title: Three-Month Campaign to Reduce Violent Crime Results in Seizure of 165 Firearms and 29 Prosecutions for Gun, Drug and Violent Crimes

component: USAO - California, Southern

body_text: NEWS RELEASE SUMMARY – May 31, 2023 SAN DIEGO – Law enforcement officials today announced that a three-month campaign to reduce violent crime in San Diego County has resulted in the seizure of 165 firearms - including 82 privately-made weapons known as “ghost guns” - and the prosecution of 29 people. The Privately Made Firearm Crime Reduction Project, which ran from February to May, was initiated to address gun violence and the proliferation of ghost guns in San Diego. The Bureau of Alcohol, Tobacco, Firearms and explosives (ATF) and the San Diego Police Department used data analytics to determine areas where there was an increase in gun violence and where crime guns were being recovered. ATF and SDPD employed an intelligence-led policing effort throughout the 90-day initiative to determine where to place resources to have the greatest impact. This partnership used a multitude of investigative techniques including undercover operations, surveillance, scouring social media accounts, and using confidential informants and undercover federal agents. Law enforcement personnel risked their lives during nearly 88 operations to get these guns out of the hands of criminals and make communities safer. These operations included undercover operations, search warrants, and arrests warrants. Those primarily targeted were individuals involved in the illegal possession, manufacture and sale of firearms, particularly ghost guns bearing no serial numbers or identifying marks who were selling them to people prohibited from owning guns. Authorities reported results of the operation at a news conference today, where ATF agents displayed 81 firearms items seized during the operation. Those weapons included machine guns; Glock Switches – which are machinegun conversion devices; short-barrel rifles; pistols and silencers. A substantial number of seized weapons were fully automatic. In addition to the firearms, investigators also recovered approximately 66 pounds of methamphetamine, 1.4 kilograms of powder fentanyl, 4,300 fentanyl pills, and 2.25 kilograms of cocaine. To date, 22 defendants are charged in federal court and an additional seven in state court with various gun and drug crimes; four other state cases are pending. Federal gun charges include Dealing in Firearms without a License; Possession of a Machine Gun; Felon in Possession of a Firearm; Assault of a Federal Agent; Possession of a Firearm in Furtherance of a Violent Crime and Possession of a Firearm in Furtherance of Drug Trafficking. Drug charges include distribution of fentanyl, methamphetamine, and cocaine. Last year alone, there were approximately 20,000 suspected ghost guns reported to ATF as having been recovered by law enforcement in criminal investigations – a ten-fold increase from 2016. Because ghost guns lack the serial numbers marked on other firearms, law enforcement has an exceedingly difficult time tracing a ghost gun found at a crime scene back to an individual purchaser. On a local level, the San Diego Association of Governments, the regional clearinghouse for crime data, received a federal grant through the Department of Justice to enhance its tracking of crimes that involve firearms around the region. This would include the use of a firearm in violent crime and providing information regarding where these crimes are occurring, tracking calls for service related to the use of firearms, and interviewing arrestees regarding their use of firearms and ghost guns. SANDAG has reported that ghost guns have been a significant and growing challenge around San Diego County in recent years. According to SANDAG, there was a 401 percent increase in ghost guns recovered by local law enforcement agencies in San Diego County from 2019 to 2021. In the City of San Diego, the police department reports that about one-quarter of the guns recovered at crime scenes and during investigations during 2021 were privately manufactured and lacked serial numbers. Preliminary numbers indicate that San Diego County law enforcement seized fewer ghost guns in 2022, but the overall rate of ghost gun seizures is still significantly higher than a few years ago. “Our number one priority is keeping our residents safe, and gun crimes are a direct threat to that safety,” said U.S. Attorney Randy Grossman. “Every illegal gun that is removed from criminal hands makes us safer, and for that reason, this operation was a tremendous success.” Grossman thanked the prosecution team for their dedication to these cases; and especially agents and officers from ATF and San Diego Police Department who put their lives on the line during this very successful operation. “The Privately Made Firearms Crime Reduction Project was conducted so ATF could leverage its federal resources to attack gun crime in San Diego,” said ATF Los Angeles Field Division Special Agent in Charge Christopher Bombardiere. “ATF collaborated with its our partners and successfully focused their efforts on violent individuals who were making and selling extremely powerful firearms without a license. In 90 days, ATF seized 165 firearms with almost half being privately made firearms and about a third being unregistered National Firearms Act (NFA) weapons. Those consisted of machine guns, machine gun conversion devices, short-barreled rifles, and silencers. This initiative and other ongoing investigations will continue to make our community safer.” “The proliferation of drugs and firearms in our communities is an issue the San Diego Police Department is laser-focused on,” said San Diego Police Department Chief David Nisleit. “As one of the first in the nation to have a dedicated team for ghost gun investigations in the City of San Diego, SDPD is proud to have been a part of such a successful operation that gets drugs, firearms and the criminals that sell and manufacture them off our streets. The efforts by all involved demonstrate the seriousness and effectiveness of our collaborative work to combat this issue.” In 2021, the San Diego Police Department established a dedicated team to address the proliferation of personally manufactured firearms, or “ghost guns,” in San Diego. One of the first of its kind in the nation, the Ghost Gun Apprehension Team has been tasked with investigating unlawful ghost gun manufacturing and sales cases. The team serves as a resource to patrol, area station detectives and specialized units when ghost guns are discovered during an arrest or investigation. “The District Attorney’s Office is committed to continuing to work with our state and federal partners on targeted operations like this one that make our neighborhoods safer,” said San Diego County District Attorney Summer Stephan. “In addition to the illegal guns seized, thousands of fentanyl-laced pills and dozens of pounds of meth were recovered, keeping these illegal and dangerous drugs off the streets and preventing potentially fatal overdoses.” In this operation, examples of federal cases include these allegations which are contained in charging documents: - Christian Ferrari, a 22-year-old active-duty U.S. Marine stationed at Camp Pendleton, was charged with illegally selling ghost guns to undercover ATF agents in several transactions. These guns included 12 AR-type rifles. The agents also placed an order for an additional 10 rifles and explained they were for an associate who would be taking the firearms into Mexico. Ferrari responded, “alright, perfect,” and quoted the agents $10,000 for those 10 rifles. (23-mj-01618) - Giovanni Diaz was convicted of robbery in 2022. In March 2023, Diaz began selling fentanyl pills and guns to an ATF undercover agent. Over the course of two weeks, Diaz sold 1,400 fentanyl pills and three ghost guns to the agent. (23-cr-000872) - Jonathan Manuel Flores was charged with assaulting a federal officer with a Glock 9 mm pistol and brandishing a firearm in furtherance of a crime of violence. According to a federal complaint, on February 17, 2023, ATF agents conducted an undercover operation in San Diego to purchase a machine gun, specifically a Glock pistol with a full auto conversion device, commonly known as a “Glock Switch,” for $2,400. During the undercover operation the defendant insisted that the gun deal take place in their car. The undercover agent got into the back seat of the parked car as requested. As the undercover agent finished counting the cash, the defendant allegedly pulled back the slide on his pistol to make it ready to shoot and pushed the muzzle into the undercover agent’s ribcage. He then said, “Get the f---- out of the car dog before I smoke you” while grabbing the cash from the agent’s hand. The agent quickly exited the vehicle and the sedan took off. (23-cr-0512) *The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.


title: Smuggling over $2M in fentanyl and other narcotics lands women in prison

component: USAO - Texas, Southern

body_text: CORPUS CHRISTI, Texas – Two Houston women have been sent to prison following their convictions of conspiring to possess with intent to distribute fentanyl, heroin and cocaine, announced U.S. Attorney Alamdar S. Hamdani. Clarissa Hernandez, 24, admitted her role in the conspiracy June 2, 2022, while her co-conspirator, Sarah Morales, 24, pleaded guilty April 28, 2022. Today, U.S. District Judge David S. Morales ordered Hernandez to serve 120 months in federal prison to be immediately followed by five years of supervised release. At the hearing, the court heard additional evidence that detailed the conspiracy, which included the women purchasing firearms in Houston and exporting them to Mexico. Morales was also previously sentenced to a 120-month term of imprisonment to be immediately followed by five years of supervised release. In handing down the sentence, the court noted the complex and seriousness nature of the criminal activity. On Feb. 11, 2022, Hernandez attempted to drive through a Border Patrol (BP) checkpoint, at which time a K-9 alerted to her vehicle. A search revealed 15 bundles of cocaine and 32,500 pills of disguised fentanyl concealed in the front and rear bumpers of her Chevrolet sedan. Soon after, Morales also attempted to pass through the checkpoint. During a search, authorities discovered 12 bundles of cocaine, three bundles of heroin and one bundle of fentanyl concealed in the front and rear bumpers of her Ford sport utility vehicle. At the time of their pleas, they admitted they had conspired together to smuggle a total of 25.36 kilograms of cocaine, 4.94 kilograms of fentanyl and 255 grams of heroin. The drugs have a combined estimated street value of approximately $2.25 million. Hernandez will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future. The Drug Enforcement Administration and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation with the assistance of BP. Assistant U.S. Attorney John Marck prosecuted the case. #OnePillCanKill


title: Utah Woman Sentenced to 12 Months Imprisonment for Wire Fraud and Ordered to Pay Over $88,000 in Restitution

