firearm and possession of an AK-style pistol recovered during a traffic stop by the U.S. Secret Service. The sentencing was announced by U.S. Attorney Matthew M. Graves, FBI Special Agent in Charge David J. Scott of the Washington Field Office Criminal and Cyber Division, Special Agent in Charge Craig Kailimai of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Special Agent in Charge Michael Buck of the U.S. Secret Service Uniformed Division, and Chief Pamela A. Smith, of the Metropolitan Police Department (MPD). Campbell is an influential rapper who performs as “Gizwop.” He is affiliated with a violent group originating in 37th Place SE that refers to themselves as the Fox 5 Gang. In addition to the prison term, Campbell was ordered by U.S. District Court Judge Christopher R. Cooper to serve three years of supervised release. Campbell pleaded guilty September 21, 2023, to a two-count indictment, charging him with one count of unlawful possession of a firearm while under indictment and one count of unlawful possession of a firearm and ammunition by a person convicted of a felony. According to the government’s evidence, on November 8, 2020, Campbell was charged in D.C. Superior Court for carrying a pistol without a license. While on release in that case, on June 20, 2021, Campbell was armed with a loaded firearm while in the vicinity of a gas station on the 2200 block Bladensburg Road NE. Specifically, from Campbell’s waistband, officers recovered a Glock 45 with 23 rounds of ammunition loaded in an extended magazine. Four months later, on October 20, 2021, while still under court-ordered supervision, Campbell was involved in a shootout in the 200 block of 37th Place SE. Campbell was charged in D.C. Superior Court and ultimately plead guilty to carrying a pistol without a license in connection with this shootout on May 25, 2022. On June 7, 2022, Campbell was sentenced to six months in prison, with all that time suspended under the Youth Rehabilitation Act (YRA), and with 18 months’ supervised probation. Despite being a felon, and after having been ordered by the Court to not possess any firearms, on November 11, 2022, Campbell occupied a vehicle containing five firearms, one of which was forensically linked to him. On the evening of November 10, 2022, surveillance from the 200 block of 37th Place SE recorded Campbell entering a vehicle at about 5:30 p.m. carrying a green and black backpack, later found to contain an AK-style pistol. About 3 a.m. on November 11, 2022, Campbell, four others left the club in the vehicle. U.S. Secret Service performed a traffic stop on the vehicle Campbell occupied in the 800 block of 7th Street, NW. Therein, law enforcement found five different firearms and the green and black backpack. Inside the backpack was a Zastava AK-Style with an extended magazine holding thirty .556 caliber live rounds and one live round in the chamber. Campbell was included in the DNA profile from the AK-Style pistol and the attached magazine. This case was investigated by the MPD. It was prosecuted by Assistant U.S. Attorney Sitara Witanachchi of the Violence Reduction and Trafficking Offenses Section in the U.S. Attorney’s Office for the District of Columbia with valuable assistance provided by former Assistant U.S. Attorney Andy Wang.


title: Rochester man pleads guilty to submitting false claims to the IRS resulting in a refund of hundreds of thousands of dollars

body_text: ROCHESTER, N.Y. – U.S. Attorney Trini E. Ross announced today that Eugene Jamar Thomas, 45, of Rochester, NY, pleaded guilty before Chief U.S. District Judge Elizabeth A. Wolford to submitting false claims to the Internal Revenue Service. The charge carries a maximum penalty of five years in prison and a $250,000 fine. Assistant U.S. Attorney Meghan K. McGuire, who is handling the case, stated that on his 2015 tax return, Thomas reported that he earned $819,934 of interest income in 2015 and that he had $818,834 of that income withheld and paid to the IRS as tax. Thomas falsely claimed that he was entitled to a refund of $495,655. After receiving the fraudulent refund, Thomas deposited the $482,017 check into two separate bank accounts. In September and October 2016, Thomas withdrew approximately $226,000 from these accounts. Subsequently, the IRS discovered the fraudulent filing and return, and immediately levied the bank accounts, recovering approximately $256,250. In actually, Thomas did not earn any interest income in 2015, did not have any interest income withheld, and was not entitled to any refund. In addition, on his 2016 tax return, Thomas again falsely claimed that he had earned $4,731,845 of interest income and had $4,683,641 of that income withheld and paid to the IRS. The IRS flagged the 2016 tax return and did not pay a $2,683,945 anticipated refund to Thomas. The plea is the result of an investigation by the Internal Revenue Service, Criminal Investigation Division, under the direction of Thomas Fattorusso, Special Agent-in-Charge, New York Field Office. Sentencing is scheduled for April 25, 2024, before Judge Wolford. # # # #


title: Firearm Discharge in Residential Neighborhood Leads to Federal Charge for Bangor Man

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

body_text: BANGOR, Maine: A Bangor man pleaded guilty today in U.S. District Court in Bangor to being a felon in possession of a firearm and ammunition. According to court records, in September 2023, officers with the Bangor Police Department responded to a report that a male had fired a handgun in a residential area. A bystander directed officers to Toman Caudill , 31, and he was taken into custody when officers found a box of 9mm ammunition in his backpack. Further investigation revealed that Caudill had discharged a Ruger 9mm pistol and then handed the firearm to his fiancée as officers approached. Caudill stated that he had fired the gun due to an altercation with another male. The Ruger 9mm pistol was recovered and seized, as was the ammunition from Caudill’s backpack. Caudill is prohibited from possessing a firearm or ammunition due to multiple prior felony convictions. Caudill faces up to 15 years in prison, a fine up to $250,000 and up to three years of supervised release. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. The Bangor Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. ###


title: Marathon County Man Sentenced To 7 Years For Possessing Fentanyl Intended For Distribution

component: USAO - Wisconsin, Western

body_text: MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Jacob L. Gould 34, Weston, Wisconsin was sentenced today by U.S. District Judge William M. Conley to 7 years in federal prison for possessing 40 grams or more of fentanyl with intent to distribute. Gould pleaded guilty to this charge on October 25, 2023. Law enforcement began investigating Gould for drug trafficking after receiving information from several confidential informants. On January 6, 2023, after learning that Gould had visited the location of his drug supplier, officers attempted to stop and arrest him. Gould fled, leading law enforcement on a high-speed chase that reached speeds of 112 miles per hour. Law enforcement eventually stopped Gould’s car, but Gould fled on foot and threw a bag along the way. Officers ultimately arrested Gould and recovered the bag, which contained 102 grams of fentanyl. During a post-arrest interview, Gould admitted he had picked up the 100 grams of fentanyl to sell it. He also admitted picking up 70 grams of fentanyl days prior for the same purpose. Officers searched Gould following his arrest and, in his pocket, found a key to a safe. Law enforcement then searched Gould’s home and located the safe. Inside, they found a Glock handgun, fentanyl, and methamphetamine. At sentencing, Judge Conley described Gould’s fentanyl trafficking as a serious offense that endangered the community. The charge against Gould was the result of an investigation conducted by FBI’s Central Wisconsin Narcotics Task Force, comprised of investigators from the FBI, Everest Metro Police Department, Marathon County Sheriff’s Office, Wisconsin State Patrol, Lincoln County Sheriff's Office, Wausau Police Department and Wisconsin National Guard Counter Drug Program, with the assistance of the Marathon County District Attorney’s Office. Assistant U.S. Attorneys Anita Marie Boor and Jennifer Remington prosecuted this case.


title: Recovery of 1299 Grams of Fentanyl, 227 Grams of Methamphetamine, and Firearms Leads to 15+ Year Sentence for Wade Man

component: Drug Enforcement Administration (DEA)

body_text: BANGOR, Maine: A Wade man was sentenced today in U.S. District Court in Bangor for possession of fentanyl and methamphetamine with intent to distribute, possession of a firearm by an unlawful user of controlled substances, and conspiracy to distribute and possess with the intent to distribute methamphetamine and fentanyl. U.S. District Judge John A. Woodcock, Jr. sentenced Daniel White , 57, to 188 months in prison followed by five years of supervised release. White pleaded guilty on July 24, 2023. According to court records, on November 30, 2022, U.S. Drug Enforcement Administration (DEA) and Maine Drug Enforcement Agency (MDEA) agents executed a search warrant at White’s home in Wade. Drug paraphernalia, three pistols and two rifles, and $12,586 in drug proceeds were found in the residence. Investigators recovered more than 1299 grams of fentanyl from White’s bedroom, near a loaded weapon. Just 2 milligrams of fentanyl is considered a potentially lethal dose. Investigators also recovered more than 227 grams of methamphetamine. The investigation revealed that between January 1, 2021, and November 30, 2022, White conspired with others to distribute and possess with the intent to distribute 50 grams or more of methamphetamine, 500 grams or more of a mixture or substance containing methamphetamine, and 400 grams or more of fentanyl. During this time, White regularly obtained the drugs from his out-of-state source of supply and would distribute the drugs through a network of dealers in Aroostook County. The DEA and MDEA investigated the case. ###


