title: St. Louis Tax Preparer Arrested, Accused of Preparing 41 Fraudulent Returns

body_text: ST. LOUIS – A St. Louis, Missouri-based tax preparer was arrested Tuesday after being indicted and accused of fraudulently preparing 41 tax returns for clients. Shasherese M. Reed, 52, was indicted by a grand jury in U.S. District Court in St. Louis April 10 on 41 counts of aiding and assisting in the preparation of false and fraudulent tax returns. The indictment says in 2015, the IRS revoked the Preparer Tax Identification Number (PTIN) assigned to Reed and the Electronic Filing Identification Number issued to her business, Sha-Sha Taxes, meaning she was no longer authorized to prepare tax returns for compensation. The indictment says that despite that, Reed prepared tax returns for clients from 2017 to 2022 using a tax preparation business, Majac Money, opened by her daughter and operated out of Reed’s home. The indictment says Reed prepared 41 fraudulent tax returns that used her daughter’s PTIN and falsely identified her daughter as the paid preparer on the returns. The returns claimed false and fraudulent deductions for things like state and local taxes, business expenses, medical and dental expenses and mortgage interest, it says. “Return preparer fraud remains a top investigative priority for IRS Criminal Investigation (CI). Our agency devotes a large amount of time and resources to presenting such cases to the U.S. Attorney for prosecution,” said Special Agent in Charge Thomas F. Murdock of the St. Louis Field Office. “The IRS encourages taxpayers to be selective and to verify a return preparer’s credentials before enlisting their services for a fee. CI will aggressively pursue those who present corrupt credentials and deceive honest taxpayers into trusting them.” Each charge Reed faces is punishable by up to three years in prison, a $100,000 fine or both a prison term and a fine. Charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty. IRS Criminal Investigation investigated the case. Assistant U.S. Attorney Jonathan Clow is prosecuting the case.


title: Mexican citizen indicted for attempting to export 600 rounds of ammunition to Mexico

component: USAO - Texas, Southern

body_text: BROWNSVILLE, Texas – A federal grand jury has returned an indictment against a Mexican citizen residing in San Benito for attempting to smuggle ammunition into the Republic of Mexico, announced U.S. Attorney Alamdar S. Hamdani. Fabian Osiel Flores-Morales, 30, attempted to depart the United States into Mexico via the outbound lane at the International Port of Entry in Los Indios March 21. Upon inspection of the 2009 Dodge Ram he was driving, authorities discovered hundreds of rounds of ammunition concealed throughout the vehicle. The indictment alleges he attempted to export approximately 250 rounds of 9mm, 150 rounds of .45 caliber and 200 rounds of .40 caliber ammunition from the United States to the Republic of Mexico. Flores does not have a license to export firearms or ammunition and has not applied for one, according to the charges. Originally charged by criminal complaint, Flores-Morales remains in custody pending his arraignment. If convicted, he faces up to 10 years in federal prison and a possible $250,000 maximum fine. Homeland Security Investigations and Customs and Border Protection conducted the investigation. Assistant U.S. Attorney David Coronado is prosecuting the case. An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.


title: Springfield Restaurant Owner Pleads Guilty to  Fraud Relating to Loans

component: USAO - Illinois, Central

body_text: SPRINGFIELD, Ill. – A Springfield, Illinois man, Omar Hernandez-Lopez, 39, of the 8100 block of Tack Lane pleaded guilty on April 1, 2024, to misprision of a felony in connection with wire fraud and false statements on loan applications. Acceptance of the plea is pending before U.S, District Court Judge Sue Myerscough. Sentencing for Hernandez-Lopez has scheduled for August 29, 2024, at the U.S. Courthouse in Springfield, Illinois. In court before U.S. Magistrate Judge Karen L. McNaught, Hernandez-Lopez admitted that starting around June 2018 and continuing until at least June 2019, he concealed the fraudulent nature of several falsified documents that were submitted to loan providers. Two fraudulent loan packages were submitted in an attempt to obtain a business loan for Hernandez-Lopez’s restaurant, La Fiesta Grande. The other two fraudulent loan packages were submitted in a successful attempt to obtain a home mortgage loan. Hernandez-Lopez was aware of the submission of fraudulent documents and took steps to conceal their fraudulent nature from the loan companies and law enforcement. Hernandez-Lopez remains free pending sentencing. Hernandez-Lopez faces the following statutory penalties: not more than 3 years in prison, not more than a $250,000 fine, a $100 special assessment, and restitution in an amount ordered by the Court. The charges were investigated by the Federal Deposit Insurance Corporation Office of Inspector General, Chicago Region. Assistant U.S. Attorney Sierra Senor-Moore and Tanner Jacobs are representing the government in the prosecution.


title: Robert Waters, Jr. and Westville Remarketing, Inc. Settle Alleged False Claims Act Violations

component: USAO - New Hampshire

body_text: CONCORD- The U.S. Attorney’s Office for the District of New Hampshire entered into a settlement agreement with Robert Michael Waters, Jr. and Westville Remarketing, Inc, (Westville) to resolve allegations that Waters and Westville violated the False Claims Act by taking and misusing proceeds of an Economic Injury Disaster Loan (EIDL) to purchase a yacht, U.S. Attorney Jane E. Young announces. Waters and his Company, Westville, have agreed to pay the proceeds from an auction of the yacht and an additional $150K to the government. In the settlement, Waters agreed to the auction of the yacht and to cooperate in the transfer of title to whoever purchases it. The auction of the yacht will occur at a later date. “Unfortunately, individuals like Mr. Waters attempted to inappropriately benefit from government programs aimed at aiding Americans and the economy during the COVID-19 pandemic,” said U.S. Attorney Jane E. Young. “This Office and our law enforcement partners are working tirelessly to uncover this widespread fraud and recover these funds on behalf of American taxpayers. This settlement demonstrates that we will pursue both civil and criminal avenues to hold those who committed COVID-19 pandemic fraud accountable and divest them of their ill-gotten gains.” The United States contends that Waters and his Company, Westville, falsely represented to the Small Business Administration (SBA) that Westville would apply the proceeds of the EIDL to its business to counteract the negative economic effects of COVID-19, and instead used $340,000 of the loan proceeds to purchase an Azimut yacht called the “Alisa.” On April 7, 2020, Robert Waters, a 50% owner of Westville, submitted an application for an EIDL for $40,000 on Westville’s behalf. On December 27, 2021, he applied for a modification of the original EIDL for an additional $343,800. On February 15, 2022, just over one month after receiving the EIDL proceeds from the SBA, Waters transferred $340,000 of the funds to another entity he wholly owned, and spent the funds and other money to purchase the yacht “Alisa.” This yacht had no legitimate business purpose. Waters was indicted by a federal grand jury on August 2, 2023. The U.S. Attorney’s Office moved to dismiss the indictment following a revelation of additional information. The Court accepted the motion, and the criminal case was dismissed on March 29, 2024. The Federal Bureau of Investigation and the Internal Revenue Service led the investigation. The United States Marshal Service assisted with the investigation and seizure of the vessel. Valuable assistance was provided by the U.S. Department of Commerce. Assistant U.S. Attorneys Aaron Gingrande and Raphael Katz represented the government in this matter. ### Water's Civil Settlement


title: Owner of Former D.C.-Area Tax Preparation Business Sentenced for Tax Scheme

component: Tax Division

body_text: An Indiana woman was sentenced today to 21 months in prison for conspiring to file false tax returns, wire fraud and tax evasion. According to court documents and statements made in court, Awett Tedla, now of Indianapolis, was the owner and operator of Speedy Tax Services LLC in Washington, D.C., and District Heights, Maryland. From 2012 through 2016, Tedla and her co-conspirators prepared and electronically filed false income tax returns for clients that reported fictitious businesses and claimed certain tax credits, including the Earned Income Tax Credit, to generate inflated tax refunds. Tedla and her co-conspirators charged their clients different fees that depended on the size of the fraudulent refund. In 2016, Tedla also filed a false tax return for herself that underreported gross receipts from her business and taxable income. From 2012 through 2016, Tedla caused a tax loss to the IRS of approximately $171,534. In addition to her prison sentence, U.S. District Judge Carl J. Nichols for the District of Columbia ordered Tedla to serve three years of supervised release and to pay $171,534 in restitution to the United States. Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement. IRS Criminal Investigation and the Treasury Inspector General for Tax Administration investigated the case. Trial Attorneys Mark McDonald and George Meggali of the Tax Division prosecuted the case.


title: St. Louis County Woman Admits $100,000 Pandemic Loan Fraud

component: Federal Bureau of Investigation (FBI)

body_text: ST. LOUIS –A woman from St. Louis County, Missouri on Tuesday admitted fraudulently obtaining five pandemic relief loans totaling $104,163. Camille N. Foster, 32, pleaded guilty in U.S. District Court to two counts of wire fraud. She admitted that between May 2020 and November 2021, she fraudulently obtained five Paycheck Protection Program (PPP) loans. PPP loans were intended to help struggling small businesses during the COVID-19 pandemic. Foster submitted loan applications on behalf of three businesses, Humble Hearts Home Healthcare LLC, Embellished Jewels LLC and Muse Me Boutique LLC. On the applications, she knowingly misrepresented the payroll and annual income of the businesses, which were not in operation at the time. She also submitted fraudulent tax forms to support the applications. Each application requested about $20,000. In an application for Muse Me Boutique, Foster used someone else’s name and Social Security number on the application, and Foster signed that person’s name on the application without the person’s knowledge or authorization. Based on the false representations in her PPP loan applications, the lenders approved the applications and transferred the loan amounts into Foster’s bank accounts. Foster spent the money on personal retail purchases, dining, cosmetic surgery, bill payments, travel, tax payments and payments to others. She then submitted fraudulent applications for PPP loan forgiveness for many of the loans she received, falsely claiming that she had spent most or all the money on payroll costs. Foster, also known as Foster-Nunley, is scheduled to be sentenced July 18. The charge is punishable by up to 20 years in prison, a $250,000 fine, or both prison and a fine. She has also agreed to a $104,163 money judgment. The FBI investigated the case. Assistant U.S. Attorney Jonathan Clow is prosecuting the case. Anyone with information about pandemic fraud should call the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or report via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form .