component: USAO - Utah

body_text: Salt Lake City, Utah – A Utah woman was sentenced today to one year imprisonment for devising a scheme to defraud Kemper Personal Insurance, for personal payment following a massive house fire in 2021. According to court documents, April Kristina Tinnes, 49, of Tooele, Utah, pleaded guilty to wire fraud for devising a scheme to defraud Kemper Personal Insurance between January 2021 and May 2021. Tinnes made false and fraudulent representations regarding a fire she deliberately set on January 16, 2021, to her residence in Tooele. Tinnes was not living at the residence but renting a home nearby. The purpose of the scheme was to obtain payment of insurance proceeds on a policy written by Kemper Personal Insurance for the residence, which had been renewed in late 2020. In furtherance of the scheme, Tinnes caused a sworn video-recorded deposition examination taken by Kemper counsel documenting Tinnes’ false statements in support of her claim, to be transmitted via wire communications in interstate commerce to Kemper investigators. In addition to her 12 months’ imprisonment, Tinnes was ordered to serve three years of supervised release after her prison sentence and ordered to pay over $88,000 in restitution, which she paid in full. “This case sends a firm and important message that those who commit arson for financial gain will be prosecuted and brought to justice,” said Assistant U.S. Attorney, Mark Hirata, for the District of Utah. “ATF Forensic Auditors and Certified Fire Investigators work in tandem to provide a financial analysis as well as an origin and cause determination in arson-for-profit investigations, said ATF Special Agent in Charge Brent Beavers. “Arson-for-profit schemes, such as this, not only have financial and economic repercussions but also present a serious threat to public safety.” U.S. Attorney, Trina A. Higgins, of the District of Utah made the announcement. The case was investigated jointly by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Tooele City Police Department and Tooele City Fire Department. Assistant U.S. Attorney, Mark Y. Hirata of the District of Utah prosecuted the case. This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.


title: Former Bellevue, Washington, resident sentenced to 12 years in prison for securities fraud

component: USAO - Washington, Western

body_text: Seattle – A 42-year-old former Bellevue, Washington, man was sentenced today in U.S. District Court in Seattle to 12 years in prison for securities fraud, announced U.S. Attorney Nick Brown. Justin Costello victimized marijuana business owners, private investors, and investors who purchased stock in the public market. Costello used fraud proceeds for an expensive lifestyle, including an elaborate wedding with a James Bond theme. At the sentencing hearing, U.S. District Judge Ricardo S. Martinez said the frauds “caused a severe impact financially, and a severe emotional impact…. People felt betrayed and violated by (Costello’s) actions. "Mr. Costello had ‘big dreams’ -- building a lifestyle that emulated his hero, 007 James Bond — but he did so by victimizing dozens of people and businesses who entrusted their personal savings to him,” said U.S. Attorney Nick Brown. “When he was indicted, he fled with fake ID, cash, gold, and jewelry to finance a life on the run. But his story is not fiction and the $35 million damage to his victims is all too real. This prison sentence is fully appropriate.” “After finally having to answer for his crimes, Mr. Costello went on the run” said Richard A. Collodi, Special Agent in Charge of the FBI’s Seattle field office. “His flight to avoid prison demonstrates that is exactly where he belongs. I applaud the work of our investigators and prosecutors who finally put an end to his elaborate fraud, and to our partners who were able to apprehend him before he could leave the country.” As part of his securities fraud scheme, Costello purchased two companies that were trading for pennies on the over-the-counter market and renamed them GRN Holding Corporation and Hempstract Inc. Costello recruited investors in these companies, allegedly making numerous false statements. Costello told potential private investors that he had an MBA from Harvard, that his personal wealth was significantly larger than it was, and that GRN Funds LLC, a private equity and hedge fund he owned, had over $1 billion in assets under management. None of that was true. With these falsehoods, Costello convinced various investors across the country to invest in his companies. Today., some of those recruited investors told the court how Costello preyed on their friendship to get them to invest. One told the court “Nothing with Costello was real… We were groomed by this predator… The stage was set for this big con.” Another told the court “He is a liar, a financial psychopath, and a human wrecking ball.” A third told the court that her husband was a changed man after losing all of their money investing with Costello. She described how her husband became depressed and took his own life. Costello did not just defraud friends, he also committed fraud on those investing on public markets. He had press releases and securities filings made with multiple false representations. Between July 1, 2019, and May 18, 2021, over 7,500 investors purchased and sold GRN Holding Corp. securities while Costello was making, and causing to be made, material misrepresentations concerning GRN Holding Corp. Collectively, these investors lost approximately $25 million. Similarly, with Hempstract Inc., he made false statements and defrauded investors. Between November 2018 and June 2021, 29 private investors lost about $6 million. Between October 2019, and January 2021, Costello hired an unindicted coconspirator to use Twitter in a pump and dump stock scheme. Costello would acquire the penny stock of a company and then instruct his prolific Twitter user to tweet falsehoods about the company that would drive up the stock price. The coconspirator would tweet about the stock as often as 90 times a day. In one instance Costello didn’t just use Twitter, he also instructed some of his “investors” to purchase stock in the company, driving the share price from a nickel to $2 per share. After driving the share price up, Costello sold the shares for a profit of more than $355,000. The prolific Twitter user was given a share of Costello’s profits from the pump and dump scheme. In all Costello made $625,092 in the pump and dump scheme. Along with the securities fraud, in 2017 Costello owned and operated a company called Pacific Banking Corp that provided banking services to marijuana businesses in Washington, Colorado, California, Illinois, and Alaska. Costello sent false account statements to the marijuana businesses, so that they were lulled into thinking their money was secure. However, between 2019 and 2021, Costello diverted money from three marijuana business to benefit himself and his other companies. The three marijuana businesses lost about $3.7 million. Costello was apprehended October 6, 2022, by law enforcement in Southern California. He had fake identification documents, cash, and valuables indicating he hoped to flee to Mexico to avoid prosecution. In addition to the financial harm, prosecutors noted that Costello’s investors suffered a betrayal that stays with them to this day. “Costello’s deceit – about his background, his education, and his purported success – was designed to convince unwitting investors to trust him. And trust him they did. But when lies and fraud are exposed, victims are left with significant emotional and psychological damage. They blame themselves for being gullible and overly trusting. The resulting stress, anxiety, and sense of betrayal causes great emotional and psychological harm, and damages the victims’ relationships with friends, family, and others,” prosecutors wrote in their sentencing memo. Judge Martinez recognized that harm in imposing the sentence saying, “in many financial crimes the victims are not known to the fraudster… Financial crimes where the defendant befriends the individual and uses them to entice others to the scheme has a completely different emotional impact. It leaves victims feeling helpless and hopeless.” In his Plea Agreement, Costello agreed to pay no less than $35 million in restitution, but the Court will enter the final restitution amount in August 2023. Costello is forfeiting assets that were seized at the time of his arrest including $60,000 in cash, gold bars, Mexican pesos, two designer watches, and gem encrusted jewelry. The case was investigated by the FBI. The case is being prosecuted by Assistant United States Attorneys Justin Arnold and Michael Dion.


title: Three Albuquerque Men Charged for Shootings Targeting the Residences of Elected Officials

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

body_text: ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, Kenneth A. Polite, Jr., Assistant Attorney General of the Justice Department’s Criminal Division, and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, announced today that an indictment was unsealed today charging Solomon Peña and his accomplices, Demetrio Trujillo and Jose Trujillo, for a shooting spree targeting the homes of four elected officials. A federal grand jury indicted all three defendants on May 24, 2023. Solomon Peña, 40, is charged with conspiracy, four counts of interference with federally protected activities, and four counts of using and carrying a firearm during and in relation to a crime of violence. If convicted, Peña faces up to life in prison. Peña is currently in state custody on related charges. Jose Trujillo, 22, is charged with conspiracy, four counts of interference with federally protected activities, and four counts of using and carrying a firearm during and in relation to a crime of violence, possession with intent to distribute 40 grams and more of fentanyl and using and carrying a firearm during and in relation to a drug trafficking crime. An arraignment hearing is scheduled for June 8. If convicted, Jose faces up to life in prison. Demetrio Trujillo, 41, is charged with conspiracy, four counts of interference with federally protected activities, and four counts of using and carrying a firearm during and in relation to a crime of violence. An initial appearance has been scheduled for June 1. If convicted, Demetrio faces up to life in prison. According to the indictment, Peña ran for District 14 of the New Mexico House of Representatives during the November 2022 mid-term elections. Following his electoral defeat in November 2022, Peña allegedly organized the shootings on the homes of two Bernalillo County commissioners and two New Mexico state legislators. The shootings were carried out between Dec. 4, 2022, and Jan. 3, with assistance from his co-defendants. “In America, the integrity of our voting system is sacrosanct,” said U.S. Attorney Alexander M.M. Uballez. “These charges strike at the heart of our democracy. Voters, candidates and election officials must be free to exercise their rights and do their jobs safely and free from fear, intimidation or influence, and with confidence that law enforcement and prosecuting offices will lead the charge when someone tries to silence the will of the people. To those who try to sow division, chaos, and fear into our democratic process, these charges should send a message that we are unified, organized, and undaunted.” “There is no room in our democracy for politically motivated violence, especially when it is used to undermine election results,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “As alleged, Solomon Peña orchestrated four shootings at the homes of elected officials, in part because of their refusal to overturn his election defeat. Such violent actions target not only the homes and families of elected officials, but also our election system as a whole. The department will not hesitate to hold individuals accountable for acts of politically motivated violence.” "Solomon Pena and the other defendants carried out the hatred in their hearts by targeting a group of the community’s public officials.” said Raul Bujanda, FBI Special Agent in Charge. “These charges illustrate that the FBI will relentlessly work with our law enforcement partners to actively investigate and pursue prosecution of those individuals who threaten and harm our elected officials.” “APD worked tirelessly with our federal partners to bring those responsible for these heinous crimes to justice,” said Chief Harold Medina. “Thankfully no one was physically harmed by these politically motivated shootings, but I hope these indictments bring some sense of relief to all those impacted, through the emotional toll they’ve had to endure.” “ATF is dedicated to combatting the senseless firearm violence that plagues our nation,” said Brendan Iber, Special Agent in Charge of ATF’s Phoenix Field Division. “We will always work with our law enforcement partners to identify and remove those violent offenders from our communities.” An indictment is only an allegation. A defendant is presumed innocent unless and until proven guilty. The FBI Albuquerque Field Office investigated this case with the Albuquerque Police Department and the assistant of the Bureau of Alcohol, Tobacco, Firearms and Explosives. Senior Litigation Counsel Victor R. Salgado of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorneys Jeremy Peña and Patrick E. Cordova for the District of New Mexico are prosecuting the case. # # # 23-117


