title: Pontiac Man Involved in Violent Robberies Appears in Federal Court

body_text: DETROIT – A Pontiac man was indicted by a federal grand jury on charges of Interference with Commerce by Robbery, Use of a Firearm in Relation to a Crime of Violence and being a Felon in Possession of a Firearm relating to an armed robbery and attempted armed robbery which occurred in the city of Pontiac, United States Attorney Dawn N. Ison announced today. Ison was joined in the announcement by Special Agent in Charge James Deir of the ATF’s Detroit Division and Sheriff Michael Bouchard of the Oakland County Sheriff’s Office. Christopher Bey, 48, appeared in federal court this afternoon and was arraigned on the charges before United States Magistrate Judge Kimberly G. Altman. “Removing violent offenders from our community is one of my office’s top priorities,” stated U.S. Attorney Dawn Ison. “We will not stop being laser focused on aggressively prosecuting dangerous individuals who persist in terrorizing our citizens.” “Use an illegal firearm to rob 2 stores and discharge that firearm, and the ATF will exhaust every resource to identify you and to hold you accountable for gun violence. The message is simple: Actions have consequences. If you use an illegal firearm to commit gun violence in our community…. pack a lunch. You are going to be unavailable for an extended period of time,” said ATF Special Agent in Charge James Deir. “We appreciate the teamwork with our federal partners and the U.S. Attorney’s Office. If you are a violent criminal, we will work tirelessly to hold you accountable and do everything in our power to keep our community safe,” said Sheriff Bouchard. “Working together magnifies resources and increases the opportunity for successful prosecution.” According to the indictment, Bey is alleged to have robbed a Boost Mobile store in the city of Pontiac on February 4, 2023. After entering the store, Bey allegedly brandished a firearm and demanded money from the store employee. During the robbery, Bey fired the weapon twice. The indictment also alleges that on March 24, 2023, Bey attempted to rob a Dollar General Store in the city of Pontiac. Bey handed a store employee a note while pointing a gun at him. Bey then ordered the employee to the back of the store and directed him to handcuff himself. Bey was also charged with felon in possession of a firearm. The indictment alleges that, during the robbery investigations, law enforcement observed Bey’s social media posts of himself holding a firearm with his face obscured by a ski mask. Law enforcement was able to use other images from his social media accounts to determine Bey’s identity. On July 26, 2023, the Pontiac Gun Violence Task Force (GVTF), assisted by, Oakland County Sheriff’s Office K9 Unit, Customs Border Protection - Aviation Enforcement, and the Detroit Police Department, arrested Christopher Lee Bey. Bey has been in custody since that arrest. The GVTF was established by the ATF and the Oakland County Sheriff’s Office. The GVTF is tasked with investigating the unlawful possession of firearms and the use of firearms to commit violent crimes within Pontiac, Oakland County, and the Eastern District of Michigan. An indictment is only a formal charging document and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt. This case is being prosecuted by Assistant United States Attorney Nicholas McIntyre and Matthew Roth.


title: U.S. Attorney’s Office To Participate In Community Events During National Night Out

component: USAO - Pennsylvania, Middle

body_text: SCRANTON - The U.S. Attorney’s Office for the Middle District of Pennsylvania announced that U.S. Attorney Gerard M. Karam and Assistant U.S. Attorney’s will join community organizers, neighbors, and law enforcement partners to participate in National Night Out events on August 1, 2023. During this year’s National Night Out, members of the United States Attorney’s Office will attend community events at the following locations: Scranton Police Department at Scranton High School from 6:00 p.m. to 9:00 p.m.; Harrisburg Bureau of Police at City Island in Harrisburg from 5:30 p.m. to 8:00 p.m.; Lebanon City Police Department at the Salvation Army building on Guilford Street in Lebanon from 6:00 p.m. to 8:00 p.m.; Derry Township Police Department on the 1 st block of West Caracas Avenue in Hershey from 6:00 p.m. to 8:00 p.m.; Cornwall Borough Police Department at the park across from the Cornwall Elementary School on SR 419 from 6:00 p.m. to 8:00 p.m.; and Lower Allen Township at the Christian Life Assembly Church, Camp Hill from 6:00 p.m. to 8:00 p.m. “National Night Out is an important and effective way to bridge the gap between neighbors and their police departments in a positive and informal setting,” said U.S. Attorney Gerard M. Karam. “We are pleased to join with our local law enforcement partners and the communities we serve to promote this important program.” National Night Out is an annual community-building campaign that promotes partnerships and camaraderie between law enforcement and the communities they serve to make our neighborhoods safer places to live. Millions take part in National Night Out across thousands of communities throughout the country on the first Tuesday of August in most areas of the country. National Night Out was established in 1984 with funding from the Bureau of Justice Assistance of the U.S. Department of Justice. The program is administered by the National Association of Town Watch, a nationwide non-profit organization. Coordinated by local law enforcement and trained volunteers, National Night Out provides a great opportunity to bring police and neighbors together under positive circumstances. Neighborhoods host block parties, cookouts, festivals, parades, safety demonstrations, seminars, youth events, visits from emergency personnel, and more. National Night Out sends a message that neighbors are united and working together to keep their communities and each other safe. For more information, visit https://natw.org/ . # # #


title: Monroe County Man Charged With Committing Over $2.2 Million In Covid-19 Pandemic Fraud

body_text: SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Brian J. Albelli, age 45, of Stroudsburg, Pennsylvania, and formerly of Deerfield Beach, Florida, was charged in a criminal information on July 27, 2023, with wire fraud and money laundering. According to United States Attorney Gerard M. Karam, the information alleges that Albelli owned and operated multiple corporate entities in Pennsylvania and Florida. Albelli allegedly filed approximately 20 fraudulent applications for pandemic stimulus funds, including under the Payment Protection Program (PPP), and for Economic Injury and Disaster Loans (EIDLs). The applications allegedly submitted by Albelli were filed on behalf of corporate entities that did not, in fact, have actual business operations, and that bore inflated revenues and employee headcount, and nonexistent gross receipts and costs of goods sold. The applications also included a forged IRS income tax return, and forged federal employment tax documents. Albelli allegedly obtained in excess of approximately $2,200,000 in PPP and EIDL funds, for himself and his family members, through filing the fraudulent applications. Instead of using the funds on business expenses, Albelli allegedly used them on purchasing boats and automobiles, real estate, retail shopping, and other personal expenses. Albelli also is charged with committing money laundering by concealing the fraudulent proceeds of his crimes. The PPP and EIDL programs, both funded by the March 2020 CARES Act, were designed to help small businesses facing financial difficulties during the COVID-19 pandemic. PPP funds were offered in forgivable loans, provided that certain criteria are met, including use of the funds for employee payroll, mortgage interest, lease, and utilities expenses. EIDL funds are offered in low-interest rate loans, designated for specific business expenses, such as fixed debts, payroll, and business obligation. On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus. The case was investigated by the Internal Revenue Service’s Criminal Investigations. Assistant U.S. Attorneys Phillip J. Caraballo and Sean Camoni are prosecuting the case. The maximum penalties under federal law for both charges are 20 years of imprisonment, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines. Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court. # # #


title: Worcester Man Sentenced to More Than Six Years in Prison for Cocaine Distribution and Unlawful Possession of Firearms

component: USAO - Massachusetts

body_text: BOSTON – A Worcester man has been sentenced in federal court in Springfield for drug and firearm offenses. Rodney Hall, 38, was sentenced on July 29, 2023 by U.S. District Court Judge Mark G. Mastroianni to 75 months in prison and four years of supervised release. On Feb. 2, 2023, Hall pleaded guilty to one count of possession with intent to distribute more than 500 grams of cocaine and one count of being a felon in possession of a firearm. In September 2020, Hall was observed arriving in an SUV at a location in Worcester, exiting the SUV and entering the backseat of a Toyota Camry. The Camry then proceeded to drive around the block for approximately one minute and stopped at a corner where Hall exited the vehicle – an interaction consistent with conducting a drug deal. Hall was then approached by law enforcement and found to be in possession of $1,500 in cash. Approximately 27.9 grams of crack cocaine was obtained from the individual to whom Hall sold the cocaine. During a subsequent search of Hall’s apartment, approximately 634 grams of crack cocaine, a loaded .25 caliber Beretta handgun, a homemade “ghost gun” pistol and ammunition, plastic baggies, $7,000 in cash and a digital scale were recovered. Hall is prohibited from possessing a firearm due to his criminal history, which includes previous convictions for possession of a large capacity weapon and trafficking cocaine. Acting United States Attorney Joshua S. Levy; James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; and John E. Mawn, Jr., Interim Colonel of the Massachusetts State Police made the announcement. Assistant U.S. Attorneys John T. Mulcahy and Evan D. Panich of the Criminal Division 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. In May 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: Luzerne County Man Charged With Committing $350,000 In Covid-19 Pandemic Fraud