title: New Orleans Man Pleads Guilty to Heroin and Cocaine Distribution Conspiracy

component: Federal Bureau of Investigation (FBI)

body_text: NEW ORLEANS, LOUISIANA – DONALD MYLES, a/k/a “D-Ray ,” age 46, a New Orleans resident, pleaded guilty on January 10, 2024, before U.S. District Judge Mary Ann Vial Lemmon to conspiracy to distribute 100 grams or more of heroin and a quantity of cocaine, in violation of Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(B), 841(b)(1)(C), and 846, announced U.S. Attorney Duane A. Evans. According to court documents, the Federal Bureau Investigation New Orleans Gang Task Force and the New Orleans Police Department investigated MYLES for his involvement in a drug distribution operation in September 2020. The investigation involved numerous controlled purchases of heroin and cocaine from MYLES . The investigation revealed that MYLES conspired with JOHN CRAWFORD, KEVIN JOHNSON, CHRISTOPHER JOHNSON, and others to distribute heroin and cocaine. MYLES faces a mandatory minimum of five years, up to forty years imprisonment, a fine of up to $5,000,000, at least four years of supervised release following any term of imprisonment, and a $100 mandatory special assessment fee. The U.S. Federal Bureau of Investigation New Orleans Gang Task Force, with the assistance of the New Orleans Police Department, the Jefferson Parish Sheriff’s Office, and the Gretna Major Crimes Task Force, led the investigation. The prosecution is being handled by Assistant United States Attorney J. Benjamin Myers of the Narcotics Unit.


title: Spring Valley Man Sentenced To One Year And One Day In Prison For $1.6 Million COVID-19 Fraud Scheme

component: USAO - New York, Southern

body_text: Damian Williams, the United States Attorney for the Southern District of New York, announced today that ELIZIER SCHER was sentenced to one year and one day in prison by U.S. District Judge Philip M. Halpern for his scheme to defraud the U.S. Small Business Administration (“SBA”) of more than $1.6 million in COVID-19 relief funds. SCHER previously pled guilty before Judge Halpern to one count of wire fraud on February 1, 2023. U.S. Attorney Damian Williams said: “Elizier Scher schemed to steal taxpayer funds intended for small businesses in need of assistance during the pandemic. His intent to illegally profit from a national emergency that affected countless businesses and uprooted lives resulted in a sentencing reflecting the severity of his actions. Exploiting a crisis for personal gain will face the full force of the law.” According to documents filed in this case and statements made in court proceedings: The SBA is a federal agency that administers assistance to American small businesses, including the Economic Injury Disaster Loan (“EIDL”) program, which was intended to provide funding to help small business recover from the economic impacts of the COVID-19 pandemic. The maximum amount of an EIDL loan is determined by a formula based on the date the borrower began operating and the borrower’s gross revenue and cost of goods sold for the 12 months prior to January 31, 2020. The loans can only be used for working capital and other normal operating expenses. Over an approximately four-hour period on or about July 13, 2020, SCHER submitted 12 applications for EIDL loans in a principal amount of $150,000 to the SBA online on behalf of 12 different corporations that he owned and controlled. SCHER made materially false statements in each application with respect to each applicant’s gross revenue and cost of goods sold for the 12-month period prior to January 31, 2020. Between on or about July 20, 2020, and on or about August 11, 2020, 11 of the 12 applicants received a net total of $1,648,900 in loan proceeds from the SBA. SCHER used the proceeds to buy real estate and to pay credit card expenses instead of using it for working capital for the borrowers, as SCHER had agreed to do in the loan agreements he executed on behalf of the borrowers. * * * In addition to the prison term, SCHER, 34, of Spring Valley, New York, was sentenced to two years of supervised release and ordered to pay $1,648,900 in forfeiture. Mr. Williams praised the investigative work of the Federal Bureau of Investigation. This case is being handled by the Office’s White Plains Division. Assistant U.S. Attorney James McMahon is in charge of the prosecution.


title: Man Sentenced to More Than Five Years in Prison for Illegally Handling Hazardous Waste in Hawaii and Possessing a Stolen Firearm in Kansas

component: Energy and Natural Resources Division

body_text: Anthony Shane Gilstrap was sentenced today to 63 months in prison for violating the Resource Conservation and Recovery Act (RCRA) by illegally transporting hazardous waste in Hawaii, and to possessing a stolen firearm in Kansas. Gilstrap, who had pleaded guilty to the crimes in April, will also serve three years of supervised release during which time he will participate in treatment and programs for mental health, cognitive behavior and substance abuse. Photo of barrels containing hazardous waste. Image is from the sentencing memo of United States v. Anthony Gilstrap, Case no. 6:21-cr-10079. According to documents filed in court, Gilstrap violated the RCRA in Hawaii by contracting to remove 35 drums of the hazardous waste perchloroethylene (perc) from a dry-cleaning operation in Honolulu in January 2017. Gilstrap offered, at a steep discount, to take away the illegally stored, spent solvent. He did not use required safeguards like an RCRA hazardous waste manifest, which traces waste to its ultimate disposal site. Gilstrap moved the drums to a warehouse he controlled where it sat for months without a required permit. He forged a manifest after government officials asked about the drums, falsely saying he had shipped the drums to Oregon. The company that owned the dry-cleaning operation and its Hawaii regional manager have pleaded guilty and been sentenced. The drums of waste perc were ultimately disposed of properly. Law enforcement in Kansas later stopped Gilstrap for a traffic violation and found in his truck a handgun, which Gilstrap admitted was stolen. The cases of handgun and RCRA violations were consolidated for Gilstrap’s plea and sentencing. “Laws like the Resource Conservation and Recovery Act help protect people and our environment from hazardous waste exposure by requiring safe transportation and storage practices,” said Assistant Attorney General Todd Kim for the Justice Department’s Environment and Natural Resources Division. “We are glad that this unusual case was ultimately resolved without prolonged and serious harm.” “The illegal storage and transportation of hazardous waste poses very serious public health danger,” said Assistant Special Agent in Charge Benjamin Carr of the Environmental Protection Agency’s (EPA) criminal enforcement program in Hawaii. “Today’s sentencing demonstrates that EPA and our law enforcement partners are committed to protecting the American people from reckless criminal activity that jeopardizes human health and the environment.” U.S. District Judge Eric F. Melgren for the District of Kansas issued the sentence. EPA’s Criminal Investigation Division; the Sumner (Kansas) County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case Senior Counsel Krishna Dighe of the Justice Department’s Environmental Crimes Section, Assistant U.S. Attorney Oladotun O. Odeyemi for the District of Kansas and Assistant U.S. Attorney Gregg Paris Yates for the District of Hawaii prosecuted the case.


title: Jefferson Parish Man Sentenced for Possessing Unregistered Silencer

body_text: NEW ORLEANS, LOUISIANA – GEORGE PETERSON , age 60, a resident of Waggaman, Louisiana, was sentenced on January 9, 2024, by U.S. District Judge Jay C. Zainey to 24 months imprisonment followed by three years of supervised release, along with a $100 mandatory special assessment fee, after previously pleading guilty to possessing an unregistered firearm silencer, in violation of Title 26, United States Code, Sections 5841, 5861(d), and 5871. According to court documents, Special Agents with the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) executed a search warrant at PETERSON’s residence, which also served as the storefront location for his business, PDW Gun Solutions LLC, a federal firearms licensee. During the search, ATF agents discovered a firearm silencer inside a safe in PETERSON’s bedroom. ATF examination of the silencer revealed that ammunition had been fired through it. The silencer was not registered to PETERSON in the National Firearms Registration and Transfer Record, as required by federal statute. 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. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives. It is being prosecuted by Assistant United States Attorney David Berman of the Violent Crime Unit.


