title: Texas Man Sentenced for Hate Crimes Following Mass Shooting Targeting Muslims at Car Repair Shop

body_text: A Dallas man was sentenced today to 37 years in prison, with credit for time served in state custody, following his guilty plea to hate crime charges arising out of a fatal shooting at a car repair shop. On Sept. 14, 2023, Anthony Paz Torres, 39, pleaded guilty to five federal hate crime counts for killing one individual and attempting to kill four others during a mass shooting at Omar’s Wheels and Tires in Dallas on Dec. 24, 2015. Torres also pleaded guilty to one count of using a firearm to commit the murder. “As this sentence makes clear, hate crimes fueled by Islamophobia, or by bias of any kind, will be met with the full force of the Justice Department,” said Attorney General Merrick B. Garland. “No person in this country should have to live in fear because of who they are, what they look like, or how they pray.” “The defendant attempted to commit a mass shooting and intentionally targeted victims at a Muslim-owned business,” said FBI Director Christopher Wray. “This case is an abhorrent example of how deadly Islamophobia can be in our own country and the severe consequences that wait for anyone who commits acts of hateful violence. The FBI places civil rights investigations as one of our highest priorities because everyone deserves to practice their religion without fear.” “No person in the United States should fear that they will be the target of violence because of their religion,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The sentence handed down today ensures that Torres will be held accountable for the hate-fueled, Islamophobic violence he inflicted on the victims in this case. The Justice Department will continue to vigorously investigate and prosecute such hate crimes.” “North Texans come from a variety of religious traditions and backgrounds, and no one should have to live in fear because of the way they worship,” said U.S. Attorney Leigha Simonton for the Northern District of Texas. “This case demonstrates the U.S. Attorney’s Office’s dedication to protecting members of our north Texas community from acts of violence fueled by hatred toward any religious group. Let the message be clear: if you commit such acts, we will seek to prosecute you and send you to prison for as long as possible.” According to court documents, Torres admitted that a few days prior to the shooting, he went to Omar’s Wheels and Tires, made anti-Muslim comments, and pledged that he would come back. When he returned to the business on Dec. 24, 2015, Torres asked customers if they were Muslim. After being escorted back to his vehicle by Omar’s Wheels and Tires employees, Torres discharged his firearm in the direction of multiple employees and customers. Torres admitted that he killed one person and attempted to kill four other people at Omar’s Wheels and Tires because he believed that they were Muslim. The FBI Dallas Field Office investigated the case, with assistance from the Dallas Police Department and Dallas Criminal District Attorney’s Office. Assistant U.S. Attorney Nicole Dana for the Northern District of Texas and Rebekah J. Bailey, formerly a Trial Attorney with the Justice Department’s Civil Rights Division, prosecuted the case, with the help of Assistant U.S. Attorney Stephen Gilstrap for the Northern District of Texas. For more information and resources about the Department’s work to combat hate crimes visit www.justice.gov/hatecrimes .


title: St. George Man Sentenced to 72 Months’ Imprisonment for Child Pornography Charge

component: USAO - Utah

body_text: ST. GEORGE, Utah – James Edgar Conner, 42, of St. George, Utah, was sentenced today to 6 years’ imprisonment, and 15 years’ supervised release after he admitted to receipt of child pornography. According to court documents and statements and admissions made at the change of plea hearing, from April 2019 through June 2023, in the District of Utah, Conner knowingly possessed electronic files depicting child pornography. An investigation into Conner began in June 2023, when law enforcement received multiple cybertips for a Synchronoss account that belonged to Conner. Synchronoss provides cloud data storage for wireless customers. The cybertips revealed child sexual abuse material (CSAM). Law enforcement executed a search warrant for Conner’s Synchronoss account, and the return showed the account was associated with Conner’s cellphone and email address. Inside the account, law enforcement found 23 child pornography videos as well as personal identifying information such as Conner’s paychecks, driver’s license, and work badge. Law enforcement also found several surreptitious videos that Conner covertly recorded of adult women using his restroom. On June 27, 2023, law enforcement executed a search warrant on Conner’s residence in St. George. Prior to the execution of the search warrant, law enforcement arrested Conner. During the search, officers found a number of digital devices including cellphones and covert camera equipment in the residence, among other items. During an interview, Conner admitted knowingly downloading multiple CSAM videos to his phone, some of which depicted children under the age of 10. The case was investigated by the St. George Police Department. Assistant United States Attorney Chris Burton of the U.S. Attorney’s Office for the District of Utah prosecuted the case. This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc .


title: Pascagoula Man Pleads Guilty to Possession with Intent to Distribute Methamphetamine

component: Federal Bureau of Investigation (FBI)

body_text: Gulfport, MS – A Pascagoula, Mississippi man pleaded guilty to possession with intent to distribute 55.3 grams of methamphetamine. Timothy Harper, 42, pled guilty in U.S. District Court in Gulfport. According to court documents, on October 24, 2023, a clear plastic bag containing suspected methamphetamine was purchased from Timothy Harper in Pascagoula. A subsequent laboratory test of the substance confirmed that Harper sold 55.3 grams of methamphetamine at 98% purity. Harper pleaded guilty to possession with intent to distribute a controlled substance. He is scheduled to be sentenced on August 14, 2024, and faces up to twenty years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. U.S. Attorney Todd W. Gee of the Southern District of Mississippi and Special Agent in Charge Robert A. Eikhoff of the Federal Bureau of Investigation made the announcement. The case was investigated by the Federal Bureau of Investigation and the South Mississippi Metro Enforcement Team. Assistant U.S. Attorney Lee Smith is prosecuting the case.


title: Fleeing felon sent to prison for firearm and meth

component: USAO - Texas, Southern

body_text: CORPUS CHRISTI, Texas – A 41-year-old Corpus Christi man has been ordered to federal prison following his convictions of possessing narcotics with the intent to distribute, being a felon in possession of a firearm and possessing firearms in furtherance of a drug trafficking crime, announced U.S. Attorney Alamdar S. Hamdani. A federal jury sitting in Corpus Christi convicted Jason Ramirez May 10, 2022, following a two-day trial. U.S. District Nelva Gonzales Ramos has now ordered Ramirez to serve 120 months in federal prison for being a felon in possession of a firearm and drug trafficking. He received an additional six-month sentence for possessing a firearm in furtherance of drug trafficking. The prison terms will run consecutively for a total 126-month sentence of imprisonment. The sentence will be immediately followed by five years of supervised release. At trial, the jury heard that on Feb. 29, 2020, law enforcement pursued Ramirez after he failed to yield at a stop sign. He soon crashed into a concrete fountain at a local park and fled on foot. Shortly after, they discovered Ramirez in a nearby neighborhood and arrested him. At the time of arrest, authorities discovered a pistol and meth in Ramirez’s vehicle. Upon searching his phone, law enforcement discovered messages related to the selling of drugs and pictures of Ramirez posing with the firearm. The defense attempted to convince the jury that the gun and meth found in the car did not belong to Ramirez. However, the jury saw video evidence of Ramirez fleeing from the vehicle and footage showing the discovery of the weapon and narcotics. The jury did not believe those claims and found him guilty as charged. Ramirez has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future. The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation with the assistance of the Drug Enforcement Administration and the Corpus Christi Police Department. Assistant U.S. Attorney John R. Lamont prosecuted the case.


title: Pennsylvania Man Sentenced for Sex Offender Registration Violation

component: USAO - West Virginia, Northern

body_text: CLARKSBURG, WEST VIRGINIA – Larry Collins Bryan, 65, of Waynesburg, Pennsylvania, was sentenced today to 84 months for failing to update his sex offender registration. According to court documents and statements made in court, officers were called to an apartment complex in Morgantown, West Virginia, for an altercation between Bryan and a female tenant in the complex who believed Bryan had inappropriately touched her child. Bryan was convicted of statutory rape of a minor in 1992 in Greene County, Pennsylvania, which requires him to register for life as a sex offender. Bryan had been living at the Morgantown complex for more than a year but had not registered as a sex offender in the state of West Virginia. Chief U.S. District Judge Thomas S. Kleeh found that Bryan committed the offense of third-degree sexual abuse against the child in violation of West Virginia law after the mother’s allegation was substantiated by a surveillance video. Bryan will report for five years of supervised release following his prison sentence. Assistant U.S. Attorney Sarah Wagner prosecuted the case on behalf of the government. This case was investigated by the United States Marshals Service and the West Virginia State Police. ###


title: Firearm smugglers sent to prison for illegally purchasing and transporting 21 pistols into Mexico