title: Construction Company Operator Sentenced to Federal Prison for Role in Payroll Tax Evasion Scheme

component: USAO - Oregon

body_text: PORTLAND, Ore.—A Portland area construction company operator was sentenced to federal prison today for his role in a multiyear scheme to evade the payment of payroll and income taxes on the wages of construction workers. Melesio Gomez-Rivera, 49, of Aloha, Oregon, was sentenced to 30 months in federal prison and three years’ supervised release. He was also ordered to pay $29.9 million in restitution to the IRS. According to court documents, Gomez-Rivera owned and operated a residential construction company called Novatos Construction. From January 2014 until December 2017, Gomez-Rivera and several other construction company owners conspired with each other and David A. Katz, 47, of Tualatin, Oregon, the operator of Check Cash Pacific, Inc., a check cashing business with locations in the Portland area and Vancouver, Washington, to defraud the United States by facilitating under-the-table cash wage payments to construction workers. Their actions, individually and collectively, impeded and obstructed the IRS’s ability to compute, assess, and collect payroll and income taxes due on the cash wages. To carry out the scheme, Gomez-Rivera and the other company owners cashed or had other individuals cash millions of dollars in payroll checks at various locations of Katz’s check cashing business, used the cash to pay construction workers under-the-table, and filed false business and payroll tax returns. In total, the group cashed approximately $192 million in payroll checks, causing a combined employment and individual income tax loss of $68 million. On December 2, 2021, a federal grand jury in Portland returned a five-count indictment charging Gomez-Rivera, Katz and four other individuals with conspiring with one another to defraud the United States. Katz was additionally charged with four counts of filing false currency transaction reports with the U.S. Department of Treasury’s Financial Crimes Enforcement Network (FinCEN). On March 1, 2023, Gomez-Rivera became the first of the six co-conspirators to plead guilty. All others are awaiting a 10-day jury trial scheduled to begin on December 5, 2023. This case was investigated by IRS-Criminal Investigation. Assistant U.S. Attorneys Seth D. Uram and Gavin W. Bruce of the District of Oregon are prosecuting the case.


title: United States Files Civil Action to Collect Unpaid Civil Penalties and Reclamation Fee Debts

component: Energy and Natural Resources Division

body_text: The Justice Department today announced the filing of a civil action against James C. Justice III and 13 coal companies he owns or operates seeking to collect unpaid civil penalties previously assessed by the Department of the Interior (DOI) Office of Surface Mining Reclamation and Enforcement (OSMRE), as well as Abandoned Mine Land (AML) reclamation fee and audit debts. “Our environmental laws serve to protect communities against adverse effects of industrial activities including surface coal mining operations,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “Through this suit, the Justice Department seeks to deliver accountability for defendants’ repeated violations of the law and to recover the penalties they owe as a result of those violations.” “Over a five-year period, defendants engaged in over 130 violations of federal law, thereby posing health and safety risks to the public and the environment,” said U.S. Attorney Christopher R. Kavanaugh for the Western District of Virginia. “After given notice, they then failed to remedy those violations and were ordered over 50 times to cease mining activities until their violations were abated. Today, the filing of this complaint continues the process of holding defendants accountable for jeopardizing the health and safety of the public and our environment.” Pursuant to the Surface Mining Control and Reclamation Act (SMCRA), when a permittee violates SMCRA or their applicable permit, OSMRE issues a notice of violation (NOV) for non-imminently dangerous violations. The NOV sets a deadline for abating the violation. If the permittee fails to abate the violation by the NOV’s deadline, OSMRE issues a cessation order to halt mining until the violation is abated. If the permittee still fails to abate the violation within 30 days of the cessation order, OSMRE can take certain actions, including assessing civil penalties. If the violation creates an imminent danger to the health or safety of the public, OSMRE issues a second type of cessation order, called an Imminent Harm Cessation Order (IHCO), in lieu of an NOV, which requires cessation of active mining until the violation is abated. Separately, a director, officer or agent of a corporate permittee can be subject to individual civil penalties for willfully and knowingly authorizing, ordering or carrying out a permit violation or failure to comply with certain OSMRE orders. From 2018 to 2022, OSMRE cited the defendants for over 130 violations and issued the companies over 50 cessation orders. The underlying violations pose health and safety risks or threaten environmental harm. In addition, defendants failed to pay required AML fees, which fund the reclamation of coal mining sites abandoned or left in an inadequate reclamation status. According to today’s filing, the total amount of the penalties and AML fees, plus interest, penalties and administrative expenses, owed by the defendants is approximately $7.6 million. Assistant U.S. Attorney Krista Consiglio Frith for the Western District of Virginia and Trial Attorneys Sally J. Sullivan and Clare Boronow of the Environment and Natural Resources Division are handling this matter.


title: Justice Department Secures Over $3 Million Redlining Settlement Involving ESSA Bank & Trust in Philadelphia

component: Civil Rights Division

body_text: The Justice Department announced today that ESSA Bank & Trust (ESSA) has agreed to pay over $3 million to resolve allegations that it engaged in a pattern or practice of lending discrimination by redlining majority-Black and Hispanic neighborhoods in and around Philadelphia. Redlining is an illegal practice in which lenders avoid providing credit services to individuals living in communities of color because of the race, color or national origin of the residents in those communities. The complaint filed in federal court today alleges that from at least 2017 to 2021, ESSA failed to provide mortgage lending services and did not serve the credit needs of majority-Black and Hispanic neighborhoods in the Philadelphia metropolitan area. “For too long, residents of communities of color have been unlawfully denied equal access to credit and shut out of economic opportunities,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “When banks engage in redlining, they perpetuate existing patterns of segregation and widen the racial wealth gap in our country. This resolution makes clear our commitment to holding banks and financial institutions accountable for modern day redlining while ensuring access to fair lending in communities of color.” “Accessing the American dream of owning your own home is possible only when there is equality for all in their opportunities to access lending in the residential mortgage markets,” said U.S. Attorney Jacqueline C. Romero for the Eastern District of Pennsylvania. “Redlining in Greater Philadelphia has deep roots; it’s led to decades of disinvestment in communities of color. We appreciate ESSA’s prompt cooperation with the department’s investigation and their efforts that will aim to infuse lending resources and help build wealth in neighborhoods of color.” Under the proposed consent order, which is subject to court approval, ESSA has agreed to invest at least $2.92 million in a loan subsidy fund to increase access to credit for home mortgage, improvement and refinance loans, as well as home equity loans and lines of credit, in majority-Black and Hispanic neighborhoods in the bank’s lending area. ESSA has also agreed to spend an additional $125,000 on community partnerships and $250,000 on advertising, outreach, consumer financial education and credit counseling, in an effort to expand the bank’s services in majority-Black and Hispanic communities. The consent order also requires the bank to hire two new mortgage loan officers to serve its existing branches in West Philadelphia and conduct a research-based market study to help identify the needs for financial services in communities of color. The department opened its investigation into ESSA’s lending practices after receiving a referral from the Federal Deposit Insurance Corporation. ESSA fully cooperated with the department’s investigation and worked expeditiously to resolve these allegations. In October 2021, the department launched its Combating Redlining Initiative as a coordinated enforcement effort to address this persistent form of discrimination against communities of color. Since the initiative was launched, the department has announced seven redlining cases and settlements and secured $87 million in relief for communities of color that have been victims of lending discrimination across the country. More information about the department’s fair lending enforcement can be found at www.justice.gov/fairhousing . 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.


