title: Raytheon Company to Pay Over $950M in Connection with Defective Pricing, Foreign Bribery, and Export Control Schemes

component: Civil Division

body_text: Raytheon Company (Raytheon) — a subsidiary of Arlington, Virginia-based defense contractor RTX (formerly known as Raytheon Technologies Corporation) — will pay over $950 million to resolve the Justice Department’s investigations into: (i) a major government fraud scheme involving defective pricing on certain government contracts and (ii) violations of the Foreign Corrupt Practices Act (FCPA) and the Arms Export Control Act (AECA) and its implementing regulations, the International Traffic in Arms Regulations (ITAR). Raytheon will enter into a three-year deferred prosecution agreement (DPA) in connection with a criminal information filed today in the District of Massachusetts charging Raytheon with two counts of major fraud against the United States. As part of that resolution, Raytheon admitted to engaging in two separate schemes to defraud the Department of Defense (DOD) in connection with the provision of defense articles and services, including PATRIOT missile systems and a radar system. Separately, Raytheon entered into a three-year DPA in connection with a criminal information unsealed today in the Eastern District of New York charging Raytheon with two counts: conspiracy to violate the anti-bribery provision of the FCPA for a scheme to bribe a government official in Qatar and conspiracy to violate the AECA for willfully failing to disclose the bribes in export licensing applications with the Department of State as required by part 130 of ITAR. Both agreements require that Raytheon retain an independent compliance monitor for three years, enhance its internal compliance program, report evidence of additional misconduct to the Justice Department, and cooperate in any ongoing or future criminal investigations. Raytheon also reached a separate False Claims Act settlement with the department relating to the defective pricing schemes. The Justice Department’s FCPA and ITAR resolution is coordinated with the Securities and Exchange Commission (SEC). In addition, the Justice Department’s resolutions ensure that the appropriate federal agencies can proceed with determining whether Raytheon or any other individuals or entities associated with the company should be suspended or debarred as federal contractors. Pursuant to the Federal Acquisition Regulations (FAR), when more than one agency has an interest in an entity’s potential suspension or debarment, the FAR requires that the Interagency Suspension and Debarment Committee (ISDC) identify the lead agency for conducting governmentwide suspension or debarment proceedings. In connection with this resolution, the Justice Department has referred Raytheon’s factual admissions to the appropriate officials within the DOD to initiate the process with the ISDC to identify which federal agency will take the lead in such administrative proceedings, which occur independently of the Justice Department’s criminal and civil resolutions. “Raytheon engaged in criminal schemes to defraud the U.S. government in connection with contracts for critical military systems and to win business through bribery in Qatar,” said Deputy Assistant Attorney General Kevin Driscoll of the Justice Department’s Criminal Division. “Such corrupt and fraudulent conduct, especially by a publicly traded U.S. defense contractor, erodes public trust and harms the DOD, businesses that play by the rules, and American taxpayers. Today’s resolutions, with criminal and civil recoveries totaling nearly $1 billion, reflect the Criminal Division’s ability to tackle the most significant and complex white-collar cases across multiple subject matters.” “Government contractors have an obligation to be fully transparent about their cost and pricing data when they seek an award of a sole source contract,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department is committed to holding accountable those contractors that knowingly misrepresent their cost and pricing data or otherwise violate their legal obligations when negotiating or performing contracts with the United States.” “International corruption in military and defense sales is a violation of our national security laws as well as an anti-bribery offense,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “Raytheon willfully failed to disclose bribes made in connection with contracts that required export licenses. Today’s resolution should serve as a stark warning to companies that violate the law when selling sensitive military technology overseas.” “Over the course of several years, Raytheon employees bribed a high-level Qatari military official to obtain lucrative defense contracts and concealed the bribe payments by falsifying documents to the government, in violation of laws including those designed to protect our national security,” said U.S. Attorney Breon Peace for the Eastern District of New York. “We will continue to pursue justice against corruption, and as this agreement establishes, enforce meaningful consequences, reforms and monitorship to ensure this misconduct is not repeated.” “Through deliberate and deceptive actions, Raytheon not only defrauded the U.S. government — it compromised the integrity of our defense procurement process,” said Acting U.S. Attorney Joshua S. Levy for the District of Massachusetts. “Our office is committed to holding accountable those who prioritize profits over national security and clear legal obligations. This case underscores our unwavering commitment to pursuing justice, particularly when taxpayer dollars and DOD operations are at stake. We will continue to work tirelessly with our law enforcement partners to ensure that this type of misconduct is fully exposed and addressed with serious consequences.” “Investigating procurement fraud impacting DOD contracts is a top priority for the Defense Criminal Investigative Service (DCIS), the law enforcement arm of the DOD Office of Inspector General,” said Inspector General Robert Storch of DOD. “When DOD contractors fail to provide truthful pricing data and overcharge the government, they undermine the integrity of the DOD procurement process and harm critical DOD programs. The DCIS will continue to work with its law enforcement partners and the Justice Department to ensure DOD contractors that engage in defective pricing schemes are held accountable for their actions. The Defense Contract Audit Agency’s (DCAA’s) Operations Investigative Support Division provided valuable expertise during this investigation.” “The Raytheon Company set out to intentionally defraud the U.S. government,” said Assistant Director Chad Yarbrough of the FBI Criminal Investigative Division (CID). “This agreement highlights the importance of integrity when it comes to government contracting. The FBI, with its law enforcement partners, will continue to investigate these types of crimes that waste taxpayer dollars and prosecute all those who are intent on cooking up these major fraud schemes.” “Raytheon Corporation engaged in a systematic and deliberate conspiracy that knowingly and willfully violated U.S. fraud and export laws,” said Special Agent in Charge William S. Walker of Homeland Security Investigations (HSI) New York. “Raytheon’s bribery of government officials, specifically those involved in the procurement of U.S. military technology, posed a national security threat to both the United States and its allies. As this investigation reflects, national security continues to be a top priority for HSI New York. The global threats facing the United States have never been greater, and HSI New York is committed to working with our federal and international partners to ensure that sensitive U.S. technologies are not unlawfully and fraudulently acquired.” The Defective Pricing Case The Criminal Resolution According to admissions and court documents filed in the District of Massachusetts, from 2012 through 2013 and again from 2017 through 2018, Raytheon employees provided false and fraudulent information to the DOD during contract negotiations concerning two contracts with the United States for the benefit of a foreign partner — one to purchase PATRIOT missile systems and the other to operate and maintain a radar system. In both instances, Raytheon employees provided false and fraudulent information to DOD in order to mislead DOD into awarding the two contracts at inflated prices. These schemes to defraud caused the DOD to pay Raytheon over $111 million more than Raytheon should have been paid on the contracts. Under the terms of the DPA, Raytheon will pay a criminal monetary penalty of $146,787,972, pay $111,203,009 in victim compensation, and retain an independent compliance monitor for three years. The Justice Department has agreed to credit the victim compensation amount against restitution Raytheon pays to the Civil Division in its related, parallel False Claims Act proceeding. Pursuant to the DPA, in addition to the independent compliance monitor, Raytheon and RTX have agreed to continue to implement a compliance and ethics program at Raytheon designed to prevent and detect fraudulent conduct throughout its operations. Raytheon and RTX have also agreed to continue to cooperate with the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the District of Massachusetts in any ongoing or future criminal investigations. The Justice Department reached this resolution with Raytheon based on a number of factors, including, among others, the nature and seriousness of the offense conduct, which involved two separate schemes to defraud the U.S. government. Raytheon received credit for its affirmative acceptance of responsibility and cooperation with the department’s investigation, which included (i) facilitating interviews with current and former employees; (ii) providing information obtained through its internal investigation, which allowed the department to preserve and obtain evidence as part of its own independent investigation; (iii) making detailed presentations to the department; (iv) proactively identifying key documents in the voluminous materials collected and produced; (v) engaging experts to conduct financial analyses; and (vi) demonstrating its willingness to disclose all relevant facts by analyzing whether the crime-fraud exception applied to certain potentially privileged documents and releasing the documents that it deemed fell within the exception. However, in the initial phases of the investigation prior to March 2022, Raytheon’s cooperation was limited by unreasonably slow document productions. Raytheon also engaged in timely remedial measures, including (i) terminating certain employees who were responsible for the misconduct; (ii) establishing a broad defective pricing awareness campaign; (iii) developing and implementing policies, procedures, and controls relating to defective pricing compliance; and (iv) engaging additional resources with appropriate expertise to evaluate and test the new policies, procedures, and controls relating to defective pricing compliance. In light of these considerations, as well as Raytheon’s prior history, the criminal penalty calculated under the U.S. Sentencing Guidelines reflects a 