body_text: LAREDO, Texas – Two Mexican nationals have been sentenced following their convictions of firearm smuggling, announced U.S. Attorney Alamdar S. Hamdani. Sadir Arvizu Velazquez, 40, and his son, Sadir Arvizu Barcenas, 19, both Mexican citizens residing in Querétaro, Mexico, pleaded guilty Oct. 11, 2023. U.S. District Judge John A. Kazen has now imposed a 52-month-term of imprisonment for Velazquez, while Barcenas received 37 months. Not U.S. citizens, they are expected to face removal proceedings following their sentences. In imposing the prison terms, Judge Kazen stated that some degree of planning was evident since the men traveled from Mexico to the United States for the specific purpose of violating federal laws. On Nov. 5, 2022, the father and son duo flew to Dallas from Mexico City, Mexico, to enlist the assistance of James Mwangangi Kiilu, 22, Denton, to buy 21 semi-automatic pistols between Nov. 6, 2022, and Nov. 9, 2022. Kiilu agreed to purchase pistols in his name and falsely certify on federal forms that the pistols were only for him. After purchasing the weapons, Kiilu delivered them to Velazquez and Barcenas. On Nov. 9, 2022, authorities observed Kiilu, Velazquez and Barcenas loading the pistols into a secret compartment of a small compact car, a Chevrolet Spark, modified with a secret compartment to conceal the pistols. The men then disposed of the pistol boxes, bags and receipts. Law enforcement subsequently conducted traffic stops on Kiilu, who drove a rented SUV, and Velazquez who drove the Chevrolet Spark. Authorities found the pistols in the hidden compartment within the compact car. Law enforcement seized the firearms which have since been forfeited to the United States. On Feb. 1, U.S. District Judge Micaela Alvarez ordered Kiilu to serve 52 months in prison to be followed by three years of supervised release. Velazquez and Barcenas will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future while Kiilu will remain on bond until ordered to self-surrender. The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation with assistance from the Laredo Police Department. Assistant U.S. Attorney Homero Ramirez prosecuted the case. This case as part of the joint federal, state and local Project Safe Neighborhoods (PSN) Program. In May 2021, Attorney General Merrick B. Garland announced a new effort to reduce violent crime, including the gun violence that is often at its core. Integral to that effort was the reinvigoration of PSN, a two-decade old, evidence-based and community-oriented program focused on reducing violent crime. The updated PSN approach, outlined in the department’s Comprehensive Strategy for Reducing Violent Crime is guided by four key principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence, setting focused and strategic enforcement priorities and measuring the results of our efforts. The fundamental goal is to reduce violent crime, not simply to increase the number of arrests or prosecutions.


component: Civil Rights Division


title: La Crosse Gun Store Burglar Sentenced to 6 ½ Years in Prison for Illegally Possessing Guns

component: USAO - Wisconsin, Western

body_text: MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Mackey Drake, 23, La Crosse, Wisconsin, was sentenced today by U.S. District Judge William M. Conley to 6 ½ years in prison for possessing firearms as a felon. Drake pleaded guilty to this charge on January 17, 2024. The prison term is to be followed by 3 years of supervised release. On April 25, 2023, at approximately 3:00 a.m., Drake and two others broke into a gun store in Rockland, Wisconsin, and stole 41 firearms and cash. Law enforcement quickly identified Drake and arrested him later in the day when he arrived at a meeting with his state Department of Corrections agent. Drake was on extended supervision at the time, after serving prison sentences for felony robbery convictions in 2017 and 2020. Drake admitted to participating in the gun store burglary, and that he sold some of the firearms to Briante Banks, a felon who could not legally possess them. Banks was charged and pleaded guilty in federal court to possessing a firearm as a felon. His sentencing hearing is scheduled for April 26, 2024. At sentencing, Judge Conley noted that some of the guns stolen were still on the street, likely in hands of prohibited persons, and may be used to commit crimes. Judge Conley found that a substantial sentence was necessary to protect the community from Drake, who has shown a propensity for violence in an unbroken chain of criminal conduct. Judge Conley also ordered Drake to pay restitution. “Community safety—where every child can play outside without fear of gun violence and where neighbors feel safe—is paramount for the United States Department of Justice,” said U.S. Attorney Timothy O’Shea. “I am grateful to the ATF, La Crosse Police Department, and La Crosse County Sheriff’s Office for moving quickly to solve this crime which put dangerous weapons in the hands of criminals.” “Firearms trafficking is a tactic that prohibited persons use to acquire firearms and perpetrate violent crime within our communities,” said ATF Special Agent in Charge Travis Riddle, of the St. Paul Field Division. “We are sincerely grateful for our partnership with La Crosse Police Department and La Crosse County Sheriff’s Office and for their diligence that directly led to the swift arrest of the perpetrators and led to the recovery of a majority of the stolen firearms, preventing them from reaching the hands of violent criminals. I am also grateful for the U.S. Attorney’s prosecutorial work on this case, obtaining justice for the federal firearms licensee as well as ensuring these defendants are held accountable for their actions.” Nehemiah Sample and Robert Benson were also charged in connection with the Rockland gun store burglary. Sample pleaded guilty to theft of firearms and was sentenced to 24 months in prison. Robert Benson’s case is still pending, and he is presumed innocent of these charges. The charges against Drake, Sample, Benson, and Banks were the result of an investigation conducted by the La Crosse Police Department, La Crosse County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Corey Stephan prosecuted these cases. These cases have been brought as part of Project Safe Neighborhoods (PSN), the U.S. Justice Department’s program to reduce violent crime. The PSN approach emphasizes coordination between state and federal prosecutors and all levels of law enforcement to address gun crime, especially felons illegally possessing firearms and ammunition and violent and drug crimes that involve the use of firearms.


title: Schenectady Man Sentenced on Drug Convictions

component: USAO - New York, Northern

body_text: ALBANY, NEW YORK – Hason Harres, age 47, of Schenectady, New York, was sentenced today to serve 57 months in federal prison for possessing methamphetamine and fentanyl with the intent to distribute. United States Attorney Carla B. Freedman and Frank A. Tarentino III, Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA) New York Division made the announcement. As part of his previous guilty plea, Harres admitted to possessing and/or distributing more than 1,400 counterfeit oxycodone pills containing fentanyl, as well as 92 grams of methamphetamine. At the time of the offense, Harres was on post-release supervision for a state drug conviction. Senior U.S. District Judge Lawrence E. Kahn also imposed a 4-year term of supervised release and forfeiture of $13,800.00. The DEA investigated the case, and Assistant U.S. Attorney Jonathan S. Reiner prosecuted the defendant.


title: South Texan sent to prison for hauling 32 people in horse trailer

body_text: CORPUS CHRISTI, Texas – A 34-year-old Mission resident has been sentenced following his conviction for transportation of undocumented aliens, announced U.S. Attorney Alamdar S. Hamdani. Simon Garcia III pleaded guilty Dec. 15, 2023. U.S. District Judge Nelva Gonzales Ramos has now ordered Garcia to serve 24 months in federal prison followed by two years of supervised release. At the hearing, the court heard additional evidence regarding the circumstances of the crime such as the heat and cramped conditions. In handing down the sentence, the court noted the number of people transported in the horse trailer. On Sept. 15, 2023, Garcia approached the Falfurrias Border Patrol (BP) checkpoint driving a black Dodge Ram 3500 truck with an attached horse trailer and four horses. A K-9 alerted to the vehicle and authorities referred him to secondary inspection. Upon further investigation, law enforcement discovered 32 people hidden within a storage compartment inside the trailer. All were illegally present in the United States and cramped into a small area. After refusing to get inside the trailer, one person recalled that he was forced into the trailer. Some described how they crossed into the United States and were held at stash houses before masked individuals told them to get into the horse trailer, not move and be quiet. Another person said he was sweating excessively, had a hard time breathing, had no way to escape and feared for his life. Garcia will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future. Homeland Security Investigations and BP conducted the investigation. Assistant U.S. Attorney Liesel Roscher prosecuted the case.


title: Bergen County Tax Preparer Charged in COVID-19 Employment Tax Credit Scheme

