title: FORMER WAYNE COUNTY EMPLOYEE SENTENCED TO  32 MONTHS IN PRISON FOR DEFRAUDING COUNTY OUT OF  OVER $2.3 MILLION IN TAXPAYER FUNDS

component: USAO - Michigan, Eastern

body_text: DETROIT – A former Wayne County Roads Division employee was sentenced to 32 months in federal prison today for conspiring to defraud the county out of over $2.3 million, United States Attorney Dawn N. Ison announced. Ison was joined in the announcement by Wayne County Prosecutor Kym Worthy, Cheyvoryea Gibson, Special Agent-in-Charge of the Detroit Field Office of the Federal Bureau of Investigation, and Wayne County Sheriff Raphael Washington. Kevin Gunn, 64, of West Bloomfield, pleaded guilty in January 2023. Gunn and fellow Wayne County employee John L. Gibson of Detroit engaged in a scheme to use taxpayer dollars to make unauthorized purchases of generators and other power equipment from retailers in southeast Michigan which they sold for hundreds of thousands in personal profit. According to court documents, in March of 2021, the Wayne County Sheriff’s Department began an investigation into the potential misuse of taxpayer dollars. The Sheriff’s Department solicited the assistance of the FBI to investigate the criminal actions of Gunn, Gibson, other employees of the Wayne County Roads Division, and vendors to Wayne County. At the beginning of the investigation, the Wayne County Prosecutor’s Office secured a search warrant which broke open the case and led to the uncovering of the embezzlement scheme. Investigators with the Wayne County Prosecutor’s Office have played an ongoing and important role in the investigation. As part of the scheme to defraud, between January 2019 and August 2021, Gunn solicited Wayne County vendors to purchase generators and other power equipment the vendors were not authorized to provide under their contracts with the county. To conceal the scheme to defraud, Gunn instructed the vendors to list on their invoices only the items they were authorized to sell as part of their Wayne County contracts. Roads Division employees approved and paid each vendor’s invoice with taxpayer funds. After these fraudulent purchases were verified and approved by Roads Division employees, Gibson took possession of the equipment, paid Gunn for the items, and resold the generators and other items to members of the public. A review of invoices from Wayne County vendors revealed that between January 16, 2019, and August 3, 2021, Wayne County vendors bought 596 generators, and a variety of other power equipment including lawnmowers, chainsaws, and backpack blowers. The purchase of these items was not authorized under any vendor contract with Wayne County nor were the items ever provided to or used by Wayne County. The total value of equipment obtained as part of the scheme was over $2.3 million. United States Attorney Dawn Ison said, “Today’s sentence underscores our relentless demand for the highest standards of integrity and honesty in our public servants. The hardworking citizens of Wayne County deserve a government free of public officials who elevate their greed over the best interests of the public.” “Mr. Gunn could have served the citizens of Wayne County by being honest and forthright when performing his job. Instead, he chose to betray the public trust by stealing for his own personal gain. This case sends an important message that this conduct will never be accepted in Wayne County,” said Prosecutor Kym Worthy. "The alleged misconduct by Mr. Gunn was a betrayal of his fellow government employees and is not representative of the honest and hard work they perform on a daily basis," stated Cheyvoryea Gibson, Special Agent in Charge of the FBI in Michigan. "The defendant was entrusted with taxpayer money, which was intended to be used for a specific purpose, not his personal profit. I would like to commend Prosecutor Kym Worthy and the Wayne County investigators for their assistance during this case. The FBI will continue to work with our law enforcement partners to take strong action against individuals who seek to corrupt the integrity and fair administration of government programs." “The alleged actions of these individuals are nothing short of disgraceful,” said Sheriff Raphael Washington. “To brazenly steal from hardworking taxpayers and fraudulently line their own pockets while holding positions of public trust make these crimes all the more deplorable. Today’s sentencing is another example of our strong commitment to working together.” The investigation of this case was conducted by the Wayne County Prosecutor’s Office, the Wayne County Sheriff’s Department, and the Federal Bureau of Investigation. In addition, Wayne County Executive Evans and his administration have been assisting and cooperating with the investigation since they first learned of fraudulent activity within their organization. The case is being prosecuted by Assistant U.S. Attorney Eaton P. Brown.


title: Waseca Man Sentenced to Prison for Domestic Assault on Bois Forte Reservation

component: USAO - Minnesota

body_text: ST. PAUL, Minn. – A Waseca man has been sentenced to 27 months in prison followed by two years of supervised release for assaulting an enrolled member of the Bois Forte Indian Reservation, announced U.S. Attorney Andrew M. Luger. According to court documents, on August 9, 2021, David Alvarez, Jr., 33, assaulted his domestic partner at their residence on the Bois Forte Indian Reservation. At the time of the assault, Alvarez had two prior domestic assault convictions in Steele County. Alvarez pleaded guilty on July 25, 2023, to one count of domestic assault by a habitual offender. Alvarez was sentenced on October 31, 2023, in U.S. District Court by Judge Joan N. Ericksen. This case is the result of an investigation conducted by the FBI and the Bois Forte Police Department. Assistant U.S. Attorney Lindsey E. Middlecamp prosecuted the case.


title: Wall Street Director and Head Trader Charged for U.S. Treasuries Market Fraud Scheme

component: Criminal Division

body_text: A federal grand jury in Newark, New Jersey, returned an indictment that was unsealed today charging a Wall Street bond trader for a scheme to manipulate the U.S. Treasuries market. “Securities fraud and manipulation, as alleged here, victimize investors and degrade the integrity of our public securities markets,” said Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division. “The department will continue to protect our financial systems and investors by holding accountable those who violate our securities laws.” According to court documents, between approximately April 2018 and May 2019, Jeyakumar Nadarajah, 39, who was employed as a director at a bank in New York and head of the desk that was responsible for trading U.S. Treasuries, allegedly engaged in a scheme to mislead market participants in the secondary (or cash) market for U.S. Treasuries. Nadarajah is alleged to have engaged in a spoofing and layering scheme that involved placing orders that he did not intend to execute in order to create the appearance of false supply and demand, and to fraudulently induce other market participants to trade at prices, quantities, and times that they otherwise would not have traded. “There’s money to be made in the financial markets. And if there’s money to be made, it means that fraudsters are right there looking to take advantage of other market participants,” said Inspector in Charge Eric Shen of U.S. Postal Inspection Service (USPIS) Criminal Investigations Group. “Whether it’s a simple investment scam or a complex scheme like the one Mr. Nadarajah allegedly tried to pull off, Postal Inspectors are there to bring the scammers to justice.” Nadarajah is charged with two counts of wire fraud, seven counts of securities fraud, and seven counts of securities manipulation. If convicted, he faces a maximum penalty of 20 years in prison for each count of wire fraud, securities fraud, and securities manipulation. USPIS is investigating the case. Assistant Chief Scott Armstrong and Trial Attorney John J. Liolos of the Criminal Division’s Fraud Section 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. Indictment


title: Toppenish Man Sentenced to 8 Years in Prison for Receipt and Distribution of Child Pornography

component: USAO - Washington, Eastern

body_text: Yakima, Washington - Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington, announced that Robert Ray Root, age 54, of Toppenish, Washington has been sentenced after pleading guilty to Receipt and Distribution of Child Pornography. Chief United States District Judge Stanley A. Bastian imposed a sentence of 96 months imprisonment to be followed by 10 years of supervised release. Root was also ordered to pay a total of $21,000 in restitution to 7 individual victims of his conduct. According to court documents, Root had been downloading and sharing child pornography with others online for approximately 30 years when an undercover federal agent downloaded child pornography files from Root in October and November of 2021. In January 2022, agents executed a search warrant at Root’s home and seized several electronic devices, including a computer with thousands of child pornography images and more than 100 videos. In addition to admitting the decades’ long interest in and trading of child pornography, Root also admitted to investigators that he had sexually abused a young girl several years earlier. “Mr. Root spent decades victimizing the most vulnerable among us,” said U.S. Attorney Vanessa R. Waldref. “Protecting children from harm remains a priority of my office and is critical to building a safe and strong Eastern Washington community. I am deeply grateful for the work of Homeland Security Investigations, our local partners, and the Internet Crimes Against Children Task Force, for pursuing those who use technology to exploit our children.” “Sentences such as this highlight the importance our law enforcement partnerships bring to stopping the scourge of violence against children,” said Special Agent in Charge Robert Hammer, who oversees HSI operations in the Pacific Northwest. “In this case, our joint efforts stopped decades of exploitation and saved the childhoods of unknown future victims from the lifelong effects of trauma.” “Having a dedicated southeast regional ICAC task force, in our own backyard, with a great partnership including a Richland PD sergeant and detective at work to bring individuals like Mr. Root to justice, is truly an amazing feat,” said interim Chief for the Richland Police Department, David Neher. “Each member of the ICAC team serves a remarkably crucial role in putting away individuals who have infiltrated our community and taken the innocence of our youth. This sentencing is one we can be proud of, and in the end, it’s the ‘why’ behind what we do every day.” This case was investigated by Homeland Security Investigations with the assistance of the Yakima Police Department and the Southeast Regional ICAC Task Force, consisting of Richland and Kennewick Police Departments. This case was prosecuted by Ann T. Wick, Assistant United States Attorney for the Eastern District of Washington. 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: District Man Indicted for Premeditated Murder and Arson Following Multiple-Hour Barricade and Police Standoff in Southeast, D.C.