title: Honduran Drug Dealer Indicted And Detained Pending Trial For Possessing More Than A Kilogram Of Fentanyl On Multiple Dates In 2023

component: USAO - California, Northern

body_text: SAN FRANCISCO — A federal magistrate judge has ordered that Defendant Milton Joel Varela Arteaga—a Honduran national who resides in Oakland, California, and was recently indicted by a federal grand jury for possessing large quantities of fentanyl on three separate occasions in 2023—be detained pending trial on fentanyl trafficking charges, announced United States Attorney Ismail J. Ramsey; Homeland Security Investigations (HSI) Special Agent in Charge Tatum King; and Drug Enforcement Administration (DEA), San Francisco Field Division, Special Agent in Charge Brian M. Clark. Arteaga, 27, was originally charged via a criminal complaint in November 2023. Among other things, the complaint alleges that: • On May 11, 2023, law enforcement officers searched Arteaga’s Oakland residence and seized more than 1.3 kilograms of fentanyl and more than $70,000 in cash. In a post-arrest interview, Arteaga told officers that he regularly sold drugs in the Tenderloin neighborhood of San Francisco; • On June 28, 2023, law enforcement officers stopped Arteaga in a car as it left the Oakland Airport and seized more than two kilograms of fentanyl and more than $12,000 in cash; and • On November 29, 2023, federal and state law enforcement officers searched Arteaga’s Oakland residence and found more than half a kilogram of fentanyl in a black Mercedes that belonged to Arteaga and his partner and over $13,000 in cash in their bedroom. All of the fentanyl seizures described in the complaint occurred while Arteaga was on pretrial release for state narcotics charges filed against him in 2022. Arteaga has been in federal custody since his arrest in late November 2023, and he was ultimately indicted by a federal grand jury on December 13, 2023, on three counts of possession with intent to distribute fentanyl, in violation of 21 U.S.C. § 841(a)(1) and (b)(1)(B)(vi). A second defendant was indicted at the same time on similar charges. “Tackling the scourge of fentanyl is a top priority for my Office,” said U.S. Attorney Ramsey. “Our efforts to disrupt the fentanyl trade take many forms, from prosecuting the dealers who peddle this poison on the streets of the Tenderloin to identifying, arresting, and charging their suppliers. We and our law enforcement partners will hold accountable those who sell or facilitate the sale of this deadly drug at every level.” “The indictment and subsequent detainment of Mr. Arteaga underscore HSI’s commitment to work with law enforcement agencies to stop the scourge of fentanyl trafficking from further ravaging the Bay Area,” said HSI Special Agent in Charge King. “HSI appreciates the joint investigative work with the DEA, Alameda County Narcotics Task Force, the U.S. Attorney’s Office, and the DOJ OCDETF Program, which resulted in this action. As Mr. Arteaga’s case demonstrates, we will not rest while fentanyl poisons our communities and will pursue its purveyors at every turn to disrupt and ultimately dismantle their operations.” “Fentanyl is now the leading cause of death for Americans between the ages of 18 to 45 and is the greatest drug threat facing our nation,” said DEA Special Agent in Charge Clark. “DEA’s relentless enforcement efforts in the Tenderloin will continue in pursuit of those who distribute this deadly drug in our community.” Arteaga was ordered detained by United States Magistrate Judge Peter H. Kang on January 12, 2024. His next scheduled appearance is a status conference before Senior United States District Judge Charles R. Breyer on January 31, 2024. An indictment and a complaint merely allege that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, Arteaga faces a minimum prison sentence of five years and a maximum prison sentence of 40 years on each of the three counts on which he is indicted. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553. 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. Assistant U.S. Attorneys Daniel Pastor and Kevin Yeh are prosecuting this case with assistance from Paralegal Specialist Tina Rosenbaum. The prosecution is the result of a federal and state partnership between HSI, DEA, and the Alameda County Narcotics Task Force (ACNTF) to target the distribution of the deadly opioid fentanyl.


title: Paso Robles Woman Charged with Drug-Related Crimes, Including Distributing Fentanyl that Resulted in Victim’s Death Last Year

component: USAO - California, Central

body_text: LOS ANGELES – A San Luis Obispo County woman was arraigned today on a federal grand jury indictment alleging, among other crimes, that she knowingly distributed fentanyl, the use of which resulted in a victim’s fatal overdose in May 2023. Jessica Leigh Alalia, 30, a.k.a. “Jessica Mitchell,” of Paso Robles, was arrested on Tuesday and was arraigned this afternoon at United States District Court in downtown Los Angeles on an eight-count indictment. Also arraigned today in federal court was her boyfriend, Damian Naudh Lagunas-Garcia, 37, of Paso Robles, who was arrested on Sunday. Alalia and Lagunas-Garcia pleaded not guilty to all charges and a March 12 trial was scheduled in this case. Both defendants are in federal custody and each of them has a detention hearing scheduled for January 22. Alalia is charged with one count of distribution of fentanyl resulting in death. Both defendants are charged with one count of conspiracy to distribute methamphetamine and fentanyl, one count of knowingly maintaining a drug-involved premises, two counts of possession with intent to distribute methamphetamine, two counts of possession with intent to distribute fentanyl, and one count of possession of firearms in furtherance of drug trafficking crimes. According to an indictment returned on January 11, Alalia knowingly and intentionally distributed fentanyl on May 6, 2023, the use of which resulted in the death of the victim, identified in court documents as “R.S.” The indictment further alleges that from January 2023 to August 2023, Alalia and Lagunas-Garcia conspired with each other to distribute methamphetamine and fentanyl. The defendants allegedly used their Paso Robles house to store, pack, and facilitate the distribution of narcotics. They coordinated with each other by using coded language in text messages – using the letter “F” for fentanyl, for example – to discuss their trafficking and sales of fentanyl and methamphetamine to drug customers, according to the indictment. Alalia and Lagunas-Garcia allegedly also used a storage unit in Templeton to store, pack and distribute the narcotics, and possessed multiple firearms inside their home to protect their drug proceeds and narcotics. An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court. If convicted of all charges, Alalia and Lagunas-Garcia each would face a statutory maximum sentence of life in federal prison. Alalia also would face a mandatory minimum sentence of 20 years in federal prison for the count of distribution of fentanyl resulting in death. Lagunas-Garcia would face a mandatory minimum of 10 years in federal prison for the drug conspiracy and possession with intent to distribute methamphetamine counts. The Drug Enforcement Administration’s Overdose Justice Task Force and the San Luis Obispo County Sheriff’s Office investigated this matter. The Overdose Justice Task Force is a project designed to investigate fatal fentanyl poisonings and identify the individuals who provided the fentanyl that directly caused the deaths. Under the Overdose Justice program for the DEA’s Los Angeles Field Division, DEA agents have established collaborative relationships with local law enforcement agencies across the seven counties that make up the Central District of California. Local authorities are almost always the first to respond to an overdose death, and DEA agents have provided training to dozens of local agencies to help them analyze evidence to determine if there are circumstances that might lead to a federal criminal prosecution. Assistant United States Attorneys Daniel H. Weiner and Alexandra Michael, both of the General Crimes Section, are prosecuting this case.