title: Thoreau Man Pleads Guilty to Assault Resulting in Serious Bodily Injury

body_text: ALBUQUERQUE – A Thoreau man pleaded guilty in federal court to charges arising from the shooting of his friend during a drunken argument. Gerrick Mariano , 26 years old, an enrolled member of the Navajo Nation, pleaded guilty to assault resulting in serious bodily injury. According to court records, on August 20, 2022, Mariano and his friend, John Doe, were drinking alcohol when they got into a verbal argument. Afterwards, Mariano pointed a rifle at John Doe’s chest; Doe pushed the barrel of the rifle away. The rifle accidentally discharged, and a bullet struck John Doe in his right shoulder. John Doe had to be airlifted to a hospital for medical treatment and continues to experience limited use of his right shoulder. At sentencing, Mariano faces up to 10 years in prison followed by three years of supervised release. He must also make restitution to Doe for expenses directly linked to his crime. U.S. Attorney Alexander M.M. Uballez, and Raul Bujanda, Special Agent in Charge of the Federal Bureau of Investigation’s Albuquerque Field Office, made the announcement today. The Gallup Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from the Navajo Nation Department of Investigation, New Mexico State Police, and New Mexico Park Rangers. Assistant United States Attorney Zachary Jones is prosecuting the case. # # #


title: MEDIA ADVISORY: U.S Attorney Will Thompson to Honor Crime Victims and Advocates at Thursday, April 18, 2024 Ceremony

component: USAO - West Virginia, Southern

body_text: CHARLESTON, W.Va. – United States Attorney Will Thompson will preside over the Opening Ceremony for the 23rd Annual Operation Reach Out and present this year’s Excellence in Victim Advocacy and Justice Awards on Thursday, April 18, 2024, at 10 a.m. at the Robert C. Byrd U.S. Courthouse in Charleston. Honorees include the West Virginia Supreme Court of Appeals for its Remote Domestic Violence and Sexual Assault Outreach Project. This initiative allows victims in a growing number of counties to file petitions and participate in court hearings remotely, without having to be in the same building as the people from whom they are seeking protection. Law enforcement officers, local and state government officials, and nonprofit service organizations are also among the honorees. This annual event is held to raise awareness of victims’ rights, educate the public about the various organizations that provide services to crime victims, and promote crime prevention and safety. The U.S. Attorney’s Office for the Southern District of West Virginia and the Operation Reach Out Committee sponsor this ceremony in coordination with National Crime Victims' Rights Week (NCVRW), which is being commemorated this year on April 21-27. The 2024 NCVRW theme is “How would you help? Options, services, and hope for crime survivors.” The Department of Justice’s Office for Victims of Crime, within the Office of Justice Programs, leads communities across the country in observing National Crime Victims’ Rights Week. In 1981, President Ronald Reagan proclaimed the first National Crime Victims’ Rights Week to bring greater sensitivity to the needs and rights of victims of crime. More information about the Office of Justice Programs and its components can be found at www.ojp.gov . More information about Crime Victim’s Rights Week can be found at https://ovc.ojp.gov/program/national-crime-victims-rights-week/overview . WHAT: 23rd Annual Operation Reach Out Opening Ceremony WHEN: Thursday, April 18, 2024, at 10 a.m. WHERE: Fifth Floor, Robert C. Byrd U.S. Courthouse, Charleston 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. ###


title: Former Greensburg Police Chief Pleads Guilty to Methamphetamine and Cocaine Conspiracy

component: Organized Crime Drug Enforcement Task Forces

body_text: PITTSBURGH, Pa. – The former chief of police for Greensburg, Pennsylvania, pleaded guilty in federal court to engaging in a drug conspiracy, United States Attorney Eric G. Olshan announced today. Shawn Denning, 43, of Delmont, Pennsylvania, pleaded guilty before United States District Judge Cathy Bissoon to one count of conspiracy to distribute over 50 grams of methamphetamine and a quantity of cocaine. As part of his guilty plea, Denning admitted that, while serving as a captain of the Greensburg Police Department and continuing through his tenure as chief of the department, he conspired with others to distribute methamphetamine (in the form of fake “Adderall” pills) and cocaine to individuals in the Western District of Pennsylvania and across the country, including in Georgia, Texas, and Oklahoma. Denning boasted to a DEA confidential source that he could connect the source with “heavy hitters” across the country who would deliver drugs through the mail, later sending the source drug menus and prices, vouching for the source to the narcotics suppliers, communicating with the suppliers, and otherwise facilitating narcotics transactions. Toward the end of the investigation, Denning was recorded in an undercover operation discussing the drug conspiracy with the confidential source and admitting to his conduct. Denning also admitted that he conspired with former Greenburg Police Officer Regina McAtee, whom Denning used to purchase drugs from the suppliers and then as a source for drugs for himself when McAtee received the orders. McAtee was charged by a separate criminal Information and is scheduled to plead guilty on May 1, 2024. “Instead of catching drug dealers, Shawn Denning chose to be one by participating in a cross-country methamphetamine and cocaine conspiracy,” U.S. Attorney Olshan said. “Holding corrupt public officials accountable when they betray their oath to protect and serve the community remains a priority of this office and our partners in the law enforcement community.” Judge Bissoon scheduled sentencing for August 13, 2024. The law provides for a maximum total sentence of not less than five years and up to 40 years in prison, a fine of up to $5 million, or both. Under the federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant. Assistant United States Attorney Nicole Vasquez Schmitt is prosecuting this case on behalf of the government. The Drug Enforcement Administration, United States Postal Inspection Service, Internal Revenue Service – Criminal Investigation, and Federal Bureau of Investigation conducted the investigation leading to the Indictment in this case. This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.


title: Drug Trafficking Results in Over A Dozen People Arrested on Federal Charges

component: USAO - Arkansas, Eastern

body_text: JONESBORO—Fifteen people were arrested Tuesday morning as part of a sweeping law enforcement operation that targeted associates of a drug organization responsible for the distribution of methamphetamine in the Northeast Arkansas area. Law enforcement officers previously arrested one person on Monday and served arrest warrants on an additional three people already in custody. The investigation began in August 2022 to combat a significant drug distribution organization operating in the Northeast Arkansas area. Numerous indictments, which were returned by a Grand Jury on April 2, 2024, and unsealed today, named several defendants who are charged with various drug, money laundering, and firearm offenses. Law enforcement officers arrested 15 individuals and served an arrest warrant Tuesday on two defendants already in federal custody and one in state custody. Prior to today’s arrests, the investigation had resulted in the seizure of 45 pounds of methamphetamine, 10 pounds of marijuana, one pound of cocaine, six firearms, various ammunition, and $125,000 in drug proceeds. During arrest operations on Tuesday, agents recovered additional methamphetamine, three firearms (one of which was defaced) , ammunition, and approximately an additional $28,000 in suspected drug proceeds. “So many lives and communities have been destroyed by drugs and with today’s arrests, fifteen drug dealers have been taken off the streets,” said Jonathan D. Ross, United States Attorney for the Eastern District of Arkansas. “Where drugs are present, so are firearms and violence. Working with our federal, state, and local partners to keep our citizens safe from the violence that too often accompanies drug trafficking, will help to create safer communities for citizens in the Eastern District of Arkansas.” "Today’s arrests demonstrate how the FBI has zero tolerance for criminals who pollute our communities with dangerous narcotics,” Special Agent in Charge Alicia D. Corder, Special Agent in Charge, Federal Bureau of Investigations, Little Rock Field Office. “This was a collaborative effort between the FBI, Jonesboro Police Department, Craighead County Sheriff's Office, Arkansas State Police, and several others. We will continue to work together to keep Arkansans safe and bring dangerous criminals to justice.” The investigation was conducted by the Federal Bureau of Investigation with assistance from the Drug Enforcement Administration, 2 nd Judicial District Drug Task Force, Jonesboro Police Department, Craighead County Sheriff’s Office, Crittenden County Sheriff’s Office, Arkansas State Police, Greene County Sheriff’s Office, Poinsett County Sheriff’s Office, and the Clay County Sheriff’s Office. The charges in today’s unsealed indictments include conspiracy to distribute and possess with intent to distribute methamphetamine; distribution and possession with intent to distribute methamphetamine; conspiracy to money launder, money laundering, possession of a firearm in furtherance of a drug trafficking crime; and felon in possession of a firearm and ammunition. The minimum penalty for the drug charges is not less than 10 years’ imprisonment and a $10,000,000 fine. The minimum penalty for possessing a firearm in furtherance of a drug-trafficking crime is not less than five years in prison and up to life imprisonment and a $250,000 fine. This investigation 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 defendants arrested today will appear before U.S. Magistrate Judge Benecia B. Moore on April 18, 2024, for plea and arraignment. Defendants who were already in custody will have arraignments scheduled later. Trial dates will be announced at plea and arraignment. The case is being prosecuted by Assistant United States Attorney Erin O’Leary. The defendants charged and in custody include: Cesar Cortez-Rocha, 51, Misson, Texas Amado Barranco, Jr. aka “Myo”, 55, McAllen, Texas Bobby Franklin Barber, 60, Jonesboro Misty Dawn Barber, 38, Jonesboro Jamie Lynn Patterson, 40, Jonesboro * Amie Dawn Eggers, 39, Jonesboro (already in federal custody on other charges) Carey Wayne Peden, 46, Little Rock Vance Allen Brown, 56, Hot Springs * Sir Edward Lee Qualls aka “Buddy”, 35, Earle (already in federal custody on related charges) Reginald Bogan aka “Smooth”, 37, Jonesboro ** Melissa Bradley, 33, Jonesboro (already in custody on state charges) Jerry Crump, 55, Jonesboro Sandi Stanfill, 59, Paragould Delisha Pugh, 25, Earle Jennifer Jones, 37, Brookland William Jones, 28, Harrisburg Marcus McIntyre, 42, Memphis, Tennessee Harthoner Goforth, 38, Paragould Shauna Rutledge, 37, Hughes * already in federal custody ** in state custody An indictment contains only allegations. Defendants are presumed innocent unless and until proven guilty. # # # This news release, as well as additional information about the office of the United States Attorney for the Eastern District of Arkansas, is available online at https://www.justice.gov/edar X (formerly known as Twitter): @USAO_EDAR