25% reduction off the 10th percentile above the low end of the otherwise applicable guidelines fine range. The False Claims Act Settlement Raytheon also entered into a civil False Claims Act settlement to resolve allegations that it provided untruthful certified cost or pricing data when negotiating prices with the DOD for numerous government contracts and double billed on a weapons maintenance contract. Under the False Claims Act settlement, which is the second largest government procurement fraud recovery under the Act, Raytheon will pay $428 million for knowingly failing to provide truthful certified cost and pricing data during negotiations on numerous government contracts between 2009 and 2020, in violation of the Truth in Negotiations Act (TINA). Congress enacted TINA in 1962 to help level the playing field in sole source contracts — where there is no price competition — by making sure that government negotiators have access to the cost or pricing data that the offeror used when developing its proposal. As part of the settlement, Raytheon admitted that it failed to disclose cost or pricing data, as required by TINA, regarding its labor and material costs to supply weapon systems to DOD. Raytheon also admitted that by misrepresenting its costs during contract negotiations it overcharged the United States on these contracts and received profits in excess of the negotiated profit rates. Further, Raytheon admitted that it failed to disclose truthful cost or pricing data on a contract to staff a radar station. Raytheon also admitted that it billed the same costs twice on a DOD contract. As part of the civil resolution, Raytheon received credit under the Justice Department’s guidelines for taking disclosure, cooperation, and remediation into account in False Claims Act cases for cooperation provided by RTX. That cooperation included conducting and disclosing the results of an internal investigation, disclosing relevant facts and material not known to the government but relevant to its investigation, providing the department with inculpatory evidence, conducting a damages analysis, identifying and separating individuals responsible for or involved in the misconduct, admitting liability and accepting responsibility for the misconduct, and improving its compliance programs. “The Defense Department greatly appreciates the Justice Department’s outstanding efforts culminating in this significant recovery,” said Principal Director of Defense Pricing, Contracting, and Acquisition Policy John Tenaglia of DOD. “The price we pay for equipment and services absolutely matters. The more we pay, the less combat capability we can deliver for our nation’s warfighters. This Justice Department recovery both restores funding that will be used to acquire more capability while also serving as a strong deterrent to all companies that might seek to deny DOD contracting officers the factual information they require to negotiate contracts at fair and reasonable prices.” The civil settlement includes the resolution of a lawsuit filed under the qui tam or whistleblower provision of the False Claims Act, which permits private parties to file suit on behalf of the United States for false claims and share in a portion of the government’s recovery. The qui tam lawsuit was filed by Karen Atesoglu, a former Raytheon employee, and is captioned United States ex rel. Atesoglu v. Raytheon Technologies Corporation , 21-CV-10690-PBS (DMA). Ms. Atesoglu will receive $4.2 million as her share of the settlement. The FCPA Case According to admissions and court documents filed in the Eastern District of New York, between approximately 2012 and 2016, Raytheon, through certain of its employees and agents, engaged in a scheme to bribe a high-level official at the Qatar Emiri Air Force (QEAF), a branch of Qatar’s Armed Forces (QAF) that was primarily responsible for the conduct of air warfare, in order to assist Raytheon in obtaining and retaining business from the QEAF and QAF. Raytheon entered into and made payments on sham subcontracts for air defense operations-related studies in order to corruptly obtain the QEAF official’s assistance in securing certain air defense contracts. Raytheon also entered into a teaming agreement with a Qatari entity in order to corruptly obtain the QEAF official’s assistance in directly awarding a potential contract to Raytheon to build a joint operations center that would interface with Qatar’s several military branches. Under the terms of the DPA, Raytheon will pay a criminal monetary penalty of $230.4 million, pay forfeiture of $36,696,068, and retain an independent compliance monitor for three years. In addition, as part of the resolution of the SEC’s parallel investigation, Raytheon will pay approximately $49.1 million in disgorgement and prejudgment interest and a civil penalty of $75 million ($22.5 million of which will be credited against the criminal monetary penalty). The Justice Department has agreed to credit approximately $7.4 million of the disgorgement Raytheon pays to the SEC against the criminal forfeiture. As part of the DPA, Raytheon and RTX have agreed to continue to cooperate with the Criminal Division’s Fraud Section, the National Security Division’s Counterintelligence and Export Control Section, and the U.S. Attorney’s Office for the Eastern District of New York in any ongoing or future criminal investigations. In addition to the independent compliance monitor, Raytheon and RTX have agreed to continue to enhance Raytheon’s compliance program. The Justice Department reached this resolution with Raytheon based on a number of factors, including, among others, the nature and seriousness of the offense. Raytheon received credit for its affirmative acceptance of responsibility and cooperation with the department’s investigation, which included (i) providing information obtained through its internal investigation, which allowed the government to preserve and obtain evidence as part of its own independent investigation; (ii) facilitating interviews with current and former employees; (iii) making detailed factual presentations to the government; (iv) proactively disclosing certain evidence of which the government was previously unaware and identifying key documents in materials it produced; and (v) engaging experts to conduct financial analyses. However, in the initial phases of the investigation, prior to in or around 2022, Raytheon was at times slow to respond to the government’s requests and failed to provide relevant information in its possession. Raytheon also engaged in timely remedial measures, including (i) recalibrating third party review and approval processes to lower company risk tolerance; (ii) implementing enhanced controls over sales intermediary payments; (iii) hiring empowered subject matter experts to oversee its anti-corruption compliance program and third party management; (iv) implementing data analytics to improve third party monitoring; and (v) developing a multipronged communications strategy to enhance ethics and compliance training and communications. In light of these considerations, as well as Raytheon’s prior history, the criminal penalty calculated under the U.S. Sentencing Guidelines reflects a 20% reduction off the 20th percentile above the low end of the otherwise applicable guidelines fine range. The ITAR Case According to admissions and court documents filed in the Eastern District of New York, between approximately 2012 and 2016, Raytheon, through certain of its employees and agents, engaged in a scheme to willfully violate the AECA and ITAR Part 130 by failing to disclose to the State Department, Directorate of Defense Trade Controls, fees and commissions paid in connection with two Qatar-related contracts — specifically, the bribes Raytheon paid to the high-level QEAF official through sham subcontracts. The Justice Department reached this resolution with Raytheon based on a number of factors, including, among others, the nature and seriousness of the offense. Raytheon received credit for its cooperation with the department’s investigation, which included (i) gathering evidence of interest to the government and proactively identifying key documents related to willful ITAR-related misconduct; (ii) making factual presentations concerning the ITAR-related misconduct; and (iii) facilitating witness interviews and expediting the government’s ability to meet with witnesses. Raytheon did not receive full credit for its cooperation because in the initial phase of the investigation, before the National Security Division joined the investigation, it failed to provide information relevant to the ITAR violations beyond what was requested in the FCPA investigation. Raytheon also received credit for remediation, which included, in addition to the remediation described above in connection with the FCPA case, (i) hiring additional empowered subject matter experts in legal and compliance; (ii) developing a multipronged communications strategy to enhance ethics and compliance training and communications; and (iii) making enhancements to its ITAR-related compliance program. In light of these considerations, the ITAR-related financial penalty of $21,904,850 includes a cooperation and remediation credit of 20% off the otherwise applicable penalty. ****** DCIS, Army Criminal Investigation Division, FBI, and Air Force Office of Special Investigations are investigating the criminal defective pricing case. Senior Auditor Glen Hughes from DCAA’s Office of Investigative Support Division assisted in the civil investigation of the False Claims Act Matter. HSI and the FBI’s International Corruption Unit are investigating the FCPA and ITAR case. The Justice Department’s Office of International Affairs assisted in the investigation for the FCPA and ITAR case. Assistant Chief Kyle Hankey, Acting Assistant Chief Laura Connelly, and Trial Attorney Tamara Livshiz of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Brian LaMacchia and Benjamin Saltzman for the District of Massachusetts are prosecuting the criminal defective pricing case. Attorneys Art J. Coulter, Patrick Klein, and Jared S. Wiesner of the Civil Division’s Commercial Litigation Branch, Fraud Section, and Assistant U.S. Attorney Brian LaMacchia for the District of Massachusetts are prosecuting the False Claims Act matter. Acting Assistant Chief Katherine Raut and Trial Attorney Elina A. Rubin-Smith of the Criminal Division’s Fraud Section, Trial Attorneys Christine Bonomo and Leslie Esbrook of the National Security Division’s Counterintelligence and Export Control Section, and Assistant U.S. Attorneys David Pitluck, Hiral Mehta, and Jessica Weigel for the Eastern District of New York are prosecuting the FCPA and ITAR case. The Justice Department also expresses its appreciation for the assistance provided by the State Department and the legal offices of the Army, Air Force, Defense Logistics Agency, Defense Contract Management Agency, and Department of Navy. The Criminal Division’s Fraud Section is responsible for investigating and prosecuting FCPA and Foreign Extortion Prevention Act matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal-fraud/foreign-corrupt-practices-act . View the Executed Civil False Claims Act Settlement Agreement here .