component: USAO - District of Columbia

body_text: WASHINGTON – Sherman Holley, 46, of Washington, D.C., was charged by indictment today for the January 2023 murder of James Brooks, Jr. and subsequent arson of a residence following a barricade and standoff, announced U.S. Attorney Matthew M. Graves and Chief Pamela Smith of the Metropolitan Police Department (MPD). The indictment charges Holley with first-degree premeditated murder while armed, arson, resisting arrest, and related offenses, all committed while Holley was on pretrial release. According to the government’s evidence, in the evening on January 15, 2023, Holley stabbed Brooks, Jr. multiple times in the torso while the men were walking together through an alleyway near the Southeast, Washington, D.C. home where Holley had been residing. Brooks, Jr. was pronounced dead at the scene. Holley fled the scene but returned to the residence the next day. When law enforcement responded, Holley barricaded himself inside the home and, after a multiple-hour standoff with police, set the residence on fire before surrendering. Holley was arrested for the murder on January 16, 2023, and has been detained pending trial since his arrest. At the time of these events, Holley was on release pending trial in another felony case in Washington, D.C. This case is being investigated by members of MPD’s Homicide Branch. The case is being prosecuted by Assistant U.S. Attorney Charles R. Jones. An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.


title: New Orleans Man Sentenced for Role  in Large Scale Cocaine Conspiracy

component: Drug Enforcement Administration (DEA)

body_text: NEW ORLEANS – On November 2, 2023, United States District Judge Jay C. Zainey sentenced HAKIM SHABAZZ , age 46, of New Orleans, for conspiring to violate the Controlled Substances Act, announced U.S. Attorney Duane A. Evans. Judge Zainey sentenced SHABAZZ to 60 months in the Bureau of Prisons to be followed by 5 years of supervised release. He also ordered SHABAZZ to pay a mandatory special assessment fee of $100. According to court records, the Calcasieu Parish Sheriff’s Office stopped an individual traveling from New Orleans to Houston on Interstate 10 and found $948,174 in cash in the vehicle, as well as several cell phones. Those phones contained text messages about drug trafficking, as well as ledgers. By analyzing text messages and phone records, agents determined that SHABAZZ , who operated an auto body shop, was receiving cocaine shipments, that were hidden in gas canisters, and distributing them throughout New Orleans. SHABAZZ admitted that the conspiracy involved between 50 and 150 kilograms of cocaine. This case was investigated by the Drug Enforcement Administration and the Calcasieu Parish Sheriff’s Office. Assistant United States Attorney David Haller of the Violent Crime Unit is in charge of the prosecution.


title: Corporate Executive Pleads Guilty to Misappropriating Combustion Turbine Trade Secrets

component: USAO - Virginia, Eastern

body_text: RICHMOND, Va. – A former Executive for a global industrial manufacturing conglomerate (Company 1), pleaded guilty today to conspiracy to convert trade secrets. According to court documents, John Gibson, 58, of Winter Park, Florida, was the former Executive Vice President of Power Generation and the Head of Sales for North America for Company 1. From May to June of 2019, he conspired with others to misappropriate combustion turbine-related trade secrets of two competitor companies, General Electric Company (GE) and Mitsubishi Heavy Industries, Ltd. (MHI), for the benefit of Company 1. Gibson’s co-conspirators were Theodore Fasca, 57, of Richmond, the former Director of Generation System Planning at Dominion Energy, Inc. (Dominion), a Virginia-based utility company, and Michael Hillen, 56, of Midlothian, a former Account Manager at Company 1. In March 2019, Dominion sought to build a “Peaker" combustion turbine power plant in Chesterfield with a projected cost of upwards of $500 million. Peaker plants are specifically designed to add electricity generation capacity to alleviate high grid load and improve electric grid resiliency. To build the plant, Dominion opened a competitive, closed bid process soliciting requests for proposals from qualified companies. Three companies bid for the work: GE, MHI, and Company 1. All companies signed non-disclosure agreements restricting the disclosure of confidential information provided to Dominion during the bid. After GE, MHI, and Company 1 submitted their closed bids to Dominion, Fasca and Hillen organized to repeatedly funnel GE and MHI confidential information, often using private email accounts, to Company 1. Gibson received the GE and MHI trade secrets knowing such information to be illegally obtained. Nevertheless, Gibson strategically disseminated it to other senior executives, to leaders within Company 1’s business intelligence unit, and to representatives of Company 1’s parent company in Germany. Gibson’s dissemination of the GE and MHI trade secrets was calculated to provide Company 1 with a competitive advantage in the bid for the Dominion Peaker Project, to the detriment of GE and MHI; improve Company 1’s business intelligence; and provide Company 1 with a competitive advantage in future bids against GE and MHI. After learning of GE’s and MHI’s bids for the Dominion Peaker Project, Gibson authorized and obtained approvals within Company 1, including from the CEO for Power Generation, to resubmit a lower bid for the Dominion Peaker Project and undercut GE’s bid. Company 1 won the bid for the Peaker Project with Dominion. The losses to victims reasonably foreseeable to Gibson were between $25 million and $65 million. The losses to victims reasonably foreseeable to Fasca and Hillen were between $9.5 million and $25 million. Both Fasca and Hillen have pleaded guilty to their roles in the conspiracy and are scheduled to be sentenced on March 1, 2024, and April 11, 2024, respectively. Both defendants face a maximum penalty of 5 years in prison. Gibson is scheduled to be sentenced on May 29, 2024. He faces a maximum penalty of 10 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors. Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Stanley M. Meador, Special Agent in Charge of the FBI’s Richmond Field Office; and Damon E. Wood, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service, made the announcement after U.S. District Judge David J. Novak accepted the plea. Assistant U.S. Attorneys Avi Panth and Kenneth R. Simon, Jr. are prosecuting the case. Former Assistant U.S. Attorney Michael R. Gill assisted the prosecution. A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case Nos. 3:23-cr-137, 3:23-cr-83, and 3:23-cr-120.


title: New Orleans Man Pleads Guilty to Federal Drug Trafficking and Firearms Charges

component: Federal Bureau of Investigation (FBI)

body_text: NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced that on November 2, 2023, JONATH WILLIAMSON , age 39, pled guilty to Counts 1 through 4 of an indictment that charged him with possession with intent to distribute methamphetamine and fentanyl, in violation of 21 U.S.C. §§ 841(a)(1) and 841(b)(1)(C) (Count 1); possession of a firearm in furtherance of a drug trafficking crime, in violation of 18 U.S.C. § 924(c) (Count 2); being a felon in possession of a firearm and ammunition, in violation of 18 U.S.C. §§ 922(g) and 924(a)(8) (Count 3); and, possession of a firearm with an obliterated serial number, in violation of 18 U.S.C. §§ 922(k) and 924(a)(1)(B )(Count 4). As to Count 1, WILLIAMSON faces a maximum term of imprisonment of twenty years, up to a $1,000,000 fine, and at least 3 years of supervised release. As to Count 2, WILLIAMSON faces a term of imprisonment between five years up to life imprisonment, which must run consecutive to any other sentence, up to a $250,000 fine, and up to 5 years of supervised release. As to Count 3, WILLIAMSON faces a term of imprisonment of up to fifteen years, a fine of up to $250,000, and up to three years of supervised release. As to Count 4, WILLIAMSON faces a term of imprisonment up to five years, a fine of up to $250,000, and up to three years of supervised release. As to each count, WILLIAMSON also faces payment of a mandatory special assessment fee of $100.00. WILLIAMSON is set for sentencing on February 27, 2024. According to court documents, on March 16, 2023, members of the New Orleans Police Department (NOPD) Special Response Team (SRT), NOPD Violent Crime Abatement Investigative Team (VCAIT), and Federal Bureau of Investigation (FBI) New Orleans Violent Crime Task Force (NOVCTF), executed a search warrant at a location on Camelia Street, in New Orleans. WILLIAMSON was present at the time of the warrant’s execution and was arrested based on outstanding NOPD warrants for theft. A search of WILLIAMSON revealed distributable amounts of methamphetamine and fentanyl in seven small bags in his front pocket. Additionally, WILLIAMSON was found in possession of over $2,900 in U.S currency, drug paraphernalia, and multiple keys and key fobs. Among the items in WILLIAMSON ’s possession was the key fob to a black Dodge Ram truck on the scene. Inside the vehicle, agents located two firearms: a stolen Smith & Wesson Model M&P M2.0, .40 caliber pistol and a Palmetto Armory Model PA-15, 5.56 caliber rifle, with an obliterated serial number. Also inside of the vehicle were quantities of methamphetamine, fentanyl, as well as drug paraphernalia consistent with distribution. 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 case was investigated by the Federal Bureau of Investigation and the New Orleans Police Department. Assistant United States Attorney Sarah Dawkins of the Violent Crime Unit is in charge of the prosecution.