title: Media Advisory: U.S. Attorney Announces National Crime Victims’ Rights Week Events

component: Office of Justice Programs (OJP)

body_text: RALEIGH, N.C – In commemoration of National Crime Victims’ Rights Week (NCVRW), U.S. Attorney Michael Easley is announcing NCVRW observances planned in the Eastern District of North Carolina for the week of April 22-26, 2024. Members of the public and media are invited to attend. On Monday, April 22 nd , candlelight vigils will be held in Raleigh and Wilmington to honor crime victims and their families. Raleigh event details: 6:00 p.m. – 7:00 p.m. at the Wake County Commons Building (4011 Carya Drive, Raleigh, NC 27610). This event is being held in partnership with the Wake County District Attorney and Wake County Sheriff’s Office. Wilmington event details: 7:00 p.m. – 8:00 p.m. at the Alton Lennon Federal Building (2 Princess Street, Wilmington, NC 28401). This event is being held in partnership with the New Hanover District Attorney’s Office and A Safe Place. On Tuesday, April 23 rd , the National Crime Victims’ Rights Ceremony will be held in Raleigh. This event is sponsored by the U.S. Attorney’s Offices for the Eastern, Middle and Western District and the Interagency Council. 11:00 a.m. – 12:30 p.m. at the State Archives Building (109 E. Jones Street, Raleigh, NC 27601) Registration is required for this event. https://www.justice.gov/usao-ednc/event/ncvrw-ceremony-2024 For additional information about this year’s NCVRW and how to assist victims in your own community, please visit the United States Attorney’s Office website . For more ideas on how to support victims of crime, visit OVC’s website at www.ovc.ojp.gov .


title: Ambridge Resident Charged with Possession of Machinegun

component: USAO - Pennsylvania, Western

body_text: PITTSBURGH, Pa. - A resident of Ambridge, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh for violating federal firearms law, United States Attorney Eric G. Olshan announced today. The one-count Indictment named Nasean Hunt, 18, as the sole defendant. According to the Indictment, on or about July 9, 2023, in the Western District of Pennsylvania, Hunt illegally possessed a machinegun—a 9mm Glock handgun affixed with a gold “automatic conversion switch.” Federal law prohibits the possession of a machinegun as well as any part, such as a switch, that is designed for use in converting a weapon into a machine. 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 DeMarr W. Moulton is prosecuting this case on behalf of the government. The Beaver County Detective Bureau and Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation leading to the Indictment in this 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. An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.


title: Honduran National Pleads Guilty to Illegal Re-Entry

component: USAO - Louisiana, Eastern

body_text: NEW ORLEANS – HECTOR STEFANO FLORES-DUARTE , a/k/a “Stefano Flores” , age 30, pled guilty on April 9, 2024 to illegal reentry of a removed alien, in violation of Title 8, United States Code, Section 1326(a), announced U.S. Attorney Duane A. Evans. According to court documents, law enforcement authorities in Lafourche Parish, learned that HECTOR STEFANO FLORES-DUARTE , (“FLORES-DUARTE”) had been involved in domestic abuse and, subsequently, arrested him. Federal authorities were contacted and determined that FLORES-DUARTE was a citizen of Honduras. FLORES-DUARTE had been previously removed from the United States on June 10, 2022 and, thereafter, illegally re-entered the United States. FLORES-DUARTE faces a maximum term of imprisonment of two years, a maximum fine of up to $250,000, a maximum term of supervised release of up to one year, and a mandatory $100 special assessment fee. U.S. Attorney Evans praised the work of the United States Immigration and Customs Enforcement and Lafourche Parish Sheriff’s Office in investigating this matter. Assistant U.S. Attorney Carter K.D. Guice, Jr. of the General Crimes Unit is in charge of the prosecution.


title: Pittsburgh Resident Sentenced for Possession of Firearm with Obliterated Serial Number

body_text: PITTSBURGH, Pa. - A resident of Pittsburgh, Pennsylvania, has been sentenced in federal court to time served—approximately 16 months of imprisonment—to be followed by three years of supervised release on his conviction of possession of a firearm with an obliterated serial number, United States Attorney Eric G. Olshan announced today. United States Senior District Judge David S. Cercone imposed the sentence on Raymond Young, 22. According to information presented to the Court, on January 12, 2022, Allegheny County Police detectives were working in the Homestead area on a violent crime suppression detail when they observed Young preparing to smoke marijuana. When approached by the detectives, Young reached for his waistband, where he had concealed a stolen and loaded Glock 23 semi-automatic handgun with a round in the chamber. The serial numbers on the slide and frame of the weapon were obliterated. Also recovered from Young’s person incident to his arrest were $544 in cash, approximately 100 grams of marijuana, and a black digital scale. Assistant United States Attorney Brendan T. Conway prosecuted this case on behalf of the government. United States Attorney Olshan commended the Allegheny County Police Department for the investigation leading to the successful prosecution of Young.


title: Five Members and Associates of the Genovese Crime Family Plead Guilty to Various Felony Charges, Including Illegal Gambling

component: USAO - New York, Eastern

body_text: Earlier today, in federal court in Brooklyn, Salvatore Rubino, also known as “Sal the Shoemaker,” an associate of the Genovese organized crime family of La Cosa Nostra, pleaded guilty to operating an illegal gambling business associated with the crime family. Previously, on April 5, 2024, four co-defendant members and associates of the Genovese crime family pleaded guilty to various felony charges stemming from their long-running operation of several lucrative gambling operations in the Eastern District of New York . Carmelo “Carmine” Polito, a former acting captain and a soldier within the Genovese crime family, pleaded guilty to racketeering involving the operation of an illegal gambling business and an attempted extortion. Joseph Macario, also known as “Joe Fish,” a soldier within the Genovese crime family, also pleaded guilty to racketeering. Joseph Rutigliano, also known as “Joe Box,” and Mark Feuer, associates of the Genovese crime family, pleaded guilty to felony charges relating to the operation of various illegal gambling businesses also associated with the crime family. The proceedings were held before United States District Judge Eric N. Vitaliano. Breon Peace, United States Attorney for the Eastern District of New York, James Smith, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Anne T. Donnelly, District Attorney, Nassau County District Attorney’s Office, announced the guilty pleas. “With their guilty pleas, these five members and associates of the Genovese crime family have admitted they committed crimes to benefit a criminal enterprise notorious for inflicting harm on our communities for generations,” stated United States Attorney Peace. “As long as the Mafia doesn’t get it that illegal gambling is a losing proposition, they can bet on this Office and our partners vigorously enforcing the law and flushing them out of the shadows, as in this case, where they operated secretly in a coffee bar and a shoe repair shop.” Mr. Peace expressed his appreciation to the New York City Police Department and the Nassau County Police Department for their invaluable assistance in the investigation. “These Mafia figures operated surreptitiously in back rooms of restaurants and retail locations in suburban Long Island, running underground gambling parlors and kicking up the profits to the Genovese crime family,” said Nassau County District Attorney Anne T. Donnelly. “For decades, organized crime families have steered violence and other illicit activities in our communities. With our partners at the EDNY, FBI, and the Nassau County Police Department, we are doubling down on driving out these illegal gambling operations.” As detailed in earlier court filings and in facts presented at the guilty plea hearings, members of the Genovese and Bonanno organized crime families operated several illegal gambling operations in the Eastern District of New York. Beginning in at least May 2012, the Genovese and Bonanno families jointly operated a lucrative illegal gambling operation in Lynbrook, New York called the Gran Caffe. The profits earned through the Gran Caffe and other illegal gambling locations generated substantial revenue, which was then “kicked up” to the crime families’ leaders. Rutigliano and Rubino collected the proceeds for the Genovese crime family and distributed them up to higher-ranking members, including Polito and Macario. In addition to the Gran Caffe, the Genovese crime family—through Polito, Macario, Rutigliano, Rubino and others—operated illegal gambling parlors at establishments called Sal’s Shoe Repair and the Centro Calcio Italiano Club. Carmelo Polito, a former acting captain in the Genovese crime family, also operated an illegal online gambling scheme in which bets were placed on sporting events through a website called “PGWLines.” In connection with his operation of PGWLines, Polito attempted to extort an individual who lost several thousand dollars in bets he placed through the website. For example, in an October 2019 call concerning a delinquent debtor whose “face” Polito had previously threatened to “break,” Polito instructed another individual to relay a new message to the debtor: “Tell him I’m going to put him under the f------g bridge.” The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys Tanya Hajjar, Drew Rolle, Anna Karamigios and Sean Sherman are in charge of the prosecution. The Defendants : JOSEPH MACARIO (also known as “Joe Fish”) Age: 69 West Islip, New York CARMELO POLITO (also known as “Carmine Polito”) Age: 64 Whitestone, New York SALVATORE RUBINO (also known as “Sal the Shoemaker”) Age: 60 Bethpage, New York JOSEPH RUTIGLIANO (also known as “Joe Box”) Age: 65 Commack, New York MARK FEUER Age: 61 Oceanside, New York E.D.N.Y. Docket No. 22-CR-356 (ENV)