title: Court Permanently Bars Five Defendants From Promoting Charitable Remainder Annuity Trust Tax Scheme

component: Tax Division

body_text: On May 23, the U.S. District Court for the Western District of Missouri permanently barred Rhonda Eickhoff from organizing, promoting, selling or marketing a tax scheme involving the use of charitable remainder annuity trusts (CRATs). On May 17, the court likewise permanently barred John Eickhoff Jr. and Hoffman Associates LLC from organizing, promoting, selling or marketing a tax scheme involving the use of CRATs. In addition, the court ordered Hoffman Associates LLC, the company allegedly used to promote the scheme, to disgorge $1.1 million and John Eickhoff Jr. to disgorge $400,000. The court previously entered injunctions against defendants John William Gray II and Damon Thomas Eisma stemming from their roles in this scheme. Each defendant agreed to the court orders. The case against two additional defendants for their roles in this scheme remains pending. According to the United States’ amended complaint, defendants falsely claimed that customers following their CRAT scheme could sell property in a way that eliminated the federal income tax on the gain generated from the sale. The government alleged each defendant took part in one or more of the following steps involved in the scheme: (1) recruiting customers to contribute property to a CRAT (usually real property that has gained value over time); (2) unlawfully inflating (stepping-up) the cost basis in the property on tax documents; (3) selling the property and using the proceeds to purchase an annuity; and (4) falsely reporting the annuity payments received by the customers as tax-free distributions from the CRAT. The government alleged that the defendants promoted, sold, or established at least 70 CRATs, resulting in an estimated $40 million of unreported taxable income. Abusive arrangements using Charitable Remainder Annuity Trusts remain a concern of the IRS, which recently warned taxpayers about the misuse of this trust arrangement as part of the IRS’s Dirty Dozen series . Deputy Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division made the announcement. Taxpayers seeking a return preparer should remain vigilant against unscrupulous tax preparers. The IRS offers tips on how to accurately file returns and how to choose a tax return preparer , as well as steps taxpayers can take to get a jumpstart on filing . The IRS also offers 10 tips to avoid tax season fraud and ways to safeguard their personal information. Taxpayers seeking assistance can access the IRS’s free directory of federal tax preparers. In the past decade, the Justice Department's Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers and promoters. Information about these cases is available on the Justice Department’s website . An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page . If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.


title: Former Operator of Payza.com Charged with Laundering 450 Bitcoin

component: USAO - District of Columbia

body_text: WASHINGTON – Firoz Patel, 48, of Canada, was ordered detained today following indictment on charges of laundering 450 Bitcoin (BTC), valued at $24,020,699.83 at the time of the transaction, shortly before he reported to prison in another case in 2021. The two-count indictment, unsealed on May 17, 2023, charges Patel with money laundering and engaging in monetary transactions in property derived from specified unlawful activity. U.S. District Court Judge Dabney L. Friedrich, of the U.S. District Court for the District of Columbia, ordered Patel be detained pending trial. The announcement was made by U.S. Attorney Matthew M. Graves and Special Agent in Charge Derek W. Gordon of Homeland Security Investigations (HSI) Washington, D.C. Previously, Patel, his brother, Ferhan, and their company, MH Pillars, Inc., d/b/a Payza, were prosecuted in the United States District Court for the District of Columbia for operating an Internet-based unlicensed money service business that processed more than $250 million in transactions. Through Payza.com, the defendants ran a money transmitting business that operated without the necessary state licenses and knowingly transmitted funds that were derived from illegal activity. The brothers each pled guilty to conspiracy to commit crimes against the United States by operating an unlicensed money transmitting business and by laundering monetary instruments. As part of his plea agreement, Firoz Patel was required to disclose all known assets to the U.S. government. On November 10, 2020, Patel was sentenced to 36 months in prison and was given a reporting date. The court also entered a forfeiture judgment for “any property, real or personal, involved in” the offense to which Firoz Patel had pled guilty. According to court documents, between his sentencing and reporting dates, Patel transferred 450 BTC, traceable to Payza.com, to an account at a virtual currency exchange in the United Kingdom. The 450 Bitcoin would have been subject to forfeiture in Patel’s previous criminal case. The virtual currency exchange account was opened using the name and date of birth of Patel’s father, but with an email address and phone number controlled by Firoz Patel. When the virtual currency exchange requested additional information about the account and the large deposit, it received a response in the name of an employee of a company in India affiliated with Payza. The account containing the 450 Bitcoin was ultimately frozen. This matter is being investigated by the Homeland Security Investigations (HSI) Washington, D.C. Field Office. The case is being prosecuted by Assistant U.S. Attorneys Arvind K. Lal and Christopher B. Brown. An indictment is a formal accusation of criminal conduct, not evidence of guilt. A defendant is presumed innocent unless proven guilty.


title: Former Texas Sheriff’s Office Chief Deputy Sentenced for Using Excessive Force

body_text: A former Van Zandt County, Texas, Sheriff’s Office Chief Deputy was sentenced today to 44 months in prison for violating an arrestee’s civil rights by using excessive force against him. According to court documents, Steven “Craig” Shelton, 62, previously pleaded guilty and admitted that on or about Sept. 21, 2021, while acting as the Chief Deputy and second-in-command of the Van Zandt County Sheriff’s Office, he repeatedly struck a handcuffed and compliant arrestee in the face. Shelton admitted that his acts, which occurred in front of several other officers in the Rolling Oaks area of Wills Point, Texas, caused bodily injury to the arrestee. Shelton admitted that he hit the arrestee because Shelton was frustrated, even though Shelton knew that there was no legitimate, law enforcement need to use force against the arrestee. “This defendant abused his authority as a law enforcement officer by violently assaulting and injuring a handcuffed arrestee, violating the victim’s civil rights and the public’s trust,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department will continue to hold accountable those officers who abuse their authority, wherever such abuses occur.” “It is an unacceptable abuse of authority for a police officer to strike a handcuffed arrestee who poses no threat,” said U.S. Attorney Damien M. Diggs for the Eastern District of Texas. “Public trust in law enforcement is eroded when officers do not follow the laws they are sworn to enforce. While recognizing that a vast majority of law enforcement officers protect the constitutional rights of individuals on a daily basis, the U.S. Attorney’s Office remains committed to protecting the public from officers who violate those rights.” “The FBI regards the protection of civil rights as one of our most solemn responsibilities,” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division. “We will continue to investigate any law enforcement officer who violates these rights, and pursue justice for victims.” The FBI Dallas Field Office investigated the case. Assistant U.S. Attorney Tracey Batson for the Eastern District of Texas and Special Litigation Counsel Kathryn E. Gilbert and Trial Attorney Matthew Tannenbaum of the Civil Rights Division’s Criminal Section prosecuted the case.


title: D.C. Man Held on Charges He Distributed Lethal Dose of Fentanyl to an 18-Year Old Army Private

component: Drug Enforcement Administration (DEA)

body_text: WASHINGTON – Jaron Johnson, 22, of Washington, D.C., was ordered held today pending trial in a drug distribution case that resulted in death. Johnson is charged by indictment, filed May 9, 2023, with distribution of fentanyl resulting in death and possession with intent to distribute fentanyl, announced U.S. Attorney Matthew M. Graves, Special Agent in Charge Jarod Forget of the Drug Enforcement Administration’s (DEA) Washington Division, and Special Agent in Charge Timothy Eckersley of the Army Criminal Investigation Division’s Washington Field Office. According to documents filed in U.S. District Court, in May of 2022, Johnson purposefully distributed what he knew to contain fentanyl to a U.S. Army private (the “decedent”). The fentanyl the defendant sold to the decedent killed him within hours. His cause of death was determined to be a mixture of fentanyl, dextromethorphan (cough medicine), and chlorpheniramine (allergy medicine), with an enlarged heart as a contributing factor, and the manner ruled accidental. The examiner, however, indicated that had the decedent ingested only the fentanyl, he would have died. When the decedent’s phone was searched, investigators found a text message conversation between the decedent and a specific phone number which was linked to Johnson. The messages show that the decedent discussed meeting with Johnson to purchase “blues” and “30s,” which is slang known to be used for pills containing fentanyl. On May 23, 2022, Johnson sent a message to the decedent which included a picture of a hand holding a bag of light blue pills, with the marking’s “M” and “30” on them. The decedent died on May 26, 2022. On May 25, 2023, Johnson was arrested at an airport upon his return from California. A search of his checked luggage revealed he had been carrying approximately 33 pounds of suspected marijuana. This case is being investigated by the DEA’s Washington Division and Army’s Criminal Investigation Division. It is being prosecuted by Assistant U.S. Attorney Solomon Eppel and Will Hart, of the Violence Reduction and Traffic Offenses Section (VRTO) of the U.S. Attorney’s Office for the District of Columbia. An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.


title: Two Nigerian Nationals Previously Extradited from the United Kingdom Plead Guilty to International Fraud Scheme that Defrauded Elderly U.S. Victims