title: Activity in the U.S. Attorney's Office

component: USAO - Wyoming

body_text: Firearms Offenses Warren Larose , age 40, of Riverton, Wyoming, was sentenced to two years of supervised probation for being a felon in possession of a firearm. U.S. District Court Judge Alan B. Johnson imposed the sentence on Dec. 20, 2023, in Cheyenne. According to court documents, on Mar. 12, 2023, Larose pointed a gun at an adult and a minor. The victims were in a vehicle outside of their residence and provided video evidence to the Riverton Police Department. Larose is a previously convicted felon. This crime was investigated by the FBI and Wyoming Division of Criminal Investigation. The case was prosecuted by Assistant U.S. Attorney Michael J. Elmore. Hedoduyehpua “Hedo” Thayer , age 44, of Fort Washakie, Wyoming, was sentenced to 60 months’ imprisonment for being a felon in possession of firearms. U.S. District Court Judge Alan B. Johnson imposed the sentence on Dec. 21, 2023, in Cheyenne. According to court documents, on Aug. 11, 2022, during execution of a search warrant on Thayer’s residence, agents observed multiple firearms in plain view. Thayer is prohibited from possessing a firearm because he is a previously convicted felon. This crime was investigated by the Wyoming Division of Criminal Investigation and prosecuted by Assistant U.S. Attorney Michael J. Elmore. Lorenzo Roman , age 30, of Riverton, Wyoming, was sentenced to 36 months in prison for being a felon in possession of a firearm. U.S. District Court Judge Alan B. Johnson imposed the sentence on Jan. 11. According to court documents, on Apr. 20, 2023, the Bureau of Indian Affairs (BIA) police were dispatched to a truck parked in the roadway with a male sleeping in the driver's seat. BIA agents attempted to wake Roman, who became non-compliant. Roman was combative and was subsequently arrested. In the truck, within reach of Roman, BIA located a loaded Ruger .380 pistol with an obliterated serial number. The case was investigated by the BIA and FBI and prosecuted by Assistant U.S. Attorney Michael J. Elmore. Jason Myhre , age 40, of Casper, Wyoming, was sentenced to 72 months’ imprisonment for being a felon in possession of a firearm. Chief U.S. District Court Judge Scott W. Skavdahl imposed the sentence on Jan. 2. According to court documents, on Sep. 26, 2022, Myhre was stopped after eluding police. A firearm were recovered from the vehicle. Myhre, who is a previously convicted felon prohibited from possessing firearms, admitted to knowing the firearm was in the vehicle and handling it. This crime was investigated by the FBI, Wyoming Division of Criminal Investigation, Fremont County Sheriff’s Office, and the Riverton Police Department. The case was prosecuted by Assistant U.S. Attorney Timothy W. Gist. Charles Wheeler , age 54, of Bend, Oregon, was sentenced to 12 months and one day in prison for being a felon in possession of firearms. U.S. District Court Judge Alan B. Johnson imposed the sentence on Jan. 9. According to court documents, on Feb. 28, 2023, Sublette County Sheriff's Office (SCSO) located a firearm on the driver's seat of a vehicle where Wheeler was sitting. Wheeler has extensive criminal history and is a convicted felon prohibited from possessing firearms. This crime was investigated by the FBI and SCSO. The case was prosecuted by Assistant U.S. Attorney Christyne M. Martens. Drug Trafficking Matthew Lucas Armijo a/k/a Matcalf Chapo, age 40, of Casper, Wyoming, was sentenced to 151 months in prison for possession with intent to distribute methamphetamine and fentanyl. U.S. District Court Judge Alan B. Johnson imposed the sentence on Dec. 20, 2023. According to court documents, a months-long investigation into Armijo and his girlfriend Christina Carmona for drug trafficking came to an end when a traffic stop resulted in the seizure of 344 grams of fentanyl and 436 grams of methamphetamine. This crime was investigated by the Wyoming Division of Criminal Investigation and prosecuted by Assistant U.S. Attorney Timothy J. Forwood. Christina Marie Carmona, age 39, of Bar Nunn, Wyoming, was sentenced to 130 months in prison for possession with intent to distribute methamphetamine and fentanyl. U.S. District Court Judge Alan B. Johnson imposed the sentence on Jan. 8. According to court documents, a monthslong investigation into Matthew Armijo and Carmona for drug trafficking came to an end when a traffic stop resulted in the seizure of 344 grams of fentanyl and 436 grams of methamphetamine. This crime was investigated by the Wyoming Division of Criminal Investigation and prosecuted by Assistant U.S. Attorney Timothy J. Forwood. Daniel Ellis, age 41, of Cheyenne, Wyoming, was sentenced to 63 months in prison for possession with intent to distribute fentanyl. U.S. District Court Judge Alan B. Johnson imposed the sentence on Jan. 4. This crime was investigated by the Drug Enforcement Administration and prosecuted by Assistant U.S. Attorney Timothy J. Forwood. Drug & Firearm Offenses Shawn Hoffman , age 47, of Casper, Wyoming, was sentenced to 21 months’ imprisonment for being a felon and unlawful user of a controlled substance in possession of a firearm. U.S. District Court Judge Alan B. Johnson imposed the sentence on Jan. 4. According to court documents, on Oct. 27, 2022, Casper Police officers conducted a traffic stop on the defendant. Hoffman admitted there was a firearm on his person and that he was a convicted felon. This crime was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Casper Police Department. The case was prosecuted by Assistant U.S. Attorney Jonathan C. Coppom. Joshua Keele , age 38, of Riverton, Wyoming, was sentenced to 90 months’ imprisonment for being a felon in possession of a firearm and conspiracy to distribute methamphetamine and fentanyl. U.S. District Court Judge Alan B. Johnson imposed the sentence on Dec. 21, 2023 in Cheyenne. According to court documents, on Apr. 27, 2023, agents executed a search warrant at the defendant’s residence and recovered fentanyl, methamphetamine, marijuana, cocaine, and a firearm. Keele is a previously convicted felon. This crime was investigated by the Wyoming Division of Criminal Investigation and prosecuted by Assistant U.S. Attorney Timothy W. Gist. Jacquel Starnes , age 40, of Riverton, Wyoming, was sentenced to 63 months’ imprisonment for possession with intent to distribute methamphetamine and being an unlawful user and person previously convicted of a misdemeanor domestic violence offense in possession of a firearm. Chief U.S. District Court Judge Scott W. Skavdahl imposed the sentence on Jan. 3. According to court documents, a search warrant was executed at Starnes’ residence. Approximately 380 grams of methamphetamine, 166 grams of MDMA and multiple firearms were recovered. The defendant admitted to selling methamphetamine in a subsequent interview and admitted the “sawed off shotgun” was his. This crime was investigated by the Wyoming Division of Criminal Investigation. The case was prosecuted by Assistant U.S. Attorney Timothy W. Gist. Jesse Walthers , age 40, of Gillette, Wyoming, was sentenced to 21 months’ imprisonment for possession with intent to distribute methamphetamine and possession of a firearm in furtherance of a drug trafficking crime. Chief U.S. District Court Judge Alan B. Johnson imposed the sentence on Jan. 12 in Cheyenne. According to court documents, on Jun. 30, 2023, Wyoming Highway Patrol conducted a traffic stop on the defendant. Knowing he was a previously convicted felon, officers observed narcotics, firearms and ammunition in the vehicle. This crime was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Wyoming Highway Patrol, Wyoming Division of Criminal Investigation and Campbell County Sheriff’s Office. The case was prosecuted by Assistant U.S. Attorney Jonathan C. Coppom. Sex Offenses Bryon Good Voice Elk , age 35, of Riverton, Wyoming, was sentenced to 18 months in prison for failing to register as a sex offender. U.S. District Court Judge Alan B. Johnson imposed the sentence on Dec. 18, 2023. The defendant was required by a court order to register with the Wind River Sex Offender Registration & Notification Act office personnel as well as Wyoming Department of Criminal Investigation, but failed to do so. The case was prosecuted by Assistant U.S. Attorney Timothy W. Gist. Motor Vehicle Theft Steffan Kytonen, age 36, of Minnesota, was sentenced to 46 months’ imprisonment for theft of property. U.S. District Court Judge Alan B. Johnson imposed the sentence on Jan. 9. According to court documents, the defendant stole a 2000 Chevy Silverado from a parking lot near the Old Faithful Lodge in Yellowstone National Park. Rangers found him approximately 57 miles away in Grand Teton National Park. The crime was investigated by the National Park Service and the case was prosecuted by Assistant U.S. Attorney Nicole M. Romine. Illegal Re-entry of a Previously Deported Alien Lino M. Quintanna-Morales, age 37, of Mexico, was sentenced to eight months in federal prison for illegal re-entry of a previously deported alien into the United States. The defendant will be deported to Mexico upon his release. According to court documents, the defendant was arrested for driving under the influence of alcohol in Laramie County, Wyoming. He admitted to being a citizen of Mexico and the U.S. Immigration and Customs Enforcement verified that he had been previously deported four separate times. The case was prosecuted by Assistant U.S. Attorney Michael J. Elmore. Chief U.S. District Court Judge Scott W. Skavdahl imposed the sentence on Jan. 3. Luis EdgardoGomez-Barahona, age 37 of Honduras, was sentenced to time served for illegal re-entry of a previously deported alien into the United States. The defendant will be deported within 10 days to Honduras. According to court documents, the defendant was arrested for driving under the influence of alcohol in Converse County, Wyoming. The U.S. Immigration and Customs Enforcement verified that he had been previously detained and deported. The case was prosecuted by Assistant U.S. Attorney Cameron Cook. U.S. District Court Judge Alan B. Johnson imposed the sentence on Jan. 12. About the United States Attorney’s Office The United States Attorney’s Office is responsible for representing the federal government in virtually all litigation involving the United States in the District of Wyoming, including all criminal prosecutions for violations of federal law, civil lawsuits brought by or against the government, and actions to collect judgments and restitution on behalf of victims and taxpayers. The Office is involved in several programs designed to make our communities safer. They include: Environmental Justice The fair treatment and meaningful involvement of all people regardless of race, color, national origin, or income with respect to the development, implementation, and enforcement of environmental laws, regulations, and policies. Project Safe Childhood Project Safe Childhood (PSC) is a DOJ initiative that combats the proliferation of technology-facilitated sexual exploitation crimes against children. The threat of sexual predators soliciting children for sexual contact is well-known and serious. Project Safe Neighborhoods Project Safe Neighborhoods (PSN) is a nationwide commitment to reducing gun and gang crime in America by networking existing local programs that target gun crime and providing these programs with additional tools necessary to be successful. Victim Witness Assistance The Victim Witness Coordinator for the United States Attorney’s Office for the District of Wyoming is dedicated to making sure that victims of federal crimes and their family members are treated with compassion, fairness, and respect. To report a federal crime, go to: https://www.justice.gov/actioncenter/report-crime#trafficking


title: Schenectady Man Sentenced to 30 Years in Federal Prison for Sexual Exploitation of a Child

component: USAO - New York, Northern

body_text: ALBANY, NEW YORK – Terence Wilson, age 40, of Schenectady, New York, was sentenced today to 360 months (30 years) in federal prison for his repeated sexual exploitation of a child. United States Attorney Carla B. Freedman and Craig L. Tremaroli, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), made the announcement. As part of his prior guilty plea, Wilson admitted that he sexually exploited a child from the time the child was approximately 8 years old until the child was approximately 15 years old and that he created approximately 50 videos depicting the abuse. Chief United States District Judge Brenda K. Sannes, also sentenced Wilson to serve a life term of supervised release to begin after Wilson is released from prison. Wilson also will be required to register as a sex offender upon his release from prison. This case was investigated by the FBI and its Child Exploitation Task Force, which includes members of federal, state and local law enforcement agencies, including the New York State Police. Assistant United States Attorneys Michael D. Gadarian and Adrian LaRochelle prosecuted this case as part of Project Safe Childhood. Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorney’s offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc .


title: Otsego County Man Pleads Guilty to Sexual Exploitation of a Child

body_text: SYRACUSE, NEW YORK – Charles Bodie, age 49, of Otsego County, New York, pled guilty yesterday to sexual exploitation of a child. United States Attorney Carla B. Freedman and Matthew Scarpino, Special Agent in Charge of Homeland Security Investigations (HSI), Buffalo Field Office, made the announcement. Bodie admitted during his change of plea hearing yesterday that, from December 2021 through October 2022, he exchanged sexually explicit text messages with the victim, during which he persuaded and enticed her to produce and send him sexually explicit pictures of herself. Bodie admitted further to engaging in sexual intercourse with the same victim when the victim was approximately 13-15 years old. The offense to which Bodie pled guilty carries a mandatory minimum sentence of 15 years, with a maximum of 30 years imprisonment. If Chief United States District Judge Brenda K. Sannes accepts the parties’ agreed-upon disposition at sentencing on May 15, 2024, Bodie will receive an imprisonment term of between 210 to 262 months. Bodie’s sentence must also include a post-imprisonment term of supervised release of between five years and life, a fine of up to $250,000, restitution to the victim, and he will be required to register as a sex offender upon his release from prison. A defendant’s sentence is imposed by a judge based on the statute the defendant violated, the United States Sentencing Guidelines, and other factors. This case was investigated by HSI, the Otsego County Sherriff’s Office, and the Delaware County Sherriff’s Office. Assistant United States Attorney Michael D. Gadarian is prosecuting the case as part of Project Safe Childhood. Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorney’s offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), and is designed to marshal federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc .


title: Yonkers Man Sentenced to 12 Months for Unemployment Insurance Fraud

body_text: ALBANY, NEW YORK – Errol Murray, age 22, of Yonkers, New York was sentenced today to 12 months in prison for engaging in a fraudulent scheme to obtain nearly $70,000 in unemployment insurance benefits, including benefits funded by the federal government in response to the COVID-19 pandemic. The announcement was made by United States Attorney Carla B. Freedman; Matthew Scarpino, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI); Jonathan Mellone, Special Agent in Charge, Northeast Region, United States Department of Labor, Office of Inspector General (USDOL-OIG); Ketty Larco-Ward, Inspector in Charge of the Boston Division of the United States Postal Inspection Service (USPIS); and New York State Inspector General Lucy Lang. As part of his previously entered guilty plea , Murray admitted that he provided Jamie Johnson with his personally identifiable information (PII) and the PII of another person, which Johnson used to file false claims online with the New York State Department of Labor (NYSDOL). Murray further admitted that as a result of the two fraudulent applications submitted by Johnson, the NYSDOL paid out $69,954 in unemployment insurance benefits. Johnson previously pled guilty to fraudulently obtaining $701,441 in unemployment insurance benefits as part of the scheme. Murray’s co-defendants, Taliek Lanier , age 23, of Albany, and Thomas Brace , a/k/a “Justice,” age 62, of Altoona, Pennsylvania, previously pled guilty to charges stemming from their roles in the scheme with Johnson. Lanier was sentenced to 12 months in prison to be followed by a 3-year term of supervised release, while Brace was sentenced to time served and 3 years of supervised release. Senior United States District Judge Lawrence E. Kahn also imposed a 3-year term of supervised release, to begin after Murray is released from prison, and ordered him to pay $69,954 in restitution to the State of New York. This case was investigated by HSI, USDOL-OIG, USPIS, and the New York State Inspector General’s Office, with assistance from the NYSDOL Office of Special Investigations, the Capital Region Crime Analysis Center, and the Albany County Department of Social Services. Assistant U.S. Attorneys Joshua R. Rosenthal and Joseph S. Hartunian prosecuted the case. On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus . Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form .


title: Vermont Man Sentenced to 70 Months for Traveling to Lake George for Sexual Contact with Minor

body_text: ALBANY, NEW YORK – Scott Westervelt, age 46, of Bennington, Vermont, was sentenced today to 70 months in prison for traveling from Vermont to Lake George in 2022 to engage in sexual conduct with a 12-year-old. United States Attorney Carla B. Freedman and Craig L. Tremaroli, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), made the announcement. As part of his prior guilty plea, Westervelt admitted that between January and June 2022, he exchanged sexually explicit messages online with someone posing as a man who was sexually abusing a 12-year-old boy. Over the course of those exchanges, Westervelt expressed his desire to engage in illicit sexual conduct with the 12-year-old, and ultimately Westervelt arranged to meet the man and the boy in Lake George for that purpose. On June 14, 2022, Westervelt left his residence in Bennington and drove to a prearranged meet-up location in Lake George, where he was arrested. Chief United States District Judge Brenda K. Sannes also sentenced Westervelt to serve 10 years of supervised release to begin after Westervelt is released from prison. He was also ordered to forfeit the phone he used to commit the crime. Westervelt will also be required to register as a sex offender upon his release from prison. The FBI and its Child Exploitation Task Force investigated the case. The FBI’s Child Exploitation Task Force includes members of federal, state, and local law enforcement agencies, including the Colonie Police Department and New York State Police. Assistant United States Attorney Benjamin S. Clark prosecuted the case as part of Project Safe Childhood. Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorney’s offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc .


title: Former Oahu Schoolteacher Sentenced to 17.5 Years in Prison for Producing Child Pornography

component: USAO - Hawaii

body_text: HONOLULU –Senior United States District Judge Susan O. Mollway sentenced Alden Bunag, 35, of Honolulu, yesterday to 210 months in prison and 15 years of supervised release for production of child pornography. Bunag will also be required to register as a sex offender and pay identified victims $30,000 in restitution. Bunag has been detained in custody since he was arrested in June 2022 at an Oahu high school where he was working as a summer schoolteacher. Bunag pleaded guilty to the child pornography production offense on May 19, 2023. According to information produced to the court, from around 2017 through 2018, when Bunag was working as a middle school teacher on Oahu, he engaged in repeated sexual activity with a 13-year-old student. Bunag recorded the sexual activity on multiple occasions, which took place in his middle school classroom. He later sent the video(s) to others, including a teacher in Pennsylvania, who was also prosecuted for child exploitation offenses. In addition to the videos Bunag recorded of his former student, he also possessed thousands of images of child pornography, to which he had access to from his phone on the date of his arrest. The videos included young male children being sexually assaulted while bound and in pain. Bunag distributed several of these videos to the Pennsylvania teacher and others. “Bunag’s sentence reflects the horrendous nature of the crimes he committed, including against a child for whom the classroom became a place of torture rather than learning and nurturing,” said United States Attorney Clare E. Connors. “Child abusers cause incredible harm to the most vulnerable members of our community, and we will continue to hold them accountable under the law.” “This sentence shows that the FBI will target those individuals who prey on our most vulnerable members of our community and do whatever it takes to protect our keiki,” said FBI Special Agent in Charge Steven Merrill. “We will hold them accountable for their heinous actions especially when they were entrusted by students and parents alike to serve as role models and not a sexual predator going after young boys.” This investigation was conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Rebecca Perlmutter handled the prosecution.