title: Detroit Woman Sentenced to 7 Years for Shooting at Federal Agents

component: USAO - Michigan, Eastern

body_text: DETROIT – A Detroit woman who shot at federal agents while they were executing a search warrant at her apartment was sentenced to seven years in prison, United States Attorney Dawn N. Ison announced today. Ison was joined in the announcement by Cheyvoryea Gibson, Special Agent in Charge of the FBI in Michigan. Gloria Bush, 42, was sentenced after having pleaded guilty to assaulting a federal officer and using and carrying a firearm during and in relation to a crime of violence. According to court documents, in April 2021, the Drug Enforcement Administration Special Response Team executed a search warrant at Bush’s residence. Federal agents on the Team approached the door of Bush’s residence and announced their presence. As they attempted to enter the house, Bush fired two shots in their direction from inside the house. One bullet struck a shield that one of the agents was holding. “This case demonstrates how our federal law enforcement partners put their lives at risk every day doing the work necessary to keep our community safe,” said U.S. Attorney Ison. “This defendant’s actions not only endangered the lives of federal agents, but also the lives of all those living around her who could have been struck by gunfire.” “Every day brave men and women in law enforcement put themselves in harm’s way to keep the citizens of Michigan safe,” said Cheyvoryea Gibson, Special Agent in Charge of the FBI in Michigan. “In this case, agents from DEA’s Special Response Team were assaulted while executing a court authorized search warrant. I’d especially like to recognize the DEA SRT operators as heroes based on their discipline and high level of training they exhibited when they were able to safely effect the arrest of Gloria Bush despite coming under fire.” This case was investigated by the Federal Bureau of Investigation and was prosecuted by Assistant U.S. Attorneys Ranya Elzein and Nicholas McIntyre.


title: Former NBA Player William Bynum Sentenced To 18 Months In Prison For Making False Statements To The NBA Players’ Health And Welfare Benefit Plan

component: USAO - New York, Southern

body_text: Damian Williams, the United States Attorney for the Southern District of New York, announced today that WILLIAM BYNUM was sentenced to 18 months in prison for his role in a scheme to make false statements to the National Basketball Association (“NBA”) Players’ Health and Welfare Benefit Plan (the “Plan”). On November 15, 2023, BYNUM was found guilty of conspiring to make false statements relating to health care matters following a three-week trial before U.S. District Judge Valerie E. Caproni, who imposed today’s sentence. U.S. Attorney Damian Williams said: “The defendant took part in this broad criminal scheme targeting a health care benefit plan. He also took the stand at trial and lied to the jury while under oath. His sentence stands as a stark warning that prison time awaits any who seek to defraud and obstruct justice.” According to the Indictment, trial testimony and exhibits, public court filings, and statements made in court: The Plan is a health care plan providing benefits to eligible active and former players of the NBA. BYNUM is a former NBA basketball player who was eligible to obtain reimbursement for certain eligible health care expenses from the Plan. From at least in or about 2018, up to and including at least in or about 2019, BYNUM participated in a scheme with several other former NBA players, including Terrence Williams and Keyon Dooling, to defraud the Plan. In late 2018, Terence Williams sent BYNUM fake invoices that purported to relate to $200,000 in medical services BYNUM received at a Los Angeles-area chiropractor. In reality, BYNUM had not received these services and the invoices were false. BYNUM submitting these false claims to the Plan, seeking reimbursement. The Plan reimbursed BYNUM for the majority of his false claims. BYNUM and his co-defendant Ronald Glen Davis proceeded to trial in November 2023. During the course of the trial, BYNUM took the stand in his own defense. During the course of his trial testimony, BYNUM committed perjury and obstructed justice. * * * In addition to his prison term, BYNUM, 41, of Bensenville, Illinois, was ordered to forfeit $182,224.09 and pay restitution of $182,224.09. Williams and Dooling previously pled guilty and were sentenced to 10 years and 30 months in prison, respectively. Davis was convicted of conspiracy to commit health care fraud, wire fraud, health care fraud, and conspiring to make false statements relating to health care matters and is scheduled to be sentenced on May 9, 2024, at 11:00 a.m. Mr. Williams praised the outstanding investigative work of the Federal Bureau of Investigation. The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Ryan B. Finkel and Daniel G. Nessim are in charge of the prosecution.


title: Ohio Financial Planner Sentenced to Prison for Promoting an Illegal Charitable Contribution Tax Shelter

body_text: A financial planner from Cleveland was sentenced to 20 months in prison for conspiring to defraud the United States by promoting an illegal tax shelter scheme involving false charitable deductions. According to court documents and statements made in court, Rao Garuda was the president and chief executive officer of Associated Concepts Agency Inc. He promoted a fraudulent tax shelter known as the “Ultimate Tax Plan” or the “Advanced Legacy Plan” that was organized, marketed and sold by his co-conspirator, Michael Meyer. They marketed the scheme as a way for high-income clients to reduce their taxes by claiming deductions for charitable donations that the organizers knew were fraudulent. In particular, Garuda and others promoted the scheme as a way for clients to receive the deduction without relinquishing ownership or control over the assets the clients purported to have donated. Garuda continued to sell the scheme despite being warned by several attorneys that the scheme was illegal. Garuda also assisted clients in backdating documents so that clients could claim purported donations on their prior years’ tax returns. In April 2018, the Justice Department filed a civil suit against Meyer seeking to enjoin him from continuing to promote the Ultimate Tax Plan. As part of that litigation, the Justice Department issued civil subpoenas to Garuda’s clients. In response, Garuda created false, backdated documents and directed clients to submit them to the Justice Department. In April 2019, a federal district court permanently enjoined Meyer from organizing, promoting, marketing or selling the Ultimate Tax Plan. In addition to his prison sentence, U.S. District Judge Bridget Meehan Brennan for the Northern District of Ohio ordered Garuda to serve three years of supervised release and to pay $1,506,399 in restitution. Cullen Fischel, Associated Concepts’ chief operating officer, was sentenced to four months in prison, three years of supervised release and was ordered to pay $268,605 in restitution for his role in the scheme. On April 10, Meyer was sentenced to eight years in prison for his role in the scheme. Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Rebecca C. Lutzko for the Northern District of Ohio made the announcement. IRS Criminal Investigation is investigating the case. Assistant Chief Michael Boteler of the Tax Division and Assistant U.S. Attorney Elliott Morrison for the Northern District of Ohio are prosecuting the case.


title: Former Postal Carrier Pleads Guilty to Theft of Mail in South Berwick and Eliot

component: USAO - Maine

body_text: PORTLAND, Maine: A South Berwick man pleaded guilty today in U.S. District Court in Portland to theft of mail by a postal carrier. According to court records, between January and May 2023, Russell Joaquin , 48, opened and stole the contents of greeting cards from his postal route. Joaquin was interviewed by investigators from the U.S. Postal Service Office of Inspector General and admitted to stealing greeting cards from his mail routes in South Berwick and Eliot to take the cash and gift cards they contained. Joaquin faces up to five years in prison, a fine up to $250,000 and up to three years of supervised release. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. The U.S. Postal Service Office of Inspector General investigated the case with assistance from the Berwick Police Department. ###


title: Moldovan Botnet Operator Indicted for Role in Conspiracy to Unlawfully Access Thousands of Infected Computers Throughout the United States

body_text: Note: Click here to view the wanted poster for Alexander Lefterov PITTSBURGH, Pa. - A Moldovan national has been indicted by a federal grand jury in Pittsburgh for computer fraud crimes, aggravated identity theft, and conspiracy to commit wire fraud, United States Attorney Eric G. Olshan announced today. The nine-count Indictment names Alexander Lefterov, a/k/a “Alipako,” a/k/a “Uptime,” a/k/a “Alipatime,” age 37, of Chisinau, Moldova, as the sole defendant. According to the Indictment, from March 2021 through November 2021, Lefterov and his co-conspirators operated and controlled a botnet comprising thousands of infected computers throughout the United States, including in the Western District of Pennsylvania. Lefterov’s co-conspirators allegedly included “coders” who used their technical expertise to maintain and update the botnet over time. During the conspiracy, Lefterov and his co-conspirators stole victims’ login credentials—i.e., usernames and passwords—from the infected computers and then used the credentials to gain access to victim accounts at financial institutions, payment processers, and retail establishments as means to steal money from the victims. To further monetize the scheme, Lefterov allegedly leased the botnet to other co-conspirators by providing them access to infected computers as well as to the victims’ stolen credentials. Lefterov and his co-conspirators also provided access to the botnet for the purpose of distributing malware, including ransomware, to infected computers within the botnet. As the owner and operator of the botnet, Lefterov allegedly received a percentage-share of profits derived from the scheme. “Lefterov and his co-conspirators allegedly used their sophisticated cyber skills and capabilities to victimize people throughout the country without regard for the financial havoc they wreaked,” U.S. Attorney Olshan said. “This case illustrates the resolve of our office and the law enforcement community to identify and pursue accountability from those who seek to exploit technology for their own personal gain at the expense of ordinary citizens. We will continue our collective fight to keep our neighbors safe regardless of whether they’re out on the street or sitting behind their keyboards.” “Protecting Americans in cyber space is a top priority, and we will aggressively pursue anyone, no matter if they’re on U.S. soil or overseas, who believes our population is an easy target,” said FBI Pittsburgh Special Agent in Charge Kevin Rojek. “The FBI and our partners will continue investigating the sources behind malware intrusions and the hijacking of machines for malicious attacks against Americans online. We urge everyone to practice secure cyber hygiene.” “The United States Secret Service continues to locate cyber criminals wherever they may be, whether domestically or hiding abroad,” said Special Agent in Charge Timothy Burke, U.S. Secret Service Pittsburgh Field Office. “Working with our partners, we will continue these investigations to safeguard Americans from cyber fraud and other illicit activities.” The Indictment against Lefterov was returned on December 28, 2021, and unsealed today. The conspiracy to commit computer fraud, unauthorized access of a protected computer to obtain information for financial gain, and conspiracy to commit wire fraud offenses each carry a maximum penalty of five years in prison. The intentional damage to a protected computer offense carries a maximum penalty of 10 years in prison, and the maximum penalty for each of the aggravated identity theft offenses is not less than two years of imprisonment to run consecutively to any other term of imprisonment imposed. Under the federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant. Assistant United States Attorney Mark V. Gurzo is prosecuting this case on behalf of the government. The Federal Bureau of Investigation and United States Secret Service conducted the investigation leading to the Indictment in this case. The Justice Department’s Office of International Affairs provided valuable assistance in this matter, as did Lithuanian and Moldovan authorities. An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.