title: Raytheon Company to Pay Over $950 Million in Connection With Foreign Bribery, Export Control and Defective Pricing Schemes

component: USAO - New York, Eastern

body_text: BROOKLYN, NY – Raytheon Company (Raytheon), a subsidiary of Arlington, Virginia-based defense contractor RTX (formerly known as Raytheon Technologies Corporation), entered into a three-year deferred prosecution agreement (DPA) with the Department of Justice in connection with a criminal information unsealed today in the Eastern District of New York charging Raytheon with two counts: conspiracy to violate the anti-bribery provision of the Foreign Corrupt Practices Act (FCPA) for engaging in a scheme to bribe a government official in Qatar and conspiracy to violate the Arms Export Control Act (AECA) by willfully failing to disclose the bribes in export licensing applications with the Department of State. Separately, Raytheon will enter into a three-year deferred prosecution agreement (DPA) in connection with a criminal information filed today in the District of Massachusetts charging Raytheon with two counts of major fraud against the United States. As part of that resolution, Raytheon admitted to engaging in two separate schemes to defraud the Department of Defense (DOD) in connection with the provision of defense articles and services, including PATRIOT missile systems and a radar system. Both agreements require that Raytheon retain an independent compliance monitor for three years, enhance its internal compliance program, report evidence of additional misconduct to the Justice Department, and cooperate in any ongoing or future criminal investigations. Raytheon also reached a separate False Claims Act settlement with the department relating to the defective pricing schemes. The Justice Department’s FCPA and ITAR resolution is coordinated with the Securities and Exchange Commission (SEC). In addition, the Justice Department’s resolutions ensure that the appropriate federal agencies can proceed with determining whether Raytheon or any other individuals or entities associated with the company should be suspended or debarred as federal contractors. Pursuant to the Federal Acquisition Regulations (FAR), when more than one agency has an interest in an entity’s potential suspension or debarment, the FAR requires that the Interagency Suspension and Debarment Committee (ISDC) identify the lead agency for conducting government-wide suspension or debarment proceedings. In connection with this resolution, the Justice Department has referred Raytheon’s factual admissions to the appropriate officials within the Department of Defense to initiate the process with the ISDC to identify which federal agency will take the lead in such administrative proceedings, which occur independently of the Justice Department’s criminal and civil resolutions. Breon Peace, United States Attorney for the Eastern District of New York; Kevin Driscoll, Deputy Assistant Attorney General Kevin Driscoll of the Justice Department’s Criminal Division; Matthew G. Olsen, Assistant Attorney General for the Justice Department’s National Security Division; Chad Yarbrough, Assistant Director, Criminal Investigative Division, Federal Bureau of Investigation (FBI) and William S. Walker, Special Agent in Charge, U.S. Department of Homeland Security, Homeland Security Investigations (HSI), New York, announced the resolution. “Over the course of several years, Raytheon employees bribed a high-level Qatari military official to obtain lucrative defense contracts and concealed the bribe payments by falsifying documents to the government, in violation of laws including those designed to protect our national security,” stated United States Attorney Peace. “We will continue to pursue justice against corruption, and as this agreement establishes, enforce meaningful consequences, reforms and monitorship to ensure this misconduct is not repeated.” Mr. Peace expressed his appreciation to the Securities and Exchange Commission (SEC) and the U.S. Department of State for their work on the case. “Raytheon engaged in criminal schemes to defraud the U.S. government in connection with contracts for critical military systems and to win business through bribery in Qatar,” stated Deputy Assistant Attorney General Driscoll. “Such corrupt and fraudulent conduct, especially by a publicly traded U.S. defense contractor, erodes public trust and harms the Department of Defense, businesses that play by the rules, and American taxpayers. Today’s resolutions, with criminal and civil penalties totaling nearly $1 billion, reflect the Criminal Division’s ability to tackle the most significant and complex white-collar cases across multiple subject matters.” “International corruption in military and defense sales is a violation of our national security laws as well as an anti-bribery offense,” stated Assistant Attorney General Olsen. “Raytheon willfully failed to disclose bribes made in connection with contracts that required export licenses. Today’s resolution should serve as a stark warning to companies that violate the law when selling sensitive military technology overseas.” “The Raytheon Company set out to intentionally defraud the U.S. government,” stated FBI Assistant Director Yarbrough. “This agreement highlights the importance of integrity when it comes to government contracting. The FBI, with its law enforcement partners, will continue to investigate these types of crimes that waste taxpayer dollars and prosecute all those who are intent on cooking up these major fraud schemes.” “Raytheon Corporation engaged in a systematic and deliberate conspiracy that knowingly and willfully violated U.S. fraud and export laws,” stated HSI New York Special Agent in Charge Walker. “Raytheon’s bribery of government officials, specifically those involved in the procurement of U.S. military technology, posed a national security threat to both the U.S. and its allies. As this investigation reflects, national security continues to be a top priority for HSI New York. The global threats facing the U.S. have never been greater, and HSI New York is committed to working with our federal and international partners to assure sensitive U.S. technologies are not unlawfully and fraudulently acquired.” The FCPA Case According to admissions and court documents filed in the Eastern District of New York, between approximately 2012 and 2016, Raytheon, through certain of its employees and agents, engaged in a scheme to bribe a high-level official at the Qatar Emiri Air Force (QEAF), a branch of Qatar’s Armed Forces (QAF) that was primarily responsible for the conduct of air warfare, to assist Raytheon in obtaining and retaining business from the QEAF and QAF. Raytheon entered into and made payments on sham contracts for air defense operations-related studies to corruptly obtain the Qatari official’s assistance in securing certain air defense contracts. Raytheon also entered into a teaming agreement with a Qatari entity to corruptly obtain the Qatari official’s assistance in directly awarding a contract to Raytheon, without a competitive bid, to build a joint operations center that would interface with Qatar’s several military branches. Under the terms of the DPA, Raytheon will pay a criminal monetary penalty of over $252.3 million, criminal forfeiture of over $36.6 million and retain an independent compliance monitor for three years. In addition, as part of the resolution of the SEC’s parallel investigation, Raytheon will pay approximately $49.1 million in disgorgement and prejudgment interest and a civil penalty of $75 million, $22.5 million of which will be credited against the criminal monetary penalty. The Department has agreed to credit approximately $7.4 million of the disgorgement Raytheon pays to the SEC against the criminal forfeiture. As part of the DPA, Raytheon and RTX have agreed to continue to cooperate with the U.S. Attorney’s Office for the Eastern District of New York, the Criminal Division’s Fraud Section and the National Security Division’s Counterintelligence and Export Control Section in any ongoing or future criminal investigations relating to this and other conduct. In addition, Raytheon and RTX have agreed to continue to enhance Raytheon’s compliance program. The Department reached this resolution with Raytheon based on a number of factors, including, among others, the nature and seriousness of the offense. Raytheon received credit for its cooperation with the Department’s investigation, which included: Providing information obtained through its internal investigation, which allowed the government to preserve and obtain evidence as part of its own independent investigation; Facilitating interviews with current and former employees; Making detailed factual presentations to the government; Proactively disclosing certain evidence of which the government was previously unaware and identifying key documents in materials it produced; and Engaging experts to conduct financial analyses. Raytheon also engaged in timely remedial measures, including: Recalibrating third party review and approval processes to lower company risk tolerance; Implementing enhanced controls over sales intermediary payments; Hiring empowered subject matter experts to oversee its anti-corruption compliance program and third party management; Implementing data analytics to improve third party monitoring; and Developing a multipronged communications strategy to enhance ethics and compliance training and communications. However, in determining the appropriate cooperation credit, the government also took into account the fact that, in the initial phases of the investigation, prior to in or around 2022, Raytheon was at times slow to respond to the government’s requests and failed to provide relevant information in its possession; for example, Raytheon withheld relevant, material information from the government and gave incomplete and misleading presentations regarding the nature and scope of a relevant third-party intermediary relationship. In light of these considerations, as well as Raytheon’s prior history, which includes three prior civil or regulatory enforcement actions: (i) a 2013 consent agreement with the U.S. State Department concerning civil ITAR and Arms Export Control Act violations, in connection with which Raytheon agreed to hire an independent special compliance officer to oversee the four-year consent decree while at the same time engaging in the conduct described in the DPA; (ii) a civil settlement with the Environmental Protection Agency in 2007 concerning payments to clean up contamination sites; and (iii) a resolution with the SEC in 2006 concerning false and misleading disclosures and improper accounting practices, the criminal penalty calculated under the U.S. Sentencing Guidelines reflects a 20% reduction off the twentieth percentile above the low end of the otherwise applicable Guidelines fine range. The ITAR Case According to admissions and court documents filed in the Eastern District of New York, between approximately 2012 and 2016, Raytheon, through certain of its employees and agents, engaged in a scheme to willfully violate the AECA and ITAR Part 130 by failing to disclose to the United States Department of State, Directorate of Defense Trade Controls, fees and commissions paid in connection with two Qatar-related contracts – specifically, the bribes Raytheon paid to the high-level QEAF official through sham subcontracts. The Department reached this resolution with Raytheon based on a number of factors, including, among others, the nature and seriousness of the offense. Raytheon received credit for its cooperation with the Department’s investigation, which included: Gathering evidence of interest to the government and proactively identifying key documents related to willful ITAR-related misconduct; Making factual presentations concerning the ITAR-related misconduct; and Facilitating witness interviews and expediting the government’s ability to meet with witnesses. Raytheon also received credit for remediation, which included, in addition to the remediation described above in connection with the FCPA case: Hiring additional empowered subject matter experts in legal and compliance; Developing a multipronged communications strategy to enhance ethics and compliance training and communications; and Making enhancements to its ITAR-related compliance program. Raytheon did not receive full credit for its cooperation because in the initial phase of the investigation, it failed to provide information relevant to the ITAR violations beyond what was requested in the FCPA investigation. In light of these considerations, the ITAR-related financial penalty of $21,904,850 includes a cooperation and remediation credit of 20 percent off the otherwise applicable penalty. The Defective Pricing Case According to admissions and court documents filed in the District of Massachusetts, from 2012 through 2013 and again from 2017 through 2018, Raytheon employees provided false and fraudulent information to the DOD during contract negotiations concerning two contracts with the United States for the benefit of a foreign partner — one to purchase PATRIOT missile systems and the other to operate and maintain a radar system. In both instances, Raytheon employees provided false and fraudulent information to DOD in order to mislead DOD into awarding the two contracts at inflated prices. These schemes to defraud caused the DOD to pay Raytheon over $111 million more than Raytheon should have been paid on the contracts. Under the terms of the DPA, Raytheon will pay a criminal monetary penalty of $146,787,972, pay $111,203,009in victim compensation, and retain an independent compliance monitor for three years. The Justice Department has agreed to credit the victim compensation amount against restitution Raytheon pays to the Civil Division in its related, parallel False Claims Act proceeding. Pursuant to the DPA, in addition to the independent compliance monitor, Raytheon and RTX have agreed to continue to implement a compliance and ethics program at Raytheon designed to prevent and detect fraudulent conduct throughout its operations. Raytheon and RTX have also agreed to continue to cooperate with the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the District of Massachusetts in any ongoing or future criminal investigations. The Justice Department reached this resolution with Raytheon based on a number of factors, including, among others, the nature and seriousness of the offense conduct, which involved two separate schemes to defraud the U.S. government. Raytheon received credit for its affirmative acceptance of responsibility and cooperation with the department’s investigation, which included (i) facilitating interviews with current and former employees; (ii) providing information obtained through its internal investigation, which allowed the department to preserve and obtain evidence as part of its own independent investigation; (iii) making detailed presentations to the department; (iv) proactively identifying key documents in the voluminous materials collected and produced; (v) engaging experts to conduct financial analyses; and (vi) demonstrating its willingness to disclose all relevant facts by analyzing whether the crime-fraud exception applied to certain potentially privileged documents and releasing the documents that it deemed fell within the exception. However, in the initial phases of the investigation prior to March 2022, Raytheon’s cooperation was limited by unreasonably slow document productions. Raytheon also engaged in timely remedial measures, including (i) terminating certain employees who were responsible for the misconduct; (ii) establishing a broad defective pricing awareness campaign; (iii) developing and implementing policies, procedures, and controls relating to defective pricing compliance; and (iv) engaging additional resources with appropriate expertise to evaluate and test the new policies, procedures, and controls relating to defective pricing compliance. In light of these considerations, as well as Raytheon’s prior history, the criminal penalty calculated under the U.S. Sentencing Guidelines reflects a 25% reduction off the tenth percentile above the low end of the otherwise applicable guidelines fine range. The False Claims Act Settlement Raytheon also entered into a civil False Claims Act settlement to resolve allegations that it provided untruthful certified cost or pricing data when negotiating prices with the DOD for numerous government contracts and double billed on a weapons maintenance contract. Under the False Claims Act settlement, which is the second largest government procurement fraud recovery under the Act, Raytheon will pay $428 million for knowingly failing to provide truthful certified cost and pricing data during negotiations on numerous government contracts between 2009 and 2020, in violation of the Truth in Negotiations Act (TINA). Congress enacted TINA in 1962 to help level the playing field in sole source contracts — where there is no price competition — by making sure that government negotiators have access to the cost or pricing data that the offeror used when developing its proposal. As part of the settlement, Raytheon admitted that it failed to disclose cost or pricing data, as required by TINA, regarding its labor and material costs to supply weapon systems to DOD. Raytheon also admitted that by misrepresenting its costs during contract negotiations it overcharged the United States on these contracts and received profits in excess of the negotiated profit rates. Further, Raytheon admitted that it failed to disclose truthful cost or pricing data on a contract to staff a radar station. Raytheon also admitted that it billed the same costs twice on a DOD contract. As part of the civil resolution, Raytheon received credit under the Justice Department’s guidelines for taking disclosure, cooperation, and remediation into account in False Claims Act cases for cooperation provided by RTX. That cooperation included conducting and disclosing the results of an internal investigation, disclosing relevant facts and material not known to the government but relevant to its investigation, providing the department with inculpatory evidence, conducting a damages analysis, identifying and separating individuals responsible for or involved in the misconduct, admitting liability and accepting responsibility for the misconduct, and improving its compliance programs. The civil settlement includes the resolution of a lawsuit filed under the qui tam or whistleblower provision of the False Claims Act, which permits private parties to file suit on behalf of the United States for false claims and share in a portion of the government’s recovery. The qui tam lawsuit was filed by Karen Atesoglu, a former Raytheon employee, and is captioned United States ex rel. Atesoglu v. Raytheon Technologies Corporation , 21-CV-10690-PBS (D. Mass.). Ms. Atesoglu will receive $4.2 million as her share of the settlement. * * * * * In July 2022, Mr. Peace was selected as the Chairperson of the White Collar Fraud subcommittee for the Attorney General’s Advisory Committee (AGAC) . As the leader of the subcommittee, Mr. Peace plays a key role in making recommendations to the AGAC to facilitate the prevention, investigation and prosecution of various financially motivated, non-violent crimes including the FCPA. The FCPA and ITAR investigation was conducted by HSI and the FBI’s International Corruption Unit. The government’s case is being handled by the Office’s Business and Securities Fraud Section, the Criminal Division’s Fraud Section and the National Security Division’s Counterintelligence and Export Control Section. Assistant United States Attorneys David Pitluck, Hiral Mehta and Jessica Weigel are prosecuting the case with Acting Assistant Chief Katherine Raut and Trial Attorney Elina A. Rubin-Smith of the Fraud Section, and Trial Attorneys Christine Bonomo and Leslie Esbrook of the Counterintelligence and Export Control Section, with assistance from Eastern District of New York Paralegal Specialist Liam McNett. The Defendant : THE RAYTHEON COMPANY Waltham, Massachusetts E.D.N.Y. Docket No.: 24-CR-399 (RER)