title: South Georgia Resident Sentenced for Distributing Meth in Lanier County

body_text: MACON, Ga. – A Clinch County, Georgia, resident found guilty of distributing nearly a kilogram of methamphetamine in Lanier County, Georgia, was sentenced to serve 15 years in prison today for his crime. Dennis Thompson, 34, of Homerville, Georgia, was sentenced to serve 180 months in prison to be followed by five years of supervised release by U.S. District Judge Hugh Lawson today after he was convicted by a federal jury on July 18, 2023, of one count of possession with intent to distribute methamphetamine. Thompson is not eligible for parole. “A lengthy investigation led by the Lanier County Sheriff’s Office landed a high-volume drug dealer behind bars and stopped a large amount of methamphetamine from hitting the streets,” said U.S. Attorney Peter D. Leary. “Our office appreciates the steadfast commitment from local, state and federal authorities to uphold the law and make our communities safer for everyone.” “Thompson endangered himself, law enforcement and other motorists during his irresponsible attempt to evade justice for methamphetamine distribution,” said Rich Bilson, Supervisory Senior Resident Agent of FBI Atlanta’s Valdosta office. “Hopefully this case sends a clear message that drug dealing in our communities will not be tolerated by the FBI and our partners.” “We are appreciative of the cooperative efforts from all our partners to help bring this case to a close,” said Lanier County Sheriff Charles “Nick” Norton. “It is this kind of cooperation that makes our streets a safer place.” According to court documents and evidence presented at trial, Thompson was under surveillance for distributing methamphetamine by Lanier County Sheriff’s Office investigators in Aug. 2020. A confidential informant told investigators that Thompson would be carrying a large amount of illegal drugs into Lanier County on Aug. 30, 2020, and he would be driving on Highway 221. Deputies attempted to pull Thompson over on Highway 221, but Thompson fled, leading deputies on a high-speed chase in excess of 100 miles per hour for several miles. The pursuit continued into Atkinson County, Georgia, where the vehicle finally came to a stop. A drug dog alerted to the odor of drugs inside Thompson’s car. Officers found 976 grams of methamphetamine inside a bag in the car. Thompson acquired the methamphetamine in Atlanta to distribute in the Lanier County community. The case was investigated by FBI and the Lanier County Sheriff’s Office. Assistant U.S. Attorney Sonja Profit prosecuted the case for the Government.


title: Justice Department Secures Agreement with Patriot Bank to Resolve Lending Discrimination Claims

component: USAO - Tennessee, Western

body_text: WASHINGTON – The Justice Department announced today that Patriot Bank (Patriot) has agreed to pay $1.9 million to resolve allegations that the bank engaged in a pattern or practice of lending discrimination by redlining majority-Black and Hispanic neighborhoods in Memphis, Tennessee. Redlining is an illegal practice in which lenders avoid providing credit services to individuals living in, or seeking to live in, communities of color because of the race, color or national origin of the residents in those communities. “This settlement embodies Dr. Martin Luther King Jr.’s commitment to promoting economic justice and ensuring that Black Americans and all communities of color are able to achieve the American dream, and equally access credit to purchase a home.,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department is dedicated to stamping out discriminatory lending practices across this country and we are vigorously committed to holding lenders accountable, no matter their size. This settlement will provide many Memphis families with access to credit that will improve the quality of their lives while opening up opportunities to build intergenerational wealth.” “For too long, practices like redlining and discriminatory lending have been used to undermine the promises of our economic system,” said U.S. Attorney Kevin G. Ritz for the Western District of Tennessee. “Our office is committed to enforcing fair lending laws and ensuring that banks and lenders are providing communities of color equal access to credit and lending opportunities. This agreement with Patriot Bank signifies an important step toward preserving economic justice and for communities of color in Memphis as they buy homes, start businesses, and take part in the American Dream.” The department’s complaint alleges, from 2015 through at least 2020, Patriot avoided providing mortgage services to majority-Black and Hispanic neighborhoods in Memphis and discouraged people seeking credit in those communities from obtaining home loans. Patriot’s home mortgage lending was focused disproportionately on white areas around the City of Memphis. Over the same six-year period, other banks received nearly 3.5 times as many loan applications compared to Patriot in majority-Black and Hispanic neighborhoods in Memphis. Even when Patriot generated loan applications from majority-Black and Hispanic areas, the applicants themselves were disproportionately white. Under the proposed consent order, which is subject to court approval, Patriot will invest $1.9 million to increase credit opportunities for communities of color in Memphis. Specifically, Patriot will: Invest at least $1.3 million in a loan subsidy fund to increase access to home mortgage, home improvement, and home refinance for residents of majority-Black and Hispanic neighborhoods; Spend $375,000 for advertising, outreach, consumer financial education and credit counseling focused on majority-Black and Hispanic neighborhoods; Spend $225,000 on community partnerships to provide services that increase residential mortgage credit access for residents of those neighborhoods; Ensure at least two mortgage loan officers are dedicated to serving majority-Black and Hispanic neighborhoods in the Bank’s service area; Employ a Director of Community Lending who will oversee the continued development of lending in communities of color; and Continuously assess the communities’ credit needs throughout the term of the consent order. The department opened its investigation into Patriot’s lending practices after receiving a referral from the bank’s regulator, the Board of Governors of the Federal Reserve System. Patriot cooperated with the department’s investigation and worked with the department to resolve the redlining allegations. In October 2021, Attorney General Merrick B. Garland and Assistant Attorney General Clarke launched the Justice Department’s Combating Redlining Initiative , a coordinated enforcement effort to address this persistent form of discrimination against communities of color. Since 2021, the department has announced 11 redlining cases and secured over $109 million in relief for communities of color that have been the victims of lending discrimination across the country. Additional information about the department’s fair lending enforcement can be found at www.justice.gov/crt/fair-lending-program-0 . Individuals may report lending discrimination by calling the Justice Department’s housing discrimination tip line at 1-833-591-0291, or submitting a report online . View the complaint here. View the consent order here.


title: Two-Time Convicted Felon Found Guilty of Unlawfully Possessing a Sawed-Off Shotgun

component: USAO - Iowa, Northern

body_text: A twice convicted felon who unlawfully possessed a sawed-off shotgun was convicted by a jury today, after a two-day trial in federal court in Cedar Rapids. Larry Jones, age 62, from Waterloo, Iowa, was convicted of one count of being a felon in possession of a firearm and one count of possessing a shortened shotgun. The verdict was returned this afternoon following about one hour of jury deliberations. The evidence at trial showed that on September 7, 2022, Jones was involved in a dispute with another individual. During the dispute, Jones went into his house and emerged with a sawed-off shotgun. The other individual took a video on his cellphone of Jones with the firearm. Officers from the Waterloo Police Department were eventually dispatched to the scene and learned of the gun. They eventually found the firearm behind Jones’ property after he told an officer that he wrapped the shotgun in a tarp and threw it behind his house. The weapon had a barrel length of approximately 13 inches. Any weapon with a barrel length of 18 inches is illegal to possess unless it is registered with the Bureau of Alcohol, Tobacco, and Firearms. Jones had also previously been convicted of felony burglary twice. Sentencing before United States District Court Judge C.J. Williams will be set after a presentence report is prepared. Jones was taken into custody by the United States Marshal after the verdict was returned and will remain in custody pending sentencing. Jones faces a possible maximum sentence of 25 years’ imprisonment, a $500,000 fine, and six years of supervised release following any imprisonment. The case is being prosecuted by Assistant United States Attorneys Nicole Nagin and Anthony Morfitt and was investigated by a Federal Task Force composed of the Waterloo Police Department, Federal Bureau of Investigation, and Bureau of Alcohol Tobacco and Firearms assisted by the Black Hawk County Sheriff’s Office and Cedar Falls Police Department. 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. Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl . The case file number is 23-CR-2015. Follow us on Twitter @USAO_NDIA.


title: Nevada Man Sentenced for Embezzlement Scheme

component: USAO - Nebraska

body_text: Acting United States Attorney Susan Lehr announced that Johnny Bradford, age 52, of Las Vegas, Nevada, was sentenced on January 17, 2024, in federal court in Omaha, Nebraska, for wire fraud. United States District Court Judge Brian C. Buescher sentenced Bradford to time served. Bradford will immediately begin a 3-year term of supervised release as a condition of his release, Bradford will serve a 6-month term of house arrest. Bradford was also ordered to pay $112,257.80 in restitution. Roadrunner Temperature Controlled is the refrigerated trucking division of Roadrunner Transportation Systems and it is located in Sarpy County, Nebraska. Roadrunner Temperature Controlled (“Roadrunner”) uses Electronic Funds Source (“EFS”), an electronic wire transfer service, for their driver cash advances. Amy Shepherd was employed by Roadrunner from July 25, 2016, through June 21, 2019. During her employment at Roadrunner, Shepherd, was a Customer Service Manager, Driver Business Leader Manager, and, most recently, a Dispatch Lead Manager. Shepherd was a Dispatch Lead Manager from October 13, 2018, to June 21, 2019. Shepherd worked remotely from her home in Kansas. Johnny Bradford II was a driver employed by Roadrunner from February 28, 2017, until May 4, 2018. From February 1, 2018, through June 21, 2019, Shepherd, used her position with Roadrunner as a Dispatch Lead Manager to fraudulently generate advances and enter EFS check codes into Roadrunner’s accounting system. Shepherd characterized the advances as relating to legitimate business purposes, for example repairs, washouts, or trailer unloading. Shepherd entered the advances for current Roadrunner drivers. After generating the check code, Shepherd sent the check code to Bradford. Bradford filled out the EFS checks with the check code he received from Shepherd. Bradford then cashed the checks at vendor establishments. After Bradford received the funds, he would use Western Union to send portions of the money he received from the fraudulent driver advances back to Shepherd. One such wire occurred on June 9, 2019, when a check in the amount of $826.64 was initiated by Shepherd, in Kansas purportedly being for “TRL16452 Alternator” through Roadrunner’s accounting system in Nebraska, to Bradford in Nevada. As a result of the scheme and artifice to defraud, from February 1, 2018, through June 21, 2019, Shepherd and Bradford caused an actual loss of $112,257.80. On November 30, 2023, codefendant Shepherd was sentenced to 18 months imprisonment for her role in this crime. This case was investigated by the United States Secret Service and the Sarpy County Sheriff’s Office.