body_text: SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Daniel Wasielewski, age 58, of Wilkes-Barre, Pennsylvania, was charged on July 28, 2023, in a criminal information with wire fraud. According to United States Attorney Gerard M. Karam, the information alleges that Wasielewski filed and assisted others in filing fraudulent applications for pandemic stimulus funds, including under the Payment Protection Program (PPP), for Economic Injury and Disaster Loans (EIDLs), and for Pandemic Unemployment Assistance (PUA) benefits. The PPP and EIDL applications allegedly submitted by Wasielewski and his confederates were filed on behalf of corporate entities that did not, in fact, have actual business operations, and that bore false revenues and other business information. The applications also included forged IRS tax documents. Wasielewski allegedly received approximately $350,000 in PPP, EIDL, PUA, and other fraudulently-obtained funds, for himself and others. Instead of using the funds on business expenses, Wasielewski and others allegedly used them to purchase cryptocurrency and on other personal expenses. The PPP and EIDL programs, both funded by the March 2020 CARES Act, were designed to help small businesses facing financial difficulties during the COVID-19 pandemic. PPP funds were offered in forgivable loans, provided that certain criteria are met, including use of the funds for employee payroll, mortgage interest, lease, and utilities expenses. EIDL funds are offered in low-interest rate loans, designated for specific business expenses, such as fixed debts, payroll, and business obligation. The PUA program was created by the CARES Act, as part of the United States government’s efforts to mitigate the impact of the COVID-19 pandemic on the public’s health and economic well-being. The PUA program was designed to provide unemployment benefits to individuals not eligible for regular unemployment compensation or extended unemployment benefits. On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus. The case was investigated by the United States Postal Inspection Service. Assistant U.S. Attorneys Phillip J. Caraballo and Sean Camoni are prosecuting the case. The maximum penalties under federal law for the charge of wire fraud is 20 years of imprisonment, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines. Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court. # # #


title: Jury Convicts local man for sex trafficking 15-year-old

component: USAO - Texas, Southern

body_text: HOUSTON – A 31-year-old man who resided in Houston has been found guilty for trafficking a minor female for commercial sex using force, fraud or coercion, announced U.S. Attorney Alamdar S. Hamdani. Jury deliberated for approximately five hours before returning a guilty verdict against Giovanny Xavier Limon aka Ace or Ace One following a three-day trial. Limon trafficked a 15-year-old minor female for commercial sex during May and June 2022. The girl was forced to engage in commercial sex with strangers on numerous occasions and had to turn over all proceeds to Limon and his associates. Limon, twice her age, forced her to use meth and photographed her in lingerie he and others had provided. Those photographs, among others, were used to advertise the minor on the internet. The jury saw evidence of how Limon displayed his moniker in the photos used in the commercial sex ads leaving little doubt who was controlling the minor’s actions. The jury also heard how Limon harbored the minor in several hotels as well as residences his family members controlled. She testified at trial and described how Limon often carried a knife, supplied her with drugs, tattooed her arm, intimidated her and destroyed her will to live. “Meth, a gun, and intimidation. Those were the tools Limon used to exploit and traffic a young girl for his own financial benefit– a child who then lost her will for life itself,” said Hamdani. “This conviction ensures he can never do this to another child and sends a message to anyone who wants to use our children for commercial sex – we will find you and bring you to justice.” The defense attempted to convince the jury that the girl was acting alone and Limon was just a scapegoat so she would not get in trouble at home when she returned. They did not believe those claims and found Limon guilty. U.S. District Judge David Hittner presided over trial and set sentencing for Oct. 26. At that time, Limon faces up to life in federal prison. He has been and will remain in custody pending that hearing. The Human Trafficking Rescue Alliance (HTRA) conducted the investigation. Assistant U.S. Attorneys Sherri L. Zack and Kimberly Ann Leo prosecuted the case. HTRA law enforcement includes members of the Houston Police Department, FBI, Homeland Security Investigations, Texas Attorney General’s Office, IRS Criminal Investigation, Department of Labor (DOL), DOL – Wage and Hour Division, Department of State, Texas Alcoholic and Beverage Commission, Texas Department of Public Safety, Department of Homeland Security – Office of Inspector General (OIG), Social Security Administration – OIG and Sheriff’s Offices in Harris and Montgomery counties in coordination with District Attorney’s offices in Harris, Montgomery and Fort Bend Counties. Established in 2004, the United States Attorney’s office in Houston formed HTRA to combine resources with federal, state and local enforcement agencies and prosecutors, as well as non-governmental service organizations to target human traffickers while providing necessary services to those that the traffickers victimized. Since its inception, HTRA has been recognized as both a national and international model in identifying and assisting victims of human trafficking and prosecuting those engaged in trafficking offenses.


title: United States Attorney’s Office to Participate in Community Events During National Night Out

body_text: BOSTON – The U.S. Attorney’s Office for the District of Massachusetts will join community organizers, neighbors and law enforcement partners to participate in National Night Out events on July 31, 2023 and Aug. 1, 2023. Staff members of the U.S. Attorney’s Office will be represented across the state, including Acting U.S. Attorney Joshua S. Levy who will attend community events in Boston. “Our law enforcement partners are vital to our mission of keeping Massachusetts safe. As they serve our communities, it is important that they are seen and known, too,” said Acting United States Attorney Joshua S. Levy. “National Night Out is an important initiative to build trust and relationships between law enforcement officers and the communities they serve. We look forward to joining our partners in Boston, and across the state.” National Night Out is an annual community-building campaign that promotes partnerships and camaraderie between law enforcement and the communities they serve to make our neighborhoods safer places to live. Millions take part in National Night Out across thousands of communities throughout the country on the first Tuesday of August in most areas of the country. National Night Out was established in 1984 with funding from the Bureau of Justice Assistance of the U.S. Department of Justice. The program is administered by the National Association of Town Watch, a nationwide non-profit organization. Coordinated by local law enforcement and trained volunteers, National Night Out provides an opportunity to bring police and neighbors together under positive circumstances. Neighborhoods host block parties, cookouts, festivals, parades, safety demonstrations, seminars, youth events, visits from emergency personnel and more. National Night Out sends a message that neighbors are united and working together to keep their communities and each other safe. For more information, visit https://natw.org/ .


title: Justice Department Sues Alabama Department of Transportation for Disability Discrimination in Hiring

component: Civil Rights Division

body_text: The Justice Department today filed a lawsuit against the Alabama Department of Transportation (ALDOT) for violating Title I of the Americans with Disabilities Act (ADA). The lawsuit, filed in the U.S. District Court for the Northern District of Alabama, alleges that ALDOT refused to hire an individual because of his physical disability that restricts his ability to lift heavy objects. According to court documents, the individual worked successfully as a Transportation Maintenance Technician (TMT) at ALDOT for many years. He was injured on the job, resulting in a disability that limits his ability to lift heavy objects. Even with his disability, he continued to work successfully with accommodations at ALDOT for several years. However, the United States alleges, when the individual reapplied to be a TMT after a brief retirement, ALDOT refused to re-hire him because of his disability and instead hired less experienced applicants. “Qualified people with disabilities must have an equal opportunity to participate in the workforce,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This lawsuit reflects the Justice Department’s ongoing commitment to protect the employment rights of people with disabilities under the ADA.” Title I of the ADA prohibits employers from discriminating against qualified individuals on the basis of disability. This includes refusing to hire qualified applicants because of their disability, or using selection criteria that screen out qualified applicants that are not job-related or consistent with business necessity. This case is being handled by the department’s Civil Rights Division and the U.S. Attorney’s Office for the Northern District of Alabama based on a referral from the Equal Employment Opportunity Commission. For more information on the ADA, please call the department’s toll-free ADA Information Line at 800-514-0301 (TTY 1-833-610-1264) or visit www.ada.gov . For more information on the Civil Rights Division, please visit www.justice.gov/crt . Individuals who believe they may have been victims of discrimination may file a complaint at www.civilrights.justice.gov . Complaint


title: Convicted Felon Sentenced To 8 Years In Federal Prison For Firearm Offense

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

body_text: PENSACOLA, FLORIDA – Foster Darnell Johnson, Sr., 37, of Pensacola, Florida, was sentenced to eight years in federal prison for possession of a firearm by a convicted felon and for possession with intent to distribute crack cocaine, hydrocodone, and large volumes of marijuana. The sentence was announced by Jason R. Coody, United States Attorney for the Northern District of Florida. “Removing firearms from the hands of violent felons, here an intoxicated drug trafficker who had twice been convicted of domestic battery, undoubtedly makes our community safer,” said U.S. Attorney Coody. “The deputies of the Escambia County Sheriff’s Office are to be commended for their swift response to this volatile situation. With their dedicated efforts, we remain committed to fighting violent crime and holding criminals accountable for their conduct.” On August 13, 2022, in the early morning hours, Johnson returned home with his wife from an evening of drinking. A domestic dispute ensued, and Johnson fired a pistol down the hallway of the second story of the residence where three minor children had been sleeping. Johnson then entered one of the minor children’s bedrooms with the pistol, at which point his wife dialed 911, in fear of her and her children’s lives. Escambia County Sheriff’s Office deputies responded to the residence and secured a search warrant. During the search of the residence, law enforcement discovered two shotguns, one of which was an AR-style shotgun, co-located with over eighteen pounds of marijuana, crack cocaine, hydrocodone, digital scales, and Ziploc baggies, in Johnson’s bedroom. Deputies also located the pistol used during the domestic violence incident, the discharged casing, and a significant volume of ammunition. Johnson was a prior convicted felon, had two previous convictions of battery domestic violence, and was prohibited from possessing firearms. Johnson’s imprisonment will be followed by 3-years of supervised release during which he will be required to participate in anger management and domestic violence counseling. This conviction was the result of an investigation conducted by the Escambia County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Jennifer Callahan prosecuted the case. The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access available public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html .