title: Former KC Bank Manager Pleads Guilty to Facilitating Covid Fraud Scheme, Unemployment Benefits Fraud Scheme

component: USAO - Missouri, Western

body_text: JEFFERSON CITY, Mo. – A former bank branch manager in Kansas City, Mo., has pleaded guilty in federal court to accepting Kansas City Chiefs playoffs tickets and a new Chevrolet Tahoe in exchange for facilitating a $12.4 million Covid fraud scheme by a Jefferson City, Mo., business owner, as well as a separate fraud scheme to receive unemployment benefits. Anthony Omar Brockman, 48, who currently resides in Bennington, Nebraska, pleaded guilty before U.S. Magistrate Judge Willie J. Epps, Jr., on Tuesday, Nov. 7, to one count of wire fraud, one count of receiving gifts for procuring loans, and one count of money laundering. Brockman was the branch manager of the Truman Hospital location of US Bank in Kansas City, Mo., until the COVID-19 pandemic caused the bank branch to close. Brockman was reassigned to US Bank’s Paycheck Protection Program project from April 12 through July 19, 2020. Brockman was then returned to his role as on-site manager at the Truman Hospital bank branch until May 22, 2021. On March 27, 2020, The CARES Act established several new temporary programs and provided for the expansion of others to address the COVID-19 pandemic. Among these programs, the Paycheck Protection Program (PPP) authorized forgivable loans to small businesses to retain workers and maintain payroll, make mortgage interest payments, lease payments, and utility payments. By pleading guilty, Brockman admitted that he assisted and facilitated fraudulent PPP loan applications for Tod Ray Keilholz, the owner of TRK Construction, LLC, TRK Valpo, LLC, TL Builders, LLC, and Project Design, LLC, in Jefferson City. Keilholz has been charged in a separate indictment for his role in a more than $27.1 million bank fraud scheme that included more than $12.4 million in PPP loans for his businesses. According to that separate indictment, Keilholz received a total of $12,430,932 in PPP loans for his four businesses. In each of those loan applications, the indictment says, Keilholz failed to disclose his ownership in the other three businesses, and made materially false and fraudulent claims in the loan applications and supporting documentation. Keilholz allegedly inflated the income of those businesses and claimed payrolls for employees who did not exist or no longer worked for him. Brockman admitted that he received gifts in exchange for assisting Keilholz in procuring those loans. On Nov. 4, 2020, Keilholz used PPP loan proceeds to pay for a 2021 Chevrolet Tahoe that he gave to Brockman. Brockman admitted that the gift was intended to influence and reward him in connection with Keilholz’s applications for PPP loans and for the forgiveness of PPP loans. Brockman also admitted that he received tickets from Keilholz to the Jan. 24, 2021, AFC Championship Game between the Kansas City Chiefs and the Buffalo Bills. In pleading guilty to money laundering, Brockman admitted that he signed an affidavit gifting the 2021 Chevrolet Tahoe to Rich Girl, Rich Boy Prep, Inc., a charity of which his wife was the Chief Executive Officer. On May 25, 2021, Brockman transferred the title to the Tahoe to Rich Girl, Rich Boy Prep but continued to drive the Tahoe until he sold it in July 2022. In pleading guilty to wire fraud, Brockman admitted that he fraudulently received $11,040 in unemployment benefits from March 27, 2020, to Nov. 4, 2021, while he was employed by US Bank. Brockman falsely claimed he was unemployed when he applied for unemployment benefits via the internet, then repeated that false claim in 11 subsequent weekly online applications submitted to the state. Under the terms of his plea agreement, Brockman must pay the government a $84,582 money judgment, which represents the proceeds he obtained from the offenses. Under federal statutes, Brockman is subject to a sentence of up to 70 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office. This case is being prosecuted by Assistant U.S. Attorney Michael S. Oliver. It was investigated by the Board of Governors of the Federal Reserve System, Consumer Financial Protection Bureau-Office of Inspector General, the Small Business Administration-Office of Inspector General, the Treasury Inspector General for Tax Administration, the Federal Deposit Insurance Corporation (FDIC)-Office of Inspector General, the FBI, and IRS-Criminal Investigation. Pandemic Response Accountability Committee Task Force The Pandemic Response Accountability Committee Task Force was established to promote transparency and facilitate coordinated oversight of the federal government’s COVID-19 pandemic response. The PRAC’s 20 member Inspectors General identify major risks that cross program and agency boundaries to detect fraud, waste, abuse, and mismanagement in the more than $5 trillion in COVID-19 spending, including spending via the Paycheck Protection Program (PPP), and Economic Injury Disaster Loan (EIDL) program. This case was also supported by the PRAC’s Pandemic Analytics Center of Excellence, which applies the latest advances in analytic and forensic technologies to help OIGs and law enforcement pursue data-driven pandemic relief fraud investigations.


title: Two Former Federal Correctional Officers in Kentucky Sentenced for Assaulting Federal Inmates and Conspiring with a Supervisor to Cover It Up

component: Civil Rights Division

body_text: Two former Federal Bureau of Prisons (BOP) corrections officers, Samuel J. Patrick, 41, and Clinton L. Pauley, 42, were sentenced today to 36 months in prison followed by one year of supervised release and 40 months in prison followed by one year of supervised release, respectively, for their roles in the assaults of inmates held at U.S. Penitentiary Big Sandy. Patrick and Pauley previously pleaded guilty and testified against a third co-defendant at trial earlier this year. “As today’s convictions demonstrate, the Department of Justice will hold accountable BOP employees who abuse their position of authority and those in their custody,” said Deputy Attorney General Lisa O. Monaco. “We will not let up in our ongoing efforts to root out abuse and misconduct at the Bureau of Prisons, so that it can fulfill its mission to safely and humanely care for the adults in its custody while also preparing them to reenter society.” “Physical abuse and corruption by law enforcement officers is unacceptable no matter where it occurs, but these offenses stand out because they were committed by veteran federal officers in a Bureau of Prisons facility,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Defendant Patrick’s racially-charged and violent assault on one inmate was not only unlawful but morally reprehensible. The Justice Department takes constitutional abuses by federal officers extremely seriously, and we will continue to prosecute officers who violate federal civil rights laws.” “Patrick and Pauley engaged in egregious acts of violence towards inmates in their custody and care, and then tried to cover up their crimes,” said Inspector General Michael E. Horowitz of the Justice Department. “Today’s sentencing shows that assault of inmates will not be tolerated, and perpetrators will be held accountable.” “These defendants were charged with the custody and care of others; instead, they committed themselves to abusing those in their care, breaching the public trust, disserving the interests of true law enforcement and violating the civil rights of others,” said U.S. Attorney Carlton S. Shier IV for the Eastern District of Kentucky. “Holding law enforcement officials accountable for civil rights violations is an important first step to restoring the public trust in dedicated law enforcement and to protecting the civil rights of everyone.” According to court documents and evidence introduced at trial, Patrick and Pauley unlawfully used force to punish two inmates housed at Big Sandy. On March 30, 2021, the officers assaulted an inmate by spraying him in the face with pepper spray and kicking him in the head and upper body. Witnesses, including those who assaulted the inmates, testified that the inmate was not a threat and was compliant, and was assaulted for walking too slowly to his cell, rather than for any legitimate penological purpose. On April 29, 2021, the officers assaulted a second inmate by elbowing him in the head and punching him in the body. The victim of that assault had requested protection from other inmates. When the victim, who is white, revealed that he used to affiliate with Black gangs, Patrick referred to him as a “race traitor,” after which Patrick and Pauley both repeatedly struck him in the head and body. In addition to the preceding incidents, Pauley further admitted that he assaulted a third federal inmate during an unrelated encounter on March 26, 2021. On both March 30 and April 29, 2021, Patrick and Pauley’s co-defendant, Lieutenant Kevin C. Pearce, 39, was present and saw his lower-ranking officers using force out of anger. Afterwards, Pearce helped them try to cover up what happened by writing false reports, backing up their cover stories and pressuring subordinate officers to join the cover-ups. Pearce was found guilty at trial of writing false reports that covered up the assaults. His sentencing is scheduled for Dec. 5. The Justice Department’s Office of Inspector General and the FBI Louisville Field Office investigated the case. Assistant U.S. Attorney Zachary Dembo for the Eastern District of Kentucky and Trial Attorney Thomas Johnson of the Civil Rights Division’s Criminal Section prosecuted the case. BOP is committed to rooting out misconduct within its ranks and working with law enforcement partners to prosecute violations of federal law. The numerous BOP employees working diligently to ensure justice for the victims of misconduct are critical to the Department’s reform efforts.


title: Man Admits Two St. Louis County Carjackings, Robbery and Shooting of Store Clerk

body_text: ST. LOUIS – Two men have pleaded guilty to crimes that include two St. Louis County carjackings, the robbery of a convenience store and the shooting of the store clerk. James Furlow, 20, of St. Ann, Missouri, pleaded guilty Wednesday in U.S. District Court in St. Louis to two counts of carjacking and one count each of possession and brandishing of a firearm in furtherance of a crime of violence, robbery and discharge of a firearm in furtherance of a crime of violence. Monya Jones, 23, of St. Louis County, pleaded guilty July 19 to one robbery charge and one charge of possession, brandishing and discharge of a firearm in furtherance of a crime of violence. Both men admitted in their plea agreements that Furlow carjacked a 2017 Kia Sorrento SUV at gunpoint on Dec. 26, 2021. Later that day, Furlow tried to break into an ATM by shooting it as Jones waited in the stolen Kia. Both Furlow and Jones then robbed a Quick Mart in St. Louis County. Furlow admitted shooting the store clerk in the mouth. On Dec. 30, 2021, Furlow carjacked a 2021 Volkswagen Tiguan at gunpoint. He was later spotted by police and fled, first in the stolen SUV and later on foot. Police caught him in a basement and found a pouch nearby with a 9mm pistol, Furlow’s identification and the Tiguan’s keys. A dating app was used to set up both carjackings. Jones is scheduled to be sentenced November 27 and Furlow is scheduled to be sentenced Feb. 7, 2024. The possession of a firearm in furtherance of a crime of violence charge carries a mandatory minimum prison term of seven years, consecutive to any other charge, and the discharge count carries a mandatory minimum term of 10 years, also consecutive to all other counts. The St. Louis County Police Department and the FBI investigated the case. Assistant U.S. Attorney Cassandra Wiemken is prosecuting the case.