title: Rhode Island Businesswoman Admits to Failing to Pay More Than $1.2 Million Dollars in Payroll and Individual Taxes

component: USAO - Rhode Island

body_text: PROVIDENCE, RI – The president of a Rhode Island electrical service business today admitted to a federal judge that she failed to pay over to the Internal Revenue Service (IRS) more than $1.2 million dollars in payroll taxes deducted from employees’ paychecks, and in individual income taxes when she falsely claimed on joint individual tax returns that employment taxes were withheld and paid to the IRS, when, in fact, no such payments were made to the IRS, announced United States Attorney Zachary A. Cunha. Gail M. Hynson, 59, president of Hynson Electrical Services, Inc. pleaded guilty to ten counts of failure to account for and pay over payroll taxes and three counts of filing a false tax return. She is scheduled to be sentenced on January 14, 2025. The defendant’s sentences will be determined by a federal district judge after consideration of the U.S. Sentencing Guidelines and other statutory factors. “This defendant made a conscious choice to try and divert her payroll tax obligations as a business owner into her own pockets,” remarked U.S. Attorney Cunha. “Crimes like this impact not just the workers whose employer payroll taxes went unpaid, but all of our communities, which suffer when the taxes that benefit the common good go unpaid. Today’s conviction should send the clear message that this office will hold tax cheats accountable.” “Gail Hynson chose to steal from the IRS to enrich herself, when she failed to pay over the taxes she withheld from her own employees.” said IRS CI Special Agent in Charge Harry T Chavis Jr. "Based on Hynson’s actions, her employees could have been at risk to pay their payroll taxes twice, until her egregious activity was uncovered -- first through their withholdings, that were stolen by Hynson, and second when they filed their income taxes and had no withholdings reported. However, if, as here, the IRS discovers that an employer withheld these payroll taxes (also known as "trust-fund taxes"), but failed to pay them over to the government, the employee is credited with having paid the taxes, and the government may not require any additional payment from the employee." As reflected in charging documents and information presented to the court, from 2016 to 2020, Hynson Electrical Services, Inc. employed approximately 13 employees. Beginning in the 3 rd quarter of 2018, and continuing through the 4 th quarter of 2020, the business withheld employment taxes from its employees’ paychecks, to include federal income taxes, and Medicare and Social Security taxes, but never turned the funds over to the IRS. Additionally, during that time, the company failed to file Employer Quarterly Federal Income Tax Returns with the government. Acting in her capacity as company bookkeeper, Gail Hynson created W2s for her and her husband for tax years 2017, 2018, and 2020. Information contained on the W2s, and incorporated on their personal joint tax returns, reflected that a total of $18,418 in employment taxes had been withheld from their paychecks and paid to the IRS, when in fact she knew that no money had been paid over to the government. The case is being prosecuted by Assistant United States Attorney Ly T. Chin. The matter was investigated by the Internal Revenue Service Criminal Investigation. ###


title: Husband Of Daycare Operator Sentenced To 45 Years In Prison In Connection With Fentanyl Poisoning Of Four Children At A Bronx Daycare