title: New Jersey Tax Preparer Arrested for Fraudulently Seeking over $124 Million in COVID-19 Employment Tax Credits

component: USAO - New Jersey

body_text: NEWARK N.J. – A New Jersey tax preparer was arrested today for fraudulently seeking more than $124 million from the IRS by filing over 1,000 false tax forms claiming COVID-19-related employment tax credits, U.S. Attorney Philip R. Sellinger and Acting Deputy Assistant Attorney General Stuart M. Goldberg announced today. Leon Haynes, 49, of Teaneck, New Jersey, is charged by complaint with eight counts of aiding and assisting the filing of false tax returns and one count of mail fraud. He is scheduled to have his initial appearances this afternoon before U.S. Magistrate Judge Leda Dunn Wettre in Newark federal court. “While our country was fighting the spread of the virus and its profound economic impact, Haynes allegedly scammed the system in a massive scheme to line his own pockets,” U.S. Attorney Philip R. Sellinger said. “As described in the complaint, Haynes abused his position as a tax preparer to steal millions of dollars by submitting over 1,000 false applications for funds set aside to help legitimately struggling businesses. My office and our partners will continue to find and prosecute fraudsters who exploited the pandemic for personal gain.” “Today’s arrest demonstrates IRS Criminal Investigation and our law enforcement partners commitment to holding accountable those who exploited the pandemic for personal gain,” Tammy Tomlins, Special Agent in Charge of the Newark Field Office, said. “We are committed to rooting out pandemic-related fraud and holding accountable anyone seeking to profit from the public health emergency.” “This arrest demonstrates our commitment to pursue those who attempt to defraud pandemic-related assistance programs through SSN misuse,” Gail S. Ennis, Inspector General for the Social Security Administration, said. “These programs provided aid to businesses and employees during a crisis; we will continue to collaborate with other law enforcement agencies to investigate those who allegedly misused them for personal and selfish gain,” said “I thank the IRS – Criminal Investigation, and the U.S. Postal Service for their investigative efforts and the U.S. Attorney’s Office for working this case.” “As many of us suffered through the pandemic, Leon Haynes found a way to line his pockets at our expense,” Christopher Nielsen, Postal Inspector in Charge of the Philadelphia Division, said. “He allegedly filed over $100 million worth of fraudulent tax returns, stealing money from programs designed to support suffering businesses. Working with our colleagues at the IRS Criminal Investigative Division and the United States Attorney’s Office, we have begun the process of holding him accountable for his frauds.” According to documents filed in this case and statements made in court: In response to the COVID-19 pandemic and its economic impact, Congress authorized an employee retention tax credit (ERC) that a small business could use to reduce the employment tax it owed to the IRS. To qualify, the business had to have been in operation in 2020 and to have experienced at least a partial suspension of its operations because of a government order related to COVID-19 (for example, an order limiting commerce, group meetings or travel) or a significant decline in profits. The credit was an amount equal to a set percentage of the wages that the business paid to its employees during the relevant time period, subject to a maximum amount. Congress also authorized the IRS to give a credit against employment taxes to reimburse businesses for the wages paid to employees who were on sick or family leave and could not work because of COVID-19. This “paid sick and family leave credit” was equal to the wages the business paid the employees during the sick or family leave, also subject to a maximum amount. From November 2020 to May 2023, Haynes, acting as a tax preparer, repeatedly exploited these programs by preparing and submitting 1,387 false forms to the IRS claiming COVID-related tax credits on behalf of himself and clients. Haynes falsely told his clients that the government was giving out COVID-relief money for businesses and that they were eligible for the money simply because they had a business. Without consulting with his clients, Haynes then submitted forms to the IRS on behalf of their businesses that grossly overstated the number of employees and amount of paid wages. Haynes submitted similarly false forms for three of his own companies. Based on these and other misrepresentations, Haynes fraudulently sought $124.8 million in tax refunds on behalf of his companies and numerous other businesses in his clients’ names. Based on Haynes’ false claims about his own companies, the U.S. Treasury mailed him multiple tax refund checks totaling more than $1 million. The U.S. Treasury also disbursed at least $31.6 million in tax refunds to Haynes’ clients based on the false tax forms that Haynes submitted. Haynes charged each client up to a 15 percent fee based on the tax refunds the client received from the U.S. Treasury. At Haynes’ request, many clients paid him those fees in cash. Each count of aiding and assisting in the preparation of false returns carries a maximum penalty of three years in prison and a $250,000 fine. The mail fraud charge carries a maximum penalty of 20 years in prison and a $250,000 fine or twice the gross gain to the defendant or gross loss to the victim, whichever is greatest. U.S. Attorney Sellinger credited special agents IRS – Criminal Investigation, under the direction of Special Agent in Charge Tammy Tomlins; special agents of the Social Security Administration, Office of the Inspector General, under the direction of Special Agent in Charge Sharon MacDermott, and postal inspectors from the U.S. Postal Service, under the direction of Inspector in Charge Christopher Nielsen, Philadelphia Division, with the investigation leading to today’s arrest. The government is represented by Assistant U.S. Attorney Fatime Meka Cano of the Economic Crimes Unit in Newark and Trial Attorney Samuel B. Bean of the U.S. Department of Justice, Tax Division. Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form . The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty. haynes.complaint.pdf


title: Greenbrier County Woman Sentenced to Prison for Federal Gun Crime

component: USAO - West Virginia, Southern

body_text: BLUEFIELD, W.Va. – Arica L. Anderson, 37, of Lewisburg, was sentenced today to one year and four months in prison, to be followed by three years of supervised release, for being a felon in possession of a firearm. According to court documents and statements made in court, on January 2, 2022, a law enforcement officer conducted a traffic stop of a vehicle in the Pickaway area of Monroe County in which Anderson was a passenger. The officer saw Anderson try to conceal an Acier Comprime, .25-caliber pistol. Anderson admitted to possessing the firearm. Federal law prohibits a person with a prior felony conviction from possessing a firearm or ammunition. Anderson was prohibited from possessing a firearm because of her prior felony conviction for conspiracy to commit a felony offense: robbery in the first degree, in Monroe County Circuit Court on September 16, 2013. United States Attorney Will Thompson made the announcement and commended the investigative work of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the West Virginia State Police. Senior United States District Judge David A. Faber imposed the sentence. Assistant United States Attorney Andrew D. Isabell prosecuted the case. A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 1:22-cr-104. ###


title: Operators of Florida Labor Staffing Companies Sentenced to Prison for Tax and Immigration Charges

component: USAO - Florida, Southern

body_text: MIAMI – The operators of several Key West, Florida, labor staffing companies, including PSEB Services JD, Inc., Paradise Hospitality Solutions LLC, Paradise Hospitality Group LLC, Paradise Hospitality Inc. and HBSM Corp. were sentenced to prison today for tax and immigration-related crimes. According to court documents and statements made in court, at various times between Jan. 2014 and Nov. 2020, Eka Samadashvili, Davit Pavliashvili, and others helped run a series of labor staffing companies that facilitated the employment of non-resident aliens in hotels, bars, and restaurants in Key West and elsewhere who were not authorized to work in the United States. These labor staffing companies did not withhold federal income and Social Security and Medicare taxes from workers’ wages and did not report said wages to the IRS. Eka Samadashvili was sentenced to 36 months in prison for conspiring to harbor aliens and induce them to remain in the United States and conspiring to defraud the United States. In addition to the term of imprisonment, U.S. District Court Judge Jose E. Martinez ordered Samadashvili to serve three years of supervised release and to pay approximately $8,473,785.69 in restitution to the United States. Davit Pavliashvili was sentenced to 18 months in prison for conspiring to harbor aliens and induce them to remain in the United States and filing a false federal tax return with the IRS. The court also ordered Pavliashvili to serve three years of supervised release and to pay approximately $16,925.31 in restitution to the United States. U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division, Special Agent in Charge Anthony Salisbury of Homeland Security Investigations (HSI), Miami, and Special Agent in Charge Matthew D. Line of the IRS Criminal Investigation (IRS-CI), Miami Field Office, made the announcement. HSI Miami and IRS-CI Miami investigated the case. Senior Litigation Counsel Christopher Clark for the Southern District of Florida and Senior Litigation Counsel Sean Beaty and Trial Attorneys Jessica A. Kraft, Nicholas J. Schilling Jr., Matthew C. Hicks and Wilson Rae Stamm of the Justice Department’s Tax Division prosecuted the case. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov under case number 23-cr-10003. ###