title: Omaha Man Sentenced for Traveling to Have Sex with a Minor and Possession of Child Pornography

body_text: Acting United States Attorney Susan Lehr announced that Christopher Carreras, 38, of Omaha, Nebraska, was sentenced on January 17, 2024, in federal court in Omaha for traveling with the intent to engage in sexual activity with a minor and possession of child pornography. United States District Judge Brian C. Buescher sentenced Carreras to 168 months’ imprisonment for each count. The sentences will run concurrently. There is no parole in the federal system. After Carreras’s release from prison, he will begin a 5-year term of supervised release. District Judge Buescher ordered Carreras to pay $3,000 in restitution. Carreras began online chatting with the minor victim who was based in Texas. On February 26, 2022, Carreras traveled from Nebraska to Texas to meet up with the minor victim. After meeting face-to-face in a shopping mall, Carreras handed the minor victim his hotel room key. The minor victim used the key to enter his hotel room where the two engaged in sexual activity. Carreras traveled to meet up with the minor victim on other occasions in 2022. The minor victim ultimately reported what happened. The FBI obtained and executed a search warrant for Carreras’s residence in Nebraska on October 6, 2022, where electronic devices were seized. Law enforcement review of the devices revealed records of online chat messages between Carreras, the minor victim, and at least one other apparent minor female. Through the chats, the minor victim communicated that they were about to turn 16 years old. Additionally, the review of the devices located known child pornography video files and images. This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov. This case was investigated by the Omaha FBI's Child Exploitation and Human Trafficking Task Force.


title: Former Omaha Councilman and Former Omaha Police Officer Sentenced for Fraud Conspiracy

body_text: Acting United States Attorney Susan Lehr announced that Vincent J. Palermo, 50, of Omaha, Nebraska, and Richard Gonzalez, 55, of Papillion, Nebraska, were sentenced on January 16, 2024, in federal court in Lincoln, Nebraska, for conspiracy to commit honest services fraud. Senior United States District Judge John M. Gerrard sentenced Palermo to 18 months’ imprisonment and Gonzalez to 18 months’ imprisonment. Additionally, Palermo was sentenced to a consecutive 9-month term of imprisonment for a violation of supervised release. There is no parole in the federal system. After Palermo’s release from prison, he will begin a 2-year term of supervised release. After Gonzalez’s release from prison, he will begin a 3-year term of supervised release. Senior Judge Gerrard ordered Palermo to pay $10,292.28 in restitution and Gonzalez $66,749.35 in restitution. From January 2018 to April 1, 2023, Palermo, while an Omaha City Councilman, received personal and financial benefits to include airfare, luxury hotel accommodations, travel arrangements, and other items of value in exchange for official actions. These benefits were intended to influence Vincet Palermo’s actions as an Omaha City Councilman to benefit the Police Athletics for Community Engagement (PACE) and the Latino Peace Officers Association (LPOA). During this time, co-defendant Gonzalez was the Executive Director of PACE and a member of LPOA. Palermo failed to disclose to the City Counsel the private benefits that he was receiving while taking official acts for the benefit of LPOA and PACE. From 2017 to April 1, 2023, Gonzalez conspired to defraud donors of the LPOA, the LPOA Board, and PACE for his own personal benefit. Gonzalez, a retired Omaha Police Department Captain, without having full LPOA Board authority, conducted financial transactions for his personal benefit using LPOA funds. LPOA funds were misused by Gonzalez for trips, meals, and gambling. Gonzalez also misused LPOA funds to purchase trips for friends and co-defendant Palermo, which included a trip to Las Vegas. After Tuesday’s sentencings, FBI Omaha Special Agent in Charge Eugene Kowel said, “Both former city councilman Vinny Palermo and former police officer Richard Gonzalez were entrusted to represent our communities' interest, but instead chose to betray that trust through their abuse of public office for personal gain. The FBI is committed to working with our law enforcement partners to aggressively investigate, pursue, and hold accountable those who violate their oath of office to enrich themselves. Public corruption is a top criminal investigative priority for the FBI, and we encourage everyone in our community to continue to come forward and report abuses of public office.” Co-defendant Johnny Palermo’s change of plea hearing is scheduled for January 18, 2024, in Lincoln. Co-defendant Jack Olson’s trial is scheduled for April 10, 2024, before Senior Judge Gerrard in Lincoln. Each defendant is presumed innocent unless and until proven guilty. This case was investigated by the Federal Bureau of Investigation.


title: Lincoln Man Sentenced to 16 Months for Possession of Ammunition

body_text: Acting United States Attorney Susan Lehr announced that Tevin T. Randolph, 23, of Lincoln, Nebraska, was sentenced on January 17, 2024, in federal court in Lincoln for being a felon in possession of ammunition. Senior United States District Court Judge John M. Gerrard sentenced Randolph to 16 months’ imprisonment. There is no parole in the federal system. After Randolph’s release from prison, he will begin a 3-year term of supervised release. On May 21, 2023, at about 3:00 am, police dispatch received 911 calls. The callers reported hearing people yelling, followed by gun shots, and then glass breaking. Police responded to the apartment complex where Randolph lived. The window to his apartment was broken and soil was observed scattered inside and outside the apartment. Randolph was observed yelling when police arrived. The dispute, according to Randolph, was between him and two women. Police observed a live round of ammunition on the carpet just inside the doorway to Randolph’s apartment. Randolph denied knowing it was there. Randolph agreed to allow police to search his apartment. When police later went to retrieve the round of ammunition, it was gone. They asked Randolph where it went, and he said he did not know. A later review of an officer’s body camera recording would show Randolph picking it up off the ground and putting it into his pocket. During the search of Randolph’s apartment, a Glock magazine, loaded with six rounds of 9mm ammunition was found in a drawer near a stove in the kitchen. Officers also discovered four fired shell casings on the ground near a sidewalk beneath Randolph’s balcony. The officers learned Randolph had an active warrant for his arrest. He was searched incident to his arrest and the round of ammunition which the officers had seen earlier on the floor in Randolph’s apartment was found in his pocket. Randolph was prohibited from possessing ammunition due to prior felony convictions for assaulting an officer and for being a felon in possession of a firearm. Randolph pleaded guilty to his offense on October 19, 2023. This case was investigated by the Lincoln Police Department, with assistance from the Bureau of Alcohol, Tobacco, Firearms, and Explosives.


title: Sallisaw Resident Pleads Guilty To Federal Firearm Charge

body_text: MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Terry Joseph Dunnavent, age 38, of Sallisaw, Oklahoma, entered a guilty plea to one count of Felon in Possession of a Firearm. The Indictment alleged that January 3, 2023, Dunnavent was found in possession of a 9mm semi-automatic pistol after having been previously convicted of a crime punishable by imprisonment exceeding one year. The charge arose from an investigation by the Sallisaw Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The Honorable Judge Jason A. Robertson, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, accepted the plea and ordered the completion of a presentence investigation report. Dunnavent will remain in the custody of the U.S. Marshal pending sentencing. Assistant United States Attorney T. Cameron McEwen represented the United States.


title: Yukon Resident Pleads Guilty To Sexual Abuse Of A Minor

body_text: MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Tristan Ray Renzelman, age 22, of Yukon, Oklahoma, entered a guilty plea to one count of Sexual Abuse of a Minor in Indian Country. The Indictment alleged that Renzelman sexually abused a 12-year-old child in 2021. The crime occurred in McIntosh County, within the boundaries of the Muscogee Creek Nation Reservation, in the Eastern District of Oklahoma. The charges arose from an investigation by the Federal Bureau of Investigation and the Muscogee Creek Nation Lighthorse Tribal Police. The Honorable Jason A. Robertson, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, accepted the plea and ordered the completion of a presentence investigation report. Renzelman was remanded to the custody of the U.S. Marshal pending the sentencing hearing. Assistant United States Attorneys Nicole Paladino and Jessica Bove represented the United States.