component: USAO - New Jersey

body_text: NEWARK N.J. – A federal grand jury returned an indictment today charging a Bergen County, New Jersey, tax preparer with fraudulently seeking more than $150 million from the IRS by filing more than 1,600 false tax returns for himself and his clients that claimed COVID-19-related employment tax credits, U.S. Attorney Phillip R. Sellinger for the District of New Jersey and Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division announced. Leon Haynes of Teaneck, New Jersey, is charged with 55 counts of aiding and assisting in the preparation of false tax returns, five counts of mail fraud, one count of aggravated identity theft, and two counts of tax evasion. Haynes was previously charged by complaint in relation to the same scheme. “As alleged in the indictment, Haynes filed over 1,600 phony tax forms seeking more than $150 million dollars in refunds to which he and his clients were not entitled. He allegedly took advantage of programs earmarked for struggling small businesses who needed financial relief during the COVID 19 pandemic and used them to generate illicit profits for himself. Combatting pandemic fraud in all of its forms is a top priority for this office and our law enforcement partners.” U.S. Attorney Philip R. Sellinger “This is precisely the type of conduct IRS Criminal Investigation and our law enforcement partners are committed to deterring,” Jenifer L. Piovesan, Acting Special Agent in Charge of IRS – Criminal Investigation, Newark Field Office, said. “The defendant’s alleged abuse of a program designed for those in need is appalling. Today’s indictment sends a clear message that we are committed to protecting the integrity of our tax system and relief programs.” In response to the COVID-19 pandemic and its economic impact, Congress authorized an employee retention tax credit that an eligible small business could use to reduce the employment tax it owed to the IRS, also known as the “employee retention credit” or ERC. Congress also authorized a credit that a business could take against employment taxes to reimburse businesses for the wages paid to employees who were on sick or family leave and could not work because of COVID-19. This “paid sick and family leave credit” was equal to the wages the business paid the employees during their leave. As charged in the indictment, from November 2020 to May 2023, Haynes repeatedly exploited these programs that were intended to help small businesses impacted by the COVID-19 pandemic. Acting as a tax preparer, Haynes allegedly filed more than 1,600 false employment tax returns with the IRS claiming COVID-related tax credits on behalf of himself and his clients. Haynes allegedly falsely told his clients that the government was giving out COVID-relief money for businesses and that they were eligible for it simply because they had a business. Haynes allegedly submitted forms to the IRS on behalf of his client’s businesses, often without consulting his clients, that grossly overstated the number of employees and the amount of wages paid to fraudulently claim these COVID-related tax credits. Haynes allegedly submitted similarly false forms for four of his own companies. According to the indictment, based on these and other misrepresentations, Haynes fraudulently sought more than $150 million in tax refunds on behalf of his companies and numerous other businesses in his clients’ names. The IRS allegedly disbursed at least $40 million in tax refunds to Haynes’ clients based on the false tax forms that Haynes filed. Haynes allegedly collected a percentage of the tax refunds the client received from the IRS as a fee. At Haynes’ request, many clients allegedly paid him those fees in cash. Haynes allegedly did not report on his or his businesses’ tax returns some of the income he received from clients as his share of the fraudulent obtained tax refunds. The IRS also allegedly directly mailed Haynes multiple tax refund checks totaling approximately $1.43 million based on false claims he submitted relating to his businesses. Each count of aiding and assisting in the preparation of false returns carries a maximum penalty of three years in prison and a $250,000 fine; each mail fraud count carries a maximum penalty of 20 years in prison and a $250,000 fine; both tax evasion counts carry a maximum penalty of five years in prison and a $250,000 fine; and the count of aggravated identity theft carries a mandatory two year term of imprisonment to run consecutively to any other sentence imposed by the court. U.S. Attorney Sellinger credited special agents of IRS – Criminal Investigation, under the direction of Acting Special Agent in Charge Jenifer L. Piovesan; special agents of the Social Security Administration, Office of the Inspector General, under the direction of Special Agent in Charge Sharon MacDermott, and postal inspectors from the U.S. Postal Service, under the direction of Inspector in Charge Christopher Nielsen, Philadelphia Division, with the investigation. The government is represented by Assistant U.S. Attorney Fatime Meka Cano of the Economic Crimes Unit in Newark and Trial Attorney Samuel Bean of the U.S. Justice Department’s Tax Division. The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty. The District of New Jersey COVID-19 Fraud Enforcement Strike Force is one of five strike forces established throughout the United States by the U.S. Department of Justice to investigate and prosecute COVID-19 fraud. The strike forces focus on large-scale, multi-state pandemic relief fraud perpetrated by criminal organizations and transnational actors. The strike forces are interagency law enforcement efforts, using prosecutor-led and data analyst-driven teams designed to identify and bring to justice those who stole pandemic relief funds. Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form . haynes.indictment.pdf


title: Texas Man Pleads Guilty for Role in Armed Bank Robbery in Northwest Oklahoma City

component: USAO - Oklahoma, Western

body_text: Two Defendants from Nebraska Previously Pleaded Guilty to Their Role in the Armed Bank Robbery OKLAHOMA CITY – Today, CHRISTIAN DELEON LANE , 36, of Dallas, Texas, pleaded guilty to aiding and abetting an armed bank robbery in the metro, announced U.S. Attorney Robert J. Troester. On March 21, 2023, a federal grand jury returned a three-count Indictment against Lane and two co-defendants, David John-Matthew Davis , 40, and Paris Kathryn Mace , 30, both of Omaha, Nebraska, for their roles in a metro bank robbery in February 2023. According to an affidavit previously filed in support of a criminal complaint, on February 23, 2023, Davis entered a bank in northwest Oklahoma City armed with a pistol. The affidavit alleges Davis pointed the firearm at multiple employees and ordered them to open the bank’s vault. After Davis filled a bag with money, he left the bank in a car without a license plate. Authorities found the car abandoned in a nearby parking lot, where surveillance video depicted Davis exit the car and get into a blue SUV driven by someone else. The affidavit further alleges that Mace had rented the blue SUV and that Lane had purchased the abandoned car two days before the robbery. The day after Lane purchased the vehicle, Lane had reported to law enforcement that the car was missing and that he believed it had been stolen, but he declined to file a stolen vehicle report. The affidavit further alleges that surveillance video from an Oklahoma City motel depicted Davis, Lane, and Mace interacting with each other days before the robbery. Today, Lane pleaded guilty to aiding and abetting armed bank robbery, and he admitted to purchasing the vehicle later used in furtherance of the crime. Both Mace and Davis previously pleaded guilty in the case. In October 2023, Mace pleaded guilty to aiding and abetting the armed robbery. In February 2024, Davis pleaded guilty to armed bank robbery and to possession of a firearm during the bank robbery. Each defendant, by pleading guilty to the armed bank robbery, faces punishment up to 25 years in federal prison, a $250,000 fine, and restitution to the victim bank. In addition, Davis faces not less than five years in federal prison and up to life imprisonment, along with a $250,000 fine, for possession of the firearm during the bank robbery. Davis’s sentence for the firearm count must be served consecutively to his sentence for the armed bank robbery. This case is the result of an investigation by the FBI Oklahoma City, Dallas, and Omaha Field Offices and the Oklahoma City Police Department. Assistant U.S. Attorneys Wilson D. McGarry and Daniel Gridley are prosecuting the case. Reference is made to public filings for additional information.


title: California Man Pleads Guilty to Conspiracy to Possess  with Intent to Distribute Methamphetamine

component: Drug Enforcement Administration (DEA)

body_text: Gulfport, MS – A Compton, California man pleaded guilty to conspiracy to possess with intent to distribute a controlled substance. According to court documents, Booker Washington, 52, was identified as being a member of a drug-trafficking organization in California that was sending packages of narcotics to Mississippi dating back to 2019. The investigation yielded 5,766 grams of pure methamphetamine, 236 grams of fentanyl, 84.2 grams of cocaine, and 7.8 kilograms of marijuana that were shipped to the Gulf Coast. According to the U.S. Drug Enforcement Administration, fentanyl is approximately 100 times more potent than morphine and 50 times more potent than heroin. The DEA reports that two milligrams of fentanyl can be lethal, and one kilogram of fentanyl has the potential to kill 500,000 people. More facts on fentanyl can be found at https://www.dea.gov/resources/facts-about-fentanyl and https://www.dea.gov/resources/facts-about-fentanyl . Washington pleaded guilty to conspiracy to possess with intent to distribute a controlled substance. He is scheduled to be sentenced on August 15, 2024, and faces a mandatory minimum of 10 years and a maximum of life in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. U.S. Attorney Todd W. Gee of the Southern District of Mississippi and Special Agent in Charge Steven L. Hofer of the Drug Enforcement Administration made the announcement. The case was investigated by the Drug Enforcement Administration. Assistant U.S. Attorney Erica Rose is prosecuting the case. This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. 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.


title: El Salvadoran National Sentenced to 2 Years in Prison for Illegally Reentering the U.S.

component: USAO - Connecticut

body_text: Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that SALVADOR HERRERA MORALES, 30, a citizen of El Salvador last residing in East Hartford, was sentenced today by U.S. District Judge Jeffrey A. Meyer in New Haven to 24 months of imprisonment for illegally reentering the United States after being deported. According to court documents and statements made in court, in March 2014, Herrera Morales stabbed a victim in East Hartford. In August 2015, he was convicted in state court of assault in the first degree and sentenced to seven years of incarceration. After serving his sentence, Herrera Morales was removed to El Salvador in April 2021. In 2022, he illegally reentered the U.S. In April 2022, Herrera Morales was arrested by East Hartford Police following an incident at a bar where he was intoxicated, punched a security guard, and kicked and shattered a glass door. In June 2022 he was sentenced in state court of criminal mischief and received a sentence of 364 days of imprisonment, execution suspended, and one year of probation. In April 2023, East Hartford Police arrested Herrera Morales for disorderly conduct, assault in the third degree, risk of injury to a child, and threatening in the second degree. These state charges are pending. Herrera Morales has been detained since his federal arrest on April 26, 2023. On January 9, 2024, he pleaded guilty to illegal reentry. This matter was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement. The case was prosecuted by Assistant U.S. Attorney Robert S. Dearington.


title: Webster Groves Man Sentenced to 10 Years in Prison for Gun and Drug Crimes

component: USAO - Missouri, Eastern

body_text: ST. LOUIS – U.S. District Judge Catherine D. Perry on Wednesday sentenced a man who was caught with a methamphetamine in a carjacked vehicle to 10 years in prison. Taylor Aellen Foster, 26, of Webster Groves, Missouri, pleaded guilty in U.S. District Court in St. Louis in November to being a felon in possession of a firearm and possession with intent to distribute methamphetamine. Foster was found unconscious by St. Louis County police on August 7, 2022, in a parking lot at St. Louis Lambert International Airport. When he got out of the vehicle, officers spotted a handgun on the driver’s seat behind Foster and a catalytic converter in the trunk area that had been cut off a vehicle and stolen. As a convicted felon, Foster is barred from possessing firearms. On March 12, 2023, officers at a convenience store on Page Avenue in Overland spotted Foster getting into a 2008 Mitsubishi Eclipse that had been carjacked the day before. The officers tried to pull the vehicle over, but Foster sped off, traveling from Page Avenue onto Interstate 170. After reaching speeds as high as 120 m.p.h., Foster crashed into a Volkswagen, causing that vehicle to hit a Pontiac. Foster ran away but passed out while police were pursuing him. Officers found nine counterfeit $100 bills, marijuana and the Eclipse owner’s work identification in Foster’s bag. They found almost 80 grams of meth in the Eclipse. The St. Louis County Police Department and the Maplewood Police Department investigated the case. Assistant U.S. Attorney Tiffany Becker prosecuted the case. This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.