title: Mercer County Man Pleads Guilty to Child Exploitation Crime

body_text: BLUEFIED, W.Va. – Eric Shawn Phillips, 43, of Princeton, pleaded guilty today to enticement of a minor. According to court documents and statements made in court, from on or about April 19, 2021, to on or about February 17, 2022, Phillips persuaded, induced, enticed and coerced a minor female to engage in sexual activity with him. Phillips admitted that his criminal conduct included sending numerous sexually explicit messages to the minor female via text messaging and social media messaging apps. Phillips is scheduled to be sentenced on November 13, 2023. Phillips and the United States Attorney’s Office have agreed that a sentence of 30 years in prison and a lifetime of supervised release is the appropriate punishment for his crimes. Phillips must also register as a sex offender. United States Attorney Will Thompson made the announcement and commended the investigative work of the Mercer County Sheriff’s Department. Senior United States District Judge David A. Faber presided over the hearing. Assistant United States Attorneys Julie M. White and Alex Redmon are prosecuting the case. This case was prosecuted as part of Project Safe Childhood, a nationwide initiative of the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc . A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 1:22-cr-194. ###


title: Missouri Laboratory Owners Agree to Pay $1.9 Million and Relinquish $7 Million in Escrow in Settlement of Civil Fraud Claims

component: Federal Bureau of Investigation (FBI)

body_text: ST. LOUIS – The owners of a Fenton, Missouri-based clinical testing laboratory have agreed to pay $1.9 million and relinquish another nearly $7 million being held in escrow to settle civil claims alleging that they submitted claims for lab tests that were not medically necessary. The settlement agreement was signed by Thyroid Specialty Laboratory Inc., which does business as TEN Healthcare (TEN), their management company, 3890 Management LLC, and TEN Marketing, which employs the sales and marketing staff of TEN. The settlement will resolve allegations that TEN billed for tests that were not medically necessary. The government alleges that from June 12, 2018 to July 3, 2023, TEN falsely represented to medical providers that TEN’s Upper Respiratory Infection (URI) and Urinary Tract Infection (UTI) Polymerase Chain Reaction (PCR) testing panels were reasonable and medically necessary. The government alleges that until about Feb. 10, 2021, TEN used a requisition form that ensured that medical providers did not make an independent medical necessity decision about each laboratory test ordered by including PCR tests that were not medically necessary or reasonable when providers selected a URI or UTI PCR panel. The panel included over thirty pathogens that lacked a common symptomatology and, therefore, did not reasonably require PCR testing to rule out the included pathogens, the government alleges. Even after Feb. 10, 2021, TEN continued to represent to those providers and to the public that the entire URI and UTI PCR panels were reasonable and superior to other forms of testing, the government alleges. TEN allegedly falsely submitted claims for payment to Medicare, Medicaid, TRICARE and the Railroad Retirement Board for their URI and UTI PCR panels of tests when they knew or should have known that the tests were not reasonable or medically necessary. TEN continued to submit claims for payment to Medicare, Medicaid, TRICARE, and the RRB for their URI and UTI PCR panels even after Medicare began rejecting certain billing codes. Rather than deciding to stop billing for those panels or re-evaluate the legitimacy of such panels, TEN selected other billing codes to circumvent the rejections it was receiving from Medicare, the government alleges. From on Jan. 1, 2016, to March 1, 2021, TEN also allegedly submitted false claims for reimbursement for therapeutic drug assays and specimen validity testing using certain CPT codes at the same time as they submitted claims for reimbursement using a different code that incorporates some of the same tests, the government alleges. TEN was not entitled to the additional reimbursement, but continued to submit these claims even after Medicaid conducted an audit of the TEN Healthcare Entities in 2017 and collected an overpayment in 2019 due to these billing practices, the government alleges. On May 19, 2020, the Centers for Medicare & Medicaid Services suspended Medicare payments to TEN that now total more than $6.9 million. “This Settlement Agreement is neither an admission of liability by the TEN Healthcare Entities nor a concession by the United States that its claims are not well founded,” the agreement says. "Laboratories have a responsibility to ensure that claims they submit to Medicare are for legitimate and medically necessary services," said Curt L. Muller, Special Agent in Charge at the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG). "HHS-OIG is committed to ensuring that providers fulfill that fundamental obligation, and to investigating those who, with reckless disregard for American taxpayers and patients, attempt to waste or defraud federal health care programs." The case was investigated by HHS-OIG, the Missouri Attorney General’s Medicaid Fraud Control Unit, and the Defense Criminal Investigative Service and the FBI. Assistant U.S. Attorney Amy Sestric handled the case.


title: Real Estate Developer Sentenced for Investment Fraud, Bank Fraud, Money Laundering, and Tax Evasion Schemes

component: USAO - Connecticut

body_text: Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that ROBERT V. MATTHEWS, 65, of Palm Beach Gardens, Florida, was sentenced today by U.S. District Judge Victor A. Bolden in Bridgeport to 65 months of imprisonment, followed by three years of supervised release, for conspiracy, money laundering, and tax evasion offenses related to multiple schemes that defrauded investors and financial institutions out of tens of millions of dollars. According to court documents and statements made in court, Matthews was a real estate developer in charge of The Palm House Hotel (“PHH”), a property that he sought to develop in Palm Beach, Florida. Matthews maintained residences in both Florida and Connecticut. The EB-5 visa program is a federal program by which foreign nationals and their families are eligible to apply for lawful permanent resident status (commonly known as a “green card”) if they meet certain requirements by investing in a development project in the U.S. Various entities in the U.S. act as intermediaries between potential foreign investors and investment projects. One such entity, South Atlantic Regional Center, LLC (“SARC”) in Palm Beach, Florida, advertised EB-5 projects to foreign investors, collected funds from foreign investors that were earmarked for certain development projects, and made the funding available to the respective development project. The PHH was a development project advertised by SARC to EB-5 investors between approximately 2012 and 2014. Robert Matthews purchased the PHH property in August 2006, and then lost the property in foreclosure in 2009. In August 2013, Robert Matthews reacquired control of the property through an entity called Palm House, LLC. However, Robert Matthews’ brother, Gerry Matthews, was listed in incorporation documents as owning 99 percent of Palm House, LLC, and another individual, who had secured additional financing for Robert Matthews, was listed as owning the remaining 1 percent. Robert Matthews and others defrauded EB-5 investors by representing that funds from EB-5 investors would be used to develop the PHH; that certain well-known individuals would be on the PHH advisory board and certain well-known entertainers, businesspeople, and politicians “will be a part of the club”; and that Gerry Matthews was a member of the Palm House, LLC management team and was the 99 percent owner of the project. EB-5 investors invested in the PHH project by providing money to bank accounts controlled by SARC. SARC, in turn, provided EB-5 money earmarked for PHH use into accounts controlled by Robert Matthews and his associates. While Gerry Matthews was the nominal 99 percent owner of Palm House, LLC, Robert Matthews controlled the company. In addition, there was no evidence any of the proffered well-known individuals would be on the PHH advisory board or would be members of the club. Robert Matthews and others used EB-5 funding for purposes not related to the PHH project, including for Robert Matthews’ personal gain. Through this scheme, approximately 61 EB-5 investors lost a total of more than $30 million. As part of this scheme, Robert Matthews and others moved investor funds through various bank accounts located in Connecticut and Florida. The funds were used to pay Robert Matthews’, and his wife’s, Maria Matthews, credit card debts, and to purchase two properties located in Washington Depot, Connecticut. One of the Washington Depot properties was a property that Robert Matthews had previously lost in foreclosure. Robert Matthews, Nicholas Laudano, and others conspired to purchase the property out of foreclosure by concealing both the relationship between the co-conspirators, and the source of the funds used to purchase the property. Laudano was a construction contractor who continuously worked on the development of the PHH project between approximately 2006 and 2016. He also has operated several restaurants in Florida and Connecticut. In addition, Robert and Maria Matthews evaded paying federal income tax they owed for the 2005 and 2007 calendar years in multiple ways, including by using limited liability companies, a company bank account, and their attorney’s trust account to pay for personal expenses. For example, in approximately November 2014, Robert Matthews caused Maria Matthews to execute documents to obtain a loan from an individual. The loan was secured by one of their Washington Depot properties, which, at the time, was in the name of a shell company. The proceeds of this loan were eventually disbursed into an account controlled by Robert and Maria Matthews in the name of Mirabia LLC. Robert and Maria Matthews subsequently used the loan proceeds for personal expenses without paying any of their outstanding tax liability. This tax evasion scheme resulted in a loss to the Internal Revenue Service of approximately $2.75 million in taxes, interest, and penalties. The investigation also revealed that, between approximately 2007 and 2009, Robert Matthews conspired with others in a scheme to defraud T.D. Banknorth, N.A. (now TD Bank, N.A.), out of the proceeds of a construction loan by making material misrepresentations to the bank in connection with the development of the Point Breeze Hotel in Nantucket, Massachusetts. At the time Matthews defaulted on the loan, TD Bank was owed approximately $34 million. After TD Bank foreclosed on the loan, it was owed approximately $12 million. In June 2010, Matthews conspired with others in a scheme to defraud TD Bank out of its ability to foreclose on another parcel of property in Nantucket owned by Matthews and recover the $12 million dollar debt. Finally, between approximately December 2010 and January 2013, Robert Matthews conspired with others to defraud JP Morgan Chase Bank N.A. by misappropriating insurance proceeds earmarked for repair of one of his Washington Depot properties. On April 25, 2019, Robert Matthews pleaded guilty to conspiracy to commit bank fraud and wire fraud, making illegal monetary transactions, and tax evasion. Matthews, who is released on bond, is required to report to prison on October 23. Restitution will be determined after additional court proceedings. On April 25, 2019, Maria Matthews, also known as Mia Matthews, pleaded guilty to tax evasion. She awaits sentencing. On March 7, 2018, Gerry Matthews, pleaded guilty to conspiracy to commit wire fraud. He also awaits sentencing. On March 12, 2018, Laudano pleaded guilty to conspiracy to commit bank fraud, and to making illegal monetary transactions. On June 4, 2023, he was sentenced to three years of supervised release. This matter has been investigated by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorneys John T. Pierpont, Jr. and David E. Novick.