title: Former U.S. Postal worker sentenced for mail crime

component: USAO - Kansas

body_text: WICHITA, KAN. – A former U.S. Postal Service worker was sentenced to 24 months of probation for criminal conduct related to her employment. According to court documents, Tammy L. Frink, 50, of Beardsley, Kansas, pleaded guilty to one count of opening of mail by a postal employee. On September 21, 2022, Frink, while working at a post office in McDonald, Kansas, opened a sealed greeting card destined for an address in Missouri. Frink did not have authority or permission to open the piece of mail. Frink was ordered to serve 60 hours of community service and to pay a total restitution of $1,686, with the U.S. Postal Service receiving $1,075 and $611 to five individuals who were victims in other instances of mail theft linked to Frink. “This sentence represents our commitment to work with our law enforcement partners to maintain the integrity and trust in the U.S. Mail,” said Ryan Petry, Acting Special Agent in Charge, United States Postal Service Office of Inspector General, Central Area Field Office. “The majority of postal employees are hard-working public servants dedicated to moving mail to its proper destination. The USPS OIG, along with the U.S. Attorney’s Office, remains committed to safeguarding the U.S. Mail and ensuring the accountability and integrity of U.S. Postal Service employees.” The U.S. Postal Service – Office of the Inspector General investigated the case. Assistant U.S. Attorney Matt Treaster prosecuted the case. ###


title: Oregon Man Sentenced to 5 Years in Federal Prison for Interstate Stalking

body_text: BOISE – Joel Waters, 44, of Wallowa, Oregon, was sentenced to the maximum sentence of 60 months in federal prison for interstate stalking, U.S. Attorney Josh Hurwit announced today. Waters’ victim appeared in court and provided a victim impact statement. “We were all living in fear. We were all hostages in an invisible prison of Joel’s making,” the victim said. According to court records, between October 7, 2020, and December 24, 2020, Waters traveled between Oregon and Idaho to harass and intimidate the victim who was residing in Boise. Waters took dogs from the victim’s home and car, slashed the tires on the victim’s vehicle, set fire to the victim’s residence in Oregon on two occasions, placed a tracking device on the victim’s vehicle, set fire to the victim’s vehicle, and sent the victim numerous harassing emails. Some of Waters’ acts occurred in violation of a civil protection order that the victim had obtained against Waters in Oregon. “The defendant’s crimes in this case were horrific, dangerous, and deeply affected the courageous victim,” said U.S. Attorney Hurwit. “I am glad that justice has been served and honored to support the victim as she moves forward with her life.” “We’re thankful to our investigators as well as our federal partners for ensuring that Joel Waters is held accountable for his crimes,” said BPD Criminal Investigation Division Captain Matt Jones. “The victim in this case was terrorized by Waters for months and while we can’t undo the impact this had on their life, we hope this sentencing brings them some peace.” Chief U.S. District Judge David C. Nye also sentenced Waters to three years of supervised release and ordered him to pay a $2,000 fine. Judge Nye sentenced Waters to an additional 30 days in prison for contempt of court as a result of Waters’ behavior in the courtroom at sentencing. U.S. Attorney Josh Hurwit commended the cooperative efforts of the Federal Bureau of Investigation, the Boise Police Department, and the Oregon State Police, which led to charges. Assistant U.S. Attorney Kassandra McGrady prosecuted this case. ###


title: Red Lake Man Pleads Guilty to Domestic Assault as Habitual Offender

body_text: MINNEAPOLIS – A Red Lake man has pleaded guilty to violently assaulting another individual as a habitual offender, announced U.S. Attorney Andrew M. Luger. According to court documents, in the late evening of April 9, 2023, Shawn Rene Lussier, 55, physically assaulted another individual in a hotel room at the Seven Clans Casino on the Red Lake Indian Reservation by repeatedly punching and kicking the individual. The assault caused serious bodily injury to the victim, including a bloody lip, a one-inch laceration to the scalp that required stitches and left a scar, and other body bruises, and caused over $450.00 in property damage to the hotel room. According to court documents, Lussier has several Tribal Court convictions for Criminal Domestic Violence involving domestic assaults committed on separate occasions between May 2017 and December 2021. Lussier pleaded guilty yesterday in U.S. District Court before Judge Michael J. Davis to one count of domestic assault by a habitual offender. A sentencing hearing will be scheduled at a later date. This case is the result of an investigation conducted by the Red Lake Police Department and the FBI. Assistant U.S. Attorney Benjamin Bejar is prosecuting the case.


title: Red Lake Man Sentenced to More Than Five Years in Prison for Drunk-Driving Manslaughter

body_text: MINNEAPOLIS – A Red Lake man has been sentenced to 64 months in prison followed by three years of supervised release for involuntary manslaughter resulting from a drunk-driving crash that resulted in the death of his passenger, announced U.S. Attorney Andrew M. Luger. According to court documents, on the early morning of November 6, 2021, Gerald Wayne Johnson, 27, was driving his vehicle while intoxicated with a passenger in the front seat. Johnson was driving well over 90 miles per hour on a public road within the Red Lake Indian Reservation with a posted speed limit of 20 miles per hour. While speeding and driving recklessly, Johnson failed to handle a curve, jumped the curb, and crashed his vehicle into a tree, severely damaging the entire right side of his vehicle. Johnson’s passenger was ejected from the vehicle and died from her injuries caused by the crash. Investigators recovered several bottles of alcohol from inside and outside of Johnson’s totaled vehicle. Johnson’s blood draw after the crash revealed a blood alcohol content of .224. Johnson was sentenced yesterday in U.S. District Court before Judge Michael J. Davis to one count of involuntary manslaughter. This case is the result of an investigation conducted by Red Lake Police Department, FBI, and Minnesota State Patrol. Assistant U.S. Attorney Benjamin Bejar prosecuted the case.


title: Violent alien strangles federal agent in attempt to flee

component: USAO - Texas, Southern

body_text: McALLEN, Texas – A federal jury has convicted a 20-year-old El Salvadorian for assaulting a Border Patrol (BP) agent, announced U.S. Attorney Alamdar S. Hamdani. The jury convicted Jose Milton Mendoza-Felipe following a two-day trial. On June 28, law enforcement approached a group of undocumented non-citizens near the Rio Grande River. Mendoza-Felipe was one of those individuals and tried to flee the area. A BP agent caught up to him and attempted to place him in custody. However, Mendoza-Felipe resisted and became combative. The jury heard testimony that Mendoza-Felipe attempted to strangle the agent by squeezing his windpipe during the struggle. When the agent was able to escape from the chokehold, Mendoza-Felipe again tried to grab him by the throat, but struck the agent’s jaw instead, causing him to bleed. Mendoza-Felipe only complied once another BP agent arrived. At trial, the jury saw the scratch marks left on the agent’s neck and heard how he had to take pain medication for his injuries. Mendoza-Felipe testified in the trial, claiming that he did not choke the agent and that he did not realize he was law enforcement. He told the jury he was just defending himself. The jury did not believe defense claims and found him guilty as charged. U.S. District Judge Drew B. Tipton presided over trial and set sentencing for Jan. 29, 2024. At that time, Mendoza-Felipe faces up to eight years in prison and a possible $250,000 fine. Mendoza-Felipe has been and will remain in custody pending sentencing The FBI conducted the investigation with the assistance of Border Patrol. Assistant U.S. Attorneys Lee Fry and Devin V. Walker are prosecuting the case.


title: Wisconsin Gymnastics Coach Sentenced to 25 Years for Producing Child Sexual Abuse Images

body_text: ST. PAUL, Minn. – A Superior, Wisconsin, man has been sentenced to 25 years in prison followed by a lifetime of supervised release for producing images depicting his sexual abuse of a minor, announced U.S. Attorney Andrew M. Luger. According to court documents, George Francis Deppa, 50, sexually abused a 15-year-old minor and produced visual depictions of the sexual abuse. Deppa was federally charged in May of 2022 and entered a guilty plea on June 28, 2023, to one count of production of child pornography. Pursuant to the federal plea agreement, Deppa also agreed to enter guilty pleas in additional state felony charges involving sexual assaults against at least five other minors in St. Louis County and Douglas County. Deppa was sentenced today in U.S. District Court before Judge Kate M. Menendez. Aggravating factors noted during his federal sentencing included a pattern of isolating and, in some instances, drugging his victims. This case is the result of an investigation conducted by the FBI and the Duluth Police Department, with assistance from the St. Louis County Attorney’s Office and the Douglas County (Wisconsin) Attorney’s Office. Based on the evidence obtained in this investigation, authorities believe there may be additional victims of the alleged conduct. Anyone with information about this matter is encouraged to call the FBI Minneapolis Division at (218) 722-3341. This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children in crimes involving child pornography, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov . Assistant U.S. Attorney Lindsey E. Middlecamp prosecuted the case.