title: San Pedro Man Sentenced to 30 Years in Prison for Attempting to Persuade Minor to Produce Sexually Explicit Photos of Herself

component: USAO - California, Central

body_text: LOS ANGELES – A South Bay man has been sentenced to 360 months in federal prison for attempting – via text messages and audio calls – to convince an 11-year-old girl to produce child sexual abuse material (CSAM), the Justice Department announced today. Anthony Frank Scovotto, 58, of San Pedro, was sentenced on Monday by United States District Judge Dale S. Fischer. Scovotto pleaded guilty in May 2023 to one count of attempted production of child pornography. In April and May of 2017, Scovotto contacted the victim, whom he believed was 12 years old, via audio calls and text messages. To convince the victim to produce CSAM, Scovotto told the victim that he loved her and that they were “meant for each other.” Scovotto pretended to be 18 years old, and he instructed the victim to contact him in an online chat room. While they were both in the chat room, Scovotto asked the victim to take off her clothes. In text messages, Scovotto asked the victim to send him sexually explicit photographs of herself. In his plea agreement, Scovotto admitted that in 2017 he separately contacted two additional victims online, both of whom were minors. He asked both victims to send him sexually explicit photographs of themselves, which they did. “[Scovotto] preyed upon vulnerable pre-teen and adolescent girls by posing as a teenager or young man and pretending to love and care for them,” prosecutors argued in a sentencing memorandum. “He betrayed their trust and manipulated them for his sexual pleasure.” In arguing in favor of the 30-year prison sentence, prosecutors noted that Scovotto’s criminal history includes a felony conviction in 2001 in Orange County Superior Court for attempted lewd and lascivious acts upon a child younger than 14 years old. The FBI investigated this matter. Assistant United States Attorneys Claire E. Kelly and Scott M. Lara of the Violent and Organized Crime Section prosecuted this case.


title: New Jersey Tax Preparer Charged in COVID-19 Employment Tax Credit Scheme

component: Tax Division

body_text: A federal grand jury in Newark, New Jersey, returned an indictment today charging a New Jersey tax preparer with fraudulently seeking more than $150 million from the IRS by filing more than 1,600 false tax returns for himself and his clients that claimed COVID-19-related employment tax credits. Leon Haynes, of Teaneck, New Jersey, was charged with 55 counts of aiding and assisting in the preparation of false tax returns, five counts of mail fraud, one count of aggravated identity theft and two counts of tax evasion. Haynes was previously charged by complaint in relation to the same scheme. In response to the COVID-19 pandemic and its economic impact, Congress authorized an employee retention tax credit that an eligible small business could use to reduce the employment tax it owed to the IRS, also known as the “employee retention credit” or ERC. Congress also authorized a credit that a business could take against employment taxes to reimburse businesses for the wages paid to employees who were on sick or family leave and could not work because of COVID-19. This “paid sick and family leave credit” was equal to the wages the business paid the employees during their leave. As charged in the indictment, from November 2020 to May 2023, Haynes repeatedly exploited these programs that were intended to help small businesses impacted by the COVID-19 pandemic. Acting as a tax preparer, Haynes allegedly filed more than 1,600 false employment tax returns with the IRS claiming COVID-related tax credits on behalf of himself and his clients. Haynes allegedly falsely told his clients that the government was giving out COVID-relief money for businesses and that they were eligible for it simply because they had a business. Haynes allegedly submitted forms to the IRS on behalf of his client’s businesses, often without consulting his clients, that grossly overstated the number of employees and the amount of wages paid to fraudulently claim these COVID-related tax credits. Haynes allegedly submitted similarly false forms for four of his own companies. According to the indictment, based on these and other misrepresentations, Haynes fraudulently sought more than $150 million in tax refunds on behalf of his companies and numerous other businesses in his clients’ names. The IRS allegedly disbursed at least $40 million in tax refunds to Haynes’ clients based on the false tax forms that Haynes filed. Haynes allegedly collected a percentage of the tax refunds the client received from the IRS as a fee. At Haynes’ request, many clients allegedly paid him those fees in cash. Haynes allegedly did not report on his or his businesses’ tax returns some of the income he received from clients as his share of the fraudulent obtained tax refunds. The IRS also allegedly directly mailed Haynes multiple tax refund checks totaling $1,428,592 based on false claims he submitted relating to his businesses. If convicted, Haynes faces a maximum penalty of 20 years in prison for each mail fraud charge, a maximum penalty of five years in prison for each tax evasion charge, three years in prison for aiding and assisting in the preparation of false return charge and two years in prison for the aggravated identity theft charge. A federal district court judge will determine the sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Phillip R. Sellinger for the District of New Jersey made the announcement. IRS Criminal Investigation, the Social Security Administration’s Office of the Inspector General and the U.S. Postal Service are investigating the case. Trial Attorney Sam Bean of the Justice Department’s Tax Division and Assistant U.S. Attorney Fatime Cano for the District of New Jersey are prosecuting the case. An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.


title: Pocatello Doctor Pays $96,000 to Settle Allegations That He Wrote Unlawful Prescriptions

body_text: POCATELLO – Dr. Gerald Knouf, a family medicine doctor formerly of Pocatello, Idaho, agreed to pay $96,000 to resolve allegations that he wrote unlawful prescriptions, prescribed dangerous combinations of drugs, and billed Medicare and Medicaid for services that were not performed, U.S. Attorney Josh Hurwit announced today. The settlement also restricts Dr. Knouf’s DEA registration for five years. According to the settlement agreement, the government alleged that Dr. Knouf wrote prescriptions for controlled substances that lacked a legitimate medical purpose and/or were issued outside the usual course of professional practice between 2018 and 2023. That included prescriptions for dangerous combinations of drugs, including overlapping prescriptions for opioids, benzodiazepines, and muscle relaxers. The government alleged the Dr. Knouf’s actions violated the Controlled Substances Act (CSA) and the False Claims Act (FCA). “We will continue to hold prescribers accountable for writing unlawful prescriptions for opioids and other controlled substances wherever such conduct is found,” said U.S. Attorney Hurwit. “Cases like this demonstrate my office’s ongoing commitment to protecting our community from drug-related harms no matter who the offender might be, even if, as in this case, the offender is a medical professional.” “The core mission of the Drug Enforcement Administration is to protect our communities, not just from illicit drug dealers, but also from the health care professionals who might misuse their positions of special trust to cause harm,” said David F. Reames, Special Agent in Charge, DEA Seattle Field Division. “The settlement in this case clearly shows that the DEA and our partners will hold everyone, including medical providers, accountable for their actions when they threaten the safety of our communities.” “Medical professionals who prescribe dangerous amounts of controlled substances put their patients at severe risk of overdose and undermine our efforts to halt the opioid crisis,” said Steven J. Ryan, Special Agent in Charge with the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG). “HHS-OIG will continue to work with our law enforcement partners to curb such irresponsible prescribing and billing schemes at every turn.” This matter was investigated jointly by the U.S. Attorney’s Office, the Drug Enforcement Administration, and the U.S. Department of Health and Human Services, Office of the Inspector General, with additional assistance provided by the Idaho Board of Pharmacy, the Idaho State Police, the Pocatello Police Department, and the Idaho Department of Correction. The claims resolved by this settlement are allegations only and there has been no admission or determination of liability. knoufg_settlement_agreement.pdf ###


title: Six Defendants Sentenced To Federal Prison As A Result Of A Joint Drug Trafficking Investigation

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

body_text: PENSACOLA, FLORIDA – Jason R. Coody, United States Attorney for the Northern District of Florida, announced today the sentences of six defendants who were indicted in multiple cases and convicted for their participation in a drug trafficking ring previously active in Escambia County, Florida. The prosecutions were the result of a large-scale multi-agency investigation spearheaded by the Escambia County Sheriff’s Office, the Drug Enforcement Administration, and the United States Postal Inspection Service. “Our local, state, and federal law enforcement partners work tirelessly to keep us safe by removing addictive and deadly controlled substances from our communities,” said U.S. Attorney Coody. “We remain committed to support their efforts through the investigation and prosecution of criminals bringing drugs into North Florida. The imposed sentences illustrate the significant consequences of harming our citizens through their illicit drug trafficking activities.” “We are proud of the combined efforts of our federal, state, and local partners,” said Escambia County Sheriff Chip Simmons. “This successful investigation will have a lasting impact on the availability of dangerous drugs in our area. Our commitment to safe communities remains strong.” From November 2021 through March 2023, law enforcement seized over 26 kilograms of methamphetamine, over a kilogram of cocaine, over 1300 grams of fentanyl, multiple pounds of marijuana, a quantity of heroin, and 12 firearms. As a result of the joint investigation, the following defendants were convicted on drug trafficking charges and/or firearm offenses, and have been sentenced to the following in federal court: Brandon M. Anderson , 32, of Pensacola, Florida, 20 years in prison Oddie A. Mims , 35, of Pensacola, Florida, 12 years in prison Ackrulmauert P. Mims , 30, of Pensacola, Florida, 12 years in prison Keontre M. Dortch , 30, of Pensacola, Florida, 10 years in prison William Contreras , 27, of Pensacola, Florida, 7 years in prison Bryant Lee Williams , 43, of Pensacola, Florida, 5 years in prison Each will also be required to serve a term of supervised release following their prison sentence. “Addictive, destructive, and oftentimes deadly, illegal drugs like fentanyl, methamphetamine, cocaine, and heroin can destroy families and ruin communities,” said DEA Miami Field Division Special Agent in Charge Deanne Reuter. “Strong partnerships between local, state, and federal law enforcement agencies are vital to keeping Florida communities safe and healthy, and DEA remains committed to working with our partners to hold those who distribute this poison in our communities responsible for their actions.” “I commend our law enforcement partners for their exceptional investigative efforts which led to the apprehension of several drug dealers and the seizure of firearms and dangerous illicit drugs,” said Juan A. Vargas, Inspector in Charge, U.S. Postal Inspection Service, Miami Division. “We will continue to identify every level of these criminal enterprises, dismantle them, and hold them accountable.” These cases resulted from a joint investigation by the Escambia County Sheriff’s Office, the Drug Enforcement Administration, the United States Postal Inspection Service, the Bureau of Alcohol Tobacco, Explosives and Firearms, the Florida Department of Law Enforcement, the Pensacola Police Department, the Florida Highway Patrol, the Gulf Breeze Police Department, the Okaloosa County Sheriff’s Office, and the Santa Rosa County Sheriff’s Office. The case was prosecuted by Assistant United States Attorney J. Ryan Love. This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF . 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. As part of its PSN strategy, the United States Attorney’s Office is encouraging everyone to lock their car doors, particularly at night. Burglaries from unlocked automobiles are a significant source of guns for criminals in the Northern District of Florida. Please do your part and protect yourself by locking your car doors. The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html .


title: Concord Resident Charged With Assaulting A DEA Officer With A Deadly Weapon And Other Crimes

component: USAO - California, Northern

body_text: OAKLAND – A federal grand jury has charged two defendants with various crimes, including one defendant with extortion and assaulting a federal officer with a deadly weapon, announced United States Attorney Ismail J. Ramsey; Drug Enforcement Administration (DEA), San Francisco Field Division, Special Agent in Charge Brian M. Clark; Federal Bureau of Investigation (FBI) Special Agent in Charge Robert K. Tripp; IRS Criminal Investigation (CI) Acting Special Agent in Charge Michael Mosley of the Oakland Field Office; and San Francisco Division Postal Inspector in Charge Rafael Nuñez. The superseding indictment—which was returned by a federal grand jury on March 26, 2024, but unsealed today—charges Joel Dowen, 44, of Concord, California, with one count each of mailing threatening communications with intent to extort, in violation of 18 U.S.C. § 876(b), and assaulting a federal officer with a deadly weapon, in violation of 18 U.S.C. § 111(b). The indictment also charges Micah-Luc Almeida, 45, of San Francisco, California, with one count of possession with intent to distribute 3,4-Methylenedioxyamphetamine, commonly known as MDA, in violation of 21 U.S.C. § 841(a)(1) and (b)(1)(C). And it charges Dowen and Almeida together with one count of conspiracy to manufacture, distribute, or possess with intent to distribute MDA, in violation of 21 U.S.C. §§ 846, 841(a)(1), and (b)(1)(C). Dowen had originally been indicted on one count of mailing threatening communications with intent to extort, in violation of 18 U.S.C. § 876(b), on January 9, 2024. “We will protect our federal law enforcement partners when someone harms or threatens them merely for doing their jobs,” said United States Attorney Ismail J. Ramsey. “The defendants here are charged with serious crimes, and I am proud of the work being done by this Office to bring them to justice and safeguard everyone in the Northern District of California, including those sworn to protect us all.” An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, Dowen faces a maximum statutory sentence of 20 years in prison on each of the three charges against him. Almeida faces the same statutory maximum sentence of 20 years in prison on each of the two charges on which he has been indicted. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553. Dowen’s next court appearance is scheduled for May 3, 2024, before the Honorable Jon S. Tigar, United States District Judge for the Northern District of California. Dowen has been in federal custody since his arrest on January 17, 2024, and has been ordered detained pending trial. Almeida’s initial court appearance is scheduled for April 4, 2024, before the Honorable Kandis A. Westmore, United States Magistrate Judge for the Northern District of California. This prosecution is part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks. Assistant United States Attorney Dan Karmel is prosecuting these cases with the assistance of Sara Slattery and Andy Ding. These prosecutions are the result of an investigation by the DEA, FBI, CI, and United States Postal Inspection Service, with assistance from the Bureau of Alcohol, Tobacco, Firearms, and Explosives; San Francisco Homeland Security Investigations; and United States Customs and Border Protection.


title: Mangilao Man Sentenced to 70 Months Federal Prison for Drug Trafficking

body_text: Hagatña, Guam – SHAWN N. ANDERSON, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendant Jacob Vance Manibusan, age 34, from Mangilao, Guam was sentenced to 70 months imprisonment. He was charged with Conspiracy to Distribute Five Grams or More of Methamphetamine Hydrochloride, in violation of 21 U.S.C. § 846 and two counts of Distribution of Five Grams or More of Methamphetamine Hydrochloride, in violation of 21 U.S.C. § 841(a)(1). The Court also ordered four years of supervised release and a mandatory $100 special assessment fee. In addition, defendants convicted of a federal drug offense may no longer qualify for certain federal benefits. From November 2020 to January 31, 2021, Manibusan conspired with others to distribute methamphetamine in Guam. Law enforcement made an undercover purchase of methamphetamine on two occasions. As the organizer of the conspiracy, Manibusan had his then girlfriend and co-defendant, Annalyn Tenorio, assist him with the transactions. The drugs weighed 33.21 grams with a purity of 77%. This is the defendant’s second federal conviction. “Repeat offenders are subject to substantial penalties in federal court,” stated United States Attorney Anderson. “Hopefully this sentence will act as a deterrent to future criminal conduct. I applaud the work of DEA in bringing this defendant to justice.” “With the rising crime rates on Guam, DEA understands the impact of the Methamphetamine epidemic. This drug has destroyed families and most importantly children’s lives ,” said Resident Agent in Charge Kenneth L. Bowman, Guam Regional Office. “We will continue our mission to pursue anyone involved in drug trafficking.” This investigation was conducted by the Drug Enforcement Administration and prosecuted by Stephen F. Leon Guerrero, Assistant United States Attorney in the District of Guam.


title: Lebanon County Man Charged With Distributing Child Pornography

component: USAO - Pennsylvania, Middle

body_text: HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Charles Witherson, III, age 38, of Lebanon, Pennsylvania, was charged by a federal grand jury with distributing child pornography. According to U.S. Attorney Gerard M. Karam, the indictment alleges that on February 5, 2024, in Lebanon County, Pennsylvania, Witherson distributed child pornography. The indictment also alleges that on March 29, 2024, Witherson possessed images of child pornography, including images involving a minor who had not attained 12 years of age. 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 . The FBI investigated the case, and it is being prosecuted by Assistant U.S. Attorney Christian Haugsby. The maximum penalty under federal law for these offenses is up to 40 years’ imprisonment, a lifetime term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines. Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court. # # #


title: Clay County Man Charged with ‘Stolen Valor’ and Benefits Fraud

component: USAO - Minnesota

body_text: BEMIDJI, Minn. – A Dilworth, Minnesota man has been charged in a scheme to defraud the United States Department of Veterans Affairs by falsely claiming to have been a decorated veteran, announced U.S. Attorney Andrew M. Luger. According to court documents, from 2015 through 2020, Mikhail Robin Wicker, 37, carried out a scheme to obtain benefits provided by the United States Department of Veterans Affairs (“VA”) by fraudulently claiming himself to be a decorated veteran of the United States Marine Corps, and falsely claiming that he suffered from combat-related injuries that qualified him for disability and other financial benefits. According to court documents, as part of the scheme, Wicker falsely claimed that he had served in the United States Marine Corps and that he had been a prisoner of war during deployment in Iraq in 2005. Wicker also claimed that he suffered from Post Traumatic Stress Disorder and other injuries from an improvised explosive device attack while he served in Iraq. Wicker submitted forged and falsified documents in support of his benefits application to the VA including a fraudulent DD214 Certificate of Discharge, and a false document purporting to be a Purple Heart certificate. As a result, Wicker received more than $100,000 in veterans’ benefits which he was not entitled to because he had never served in the military. Wicker is charged with one count of wire fraud, one count of false military discharge certificate, one count of fraudulent use of military medals, and one count of theft of government funds. Wicker made his initial appearance today in U.S. District Court before Magistrate Judge Jon T. Huseby. This case is the result of an investigation conducted by the Department of Veterans Affairs, Office of Inspector General, the Department of Defense, Office of Inspector General, and the Social Security Administration, Office of the Inspector General, with assistance from Homeland Security Investigations and the Dilworth Police Department. Assistant U.S. Attorneys Lindsey E. Middlecamp and Hillary A. Taylor are prosecuting the case. An indictment is merely an allegation, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law. wicker_indictment.pdf


title: Ohio Business Owner Pleads Guilty to Tax Offense Related to Illegal Gambling Businesses

body_text: An Ohio woman pleaded guilty today to conspiring to defraud the IRS related to her operation of an illegal gambling business. According to court documents and statements made in court, from 2014 through 2018, Stephanie Condric managed, and later co-owned, Gametastic, an illegal gambling business located in Canton, Ohio. Condric and her co-conspirators did not report to the IRS the cash wages paid to Gametastic’s employees, which caused the business to underpay its employment taxes. In addition, she filed false personal tax returns that concealed a portion of the income she received from Gametastic. Sentencing for Condric is scheduled for a later date. Condric faces a maximum penalty of five years in prison for conspiring to defraud the United States. She also faces a period of supervised release, restitution and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Rebecca C. Lutzko for the Northern District of Ohio made the announcement. IRS Criminal Investigation, the Stark County Prosecutor’s Office, Department of Treasury Office of Inspector General, Homeland Security Investigations, Ohio Casino Control Commission and Ohio Organized Crime Investigations Commission-Major Crimes Task Force are investigating the case. Trial Attorneys Sam Bean and Hayter Whitman of the Tax Division and Assistant U.S. Attorney David Toepfer for the Northern District of Ohio are prosecuting the case.