component: USAO - New York, Southern

body_text: Damian Williams, the United States Attorney for the Southern District of New York, announced today that FELIX HERRERA GARCIA was sentenced to 45 years in prison for trafficking fentanyl out of a daycare in the Bronx, which resulted in the death of one child and the poisoning of three others. Herrera Garcia pled guilty on June 10, 2024, before United States District Judge Jed S. Rakoff, who imposed today’s sentence. U.S. Attorney Damian Williams said: “Felix Herrera Garcia operated a deadly fentanyl trafficking enterprise out of a Bronx daycare, recklessly putting babies at risk of fentanyl exposure. Tragically, on September 15, 2023, one child was killed and four others were poisoned at the daycare by the defendant’s deadly drugs. This case demonstrates the deadly reach and scope of the fentanyl epidemic, and the profound damage it inflicts on American lives, including the lives of the most vulnerable among us. This Office and our law enforcement partners will work tirelessly to ensure that anyone who harms or risks the lives of children in connection with their deadly narcotics activities will be brought to justice.” According to the Complaint, the Indictment, and other documents in the public record: From at least in or about October 2022 through September 2023, HERRERA GARCIA and others conspired to distribute narcotics out of Divino Niño Daycare (the “Daycare”) in the Bronx. There, HERRERA GARCIA and his co-conspirators maintained more than eleven kilograms of fentanyl and heroin in secret compartments, or traps, located underneath the floor tiles in the playroom of the Daycare, where the children played, ate, and slept on a daily basis. As a consequence of the drug conspiracy perpetrated by HERRERA GARCIA and his co-conspirators, on or about September 15, 2023, four children at the Daycare, all of whom were under three years of age, experienced the effects of poisoning from exposure to fentanyl. Three of the children were hospitalized. The fourth child, 22-month-old boy, died. * * * In addition to the prison term, HERRERA GARCIA, 35, of the Bronx, New York, was sentenced to 5 years of supervised release. Mr. Williams praised the outstanding investigative work of the Drug Enforcement Administration (“DEA”), the New York City Police Department (“NYPD”), the Southern District of New York Digital Forensic Unit, the Complex Analytical and Social Media Enhancement Team at the New York/New Jersey High Intensity Drug Trafficking Area, the Organized Crime Drug Enforcement Task Force (“OCDETF”) New York Strike Force, and the United States Marshals Service (“USMS”). Mr. Williams also thanks the NY/NJ Regional Fugitive Task Force of the USMS, the USMS Office of International Operations, the USMS for the Southern District of New York, the USMS for the Southern District of Texas, the USMS for the Southern District of California, the USMS Mexico Field Office, the USMS Investigative Operations Division, the DEA New York Strike Force, the DEA Regional Office in Allentown, Pennsylvania, the DEA Regional Office in McAllen, Texas, the DEA Regional Office in Mexico City, Mexico, the DEA Regional Office in Hermosillo, Mexico, the DEA Regional Office in Monterrey, Mexico, the DEA Special Operations Division, the NYPD 52nd Precinct’s Detective Squad, the NYPD Bronx Homicide Squad, the NYPD Laboratory, the Office of International Affairs of the Justice Department’s Criminal Division, the U.S. Attorney’s Office for the Southern District of Texas, the U.S. Attorney’s Office for the Southern District of California, U.S. Customs and Border Protection, and Mexican Federal and State authorities. The OCDETF New York Strike Force provides for the establishment of permanent, multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations. The specific mission of the New York Strike Force is to target, disrupt, and dismantle drug trafficking and money laundering organizations, reduce the illegal drug supply in the United States, and bring criminals to justice. This case is being prosecuted by the Office’s Narcotics Unit. Assistant U.S. Attorneys Brandon C. Thompson, Maggie Lynaugh, and Justin Rodriguez, as well as Special Assistant U.S. Attorney Karl P. Miller of the Office of the Bronx County District Attorney’s Homicide Bureau, are in charge of the prosecution.


title: Warner Robins Man Sentenced to Prison for Trafficking Meth

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

body_text: MACON, Ga. – A member of an armed methamphetamine and fentanyl trafficking organization operating in Middle Georgia was sentenced to serve more than 19 years in prison for his crime. Travis Warthen aka “Trap,” 40, of Warner Robins, was sentenced to serve 235 months in prison to be followed by five years of supervised release. Warthen previously pleaded guilty to conspiracy to possess with intent to distribute controlled substances on Sept. 28, 2023. U.S. District Judge C. Ashley Royal handed down the sentence on Oct. 16. There is no parole in the federal system. “Travis Warthen is a repeat armed drug trafficker who put the community at additional risk when he dangerously attempted to outrun law enforcement at high speeds, which he’s done before,” said U.S. Attorney Peter D. Leary. “Our office and our law enforcement partners are focused on combatting dangerous armed drug trafficking organizations, which heighten violent crime in our communities.” “Violent and dangerous drug traffickers are enriching their lives by profiting off someone else’s pain and addiction,” stated Robert J. Murphy, Special Agent in Charge of the DEA Atlanta Division. “Travis Warthen will now face significant federal prison time for his crime.” “This organized criminal network peddled poison onto the streets of our community,” said Peach County Sheriff Terry W. Deese. “Most law enforcement agencies don’t have the resources to handle investigations to combat organizations like this one. We are fortunate to have federal, state and local law enforcement agencies in Middle Georgia that recognize the benefit of working together to keep our communities safe.” The following codefendants have been sentenced to prison: Heather Marie Breland, 40, of Atlanta, was sentenced to serve 240 months in prison on Aug. 14. Breland previously pleaded guilty to one count of aiding and abetting others to possess with intent to distribute more than fifty grams of methamphetamine on Oct. 5, 2023; Randall Heath, 64, of Macon, was sentenced to serve 100 months in prison on Aug. 13. Heath previously pleaded guilty to one count of possession with intent to distribute methamphetamine on Oct. 5, 2023; Raiford Reeves aka “RH,” 44, of Warner Robins, Georgia, was sentenced to serve 210 months in prison on May 15. Reeves previously pleaded guilty to distribution of methamphetamine on March 29, 2023; Jeremiah Kaleta, 47, of Warner Robins, was sentenced to serve 77 months in prison on July 23. Kaleta previously pleaded guilty to conspiracy to possess with intent to distribute methamphetamine on Oct. 3, 2023; Lucretia Snellgrove, 52, of Warner Robins, was sentenced to serve 70 months in prison on Jan. 24. Snellgrove previously pleaded guilty to possession with intent to distribute methamphetamine on July 12, 2023; Kendall Howard, 32, of Centerville, Georgia, was sentenced to serve 18 months in prison on Jan. 24. Howard previously pleaded guilty to use of a communication facility to unlawfully conspire to possess with intent to distribute methamphetamine on July 12, 2023; Luis Acosta, 36, of Centerville, was sentenced to time served on Jan. 24. Acosta previously pleaded guilty to use of a communication facility to unlawfully conspire to possess with intent to distribute controlled substances on June 16, 2023; and Kenneth Maddox, 32, of Warner Robins, was sentenced to serve four years of probation on Oct. 16. Maddox previously pleaded guilty to use of a communication facility to unlawfully conspire to possess with intent to distribute methamphetamine on June 15, 2023. According to court documents and statements made in court, between Oct. 2021 and June 2022, DEA agents and local law enforcement investigated a drug trafficking organization (DTO) led by co-defendant Reeves and several of his criminal associates including Warthen and Breland. Breland—the supplier to this DTO—was distributing kilogram quantities of narcotics, primarily methamphetamine and fentanyl, to Reeves out of her condominium located in Atlanta’s Buckhead neighborhood. Law enforcement obtained court orders to intercept the phone calls and text messages from cell phones belonging to Breland and Reeves and conducted controlled purchases of methamphetamine from Reeves. Reeves would supply other co-defendants, including Warthen, with some of the narcotics to sell. On May 25, 2022, Reeves obtained methamphetamine from Breland in Atlanta and met with Warthen in Warner Robins to supply him with the illegal narcotic. After the transaction, agents followed Warthen and attempted a traffic stop. Warthen fled from authorities, driving into oncoming traffic and reaching speeds more than 100 miles per hour. The defendant lost control and wrecked before exiting the vehicle and running on foot. Warthen fell to the ground and was eventually detained. Agents seized a stolen 9mm caliber handgun under the front passenger seat and found a blue plastic container holding 274.2 grams of methamphetamine in the rear floorboard area. Warthen has a lengthy criminal history including prior felony convictions in both state and federal courts for illegal drug distribution. This effort is part of an Organized Crime Drug Enforcement Task Force (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven and multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF . The case was investigated by the Drug Enforcement Administration (DEA), the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Warner Robins Police Department, the Houston County Sheriff’s Office, the Bibb County Sheriff’s Office and the Peach County Sheriff’s Office with assistance from the U.S. Marshals Service. Deputy Criminal Chief Will Keyes prosecuted the case for the Government.


title: Rolla Sex Offender Sentenced to 190 Months in Prison for Child Pornography

component: USAO - Missouri, Eastern

body_text: ST. LOUIS – U.S. District Judge Henry E. Autrey on Wednesday sentenced a sex offender who sent child sexual abuse material to others to 190 months in prison. Torrey Jaymes McAlpin, 37, of Rolla, will be on supervised release for life after his release from prison. McAlpin was caught after the social media app Kik submitted a CyberTip to the National Center for Missing and Exploited Children about someone who uploaded four videos and five images containing child sexual abuse material in chat messages. The messages were traced to McAlpin, who was convicted of first-degree sexual abuse involving a child in Kentucky in 2013. McAlpin was found guilty of failing to register as a sex offender in Tennessee in 2018. Investigators found evidence that McAlpin had sent multiple images and videos containing child sexual abuse material to other Kik users in June of 2021. McAlpin pleaded guilty in U.S. District Court in St. Louis in July to one count of possession of child pornography and one count of failure to register as a sex offender. The Phelps County Sheriff’s Department and Homeland Security Investigations investigated the case. Assistant U.S. Attorney Nathan Chapman prosecuted the case. 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 the Department of Justice Criminal Division's Child Exploitation and Obscenity Section, 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 .


title: North Dakota Felon Indicted for Fentanyl Trafficking

component: USAO - Minnesota

body_text: MINNEAPOLIS – A North Dakota felon has been indicted on conspiracy to distribute fentanyl, announced United States Attorney Andrew M. Luger. According to court documents, beginning in February 2023 and continuing through approximately April 21, 2023, Jake Noland Northern, a.k.a. “Jake Noal Northern,” 45, knowingly and willingly conspired with others to distribute fentanyl in Minnesota and surrounding areas. Northern was indicted on one count of conspiracy to distribute fentanyl. On October 8, 2024, he made his initial appearance in U.S. District Court before Magistrate Judge Douglas L. Micko and was subsequently ordered detained pending trial. This case is the result of an investigation conducted by the Pipestone County Sheriff’s Office, the Buffalo Ridge Drug Task Force, the Minnesota Bureau of Criminal Apprehension, and the Drug Enforcement Administration. Assistant U.S. Attorneys Lauren O. Roso and Allen S. Slaughter are prosecuting the case.