component: Civil Division

body_text: Two Nigerian nationals who were extradited to the United States from the United Kingdom pleaded guilty to operating a transnational inheritance fraud scheme. According to court documents, Jerry Chucks Ozor, 43, and Iheanyichukwu Jonathan Abraham, 44, were part of a group of fraudsters that sent personalized letters to elderly victims in the United States, falsely claiming that the sender was a representative of a bank in Spain and that the recipient was entitled to receive a multimillion-dollar inheritance left for the recipient by a family member who had died years before in Spain. Victims were told that before they could receive their purported inheritance, they were required to send money for delivery fees, taxes, and payments to avoid questioning from government authorities. Victims sent money to the defendants through a complex web of U.S.-based former victims. The defendants convinced these former victims to receive money from new victims and then forward the fraud proceeds to others (thereby serving as so-called “money mules”). In pleading guilty, the defendants admitted to defrauding over $6 million from more than 400 victims, many of whom were elderly or otherwise vulnerable. “The Justice Department’s Consumer Protection Branch will pursue, prosecute, and secure the convictions of transnational criminals responsible for defrauding U.S. consumers, wherever they are located. I thank the United Kingdom’s National Crime Agency for its extensive efforts in helping to ensure that these defendants are held accountable here in the United States,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The Justice Department and U.S. law enforcement will continue to work closely with law enforcement partners across the globe to bring to justice criminals who attempt to defraud U.S. victims from outside the United States.” “The U.S. Postal Inspection Service (USPIS) has a long tradition of protecting American citizens from these types of schemes and bringing those responsible to justice,” said Postal Inspector in Charge Juan A. Vargas of the USPIS Miami Division. “These guilty pleas are a testament to the dedicated partnership between the Department of Justice’s Consumer Protection Branch, Homeland Security Investigations (HSI), and the U.S. Postal Inspection Service to protect our citizens from these scams.” “These guilty pleas are a result of the unwavering commitment and countless hours spent by HSI and our law enforcement partners to ensure that this investigation led the extradition of the two Nigerian nationals,” said Special Agent in Charge Scott Brown of HSI Arizona. “Operating a transnational inheritance fraud scheme that targets the elderly is not only morally reprehensible, it also undermines the financial systems we use and depend upon. I thank everyone who worked on this case. These two defendants are one step closer to facing much-deserved prison time.” On May 18, Ozor pleaded guilty to conspiracy to commit mail and wire fraud. Abraham pleaded guilty to conspiracy to commit mail and wire fraud earlier today. Ozor is scheduled to be sentenced by U.S. District Judge Kathleen M. Williams on July 27. Judge Williams will sentence Abraham on Aug. 9. Both defendants face a maximum penalty of 20 years in prison. The Consumer Protection Branch, USPIS, and HSI are investigating the case. Senior Trial Attorney Phil Toomajian and Trial Attorneys Josh Rothman and Brianna Gardner of the Civil Division’s Consumer Protection Branch are prosecuting the case. The Justice Department’s Office of International Affairs, the U.S. Attorney’s Office for the Southern District of Florida, Europol, and authorities from the U.K., Spain, and Portugal all provided critical assistance. If you or someone you know is age 60 or older and has been a victim of financial fraud, help is standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This Justice Department hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is open Monday through Friday from 10:00 a.m. to 6:00 p.m. ET. English, Spanish and other languages are available. More information about the department’s efforts to help American seniors is available at its Elder Justice Initiative webpage. For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at www.justice.gov/civil/consumer-protection-branch . Elder fraud complaints may be filed with the FTC at www.ftccomplaintassistant.gov or at 877-FTC-HELP. The Justice Department provides a variety of resources relating to elder fraud victimization through its Office for Victims of Crime, which can be reached at www.ovc.gov .


title: Detroit Medical Center, Vanguard Health Systems, and Tenet Healthcare Corporation Agree to Pay Over $29 Million to Settle False Claims Act Allegations

body_text: VHS of Michigan Inc., doing business as, The Detroit Medical Center Inc. (DMC), Vanguard Health Systems Inc. (Vanguard), and Tenet Healthcare Corporation (Tenet), has agreed to pay $29,744,065 to the government to resolve allegations that they violated the False Claims Act by providing kickbacks to certain referring physicians. DMC operates hospitals in and around Detroit, including Sinai Grace Hospital and Harper University Hospital. In October 2013, Tenet acquired Vanguard owned-and-operated hospitals and outpatient facilities, including DMC. The settlement announced today resolves the government’s allegations that DMC, Vanguard, and Tenet caused the submission of false or fraudulent claims to Medicare. Specifically, the government alleged that from Jan. 1, 2014, through Dec. 31, 2017, Sinai Grace Hospital and Harper University Hospital provided the services of DMC-employed mid-level practitioners to 13 physicians at no cost or below fair market value in violation of the Anti-Kickback Statute (AKS). The government further alleged that the physicians were selected because of their large number of patient referrals to Sinai Grace Hospital and Harper University Hospital and that the purpose of these arrangements was to induce the physicians to refer additional Medicare patients to DMC facilities. The AKS prohibits offering, paying, soliciting, or receiving remuneration to induce referrals of items or services covered by Medicare and other federally funded programs. The statute is intended to ensure that medical providers’ judgments are not compromised by improper financial incentives and are instead based on the best interests of their patients. “The Justice Department will pursue improper arrangements that have the potential to compromise physicians’ medical judgment,” said Deputy Assistant Attorney General Michael D. Granston of the Justice Department’s Civil Division. “Physicians should evaluate where to send patients for medical services based on the quality of care the patients will receive, not the financial benefits that the physicians will reap.” “This outcome makes clear that when doctors refer patients for care at hospitals, they must do so based on their own professional judgment and the medical needs of their patients, not personal financial benefit,” said U.S. Attorney Dawn N. Ison for the Eastern District of Michigan. “Our office stands ready to scrutinize even the most complicated financial arrangements and to pursue justice wherever appropriate.” “Paying and accepting kickbacks encourages providers to put personal financial gain before the needs of their patients,” said Special Agent in Charge Mario Pinto of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “As this case demonstrates, those who enter into such improper arrangements and put the safety of their patients at risk will be held accountable.” The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by Dr. Jay Meythaler, a former employee of Wayne State University Medical School, which is affiliated with DMC. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. In this case, Dr. Meythaler will receive $5,205,211.37 as part of the settlement. The qui tam case is captioned U.S. ex rel. Meythaler v. Detroit Medical Center, Inc., et al. , No. 5:15-cv-12333 (E.D. Mich.). The resolution obtained in this matter was the result of a coordinated effort between the Civil Division’s, Commercial Litigation Branch, Fraud Section, and the U.S. Attorney’s Office for the Eastern District of Michigan, with assistance from the HHS-OIG and the FBI. 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 the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477). Trial Attorney Kristen Murphy of the Civil Division and Assistant U.S. Attorney Anthony Gentner for the Eastern District of Michigan handled the case. The claims resolved by the settlement are allegations only and there has been no determination of liability.


title: Former New Mexico House of Representatives Candidate Charged for Shooting Spree

component: Criminal Division

body_text: An indictment was unsealed today in the District of New Mexico charging a former candidate for the New Mexico House of Representatives for a shooting spree targeting the homes of four elected officials. According to court documents, Solomon Peña, 40, ran for District 14 of the New Mexico House of Representatives during the November 2022 mid-term elections. After his November 2022 electoral defeat, Peña allegedly organized the shootings on the homes of two Bernalillo County commissioners and two New Mexico state legislators. The shootings, one of which involved a machine gun, were carried out between Dec. 4, 2022, and Jan. 3, with assistance from co-conspirators Demetrio Trujillo, 41; Jose Trujillo, 22; and others. Before the shootings, Peña visited the homes of at least three Bernalillo County commissioners and allegedly urged them not to certify the election results, claiming that the election had been “rigged” against him. Following the Bernalillo County board of commissioners’ certification of the vote, Peña allegedly hired others to conduct the shootings and carried out at least one of the shootings himself. At least three of the shootings occurred while children and other relatives of the victims were at home. “There is no room in our democracy for politically motivated violence, especially when it is used to undermine election results,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “As alleged, Solomon Peña orchestrated four shootings at the homes of elected officials, in part because of their refusal to overturn his election defeat. Such violent actions target not only the homes and families of elected officials, but also our election system as a whole. The department will not hesitate to hold individuals accountable for acts of politically motivated violence.” “In America, the integrity of our voting system is sacrosanct,” said U.S. Attorney Alexander M.M. Uballez for the District of New Mexico. “These charges strike at the heart of our democracy. Voters, candidates, and election officials must be free to exercise their rights and do their jobs safely and free from fear, intimidation, or influence, and with confidence that law enforcement and prosecuting offices will lead the charge when someone tries to silence the will of the people. To those who try to sow division, chaos, and fear into our democratic process, these charges should send a message that we are unified, organized, and undaunted.” “The FBI and our partners are committed to ensuring violent crime investigations remain a priority,” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division. “We will continue to pursue justice in cases like these in the name of safety for the American people.” Peña, Demetrio Trujillo, and Jose Trujillo are charged with conspiracy, interference with federally protected activities, and several firearms offenses, including the use of a machine gun. If convicted, Peña faces a mandatory minimum of 60 years in prison. Jose Trujillo was also charged with possession with intent to distribute fentanyl and firearms offenses, including possession of a machine gun. The FBI and the Albuquerque Police Department investigated the case. Senior Litigation Counsel Victor R. Salgado of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorneys Jeremy Peña and Patrick E. Cordova for the District of New Mexico are prosecuting the case. An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.


title: WMATA Senior Program Manager Sentenced for Carrying Out Procurement Scheme

component: Federal Bureau of Investigation (FBI)