title: Federal Grand Jury Indicts Louisville Woman for CARES Act Fraud

component: USAO - Kentucky, Western

body_text: Louisville, KY – A federal grand jury in Louisville, Kentucky returned an indictment on July 11, 2023, charging a local woman with four counts of wire fraud, one count of bank fraud, and two counts of money laundering related to fraud involving the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) financial assistance program. U.S. Attorney Michael A. Bennett of the Western District of Kentucky and Special Agent in Charge Kelly Moening of the Treasury Inspector General for Tax Administration (TIGTA) Great Lakes Field Division made the announcement. According to the indictment, between June 18, 2020, and September 22, 2021, Darlene McCoy, 66, filed one fraudulent Economic Injury Disaster Loan (EIDL) application and three fraudulent applications for Paycheck Protection Program (PPP) loans, resulting in the theft of $165,416. McCoy utilized the entities Letz Get It Crackin’, a Kentucky Limited Liability Company, and Darlene McCoy d/b/a Reds Creative Events, an unregistered entity, to file the applications. McCoy falsely exaggerated the number of employees and payroll expenses of Letz Get It Crackin’ and the gross receipts of Reds Creative Events in the fraudulent applications. McCoy further applied for forgiveness for all three of the PPP loans, falsely stating the amount that had been spent on payroll. The Small Business Administration (SBA) PPP loans were designed to provide a direct incentive for small businesses who were in operation on February 15, 2020, to keep their workers on the payroll. PPP loan proceeds were required to be used by the business on certain permissible expenses. Interest and principal on PPP loans could be entirely forgiven if the business spent the loan proceeds on the allowable expenses within a designated period and used a certain percentage of the PPP loan proceeds on payroll expenses. McCoy made her initial court appearance on July 13, 2023, before a U.S. Magistrate Judge of the U.S. District Court for the Western District of Kentucky. If convicted, McCoy faces a maximum sentence of 130 years in prison. A federal district court judge will determine any sentence after considering the sentencing guidelines and other statutory factors. There is no parole in the federal system. TIGTA is investigating the case. Assistant U.S. Attorney Nicole Elver is prosecuting the case. On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus. Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form . An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. ###


title: St. Michael Woman Pleaded Guilty to Three Counts of Involuntary Manslaughter

component: USAO - North Dakota

body_text: Fargo – United States Attorney Mac Schneider announced that on July 27, 2023, Trina Lily Hunt, age 20, of St. Michael, ND, pleaded guilty before Chief Judge Peter D. Welte, U.S. District Court, Fargo, ND, to three counts of Involuntary Manslaughter and one count of Assault Resulting in Serious Bodily Injury. On August 11, 2021, Bureau of Indian Affairs patrol officers responded to a call of a two-vehicle crash along Heart Road on the Spirit Lake Reservation. Hunt was driving one of the vehicles and had two passengers. A second driver, Winter Skye Bigtrack, was driving a vehicle and had four passengers. Of those passengers, two fatalities were identified at the scene – an adult male and a juvenile male. A third passenger, a minor female, later died. A fifth passenger, another minor female, suffered injuries that required her to be transported to Fargo for treatment where she was admitted to the intensive care unit. The investigation revealed that both Hunt and Bigtrack were driving recklessly, without licenses, while under the influence of intoxicating liquor and a controlled substance at high speeds exceeding the posted speed limit. Bigtrack previously pled guilty and was sentenced to serve 57 months in prison followed by three years of supervised release. Sentencing of Hunt is scheduled for November 7, 2023, at 2:30 PM. This case was investigated by the Federal Bureau of Investigation, Bureau of Indian Affairs, and the North Dakota Highway Patrol, and the case was prosecuted by the United States Attorney’s Office, with Assistant United States Attorney Lori H. Conroy assigned to the case. # # #


title: Federal Grand Jury Indicts Louisville Man for CARES Act Fraud

body_text: Louisville, KY – A federal grand jury in Louisville, Kentucky returned an indictment on July 11, 2023, charging a local man with four counts of wire fraud and four counts of money laundering related to fraud involving the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) financial assistance program. U.S. Attorney Michael A. Bennett of the Western District of Kentucky and Special Agent in Charge Jodi Cohen of the FBI Louisville Field Office made the announcement. According to the indictment, between March 2020, and August 2022 Andrew Prell, 56, filed one fraudulent Economic Injury Disaster Loan (EIDL) application and two fraudulent applications for Paycheck Protection Program (PPP) loans, resulting in the theft of $1,687,033. Prell utilized the entity Convergence of 4 Dimensions, a Kentucky, and Florida Limited Liability Company, to file the applications. Prell falsely exaggerated the number of employees, payroll expenses, and gross revenues of Convergence of 4 Dimensions in the fraudulent applications. In addition, Prell used the funds on unauthorized expenses under the CARES Act, including gambling and other personal expenses. The Small Business Administration (SBA) PPP loans were designed to provide a direct incentive for small businesses who were in operation on February 15, 2020, to keep their workers on the payroll. PPP loan proceeds were required to be used by the business on certain permissible expenses. Interest and principal on PPP loans could be entirely forgiven if the business spent the loan proceeds on the allowable expenses within a designated period and used a certain percentage of the PPP loan proceeds on payroll expenses. Prell made his initial court appearance today before a U.S. Magistrate Judge of the U.S. District Court for the Western District of Kentucky. If convicted, Prell faces a maximum sentence of 120 years in prison. A federal district court judge will determine any sentence after considering the sentencing guidelines and other statutory factors. There is no parole in the federal system. FBI is investigating the case. Assistant U.S. Attorney Bryan Calhoun is prosecuting the case. On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus. Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form . An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. ###


title: New Jersey Tax Preparer Arrested for Fraudulently Seeking Over $124 Million in COVID-19 Employment Tax Credits

component: Tax Division

body_text: A New Jersey tax preparer was arrested today on charges related to fraudulently seeking over $124,000,000 from the IRS by filing over 1,000 tax returns falsely claiming COVID-19-related employment tax credits. In response to the COVID-19 pandemic and its economic impact, Congress authorized an employee retention tax credit that a small business could use to reduce the employment tax it owed to the IRS, also known as the “employee retention credit” or ERC. Congress also authorized the IRS to give a credit against employment taxes to reimburse businesses for the wages paid to employees who were on sick or family leave and could not work because of COVID-19. This “paid sick and family leave credit” was equal to the wages the business paid the employees during the sick or family leave, also subject to a maximum amount. According to court documents, from November 2020 to May 2023, Leon Haynes of Teaneck, New Jersey, allegedly repeatedly exploited a program created to help small businesses impacted by the COVID-19 pandemic. Acting as a tax preparer, Haynes allegedly prepared and submitted approximately 1,387 false forms to the IRS claiming COVID-related tax credits on behalf of himself and clients. The complaint further alleges that Haynes falsely told his clients that the government was giving out COVID-relief money for businesses and that they were eligible for the money simply because they had a business. Allegedly, without consulting with his clients, Haynes then submitted forms to the IRS on behalf of their businesses that grossly overstated the number of employees and amount of wages paid. Haynes allegedly submitted similarly false forms for three of his own companies. Based on these and other misrepresentations, Haynes’ conduct allegedly sought approximately $124,751,995 in tax refunds on behalf of his companies and numerous other businesses in his clients’ names. The IRS allegedly mailed Haynes multiple tax refund checks totaling $1,007,966 for his own companies and allegedly disbursed a total of $31.6 million in refunds to Haynes’ clients and himself based on the false tax forms that Haynes submitted. The complaint further alleges that Haynes charged many clients a fee of as much as 15% of the refund they received. If convicted, Haynes faces a maximum penalty of three years in prison for each count of aiding and assisting in the preparation of a false return and 20 years in prison for mail fraud. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Philip R. Sellinger for the District of New Jersey made the announcement. IRS-Criminal Investigation, Social Security Administration-Office of the Inspector General, and the U.S. Postal Inspection Service are investigating the case. Trial Attorney Samuel B. Bean of the Justice Department’s Tax Division and Assistant U.S. Attorneys Fatime Meka Cano of the District of New Jersey’s Economic Crimes Unit are prosecuting the case. A complaint/information is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.