title: Ardmore Resident Sentenced For Federal Firearm Charge

component: Federal Bureau of Investigation (FBI)

body_text: MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Ricky Gene McGee, Jr., age 38, of Ardmore, Oklahoma, was sentenced to 27 months in prison for illegally possessing a firearm and ammunition. The charges arose from an investigation by the Federal Bureau of Investigation, the Chickasaw Nation Lighthorse Police, and the Ardmore Police Department. On February 26, 2024, McGee pleaded guilty to one count of Felon in Possession of a Firearm and Ammunition. According to investigators, on October 12, 2022, law enforcement officers conducting a routine traffic stop along Sam Noble Parkway in Ardmore, Oklahoma, saw McGee throw an object from the vehicle. During the stop, officers discovered McGee in possession of a pistol magazine loaded with eleven rounds of 9mm ammunition. Law enforcement also recovered a semiautomatic firearm lying in a nearby ditch along the route travelled by McGee’s vehicle prior to the stop. The loaded firearm contained twelve rounds of 9mm ammunition inside a magazine that matched the magazine found on McGee’s person. McGee knowingly possessed the firearm and ammunition after having been previously convicted of a crime punishable by more than one year imprisonment. 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. 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. McGee will remain in the 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 U.S. Attorney Jonathan E. Soverly represented the United States.


title: Florida Woman Pleads Guilty to Conspiring to Prepare Fraudulent Loan Applications Totaling More Than $400,000

component: USAO - Florida, Southern

body_text: MIAMI – On Oct. 15, Lakeisha Black a/k/a/ “Lakeisha Pierce,” pled guilty in federal court in Fort Lauderdale to conspiracy to make false statements to the Small Business Administration in connection with myriad fraudulent Paycheck Protection Program (PPP) loans. From July 2020 through June 2021, Black charged between $2,000 and $6,000 to prepare fraudulent PPP loans for at least 14 other individuals, including three former Broward County Sheriff’s Office deputies, who all previously pleaded guilty to the conspiracy in separate cases and have been sentenced. In total, Black is responsible for over $400,000 in fraudulent PPP loans. The sentencing is scheduled for Jan. 7, 2025, before U.S. District Judge Rodney Smith. Black faces up to 5 years in prison for the conspiracy. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. U.S. Attorney for the Southern District of Florida Markenzy Lapointe; Special Agent in Charge Brian Tucker, Eastern Region, Office of Inspector General for the Board of Governors of the Federal Reserve System and the Consumer Financial Protection Bureau; Special Agent in Charge Darrin K. Jones of the Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS), Southeast Field Office; Sheriff Gregory Tony of Broward Sheriff’s Office (BSO), and Special Agent in Charge Jeffrey B. Veltri of FBI, Miami Field Office, made the announcement. FRB-OIG, DCIS, BSO, and FBI Miami investigated this case. Assistant U.S. Attorneys Latoya C. Brown and Trevor C. Jones are prosecuting it. 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 . On September 15, 2022, the Attorney General selected the Southern District of Florida’s U.S. Attorney’s Office to head one of three national COVID-19 Fraud Strike Force Teams. The Department of Justice established the Strike Force to enhance existing efforts to combat and prevent COVID-19 related financial fraud. The Strike Force combines law enforcement and prosecutorial resources and focuses on large-scale, multistate pandemic relief fraud perpetrated by criminal organizations and transnational actors, as well as those who committed multiple instances of pandemic relief fraud. The Strike Force uses prosecutor-led and data analyst-driven teams to identify and bring to justice those who stole pandemic relief funds. Additional information regarding the Strike Force may be found at https://www.justice.gov/opa/pr/justice-department-announces-covid-19-fraud-strike-force-teams . 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 . 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 24-cr-60137. ###


title: Ten Defendants Indicted in Connection with a Massachusetts-Based  Drug Trafficking Organization

component: USAO - New Hampshire

body_text: CONCORD – Ten defendants have been indicted in connection with a Methuen and Lawrence-based organization trafficking narcotics to New Hampshire, U.S Attorney Jane Young announces. Today, law enforcement officers arrested seven defendants in New Hampshire and Massachusetts on charges of conspiracy to distribute controlled substances, namely, fentanyl, methamphetamine, cocaine, and crack cocaine. The defendants are scheduled to appear in federal court at various times this week and next week. The following defendants have been indicted in connection with this drug trafficking organization: Michael Martinez, age 33, of the Dominican Republic; he has not yet been arrested. Donaida Gonzalez, aka Yijana Rodriguez, age 52, of Methuen, MA; she is in custody. Diana Bautista-Arias, aka Alba Cruz-Solano, age 43, of Lawrence, MA; she is in custody. Eddy Balbuena-Gomez, age 30, of Lawrence, MA; he is in custody. Redondo Dore, age 28, of Berlin, NH; he is in custody. Trevor Mackenzie, age 33, of Rochester, NH; he is in custody. Katie Curtis, age 38, of Rochester, NH; she is in custody. Tabitha O’Brien, age 44, of Rochester, NH; she is in custody. Craig Grant, age 41, of Somersworth, NH; he has not yet been arrested. Jamie Bonner, age 42, of Somersworth, NH; she has not yet been arrested. The charge of conspiracy to distribute or possess with intent to distribute controlled substances provides for a sentence of up to 20 years in prison. Michael Martinez and Redondo Dore are facing mandatory minimum penalties of 10 years based on their involvement in the conspiracy. Katie Curtis is also facing a mandatory minimum sentence of 5 years based on her involvement in the conspiracy. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case. Homeland Security Investigations led the investigation. The Federal Bureau of Investigation, the United States Marshal Service, the Strafford County Sheriff’s Office, the Massachusetts State Police, the Keene Police Department, the Salem Police Department, the Berlin Police Department, the Londonderry Police Department, the Nashua Police Department, the Concord Police Department, the New Hampshire State Police, the Lawrence Police Department, and the Methuen Police Department provided valuable assistance. Assistant U.S. Attorneys Aaron Gingrande and Jarad Hodes are prosecuting the case. This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks. The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law. ###


title: Upshur County woman sentenced to federal prison for defrauding employer

body_text: TYLER, Texas – An Upshur County woman has been sentenced to federal prison and ordered to pay restitution for federal violations in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs. Tamarisk Trejo Mathews, 52, of Big Sandy, pleaded guilty to wire fraud and was sentenced to 33 months in federal prison by U.S. District Judge Jeremy Kernodle on October 16, 2024. Mathews was also ordered to pay $334,252.00 in restitution. According to information presented in court, Mathews was responsible for accounting duties of a restaurant and music venue in Wood County, Texas. She worked in accounts receivable, accounts payable, and had access to the financial accounts of the business. Mathews also had authority to issue invoices to customers and issue checks and other payments to creditors. Beginning in about December 2018, Mathews devised and began executing a scheme to wrongfully obtain money, funds, and assets under the custody and control of the restaurant. Among other things, she wrote checks that she was not authorized to write for personal expenditures, made charges in the business’s name from vendors such as Amazon, and used business funds to make purchases through PayPal. Mathews also opened an American Express account in the name of the business and obtained an American Express credit card. She then used the card and account to make personal purchases and expenditures and paid American Express for those purchases and expenditures using business funds and the business bank account. The scheme resulted in a loss to the business of $334,252.00. This case was investigated by the FBI and prosecuted by Assistant U.S. Attorney Alan Jackson. ###