body_text: WASHINGTON – A former senior manager for the Washington Metropolitan Area Transit Authority (WMATA) was sentenced today to 18 months in prison for carrying out a scheme in which he and others manipulated the agency’s procurement process in favor of a company that was paid more than $1.3 million for items and services over a period of more than nine years. Scottie Borders, 61, of Arlington, Virginia, pleaded guilty in September 2022, in the U.S. District Court for the District of Columbia, to conspiracy to commit wire fraud. In addition to the prison term, U.S. District Court Judge Christopher R. Cooper ordered 24 months of supervised release and restitution of $430,177. The sentenced was announced by U.S. Attorney Matthew Graves, Washington Metropolitan Area Transit Authority (Metro) Inspector General Rene Febles, and Special Agent in Charge Wayne A. Jacobs, of the FBI’s Washington Field Office Criminal Division. According to the statement of offense submitted to the Court and admitted by Borders, Borders worked full-time as a Senior Program Manager for WMATA. In this capacity, he was involved in the selection, award, and administration of WMATA contracts with various vendors, contractors, and suppliers. The charge involves payments to a firm identified in the court documents as “Company 1.” This company, based in Millville, New Jersey, was a producer and supplier of traffic signs and safety products to various individuals, entities, and government agencies, including WMATA. As detailed in court documents, from approximately January 2011 through September 2020, in the District of Columbia, and elsewhere, Borders and others engaged in a scheme to unlawfully enrich themselves by securing the selection, award, and administration of contracts, bids, and purchase agreements between “Company 1” and WMATA for various traffic signs and safety products based on materially false representations made to WMATA, via wire, concerning the nature of the contracts, bids, and purchase agreements involving “Company 1” and others. Borders was the primary point of contact for all business conducted between WMATA and “Company 1.” He abused his position at WMATA, and his understanding of the contracting and procurement process, to manipulate bids for items and services in favor of the company by using materially false and fraudulent representations made to WMATA via wire by Borders and his co-conspirators. For example, Borders and his co-conspirators falsified price quotes and bids on behalf of companies that either did not submit bids to do business with WMATA or did not know that their information was being used in connection with specific WMATA bids. Borders also provided individuals at “Company 1” with information about potential competitors’ bids. The purported quotes and fraudulent bid proposals were made up to ensure that the company secured the lucrative WMATA purchase orders and contracts at issue. Additionally, Borders added unnecessary items to purchase orders that he submitted to WMATA on behalf of the company. Ultimately, WMATA paid “Company 1” for such invoices and orders secured and submitted through Borders. Borders also procured purchase orders on behalf of WMATA, for equipment from the company that Borders knew was unnecessary, substandard, and/or never actually provided to WMATA. During the relevant period, WMATA paid the company more than $1.3 million for various services and items, including poles, decals, bus stop signs, flags, and tools. In exchange for facilitating these fraudulent bids and orders on behalf of WMATA, Borders was provided with items of value, including NFL tickets, by individuals affiliated with the company. This investigation was conducted by the FBI’s Washington Field Office and the Washington Metropolitan Area Transit Authority, Office of Inspector General. The prosecution is being handled by Assistant U.S. Attorneys Leslie A. Goemaat and Anne P. McNamara of the U.S. Attorney’s Office for the District of Columbia.


title: Monessen Man Sentenced to 96 Months in Prison for Receipt and Possession of Child Sexual Abuse Material

component: USAO - Pennsylvania, Western

body_text: PITTSBURGH, PA - A resident of Monessen, Pennsylvania, has been sentenced to 96 months’ imprisonment followed by 5 years’ supervised release on his conviction of receipt and possession of material depicting the sexual exploitation of a minor, Acting United States Attorney Troy Rivetti announced today. U.S. District Judge Nicholas Ranjan imposed the sentence on Robert Haggerty, age 63. According to information presented to the court during the change of plea hearing, Robert Haggerty knowingly possessed more than 92 images and 8 videos containing child sex abuse material, some of which depicted sadistic and masochistic conduct and the sexual abuse of infants and toddlers. Haggerty also knowingly received three images containing child sexual abuse material from an individual identified in communications as a 16-year old minor female. Prior to imposing sentence, Judge Ranjan stated that “there is no question that the conduct in this case was serious” and that the “images at issue were, as described, disturbing.” Judge Ranjan further noted that “there are real victims in these cases,” explaining that “the reality is these crimes, whether it is a receipt or possession, have a real impact on people.” In addition to the terms of incarceration and supervised release, Judge Ranjan ordered Haggerty to pay restitution to one victim in the amount of $3,500. Assistant United States Attorney Karen Gal-Or is prosecuting this case on behalf of the government. Acting United States Attorney Rivetti commended Homeland Security Investigations and other members of the Western Pennsylvania Violent Crimes Against Children Task Force for the investigation leading to the successful prosecution of Haggerty. This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.


title: Red Lake Man Pleads Guilty in Drunk Driving Manslaughter Case

component: USAO - Minnesota

body_text: MINNEAPOLIS – A Red Lake man has pleaded guilty to involuntary manslaughter resulting from a drunk driving crash, announced U.S. Attorney Andrew M. Luger. According to court documents, on the morning of November 6, 2021, Gerald Wayne Johnson, 27, was driving a vehicle while intoxicated with a passenger in the front seat. Johnson was driving above 90 miles per hour on a public road which had a posted speed limit of 20 miles per hour. While speeding and driving recklessly, Johnson lost control and crashed the vehicle into a nearby tree. Johnson’s passenger died from her injuries caused by the crash. Johnson’s blood was drawn, and his blood alcohol content was determined to be .224. Johnson pleaded guilty today in U.S. District Court before Senior Judge Michael J. Davis to one count of involuntary manslaughter. A sentencing hearing will be scheduled at a later time. This case is the result of an investigation conducted by the FBI, the Red Lake Police Department, and the Minnesota State Patrol. Assistant U.S. Attorney Joseph S. Teirab is prosecuting the case.


title: McAlester Resident Pleads Guilty To Distributing Fentanyl

body_text: MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Dereak Lee Eubanks, age 33, of McAlester, Oklahoma entered a guilty plea to two counts of Distribution of Fentanyl, punishable by up to 20 years in prison and a fine of up to $1,000,000. The superseding indictment alleged that on October 20, 2022, and again on January 19, 2023, Eubanks distributed fentanyl, a Schedule II controlled substance. The charges arose from an investigation by the McAlester Resident Office of the Drug Enforcement Administration. According to court documents, Eubanks sold counterfeit Roxicodone (M30) tablets containing fentanyl to an undercover DEA special agent on two occasions in McAlester, Oklahoma. The Honorable Gerald L. Jackson, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma in Muskogee, accepted the plea and ordered the completion of a presentence investigation report. Eubanks will remain in custody of the U.S. Marshal pending sentencing. Assistant United States Attorney Zachary W. Parsons represented the United States.


title: Omaha Man Sentenced for Transporting Child Pornography

component: USAO - Nebraska

body_text: United States Attorney Steven Russell announced that Derek A. Bailey, 40, of Omaha, Nebraska, was sentenced today in federal court in Omaha for transportation of child pornography. The Honorable Brian C. Buescher sentenced Bailey to 96 months’ imprisonment. There is no parole in the federal prison system. After his release from prison, Bailey will serve 7 years of supervised release. Bailey was also ordered to pay $3,000 in restitution. In May 2019, law enforcement began investigating after receiving a Cybertip from Yahoo stating that a user had uploaded child pornography. An IP address associated with the uploads was associated with Bailey. Investigators searched Bailey’s electronic devices and observed more than 833 images and videos of child pornography on the devices. A witness reported that after the search warrant, Bailey had been looking for a MicroSD card, which the witness located. The MicroSD card was found to contain graphic files depicting Bailey in addition to child pornography. 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 Nebraska State Patrol.


title: Grand Island Man Sentenced for Firearm and Drug Trafficking Crimes

body_text: United States Attorney Steven Russell announced that William Eugen Packer, 47, of Grand Island, Nebraska, was sentenced today in federal court in Omaha, Nebraska, for possessing with intent to distribute methamphetamine and possessing a firearm during a drug trafficking crime. United States District Judge Brian C. Buescher sentenced Packer to 151 months’ imprisonment on the drug charge and a consecutive 60 months’ imprisonment on the firearm charge, for a total sentence of 211 months. There is no parole in the federal system. After his release from prison, Packer will begin a five-year term of supervised release. On April 6, 2021, officers in Norton, Kansas initiated a traffic stop. Packer, a passenger in the vehicle, immediately took off running and dropped a backpack that was found to contain 4.5 pounds of methamphetamine. Co-defendants Amanda Schnoor, who was the driver, and Clint Younger knew Packer was transporting the drugs and identified him as the person who took off running. The methamphetamine was being brought to Nebraska for them to sell and distribute. On October 7, 2021, when Packer was arrested on the federal warrant for the April 6 offense, he was found in possession of three firearms, another 1.6 pounds of methamphetamine, and $16,060 in U.S. currency that was drug proceeds and forfeited to the United States. Schnoor pleaded guilty to drug conspiracy and will be sentenced on June 7, 2023. Clint Younger pleaded guilty to drug conspiracy and will be sentenced June 29, 2023. This case was investigated by the Trident Drug Task Force, which is made up of officers from the Grand Island Police Department, Hall County Sheriff, Hastings Police Department, Adams County Sheriff, Kearney Police Department, Buffalo County Sheriff, Nebraska State Patrol, Homeland Security Investigations, and the Federal Bureau of Investigation.


title: Plattsmouth Man Sentenced for Firearm and Drug Trafficking Crimes

body_text: United States Attorney Steven Russell announced that Zachary Wichmann, 27, of Plattsmouth, Nebraska, was sentenced today in federal court in Omaha for possessing with intent to distribute fentanyl and possessing a firearm during a drug trafficking crime. United States District Judge Brian C. Buescher sentenced Wichmann to 57 months’ imprisonment on the drug charge and a consecutive 60 months’ imprisonment on the firearm charge, for a total sentence of 117 months. There is no parole in the federal system. After his release from prison, Wichmann will begin a three-year term of supervised release. On October 28, 2020, law enforcement purchased 300 fentanyl pills from Wichmann utilizing an undercover officer in an Omaha parking lot. On November 6, 2020, law enforcement received information from the U.S. Postal Inspector that Wichmann was receiving a package from Oregon. As a result of that information, they obtained a court authorized search warrant for Wichmann’s residence. On November 10, 2020, law enforcement executed the search warrant on Wichmann's residence. Officers located 1,029 fentanyl pills, two firearms, and $10,293 in U.S. Currency. Wichmann was buying drugs over the Dark Net and selling them in the Omaha metro area. The Drug Enforcement Administration administratively forfeited the $10,293. This case was investigated by the Omaha Police Department, Drug Enforcement Administration, and United States Postal Inspection Service.