title: Denver Man Sentenced to more than 19 Years’ Imprisonment for Narcotics Charge

body_text: United States Attorney Susan Lehr announced on April 3, 2024, Jesus Villanueva, 26, of Denver, Colorado, was sentenced in federal court in Omaha, Nebraska, after having pled guilty to possession with intent to distribute methamphetamine and fentanyl. United States District Court Judge Brian C. Buescher sentenced Villanueva to 235 months’ imprisonment. After completing his term of imprisonment, Villanueva will be required to serve a 5-year term of supervised release. There is no parole in the federal system. On March 4, 2023, a Seward County Deputy Sheriff conducted a traffic stop on a white 2021 Chevrolet Tahoe traveling eastbound, near mile marker 382 on Interstate-80. The driver of the Tahoe was identified as codefendant Fausto Antonio Castro-Mendoza. Jesus Villanueva was identified as the front seat passenger. During the course of the traffic stop, the Deputy observed a marijuana product and subsequently searched the Tahoe discovering 43 packages of meth weighing approximately 44 pounds, and 1 package of fentanyl pills weighing approximately 2 pounds. During a post arrest interviews both Castro-Mendoza and Villanueva admitted transporting the meth and fentanyl pills from Denver, Colorado, to Omaha, Nebraska, and that each was being paid to do so. Castro-Mendoza has pled guilty to the same narcotics charge and is scheduled to be sentenced on April 17, 2024. This case was investigated by the Seward County Sheriff’s Office and the Drug Enforcement Administration.


title: Durant Resident Sentenced For Federal Firearms Crime

body_text: MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Bobby William Wells, Jr., age 33, of Durant, Oklahoma, was sentenced to 70 months in prison for being a Felon in Possession of Ammunition. The charges arose from an investigation by the Durant Police Department, the Southeastern Oklahoma State University Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Federal Bureau of Investigation. On June 8, 2023, Wells pleaded guilty to one count of Felon in Possession of Ammunition. According to court documents, Wells admitted to having previously been convicted of a crime punishable by imprisonment for a term exceeding one year, and to possessing ammunition despite knowing he was prohibited from doing so. The Honorable Ronald A. White, Chief Judge in the United States District Court for the Eastern District of Oklahoma presided over the hearing. Wells will remain in custody of the U.S. Marshal pending transportation to a designated United States Bureau of Prisons facility to serve a non-paroleable sentence of incarceration. Assistant United States Attorney Richard J. Lorenz represented the United States.


title: Ada Resident Sentenced For Assault Resulting In Serious Bodily Injury

component: USAO - Oklahoma, Eastern

body_text: MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Amya Elise Walker, age 20, of Ada, Oklahoma, was sentenced to 33 months in prison for one count of Assault Resulting in Serious Bodily Injury in Indian Country. The charge arose from investigations by the Chickasaw Nation Lighthorse Police and the Bureau of Indian Affairs. On September 25, 2023, Walker pleaded guilty to the charge. According to investigators, on May 13, 2023, Walker violently attacked an elderly woman at an Ada residence, leaving the victim with multiple bruises and lacerations requiring medical care. The crime occurred in Pontotoc County, within the boundaries of the Chickasaw Nation Reservation, in the Eastern District of Oklahoma. The Honorable Ronald A. White, Chief Judge in the United States District Court for the Eastern District of Oklahoma, presided over the hearing. Walker will remain in the custody of the U.S. Marshal pending transportation to a designated United States Bureau of Prisons facility to serve a non-paroleable sentence of incarceration. Assistant United States Attorney Kevin Gross represented the United States.


title: Career Offender Sentenced to Ten Years in Federal Prison for  Trafficking Fentanyl Pills and Powder Days After Leaving Prison

component: Federal Bureau of Investigation (FBI)

body_text: PROVIDENCE, RI – A 43-year-old career offender living in Providence whose adult life was described in a court filing by the government as “plagued by bad, evil, criminal, premeditated decisions,” and who most recently led a fentanyl trafficking operation that employed family members and conducted drug deals in the presence of children, was sentenced on Monday to ten years in federal prison, announced United States Attorney Zachary A. Cunha. Rafael Ferrer, 43, who previously used a multitude of aliases, pleaded guilty on March 14, 2023, to conspiracy to distribute 40 grams or more of fentanyl, distribution of 40 grams or more of fentanyl, and distribution of fentanyl. He was sentenced Monday by U.S. District Court Judge William E. Smith to 120 months of incarceration to be followed by four years of federal supervised release. “As Rhode Island continues to grapple with the grim toll of opioid overdoses- particularly those wrought by fentanyl, Rafael Ferrer chose to fan the flames by callously profiting from peddling lethal drugs in our communities,” said U.S. Attorney Cunha. “In the process, he put family members and innocent children at risk, to say nothing of the buyers of his deadly product. The sentence imposed should make one thing clear: we will hold those responsible for this assault on our families, our neighbors, and our communities accountable with every tool at our disposal.” “Rafael Ferrer is a career criminal, committed to leading a family-based drug trafficking organization that peddled deadly poison onto the streets of Providence,” said Jodi Cohen, Special Agent in Charge of the FBI Boston Division. “As he’s now learned, the FBI’s Safe Streets Task Force is just as committed to getting illegal drugs off our streets and freeing our communities from the stranglehold of drug traffickers like him. There’s no doubt the Ocean State is safer with him behind bars.” According to information presented to the court, Ferrer, convicted and incarcerated multiple times over the past two decades for committing violent assault, gun, burglary, and drug trafficking and related offenses, began trafficking fentanyl in June 2019, eight days after his most recent release from the Adult Correctional Institutions. Ferrer had just completed a term of incarceration of over eight years for possession of a firearm by a prohibited person and for a home invasion he committed. He was released in March of 2019 but reincarcerated from May 2019 through a date in June 2019. In the case for which he was sentenced, Ferrer admitted to a federal judge to being a supplier of fentanyl in both pill and powder form. He acknowledged his role as the leader of the drug trafficking organizer in which he organized the sale of fentanyl and directed others, including family members and runners, to deliver the drugs. On 16 dates between June 19, 2019, and November 5, 2019, he arranged for the delivery of fentanyl, on three occasions delivering more than 40 grams of the drug. The case was prosecuted by Assistant United States Attorney Stacey A. Erickson. The matter was investigated by the FBI Rhode Island Safe Streets Task Force. This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. The FBI Rhode Island Safe Streets Task Force is comprised of members of the FBI, Central Falls Police Department, Woonsocket Police Department, Pawtucket Police Department, West Warwick Police Department, Cranston Police Department, and the United States Marshals Service. ###


title: Gun Trafficker Who Tried To Send Firearms To Drug Cartel Members In Mexico Sentenced To Over Thirteen Years In Prison

component: USAO - Florida, Middle

body_text: Tampa, FL – U.S. District Judge William F. Jung has sentenced Yuendry Rodriguez Hilario (29, Cleveland, OH) to 13 years and 4 months in federal prison for conspiring to traffic firearms, possessing firearms in furtherance of drug trafficking, and money laundering. A co-conspirator, Saleh Yusuf Saleh (24, Cleveland, OH), was sentenced on November 30, 2023, before U.S. District Judge Kathryn Kimball Mizelle to 5 years and 8 months’ imprisonment. Rodriguez Hilario and Saleh were arrested in Cleveland, Ohio on March 2, 2023, and Rodriguez Hilario was ordered detained. Rodriguez Hilario entered a guilty plea on November 13, 2023. According to court records, since 2021, undercover agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), posing as Mexican cartel members, were introduced to Rodriguez Hilario because he was a trafficker of firearms that could be smuggled to Mexico. During the investigation, Rodriguez Hilario and others discussed the purchase of AR-15s and rocket-propelled grenade launchers. One of the co-conspirators described that he sold AR-15s and AK-47s to El Salvadorans, and also had cocaine available for distribution. Rodriguez Hilario further offered fentanyl to one of the undercover agents to make pills. Beginning in late-2021, members of the conspiracy sold or arranged the sale of at least 90 rifles and one Mac-10-type machine gun with a silencer to undercover agents in the Middle District of Florida and Cleveland. In November 2022, an undercover agent told Rodriguez Hilario that his associates in Mexico were “battling and losing” and needed to purchase more firearms. On March 2, 2023, Rodriguez Hilario arranged to deliver 40 AM-15 multi-caliber firearms to the undercover agents. Saleh, who acquired and assembled the parts to make the firearms, arrived at the meeting with Rodriguez Hilario and the agents. After an undercover agent inspected one of the boxes of firearms, both Rodriguez Hilario and Saleh were arrested. Image 1: Firearms from the October 21, 2021 sale Images 2-3: Firearms from March 10, 2022 sale Images 3-4: Firearms from May 26, 2022 sale “Combating firearms trafficking networks that arm the Mexican cartels is a top Department of Justice priority,” said Deputy Attorney General Lisa Monaco. “The 13-year sentence imposed in this case reflects the severity of the crime — and years of difficult and dangerous work by ATF agents and their law enforcement partners. Because of their efforts, the Department kept scores of high-powered firearms out of the hands of the Mexican cartels and secured the conviction and lengthy sentences of the traffickers responsible.” “Firearms trafficking is not a victimless crime,” said Director Steven Dettelbach of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). “Those who seek to divert firearms to unlawful markets in Mexico are often arming dangerous drug cartels, who use these high-powered weapons to fuel their criminal activities. ATF will continue to work with our partners at CBP, OCDETF, and the U.S. Attorney’s Office to bring important cases like this and hold gun traffickers accountable.” “This case highlights the joint commitment of the U.S. Attorney’s Office and the OCDETF Panama Express Strike Force to prevent firearms from falling into the hands of transnational criminal organizations,” said U.S. Attorney Roger B. Handberg for the Middle District of Florida. “We are dedicated to disrupting and dismantling transnational criminal organizations and holding gun traffickers accountable for their actions.” “Disrupting firearms trafficking schemes like this is a priority for us,” said ATF Tampa Field Division Special Agent in Charge Kirk Howard. “It took a joint team more than two years to investigate this complex case and bring these suspects to justice.” This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives in Tampa and Columbus, Ohio and is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations. The specific mission of the OCDETF Panama Express Strike Force is to disrupt and dismantle Transnational Criminal Organizations involved in large scale drug trafficking, money laundering, and related activities. The OCDETF Panama Express Strike Force is comprised of agents and officers from the Coast Guard Investigative Service, Drug Enforcement Administration, Federal Bureau of Investigation, and Homeland Security Investigations. The Cleveland Police Department, Ohio State Highway Patrol, Ohio Adult Parole Authority, and the Great Lakes Air and Marine Branch of U.S. Customs and Border Protection also provided assistance. It was prosecuted by Dan Baeza.


title: Carjacker Sentenced To More Than 21 Years In Federal Prison

body_text: Tampa, FL – U.S. District Judge Kathryn Kimball Mizelle has sentenced Rodney Jones (28, Orlando) to 21 years and 10 months in federal prison for carjacking and brandishing a firearm during and in relation to a crime of violence. The sentence consists of 14 years and 10 months for the carjacking offense, followed by a consecutive 7-year sentence for the firearm offense. Jones entered a guilty plea on September 5, 2023. According to court documents, on September 28, 2021, Jones and two others committed a carjacking in the parking garage at a hotel/casino in Tampa. Jones and the others jumped out of a stolen sedan, pointed guns at the victim, and stole his wallet and jewelry. They demanded that the victim identify his car. One of the men then used the victim’s car keys to drive off in the victim’s car, and the others followed in the original stolen sedan. Two days later, an officer from the Orlando Police Department arrested Jones after they found him in the stolen sedan. They recovered a firearm with Jones’s DNA on it near the vehicle. This case was investigated by the Federal Bureau of Investigation and the Seminole Police Department, with assistance from the Orlando Police Department and the Orange County Sheriff’s Office. This case is part of the Middle District of Florida’s Safe Trails Task Force. The Safe Trails Task Force is a partnership between the United States Attorney’s Office, the FBI, the Seminole Police Department, and other federal, state, local, and tribal law enforcement that works to combat the growth of crime in Indian Country. It was prosecuted by Assistant United States Attorney Christopher F. Murray. This case is also part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.


title: Fernandina Beach Man Sentenced To Prison For Threatening To Kill A United States Supreme Court Justice

body_text: Jacksonville, Florida – United States District Judge Marcia Morales Howard has sentenced Neal Brij Sidhwaney (43, Fernandina Beach) to 14 months in federal prison for transmitting an interstate threat to kill. Sidhwaney entered a guilty plea on December 15, 2023. According to court documents, on July 31, 2023, Sidhwaney placed a telephone call from Florida to the Supreme Court of the United States in Washington, D.C., and left an expletive-laden, threatening voicemail message. On the voicemail message Sidhwaney identified himself by name and repeatedly threatened to kill a specific United States Supreme Court Justice. This case was investigated by the Supreme Court of the United States Police – Protective Intelligence Unit with assistance from the United States Capitol Police –Threat Assessment Section. It was prosecuted by Assistant United States Attorney Kirwinn Mike and Special Assistant United States Attorney Joe Wheeler, III.


title: Charleston Man Sentenced to 10 Years in Federal Prison for Possessing with Intent to Distribute Fentanyl and Possessing a Firearm

component: USAO - South Carolina

body_text: CHARLESTON, S.C. —Darrell Troy Capers, 33, of Charleston, was sentenced to 1o years in federal prison after pleading guilty to possessing with intent to distribute fentanyl, cocaine, crack cocaine, heroin, and marijuana, as well as possessing a firearm in furtherance of a drug trafficking crime. Evidence presented to the court showed that on March 18, 2022, Charleston Police Department officers executed a search warrant at the home of Capers. In the home, officers discovered a blue backpack containing fentanyl, cocaine, crack cocaine, heroin, and marijuana. Officers also discovered a stolen firearm in the backpack. The backpack contained a debit card bearing Capers’ name, a pill bottle bearing Capers’ name, and two movie tickets. CPD officers obtained video footage of Capers at the movie theater and at the time indicated on the tickets. Other evidence obtained from the backpack included a whisk, sandwich bags, and a digital scale, consistent with narcotics trafficking. United States District Judge David C. Norton sentenced Capers to 120 months’ imprisonment, to be followed by a five-year term of court-ordered supervision. There is no parole in the federal system. This case was investigated by the Charleston Police Department and the Drug Enforcement Administration. Assistant U.S. Attorney Lee Holmes is prosecuting the case. ###


title: Art Forger Sentenced For Mail And Wire Fraud Conspiracy

body_text: HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that that Earl Marshawn Washington, age 61, and previously a resident of Honolulu, Key West, Las Vegas, and other places, was sentenced to 52 months in prison for conspiracy to commit wire fraud and mail fraud. According to United States Attorney Gerard M. Karam, at the time of his guilty plea, Washington admitted to working with a series of romantic partners, dating back to 2013, to create and sell counterfeit artistic goods known as “woodblocks” or “woodcuts.” Xylography is the art of making “woodcuts,” or engravings made from wooden blocks, especially for printing using historical techniques. In traditional xylography, an artist uses a sharpened tool to carve a design into the surface of a woodblock. The raised areas that remain after the block has been cut are inked and printed, while the recessed areas that are cut away do not retain ink and will remain blank in the final print. Woodblock images can be printed onto paper, fabrics, textiles, or other materials. The technique has been used in different geographic regions at different times. One woodblock tradition stems from Germany starting around the 14th century and continuing for several hundred years thereafter. Washington was originally charged by indictment in January 2023, along with his then wife, Zsanett Nagy. As part of Washington’s plea agreement, the original charges against him were dismissed, and a new charge of conspiracy to commit wire fraud and mail fraud was filed. Washington pleaded guilty to this offense in July 2023. Nagy pleaded guilty in August 2023 to conspiracy to commit wire fraud, mail fraud, and money laundering. Washington and Nagy each admitted to selling inauthentic woodblocks and prints made from woodblocks that they as advertised as being from between the 15th and early 20th centuries. The buyers included a pair of woodblock collectors residing in France, as well as a buyer of a woodblock print who then resided in Hummelstown, Pennsylvania, in the Middle District of Pennsylvania. On one occasion, for example, Washington promised to send the buyers in France fifteen “15th.C Reformation/Lutheran wood blocks.” The buyers then made PayPal payments to Nagy before learning that the woodblocks they purchased were not from the 15th and 16th centuries, as advertised. Nagy received these payments, moved the proceeds to a bank account in her name, and then quickly converted the proceeds to cash through withdrawals of several thousand dollars or more. Together, the buyers in France paid nearly $85 thousand for counterfeit woodblocks. Washington’s buyers also included a collector of woodblocks from York, Pennsylvania, in the Middle District of Pennsylvania. This collector paid $118,810 to Washington and Washington’s then girlfriend from 2013 to 2016 in exchange for approximately 130 woodblocks, again advertised as being several centuries old. In one email, for instance, Washington, using the alias “River Seine,” claimed to be selling “original printing blocks from the 16th and 17th centuries.” At the time of his guilty plea, Washington also admitted to regularly utilizing bank accounts and PayPal accounts belonging to his romantic partners, to utilizing the alias “River Seine” when dealing with customers, and to relying on his partners to handle mailings of packages to victims. Washington was also ordered to pay restitution to victims in the total amount of $203,240.90 and ordered to serve a three-year term of supervised release following his imprisonment. Nagy was sentenced to time served in January 2024. She also faces potential deportation for her conviction. This case was prosecuted by Assistant U.S. Attorney Ravi Romel Sharma and investigated by the Federal Bureau of Investigation’s Art Crime Team - Philadelphia Division, with assistance from the FBI Art Crime Program at FBI Headquarters. The DOJ’s Office of International Affairs provided assistance during the investigation. Assistance was also provided by the French Ministry of Justice, the French National Gendarmerie, the German Federal Criminal Police Office, the State Criminal Police Office of Saxony. # # #


title: Costa Rican National Indicted for Firearm Possession

component: USAO - Louisiana, Eastern

body_text: NEW ORLEANS , LOUISIANA – United States Attorney Duane A. Evans announced that MILTON RAYO-CASTILLO , age 26, a native of Costa Rica, was indicted on March 28, 2024, for being an illegal alien in possession of a firearm, in violation of Title 18, United States Code, Section 922(g)(5)(A). According to the indictment, on or about March 10, 2024, RAYO-CASTILLO , an alien present illegally in the United States, was found in possession of a Glock Model 19X, nine-millimeter semi-automatic pistol, bearing serial number BYGA822. If convicted, RAYO-CASTILLO faces up to 15 years of imprisonment, a fine of up to $250,000, up to three years of supervised release, and a $100 mandatory special assessment fee. U.S. Attorney Evans reiterated that an indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt. 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. U.S. Attorney Evans praised the work of the United States Department of Homeland Security and the Kenner Police Department in investigating this matter. Assistant United States Attorney Spiro G. Latsis of the General Crimes Unit oversees the prosecution.


title: Justice Department Seeks Injunction against Washington Tax Return Preparer for Allegedly Filing Tax Returns with False Claims

body_text: The Justice Department filed a complaint today in the District Court for the Eastern District of Washington against Donald J. Taylor, a former IRS revenue agent and registered enrolled agent, who left the IRS in 2008 to work as a paid tax return preparer in Kennewick, Washington. The civil complaint seeks to bar Taylor from owning or operating a tax return preparation business and preparing federal income tax returns for others. The United States also seeks an order requiring Taylor to disgorge to the United States his ill-gotten tax preparation fees. The complaint alleges that Taylor filed tax returns for customers that were riddled with errors, fabrications and fraudulent entries. The United States alleges Taylor’s main scheme involved taking advantage of the differences between running a business as a sole proprietorship and an S corporation. A sole proprietor is someone who owns an unincorporated business by themselves and reports any income and expenses on Schedule C Profit or Loss from Business (Sole Proprietorship) of their individual tax returns. S corporations are corporations no different from any other corporation under state law that are not subject to federal income tax at the corporate level. An S corporation reports income, deductions and loss on a separate corporate tax return and then issues a Schedule K-1 (Form 1065) to the shareholder, who reports items of income, deduction, loss or credit on their own tax return. As the complaint asserts, Taylor prepared false corporate and individual income tax returns by abusing the S corporation requirements under the Internal Revenue Code to reduce customers’ overall tax liabilities. According to the complaint, Taylor did this (1) by fabricating businesses and related business expenses or willfully or recklessly claiming false or unsubstantiated business deductions; (2) taking deductions for employee paid expenses and employer reimbursements without an accountable plan or reimbursement policy, which is against IRS regulations and (3) unreasonably decreasing the amount of wages employee-shareholder customers receive and correspondingly increasing the amount of S corporation distributions made to them to reduce their tax liability. By repeatedly understating customers’ tax liabilities, the complaint alleges that Taylor caused the United States harm of an estimated $42 million dollars in lost tax revenue between 2017 and 2020. According to the complaint, Taylor’s conduct is more serious because he continued his abusive actions despite being previously penalized twice by the IRS for recklessly or willfully understating customers’ liabilities from 2007 through 2010. Deputy Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division made the announcement. Taxpayers seeking a return preparer should remain vigilant against unscrupulous tax preparers. The IRS has information on its website for choosing a tax return preparer and has launched a free directory of federal tax preparers. The IRS also offers tips on choosing a tax professional as a small business taxpayer. In the past decade, the Justice Department’s Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website . An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page . If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details. USA v. Taylor Complaint.pdf


title: Justice Department Sues Business Operating in Four States and Its Owners to Stop Tax Preparation Fraud

body_text: The Justice Department today filed a civil injunction suit in the U.S. District Court for the Northern District of Texas seeking to permanently bar Mayuen K. Ajak, Yier B. Deng, Bol C. Guot, Gabriel M. Kuot and Golden D4 Heart Tax Services LLC from owning or operating a tax preparation business and preparing tax returns. The complaint also requests that the court require the defendants to disgorge the return preparation fees they obtained by preparing allegedly false or fraudulent tax returns. According to the complaint, Ajak, Deng, Guot and Kuot incorporated Golden D4 Heart Tax Services LLC in Texas in 2018. They currently operate tax preparation stores in Texas, Missouri, Nebraska and Arizona under the name Golden Heart Tax Services LLC. The complaint alleges that the defendants, as well as those acting in concert with the defendants or at their direction, prepared and filed tax returns to falsely increase customers’ refunds. The defendants profit through high and often undisclosed preparation fees, at the expense of customers and the Treasury. According to the complaint, the IRS estimates the harm to the United States in the form of underreported income and unpaid taxes from the defendants’ misconduct could exceed $10 million. The complaint describes the various schemes the defendants, and those acting on their behalf, utilized to make unlawful claims on customers’ tax returns and to overstate their refunds, including: • Falsely claiming the Earned Income Tax Credit; • Fabricating businesses and related business income and expenses; • Claiming false fuel tax credits; • Claiming fabricated COVID-19-related tax credits; and • Claiming false education credits. Taxpayers seeking a return preparer should remain vigilant against unscrupulous tax preparers. The IRS has information on its website for choosing a tax return preparer and has launched a free directory of federal tax preparers. The IRS also offers guidance on the credentials and qualifications that taxpayers should seek from their return preparer. In the past decade, the Justice Department’s Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website . An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page . If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details. U.S. v. Ajak et al Filed Complaint.pdf


title: Intercontinental Terminals Company to Pay Over $6.6 Million for Injuries to Natural Resources Resulting from a Fire at Its Facility Near Houston

component: Energy and Natural Resources Division

body_text: The Justice Department announced today that Intercontinental Terminals Company LLC (ITC) has agreed to pay over $6.6 million to federal and state natural resource trustees to resolve claims for natural resource damages resulting from a 2019 fire at ITC’s Deer Park terminal facility near Houston that released hazardous chemicals. A complaint filed concurrently with the proposed consent decree seeks money damages and costs under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA). The fire resulted in the release of hundreds of thousands of barrels-worth of petrochemical products and firefighting water and foam into Tucker Bayou and surrounding waterways, including the Houston Ship Channel. Designated federal and state trustees determined that the hazardous substances released from ITC’s facility caused significant injuries to ecological resources and services, including birds and marsh and riparian habitat areas. In addition, the hazardous chemicals released into air and water resulted in lost recreational opportunities in the Deer Park area, including temporary closures of multiple state, county and city parks and the Lynchburg Ferry, as well as the cancelation of an annual historical reenactment at San Jacinto State Park. The settlement will be used to compensate the public for natural resource injuries, reimburse trustee agencies for the costs of assessment and fund the restoration planning and oversight process that will guide how restoration will be conducted. After a process that will include an opportunity for public comment, the trustees will use the cash payment to implement natural resource restoration projects to address ecological injuries and enhance recreational use to address lost human use of the injured resources. ITC previously paid about $1 million to reimburse federal and state trustees for their prior assessment costs. “The 2019 fire at ITC’s Deer Park facility released a significant amount of hazardous substances that injured the Houston Ship Channel,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “Today’s settlement will enable restoration work to improve the environment in the channel and other affected waterways in the area and to enhance recreational opportunities for Texas residents and visitors.” “This settlement will help repair, in part, the devastating environmental damage caused by the release of hazardous substances from ITC’s Deer Park facility,” said U.S. Attorney Alamdar S. Hamdani for the Southern District of Texas. “I am committed to the restoration of clean waterways and a diverse ecosystem to benefit the residents of Deer Park.” “NOAA is pleased to have worked cooperatively with industry and our co-trustees to reach an agreement to restore coastal waterways and communities impacted by this catastrophic event,” said Assistant Administrator Nicole LeBoeuf of the National Oceanic and Atmospheric Administration’s (NOAA) National Ocean Service. “Clean and resilient waterways are vital to coastal communities and this restoration will especially benefit those who have been disproportionately impacted by pollution.” “I’m pleased we were able to secure this natural resource damages settlement after the serious destruction caused by the fire at Deer Park,” said Texas Attorney General Ken Paxton. “This fire burned for three days, spewing hazardous chemicals into our air, water, and land. Texas’s environmental enforcement suit against ITC is still pending. All companies operating in our state must take the utmost precaution to prevent any such disaster from harming our citizens and our environment.” The designated federal trustees are NOAA and the Department of the Interior through the Fish and Wildlife Service. The state trustees are the Texas Commission on Environmental Quality, the Texas Parks and Wildlife Department and Texas General Land Office. The federal and state trustees worked with ITC to perform the injury assessment. The Trustees will continue working together to develop and adopt a restoration plan that will be published for public comment. In an earlier related CERCLA enforcement action, the Environmental Protection Agency (EPA) through the Justice Department secured an administrative settlement with ITC for $5.25 million to reimburse the United States for costs in responding to the releases from the fire at ITC’s facility. For more information about the ITC tank fire, see darrp.noaa.gov/oil-spills/itc-tank-fire . Attorneys from the Justice Department’s Environmental Enforcement Section and the Texas Office of the Attorney General are handling the case on behalf of the federal and state trustees. The proposed consent decree was lodged in the U.S. District Court for the Southern District of Texas and is subject to a 30-day public comment period and final court approval. The consent decree and information on how to submit a public comment is available on the Justice Department’s website: www.justice.gov/enrd/consent-decrees .