title: Grand Jury Returns Indictments

component: USAO - Wisconsin, Western

body_text: MADISON, WIS. - A federal grand jury in the Western District of Wisconsin, sitting in Madison, returned the following indictments today. You are advised that a charge is merely an accusation and a person named as defendant in an indictment is presumed innocent unless and until proven guilty. Beloit Man Charged With Possessing Child Pornography Jody Behlke, 49, Beloit, Wisconsin, is charged with possessing child pornography. The indictment alleges that on May 24, 2023, Behlke possessed a Samsung Galaxy 8 Tab tablet containing visual depictions of minors engaging in sexually explicit conduct. The indictment further alleges that at least one of the depictions Behlke possessed involved a prepubescent minor or a minor who had not attained 12 years of age. The penalties for possessing child pornography vary depending upon an individual’s prior criminal history. If convicted, Behlke faces a minimum penalty of 10 years in prison and a maximum penalty of 20 years in prison. The charge against Behlke is the result of an investigation by the Wisconsin Department of Justice Division of Criminal Investigation and Homeland Security Investigations. Assistant U.S. Attorney Taylor L. Kraus is handling the case. This investigation was a part of Project Safe Childhood, a nationwide initiative to combat child sexual exploitation and abuse. 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. La Crosse Man and Woman Charged with Possessing Methamphetamine and Fentanyl for Distribution Stephan J. Johnston, 27 and Ashley L. Russell, 31, both of La Crosse, Wisconsin, are charged with possessing 500 grams or more of methamphetamine and 40 grams or more of fentanyl, both drugs intended for distribution. The two are also charged with maintaining a drug involved premises. The indictment alleges that Johnston and Russell possessed the methamphetamine and fentanyl on February 14, 2024. The indictment further alleges that from January 28, 2024 to February 14, 2024, they maintained a drug involved premises for the purpose of distributing methamphetamine and fentanyl. If convicted of possessing 500 grams or more of methamphetamine intended for distribution, Johnston and Russell each face a mandatory minimum penalty of 10 years in prison and a maximum penalty of life in prison. If convicted of possessing 40 grams or more of fentanyl intended for distribution, they each face a mandatory minimum of 5 years and a maximum of 40 years in prison. The charge of maintaining a drug involved premises carries a maximum penalty of 20 years in prison. The charges against Johnston and Russell are the result of an investigation by the La Crosse County Sheriff’s Office, La Crosse Police Department, Crawford County Sherriff’s Office, and the Central Wisconsin Drug Task Force. Assistant U.S. Attorney Katheryn Ginsberg is handling the case. Eau Claire Man Charged with Methamphetamine Trafficking Xa Xiong, 31, Eau Claire, Wisconsin, is charged with distributing 50 grams or more of methamphetamine and attempting to distribute 500 grams or more of methamphetamine. The indictment alleges that Xiong distributed methamphetamine on July 26, 2024, and attempted to distribute methamphetamine on August 1, 2024. If convicted of distributing 50 grams or more, Xiong faces a mandatory minimum penalty of 5 years in prison and a maximum penalty of 40 years in prison. If convicted of attempting to distribute 500 grams or more, he faces a mandatory minimum of 10 years and a maximum penalty of life in prison. The charges against Xiong were the result of an investigation conducted by the West Central Drug Task Force, Wisconsin Department of Justice Division of Criminal Investigation, Drug Enforcement Administration, and the Clark County Sheriff’s Department. The case was also investigated by the ATF Madison Crime Gun Task Force consisting of federal agents from ATF and Task Force Officers (TFOs) from local agencies including the Dane County and Clark County Sheriff’s Offices and the Fitchburg, Madison, Sun Prairie, and La Crosse Police Departments. Assistant U.S. Attorney William Levins is handling the case.


title: Huntington Man Pleads Guilty to Federal Gun Crime

component: USAO - West Virginia, Southern

body_text: HUNTINGTON, W.Va. – Alonzo Dewayne Harden, 30, of Huntington, pleaded guilty today to being a felon in possession of a firearm. According to court documents and statements made in court, on May 17, 2024, law enforcement conducted a traffic stop of a vehicle in Huntington in which Harden was a passenger. Harden exited the vehicle and fled on foot before he was apprehended by officers. While fleeing, Harden tossed a loaded Glock Model 22 .40-caliber pistol with an extended magazine to the ground. Officers recovered the firearm. Federal law prohibits a person with a prior felony conviction from possessing a firearm or ammunition. Harden knew he was prohibited from possessing a firearm because of his prior felony convictions for malicious assault and use or presentment of a firearm during the commission of a felony in Cabell County Circuit Court on August 26, 2021. Harden is scheduled to be sentenced on January 27, 2025, and faces a maximum penalty of 15 years in prison, up to three years of supervised release, and a $250,000 fine. United States Attorney Will Thompson made the announcement and commended the investigative work of the Huntington Police Department, the Huntington Violent Crime Drug Task Force, and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Courtney L. Finney is prosecuting the case. This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. 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. 3:24-cr-116. ###


title: North Texas tax preparer sentenced to federal prison for tax fraud scheme

component: USAO - Texas, Eastern

body_text: TYLER, Texas – A Terrell man has been sentenced to federal prison and ordered to pay restitution for federal violations in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs. Toronto Henderson, 49, pleaded guilty to conspiracy to aid, assist, counsel or advise in tax fraud and was sentenced to 24 months in federal prison by U.S. District Judge Jeremy Kernodle on October 16, 2024. Henderson was also ordered to pay $373,230.00 in restitution. According to information presented in court, Henderson was an owner of two tax return preparer businesses. Henderson recruited tax preparers to work at the businesses to prepare and file income tax returns for clients. Henderson, or others at his instruction, personally trained the preparers. As part of the training, preparers were instructed on how to complete tax returns for clients. Henderson and others created a scheme to defraud the United States by instructing the tax preparers to create, among other things, fraudulent Schedule Cs on personal income tax returns. The Schedule C, Profit or Loss From Business, is designed to permit a taxpayer to report income received and expenses incurred from operating a business. At Henderson’s instruction, and the instruction of others known to Henderson, preparers used taxpayer information unrelated to operation of any business or created fictitious and false information with respect to operation of a business, so that the taxpayer could claim business losses to which the taxpayer was not entitled. This scheme permitted the taxpayer to receive a refund to which the taxpayer was not entitled. The tax returns, including the fraudulent Schedule Cs, were filed by Henderson or employees working at his instruction. The tax preparation businesses were paid a fee by the clients for preparing and filing the returns. The offense resulted in a total tax loss of $373,230.00. This case was investigated by the Internal Revenue Service-Criminal Investigations and prosecuted by Assistant U.S. Attorney Alan Jackson. ###


title: Bienville Parish Man Sentenced for Illegal Possession of Crack Cocaine and a Firearm and Ammunition

body_text: SHREVEPORT, La. – United States Attorney Brandon B. Brown announced that Martino Antwion Hill , 42, of Ringgold, Louisiana, was sentenced today for illegal possession of narcotics and a firearm and ammunition. United States District Judge S. Maurice Hicks, Jr. sentenced Hill to 156 months (13 years) in prison, followed by 3 years of supervised release for possession with intent to distribute crack cocaine and being a convicted felon in possession of a firearm. On February 25, 2022, deputies with the Bienville Parish Sheriff’s Office observed Hill and another individual standing outside of a vehicle which they believed had been driven by Hill. Deputies were aware that Hill had several active felony warrants and approached the vehicle. As law enforcement officers approached, Hill began to walk away from the vehicle and refused to follow the commands of officers to stop as they approached. Hill resisted arrest and the officers took him into custody. They searched his person and discovered over $5,000 in cash and approximately 11.32 grams of crack cocaine. A search of his vehicle was conducted, and officers discovered a Ruger model 5.7, caliber 5.728 firearm and ammunition on the rear seat of the vehicle. Hill has previous felony convictions for possession with intent to distribute a controlled dangerous substance on two occasions and possession of a firearm by a felon. He admitted that he was a convicted felon at the time of this offense and knew he was prohibited from possessing any firearm or ammunition. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and Bienville Parish Sheriff’s Office and prosecuted by Assistant United States Attorney Robert F. Moody. # # #


title: Erie Man Charged with Theft of Supplemental Security Income

component: USAO - Pennsylvania, Western

body_text: ERIE, Pa. - A resident of Erie, Pennsylvania, has been indicted by a federal grand jury in Erie on a charge of theft of government property, United States Attorney Eric G. Olshan announced today. The one-count Indictment named Gregg Edward Siddons, 64, as the sole defendant. According to the Indictment, from in and around January 2021 to in and around March 2024, Siddons stole approximately $33,417 in Supplemental Security Income to which he was not entitled because of unreported income Siddons obtained through operating an unauthorized taxi service. The law provides for a maximum total sentence of up to 10 years in prison, a fine of up to $250,000, or both. Under the federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant. Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government. The Social Security Administration - Office of the Inspector General conducted the investigation leading to the Indictment. An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.


title: New Jersey Owner of Check Casher and Money Serivce Business Admits Filing More Than $325 Million in False Currency Transaction Reports, Operating and Aiding and Abetting an Unlicensed Money Transmitting Business

component: USAO - New Jersey

body_text: CAMDEN, N.J. – The New Jersey owner of Galaxia International Inc., a check casher and money service business, admitted filing more than $325 million in false currency transaction reports and operating and aiding and abetting an unlicensed money transmitting business, U.S. Attorney Philip R. Sellinger announced today. Ali Hassanein, 68, of Kearny, New Jersey, pleaded guilty before Chief U.S. District Judge Renée Marie Bumb in Camden federal court on Oct. 15, 2024, to an information charging him with conspiracy to cause a financial institution to file false currency transaction reports and operating and aiding and abetting the operation of an unlicensed money transmitting business. “The Bank Secrecy Act imposes important requirements on financial institutions, including by requiring them and their executives to file accurate reports with the government concerning certain currency transactions. These requirements play a vital role in helping law enforcement prevent, detect, and stop illicit activity. Ali Hassanein admitted that he and Galaxia flouted these requirements, which undermined the financial system and made Galaxia an easy target for bad actors. My office will continue to work to ensure that financial institutions who shirk their obligations and facilitate illicit activity are held accountable.” U.S. Attorney Philip R. Sellinger According to documents filed in this case and statements made in court: From 2019 through February 2023, Hassanein owned and operated Galaxia International Services Inc. (Galaxia), a check casher and money service business that operated in New Jersey and other states. Under the Bank Secrecy Act and related regulations, Galaxia was required to file currency transaction reports (CTRs) for transactions involving more than $10,000 in currency. CTRs are required to list, among other things, the location of the transactions and the names of the people and entities physically conducting the transactions. Hassanein conducted more than $325 million in reportable check cashing transactions for a conspirator in exchange for a fee. But Hassanein caused Galaxia to file thousands of CTRs for those transactions that contained material misstatements and omissions. For example, the CTRs falsely stated that all of the transactions had occurred at Galaxia’s East Orange, New Jersey, location – where Galaxia had a license to conduct check cashing transactions – when in fact they had occurred in Jersey City, New Jersey, or Kearny, New Jersey, where Galaxia was not licensed to conduct check cashing transactions. All of the CTRs failed to list the conspirator as the conductor of the transactions. Hassanein also aided and abetted the conspirator’s operation of an unlicensed money transmitting business The charges of conspiring to cause a financial institution to file false currency transaction reports and operating and aiding and abetting the operation of an unlicensed money transmitting business each carry a statutory maximum prison sentence of five years and a statutory maximum fine of the greatest of $250,000, twice the gross amount of any pecuniary gain that any persons derived from the offense, or twice the gross amount of any pecuniary loss sustained by any victims of the offense, whichever is greatest. Sentencing is scheduled for April 2, 2025. U.S. Attorney Sellinger credited special agents and task force officers of the Internal Revenue Service – Criminal Investigation, under the direction of Acting Special Agent in Charge Jenifer L. Piovesan in Newark; special agents and task force officers with the U.S. Drug Enforcement Administration, under the direction of Special Agent in Charge Frank A. Tarentino III in New York; and special agents of the Federal Deposit Insurance Corporation – Office of Inspector General, New York Division, under the direction of Special Agent in Charge Patricia Tarasca, with the investigation leading to today’s guilty plea. He also thanked the Justice Department’s Money Laundering and Asset Recovery Section (MLARS) and Morristown Police Department for their assistance in the investigation. This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF . The government is represented by Assistant U.S. Attorneys Marko Pesce and Fatime Cano of the Economic Crimes Unit and Peter A. Laserna of the Asset Recovery and Money Laundering Unit in Newark. hassanein.information.pdf