title: Shreveport Man Sent to Federal Prison for Illegal Possession of a Machine Gun

body_text: SHREVEPORT, La. – Cartavious Cursshuan Pouncy , 21, of Shreveport, Louisiana, was sentenced in U.S. District Court today, announced United States Attorney Brandon B. Brown. United States District Judge Elizabeth E. Foote sentenced Pouncy to 20 months in prison, followed by 3 years of supervised release for illegal possession of a machine gun. Pouncy pleaded guilty to the charge on March 16, 2023. Shreveport Police Department officers stopped a Dodge Challenger with no tags near the intersection of Hearne Avenue and Corbitt Street on May 15, 2022. Pouncy was driving the Dodge Challenger and two other individuals were inside. Officers detected a strong odor of marijuana coming from inside the vehicle and all of the occupants were asked to exit the vehicle. Pouncy was asked if there were narcotics or firearms inside the vehicle and he initially stated there were not. A search of the vehicle was conducted, and officers did in fact locate a Panther Arms AR Pistol, Model: DPMS, with two magazines, loaded with 63 rounds of ammunition behind the driver’s seat. Pouncy admitted post- Miranda that the firearm belonged to him, and he had purchased it a few days prior. Agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) examined the firearm and discovered that it had a drop-in auto sear, a conversion device, inserted inside to make it a fully automatic machine gun. A record search was conducted of the National Firearm Registration and Transfer Record (NFRTR) and Pouncy had not registered the Panther Arms AR Pistol or any other weapon. The case was investigated by the ATF and Shreveport Police Department and prosecuted by Assistant U.S. Attorney J. Aaron Crawford. 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: Schenectady Man Pleads Guilty to Sexual Exploitation of a Child

component: USAO - New York, Northern

body_text: ALBANY, NEW YORK – Terence Wilson, age 40, of Schenectady, New York, pled guilty today to five counts of sexual exploitation of a child. United States Attorney Carla B. Freedman and Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), made the announcement. As part of his guilty plea, Wilson admitted that he sexually exploited a child from the time the child was approximately 8 years old until the child was approximately 15 years old and that he created approximately 50 videos depicting the abuse. Under the parties’ plea agreement, at sentencing on November 9, 2023 before Chief United States District Judge Brenda K. Sannes, Wilson faces an imprisonment term of at least 25 years and up to 35 years, a fine of up to $250,000, restitution to the victim, and a post-imprisonment term of supervised release of between 5 years and life. Wilson also will have to register as a sex offender upon his release from prison. This case was investigated by the FBI and its Child Exploitation Task Force, which includes members of federal, state and local law enforcement agencies, including the New York State Police. Former Assistant United States Attorney Rachel L. Williams and Assistant United States Attorneys Michael D. Gadarian and Adrian LaRochelle prosecuted this case as part of Project Safe Childhood. Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorney’s offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc .


title: Norwalk Man Pleads Guilty to Child Pornography Offense

body_text: Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that JAKE SCOTT FLEWELLYN, 26, of Norwalk, pleaded guilty today in Bridgeport federal court to a charge related to accessing and possessing images and videos depicting child sex abuse. According to court documents and statements made in court, in December 2021, the National Center for Missing and Exploited Children ("NCMEC") received a report from the smartphone messenger application Kik about a Kik user who was distributing videos of child pornography through its service. Kik deactivated the user’s account. In early April 2022, while federal law enforcement was investigating this matter to determine the Kik user’s identity, Kik submitted to NCMEC another report of a user account that was being used to distribute videos of child pornography. The investigation revealed that Flewellyn created both Kik accounts and, between November 2021 and April 2022, used them to distribute approximately 107 images and videos depicting child sex abuse. Flewellyn pleaded guilty to accessing with intent to view child pornography, an offense that carries a maximum term of imprisonment of 20 years. He is scheduled to be sentenced by U.S. District Michael P. Shea in Hartford on October 23. Flewellyn is released on a $100,000 bond under electronic monitoring pending sentencing. This matter has been investigated by the Federal Bureau of Investigation, with the assistance of the Norwalk Police Department. The case is being prosecuted by Assistant U.S. Attorneys Robert S. Dearington and Neeraj N. Patel. This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc . To report cases of child exploitation, please visit www.cybertipline.com .


title: Long Island Chiropractor Sentenced to Prison for Health Care Fraud

component: USAO - New York, Eastern

body_text: Earlier today, Peter Adamczak, a licensed chiropractor operating in East Meadow, Long Island, was sentenced by United States District Judge Joanna Seybert in federal court in Central Islip to a year and a day in prison for health care fraud. As part of that sentence, Judge Seybert ordered Adamczak to pay nearly $1 million in restitution and to forfeit over $180,000. Adamczak had billed a private insurance company over $1 million for acupuncture services that were never performed. The defendant pleaded guilty to the charge in August 2022. Breon Peace, United States Attorney for the Eastern District of New York, Christie M. Curtis, Acting Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Lucy Lang, Inspector General of New York State, announced the sentence. “Today’s sentence demonstrates that Adamczak’s long-running scheme, in which he brazenly submitted false and fraudulent billing claims to an insurance provider, ultimately came at a personal cost to the defendant,” stated United States Attorney Peace. “This Office will continue to hold accountable dishonest healthcare professionals who abuse the trust placed in them by lying and cheating in order to line their own pockets.” “Health insurance fraud is not a victimless crime as it increases the cost of coverage for those who need it most and wastes precious medical resources,” state New York State Inspector General Lang. “I want to thank the United States Attorney for the Eastern District of New York Breon Peace for delivering justice on this case and to the OIG staff who worked on exposing this audacious scheme.” From 2016 to 2020, Adamczak submitted over $1 million in fraudulent claims for reimbursement to a private insurance company. Adamczak was not licensed to perform acupuncture but claimed that the services were performed by an unaffiliated acupuncturist who leased office space from Adamczak. In reality, neither the unaffiliated acupuncturist nor Adamczak performed the billed acupuncture services. Based on Adamczak’s fraudulent claims, the private insurance company paid reimbursements to its beneficiaries who, in turn, delivered the payments to Adamczak. In one case, a beneficiary who was a relative of Adamczak, deposited the reimbursement checks to their personal bank account and kept the funds. Assistant United States Attorney John Vagelatos is in charge of the prosecution. Assistant United States Attorney Claire Kedeshian of the Office’s Asset Recovery Section is handling forfeiture matters. The Defendant : PETER ADAMCZAK Age: 66 Huntington, New York E.D.N.Y. Docket No. 22-CR-287 (JS)


title: JUSTICE DEPARTMENT OFFICIALS TO PARTICIPATE IN NATIONAL NIGHT OUT EVENTS ACROSS THE COUNTRY

component: Office of the Attorney General

body_text: ****** MEDIA ADVISORY ****** WASHINGTON – Tomorrow, Attorney General Merrick B. Garland, Deputy Attorney General Lisa O. Monaco, Associate Attorney General Vanita Gupta, and Justice Department officials will participate in National Night Out (NNO) events across the country as part of a Department-wide effort to bring attention to events that build stronger communities. The Attorney General will attend events in the Philadelphia-area, the Deputy Attorney General will attend events in Nashville, Tennessee, and the Associate Attorney General will attend events in Washington, D.C. NNO is an annual community-building campaign that promotes police-community partnerships and neighborhood camaraderie to make our neighborhoods safer, better places to live. In most areas of the country, the program culminates annually on the first Tuesday of August. Established in 1984 from a Bureau of Justice Assistance (BJA) grant, the goal of NNO is to build relationships with and between communities and law enforcement. NNO enhances the relationship between neighbors and law enforcement while bringing back a true sense of community. Deputy Attorney General Monaco Events in Nashville The Deputy Attorney General will attend NNO events in Nashville. She will be joined by U.S. Attorney Henry Leventis for the Middle District of Tennessee and Chief of Police John Drake of the Metropolitan Nashville Department Police Department. Approx. 3:30 p.m. CT / 4:30 p.m. ET Edgehill Apartments Resident Association 1277 12th Avenue S, Nashville, TN 37203 Approx. 5 p.m. CT / 6 p.m. ET East Park Community Center 600 Woodland Street, Nashville, TN 37203 OPEN PRESS For information on National Night Out events in your community, visit www.natw.org . For more information on the NNO events, reach out to Catherine.Morris2@usdoj.gov and: Emma.Dulaney@usdoj.gov for the Attorney General Kelsey.Pietranton@usdoj.gov for the Deputy Attorney General Terrence.Clark@usdoj.gov for the Associate Attorney General