title: New Orleans Man Pleads Guilty to Distributing Fentanyl and Illegally Possessing Firearm

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

body_text: NEW ORLEANS, LOUISIANA – KENTRELL HUBBARD , age 25, a resident of New Orleans, pleaded guilty on April 9, 2024 before U.S. District Judge Wendy B. Vitter to distribution of fentanyl, in violation of 21 U.S.C. §§ 841(a)(1) and 841(b)(1)(C) and being a felon in possession of a firearm, in violation of 18 U.S.C. §§ 922(g)(1) and 924(a)(8). According to court documents, in June of 2023, HUBBARD sold fentanyl to a confidential informant for the Bureau of Alcohol, Tobacco, Firearms, and Explosives. One week later, special agents with the Federal Bureau of Investigation observed HUBBARD in possession of a Ruger Model Ruger-57, 5.7 x 28 mm caliber semi-automatic pistol. HUBBARD is prohibited from possessing a firearm because of a prior federal felony conviction for conspiracy to transport stolen vehicles across state lines and a Louisiana conviction for simple burglary. With respect to his conviction for distribution of fentanyl, HUBBARD faces up to 20 years in prison, a fine of up to $1,000,000, and a minimum of three years of supervised release. With respect to his conviction for being a felon in possession of a firearm, HUBBARD faces up to 15 years in prison, up to a $250,000 fine, and up to three years of supervised release. Each count also carries a mandatory $100 special assessment fee. This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. This case was investigated by the Bureau of Alcohol, Firearms, Tobacco, and Explosives. It is being prosecuted by Assistant United States Attorney David Berman of the Violent Crime Unit.


title: Human Smugglers Sentenced for Their Roles in Highway Death of Juvenile

component: USAO - Arizona

body_text: PHOENIX, Ariz. – Gerson Montano, 38, and Robert Dale Hart, 64, both of Tucson, were sentenced last month by United States District Judge Diane J. Humetewa for their roles leading to the death of a 17-year-old undocumented noncitizen. Montano was sentenced to 70 months in prison, followed by five years of supervised released. Montano was convicted of Transportation of Illegal Aliens Resulting in Death. Hart was sentenced to 51 months in prison, followed by five years of supervised release. Hart was convicted of Conspiracy to Transport Illegal Aliens Resulting in Death. On August 3, 2022, at approximately 11 p.m., Arizona Department of Public Safety Officers attempted to stop an SUV traveling westbound on I-10. The SUV failed to yield then abruptly pulled over in the center median of the interstate. Multiple people then fled from the vehicle and ran across the eastbound lanes of traffic. Two individuals who fled were then struck by a semi-truck, both were undocumented noncitizens. One undocumented noncitizen, age 17, died at the scene, while the other was taken to the hospital with serious injuries. The driver of the SUV, who also fled on foot, was Montano. During the subsequent investigation, agents learned Hart had hired Montano to transport the undocumented noncitizens. Homeland Security Investigations, Customs and Border Protection’s United States Border Patrol, and Arizona Department of Public Safety conducted the investigation in this case. Assistant U.S. Attorneys Timothy Courchaine and Lisa E. Jennis, District of Arizona, Phoenix, handled the prosecution. CASE NUMBER: CR-2022-1083-PHX-DJH RELEASE NUMBER: 2024-051_Montano # # # For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/ Follow the U.S. Attorney’s Office, District of Arizona, on X @USAO_AZ for the latest news.


title: Pere Marquette Hotel Developers Sentenced to a Combined Five and Half Years in Prison for Mail Fraud, Money Laundering and Bankruptcy Charges

body_text: PEORIA, Ill. – Pere Marquette Hotel developers Gary E. Matthews and Monte J. Brannan were sentenced yesterday in federal court. Matthews, 81, of the 400 block of Highview Road in East Peoria, Illinois, has been sentenced to 40 months in the Bureau of Prisons. Brannan, 71, of the 3200 block of North Elmcroft Terrace, Peoria, Illinois was sentenced to 24 months imprisonment. At the sentencing hearing before U.S. District Chief Judge Sara Darrow, the Government presented evidence that in 2008, Matthews created GEM Hospitality, LLC for the purpose of owning and developing a premiere hotel complex in downtown Peoria, Illinois. This project included renovating the existing Pere Marquette Hotel, as well as developing a new Marriott Courtyard Hotel. Immediately upon its inception, Matthews began defrauding his investors, sweeping their investments into his existing business accounts, and using their funds for several purposes unrelated to the Pere Marquette project. Brannan joined Matthews as a partner in the project in July 2011, and the Government presented evidence that once both hotels were opened, he and Matthews conspired to steal funds from the investors and lenders to the project and to launder their ill-gotten funds. After a lengthy hearing, Matthews was found individually responsible for stealing more than $3,400,000 from more than thirty individual investors. Matthews and Brannan were found jointly responsible for stealing an additional $4,700,000 from the hotel projects lenders and investors. Also at the hearing, Judge Darrow rejected Matthews and Brannan’s arguments that their actions were simply a contract dispute. In doing so, Judge Darrow noted that at the heart of Matthews and Brannan actions was their repeated decisions to lie and steal from others and that what they did was “theft.” She went on to note that they had hurt the project’s investors and lenders, and the Peoria community through their actions. Brannan pleaded guilty mid-trial to the 3 bankruptcy charges, but both Matthews and Brannan were tried on the remaining 18 counts in the 11-day trial. Matthews was found guilty of all 5 of the mail fraud counts and 12 of the 13 money laundering charges. Brannan was found guilty of all 5 of the mail fraud counts and all 13 money laundering charges. Both Matthews and Brannan were released after their sentencing but were given dates to report to the Bureau of Prisons to begin serving their sentences. Their current bonds remain in full force and effect. “The prosecution and conviction of Matthews and Brannan should serve as a reminder to those who are in positions of trust and authority, that they need to honor that trust.” said United States Attorney Gregory K. Harris. “The large-scale fraud committed in this case caused immense harm to individuals, businesses, and the City of Peoria. We will continue to seek justice and prosecute to the fullest those who take advantage of others for their own personal gain.” "Gary Matthews and Monte Brannan presented a façade of upstanding businessmen, but in reality, they scammed lenders, creditors, and their community,” said Justin Campbell, Special Agent in Charge, IRS Criminal Investigation, Chicago Field Office. “Despite the complexity of their deceitful business dealings, IRS Criminal Investigation and its fellow law enforcement partners were successful in bringing these two fraudsters to justice.” “The U.S. Postal Inspection Service, along with its law enforcement partners, will aggressively investigate all schemes in which the U.S. Mail is used to victimize individuals and businesses and deprive them of their hard-earned money. These sentences are a clear indication that our investigative efforts will not cease until those responsible for such criminal acts are brought to justice,” said Ruth M. Mendonça, Inspector in Charge of the Chicago Division of the U.S. Postal Inspection Service. “Today’s sentence shows that abusive and fraudulent conduct will not be tolerated, and the bankruptcy system and its integrity will be protected through the commitment of U.S. Attorney Harris and our law enforcement partners,” said U.S. Trustee Nancy J. Gargula for Region 10. The United States Trustee Program is the component of the Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws. Region 10, encompassing the districts of Indiana and Central and Southern Illinois, is headquartered in Indianapolis with additional offices in Peoria, IL and South Bend, IN. The case investigation was conducted by the United States Postal Inspection Service and the Internal Revenue Service Criminal Investigation. Assistant U.S. Attorneys Douglas F. McMeyer, Ronald L. Hanna, and William J. Lynch represented the government at trial. The case was presented to a federal grand jury for indictment by Criminal Chief Darilynn J. Knauss.


title: Former Federal Contract Employee Sentenced to 18 Years for Child Pornography

component: USAO - Missouri, Western

body_text: KANSAS CITY, Mo. – A former Lenexa, Kansas, man was sentenced in federal court today after child pornography was found on the cell phone he carried into a secure area at the U.S. Department of Energy’s National Security Campus in Kansas City, Mo. Shaun Walker, 41, currently a resident of Springfield, Mo., was sentenced by U.S. District Judge Stephen R. Bough to 18 years in federal prison without parole. The court also sentenced Walker to 15 years of supervised release following incarceration. Walker will be required to register as a sex offender upon his release from prison and will be subject to federal and state sex offender registration requirements, which may apply throughout his life. On Oct. 11, 2023, Walker pleaded guilty to one count of attempting to distribute child pornography over the internet. Walker was employed by Honeywell Federal Manufacturing and Technology, which is contracted by the Nuclear National Security Administration, at the time of the offense. Walker entered an inner secure area of the U.S. Department of Energy’s Kansas City National Security Campus with his personal cell phone on Nov. 29, 2021. Walker contacted Kansas City National Security Campus security to self-report the violation. Walker gave his cell phone to security personnel, who reviewed the cell phone to determine if any classified material was present on the phone. During the review, a security officer observed numerous images and videos depicting child pornography. Walker’s phone was seized in order to conduct a forensic examination. Investigators found an encrypted folder on Walker’s cell phone that contained 21 images and a video of a 5-year-old girl. Investigators found dozens of additional images and videos of child pornography on Walker’s cell phone. Investigators also found thousands of WhatsApp chats between Walker and females he contacted through a livestreaming pornography website. Walker requested photos and videos of nude underage females conducting sexual acts. As a result of his WhatsApp chats, Walker received and distributed images and videos of child pornography. This case was prosecuted by Assistant U.S. Attorney Catherine A. Connelly. It was investigated by the Department of Energy, Office of Inspector General. Project Safe Childhood This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."