title: KC Man Pleads Guilty to Three Fentanyl Overdose Deaths

component: USAO - Missouri, Western

body_text: KANSAS CITY, Mo. – A Kansas City, Mo., man pleaded guilty in federal court today to distributing fentanyl, which resulted in three overdose deaths in Belton and Raymore, Mo., as part of a drug-trafficking conspiracy. Tiger Dean Draggoo, 24, pleaded guilty before U.S. District Judge Roseann A. Ketchmark to one count of conspiracy to distribute fentanyl and three counts of distributing fentanyl resulting in death. By pleading guilty today, Draggoo admitted that he distributed fentanyl on Sept. 3, 2022, the use of which caused the death of another person. Draggoo admitted that he distributed fentanyl between Aug. 22 and Sept. 13, 2022, the use of which caused the death of another person. Draggoo admitted that he distributed fentanyl between Dec. 7 and 20, 2022, the use of which caused the death of another person. Draggoo also admitted that the government’s evidence of the total amount of drugs he is responsible for distributing or possessing is at least 22,364 pills that contained a total of 2,460 grams of fentanyl. Victim #1 Fatality On Sept. 4, 2022, Cass County, Mo., sheriff’s deputies found a juvenile, identified in court documents as “Victim #1,” deceased in her bedroom. An autopsy report identified “Fentanyl Intoxication” as the cause of death. Investigators determined that Draggoo was selling fentanyl pills to the victim and had supplied her with fentanyl pills on the evening of Sept. 3, 2022. Victim #2 Fatality On Sept. 13, 2022, a deceased person, identified in court documents as “Victim #2,” was found in the Belton residence where she lived with her mother. A blue pill was found in her bedroom, which was tested and determined to contain fentanyl. An autopsy report identified the cause of death as “Acute Fentanyl Toxicity.” Investigators learned that Draggoo was selling fentanyl pills to Victim #2. Draggoo typically would drop off pills near midnight at Victim #2’s bedroom window, and cell phone GPS information indicated Draggoo was in the area of Victim #2’s residence at approximately 12:20 a.m on Sept. 13, 2022. Attempted Arrest of Draggoo On Sept. 22, 2022, law enforcement officers conducted surveillance of Draggoo’s apartment and attempted to arrest him. Draggoo got into a Jeep Renegade driven by his brother, co-defendant Colt Justin Draggoo, 21, of Kansas City, Mo. Officers attempted to conduct a traffic stop of the vehicle, but the vehicle fled. Tiger and Colt Draggoo later returned to the apartment complex, but when an officer drove into the parking lot, Tiger Draggoo ran into the apartment building and was able to escape. Colt Draggoo was arrested. Officers found a loaded Springfield Armory 9mm handgun sitting on the driver’s seat of the Jeep. A laundry bag in the back seat contained two fire safes that had a total of $184,500 in cash. Colt Draggoo has pleaded guilty to his role in the drug-trafficking conspiracy. Officers searched Tiger Draggoo’s apartment and found 17 firearms, including two machine guns, ammunition of various calibers, $246,769 in cash, a ballistic vest with plates, a money counter, numerous pills that contained fentanyl, eight suspected LSD tabs, and marijuana. The 17 firearms included a Del-Ton 5.56-caliber rifle (converted into a machine gun), a Glock switch (used to convert a Glock pistol into a machine gun), three Marlin .22-caliber rifles, a Norinco 7.62-caliber rifle, a Mosin-Nagant rifle, an Anderson Manufacturing AM-15 .223-caliber rifle, a Mossberg 12-gauge shotgun, an Armscorp USA .308-caliber rifle, a Century Arms 7.62-caliber rifle, a Herbert Schmidt .22-caliber revolver, a New England Firearms .22-caliber revolver, a Kimber 9mm pistol, a Glock 9mm pistol, a Sig Sauer 9mm pistol, and a Metro Arms .45-caliber pistol. Victim #3 Fatality On Dec. 20, 2022, Raymore police officers were dispatched to a residence in Raymore regarding a non-breathing female, identified in court documents as Victim #3. Victim #3 was transported to a local hospital where she was pronounced deceased. A small jewelry box in Victim #3’s bedroom contained three broken segments of a blue pill that were tested and determined to contain fentanyl. An autopsy report identified the cause of death as “Acute Fentanyl Toxicity.” Investigators learned that Tiger Draggoo had been selling fentanyl to Victim #3 since as early as May 31, 2022. The last Facebook Messengers conversation between Tiger Draggoo and Victim #3 occurred on Dec. 7, 2022, when they agreed to meet and an amount of $50 was agreed upon. Arrest of Draggoo Tiger Draggoo was arrested at his residence on Jan. 20, 2023. Tiger Draggoo was in possession of almost $2,000 in cash in his billfold and pockets. Officers searched Tiger Draggoo’s apartment and recovered pills from the toilet. Officers also found suspected psilocybin mushrooms, 144 grams of yellow THC wax, and more than $62,000 in additional cash. Officers searched Tiger Draggoo’s Honda Accord and found three handguns, a Palmetto State Armory multi-caliber rifle, an unregistered short-barreled 12-gauge shotgun, and $1,250 in cash. Officers searched his girlfriend’s Jeep Renegade, which was located at the apartment complex, and found a backpack that contained more than $82,000 in cash. Under federal statutes, Tiger Draggoo is subject to a mandatory minimum sentence of 20 years in federal prison without parole, up to a sentence of life in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office. This case is being prosecuted by Assistant U.S. Attorneys Brad K. Kavanaugh and Robert Smith. It was investigated by the Jackson County Drug Task Force, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Belton, Mo., Police Department, the Raymore, Mo., Police Department, the Cass County, Mo., Sheriff’s Department, and the FBI.


title: Lancaster Man Arrested on Charges that He Used Drone to Fly Fentanyl, Including to Customer Who Later Died from Overdose

component: USAO - California, Central

body_text: LOS ANGELES – An Antelope Valley man was arrested today on a nine-count federal grand jury indictment charging him with using a drone to drop off fentanyl and other narcotics to buyers, one of whom died of a fatal overdose of the powerful synthetic opioid last year. Christopher Patrick Laney, 34, a.k.a. “Crany,” of Lancaster, is charged with one count of distribution of fentanyl resulting in death, four counts of knowingly and willfully operating an unregistered aircraft in furtherance of a felony narcotics crime, one count of possession with intent to distribute methamphetamine, two counts of possession with intent to distribute fentanyl, and one count of possession of firearms in furtherance of a drug trafficking crime. Laney is expected to be arraigned this afternoon in United States District Court in downtown Los Angeles. According to the indictment that a grand jury returned on September 17 and was unsealed today, Laney on January 17, 2023, used an unmanned aircraft system, commonly referred to as a “drone” – which had not been registered with the Federal Aviation Administration – to transport fentanyl from his house to a nearby church parking lot. Laney distributed the fentanyl to a third party that provided it to the victim, identified in the indictment as “J.K.”, who was found dead the next day after she suffered a fatal drug overdose. As captured on video footage taken by the drone, Laney used the same unregistered drone to transport and distribute narcotics on at least three other occasions in December 2022 and January 2023. In February 2023, Laney also possessed methamphetamine and fentanyl at his residence, and knowingly possessed multiple firearms – including an AR-15-style rifle lacking a serial number, commonly referred to as a “ghost gun,” and two 9mm semiautomatic ghost-gun pistols, inside of his room. An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court. If convicted of all charges, Laney would face a mandatory minimum sentence of 25 years in federal prison and a statutory maximum sentence of life imprisonment. The Drug Enforcement Administration, the Los Angeles County Sheriff’s Department, the Federal Aviation Administration, and the United States Customs and Border Protection’s Center for Air and Marine Drone Exploitation are investigating this matter. Assistant United States Attorney Kyle W. Kahan of the International Narcotics, Money Laundering, and Racketeering Section is prosecuting this case.