title: L.A. Harbor Area Man Sentenced to 15 Years in Federal Prison for Armed Robbery Spree that Targeted South Bay Businesses

component: USAO - California, Central

body_text: LOS ANGELES – A Wilmington man was sentenced today to 180 months in federal prison for committing an armed robbery spree of businesses in the South Bay area of Los Angeles County, during which time he pointed a gun at a pregnant woman working at a gas station. Stevo Mijanovic, 20, was sentenced by United States District Judge R. Gary Klausner, who also ordered him to pay $2,733 in restitution. Mijanovic pleaded guilty on March 6 to two counts of Hobbs Act robbery and one count of brandishing a firearm in furtherance of a crime of violence. From August 2021 to January 2022, Mijanovic robbed six businesses in the Wilmington area of Los Angeles, robbed two other businesses in San Pedro and Torrance, and attempted to rob another business in San Pedro. The victim businesses were restaurants, convenience stores and gas stations and their employees. “[Mijanovic] committed six armed robberies, one attempted armed robbery, and two robberies in which he brandished what appeared to be a firearm,” prosecutors wrote in a sentencing memorandum. “He terrorized victim employees and bystanders at each location, using fear to obtain money from the victim businesses.” In December 2021, Mijanovic pointed a firearm at a victim, who was a pregnant gas station employee in Wilmington. The victim “complied out of fear as she told [Mijanovic] she was pregnant and allowed [him] to take approximately $180 from the cash register,” according to Mijanovic’s plea agreement. Mijanovic admitted to netting between $80 and $1,000 per robbery. He obtained $2,733 during his crime spree. The FBI and the Los Angeles Police Department investigated this matter. Assistant United States Attorney Jennifer Chou prosecuted this case.


title: Rosebud Man Sentenced for Prohibited Person in Possession of a Firearm

component: USAO - South Dakota

body_text: PIERRE - United States Attorney Alison J. Ramsdell announced today that Chief Judge Roberto A. Lange, U.S. District Court, has sentenced a Rosebud, South Dakota man convicted of Possession of a Firearm by a Prohibited Person. The sentencing took place on July 31, 2023. Isaiah Lucas Beck, age 20, was sentenced to two years and ten months in prison, followed by three years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund. He was also ordered to forfeit multiple firearms involved in the matter. Beck was indicted for Possession of a Firearm by a Prohibited Person by a federal grand jury in February of 2023. He pleaded guilty on May 1, 2023. On August 31, 2022, Beck had a verbal confrontation with his father on Highway 83, south of Mission, South Dakota. During the argument, Beck’s father removed a Smith & Wesson pistol and a Del-Ton Incorporated rifle from Beck’s possession. The firearms belonged to Beck, who was an unlawful user of a controlled substance, thus prohibited from possessing any firearms. Both firearms were identified as being shipped and transported in interstate commerce and foreign commerce. This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant U.S. Attorney Abby Roesler prosecuted the case. Beck was immediately remanded to the custody of the U.S. Marshals Service.


title: Box Elder and Rapid City Men Sentenced for Drug Trafficking

body_text: RAPID CITY - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Jeffrey L. Viken has sentenced two brothers from Box Elder and Rapid City, South Dakota, both convicted of Conspiracy to Distribute Methamphetamine. The sentencing hearings took place on July 28, 2023. Elias Condon from Box Elder, 24, was sentenced to 15 years in federal prison, followed by five years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund. Jordan Condon from Rapid City, 22, was sentenced to 10 years in federal prison, followed by five years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund. Elias and Jordan Condon were indicted for Conspiracy to Distribute a Controlled Substance by a federal grand jury in July of 2021. They were found guilty at the conclusion of a jury trial on May 24, 2023. During the conspiracy, Elias and Jordan Condon regularly traveled to Denver, Colorado, to obtain methamphetamine and marijuana. Between October of 2020 and May of 2021, they traveled approximately 18 times, though not always together. When they returned to South Dakota, the methamphetamine and marijuana was provided to others for use and further distribution. Overall, they were responsible for approximately 10 pounds of methamphetamine entering South Dakota. During the course of the conspiracy, both men possessed firearms. This case was investigated by the Unified Narcotics Enforcement Team, which is a local drug task force comprised of law enforcement from the Pennington County Sheriff’s Office, Rapid City Police Department, South Dakota Division of Criminal Investigation, South Dakota Highway Patrol, and the South Dakota National Guard. Assistant U.S. Attorney Kathryn N. Rich prosecuted the case. Elias and Jordan Condon were immediately remanded to the custody of the U.S. Marshals Service.


title: Crow Creek Man Sentenced for Assault with a Dangerous Weapon and Child Abuse

body_text: PIERRE - United States Attorney Alison J. Ramsdell announced today that Chief Judge Roberto A. Lange, U.S. District Court, has sentenced a Crow Creek, South Dakota, man convicted of Assault with a Dangerous Weapon and Child Abuse. The sentencing took place on July 31, 2023. James Drapeau, 35, was sentenced to two years and four months in federal prison, followed by three years of supervised release, and ordered to pay a $200 special assessment to the Federal Crime Victims Fund. Drapeau was indicted of the same charges by a federal grand jury in June of 2022. He pleaded not guilty and a jury trial was held in April of 2023. The jury found Drapeau guilty of both offenses. Drapeau was convicted of assaulting his 14-year-old step-son, who was living in a home within the Crow Creek Reservation with Drapeau. Drapeau, frustrated over a perceived slight, beat the young victim relentlessly, with a broomstick and electrical cord. The victim was able to escape the back bedroom in which he was confined and run to the front living room. Drapeau caught up to the victim, threw him to the ground and proceeded to kick him about the body with shod feet. The young victim sustained significant bruising on his head, lower back, arms, buttocks, and legs as a result of the assault. This matter was prosecuted by the U.S. Attorney’s Office because the Major Crimes Act, a federal statute, mandates that certain violent crimes alleged to have occurred in Indian country be prosecuted in Federal court as opposed to State court. This case was investigated by the Bureau of Indian Affairs – Office of Justice Services, Crow Creek Agency. Assistant U.S. Attorney Troy R. Morley prosecuted the case. Drapeau was immediately remanded to the custody of the U.S. Marshals Service.


title: Pierre Man Sentenced for Prohibited Person in Possession of a Firearm

body_text: PIERRE - United States Attorney Alison J. Ramsdell announced today that Chief Judge Roberto A. Lange, U.S. District Court, has sentenced a Pierre, South Dakota, man convicted of Possession of a Firearm by a Prohibited Person. The sentencing took place on July 31, 2023. Devin Alexander Rosenblum, age 28, was sentenced to two years in prison, followed by three years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund. He was also ordered to forfeit interest in a Sturm, Ruger & Company pistol involved in the matter. Rosenblum was indicted for Possession of a Firearm by a Prohibited Person by a federal grand jury in January of 2023. He pleaded guilty on March 16, 2023. On October 26, 2022, the South Dakota Board of Pardons and Paroles issued an absconder warrant for Rosenblum. The Dakota Territory Fugitive Task Force adopted the warrant and arrested Rosenblum in Pierre on November 1, 2022. A bag in Rosenblum’s possession was searched and revealed a black Sturm, Ruger & Company Incorporated pistol. Rosenblum admitted the pistol belonged to his roommate and that he took it without permission. Rosenblum is precluded from possessing any firearms due to prior felony convictions. The pistol was identified as being shipped and transported in interstate commerce and foreign commerce. This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. This case was investigated by the U.S. Marshals Service, South Dakota Division of Criminal Investigation, Pierre Police Department, Hughes County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant U.S. Attorney Abby Roesler prosecuted the case. Rosenblum was immediately remanded to the custody of the U.S. Marshals Service.


title: Pine Ridge Man Indicted for Abuse and Assault

body_text: RAPID CITY - United States Attorney Alison J. Ramsdell announced that a federal grand jury has indicted a Pine Ridge, South Dakota, man for Aggravated Sexual Abuse, Assault with a Dangerous Weapon, and Assault Resulting in Substantial Bodily Injury to an Intimate Partner. Corey Yankton, Sr., age 36, was indicted in July of 2023. He appeared before U.S. Magistrate Judge Daneta Wollmann on July 26, 2023, and pleaded not guilty to the Indictment. The maximum penalty upon conviction is up to life in custody and/or a $250,000 fine, mandatory minimum of five years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered. The charges relate to Yankton sexually abusing and assaulting a female at Wolf Creek in March of 2023. The charges are merely accusations and Yankton is presumed innocent until and unless proven guilty. This matter is being prosecuted by the U.S. Attorney’s Office because the Major Crimes Act, a federal statute, mandates that certain violent crimes alleged to have occurred in Indian Country be prosecuted in Federal court as opposed to State court. The investigation is being conducted by the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Anna Lindrooth is prosecuting the case. Yankton was released on bond pending trial. A trial date has been set for October 3, 2023.