title: Stilwell Resident Pleads Guilty To Aggravated Assault

body_text: MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Tassia Ann-Lorene Sellers-Turner, age 31, of Stilwell, Oklahoma, entered a guilty plea to one count of Assault with a Deadly Weapon with Intent to do Bodily Harm in Indian Country. The Indictment alleged that on September 9, 2023, Sellers-Turner stabbed the victim multiple times with a knife, intending to do bodily harm. The victim sustained life-threatening injuries. The crime occurred in Adair County, within the boundaries of the Cherokee Nation Reservation, in the Eastern District of Oklahoma. The charge arose from an investigation by the Stilwell Police Department, the Cherokee Nation Marshal Service, and the Federal Bureau of Investigation. The Honorable Judge Jason A. Robertson, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, accepted the plea and ordered the completion of a presentence investigation report. Sellers-Turner will remain in the custody of the U.S. Marshal pending sentencing. Assistant United States Attorney T. Cameron McEwen represented the United States.


title: New Jersey Hospital and Investors to Pay the United States $30.6 Million for Alleged False Claims Related to Excessive Cost Outlier Payments

component: Civil Division

body_text: Columbus LTACH, doing business as Silver Lake Hospital (Silver Lake), a long-term care hospital based in Newark, New Jersey, has agreed to pay over $18.6 million, plus interest, to resolve alleged False Claims Act violations for claiming excessive cost outlier payments from the Medicare program. In addition, certain Silver Lake investors have agreed to pay $12 million, plus interest, to resolve alleged Federal Debt Collection Procedures Act (FDCPA) violations for the fraudulent transfer of money by the hospital to its investors. The settlement amounts will be paid over a five year period, and the Silver Lake payment was negotiated based on the hospital’s lack of ability to pay. In addition to its standard payment system, Medicare provides supplemental reimbursement to hospitals called “cost outlier” payments in cases where the cost of care is unusually high. Congress enacted the supplemental outlier payment system to ensure that hospitals possess the incentive to treat inpatients whose care may be unusually expensive. These cost outlier payments are made based on a formula set forth in the relevant regulations that attempt to adjust a hospital’s charges to the hospital’s costs by multiplying the hospital’s current charges by the hospital’s cost-to-charge ratios derived from the hospital’s previously submitted cost reports. Because the previously submitted cost reports may not reflect the hospital’s current cost to charge ratios, the Medicare program also provides for a retrospective reconciliation process, whereby after the hospital’s cost-to-charge ratio for the applicable time period is finalized, the hospital may be required to pay back excessive outlier payments that it received. This settlement resolves allegations that Silver Lake improperly distorted the cost outlier payment system by rapidly increasing its charges well in excess of any increase in its costs and far beyond what the hospital had the financial ability to repay once its Medicare cost reports were reconciled to account for these charge increases. The settlement also resolves allegations that Silver Lake transferred millions of dollars in the hospital’s money to its investors without receiving equivalent value in return, at a time when the hospital had reason to believe that it would not be able to repay its debts to the Medicare program. The United States alleged that such conduct violated the FDCPA. According to the settlement agreement with the United States, the payments made to resolve the United States’ FDCPA allegations will be made by Dr. Richard Lipsky, Silver Lake’s principal investor, and Columbus Management South LLC, an entity through which other Silver Lake investors received cash distributions from the hospital. “Cost-outlier payments were intended to ensure that hospitals would provide care to all patients requiring their services,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “These payments were not intended to serve as a private source of enrichment for hospitals unrelated to the actual costs incurred in providing such care.” “Medicare serves to ensure that patients get necessary care, including when that care is very expensive,” said U.S. Attorney Philip R. Sellinger for the District of New Jersey. “Medicare is not there for hospitals and their investors to gain unwarranted financial windfalls. As alleged, this hospital falsely reported its costs to Medicare for years and reaped millions in unjustified payments. Along with our partners, this office is committed to protecting the Medicare system from all forms of fraud schemes.” “This settlement underscores the FBI's commitment to investigating fraudulent activity in the health care industry,” said Assistant Director Michael Nordwall of the FBI's Criminal Investigative Division. “The FBI and our law enforcement partners will continue to investigate hospitals who deceptively bill federal health care programs and prioritize investor enrichment at the expense of taxpayers.” “When a hospital submits false information to seek higher reimbursements, it can affect the availability of funds and services for others and drive up the cost of taxpayer-funded health care,” stated Special Agent in Charge Naomi Gruchacz of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “HHS-OIG will continue to work with our law enforcement partners to ensure that health care providers are held accountable if they attempt to exploit federal health care programs.” This settlement was the result of a coordinated effort by the Justice Department's Civil Division, U.S. Attorney’s Office for the District of New Jersey, HHS-OIG's Office of General Counsel and the FBI. The matter was handled by Trial Attorney Daniel Spiro of the Civil Division's Fraud Section and Assistant U.S. Attorney Paul Kaufman for the District of New Jersey. The investigation and resolution of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement can be reported to HHS at 800-HHS-TIPS (800-447-8477). The claims resolved by the settlement are allegations only, and there has been no determination of liability. Settlement


title: Former CEO Of Latitude 360 Pleads Guilty To Payroll Tax Fraud

component: USAO - Florida, Middle

body_text: Jacksonville, Florida – United States Attorney Roger B. Handberg announces that Brent Brown (55, formerly of Jacksonville) has pleaded guilty to failing to pay over payroll taxes withheld from employees. Brown faces a maximum penalty of five years in federal prison. As part of his plea, Brown agreed to pay $3,832,360.48 in restitution to the IRS for unpaid payroll taxes, including both taxes withheld from employees and taxes that should have been paid by the company. A sentencing date has not yet been set. According to the plea agreement, Brown was the Chief Executive Officer of Latitude 360, Inc., and the manager of its subsidiaries, including Latitude 360 Jacksonville. Brown exercised oversight over every aspect of the company’s business affairs, including payments of wages to the company’s employees and disposition of funds in the company’s bank accounts, and he had the corporate responsibility to collect, truthfully account for, and pay over the company’s payroll taxes. Latitude 360 withheld taxes from employee wages, including federal income taxes and Federal Insurance Contributions Act, or “FICA” taxes, which were required periodically to be remitted to the Internal Revenue Service. Brown, on behalf of the company, filed quarterly tax returns that accurately reflected the payroll taxes due, but he caused the company to fail to pay over the payroll taxes to the IRS. This case was investigated by Internal Revenue Service – Criminal Investigation. It is being prosecuted by Assistant United States Attorneys Arnold B. Corsmeier and Laura Cofer Taylor.


title: Venice Man Admits to Arson for Hire of St. Louis Apartment, Conspiring to Burn Additional Illinois Properties for Insurance Money

body_text: EAST ST. LOUIS, Ill. – A man from Venice, Illinois, admitted guilt in federal court Thursday for his involvement in a scheme to commit arson on residential properties and collect fraudulent insurance benefits. Rufis A. Jefferson, 47, pleaded guilty to 14 federal felony charges: one count of conspiracy to commit mail and wire fraud, two counts of mail fraud, 10 counts of wire fraud, and one count of conspiracy to commit arson. “Under federal law, intentionally igniting residential buildings to file insurance claims for the damages and collect benefits is committing fraud, and law enforcement is working to prosecute offenders of these hazardous crimes,” said U.S. Attorney Rachelle Aud Crowe. According to court documents, Jefferson admitted to being paid off by a family member to burn her St. Louis apartment on December 31, 2022, so that she could collect insurance money. In addition to the New Years Eve fire at Spanish Lake Apartments, Jefferson admitted to conspiring with this relative to burn two additional buildings in Granite City and Venice. An ATF confidential informant recorded many of the planning conversations and these Illinois buildings were not burned. The relative’s insurer is estimated to have paid out more than $30,000 for the St. Louis apartment fire. Evette B. Osuegbu, 61, of Granite City, is also charged in the indictment and facing accusations for committing the same 14 federal crimes. An indictment is merely a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury. “Arson is a dangerous act of violence,” said Special Agent in Charge Bernard Hansen, Kansas City Field Division, Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF). “Arson poses a great threat to public safety. ATF works diligently to secure public safety. This guilty plea will send a message to anyone who considers conducting these types of violent acts that they will not be tolerated. ATF will continue to work alongside our law enforcement partners to ensure that your community remains a safe place.” Jefferson’s sentencing hearing is scheduled for April 25, 2024. His charges are punishable by up to 20 years’ imprisonment per count. ATF led the investigation, and Assistant U.S. Attorneys Kevin Burke and Zoe Gross are prosecuting the case.