title: Great Falls College student loan fraud scheme sends Cascade woman to prison for a year and a half

component: USAO - Montana

body_text: GREAT FALLS — A Cascade woman convicted of illegally receiving approximately $126,000 in federal student aid through a scheme in which she enrolled others in courses at Great Falls College, Montana State University, was sentenced today to 18 months in prison, to be followed by three years of supervised release, U.S. Attorney Jesse Laslovich said. Ricci Lea Castellanos, 35, pleaded guilty in March to conspiracy to commit wire fraud and to aggravated identity theft. Chief U.S. District Judge Brian M. Morris presided. The court ordered $68,175 restitution. The government alleged in court documents that between January 2016 and December 2019, Castellanos enrolled unwitting family members and others in online classes at Great Falls College, Montana State University. When doing so, Castellanos, and others, applied for and received federal student aid totaling approximately $126,219, none of which was allowed. In addition, Castellanos and others fraudulently submitted American Indian Tuition Waivers and used false tribal enrollment forms to receive student living expense refunds. Castellanos also forged the signature of a person, Jane Doe 1, to apply for enrollment with Great Falls College and received $2,378 in financial aid into her bank account, which she withdrew in cash. Jane Doe 1 had reported her identity stolen to the Great Falls Police Department. Assistant U.S. Attorneys Ryan G. Weldon and Benjamin D. Hargrove prosecuted the case, which was investigated by the U.S. Department of Education, Office of Inspector General. XXX


title: Enid Woman Pleads Guilty to Fraud and Tax Charges

component: USAO - Oklahoma, Western

body_text: Defendant Allegedly Stole or Attempted to Steal More Than $400,000 from Nonprofits’ Accounts OKLAHOMA CITY – Yesterday, DEBORAH WILCZEK , 45, of Enid, pleaded guilty to making, uttering, and possessing a forged security, and willfully filing a false federal income tax return, announced U.S. Attorney Robert J. Troester. On May 16, 2023, a federal grand jury returned a 17-count Superseding Indictment against Wilczek, charging her with devising and carrying out a scheme to defraud the YWCA in Enid (YWCA) and the Cimarron Montessori Children’s House (Cimarron). According to the Superseding Indictment, beginning in November 2012 and continuing through April 2019, Wilczek served in leadership positions for the YWCA. She also served on Cimarron’s School Board in various capacities from August 2016 to April 2021. The Superseding Indictment alleges Wilczek routinely accessed both the YWCA and Cimarron’s business bank accounts and made several unauthorized transfers from those accounts to pay for her personal expenses. In total, the Superseding Indictment alleges Wilczek obtained and attempted to obtain approximately $414,951.35 from the two nonprofits, with $139,308.35 coming from YWCA and $275,643 coming from Cimarron. It is also alleged Wilczek forged the signature of two principals of Cimarron to draw money from Cimarron’s business account and deposit funds into bank accounts she controlled. The Superseding Indictment further alleges Wilczek willfully filed false federal income tax returns for the years 2016 through 2020, where she listed her total income substantially below the income actually received as a result of the fraud described above. On November 7, 2023, Wilczek pleaded guilty to Counts 10 and 17 of the Superseding Indictment, which charged her with uttering and possessing a forged security, and with willfully filing a false federal income tax return. As part of her plea, Wilczek admitted to possessing a check with a forged signature written on a bank account belonging to Cimarron and filing an income tax return for the 2020 tax year that materially understated her income. At sentencing, Wilczek faces up to 10 years in federal prison on Count 10, up to three years in federal prison on Count 17, and fines totaling up to $500,000. In her plea agreement, Wilczek additionally agreed to pay restitution to victims of her relevant conduct, which will be determined by the court at sentencing. This case is the result of an investigation by the FBI Oklahoma City Field Office, IRS Criminal Investigation, and the Enid Police Department. Assistant U.S. Attorneys William E. Farrior and Danielle London are prosecuting the case. Reference is made to public filings for further information.


title: Florida Man Who Failed to Appear in Idaho for Sentencing in 2019 and Fled to Cuba Now Sentenced to Federal Prison on Fraud Charges

component: U.S. Attorneys (USAO)

body_text: BOISE – Adrian Acosta Alonso, 34, of Florida, was sentenced to 24 months in federal prison for access device fraud charges and failing to appear in court, announced U.S. Attorney Josh Hurwit. Chief U.S. District Judge David C. Nye imposed the sentence and also ordered Alonso to serve three years of supervised release following his prison sentence. According to court records and statements made in court, in December 2018, Alonso and his codefendants attempted to pry open a gas pump with a crowbar at a gas station in Meridian. They intended to place a device inside the gas pump capable of recording and storing customers’ financial transaction card information, also known as a skimming device. Alonso and his codefendants fled the scene after an employee called the police. Alonso and his codefendants were arrested in a nearby van and Meridian police officers located access device-making equipment in the van, including skimming devices, chip readers, a financial transaction card reader/encoder, and security seals for gas pumps. In addition, officers located 55 blank financial transaction cards and 15 counterfeit financial transaction cards embossed in the names of Alonso and his codefendants. On a laptop, officers additionally located spreadsheets containing 423 financial transaction card numbers along with associated financial transaction card holders’ names, personal identification numbers, and expiration dates. In February 2019, Alonso and his codefendants were federally charged in the District of Idaho with access device fraud charges, and Alonso was released from custody with the condition to appear in court pursuant to the Bail Reform Act. Thereafter, Alonso pleaded guilty in August 2019, and the Court set a sentencing hearing for November 2019. On that date, however, Alonso knowingly and intentionally failed to appear for the sentencing hearing and instead, fled to Cuba where Alonso is also a citizen. Thereafter, in July 2022, Alonso was separately charged with failing to appear at his sentencing. Alonso was arrested on both cases upon returning to the United States in December 2022. Judge Nye sentenced Alonso to 12 months in federal prison for access device charges and another 12 months in prison for failing to appear at his sentencing in 2019. Judge Nye previously sentenced co-defendant Yatsel Aleman Santana, 34, of Florida, in February 2023 to 30 months in federal prison after Santana also fled to Cuba to avoid the same access device fraud charges. U.S. Attorney Hurwit commended the work of the United States Secret Service and the Meridian Police Department, which led to the charges. Assistant U.S. Attorney Sean Mazorol prosecuted the case. ###


title: Rochester man going to prison for  14 years for receipt of child pornography

component: USAO - New York, Western

body_text: BUFFALO, N.Y.-U.S. Attorney Trini E. Ross announced today that Nathan Follett, 37, of Rochester, NY, who was convicted of receipt of child pornography, was sentenced to serve 168 months in prison by Chief U.S. District Judge Elizabeth A. Wolford Assistant U.S. Attorney Meghan K. McGuire, who handled the case, stated that between February 2016, and December 16, 2021, Follett used Instagram, Kik, and Snapchat to engage in sexually explicit communications with 11 minor victims, knowing each victim was under the age of 18. During these conversations, Follett coerced the minor victims to produce images and videos of themselves engaged in sexually explicit conduct and send those images and videos to him via Instagram, Kik, and Snapchat. The sentencing is the result of an investigation by the Monroe County Sheriff’s Office, under the direction of Sheriff Todd Baxter, the Federal Bureau of Investigation Child Exploitation Human Trafficking Task Force, under the direction of Special Agent-in-Charge Matthew Miraglia, and the New York State Police, under the direction of Major Miklos Szoczei, II. # # # #


title: Federal grand jury indicts Jamestown felon  on gun and methamphetamine charges

body_text: BUFFALO, N.Y. — U.S. Attorney Trini E. Ross announced today that a federal grand jury has returned an indictment charging Steven Glover, Sr., 39, of Jamestown, NY, with being a felon in possession of a firearm and possession of methamphetamine. The charges carry a maximum penalty of 15 years in prison and a $250,000 fine. Assistant U.S. Attorney Joshua A. Violanti, who is handling the case stated that according to the indictment and a previously filed complaint, on the morning of December 14, 2022, a Jamestown Police officer observed Glover in a vehicle. The officer knew that Glover was suspended from driving. The officer stopped the vehicle and made contact with Glover, who immediately advised that he had a pipe on his person. Glover then handed over a glass pipe that contained what appeared to be methamphetamine residue inside. Glover was detained and a search of the vehicle recovered a digital scale with white crystal residue and a pistol. Glover was charged in New York State Court and released on bail. On February 22, 2023, a Jamestown Police officer observed Glover in the passenger seat of another vehicle and was aware of his outstanding charges. The officer stopped the vehicle and observed drug paraphernalia a plastic bag containing suspected methamphetamine. Glover was again taken into custody. In 2019, Glover was convicted of a felony in Chautauqua County Court and is legally prohibited from possessing a firearm. Glover was arraigned before U.S. Magistrate Judge Jeremiah J. McCarthy and detained. This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF . The indictment is the result of an investigation by the Jamestown Police Department, under the direction of Chief Timothy Jackson, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. DeVito, New York Field Division, and the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Frank A. Tarentino III, New York Field Division. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty. # # # #


title: Registered sex offender charged with new child pornography charges

body_text: BUFFALO, N.Y.-U.S. Attorney Trini E. Ross announced today that Alexander Grupp, 31, of Lancaster, NY, was charged by criminal complaint with attempted enticement and attempted production of child pornography. The charges carry a mandatory minimum penalty of 10 years in prison and a maximum of life. Assistant U.S. Attorney Caitlin M. Higgins, who is handling the case, stated that according to the complaint, in November 2022, the FBI received a phone call from Erie County Probation requesting assistance regarding Grupp, a probationer and New York State level 2 sex offender. A probation officer advised that she seized a laptop from Grupp after he admitted to her that he was enticing minors to produce child pornography through the mobile application Discord. Investigators searched the laptop and recovered conversations sexual in nature and sexually explicit images exchanged between Grupp and a 15-year-old girl (Victim) on Discord. Grupp made an initial appearance before U.S. Magistrate Judge Michael J. Roemer and was detained. The complaint is the result of an investigation by the Federal Bureau of Investigation Child Exploitation and Human Trafficking Task Force, under the direction of Special Agent-in-Charge Matthew Miraglia, the Town of Tonawanda Police Department, under the direction of Chief James Stauffiger, and the Erie County Probation Department, under the direction of Commissioner Richard B. Robillard. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty. # # # #