title: Knott County Man Sentenced to 150 Months for Armed Methamphetamine Trafficking

component: USAO - Kentucky, Eastern

body_text: LONDON, Ky. — A Knott County, Ky., man, Michael Nolan Slone, 37, was sentenced on Friday to 150 months in federal prison, by U.S. District Judge Robert Wier, for possession with intent to distribute 50 grams or more of methamphetamine, possession of a firearm in furtherance of drug trafficking, possession of a firearm as a convicted felon, and possessing a firearm with an obliterated serial number. Slone, who represented himself at trial, was found guilty by the jury following a two-day trial in March. According to the facts introduced at trial, a Kentucky State Police trooper discovered Slone passed out in the driver seat of his vehicle at a gas station in Hindman. The encounter ended with the location of over 100 grams of methamphetamine and two firearms. One firearm was on Slone’s person and the other, an AR-style rifle, was located directly over the methamphetamine, and had the magazines “jungle-stacked” together for quicker reloading capability. Slone was prohibited from firearm possession due to prior felony convictions for First Degree Burglary and Attempted Murder, which he obtained after shooting two individuals in August of 2010. Under federal law, Slone must serve 85 percent of his prison sentence. Upon his release from prison, he will be under the supervision of the U.S. Probation Office for five years. Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; R. Shawn Morrow, Special Agent in Charge, ATF, Louisville Field Division; and Col. Phillip Burnett, Jr., jointly announced the sentence. The investigation was conducted by the ATF and the KSP. This case was prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Eastern District of Kentucky, U.S. Attorney Shier coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials. -END-


title: Former Omaha Police Officer Sentenced to 36 Years for Production and Possession of Child Pornography

body_text: Acting United States Attorney Susan Lehr announced that Christopher Groth 39, of Gretna, Nebraska, was sentenced today in Lincoln, Nebraska, by Senior United States District Judge John M. Gerrard for one count of production of child pornography and one count of possession of child pornography. Groth was sentenced to 432 months in prison and will serve 20 years on supervised release. There is no parole in the federal system. Groth was additionally ordered to pay a $3,000 special assessment which will contribute to funds established for victims of these types of crimes. This case initiated in February of 2022 with an investigation by the Federal Bureau of Investigation into several cyber tips from Yahoo! which indicated that Groth was uploading child pornography onto his email accounts. After a search warrant was received it was determined that several of the images located on the account were likely original productions created by Groth involving a child which depicted sexually explicit conduct. A residential search warrant and arrest warrant were executed immediately following this discovery. Groth, who was determined to be a police officer with the Omaha Police Department, was arrested while at work without incident and was very soon after removed from his position with OPD. A review of Groth’s devices and accounts conducted by the FBI revealed eight images which were produced by Groth on two occasions in 2020 involving a single child victim. Groth emailed these images to himself in February 2021 as a method of saving the files. A search of Groth’s phone and email account revealed more than 700 child exploitation files depicting other unidentified children which he appeared to receive online and subsequently saved using his email account. “No one is above the law,” said Acting United States Attorney Susan Lehr. “Mr. Groth’s crime was committed against the most vulnerable of our society, a child. The sentence imposed by Judge Gerrard reflects the seriousness of Groth’s conduct and hopefully acts as deterrent for others. The United States Attorney’s Office thanks the FBI for its quick actions in this case as well as OPD for their cooperation and responsiveness.” After the sentencing, Special Agent in Charge Eugene Kowel said, “In an appalling and heinous way, Christopher Groth violated his sworn oath as a police officer by victimizing children. Today’s sentence ensures that he is held accountable for his actions. Investigating this type of crime is one of the Bureau’s highest priorities and FBI Omaha will remain relentless in our pursuit to protect children from predators.” This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and 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.justice.gov/psc. This case was investigated by the Federal Bureau of Investigation.


title: Lincoln Man Sentenced to 13 Years for Discharging a Firearm During a Drug Crime

body_text: Acting United States Attorney Susan Lehr announced that Buongkhoy Daniel Wal, 19, of Lincoln, Nebraska, was sentenced today by Senior United States District Judge John M. Gerrard to 13 years’ imprisonment for discharging a firearm during a drug trafficking crime. Wal was also sentenced to a five-year term of supervised release to be served after he completes his prison sentence. There is no parole in the federal system. Wal pleaded guilty to his offense on March 21, 2023. On August 2, 2021, police responded to reports of a shooting which occurred near the Edgewood Theaters and Target on the south side of Lincoln. Jayden Prentice, Christopher Duncan, and Riley Mills were present when police arrived. Duncan and Prentice had suffered gunshot wounds. First responders resuscitated Duncan using CPR. All were then transported to the hospital. Duncan and Prentice each spent a month in the hospital being treated for their wounds, and Duncan had to have one of his legs amputated. The investigation would later reveal that a group of people, including Wal and Xavier Gary, arranged to purchase a half-pound of marijuana from Prentice, Duncan, and Mills. The planned purchase was a ruse for a robbery. Wal and an unknown person got into the back of Duncan’s vehicle. Both Wal and the unknown person were seen carrying firearms. Wal began counting out money. At that time, the unknown person pulled out his gun, said something to the effect of, “this is how this is going to go,” and then shot Prentice in the face. Mills was seated in the backseat next to Wal and the unknown person. Mills and the unknown person began struggling over the gun. Meanwhile, several more gunshots were heard being fired just outside the car. Wal, the unknown person, and the others in their group then fled the scene. In their haste to get away, they dropped one of the firearms, a .45 caliber handgun. Ballistics reports showed that handgun was the weapon which fired the shot that struck Prentice, and it fired at least one of the shots that struck Duncan. A DNA profile was also found on that firearm. The DNA profile was found to contain a mixture of DNA from three people, and it was consistent with Wal and Gary both being contributors. Gary pleaded guilty to his offense, attempted possession of marijuana with the intent to distribute, on March 21, 2023. Prentice, Duncan, and Mills each pleaded guilty to offenses involving the possession of controlled substances with the intent to distribute, and possession of firearms in furtherance of a drug trafficking offense. On June 24, 2022, Mills was sentenced to a 92-month term of imprisonment, to be followed by a three-year term of supervised release. Prentice was sentenced on July 6, 2022, to a 72-month term of imprisonment, and a three-year term of supervised release. Duncan is scheduled for sentencing on November 7, 2023. The investigation was conducted by the Lincoln Police Department and the Federal Bureau of Investigation. 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: Marion Man Sentenced to Federal Prison for Conspiring to Distribute Cocaine

component: USAO - Iowa, Northern

body_text: A man from Marion, Iowa, was sentenced today to 5 years in federal prison for his involvement in selling cocaine. Kain Cortez, age 25, from Marion, Iowa, received the prison term after a November 3, 2022 guilty plea to one count of conspiracy to distribute a controlled substance. Evidence at the plea and sentencing hearings showed that Cheyenne Gonzales and Cortez worked together to sell cocaine in the Cedar Rapids area between April and June 2022. Law enforcement utilized a confidential source to conduct controlled buys of cocaine from Gonzales, and Cortez was present with Gonzales during some of the controlled buys. On June 1, 2022, investigators observed a meeting between Gonzales, Cortez, and two other individuals outside of Gonzales’s and Cortez’s shared residence. On that date, Gonzales and Cortez paid approximately $15,000 in cash for half a kilogram of cocaine and approximately 20 pounds of marijuana. Cortez was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Cortez was sentenced to 60 months’ imprisonment. Cortez must also serve a 5-year term of supervised release after the prison term. There is no parole in the federal system. On November 14, 2022, Gonzales pled guilty to one count of conspiracy to distribute a controlled substance. Gonzales is scheduled to be sentenced on August 15, 2023. Cortez is being held in the United States Marshal’s custody until he can be transported to a federal prison. The case was prosecuted by Special Assistant United States Attorney Adam J. Vander Stoep and was investigated by the Drug Enforcement Administration (DEA) Task Force consisting of the DEA; the Linn County Sheriff's Office; the Cedar Rapids Police Department; the Marion Police Department; and the Iowa Division of Narcotics Enforcement. Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl . The case file number is 22-CR-00054. Follow us on Twitter @USAO_NDIA.


title: Ada Resident Sentenced For Aggravated Sexual Abuse

body_text: MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Jeffory Dan Hughes, age 55, of Ada, Oklahoma, was sentenced to 30 years in prison, followed by a lifetime term of supervised release, for sexually abusing a child under the age of twelve in Indian Country. The charges arose from investigations by the Federal Bureau of Investigation and the Chickasaw Nation Lighthorse Police Department. On September 1, 2022, Hughes pleaded guilty to one count of Aggravated Sexual Abuse in Indian Country. At the plea hearing, Hughes admitted that from 2006 to 2013, he engaged in sexual acts with a minor. The victim was under the age of twelve when the sexual abuse began. Hughes also admitted showing the child a pornographic video. The crimes occurred in Pontotoc County, within the boundaries of the Chickasaw Nation Reservation and within the Eastern District of Oklahoma. The Honorable Ronald A. White, Chief U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, presided over the hearing. Hughes 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.