title: Long Island Businessman Sentenced to 24 Months in Prison for Covid-19 Loan Fraud

body_text: Earlier today, at the federal courthouse in Central Islip, Donald Finley, a Locust Valley businessman and owner of the now-defunct Jekyll & Hyde theme restaurant in Manhattan and the Bayville Adventure Park on Long Island, was sentenced by United States District Judge Joan M. Azrack to 24 months in prison. Finley pleaded guilty in May 2023 to disaster relief fraud and wire fraud in connection with his receipt of $3.2 million dollars in small business loans under the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan Program (EIDLP). As part of his sentence, Finley has paid in full $3.2 million in restitution. As part of his sentence, Finley was also ordered to pay a $15,000 fine and complete 500 hours of community service. Breon Peace, United States Attorney for the Eastern District of New York, Thomas Fattorusso, Special Agent-in-Charge, Internal Revenue Service Criminal Investigation, New York (IRS-CI), and Daniel B. Brubaker, Inspector-in-Charge, United States Postal Inspection Service, New York Division (USPIS), announced the sentence. “Finley viewed the deadly pandemic that was gripping the nation as a way to steal millions of dollars in COVID-19 relief funds that he used to purchase a vacation home in Nantucket,” stated United States Attorney Peace. “Today the defendant learned the price to pay for such a shameful crime is a loss of his freedom and full restitution for the victims of his scam. Let this be a lesson to other lawbreakers who have engaged in similar conduct that this Office will not forgive and forget COVID-19 fraud.” “Donald Finley is an admitted criminal, pleading guilty to pocketing millions in COVID-19 relief funds. While he was enjoying his spoils from his ill-gotten gains, many business owners with legitimate needs were just able to keep the doors open. Today’s sentencing means that no one was amused by this Bayville Adventure Park owner’s criminal acts, and he will now face time in prison,” stated IRS-CI Special Agent-in-Charge Fattorusso. USPIS Inspector-in-Charge Brubaker said, “Postal Inspectors and our law enforcement partners are committed to fighting fraud in whatever form it takes, and we will pursue criminals from the busy streets of Manhattan to the shores of a quiet seaside village. We want crooks to know that when you use the mail to defraud the public, justice will be served. Today’s sentencing is proof of that truth.” Congress created the PPP and EIDLP as part of the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act. Enacted on March 29, 2020, the CARES Act provided emergency financial assistance in connection with economic effects of the COVID-19 pandemic. The PPP program was overseen by the Small Business Administration (“SBA”) and various financial institutions received and processed the PPP loan applications, which, if approved, would then be funded directly by the lenders and backed by the federal government. One source of relief provided by the CARES Act was the allocation of funds for the issuance of forgivable loans to small businesses for job retention and certain other expenses through the PPP. The PPP allowed qualifying small businesses to receive unsecured loans on favorable terms, which they were required to use for specified expenses, including payroll costs, interest on mortgages, rent and utilities. Another source of relief provided by the CARES Act was the EIDLP, which provided low-interest financing to small businesses, renters, and homeowners in regions affected by declared disasters. Under the program, EIDLP recipients were eligible to receive advances of up to $10,000 for small businesses within three days of applying for an EIDL Advance which did not have to be repaid. As set forth in court filings, between March 2020 and March 2021, amid the COVID-19 pandemic, Finley fraudulently applied for, and received, at least 29 PPP and EIDLP loans totaling approximately $3.2 million on behalf of corporate entities he controlled. The applications contained false information, bogus financial data and fabricated supporting documentation, all of which was designed to fraudulently induce the SBA and the lenders administering the PPP and EIDL programs to approve the loans. Once the loans were approved, Finley sent the funds through more than 30 bank accounts to prevent tracing of the proceeds, with substantial portions of the stolen funds being used to purchase real property in Nantucket, Massachusetts in February 2021. The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorney Mark E. Misorek is in charge of the prosecution. The Defendant : DONALD FINLEY Age: 61 Locust Valley, New York E.D.N.Y. Docket No. 23-CR-181 (JMA)


title: Former Regions Bank Manager Indicted for Embezzlement and Bank Fraud Scheme

component: USAO - Louisiana, Middle

body_text: A federal grand jury recently returned a four-count indictment charging Eric Jason Schouest, age 53, of Plaquemine, Louisiana, with embezzlement and bank fraud. Schouest appeared for his arraignment and pled not guilty to the pending charges. According to court documents, Schouest was employed at Regions Bank from 2010 to 2021 as a branch manager overseeing business transactions and practices at the Regions Bank Plank Road branch. In his capacity as branch manager, Schouest had the authority to access customer accounts, instruct others to open and close accounts, issue cashier’s checks, and transfer funds in and out of bank customers’ accounts. Beginning in or about 2020, and continuing through in or about April 2021, Schouest exploited his position of trust at Regions Bank to embezzle funds from customer accounts and deposit the money into his personal bank accounts. Schouest would also send false and fraudulent emails and forged documents to other Regions Bank employees to conceal his scheme. Schouest used some of the traceable fraudulent funds to make loan payments on personal items such as a house and a car. Through his scheme, Schouest caused a loss to Regions Bank of more than $250,000. The embezzlement and bank fraud indictment counts are each punishable by a maximum penalty of 30 years in prison and a maximum $1 million fine. This matter is being investigated by the Social Security Administration Office of the Inspector General, the United States Treasury Inspector General for Tax Administration, and the U.S. Secret Service. The case is being prosecuted by Deputy Criminal Chief Edward H. Warner and Litigation Counsel Jennifer M. Kleinpeter. NOTE: An indictment is an accusation by a grand jury. The defendant is presumed innocent until and unless adjudicated guilty at trial or through a guilty plea.


title: New Orleans Tax Preparer Charged with Tax and Covid Fraud

body_text: NEW ORLEANS – United States Attorney Duane A. Evans announced that CELINA BOLTON-FULTZ (“BOLTON-FULTZ”) , age 35, of Slidell, was charged today with thirty counts of assisting in filing false tax returns, in violation of 26 U.S.C. § 7206(2), five counts of filing her own false returns, in violation of 26 U.S.C. 7206(1), four counts of false statements, in violation of 18 U.S.C. § 1001, and two counts of theft of government funds, in violation of 18 U.S.C. § 641. According to the bill of information, from 2018 through 2022, BOLTON-FULTZ submitted thirty false tax returns for seven clients of her tax preparation business. In these tax returns, BOLTON-FULTZ fraudulently inflated her client’s income by adding fake “household help” income to their returns to obtain inflated tax credits that they otherwise would not have been eligible to receive. BOLTON-FULTZ also fraudulently reduced her own income on her 2017-2021 tax year returns, by reducing her gross receipts and reporting false expenses for businesses that she owned. In addition to the tax crimes, BOLTON-FULTZ was charged with two types of fraud concerning funds disbursed under the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”). Specifically, she was charged with four counts of making false statements, in violation of 18 U.S.C. § 1001, for submitting fraudulent applications in 2020 and 2021 for Paycheck Protection Program (“PPP”) loans. To accomplish this fraud, she provided false information about her businesses’ payroll and submitted fake tax forms to support those PPP applications. BOLTON-FULTZ was also charged with theft of government funds, under 18 U.S.C. § 641, for submitting false applications to the Small Business Administration for Economic Injury Disaster Loan (“EIDL”) EIDL funds. In this scheme, BOLTON-FULTZ inflated her businesses’ revenues and expenses and submitted false tax documents to support her EIDL applications. In total, she is alleged to have received $204,103 through the fraudulent PPP and EIDL applications. If convicted of these charges, BOLTON-FULTZ faces up to three years of imprisonment as to each of the tax counts, up to five years of imprisonment as to each of the PPP fraud counts, and up to ten years of imprisonment as to each of the EIDL fraud counts. She also faces a fine of up to $100,000 for the tax counts and up to $250,000 for the PPP and EIDL fraud counts, or the greater of twice the gross gain to the defendant or twice the gross loss to any person under 18 U.S.C. § 3571, or both. Following any term of imprisonment, BOLTON-FULTZ also faces up to three years of supervised release for the PPP and EIDL fraud counts, and up to one year of supervised release for the tax counts. U.S. Attorney Duane A. Evans reiterated that a bill of information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt. The U.S. Attorney’s Office would also like to acknowledge the assistance of IRS Criminal Investigations with this matter. The prosecution of this case is being handled by Assistant U.S. Attorney Nicholas Moses, Health Care Fraud Coordinator.


title: Tucson Man Pleads Guilty to Second Degree Murder of a Child

body_text: TUCSON, Ariz. – Pablo Martinez, Jr., 36, of Tucson, pleaded guilty on Monday to Second Degree Murder for the killing of a child. Sentencing is scheduled for July 5, 2024, before United States District Judge Scott H. Rash. Martinez admitted that on September 29, 2019, he murdered the six-year-old victim by holding the victim’s face under a running bathtub faucet for between five to ten minutes, while giving the victim a bath. The victim inhaled water that caused liquid thermal burns, resulting in his death. The victim was an enrolled member of the Pascua Yaqui Indian Tribe. A conviction for second degree murder carries a maximum penalty of up to life in prison, a fine of $250,000.00, and a term of five years of supervised release. The Federal Bureau of Investigation and the Pascua Yaqui Police Department conducted the investigation in this case. Assistant U.S. Attorneys Frances M. Kreamer Hope and Matthew C. Cassell, District of Arizona, Tucson, are handling the prosecution. CASE NUMBER: CR-19-2617-TUC-SHR RELEASE NUMBER: 2024-052_Martinez, Jr. # # # For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/ Follow the U.S. Attorney’s Office, District of Arizona, on X @USAO_AZ for the latest news.


title: Trempealeau County Man Sentenced To 18 Years For Receiving Child Pornography

component: USAO - Wisconsin, Western

body_text: MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Seth W. Fagan, 33, La Crosse, Wisconsin, was sentenced today by Chief U.S. District Judge James D. Peterson to 18 years in prison for receiving child pornography. This term of imprisonment will be followed by a lifetime period of supervised release. Fagan pleaded guilty to this charge on January 16, 2024. The investigation into Fagan began in March 2023, when a 16-year-old victim in Onalaska, Wisconsin, reported to her school resource officer that she was being threatened and harassed by a Snapchat user. The victim told the officer that she accepted a friend request from a Snapchat user who said he was a teenage male in the area. After exchanging nude photos, the Snapchat user began to threaten the victim, stating that he would send her nude photo to her family and friends if she did not send him more nude images. An investigation into the Snapchat user’s name and records showed that this account, and many other Snapchat accounts, were being controlled by Fagan. Fagan used his Snapchat personas to message numerous minors pretending to be a teenage male. Fagan solicited and received hundreds of images of minors in the community and across the country. In some incidents, he threatened to publicly share the images if the minors did not send him additional images. During the search of Fagan’s devices, law enforcement found many videos of a twelve-year-old victim Fagen was communicating with via Snapchat. Fagan received sexual images of this victim and then threatened to share them if she did not comply with his demands for more images. Fagan recorded a series of videos of this victim where he directed her to perform sexual acts on herself and told her to cry while he watched. At sentencing, Judge Peterson found Fagan’s large number of young victims disturbing and aggravating, and his actions calculating. Judge Peterson observed that Fagan had a commitment to abusive conduct, noting that his behavior towards the twelve-year-old victim was particularly cruel. Judge Peterson also found that Fagan posed a danger to the community and that a long sentence was warranted to protect the public and to reflect the seriousness of Fagan’s conduct. U.S. Attorney Timothy M. O’Shea praised the courage of the victims who came forward in this case. “By doing so, these victims helped stop Fagan’s crimes against them and countless other victims. Sextortion is a terrible crime, and my office will continue to vigorously prosecute those who engage in this disturbing behavior.” According to the FBI, there has been a significant spike in children and teens being threatened and coerced into sending explicit images online, a crime known as sextortion. Sextortion can start on any site, app, messaging platform, or game where people meet and communicate. Most often, the crime starts when young people believe they are communicating with someone their own age who is interested in a relationship or with someone who is offering something of value. Unfortunately, in a sextortion scheme, the abuser uses the original images or video as leverage against the victim. After the criminals have one or more videos or pictures, they threaten to publish that content, or they threaten violence, to get the victim to produce more images. The shame, fear, and confusion children feel when they are caught in this cycle often prevents them from asking for help or reporting the abuse. U.S. Attorney O’Shea urged parents and guardians to talk to their children about sextortion and discuss what they should do if they are being extorted by someone online. “Keep an open dialog with your children and urge them to tell you or another trusted adult if they are ever asked to exchange inappropriate content, even if the situation is uncomfortable.” Additional information about this type of crime can be found at: https://www.missingkids.org/netsmartz/resources https://www.fbi.gov/how-we-can-help-you/scams-and-safety/common-scams-and-crimes/sextortion The charges against Fagan were the result of an investigation conducted by the Wisconsin Department of Justice Division of Criminal Investigation, the Onalaska and Sparta Police Departments, and the Ritchie County Sheriff’s Department in West Virginia. The prosecution of the case has been handled by Assistant U.S. Attorney Kathryn Ginsberg. This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”


title: U.S. Army Financial Counselor Pleads Guilty to Defrauding Gold Star Families

component: Office of the Attorney General

body_text: A New Jersey financial counselor with the U.S. Army and major in the U.S. Army Reserves pleaded guilty today to defrauding Gold Star families and related crimes. Caz Craffy, also known as Carz Craffey, 41, of Colts Neck, pleaded guilty before U.S. District Judge Georgette Castner in Trenton, New Jersey, to six counts of wire fraud and one count each of securities fraud, making false statements in a loan application, committing acts affecting a personal financial interest, and making false statements to a federal agency. “Those who target and steal from the families of fallen American servicemembers will be held accountable for their crimes,” said Attorney General Merrick B. Garland. “Nothing can undo the enormous loss that Gold Star families have suffered, but the Justice Department is committed to doing everything in our power to protect them from further harm.” “Caz Craffy admitted today that he brazenly took advantage of his role as an Army financial counselor to prey upon families of our fallen service members, at their most vulnerable moment, using lies and deception,” said U.S. Attorney Philip R. Sellinger for the District of New Jersey. “These Gold Star families have laid the dearest sacrifice on the altar of freedom. And they deserve our utmost respect and compassion, as well as some small measure of financial security from a grateful nation. We will use every means at our disposal to ensure that those who defraud our military families are held accountable. Caz Craffy now faces the prospect of years in prison for ripping off these families to line his own pocket.” “Those who prey on the family members of fallen soldiers, will be sought out and held accountable,” said Special Agent in Charge Joel Kirch of the Department of the Army Criminal Investigation Division Northeast Field Office. “The hard work, long hours, and dedication of our partners within the Task Force, from the U.S. Attorney’s Office, Defense Criminal Investigative Service (DCIS), FBI, Homeland Security Investigations (HSI), and our own investigative analyst, resulted in this investigation’s swift resolution.” “The families of service members who lost their lives while serving their country deserve to be treated with compassion, dignity, and respect by individuals entrusted to assist them in obtaining survivor benefits,” said Principal Deputy Director James R. Ives of DCIS. “Today’s announcement reflects DCIS and our law enforcement partners’ steadfast commitment to holding accountable those who use their official positions to take advantage of grieving military families.” “Gold Star families are given a title no one would choose because it means they’ve paid the ultimate sacrifice for this country,” said Special Agent in Charge James E. Dennehy of the FBI Newark Field Office. “The soldier, sailor, marine, or airman they loved died during a time of conflict — defending this nation. They are given money and assistance to help ease the burden that comes with losing their loved one, but no amount of money can replace what they’ve lost. Craffey took advantage of his position and defrauded families already going through a tremendous amount of suffering. He is being held accountable, and his victims are seeing justice prevail.” “Craffy disgraced his entrusted position to care for our nation’s military families when he allegedly took advantage of them during a vulnerable time of grief,” said Acting Special Agent in Charge William S. Walker of Homeland Security Investigations (HSI) Newark. “No family, especially our Gold Star families, should have to face further heartache after a loved one’s death by having their financial security ripped out from under them by fraudsters.” According to documents filed in this case and statements made in court: When a member of the Armed Services dies during active duty, his or her surviving beneficiary, now a member of a Gold Star family, is entitled to a $100,000 payment and the servicemember’s life insurance of up to $400,000. These payments are disbursed to the beneficiary in a matter of weeks or months following the servicemember’s death. To assist the beneficiaries in this time of need, the military provides a number of services to the servicemember’s family, including the assistance of a financial counselor. From November 2017 to January 2023, Craffy was a civilian employee of the U.S. Army, working as a financial counselor with the Casualty Assistance Office. He was also a major in the U.S. Army Reserves, where he has been enlisted since 2003. Craffy was responsible for providing general financial education to the surviving beneficiaries. He was prohibited from offering any personal opinions regarding the surviving beneficiary’s benefits decisions. Craffy acknowledged that he was not permitted to participate personally in any government matter in which he had an outside financial interest. However, without telling the Army, Craffy simultaneously maintained outside employment with two separate financial investment firms. Craffy used his position as an Army financial counselor to identify and target Gold Star families and other military families. He admitted to encouraging the Gold Star families to invest their survivor benefits in investment accounts that he managed in his outside, private employment. Based upon Craffy’s false representations and omissions, the vast majority of the Gold Star families mistakenly believed that Craffy’s management of their money was done on behalf of and with the Army’s authorization. From May 2018 to November 2022, Craffy obtained more than $9.9 million from Gold Star families to invest in accounts managed by Craffy in his private capacity. Once in control of this money, Craffy repeatedly executed trades, often without the family’s authorization. These unauthorized trades earned Craffy high commissions. During the timeframe of the scheme, the Gold Star family accounts lost more than $3.7 million, while Craffy personally earned more than $1.4 million in commissions, drawn from the family accounts. Craffy faces a maximum penalty of of 20 years in prison for each count of wire fraud and securities fraud, a maximum penalty of of two years in prison for submitting a false statement on a loan application, and a maximum penalty of five years in prison for the charges of acts affecting a personal interest and false statements to a federal agent. All counts but the securities fraud count are also punishable by a maximum fine of either $250,000 or twice the gain or loss from the offense, whichever is greatest. The securities fraud count is punishable by a maximum fine of either $5 million or twice the gain or loss from the offense, whichever is greatest. A sentencing hearing is scheduled for Aug. 21. The U.S. Securities and Exchange Commission (SEC) has a pending civil complaint against Craffy based on the same and additional conduct. Craffy has been permanently prohibited from association with any member of the Financial Industry Regulatory Authority Inc. (FINRA). The Department of the Army Criminal Investigation Division, DCIS, FBI, and HSI Newark, investigated the case, with assistance from the SEC and FINRA. Assistant U.S. Attorneys Martha K. Nye and Carolyn Silane for the District of New Jersey are prosecuting the case.


title: New York Man Sentenced to 6 Months in Federal Prison for Human Smuggling

component: USAO - New Hampshire

body_text: CONCORD – A Brooklyn New York man was sentenced today in federal court in Concord for smuggling unauthorized immigrants, U.S. Attorney Jane E. Young announces. Abraham Hernandez, 27, was sentenced by U.S. District Court Judge Samantha Elliott to 6 months in prison and 1 year of supervised release. On January 17, 2024, Hernandez pleaded guilty to three counts of bringing in or harboring certain aliens. “The defendant deliberately evaded United States immigration laws by smuggling unauthorized immigrants into this country as cargo,” U.S. Attorney Young said. “Illegally crossing the northern border through the Great North Woods is dangerous and risks human lives. The U.S. Attorney’s Office and the U.S. Border Patrol agents will continue to target those who pose a threat to U.S. border security and deliver consequences to those who prioritize their own profits over the safety of others and the laws of this country.” “Effective enforcement hinges on real penalties for criminal actions,” said Border Patrol Swanton Sector Chief Robert N. Garcia. “Border Patrol continues to enforce the laws of the United States and this prosecution by U.S. Attorney Young and decision by U.S. Court Judge Elliot demonstrates that those attempting to break those laws will be held accountable,” he added. According to the charging documents, on or about June 13, 2023, Abraham was stopped in Pittsburg, New Hampshire while transporting in a Honda SUV nine unauthorized immigrants who were in the United States in violation of law. The United States Border Patrol led the investigation. Assistant U.S. Attorney Geoffrey Ward prosecuted the case. ###


title: Mexican National Sentenced for Wire Fraud and Identity Theft

component: USAO - Kentucky, Eastern

body_text: FRANKFORT, Ky. – A Mexican National who resides in Danville, Ky., Arturo Hernandez-Pozos, 54, was sentenced on Tuesday, by U.S. District Judge Gregory Van Tatenhove, to 42 months in prison, for wire fraud, making a false statement in a passport application, and aggravated identity theft. According to his plea agreement, Hernandez-Pozos was previously removed from the United States on two occasions; and prior to his last removal in 2006, he had assumed the identity of U.S. Citizen who had previously died, at two years of age. Hernandez-Pozos used the U.S. Citizen’s birth certificate and baptismal record. He then procured a social security number for the stolen identity; and on three separate occasions, in 2011, 2015, and 2021, he submitted applications for a U.S. passport using that stolen identity. Ultimately, an investigation by the Social Security Administration OIG revealed that the Social Security Administration had paid Hernandez-Pozos $88,684.50 in disability benefits, from 2017 through 2023, based on his false representation of the stolen identity. When law enforcement arrested Hernandez-Pozos, in June 2023, they conducted a search of his residence and discovered a number of fraudulent identity documents, including 20 social security cards, 14 permanent alien cards, three Mexican matriculation cards, and five driver’s licenses, all in various identities. They also found hologram stickers. Among the identities found was one for Ruben Rodriguez-Ortiz, which was another identity that Hernandez-Pozos had used. Additional investigation revealed that Hernandez-Pozos was taking orders for false identification documents and distributing them to individuals, in Kentucky and across the United States, using the United States Postal Service. There were more than 100 unique social security numbers involved in his scheme to transfer false identification documents. Under federal law, Hernandez-Pozos must serve 85 percent of his prison sentence. Upon his release from prison, he will be under the supervision of the U.S. Probation Office for three years. As part of his sentencing, Hernandez-Pozos must also pay $88,684.50 in restitution to the Social Security Administration. Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Marvin D. Mauldin, Resident Agent-in-Charge, SSA Office of the Inspector General; Lesley Allison, Special Agent in Charge, United States Postal Inspection Service, Pittsburgh Field Division; Rana Saoud, Special Agent in Charge, Homeland Security Investigations, Nashville Field Office; and Mark Woods-Hawkins, Special Agent in Charge, U.S. Department of State's Diplomatic Security Service, Chicago Field Office, jointly announced the sentencing. The investigation was conducted by the SSA-OIG, USPIS, HSI, and U.S. Department of State's Diplomatic Security Service. Assistant U.S. Attorney Emily Greenfield prosecuted the case on behalf of the United States. — END —


title: United States Recovers More Than $2 Million in Aircraft Collision Case

component: USAO - California, Southern

body_text: NEWS RELEASE SUMMARY – April 16, 2024 SAN DIEGO – The United States has recovered $2,020,000 in a lawsuit it brought on behalf of the Department of the Navy for damages incurred as a result of a May 30, 2020, aircraft collision at Brown Field Municipal Airport in San Diego. In 2023, the United States brought a lawsuit against defendants Christopher Sanders, Tac Air Ops, LLC, Tac Air California, Inc., Kapowsin Air Sports, Ltd., the City of San Diego, Brown Field Municipal Airport, Brown Field Aviation Ventures, Inc., and Lancair Corporation seeking damages as a result of the defendants’ negligent acts and/or omissions arising from the aircraft collision. The collision involved a parked United States Marine Corps MV-22 “Osprey” aircraft and a taxiing De Havilland DHC-6-100 “Twin Otter” aircraft, owned by Kapowsin, and leased and operated by the Tac Air defendants. On April 15, 2024, the United States and defendants stipulated to dismiss the case with prejudice, after entering a global settlement agreement in which the United States recovered $2,020,000. “This unfortunate incident caused an MV-22 to be stricken from service, which resulted in a significant loss to the United States and the Department of the Navy,” said U.S. Attorney Tara McGrath. “Securing an early resolution in this case achieved the right result,” said McGrath. This case was handled by Assistant U.S. Attorney Mary Cile Glover-Rogers. Case Number United States of America v. Christopher Sanders et al. , 23-cv-1000-W-DDL SUMMARY OF CLAIMS 1. Negligence 2. Breach of Restrictive Covenants AGENCY The United States brought this lawsuit on behalf of the Department of the Navy


title: Virginia-Based Defense Contractor Pleads Guilty to Bribery Conspiracy Involving Government Contracts Worth More Than $100 Million

body_text: NEWS RELEASE SUMMARY – April 16, 2024 SAN DIEGO – Cambridge International Systems, Inc., a defense contractor headquartered in Arlington, Virginia, pleaded guilty in federal court today, admitting that it participated in a bribery scheme with the company’s former Executive Vice President Russell Thurston, and former Naval Information Warfare Center employee James Soriano, among others. According to Cambridge’s plea agreement, the company — acting through Thurston and an unnamed employee — gave various things of value to Soriano, including jobs for Soriano’s family and friends, meals, and a ticket to the 2018 MLB All Star Game held at Nationals Park in Washington D.C. One of the friends hired by Cambridge, Liberty Gutierrez, was giving Soriano $2,000 a month from her Cambridge salary, according to Gutierrez’s plea agreement. In return, Soriano, acting in his position as a contracting officer’s representative at Naval Information Warfare Center ensured that Cambridge was awarded two large task orders. Soriano further ensured Cambridge was able to capture a steady stream of government funds by approving various projects on the task orders after they were awarded the contract, including more than 70 projects on one of the task orders. As a result of the conspiracy, the government obligated more than $32 million on one of the task orders and over $100 million on the other. Soriano also allowed Cambridge employees to draft various procurement documents for him, even where the company was competing for the contract against other bidders. Thurston and Soriano worked together to remove document properties so other government employees would not know of Cambridge’s involvement in drafting the documents. Cambridge admitted that the company made a total profit of $7,429,995.23 as a result of the conspiracy. Cambridge is next scheduled to appear before U.S. District Judge Todd W. Robinson for sentencing on July 3, 2024. “Service members depend on the honesty and integrity of our nation’s defense contractors to be able to do their jobs,” said U.S. Attorney Tara McGrath. “A business model based on fraud is both illegal and undermines the fairness of the system.” “The guilty plea of Cambridge International Systems, Inc. is a constructive step towards holding the company accountable for its active participation in an illegal scheme that corrupted the government’s acquisition processes,” said Bryan D. Denny, Special Agent in Charge of the Department of Defense Office of Inspector General, Defense Criminal Investigative Service, Western Field Office. “Such illicit actions ultimately waste invaluable U.S. taxpayer money and degrade American warfighter readiness.” “Cambridge International Systems, Inc. demonstrated a culture of complicity in undermining the defense contracting process,” said Special Agent in Charge Tyler Hatcher, IRS Criminal Investigation, Los Angeles Field Office. “IRS:CI is committed to supporting investigations into activities that can harm national security, whether directly or indirectly, and to working with our law enforcement partners to ensure our warfighters are protected from this sort of corruption.” “Bribery and procurement fraud within the Department of the Navy threatens warfighter safety and perpetuates unfair contracting practices that negatively affect honest businesses,” said Special Agent in Charge Greg Gross of the NCIS Economic Crimes Field Office. “NCIS and our partners remain committed to exposing those who abuse the procurement process for personal gain.” Thurston and Soriano are separately charged with conspiracy to commit bribery and bribery in case number 24CR341-TWR. DEFENDANTS Case Number 24-cr-759-TWR Cambridge International Systems, Inc. Arlington, VA SUMMARY OF CHARGES Conspiracy to Commit Bribery - Title 18, U.S.C., Section 371 Maximum penalty: Five years corporate probation; a maximum $500,000 fine or twice the gross gain or loss resulting from the offense, whichever is greatest. INVESTIGATING AGENCIES Defense Criminal Investigative Service Naval Criminal Investigative Service Small Business Administration – Office of Inspector General Internal Revenue Service Criminal Investigation Department of Health and Human Services – Office of Inspector General If you have information regarding fraud, waste, or abuse relating to Department of Defense personnel or operations, please contact the DoD Hotline at 800-424-9098.