title: Puerto Rico Man Found Guilty of Drug Trafficking and Murder

body_text: WASHINGTON – A jury today found Jann Jousten Aponte-Rivera, 27, of San Juan, Puerto Rico, guilty of participating in the drug-related murder of Shantay Myisha Butler, 42, of Frederick, MD. Specifically, Aponte-Rivers was found guilty of conspiracy to distribute five kilograms or more of cocaine, one count of continuing criminal enterprise – causing the intentional death of Shantay Butler – and one count of causing the death of Shantay Butler through the use of a firearm during and in relation to a drug-trafficking offense. In announcing the verdict, U.S. Attorney Graves and the FBI’s Special Agent in Charge Jacobs commended investigators at the FBI, the U.S. Postal Inspector Service (USPIS), the Montgomery Co. Police Department (MCPD), Frederick City Police Department, San Juan USPIS OIG, the Puerto Rico Police Department (Bayamon Homicide Division), and the Institute of Forensic Sciences of Puerto Rico. According to the government’s evidence, Aponte-Rivera was part of a large-scale drug trafficking organization based in San Juan that was sending kilogram quantities of cocaine to the mainland United States, including the Washington D.C. region, via the U.S. Postal Service. Law enforcement identified over 50 parcels of cocaine shipped by the organization from Puerto Rico to the Washington, D.C. area with a wholesale street value of at least $2 million. Once the drugs arrived in the metropolitan area, a local drug trafficking organization distributed the cocaine to mainland dealers. Additionally, the Puerto Rico organization’s members allegedly traveled from San Juan to the Washington, D.C. area to collect drug proceeds, and then surreptitiously traveled on commercial airliners to return the proceeds to the conspiracy’s leader, Rey “Gordo” Rivera Ruiz, 40, and others. According to the government’s evidence, during the life of the drug conspiracy Rivera Ruiz and his associates shipped between 50 kilograms and 150 kilograms of cocaine to the local drug trafficking organization. The charged drug trafficking conspiracy began around October 2019 and ended in April 2021, when Aponte-Rivera was indicted with co-defendants Rivera Ruiz, Nomar Medina Diaz and Michael Gabriel Rivera Hernandez . The four men have remained in custody since their April 2021 arrests. The leader of the Washington, D.C.-area drug trafficking organization owed several thousand dollars to the Puerto Rico drug trafficking organization and had been ordered to pay for several kilograms of cocaine which did not arrive in the Washington, D.C. area. On Oct. 14, 2020, Aponte-Rivera and Rivera Hernandez lured the leader of the Washington, D.C.-area drug trafficking organization and Shantay Butler to a desolate part of Toa Baja in Puerto Rico. When the leader of the Washington, D.C.-area drug trafficking organization arrived with Ms. Butler in a car, Aponte-Rivera and Rivera Hernandez ambushed them. They both pulled out firearms and opened fire on the vehicle. The leader of the Washington, D.C.-area drug trafficking organization was shot five times, remained in a coma for several weeks, but survived. His girlfriend, Ms. Butler, died of her wounds. The FBI arrested Aponte-Rivera on Apr. 15, 2021, in Allentown, Pa. Rivera Ruiz pleaded guilty on May 26, 2022, before U.S. District Chief Judge James E. Boasberg, to conspiracy to distribute and possess with intent to distribute five kilograms or more of cocaine. Judge Boasberg scheduled sentencing for Dec. 20, 2023. In total, 10 individuals have been convicted for their roles in this drug trafficking conspiracy, and murder. Aponte-Rivera remains held pending his sentencing by Judge Boasberg, who scheduled sentencing for February 8, 2024. The charges require a mandatory 30-year prison term with a potential sentence of life imprisonment. In announcing the verdict, U.S. Attorney Graves and the FBI’s Special Agent in Charge Jacobs commended investigators at the FBI, the U.S. Postal Inspector Service (USPIS), the Montgomery Co. Police Department (MCPD), Frederick City Police Department, San Juan USPIS OIG and the Puerto Rico Police Department Homicide. The case was prosecuted by Assistant U.S. Attorneys Anthony Scarpelli and David T. Henek, of the Violence Reduction and Trafficking Offenses section of the U.S. Attorney’s Office. Former Assistant U.S. Attorneys Rachel Fletcher and Dineen Baker assisted in the investigation and charging of this case.


title: Jamestown man indicted by federal grand jury on multiple drug and firearms charges

body_text: BUFFALO, N.Y. - U.S. Attorney Trini E. Ross announced today that a federal grand jury has returned a five-count indictment charging Zaid Mendoza a/k/a Diamond, 45, of Jamestown, NY, with possession with intent to distribute fentanyl and methamphetamine, possession of a firearm in furtherance of drug trafficking crimes and being a felon in possession of a firearm. The charges carry a mandatory minimum penalty of five years in prison, a maximum of life and a $1,000,000 fine. Assistant U.S. Attorney Joshua A. Violanti, who is handling the case, stated that according to the indictment and a previously filed complaint, in October and December 2022, Mendoza possessed fentanyl and methamphetamine with the intent to distribute it in the Jamestown area. On December 7, 2022, investigators executed a search warrant at Mendoza’s residence and recovered $1,800 cash, approximately 36 grams of fentanyl and a quantity of methamphetamine, a 9mm semi-automatic pistol, drug packaging paraphernalia, and cell phones. Mendoza, who was taken into custody at the scene, had another 36 grams of fentanyl on his person. In October 2014, Mendoza was convicted of a felony in Chautauqua County Court and is legally prohibited from possessing a firearm. Mendoza was arraigned before U.S. Magistrate Judge Michael J. Roemer and is detained. This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF . The indictment is the result of an investigation by the Jamestown Police Department Metro Drug Task Force, under the direction of Chief Timothy Jackson, the Chautauqua County Sheriff’s Office County Drug Task Force, under the direction of Sheriff James Quattrone, the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Matthew Miraglia, Homeland Security Investigations, under the direction of Special Agent-in-Charge Matthew Scarpino, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. DeVito, New York Field Division. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty. # # # #


title: Rochester woman going to prison for more than 10 years for making internet threats and firearms possession

body_text: ROCHESTER, N.Y. - U.S. Attorney Trini E. Ross announced today that Gabygayl Cruz, 22, of Rochester, NY, who was convicted of transmitting a threat in interstate commerce and possessing and discharging a firearm in furtherance of a crime of violence, was sentenced to serve 130 months in prison by U.S. District Judge Charles J. Siragusa. Assistant U.S. Attorney Charles Moynihan, who handled the case, stated that on the evening of June 7, 2021, on Facebook Live, Cruz threatened to shoot a man, stating at the end of the video, “Tune-in in five minutes.” Later that night, Cruz and another person went to an area of Rochester where Cruz knew the person she threatened spent time. In a second Facebook Live video, a black screen appeared but 11 gunshots could be heard followed by the sounds of Cruz running and giggling. In a third video, Cruz recounted the earlier shooting, imitated shooting a gun and continued to issue threats to others. On July 1, 2021, Cruz again used Facebook Live to threaten to shoot a woman, displaying a .45 caliber firearm, while issuing the threat. Cruz then went to a Columbia Avenue address in Rochester to confront the woman, but she was not there. While leaving the area, Cruz struck a parked car and fired a shot in the air. Cruz was arrested the next day when she was stopped driving a car in which officers found a loaded .45 caliber semiautomatic pistol, which was the same firearm she displayed in one of the videos. The sentencing is the result of an investigation by the Rochester Police Department, under the direction of Chief David Smith and the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent-in-Charge John B. DeVito. # # # #


title: Prince George’s County Man Sentenced to 25 Years in Federal Prison for Coercing Minor Victims to Produce Child Pornography

component: USAO - Maryland

body_text: Baltimore , Maryland - U.S. District Judge Paula Xinis sentenced Adrian Nathaniel Haynes, age 24, of Oxon Hill, Maryland, to 25 years in federal prison, followed by 25 years supervised release, for production of child pornography. Judge Xinis also ordered that, upon his release from prison, Haynes must register as a sex offender in the places where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA). The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office; and Chief Malik Aziz of the Prince George’s County Police Department. According to court documents and information presented at the sentencing hearing, on April 1, 2019, Victim 1 contacted the National Center for Missing and Exploited Children (“NCMEC”) and reported that an Instagram user with the username “darealrico_”, later identified as Haynes, had demanded that Victim 1 send images and videos of Victim 1 engaged in sexually explicit conduct to him over the internet via direct share to darealrico_. Victim 1 also disclosed that darealrico_ threatened Victim 1 that if Victim 1 did not continue to produce images of Victim 1 engaged in sexually explicit conduct, darealrico_ would expose Victim 1 by publishing the previously produced images and videos online. Special Agents with the FBI determined that the darealrico_ Instagram account was registered on November 6, 2018, with a phone number matching a phone number that Haynes had provided to law enforcement previously. Law enforcement also determined that many of the communications from this account during the relevant period were coming from Haynes’ residence in Prince George’s County, Maryland. A search warrant was obtained for the contents of the Instagram account associated with darealrico_. Special Agents with the FBI discovered communications from Haynes to Victim 1 on November 12, 2018, and multiple other dates, in which Haynes directs Victim 1 to produce videos of Victim 1 engaged in sexually explicit conduct and send the produced child sexual abuse material to Haynes. On November 12, 2018, while communicating via the derealrico_ account, Haynes falsely denied to Victim 1 that his name was Adrian, falsely told Victim 1 that he was 15 years old, and falsely identified himself to Victim 1 by using a fictitious name, all in an effort to convince Victim 1 to continue producing child pornography and thwart Victim 1’s efforts to identify him. Law enforcement’s review of Haynes’s Instagram account revealed communications with 16 other Instagram users who self-identified as minors and sent child sexual abuse material to Haynes pursuant to his request. Haynes used a similar method for each, asking the user how old they were, confirming that they were a minor, then coercing the user into producing child sexual abuse material in the manner requested by Haynes. 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 Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc . For more information about Internet safety education, please visit www.justice.gov/psc and click on the “Resources” tab on the left of the page. United States Attorney Erek L. Barron commended the FBI and the Prince George’s County Police Department for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Timothy Hagan, who prosecuted the federal case. For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md/project-safe-childhood and https://www.justice.gov/usao-md/community-outreach . # # #