title: Stilwell Resident Sentenced For Second Degree Murder In Indian Country

body_text: MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announces that Darrell James Hummingbird, age 39, of Stilwell, Oklahoma, was sentenced today to 262 months in prison for Second Degree Murder in Indian Country. The charges arose from investigations by the Stilwell Police Department, the Oklahoma State Bureau of Investigation, and the Federal Bureau of Investigation. On July 18, 2022, Hummingbird pleaded guilty to Second Degree Murder in Indian Country. According to court documents, on April 26, 2021, the victim was beaten to death in his Stilwell apartment with a metal baseball bat. Hummingbird attempted to cover up the crime, but investigators recovered incriminating DNA evidence from the murder weapon and Hummingbird’s shoes. The United States Attorney’s Office for the Eastern District of Oklahoma prosecuted this case because the defendant is a member of a federally recognized Indian tribe and the crime occurred in Indian County, within the boundaries of the Cherokee Nation Reservation and within the Eastern District of Oklahoma. The Honorable David C. Joseph, U.S. District Judge in the United States District Court for the Western District of Louisiana, sitting by designation, presided over the hearing in Muskogee. Hummingbird will remain in custody of the U.S. Marshal pending transportation to a designated United States Bureau of Prisons facility to serve a non-paroleable sentence of incarceration. Assistant United States Attorney Kevin Gross represented the United States.


title: McAlester Resident Sentenced For Sexually Abusing A Child

body_text: MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announces that Bruce Lee Montes, age 34, of McAlester, Oklahoma, was sentenced today to 25 years in prison, followed by a lifetime term of supervised release, for sexually abusing a minor in Indian Country. The charges arose from investigations by the McAlester Police Department and the Federal Bureau of Investigation. On May 5, 2022, Montes pleaded guilty to one count of Sexual Abuse in Indian Country. At the plea hearing, the defendant admitted that in 2013 he engaged in a sexual act with a child under the age of twelve. "The victim in this case should have never been made to suffer such torment at the hands of Bruce Montes,” said FBI Oklahoma City Special Agent in Charge Edward J. Gray. “His 25-year prison sentence is a testament to the dedication of the FBI and our law enforcement partners to bringing child predators to justice.” “The defendant violated the person and the trust of a child,” said United States Attorney Christopher J. Wilson. “The twenty-five-year prison sentence imposed by the Court holds the defendant accountable for the unspeakable physical and emotional trauma he inflicted on this innocent victim.” The United States Attorney’s Office for the Eastern District of Oklahoma prosecuted this case because the defendant is a member of a federally recognized Indian tribe and the crime occurred in Pittsburg County, within the boundaries of the Choctaw Nation Reservation and the Eastern District of Oklahoma. The Honorable David C. Joseph, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, sitting by assignment, presided over the hearing in Muskogee, Oklahoma. Montes will remain in custody of the U.S. Marshal pending transportation to a designated United States Bureau of Prisons facility to serve a non-paroleable sentence of incarceration. Assistant United States Attorney Caila M. Cleary represented the United States.


component: USAO - Michigan, Eastern

body_text: Detroit Medical Center, Vanguard Health Systems, and Tenet Healthcare Corporation Agree to Pay Over $29 Million to Settle False Claims Act Allegations WASHINGTON – VHS of Michigan Inc., doing business as, The Detroit Medical Center Inc. (DMC), Vanguard Health Systems Inc. (Vanguard), and Tenet Healthcare Corporation (Tenet), has agreed to pay $29,744,065 to the government to resolve allegations that they violated the False Claims Act by providing kickbacks to certain referring physicians. DMC operates hospitals in and around Detroit, including Sinai Grace Hospital and Harper University Hospital. In October 2013, Tenet acquired Vanguard owned-and-operated hospitals and outpatient facilities, including DMC. The settlement announced today resolves the government’s allegations that DMC, Vanguard, and Tenet caused the submission of false or fraudulent claims to Medicare. Specifically, the government alleged that from Jan. 1, 2014, through Dec. 31, 2017, Sinai Grace Hospital and Harper University Hospital provided the services of DMC-employed mid-level practitioners to 13 physicians at no cost or below fair market value in violation of the Anti-Kickback Statute (AKS). The government further alleged that the physicians were selected because of their large number of patient referrals to Sinai Grace Hospital and Harper University Hospital and that the purpose of these arrangements was to induce the physicians to refer additional Medicare patients to DMC facilities. The AKS prohibits offering, paying, soliciting, or receiving remuneration to induce referrals of items or services covered by Medicare and other federally funded programs. The statute is intended to ensure that medical providers’ judgments are not compromised by improper financial incentives and are instead based on the best interests of their patients. “The Justice Department will pursue improper arrangements that have the potential to compromise physicians’ medical judgment,” said Deputy Assistant Attorney General Michael D. Granston of the Justice Department’s Civil Division. “Physicians should evaluate where to send patients for medical services based on the quality of care the patients will receive, not the financial benefits that the physicians will reap.” “This outcome makes clear that when doctors refer patients for care at hospitals, they must do so based on their own professional judgment and the medical needs of their patients, not personal financial benefit,” said U.S. Attorney Dawn N. Ison for the Eastern District of Michigan. “Our office stands ready to scrutinize even the most complicated financial arrangements and to pursue justice wherever appropriate.” “Paying and accepting kickbacks encourages providers to put personal financial gain before the needs of their patients,” said Special Agent in Charge Mario Pinto of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “As this case demonstrates, those who enter into such improper arrangements and put the safety of their patients at risk will be held accountable.” The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by Dr. Jay Meythaler, a former employee of Wayne State University Medical School, which is affiliated with DMC. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. In this case, Dr. Meythaler will receive $5,205,211.37 as part of the settlement. The qui tam case is captioned U.S. ex rel. Meythaler v. Detroit Medical Center, Inc., et al. , No. 5:15-cv-12333 (E.D. Mich.). The resolution obtained in this matter was the result of a coordinated effort between the Civil Division’s, Commercial Litigation Branch, Fraud Section, and the U.S. Attorney’s Office for the Eastern District of Michigan, with assistance from the HHS-OIG and the FBI. 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 the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477). Trial Attorney Kristen Murphy of the Civil Division and Assistant U.S. Attorney Anthony Gentner for the Eastern District of Michigan handled the case. The claims resolved by the settlement are allegations only and there has been no determination of liability. ###


title: Court Sentences Mobile Man to Five Years Imprisonment for Trafficking Fentanyl

component: USAO - Alabama, Southern

body_text: On May 24, 2023, Senior United States District Court Judge Callie V. Granade sentenced Lavarance D. Nettles to 60 months imprisonment for conspiracy to possess with the intent to distribute fentanyl. Nettles had previously plead guilty to the offense. Documents filed with the Court in connection with Nettles’s guilty plea established that on September 3, 2020, the Mobile Police Department Tactical Intelligence Unit seized eighty-four pills from the defendant’s vehicle. The pills were tested and found to contain fentanyl. Officers also executed a search warrant at the defendant’s apartment in Mobile and found hundreds more fentanyl pills. Officers also located and seized $64,990.00 in cash at the apartment. The money was previously forfeited to the United States as drug proceeds in a separate civil forfeiture action filed in federal court. United States Attorney Sean P. Costello praised the outstanding work of the federal and local law enforcement agencies in bringing this fentanyl trafficker to justice and forfeiting the illegal drug proceeds. Costello stated that the federal asset forfeiture statutes present a powerful tool in depriving criminals of their ill-gotten gains. The statutes also allow most of the forfeited assets to be used to fund law enforcement operations. 2 The case was investigated by the Drug Enforcement Administration and the Mobile Police Department. The case was prosecuted by Assistant United States Attorney George F. May.


title: New York Man Sentenced to 12 Months and One Day for Failing to Register as a Sex Offender

body_text: United States Attorney Sean P. Costello of the Southern District of Alabama announced that United States District Judge Kristi DuBose sentenced defendant Jose Fulwood, 26, to 12 months and one day in prison for Failure to Register as a Sex Offender. Fulwood entered a guilty plea to this offense on February 9, 2023. According to court documents filed in connection with his guilty plea, Fulwood was previously convicted of Attempted Rape Second Degree in the County Court of Chenango County, New York. The conviction occurred on September 22, 2017. In January 2022, the United States Marshals Service received a tip that Fulwood was living and working in Mobile, Alabama. Fulwood never registered as a sex offender in the state of Alabama. Fulwood had a prior conviction for failing to register as a sex offender in Virginia. Judge DuBose imposed a 12 month and one day sentence of incarceration and a 5-year term of supervised release upon his discharge from prison. Judge DuBose ordered that Fulwood pay $100 in special assessments. Fulwood will be required to register as a sex offender when he is released from prison. The United States Marshals Service investigated this case. Assistant United States Attorney Kacey Chappelear prosecuted the case. This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit https://www.justice.gov/psc/publications-resources.


title: Thomasville Man Sentenced to Eight Years for Child Pornography Offense

body_text: Dennis Elmo Haskew, 42, of Thomasville, has been sentenced to eight years in prison by United States District Judge Kristi DuBose for distribution of child pornography. Haskew entered a guilty plea to this offense on January 26, 2023. According to court documents filed in connection with his guilty plea, Haskew created multiple accounts on the social media application SnapChat and used those accounts to send images of child sexual abuse material to other users. A review of Haskew’s various electronic devices revealed that he possessed 793 still images and 6 videos of child sexual abuse material. Judge DuBose imposed an 8-year sentence of incarceration and a 10-year term of supervised release upon his discharge from prison. Judge DuBose ordered that Haskew pay $5,100 in special assessments and $15,000 in restitution to the victims of his crime. Haskew will be required to register as a sex offender when he is released from prison and he is to have no contact with minor children. The Federal Bureau of Investigation and the Jackson Police Department investigated this case. Assistant United States Attorney Kacey Chappelear prosecuted the case. This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit https://www.justice.gov/psc/publications-resources.


title: Providence Man Admits to Possessing Cocaine with Intent to Distribute

body_text: PROVIDENCE – A Providence man is scheduled to be sentenced in August after admitting to a federal court judge that, in November 2021, he took possession of a package that contained more than a half kilogram of cocaine that was mailed from Puerto Rico and was addressed for delivery to a Providence residence, announced United States Attorney Zachary A. Cunha. Jose Fuentes, 32, pleaded guilty on May 23, 2023, to a charge of possession of cocaine with the intent to distribute. According to information presented to the court, in November of 2021, as part of a narcotics trafficking investigation, the United States Postal Inspection Service and the FBI Rhode Island Safe Streets Task Force identified a suspicious package that had been sent through the mail from Puerto Rico to Providence. During the investigation, a Rhode Island State Police canine trained to alert law enforcement to the presence of narcotics was brought in to check the package and alerted its handler with a positive indication that the package contained narcotics. A court-authorized search of the package and subsequent testing revealed that the package contained 560 grams (.56 of a kilogram) of cocaine, packed inside a Lego box. Court records show that someone, using a cell phone associated with Fuentes, made at least two calls to the post office seeking information about the location of the most recently shipped package. The caller was told that he would have to claim the package in-person. When Fuentes arrived at the post office and took possession of the package on November 4, 2021, he was arrested and the cocaine was seized by law enforcement. Fuentes is scheduled to be sentenced on August 29, 2023. The defendant’s sentence will be determined by a federal judge after consideration of the U.S. Sentencing Guidelines and other statutory factors. The case is being prosecuted by Assistant U.S. Attorney Stacey A. Erickson. ###


title: Co-Conspirator in Middle Georgia Criminal Meth Organization Sentenced

body_text: MACON, Ga. – Two co-conspirators involved in an armed drug trafficking organization responsible for distributing 16 kilograms of methamphetamine in Middle Georgia had court hearings recently. Tamara Hall, 40, of Warner Robins, Georgia, was sentenced to serve 210 months in prison to be followed by three years of supervised release after she previously pleaded guilty to conspiracy to possess with intent to distribute methamphetamine on April 19, 2022. Benjamin Luopa, 48, of Warner Robins, pleaded guilty to two counts of use of a communication facility. Luopa faces a maximum sentence of four years in prison to be followed by one year of supervised release and a $250,000 fine for each count. The hearings occurred before U.S. District Judge Tilman E. “Tripp” Self, III on May 25. Sentencing for Luopa is scheduled for Sept.7. There is no parole in the federal system. “Tamara Hall played a significant role in co-conspirator Ontarrio Veal’s armed criminal organization pushing many kilograms of methamphetamine into the Warner Robins area,” said U.S. Attorney Peter D. Leary. “With the rise of fentanyl, it’s no secret that street drugs are even more dangerous, plus the other crimes that develop around this level of armed drug trafficking all contribute to community erosion. Thanks to the effort of the Organized Crime Drug Enforcement Task Force, a significant supply of methamphetamine is cut off and the community is safer for it.” “This investigation deals a fatal blow to a once-thriving ‘meth’ ring,” said Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division. “The citizens of Warner Robins and elsewhere can rest assured that their communities are much safer today thanks to the outstanding case work by DEA and our local law enforcement partners.” “ATF considers the Organized Crime Drug Enforcement Task Force a critical partner in its long-term mission of removing armed gangs, criminals and narcotics traffickers from our communities,” said Assistant Special Agent in Charge Beau Kolodka, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Atlanta Field Division. “The Warner Robins Police Department is honored to have worked in conjunction with our federal partners through the Organized Crime Drug Enforcement Task Force which resulted in the outcome of this case,” said Assistant Chief Wayne Fisher, Warner Robins Police Department. “It is through such local, state and federal partnerships that impacts such as these can be realized. It was with great work and effort from the men and women of this task force which resulted in these arrests that will have an immeasurable impact for the good of our shared communities.” According to documents and other evidence admitted into court, Drug Enforcement Administration (DEA) agents and Warner Robins Police Department officers investigated Ontarrio Veal’s Warner Robins-based drug trafficking organization from Jan. to June 2020. Law enforcement obtained court orders to intercept the phone calls and text messages from Veal’s and Hall’s cell phones. Agents learned that Veal was a multi-kilogram methamphetamine dealer and surveilled Veal, Hall and various co-defendants conducting methamphetamine transactions and traveling to Atlanta to purchase large quantities of methamphetamine. Veal was taken into custody in June 2020, on a return trip from Atlanta in possession of three kilograms of methamphetamine and a Glock .40 caliber semi-automatic pistol with a 50-round drum magazine. Agents executed search warrants at various locations in Middle Georgia, seizing multiple firearms and ammunition, methamphetamine and more than $100,000 cash. Hall is being held responsible for distributing 4.5 kilograms of methamphetamine. The organization is responsible for distributing more than 16 kilograms of methamphetamine. The following co-defendants have pleaded guilty and/or been sentenced: Ontarrio Veal aka “Torrie,” 33, of Warner Robins, pleaded guilty to conspiracy to possess with intent to distribute methamphetamine on Nov. 15, 2022, and was sentenced to serve 420 months in prison to be followed by four years of supervised release on April 4; Matthew Kay, 36, of Warner Robins, pleaded guilty to conspiracy to possess with intent to distribute methamphetamine on Sept. 6, 2022, and was sentenced to serve 235 months in prison to be followed by four years of supervised release to run consecutively to three sentences he is currently serving in Houston County, Georgia, on Jan. 19.; Reginald Lowe, 41, of Warner Robins, pleaded guilty to conspiracy to possess with intent to distribute methamphetamine on Aug. 30, 2022, and was sentenced to serve 240 months in prison to be followed by four years of supervised release to run consecutively to a state sentence he is currently serving in Houston County, Georgia, for an aggravated assault conviction on Dec. 6, 2022; Milton Simmons aka Mann, 41, of Macon, pleaded guilty to possession with intent to distribute methamphetamine on Aug. 1, 2022, and was sentenced to serve 120 months on Jan. 10; Donna Ussery, 31, of Warner Robins, pleaded guilty to conspiracy to possess with intent to distribute methamphetamine on April 19, 2022, and was sentenced to serve 100 months in prison on Oct. 4, 2022; Parsa Ervin, 45, of Warner Robins, pleaded guilty to two counts of use of a communication facility to conspire to possess with intent to distribute methamphetamine on Aug. 30, 2022, and was sentenced to serve 57 months in prison to be followed by one year of supervised release to run consecutively to any term of imprisonment that may be imposed in three separate cases in Houston County on Jan. 19.; Marquell Gaines aka Paris, 38, of Warner Robins, pleaded guilty to use of a communication facility to conspire to possess with intent to distribute methamphetamine on July 19, 2022, and was sentenced to serve 48 months in prison on Oct. 11, 2022; Victor Mendoza, 34, of Warner Robins, pleaded guilty to conspiracy to possess with intent to drugs on Dec. 1, 2022, via a global plea agreement in the Southern District of Alabama and sentencing is scheduled for June 2; and Eddie Linkhorn, 42, of Warner Robins, pleaded guilty to two counts of use of a communication facility to conspire to possess with intent to distribute methamphetamine on Oct. 20, 2022, and sentencing is scheduled for June 6. This effort is part of an Organized Crime Drug Enforcement Task Force (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF . This case was investigated by Drug Enforcement Administration (DEA), the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Warner Robins Police Department. The case was prosecuted by Deputy Criminal Chief Will Keyes.


title: New Orleans Steamboat Company Charged for Discharging Excess Ballast Material into Industrial Canal

component: USAO - Louisiana, Eastern

body_text: NEW ORLEANS – United States Attorney Duane A. Evans announced that NEW ORLEANS STEAMBOAT COMPANY (“NOSC”) , was charged on May 26, 2023 with violating the Clean Water Act (“CWA”) in connection with a discharge of excess ballast material into the Industrial Canal in New Orleans in 2019. According to the bill of information, NOSC negligently discharged, without the knowledge of the Board of Directors, and caused to be discharged a quantity of a substance into a navigable water of the United States, upon adjoining shorelines, and affecting the United States’ natural resources. The discharge took place on or around February 12, 2019, in the Inner Harbor Navigational Canal (“IHNC”), more commonly known as the Industrial Canal. An employee of NOSC , Matt Dow, was charged with a misdemeanor violation of the CWA, punishable by up to one year in jail and $100,000 fine. If convicted, NOSC faces a possible term of probation and a fine of up to $50,000 or twice the gross gain to the defendant or twice the gross loss to any victim as well as a mandatory $100 special assessment fee. A bill of information is merely a charge, and the guilt of the defendant must be proven beyond a reasonable doubt. The case was investigated by the Environmental Protection Agency’s Criminal Investigation Division, and the Department of Transportation’s Office of Inspector General. Assistant U.S. Attorney Carter K.D. Guice, Jr. of the General Crimes Unit is in charge of the prosecution.