title: Northwest Safe Trails Task Force awarded DOJ grant to enhance prosecutions in tribal communities

component: USAO - Washington, Western

body_text: Seattle – The Northwest Safe Trails Task Force, made up of the FBI and five western Washington Tribes, will receive $888,748 from DOJ’s Bureau of Justice Assistance to enhance efforts to battle violent crime and drug crime in tribal communities, announced Acting U.S. Attorney Tessa M. Gorman. The funding, delivered over five years, will pay for an additional federal prosecutor who can review and file cases in either tribal or federal court. “I congratulate the Swinomish Indian Tribal Community for their successful application for this grant funding. Working to make our tribal communities safer is a key priority for the Department of Justice,” said Acting U.S. Attorney Gorman. “Having an additional prosecutor working with the Swinomish, Tulalip, Lummi, Nooksack, and Upper Skagit Tribes will improve our ability to assist the Tribes with the prosecutions they identify as key to community safety.” Swinomish Senator Brian Porter, as Chairman of the Swinomish Law and Order Committee, championed this grant application and sees this grant as key to improving safety within tribal communities. “Partnering with our federal and tribal law enforcement is essential to combating violent and drug related crimes on our tribal lands,” said Senator Porter. “The FBI Pacific Northwest Safe-Trails Task Force has been an ally to Swinomish and our neighboring Tribes as we collaborate to prosecute large drug offenses that have a high community impact. The Safe Trails Special Assistant United States Attorney is a key component in our partnership as they will be able to work directly with our federal and tribal law enforcement to bring cases in federal court. We applaud the efforts and partnership with the United States Attorney’s Office for the Western District of Washington,” said Senator Porter. The FBI investigates major crimes such as homicide, sexual abuse, major drug trafficking, and felony assaults on tribal land. This will be the second term of a dedicated prosecutor for the Safe Trails Task Force. During the last two-year grant period there were more than eight different federal cases prosecuted involving armed drug dealing in and around tribal communities. “It takes resources to successfully perform our work.” said Richard A. Collodi, Special Agent in Charge of the FBI’s Seattle field office. “Reducing and investigating violent crime on our state’s reservations is a goal for the FBI and our partners. Securing of this funding and enabling additional personnel to support investigations and prosecutions substantially advances that aim.” The Special Assistant United States Attorney who is hired to work with the Safe Trails Task Force will join three other tribal liaisons working in the U.S. Attorney’s Office Western District of Washington. The current liaisons are Assistant United States Attorneys J. Tate London, Jocelyn M. Cooney, and Michael Harder.


title: Five Indicted in Scheme to Fraudulently Obtain Bank and Small Business Administration Loans in Property Flipping Scheme

body_text: Baltimore , Maryland – A federal grand jury has returned an indictment charging five individuals for a fraud scheme intended to obtain over $35 million from financial institutions by providing false documentation in support of SBA loan applications for the purchase of hotels. Defendant Mehul Ramesh Khatiwala, a/k/a “Mike Khatiwala,” age 41, of Voorhees, New Jersey, also faces a continuing financial crimes enterprise charge, also known as the financial crime kingpin statute—the first time this statute has been charged in Maryland. The indictment was returned on November 1, 2023. In addition to Khatiwala, the following defendants are charged in the indictment with bank fraud, making false statements to financial institutions, and money laundering: Rajendra G. Parikh, age 63, of Monroe, New Jersey; Jennifer H. Watkins, age 47, of Marlton New Jersey; Rebecca Marie Cohn, a/k/a Rebecca Marie Stanton, age 36, of Fallston, Maryland; and Rajnikant I. Patel, age 59, of North Brunswick, New Jersey. Rajnikant Patel and Jennifer Watkins will have initial appearances on November 9, 2023, at 11:00 a.m. and 11:30 a.m., respectively, in U.S. District Court in Baltimore before U.S. Magistrate Judge A. David Copperthite. Cohn had her initial appearance on November 6, 2023. Khatiwala and Parikh had initial appearances in the U.S. District Court in New Jersey on November 3, 2023, and were ordered to be detained. The indictment was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Robert Manchak, Federal Housing Finance Agency Office of Inspector General (“FHFA-OIG”); and Special Agent in Charge Jeffrey D. Pittano, Mid-Atlantic Region, Federal Deposit Insurance Corporation Office of Inspector General (“FDIC-OIG”). According to the 31-count indictment, Khatiwala was the owner and managing member of Delaware Hotel Group LLC (“DHG”), and an operator of GMK Consulting LLC (“GMK”) and KPG Hotel Mgmt. LLC (“KPG”), which were hotel management and loan brokerage companies located in Mount Laurel, New Jersey. Jennifer Watkins was a project coordinator for DHG and managing member of Forza Consulting LLC (“Forza”), a hotel consulting and loan brokerage company located in Marlton, New Jersey. Rajendra Parkih was an owner of KPG and Rebecca Cohn was a settlement and title processor for Residential Title & Escrow Company (“Residential Title”), a real estate title company located in Owings Mills, Maryland, that offered escrow and loan settlement services. Rajnikant Patel worked as the manager of a convenience store owned by Parikh and Parikh’s brother. The indictment alleges that from August 2018 until February 2020 the defendants conspired to obtain loan proceeds for the defendants and others to buy and sell hotels in a hotel flipping scheme by making material misrepresentations and omissions to financial institutions during the loan application process regarding the identity of the sellers, the familial relationships between the parties, and the nature and amount of the equity injected by the borrowers, under the SBA’s Section 7(a) Program. The SBA’s Section 7(a) Program guaranteed and insured 75 percent to 90 percent of qualified loans made and administered by participating lending institutions and required that the small business owner/borrower invest a certain amount of their own money into the business to qualify for the loan. Specifically, the indictment alleges that Khatiwala, Parikh, and Watkins created shell companies using Patel and a co-conspirator as the straw owners of the companies, then had the straw owners sign purchase contracts, operating agreements, and related documents to buy hotel properties in the names of the shell companies created by Khatiwala, Parikh, and Watkins, while at the same time soliciting investors, including family members, and creating other companies to serve as buying entities (the “Buyers”) so they could quickly resell the hotels at a much higher price. As detailed in the indictment, Khatiwala, Parikh, Watkins, and Cohn collected, compiled, and submitted documentation needed by financial institutions to determine whether the Buyers qualified for the SBA loans, including records proving that the Buyers provided sufficient cash upfront to satisfy SBA’s equity injection requirements for Section 7(a) funding, such as checks, bank statements, and wire transfer records. Cohn maintained the equity injection funds in designated Residential Title escrow accounts pending the loan settlements and kept ledgers to track the use of those escrow funds. The indictment alleges that Khatiwala, Parikh, Watkins and Cohn: fraudulently diverted some of the Buyers’ equity injections to make down payments on hotels that were under contract to shell companies controlled by Khatiwala and Parikh; submitted the same wire transfer records and gift letters as support for equity injections that had been already been used to satisfy the buyer’s equity injection obligations for other SBA loan applications; and fraudulently submitted falsified bank statements and wire transfers to satisfy the equity injections. The indictment also alleges that the defendants engaged in roundtrip transactions, whereby they falsely represented to financial institutions that over $1.5 million on deposit in a Residential Title escrow account would be used to satisfy the Buyer’s equity injection obligations, when, the indictment alleges, the funds were temporarily withdrawn from that account prior to the loan closings and redeposited back into the same escrow account subsequent to the loan closings. Further, the indictment alleges that Khatiwala, Parikh, Watkins, and Cohn falsely represented to financial institutions that the buying entities had purchased the hotels from the shell companies when, in fact, the shell companies had not yet owned the properties. Khatiwala, Parikh, Watkins, and Cohn diverted loan proceeds intended for the buyers to purchase hotels from the shell companies so that the shell companies could first purchase the property and then flip it to the buyer. If convicted, Khatiwala faces a mandatory minimum sentence of 10 years and up to life in prison for a continuing financial crime enterprise. All of the defendants face a maximum of 30 years in federal prison for the conspiracy to commit bank fraud and for each count of bank fraud; a maximum of 5 years in federal prison for a conspiracy to make a false statement to a financial institution. Khatiwala, Parikh, Watkins, and Cohn also face a maximum of 30 years in federal prison for each count of making a false statement a financial institution and a maximum of 10 years in federal prison for conspiracy to launder money and for each count of money laundering. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors. An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings. United States Attorney Erek L. Barron commended the FHFA-OIG and FDIC-OIG for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Martin J. Clarke, and Harry M. Gruber, who are prosecuting the federal case. For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach . # # #


title: Justice Department and City of Portland, Oregon, Seek Independent Monitor and Partial Termination of Consent Decree Covering the Portland Police Bureau after Substantial Progress in Policing Reform

body_text: The Justice Department and the city of Portland, Oregon, filed a joint motion seeking court approval to terminate certain portions of the consent decree covering the Portland Police Bureau (PPB). The joint motion is based on one year of collaborative discussions between the department, the City, and key community stakeholders with a U.S. Magistrate Judge. Specifically, the joint motion requests: Terminating certain provisions based on the city and PPB’s sustained substantial compliance for at least three years. These provisions cover electronic control weapons (ECWs); Behavioral Health Unit; Training Advisory Committee; Enhanced Crisis Intervention Team; Behavioral Health Response Team; Service Coordination Team; Bureau of Emergency Communications; and Citizen Review Committee; Transferring to the city and PPB the responsibility for assessing and reporting their compliance with provisions covering community-based mental health services, a behavioral health advisory committee, portions of community oversight, and PPB’s stops data and annual reports; Appointing an independent monitor to assess the city’s compliance with the remaining provisions covering uses of force, training, PPB’s employee information system, and accountability. “Ensuing effective and constitutional policing is one of the Justice Department’s highest priorities,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Under this consent decree, the Portland Police Bureau has made substantial progress toward meaningful policing reform for the entire Portland community. The action we are taking now is a true testament to the collaborative efforts of the police, city officials and community which have helped transform aspects of policing over the last eight years. The Justice Department will continue to support the community, the city and the police as they forge ahead toward achieving full compliance with the consent decree.” “The Portland Police Bureau is committed to providing just and equitable policing for all Portlanders. We have seen this commitment repeatedly, firsthand, throughout the life of this settlement agreement,” said U.S. Attorney Natalie Wight for the District of Oregon. “The city has remained intently focused on improving its public safety services amid an incredibly challenging period marked by increasing violence, a global pandemic, and a historic addiction crisis. Despite these challenges, the police bureau has persevered and continued to achieve its objectives. We are proud to join the city today in marking this important milestone.” PPB has made meaningful change in reaching compliance with numerous provisions of the consent decree, including: PPB’s use of force against those with mental illness is now extremely low, occurring in about 0.5% of encounters (one in 209) and most of that is the lowest level of force, which does not cause injury; PPB has significantly reduced the use of ECWs and when officers do use ECWs, the use is in line with policy and national standards; PPB’s Behavioral Health Unit provides coordination and oversight of PPB’s various units that intersect with people in crisis, including the Enhanced Crisis Intervention Team, the Behavioral Health Response Teams and the Service Coordination Team, and interfaces with community partners across the region. A Portland State University study found that every dollar the City spends on the Service Coordination Team “has a corresponding $20.61 in avoided cost for the community;” The city’s Bureau of Emergency Communications has adopted policies and training to dispatch an appropriate first responder to calls for service that have a nexus to a person in mental health crisis; and PPB’s Training Advisory Committee has held open public meetings to provide valuable citizen input to PPB’s Training Division. If the court grants the joint motion, the parties will issue a public request for proposal seeking candidates for the Monitor role. Finalists will participate in a public town hall to answer community questions before the parties select a Monitor for the court to appoint. Once chosen, the Monitor will publicly report to the court every six months on the City’s progress and prepare outcome assessments measuring PPB’s performance implementing reforms. The District Court for the District of Oregon entered the settlement agreement in July 2015. The agreement and information about the Civil Rights Division are available on the division’s website at Special Litigation Section Cases and Matters .


title: Founder of Beverly Hills ‘Gentlemen Timepieces’ Consignment Store Charged with Conning Victims in Luxury Watch Ponzi-Type Scheme

component: USAO - California, Central

body_text: LOS ANGELES – A Los Angeles man who previously operated a business in Beverly Hills known as “Gentlemen Timepieces” appeared in court this afternoon after his arrest Tuesday by FBI agents on charges of defrauding customers of his luxury watch consignment business. Anthony Farrer, 35, who until recently lived in downtown Los Angeles, was charged in a federal criminal complaint filed Monday with wire fraud, a felony that carries a statutory maximum sentence of 20 years in federal prison. Farrer, who also was known as “The Timepiece Gentleman,” was arrested without incident at a storage facility in Venice and was held in federal custody overnight. He made his initial appearance this afternoon in United States District Court, and an arraignment was scheduled for December 14. A detention hearing is scheduled for Thursday. According to an affidavit filed with the complaint that was unsealed today, Farrer founded the company in Texas in 2017 and opened a location in Beverly Hills in 2022. Farrer used this business to connect purchasers and sellers of high-end watches. He would typically collect a watch from an individual and have them sign a consignment agreement that stipulated he would collect a commission from the sale, typically 5%. The complaint alleges that Farrer defrauded victims beginning in late 2022 until the summer of 2023, when he promised customers he would sell their luxury watches on consignment. Rather than remitting funds back to the customers less the commission, he kept the proceeds for himself. Farrer lived in a luxury rental property and was known to drive a Lamborghini and Ducati motorcycles. He traveled frequently to, and engaged in gambling in, Las Vegas, according to the complaint. Farrer induced victims into wiring funds for the purchase of luxury watches and, instead of purchasing the agreed upon watch, he would send them a different watch, the complaint alleges. In one case, a victim received a Rolex watch from Farrer in lieu of money Farrer owed, but the Rolex belonged to another victim who had provided the watch to Farrer to sell on consignment and did not authorize Farrer to use the watch as payment for his debts to other victims. The complaint further alleges that Farrer operated a scheme in a similar manner to a Ponzi scheme and would lull victims into a sense of security by engaging in smaller successful transactions prior to requesting or engaging in significantly larger transactions. Multiple victims contacted law enforcement to report that they wired funds to Farrer for the purchase of a watch, or mailed him a watch to consign for sale, but were never paid for the watch or never received their watch back. To date, law enforcement estimates that victim losses currently total approximately $3 million. The investigation is ongoing and law enforcement is in the process of identifying additional victims. Farrer apparently abandoned the Beverly Hills store in August 2023 and began posting about his various travel throughout the United States on social media. As recently as October 2023, Farrer continued to advertise watches for sale on his social media platforms, according to the complaint. A criminal complaint contains allegations. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. The FBI, IRS Criminal Investigation, and the Beverly Hills Police Department are investigating this matter. Assistant United States Attorney Joshua O. Mausner of the Violent and Organized Crime Section is prosecuting this case.


title: Charlotte Child Psychiatrist Is Sentenced To 40 Years In Prison For Sexual Exploitation of A Minor And Using Artificial Intelligence To Create Child Pornography Images Of Minors

component: USAO - North Carolina, Western

body_text: CHARLOTTE, N.C. – David Tatum, 41, a child psychiatrist in Charlotte, was sentenced today to 40 years in prison followed by 30 years of supervised release for sexual exploitation of a minor and using artificial intelligence (AI) to create child pornography images of minors, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Tatum was also ordered to pay restitution in an amount to be determined within 90 days, a $100 special assessment per count of conviction, and a special assessment totaling $99,000 under the Amy, Vicky, and Andy Child Pornography Victim Assistance Act (AVAA). After he is released from prison, Tatum will also be required to register with the Sex Offender Registry Board in any state or jurisdiction where he works or resides. Robert M. DeWitt, Special Agent in Charge of Federal Bureau of Investigation (FBI) in North Carolina joins U.S. Attorney King in making today’s announcement. “As a child psychiatrist, Tatum knew the damaging, long-lasting impact sexual exploitation has on the wellbeing of victimized children. Regardless, he engaged in the depraved practice of using secret recordings of his victims to create illicit images and videos of them,” said U.S. Attorney King. “Tatum also misused artificial intelligence in the worst possible way: to victimize children. Today’s 40-year sentence underscores our efforts to do all we can to bring justice to child victims. As the field of artificial intelligence advances, my office is committed to prosecuting predators who seek to exploit this technology to inflict harm on children.” “It is horrific to believe anyone would secretly record children undressing and showering for their own sexual gratification. And when the evidence proves that person is a doctor entrusted to help children through difficult mental health situations, it is inconceivable,” said FBI Charlotte Special Agent in Charge DeWitt. “The FBI will never stop working to put predators like Tatum behind bars for a very long time.” According to filed court documents, evidence presented at Tatum's trial and witness testimony, between 2016 to 2021, Tatum possessed images and videos of child pornography. As trial evidence established, in or about July 2016, Tatum secretly recorded a minor while the minor was undressing and showering. A forensic analysis of electronic devices revealed that Tatum produced the video of the minor and possessed it, along with other images and videos of child pornography. According to trial evidence, Tatum made similar surreptitious recordings of others, including of his patient during an outpatient visit who had just turned 18 years old five days before the recording. Additionally, trial evidence also established that Tatum used AI to digitally alter clothed images of minors making them sexually explicit. Specifically, trial evidence showed that Tatum used a web-based artificial intelligence application to alter images of clothed minors into child pornography. Two of the images Tatum used AI to modify were from a school dance and a photo commemorating the first day of school. On May 4, a federal jury in Charlotte convicted Tatum of one count of production of child pornography, one count of transportation of child pornography, and one count of possession of child pornography. Tatum is currently in federal custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility. In making today’s announcement, U.S. Attorney King commended FBI for their investigation of the case. Assistant United States Attorneys Daniel Cervantes and Mark T. Odulio of the U.S. Attorney’s Office in Charlotte prosecuted the case. This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov .