title: Readout of the Justice Department’s Civil Rights Division’s Meeting with Muslim, Arab, Sikh, South Asian and Hindu Community Stakeholders

component: Civil Rights Division

body_text: The Justice Department yesterday convened its quarterly interagency meeting with Muslim, Arab, Sikh, South Asian and Hindu community stakeholders. Attorney General Merrick B. Garland provided remarks with those at the meeting, underscoring the department’s commitment to addressing hate crimes. Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division outlined relevant enforcement efforts across the department and highlighted actions to prevent and combat discrimination and hate crimes. Assistant Secretary of Education Catherine Lhamon in the Department of Education’s Office for Civil Rights also addressed the attendees and highlighted efforts to ensure safe learning environments at schools, colleges and universities. Justice Department leadership, including representatives from the Civil Rights Division, FBI, Community Relations Service and Office of Justice Programs, heard from participating organizations about campus safety and civil rights protections for demonstrators, efforts to protect voting rights and actions to address employment discrimination. Representatives from other federal government agencies were also in attendance, including Officer Shoba Sivaprasad Wadhia of the Department of Homeland Security’s Office of Civil Rights and Civil Liberties and others from the Departments of Labor and State, Equal Employment Opportunity Commission and U.S. Commission on Civil Rights. Combating hate crimes, protecting religious freedom and addressing claims of discrimination are among the division’s top priorities. Yesterday’s meeting represents the department’s ongoing efforts to engage with organizations and stakeholders on issues affecting Muslim, Arab, Sikh, South Asian and Hindu communities. The department has continued to prosecute hate crimes, including recent cases involving a Kentucky man who was charged with brandishing a gun and threatening a Palestinian American and Muslim man at a restaurant, a New Jersey man for sending threatening letters containing racist, anti-Muslim and antisemitic language and imagery to businesses, schools, synagogues and individuals for the purpose of instilling fear in the community and the leaders of the Terrorgram Collective , a transnational terrorist group for using digital platforms to solicit others to engage in hate crimes and terrorist attacks against immigrants and other groups based on hate-fueled bigotry and white supremacy. In March, the department hosted community safety webinars for Muslim, Arab and Palestinian community stakeholders, during which the department released resource documents designed to help the public better understand federal civil rights laws, including laws that prohibit violence and discrimination on the basis of religion and national origin , and protections afforded by the Religious Land Use and Institutionalized Persons Act , a law that prohibits discriminatory land use decisions, and Title II of the Civil Rights Act of 1964 in public accommodations. If you believe that you or someone else experienced religious or national origin discrimination, you can report a civil rights violation online at civilrights.justice.gov . If you believe you are a victim or a witness of a hate crime, you can report it to the FBI by calling 1-800-CALL-FBI or submitting a tip at tips.fbi.gov . Learn more about the department’s work on hate crimes here . Assistant Attorney General Clarke speaks at the interagency meeting.


title: Clay County Felon Pleads Guilty To Possessing A Firearm

component: USAO - Florida, Middle

body_text: Jacksonville, Florida – United States Attorney Roger B. Handberg announces that Anthony Rodriguez, Jr. (32, Orange Park) has pleaded guilty to possession of a firearm by a convicted felon. Rodriguez faces up to 15 years in federal prison and forfeiture of a Glock pistol and ammunition traceable to the offense. Rodriguez made his initial appearance in federal court on July 9, 2024, and was ordered detained. According to court records, on May 11, 2024, Rodriguez shoplifted merchandise from a retail store in Clay County. Store personnel stopped Rodriguez and deputies from the Clay County Sheriff’s Office subsequently responded. As deputies searched Rodriguez incident to his arrest, a loaded Glock 43 9mm pistol fell on to the ground from Rodriguez’s clothing. At the time of the incident, Rodriguez had seven prior felony convictions, including two involving a firearm and ammunition. As a previously convicted felon, he is prohibited from possessing a firearm or ammunition under federal law. This case was investigated by the Clay County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives – Jacksonville Office. It is being prosecuted by Assistant United States Attorney Kevin C. Frein. This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.


title: Justice Department, Federal Trade Commission and Japan Fair Trade Commission commemorate the 25th Anniversary of U.S.-Japan Competition Cooperation Agreement

component: Antitrust Division

body_text: Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division, Commissioner Alvaro Bedoya of the Federal Trade Commission (FTC) and Commissioner Reiko Aoki of the Japan Fair Trade Commission (JFTC) met yesterday in Washington, D.C., to mark the 25th anniversary of the signing of an agreement between the United States and Japan concerning cooperation on anticompetitive issues. “The Japan Fair Trade Commission is one of our closest and most important international partners,” said Assistant Attorney General Kanter. “We are grateful to the JFTC for our long history of sharing best practices, discussing common challenges and working together on competition issues affecting both of our countries. We look forward to continuing our close relationship with the JFTC in the future.” “I want to thank Commissioner Aoki and the Japan Fair Trade Commission for being here today to commemorate this historic agreement,” said FTC Commissioner Bedoya. “The cooperation between the United States and Japan on competition issues extends back to 1976, long before this agreement was signed, making it the U.S. antitrust agencies’ longest-running bilateral consultation with any foreign competition agency. Our long and productive relationship reflects a mutual commitment to foster and enhance competition cooperation to the benefit of both countries, and the United States is grateful for this continuing relationship.” “Challenges to competitive markets, domestically and globally, have evolved since the agreement was signed, the first such agreement for JFTC,” said JFTC Commissioner Aoki. “The evolution of technologies and markets is proof of our successful cooperation in maintaining well-functioning markets. I would like to thank Assistant Attorney General Kanter and Commissioner Bedoya for this opportunity to celebrate our success and confirm our commitment for the next quarter century and beyond.” Under the 1999 competition cooperation agreement , the Justice Department, FTC and JFTC committed to notify each other of enforcement activities that may affect the other’s important interests and render assistance in enforcement activities where possible in order to contribute to the effective enforcement of the competition laws of each country. Commission Aoki, Assistant Attorney General Kanter and Commissioner Bedoya attend the meeting.


title: Human Smuggling Facilitator Sentenced to 12 Years in Federal Prison

component: USAO - Texas, Western

body_text: DEL RIO, Texas – A Mexican national was sentenced in federal court to 12 years in prison and ordered to pay more than $52,000 in restitution for her role as a stash house operator and facilitator. According to court documents, Dulce Maria Almaguer-Morquecho, 43, of Nueva Rosita, Coahuila, Mexico was registered as the owner of multiple vehicles and a cell phone involved in human smuggling attempts between May 14, 2021 and Jan. 17, 2022. Almaguer-Morquecho was identified as someone who harbored undocumented noncitizens and recruited load drivers for human smuggling operations, offering to pay the drivers $1,000 for every migrant they transported. Almaguer-Morquecho was arrested July 5, 2022. She pleaded guilty to one count of conspiracy to transport aliens, causing serious bodily injury or placing lives in jeopardy on Jan. 9, 2023. Co-defendant Haley Yvonne Garrett was sentenced on Aug. 15 to six years in prison for her role as a load driver for the organization. Garrett led a law enforcement on high-speed chase through Del Rio, crashing into a Sonic restaurant and ejecting several undocumented noncitizens from her vehicle. Several other co-defendants have received between three and five years in prison for their roles in the human smuggling conspiracy. U.S. Attorney Jaime Esparza of the Western District of Texas made the announcement. Homeland Security Investigations and the U.S. Border Patrol investigated the case. Assistant U.S. Attorney Brett Miner prosecuted the case. ###


title: Harper Woods Resident Arrested for Deadly Drug Distribution

component: USAO - Michigan, Eastern

body_text: DETROIT – A Harper Woods resident was arrested today for distributing drugs laced with fentanyl that killed three Grosse Pointe Woods residents in June 2023, announced United States Attorney Dawn N. Ison. Ison was joined in the announcement by Cheyvoryea Gibson, Special Agent in Charge of the Detroit Division of the Federal Bureau of Investigation, and John G. Kosanke, Director of Public Safety, City of Grosse Pointe Woods. Arrested was Aerian Porter-Craig, 32. According to the complaint, Porter-Craig had regularly sold drugs to the three victims prior to the fatal incident. On the evening of June 9, 2023, Porter-Craig delivered drugs to Adult Victim 1 (AV-1) and AV-2 at AV-1’s house in Grosse Pointe Woods. Porter-Craig also made a separate delivery to AV-3 at her house in Grosse Pointe Woods. Outgoing communications from all three victims’ phones stopped shortly after Porter-Craig had been to each house. At AV-1’s house, police found a tray next to AV-2’s body with a rolled up twenty-dollar bill and white powder that tested positive for cocaine and fentanyl. At AV-3’s house, police found a tray next to AV-3’s body with a straw and a white powder that contained fentanyl, cocaine, and xylazine. Text messages indicate that the victims thought they were buying cocaine. The Wayne County Medical Examiner determined that AV-1 and AV-2 died from fentanyl toxicity, and AV-3 had died from fentanyl and xylazine toxicity. Xylazine is an animal tranquilizer unsafe for human consumption but is sometimes mixed with fentanyl by drug traffickers. “Three young people lost their lives as fentanyl continues to ravage our communities,” U.S. Attorney Ison said. “Fentanyl is everywhere, which means there is no such thing as safe use of illegal drugs. Along with our agency partners, we will continue to pursue these cases and hold drug dealers accountable for their crimes.” “The arrest of Aerian Porter-Craig, an alleged drug dealer, marks the next step for law enforcement in combating the illegal distribution of drugs, such as Fentanyl,” said Cheyvoryea Gibson, Special Agent in Charge of the FBI in Michigan. “The families of the three victims who tragically lost their lives can find some solace in knowing the FBI in Michigan, in collaboration with the Grosse Pointe Woods Police Department, remains committed to investigating and delivering justice to those affected by such criminal activities.” “I appreciate all of the hard work that went into this investigation. The collaborative effort between agencies demonstrates our strong commitment to hold accountable those who plague our communities with these deadly drugs,” said Director Kosanke. It is important to note that a complaint is merely a charge and should not be considered as evidence of guilt. The defendant is presumed innocent until proven guilty in a court of law. This case is being investigated by special agents of the Federal Bureau of Investigation and the City of Grosse Pointe Woods Detective Bureau. This case is being prosecuted by Assistant U.S. Attorney Thomas Franzinger.


title: Pasadena Man Pleads Guilty To Sexual Exploitation  Of A Minor And Commission Of A Felony Involving A Minor  By A Registered Sex Offender

component: USAO - Maryland

body_text: Baltimore , Maryland – Gary Hammond Jackson III, age 32, of Pasadena, Maryland, pleaded guilty today to federal charges of sexual exploitation of a minor and the commission of a felony involving a minor by a registered sex offender. The guilty plea was announced by Erek L. Barron, United States Attorney for the District of Maryland; Special Agent in Charge William J. DelBagno of the Federal Bureau of Investigation (“FBI”) Baltimore Field Office, Roland L. Butler, Jr. Superintendent of the Maryland State Police, and Anne Colt Leitess of the Anne Arundel County State’s Attorney’s Office. According to his guilty plea, in 2020 and 2022, Jackson sexually abused two minor females, then ages 6 and 3, and produced images of the abuse. Specifically, in November 2020, Jackson sexually abused the first victim, then 6 years old, and used his cell phone to produce three images of the abuse. In addition to the sexual exploitation that occurred in November 2020, Jackson sexually assaulted the victim at various times between January 2020 and December 2020. On the basis of that separate conduct, Jackson was convicted of a Fourth Degree Sex Offense and Second Degree Assault in the Circuit Court for Anne Arundel County, Maryland. Following his release, Jackson was required to register as a sex offender. After being required to register as a sex offender, Jackson used his cell phone in November 2022 to produce thirteen images of a second victim’s genitals when the victim was 3 years old. In November 2022, investigators searched Jackson’s residence and located various digital devices, which contained over 1,500 files of child pornography. Jackson faces a minimum sentence of 15 years and a maximum of 30 years in federal prison for the sexual exploitation of a minor and a mandatory sentence of 10 years in federal prison for commission of a felony involving a minor by a registered sex offender. Actual sentences for federal crimes are typically less than the maximum penalties. 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. U.S. Attorney Barron commended the FBI, the Maryland State Police, and the Anne Arundel County State’s Attorney’s Office for their work in the investigation. Mr. Barron also thanked Assistant United States Attorneys Spencer L. Todd and Paul E. Budlow, who are prosecuting the 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: Enterprise Man Sentenced to Four Years in Federal Prison for Possessing Stolen Firearms

component: USAO - Alabama, Middle

body_text: Montgomery, ALABAMA – On September 9, 2024, a federal judge ordered 29-year-old Aubrey Keith Bryant, from Enterprise, Alabama, to serve 48 months in prison for possessing stolen firearms, announced Acting United States Attorney Kevin P. Davidson. The judge also ordered that Bryant remain on supervised release for three years following his prison term. There is no parole in the federal system. According to Bryant’s plea agreement and other court records, on March 12, 2022, law enforcement in Troy, Alabama observed Bryant driving a truck recklessly and initiated a traffic stop. During the stop, officers discovered that Bryant’s driver’s license had been revoked. When Bryant exited the vehicle officers saw a bag of suspected methamphetamine and a handgun in plain view. Investigators searched the vehicle and found a total of 10 guns, a suppressor for a firearm, and a checkbook containing checks in another individual’s name. Further investigation revealed that these items had been stolen from a storage unit in Enterprise. On May 2, 2024, Bryant pleaded guilty to possession of the stolen firearms in federal court. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Troy Police Department investigated this case, with assistance from the Enterprise Police Department. Assistant United States Attorney Eric M. Counts prosecuted the case.


title: IRS Supervisor Pleads Guilty To Accepting Bribes From A Government Subcontractor

component: Criminal Division

body_text: Washington – A Maryland man pleaded guilty to accepting cash bribes in exchange for helping acquaintances and their businesses procure and continue work on subcontracts with the IRS. The guilty plea was announced by Erek L. Barron, United States Attorney for the District of Maryland; and Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. According to court documents, Satbir Thukral, 62, of Germantown, worked for the IRS as a computer engineer and served in a position supervising various information technology contracts. In September 2018, Individual 1’s company (Company 1) began working on a subcontract for the IRS that Thukral supervised. Starting in October 2018, Thukral sought portions of Individual 1’s earnings and of the earnings of two employees of Company 1 from Company 1’s work on the IRS subcontract. Individual 1 made such payments between 2018 and 2020, but in early February 2021, told Thukral that Individual 1 would not make any more payments. Thukral then told Individual 1 that Individual 1 would suffer economic consequences if Individual 1 did not continue to pay. In early February 2023, Individual 1 — at the direction of law enforcement — recorded an in-person meeting with Thukral. During the meeting, Individual 1 told Thukral that the FBI had asked Individual 1 about Individual 1’s subcontracting work with the IRS and bank withdrawals Individual 1 had made. To conceal that Individual 1 had made the payments to Thukral, Thukral instructed Individual 1 to tell lies to the FBI about the nature of the cash withdrawals. Later that same day, to assist and induce Individual 1 to lie to the FBI and to further conceal payments that Thukral demanded and received from Individual 1, Thukral returned a portion of the proceeds received from Individual 1. In total, however, Individual 1 paid Thukral more than $120,000. In July 2022, Thukral was also involved in a scheme in which he and Co-conspirator 1 (CC-1), who was previously a manager at a prime contractor (Company 2) with the IRS, began secretly communicating via a “burner phone” related to IRS contracting and potential payments to Thukral. The next month, CC‑1 provided Thukral with approximately $2,800 that CC-1 had received from another individual to pay Thukral. CC-1 made the payment, in part, in return for Thukral facilitating the continued employment of individuals at Company 3 and Company 4 — both companies being IRS subcontractors with whom CC-1 had an affiliation, and both employees being underqualified for their positions — to work on existing IRS matters. In addition, at the time of the payment, Thukral had been selected to serve on a three-person panel that would have evaluated the technical feasibility of bids for an upcoming IRS contract valued at approximately $200 million. Thukral pleaded guilty to Acceptance of Bribes by a Public Official. At sentencing, not yet scheduled by the court, Thukral faces a maximum penalty of 15 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. U. S. Attorney Barron commended the FBI and TIGTA for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Elizabeth Wright, Christopher Sarma and Trial Attorney Matt Kahn of the Justice Department’s Fraud Section, 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: Ottumwa Man Sentenced to 40 Years in Federal Prison for Sex Trafficking and Enticement of Minors

component: USAO - Iowa, Southern

body_text: DES MOINES, Iowa – An Ottumwa man was sentenced on September 6, 2024, to 40 years in federal prison for sex trafficking by force, fraud, and coercion of two victims, sex trafficking of one child, enticement and attempted enticement of two minors, and using the internet to facilitate prostitution after pleading guilty to all six charges in April 2024, roughly a week before his trial was scheduled to begin. According to public court documents, from 2018 to 2023, Darnell Keith Jones, 32, victimized at least five individuals—two children and three adults—throughout parts of Iowa, Illinois, and Indiana, including in the areas of Ottumwa, Des Moines, Cedar Rapids, and Chicago. Jones successfully sex trafficked one adult and one child. To cause his victims to engage in sex acts in exchange for money, Jones used physical assaults, harassment, and threats. He also acted like a boyfriend to his victims, attempting to convince victims that they could demonstrate their loyalty and love by completing sex acts for money. Among other things, Jones threatened a victim with a knife, hit a victim with a brick, and choked and strangled victims with such force that his victims lost consciousness or even urinated. Jones raped one victim and attempted to rape another. Jones admitted that he drove his victims to locations where they completed sex acts for money and that he used various internet websites to advertise the adult victims. Jones coerced and attempted to coerce two female children to engage in illegal sexual conduct, including prostitution. One child was just fourteen years old, and Jones used text-message communications to persuade the child to engage in prostitution and to engage in sex acts with him. “This case and many similar cases have a lifelong impact on the victims, which is not something the Wapello County Sheriff’s Office takes lightly,” said Wapello County Sheriff Don Phillips. “Local, state, and federal agencies worked together towards the common goal of ensuring justice for the victims and protecting the community. I will always make sure the Wapello County Sheriff’s Office does our part in combating human trafficking in the State of Iowa.” United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. This criminal case was investigated jointly by the Ottumwa Police Department, Wapello County Sheriff’s Office, the Iowa Division of Criminal Investigation, and Homeland Security Investigations. Wapello County Sheriff's Office Detective Aaron McConnell, Ottumwa Police Department Investigator Jeremy Tosh, and Ottumwa Police Department Investigator Caleb Mitchell served as case agents, with assistance from Special Agent Hai Tran, of Homeland Security Investigations and the Iowa Division of Criminal Investigation. Assistant United States Attorneys Kyle Essley and Laura Roan prosecuted the case. Human trafficking is a crime involving the exploitation of youth under the age of 18 for commercial sex; the exploitation of adults for commercial sex through the use of force, fraud, or coercion; and the exploitation of any individual for compelled labor. Human trafficking does not require the transportation of individuals across state lines, or that someone is physically restrained. Signs that a person is being trafficked can include working excessively long hours, unexplained gifts, physical injury, substance abuse issues, running away from home, isolation from others, or having a person in their life controlling them or monitoring them closely. Victims particularly susceptible to being trafficked include those with criminal histories, a history of physical or sexual abuse, uncertain legal status, and dependency on controlled substances. Individuals who purchase sex from minors or from those who are otherwise exploited for commercial sex are also subject to prosecution for sex trafficking under federal law, if they knew or were in reckless disregard of the fact that they were under the age of 18, or that force, fraud, or coercion was used. Anyone who suspects human trafficking is occurring, be it a minor engaging in paid sex acts, or anyone being coerced into prostitution or labor, is urged to call the National Human Trafficking Hotline at 1-888-373-7888.


title: Des Moines Man Pleads Guilty to Child Pornography Possession and Sexual Exploitation Charges

component: Federal Bureau of Investigation (FBI)

body_text: DES MOINES, Iowa – A Des Moines businessman pleaded guilty to sexual exploitation and attempted sexual exploitation of a child and possession of child pornography. According to public court documents, Jeffrey Walter Gray, 61, created and possessed child sexual abuse material. Gray, from as early as approximately 2005 to at least approximately 2016, used minors to produce child sexual abuse material. Some of the material was created at the photography business Gray owned and operated in the Des Moines area—Wicked Imagery. The material included images from hidden cameras placed in the changing rooms at Wicked Imagery to capture videos and/or images of minor children undressing. In November 2023, investigators recovered a hard drive which was later determined to contain child sexual abuse material, including at least fifteen minor victims, from Gray’s residence. Gray is scheduled to be sentenced on January 8, 2025, and faces a mandatory minimum sentence of 15 years in prison and maximum sentence of 30 years for the sexual exploitation charge. Gray also faces a maximum sentence of 20 years in prison for the possession of child pornography charge. A federal district court judge will determine any sentence after considering the United States sentencing guidelines and other statutory factors. United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. The Federal Bureau of Investigation investigated the case with the assistance of the Des Moines Police Department. 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 Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc . For information about internet safety education, please visit www.usdoj.gov/psc and click on the resources tab.


title: United States Files Suit Against Pain Institute of Nashville, Michael Cox, Debbie Cox, and Related Entities

component: USAO - Tennessee, Middle

body_text: NASHVILLE – The United States today filed a complaint in intervention alleging violations of the False Claims Act by Clarksville Pain Institute, LLC, Pain Institute of Nashville, PLC, Michael Cox, and Debbie Cox, announced Acting U.S. Attorney Thomas J. Jaworski for the Middle District of Tennessee. The complaint also includes the common law claims of unjust enrichment and payment by mistake. As set forth in detail in the 70-page complaint, since at least 2014, these pain clinics and the Coxes violated the False Claims Act by knowingly submitting or causing to be submitted false claims for diagnostic testing services provided to patients that were not medically necessary, including urine drug screens, allergy tests, and psychological tests. The complaint alleges that the defendants pressured staff at their Clarksville pain management clinic to bill for more testing than was medically necessary, that the practice routinely tested patients’ urine and did not review the results, and that the practice operated multiple schemes to maximize testing profits from different kinds of diagnostic testing. Moreover, the complaint alleges that the defendants ignored multiple warnings from consultants, auditors, and insurers that their billing practices did not comport with Medicare requirements. Furthermore, the complaint alleges that patients described being treated like cattle at the clinic, spending minutes with providers, and receiving unnecessary testing that was pushed on patients if they wanted to receive their pain medications. The government began investigating the wrongdoing alleged in today’s complaint in response to a lawsuit filed under the qui tam , or whistleblower, provisions of the False Claims Act. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. The matter is being investigated by the Department of Health and Human Services, Office of Inspector General, and the Department of Veterans Affairs, Office of Inspector General. Assistant U.S. Attorney Michael Tackeff represents the United States. The claims alleged by the United States are allegations only, and there has been no determination of liability. The lawsuit is captioned United States ex. rel. Krista Nicholson, et al. v. Clarksville Pain Institute, LLC, et al. , Case No. 3:20-cv-00309 (M.D. Tenn.). # # # # #


title: Two men sentenced to nine years in prison for stealing 50 firearms from Virginia store

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

body_text: ALEXANDRIA, Va. – A Maryland man and a Washington man were sentenced for the burglary of a federal firearms licensee (FFL) from which they stole 50 firearms. According to court documents, on April 29, 2023, Victor Jones, 22, of Washington, Cedric Minger, 22, of Brandywine, Maryland, and two other co-conspirators drove a stolen Acura ILX from Washington to an FFL in Springfield, Virginia, with the intention of breaking in and stealing firearms. After his initial attempts to gain entry, including shooting a round at the door with a firearm, were unsuccessful, Minger was able to wriggle his way through an opening at the top of the doorframe. Once inside, Minger quickly grabbed firearms from around the store and passed them through the door to Jones and the others, who then loaded them into the stolen Acura ILX. Jones, Minger, and their co-conspirators then transported the stolen firearms to Washington and later offered them for sale. One of the stolen firearms was recovered from a student at an elementary school. Jones and Minger pled guilty on June 20 to conspiracy to steal firearms from an FFL and stealing firearms from an FFL. On Sept. 4, Jones was sentenced to nine years in prison. Minger was sentenced today to nine years and six months in prison. Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Steve T. Descano, Commonwealth’s Attorney for Fairfax County; James VanVliet, Acting Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives Washington Field Division; and Kevin Davis, Fairfax County Chief of Police, made the announcement after sentencing by Senior U.S. District Judge Anthony J. Trenga. Assistant U.S. Attorneys Meredith J. Edwards and Cristina Stam prosecuted the case. 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 No. 1:24-cr-39.


title: Pakistani National with Ties to Iran Charged in Connection with Foiled Plot to Assassinate a Politician or U.S. Government Official

component: Office of the Attorney General

body_text: Asif Merchant, also known as Asif Raza Merchant, was indicted yesterday with attempting to commit an act of terrorism transcending national boundaries and murder-for-hire as part of a scheme to assassinate a politician or U.S. government official on U.S. soil. Law enforcement foiled the plot before any attack could be carried out. Merchant was previously arrested and charged by complaint in July 2024. Merchant was ordered detained and is currently in federal custody. “The Justice Department will not tolerate Iran’s efforts to target our country’s public officials and endanger our national security,” said Attorney General Merrick B. Garland. “As these terrorism and murder for hire charges against Asif Merchant demonstrate, we will continue to hold accountable those who would seek to carry out Iran’s lethal plotting against Americans.” “This dangerous murder-for-hire plot was allegedly orchestrated by a Pakistani national with close ties to Iran and is straight out of the Iranian regime's playbook,” said FBI Director Christopher Wray. “A foreign-directed plot to kill a public official, or any U.S. citizen, is a serious threat to our national security and will be met with the full might and resources of the FBI. Protecting Americans from terrorists remains our highest priority.” “As alleged, Merchant orchestrated a plot to assassinate U.S. politicians and government officials,” said U.S. Attorney Breon Peace for the Eastern District of New York. “Today’s indictment is a message to terrorists here and abroad that my Office and the Department of Justice will continue to take all steps necessary to protect the country against foreign threats.” As set forth in court filings, in approximately April, after spending time in Iran, Merchant arrived in the United States from Pakistan and contacted a person he believed could assist him with the scheme to kill a politician or government official. That person reported Merchant’s conduct to law enforcement and became a confidential source (the CS). In early June, Merchant met the CS in New York and explained his assassination plot. Merchant told the CS that the opportunity he had for the CS was not a one-time opportunity and would be ongoing. Merchant then made a “finger gun” motion with his hand, indicating that the opportunity was related to a killing. Merchant further stated that the intended victims would be “targeted here,” meaning in the United States. Merchant instructed the CS to arrange meetings with individuals whom Merchant could hire to carry out these actions. Merchant explained that his plot involved multiple criminal schemes: (1) stealing documents or USB drives from a target’s home; (2) planning a protest; and (3) killing a politician or government official. At that meeting, Merchant began planning potential assassination scenarios and quizzed the CS on how he would kill a target in the various scenarios. Specifically, Merchant asked the CS to explain how the target would die in different scenarios. Merchant told the CS that there would be “security [] all around” the person. Merchant stated that the assassination would occur after he left the United States, and he would communicate with the CS from overseas using code words. The CS asked whether Merchant had spoken to the unidentified “party” back home with whom Merchant was working. Merchant responded that he had and that the party back home told him to “finalize” the plan and leave the United States. In mid-June, Merchant met with the purported hitmen, who were in fact undercover U.S. law enforcement officers (the UCs) in New York. Merchant advised the UCs that he was looking for three services from them: theft of documents, arranging protests at political rallies and for them to kill a “political person.” Merchant stated that the hitmen would receive instructions on who to kill either the last week of August or the first week of September, after Merchant had departed the United States. Merchant then began arranging means to obtain $5,000 in cash to pay the UCs as an advance payment for the assassination, which he eventually received with assistance from an individual overseas. On June 21, Merchant met with the UCs in New York and paid them the $5,000 advance. After Merchant paid the $5,000 to the UCs, one of the UCs stated, “now we’re bonded,” to which Merchant responded “yes.” The UC then stated “Now we know we’re going forward. We’re doing this,” to which Merchant responded “Yes, absolutely.” Merchant subsequently made flight arrangements and planned to leave the United States on Friday, July 12. On July 12, law enforcement agents placed Merchant under arrest before he could leave the country. If convicted, Merchant faces a maximum penalty of life in prison. The FBI Dallas, Houston, Tampa, Boston, Washington, Chicago, and Albany Field Offices investigated the case. The New York City Police Department, the U.S. Attorney’s Office for the Southern District of Texas and the U.S. Customs and Border Protection provided assistance. Assistant U.S. Attorneys Sara K. Winik, Gilbert Rein and Douglas Pravda for the Eastern District of New York and Trial Attorneys David Smith and Joshua Champagne of the National Security Division’s Counterterrorism 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.


title: IRS Information Technology Supervisor Pleads Guilty to Accepting Bribes from Government Subcontractor

body_text: A Maryland man pleaded guilty yesterday to accepting cash bribes in exchange for helping acquaintances and their businesses procure and continue work on subcontracts with the IRS. According to court documents, Satbir Thukral, 62, of Germantown, worked for the IRS as a computer engineer and supervised various information technology contracts. In September 2018, Company 1 began working on a subcontract for the IRS that Thukral supervised. Starting in October 2018, Thukral sought cash payments from Company 1’s owner, Individual 1, constituting a portion of the earnings from Company 1’s work on the IRS subcontract. Between 2018 and 2020, Individual 1 made multiple cash payments to Thukral totaling more than $120,000. In February 2021, when Individual 1 told Thukral that Individual 1 would not pay any more money, Thukral attempted to extort Individual 1 by threatening that Individual 1 would suffer economic consequences if the payments did not continue. In early February 2023, Individual 1 recorded an in-person meeting with Thukral at the direction of law enforcement. During the meeting, Individual 1 told Thukral that the FBI had asked about bank withdrawals that Individual 1 had made. Thukral instructed Individual 1 to lie to the FBI about the nature of the cash withdrawals. Later that same day, to assist and induce Individual 1 to lie to the FBI and to further the concealment of the payments, Thukral returned a portion of the proceeds that Thukral had received from Individual 1. In a separate scheme, in July 2022, Thukral received approximately $2,800 in cash from a former manager at a prime contractor with the IRS. The manager made the payment, in part, in return for Thukral’s facilitating the continued employment of two underqualified individuals at two other IRS subcontractors with whom the manager had an affiliation. In addition, at the time of the payment, the manager believed that Thukral, who had been selected to serve on a three-person panel that would have evaluated the technical feasibility of bids for an upcoming IRS contract valued at approximately $200 million, could influence the valuations to benefit companies with which the manager had an affiliation. Thukral pleaded guilty to acceptance of bribes by a public official. Thukral faces a maximum penalty of 15 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division, U.S. Attorney Erek L. Barron for the District of Maryland, Assistant Director in Charge David Sundberg of the FBI Washington Field Office, and Special Agent in Charge Andrew McKay of the Treasury Inspector General for Tax Administration (TIGTA) made the announcement. The FBI and TIGTA are investigating the case. Trial Attorney Matt Kahn of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Elizabeth Wright and Christopher Sarma for the District of Maryland are prosecuting the case.


title: Pakistani National with Ties to Iran Indicted on Terrorism Charge in Connection with Foiled Plot to Assassinate U.S. Politicians and Government Officials

component: USAO - New York, Eastern

body_text: Yesterday, in federal court in Brooklyn, an indictment was filed charging Asif Merchant, also known as “Asif Raza Merchant,” with attempting to commit an act of terrorism transcending national boundaries and murder-for-hire as part of a scheme to assassinate a politician or U.S. government official on U.S. soil. Law enforcement foiled the plot before any attack could be carried out. Merchant was previously arrested and charged by complaint in July 2024. Merchant was ordered detained and is currently in federal custody. If convicted, Merchant faces up to life in prison. Merrick B. Garland, United States Attorney General; Breon Peace, United States Attorney for the Eastern District of New York; and Christie M. Curtis, Acting Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the indictment. “The Justice Department will not tolerate Iran’s efforts to target our country’s public officials and endanger our national security,” said Attorney General Merrick B. Garland. “As these terrorism and murder for hire charges against Asif Merchant demonstrate, we will continue to hold accountable those who would seek to carry out Iran’s lethal plotting against Americans.” “As alleged, Merchant orchestrated a plot to assassinate U.S. politicians and government officials. Today’s indictment is a message to terrorists here and abroad that my Office and the Department of Justice will continue to take all steps necessary to protect the country against foreign threats,” stated United States Attorney Peace. Mr. Peace expressed his appreciation to the FBI’s Field Offices in Dallas, Houston, Tampa, Boston, Washington D.C., Chicago and Albany for their partnership on this case. Mr. Peace also expressed his appreciation to the New York City Police Department, the U.S. Attorney’s Office for the Southern District of Texas and the U.S. Customs and Border Protection for their assistance. “Merchant’s efforts to allegedly recruit criminal associates for the murder of American politicians are representative of the various threats our nation can face from afar. The formidable efforts of our office ensured that the defendant was unsuccessful in executing his plan and demonstrate FBI New York’s commitment to curtailing the threats to our country and its citizens that come from both within and outside our borders,” stated FBI Assistant Director in Charge Curtis. As set forth in court filings, in approximately April 2024, after spending time in Iran, Merchant arrived in the United States from Pakistan and contacted a person he believed could assist him with the scheme to kill a politician or government official. That person reported Merchant’s conduct to law enforcement and became a confidential source (the CS). In early June, Merchant met the CS in New York and explained his assassination plot. Merchant told the CS that the opportunity he had for the CS was not a one-time opportunity and would be ongoing. Merchant then made a “finger gun” motion with his hand, indicating that the opportunity was related to a killing. Merchant further stated that the intended victims would be “targeted here,” meaning in the United States. Merchant instructed the CS to arrange meetings with individuals whom Merchant could hire to carry out these actions. Merchant explained that his plot involved multiple criminal schemes: (1) stealing documents or USB drives from a target’s home; (2) planning a protest; and (3) killing a politician or government official. At that meeting, Merchant began planning potential assassination scenarios and quizzed the CS on how he would kill a target in the various scenarios. Specifically, Merchant asked the CS to explain how the target would die in different scenarios. Merchant told the CS that there would be “security [] all around” the person. Merchant stated that the assassination would occur after he left the United States and he would communicate with the CS from overseas using code words. The CS asked whether Merchant had spoken to the unidentified “party” back home with whom Merchant was working. Merchant responded that he had and that the party back home told him to “finalize” the plan and leave the United States. In mid-June, Merchant met with the purported hitmen, who were in fact undercover U.S. law enforcement officers (the UCs) in New York. Merchant advised the UCs that he was looking for three services from them: theft of documents, arranging protests at political rallies and for them to kill a “political person.” Merchant stated that the hitmen would receive instructions on who to kill either the last week of August or the first week of September, after Merchant had departed the United States. Merchant then began arranging means to obtain $5,000 in cash to pay the UCs as an advance payment for the assassination, which he eventually received with assistance from an individual overseas. On June 21, Merchant met with the UCs in New York and paid them the $5,000 advance. After Merchant paid the $5,000 to the UCs, one of the UCs stated, “now we’re bonded,” to which Merchant responded “yes.” The UC then stated “Now we know we’re going forward. We’re doing this,” to which Merchant responded “Yes, absolutely.” Merchant subsequently made flight arrangements and planned to leave the United States on Friday, July 12, 2024. On July 12, law enforcement agents placed Merchant under arrest before he could leave the country. The charges in the indictment are allegations and Merchant is presumed innocent unless and until proven guilty. The case is being handled by the Office’s National Security & Cybercrime Section. Assistant United States Attorneys Sara K. Winik, Gilbert Rein and Douglas Pravda are in charge of the prosecution, with assistance from Trial Attorneys David Smith and Joshua Champagne of the Department of Justice’s Counterterrorism Section of the National Security Division. The Defendant : ASIF MERCHANT (also known as “Asif Raza Merchant”) Age: 46 Karachi, Pakistan; Tehran, Iran E.D.N.Y. Docket No. 24-CR-362 (EK)


title: Texas Man Sentenced To 10 Years In Prison For Over $16 Million Consumer Electronics Fraud Conspiracy

component: USAO - New York, Southern

body_text: Damian Williams, the United States Attorney for the Southern District of New York, announced that OLUSEUN MARTINS OMOLE, a/k/a “Seun Omole,” was sentenced today to 10 years in prison by U.S. District Judge Jesse M. Furman for participating in a large-scale fraud conspiracy involving more than $16 million in consumer electronics and other goods that were fraudulently obtained from thousands of victims in the U.S. and elsewhere. OMOLE previously pled guilty to one count of conspiracy to commit wire fraud before U.S. Magistrate Judge Katharine H. Parker. U.S. Attorney Damian Williams said: “For approximately five years, Oluseun Martins Omole used his satellite communications business as a front to receive more than 23,000 laptops, tablets, smartphones, smartwatches, and other consumer goods. These items—worth more than $16 million—were bought and sent by thousands of victims nationwide who were defrauded by Omole and his associates. Omole’s fraud devastated victims: some had to take out loans, others fell into debt or declared bankruptcy, and some even attempted suicide. Today’s sentence sends the message that a lengthy prison sentence will await those who participate in these destructive fraud schemes.” According to the allegations contained in the Indictment and Complaint, the plea agreement, and other public filings and statements made in court: From at least in or about February 2018 through at least in or about March 2023, OMOLE participated in a criminal enterprise (the “Enterprise”) that scammed thousands of victims in the U.S. and elsewhere of more than $16 million in consumer electronics, including smartphones, smartwatches, laptops, and tablets, among other items. The scams included romance scams, in which Enterprise members sent electronic communications to victims pretending to be interested in a romantic relationship, gained the victim’s trust and affection, and took advantage of that goodwill to induce the victim into sending consumer electronics and other money or property to OMOLE; online marketplace scams, in which Enterprise members contacted victims who were selling consumer electronics on online marketplaces, falsely represented to the victim that the Enterprise members had bought and paid for the consumer electronics, and instructed the victim to send the consumer electronics to OMOLE; and employment scams, in which Enterprise members posted phony job positions online, falsely informed unwitting victims that they were hired for the non-existent positions, and instructing the victim to send electronics to OMOLE under the guise that those electronics were needed for the non-existent position (together, the “Fraudulent Electronics Scams”). During the relevant time period, OMOLE owned and operated a Texas-based business corporation named Tobylink Impressions, Inc. (“Tobylink”), which purported to be a distributor, re-seller, and supplier of satellite communications equipment. In reality, however, Tobylink was a front through which OMOLE received more than 23,000 fraudulently obtained laptops, tablets, smartphones, smartwatches, and other consumer goods sent by thousands of victims nationwide, which OMOLE then repackaged and shipped in bulk to other members of the Enterprise located in Nigeria. From February 2018 to October 2021, OMOLE received items from victims at a storage unit in Richmond, Texas, and from August 2021 to March 2023, OMOLE received items from victims at a warehouse in Sugar Land, Texas. In total, OMOLE charged his co-conspirators at least approximately $623,894.50 in duty fees and weight-based shipping fees in exchange for receiving and shipping more than $16 million in fraudulently obtained consumer electronics and other consumer goods. OMOLE and his co‑conspirators’ actions victimized thousands of innocent people and caused substantial financial and emotional harm to those victims. For example, among the victims were: a victim who lost more than $350,000 and had to take out a $200,000 loan on her house that she was only $6,000 away from paying off; a victim who lost more than $75,000 and needed to file for bankruptcy; a victim who incurred more than $18,000 in credit card debt, had his credit score negatively affected, began suffering health issues, and considered committing suicide; and a victim who lost more than $220,000, had her cats taken away by county authorities due to the financial harm, and attempted suicide on two occasions. If you believe you are a victim of the Fraudulent Electronics Scams and that you may be entitled to restitution, you may visit the following website: http://fbi.gov/TobylinkFraudVictims , or contact the following email address: TobylinkFraudVictims@fbi.gov . Any responses should be received by no later than December 1, 2024. * * * In addition to the prison term, OMOLE, 58, of Sugar Land, Texas, was sentenced to three years of supervised release, ordered to forfeit $623,894.50 and various consumer electronics and other goods seized by law enforcement, and ordered to make restitution in an amount to be determined. Mr. Williams praised the outstanding investigative work of the Federal Bureau of Investigation. Mr. Williams also thanked Homeland Security Investigations for its assistance with the investigation. The prosecution of this case is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorney Jerry J. Fang is in charge of the prosecution.


title: Federal Judge Sentences Rockford Man to More Than Five Years in Prison for Illegally Possessing Firearms

body_text: ROCKFORD — A federal judge has sentenced a Rockford man to more than five years in federal prison for illegally possessing firearms in Rockford. U.S. District Judge Iain D. Johnston on Tuesday sentenced RENARD MACKLIN, 36, to 70 months in prison to be followed by three years of supervised release. Macklin pleaded guilty earlier this year to a charge of illegal firearm possession. As a previously convicted felon, Macklin was prohibited by federal law from possessing firearms. Macklin admitted in a plea agreement that, on two occasions, he possessed a firearm when he was a convicted felon. Macklin admitted that on Oct. 10, 2020, he was driving a vehicle in which he possessed a Ruger AR-15 style rifle loaded with a large capacity magazine and one round in the chamber. When Rockford Police attempted to pull him over, Macklin fled at a high rate of speed. On March 16, 2021, Macklin possessed a stolen semi-automatic handgun loaded with a 15-round magazine, which was seized by the Winnebago County Sheriff’s Office during the execution of a search warrant in Rockford. The sentence was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Christopher Amon, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives, Carla Redd, Chief of the Rockford Police Department, and Gary Caruana, Sheriff of Winnebago County. The government was represented by Deputy Criminal Chief Jessica Maveus. Holding illegal firearm possessors accountable through federal prosecution is a centerpiece of Project Safe Neighborhoods (PSN) – the Department of Justice’s violent crime reduction strategy. In the Northern District of Illinois, the U.S. Attorney’s Office and law enforcement partners have deployed the PSN program to attack a broad range of violent crime issues facing the district, particularly firearm offenses.


title: Two Men Charged with Trafficking Firearms from U.S. to Dominica

component: National Security Division (NSD)

body_text: A federal grand jury in New Haven has returned a nine-count indictment charging NEILCON ST. LOUIS, 39, of Waterbury, Connecticut, and DAVIDSON ALEXANDER, also known as “Harley, ” 29, a citizen of Dominica residing in Suffolk, Virginia, with offenses stemming from the illegal trafficking and export of firearms and firearm components from the U.S. to Dominica. The indictment was returned on September 5 and unsealed yesterday after St. Louis and Alexander were arrested. U.S. Attorney Vanessa Roberts Avery; Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division; Acting Special Agent in Charge Aaron Tambrini of the U.S. Department of Commerce’s Office of Export Enforcement, Boston; Special Agent in Charge Michael J. Krol of Homeland Security Investigations (HSI), New England; Inspector in Charge Ketty Larco-Ward of the U.S. Postal Inspection Service, Boston Division; Special Agent in Charge James Ferguson, ATF Boston Field Division; and Special Agent in Charge Harry T. Chavis, Jr., of IRS Criminal Investigation in New England, made the announcement. The indictment alleges that from at least January 2021 through September 2024, St. Louis, Alexander, and others, including a resident of Dominica, conspired to engage in the business of dealing firearms without a license, and to export firearms, firearm components, and ammunition from the U.S. to Dominica without authorization from the U.S. Department of Commerce, in violation of the Export Control Reform Act. St. Louis, Alexander, and the Dominica resident purchased numerous firearm components from sellers on eBay, which were then mailed to their relatives and acquaintances in the U.S. St. Louis and Alexander obtained the purchased firearm components and then smuggled them, by mailing, or by directing the mailing of, parcels containing them, as well as firearms and ammunition, directly to co-conspirators in Dominica, or to a Miami-based freight forwarding company that then shipped the parcels to co-conspirators in Dominica. The indictment charges St. Louis and Alexander with one count of conspiracy, an offense that carries a maximum term of imprisonment of five years, and one count of conspiracy to violate the Export Control Reform Act, an offense that carries a maximum term of imprisonment of 20 years. The indictment also charges St. Louis with five counts and Alexander with four counts of violating the Export Control Reform Act, an offense that carries a maximum term of imprisonment of 20 years on each count, and St. Louis with two counts and Alexander with one count of smuggling goods from the U.S., and offense that carries a maximum term of imprisonment of 10 years on each count. Following their arrests, St. Louis and Alexander appeared in New Haven and Norfolk, Virginia, respectively, and were released pending trial. U.S. Attorney Avery stressed that an indictment is only a charge and is not evidence of guilt. Charges are only allegations and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt. This investigation is being conducted by the U.S. Department of Commerce, Bureau of Industry and Security; Homeland Security Investigations (HSI); the U.S. Postal Inspection Service; the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); and the Internal Revenue Service – Criminal Investigation Division. HSI Caribbean, the Dominica Customs Excise Division, and the Commonwealth of Dominica Police Force have assisted the investigation. This case is being prosecuted by Assistant U.S. Attorneys Konstantin Lantsman and Sean P. Mahard, and Trial Attorney Yifei Zheng of the National Security Division’s Counterintelligence and Export Control Section. The Justice Department’s Office of International Affairs is providing assistance. This case is being prosecuted through the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. OCDETF identifies, disrupts, and dismantles drug traffickers, money launderers, gangs and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state, and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF .


title: Ironwood Man Sentenced For Possessing Stolen Firearm, Threatening To Kill Victim

component: USAO - Michigan, Western

body_text: MARQUETTE, MICHIGAN — U.S. Attorney for the Western District of Michigan Mark Totten today announced that Robert Lee Reynolds, 28, of Spartanburg, South Carolina, and Ironwood, Michigan, was sentenced for possessing a stolen firearm. U.S. District Court Judge Jane M. Beckering sentenced Reynolds to 120 months in federal prison for possessing a firearm that he stole from a victim in Ironwood, Michigan. “Stopping gun violence before tragedy strikes is critical to preventing senseless violent crimes,” said U.S. Attorney Mark Totten . “I commend our law enforcement partners for their coordinated efforts to keep our communities safe and guns out of the hands of individuals who possess them illegally.” In May 2023, the Ironwood Public Safety Department learned that Reynolds stole a pistol from an individual in Ironwood then threatened to kill that individual. Reynolds later appeared on social media where he recorded himself brandishing a pistol and threatening more people. Investigators eventually found Reynolds and the stolen gun in a vehicle Reynolds was driving in Menominee, Michigan. Reynolds fled from police before turning himself in after a standoff. “Robert Reynolds stole a firearm and used it to threaten and intimidate several people in our community to include the firearm owner. Armed threats can quickly escalate into gun violence. Mr. Reynolds’ arrest quite possibly saved lives,” said ATF Detroit Special Agent in Charge James Deir . “In the end, Mr. Reynolds will have a lot of time in prison to reflect on his poor decisions. Gun theft is wrong. The message should be clear, if you choose to engage in gun violence, you should pack your bags for prison.” The Ironwood Public Safety Department, Gogebic County Sheriff’s Office, Menominee Police Department, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) investigated the case. Assistant U.S. Attorneys Paul Lochner and Jacob Metoxen prosecuted the case. ###


title: New York Man Arrested for Bank Fraud and Identity Theft in Connection with Stolen $810,000 Tax Refund Check

component: USAO - Massachusetts

body_text: BOSTON – A Yonkers, N.Y. man was arrested yesterday in connection with a scheme to steal an $810,000 tax refund by impersonating a corporate executive in Connecticut. Steven Ware, 63, was charged by criminal complaint with one count of bank fraud and one count of aggravated identity theft. Ware was arrested yesterday in Yonkers and following an initial appearance in federal court in New York, was released on conditions. According to charging documents, Ware opened bank accounts in the name of a Connecticut company and one of its managing partners at a credit union in Tyngsborough, Mass. in December 2023. Shortly after opening the account, Ware deposited a United States Treasury check payable to the company and the managing partner for $810,337.68. Once the check cleared, a debit card was allegedly used to withdraw money from the account to buy goods at various retailers in New York, New Hampshire and Massachusetts. Ware allegedly returned to the Tyngsborough credit union several times and wired more than $634,000 of the stolen funds. The charge of bank fraud provides for a sentence of up to 30 years in prison, five years of supervised release and a fine of up to $1,000,000. The charge of aggravated identity theft provides for a mandatory two years in prison, in addition to any sentence imposed for bank fraud, one year of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case. Acting United States Attorney Joshua S. Levy; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Harry Chavis, Jr., Special Agent in Charge of the Internal Revenue Service Criminal Investigation, Boston Field Office; and Ketty Larco-Ward, Inspector in Charge of the U.S. Postal Inspection Service’s Boston Division made the announcement today. Valuable assistance was provided by the Tyngsborough Police Department. Assistant U.S. Attorney Kriss Basil of the Securities, Financial & Cyber Fraud Unit is prosecuting the case. The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.


title: Agawam Tax Preparer Sentenced to Prison for Filing False Tax Returns

body_text: BOSTON – An Agawam tax preparer was sentenced on Sept. 5, 2024 in federal court in Boston for filing false tax returns. Colleen Gruska, 66, was sentenced by U.S. District Court Judge Julia E. Kobick to two months in prison followed by 12 months of supervised release with the first six months to be served in home confinement and to ordered pay $261,102 in restitution to the Internal Revenue Service. In January 2024, Gruska pleaded guilty to four counts of filing false tax returns. Over the course of a decade, Gruska used her tax preparation service to defraud the United States by filing dozens of false tax returns for herself, her relatives, and others. In each of the tax returns, she reported business losses that were either dramatically overstated or were for businesses that did not even exist, resulting in little or no federal income tax owed by the taxpayer. For example, in her own filings, she reported $189,000 in expenses over four years for a house and yard cleaning business despite there being no actual expenses, enabling her to avoid paying $36,079 in taxes. Similarly, for a relative, she filed false tax returns that claimed a non-existent soccer coaching business with expenses totaling $233,561, thus enabling this person to avoid paying $39,599 in taxes. In total, Gruska caused a loss to the IRS of $261,102. Acting United States Attorney Joshua S. Levy and Harry Chavis, Jr., Special Agent in Charge of the Internal Revenue Service Criminal Investigation, Boston Field Office made the announcement today. Assistant U.S. Attorney Steven H. Breslow of the Springfield Branch Office prosecuted the case.


title: Bookkeeper Agrees to Plead Guilty to Tax Evasion and Disability Benefits Fraud

body_text: BOSTON – The former bookkeeper for an electrical and contracting business has been charged with, and has agreed to plead guilty to, concealing income from the Internal Revenue Service (IRS) and stealing disability benefits. David Tetreault, 54, of Attleboro, has agreed to plead guilty to one count of tax evasion, one count of theft of government money and one count of wire fraud. A plea hearing has not yet been scheduled by the Court. According to the charging documents, Tetreault worked as a bookkeeper for a Massachusetts-based electrical contractor between 2015 and 2021. It is alleged that, during those years, Tetreault received wages in cash and used company funds to pay his personal credit card bills. Tetreault allegedly manipulated the company’s accounting records and bank statements to disguise these payments as business expenses. As a result of this alleged conduct, Tetreault underreported his personal income by at least $2.1 million, causing a loss to the IRS of over $600,000. It is also alleged that Tetreault did not report his work for the electrical contractor or his income to the Social Security Administration and submitted false information about his employment and income to the Employees’ Retirement System of Rhode Island (ERSRI). As a result of this alleged conduct, Tetreault collected over $320,000 in Social Security Disability Insurance benefits and ERSRI disability pension benefits to which he was not entitled between 2016 and 2024. The charge of tax evasion provides for a sentence of up to five years in prison, three years of supervised release and a fine of up to $250,000 or twice the gross gain or loss, whichever is greater. The charge of theft of government money provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of up to $250,000. The charge of wire fraud provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case. Acting United States Attorney Joshua S. Levy; Harry Chavis, Jr., Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; and Corwin Rattler, Acting Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division made the announcement today. Assistant U.S. Attorney David M. Holcomb of the Securities, Financial & Cyber Fraud Unit is prosecuting the case. The details contained in the charging documents are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in the court of law.


title: U.S. Attorney’s Office Highlights Success of Drug Distribution Prosecution Efforts in Northern Idaho

component: Drug Enforcement Administration (DEA)

body_text: Three Defendants Sentenced to Over 17 Years in Federal Prison Combined COEUR D’ALENE – U.S. Attorney Josh Hurwit announced the results of three separate drug distribution cases in Northern Idaho today. “The case results announced today reflect stellar work by our prosecutors and staff,” said U.S. Attorney Hurwit. “Together with our law enforcement partners, our office is rising to meet the challenge that drug trafficking poses to communities in North Idaho. The partnerships that drive these cases will continue to make our state a terrible place for drug dealers to do business.” Interstate Methamphetamine Trafficker Sentenced to 92 Months in Federal Prison In one case, Alex Luis Ahumada, 39, of Boardman, Oregon, was sentenced to 92 months in federal prison for conspiracy to distribute methamphetamine. According to court records, Ahumada was a source of pounds of methamphetamine for multiple drug dealers in Idaho. Chief District Judge David C. Nye also ordered Ahumada to serve five years of supervised release following his prison sentence. Ahumada pleaded guilty to the federal charge in June 2024. U.S. Attorney Hurwit thanked the Lewiston Police Department, the Idaho State Police, the Oregon State Police, and the Federal Bureau of Investigation for their collaboration in this investigation. Assistant U.S. Attorney Adam Johnson prosecuted this case. Montana Man Convicted of Trafficking Fentanyl and Methamphetamine Sentenced to More Than 7 Years in Federal Prison In a separate case, Kristopher Andrew Anderson, 46, of Alberton, Montana, was sentenced to 86 months in federal prison for possession with intent to distribute methamphetamine and fentanyl. According to court records, Anderson was involved in trafficking methamphetamine and fentanyl between Washington and Montana, through Idaho. The Defendant was stopped by officers in Shoshone, Idaho, while driving under the influence of fentanyl. While investigating Anderson for driving under the influence, officers located 415 grams of methamphetamine and approximately 5,000 fentanyl pills in his vehicle. Officer also located a firearm. Anderson is a felon and was prohibited from possessing firearms. Chief District Judge David C. Nye also ordered Anderson to serve five years of supervised release following his prison sentence. U.S. Attorney Hurwit commended the work of Shoshone County Sheriff’s Office, the Idaho State Police, and the Drug Enforcement Administration, which led to the charges. Assistant U.S. Attorney Bryce Ellsworth prosecuted this case. Lewiston Man Sentenced to 30 Months for Possession with Intent to Distribute Methamphetamine In another case, Gary Francis Glasser, 61, of Lewiston, was sentenced to 30 months in federal prison for possession with intent to distribute methamphetamine. According to court records, Glasser met another individual who provided him with a satchel containing over 400 grams of methamphetamine in Lewiston. Glasser was subsequently arrested, and a search of his home uncovered indicia of intent to distribute, including a digital scale, several glassine baggies, and multiple ledgers. Chief District Judge David C. Nye also ordered Glasser to serve three years of supervised release following his prison sentence. Glasser pleaded guilty to the charge on May 20, 2024. U.S. Attorney Hurwit commended the work of the Lewiston Police Department, the Idaho State Police, and the Federal Bureau of Investigation for their investigation. Assistant U.S. Attorney Adam Johnson prosecuted this case. ###


title: Crown Point Man Sentenced to 120 Months in Prison

component: USAO - Indiana, Northern

body_text: HAMMOND – Jeremy Dumas, 56 years old, of Crown Point, Indiana, was sentenced by United States District Court Judge Gretchen S. Lund after pleading guilty to Receipt of Child Pornography, announced United States Attorney Clifford D. Johnson. Dumas was sentenced to 120 months in prison and 5 years of supervised release. He was also ordered to pay $21,000 in restitution to the victims of the offense, an assessment of $5,000 that will be paid into a fund dedicated to supporting victims, and an assessment of $10,000 that will be paid into the Child Pornography Victims Reserve. According to documents in the case, from November 1, 2016 through March 16, 2023, Dumas knowingly received and possessed 977 images and 614 video files of child sexual abuse material, including images depicting sadistic or masochistic conduct and the sexual abuse of infants and toddlers. This case was investigated by Homeland Security Investigations with assistance from the Crown Point Police Department, the Indiana Internet Crimes Against Children Task Force, the Indiana State Police, and the Indiana State Police Digital Forensics Unit. The case was prosecuted by Assistant United States Attorneys Nadia D. Wardrip and Steven J. Lupa. The case was brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov .


title: Puerto Rico Man Sentenced for Destroying Wetlands Including in the Jobos Bay National Estuarine Research Reserve

component: Energy and Natural Resources Division

body_text: A Puerto Rico man was sentenced today to 14 months in prison, three years of supervised release and a $10,000 fine for the destruction and filling of wetlands in violation of the Clean Water Act. According to court documents, between January 2020 and December 2023, Awildo Jimenez-Mercado, 41, removed mangroves from wetlands within and around the Jobos Bay National Estuarine Research Reserve (JBNERR) in Las Mareas, Puerto Rico. Despite lacking a permit, he filled the area with quarry material and built concrete structures atop. Jimenez-Mercado then built hospitality rental homes and an in-ground pool on the land, as well as a dock extending into the Caribbean Sea. He then named the property “Hidden Paradise” and rented the units online as short-term vacation properties for up to $495 per night. Jimenez-Mercado was indicted on Dec. 6, 2023, and pleaded guilty on May 3. Mangrove wetlands, such as those destroyed by Jimenez-Mercado, are critical to local infrastructure, economies and ecosystems because they can limit damage from flooding and storms, reduce pollution and provide habitat for numerous marine and endangered species. The JBNERR was designated as a reserve in 1981 to protect the wetlands and study the biological and societal impacts of estuarine habitat, as well as provide recreation and educational opportunities to local communities. The reserve is home to the endangered brown pelican, peregrine falcon, hawksbill turtle and West Indian manatee. Congress enacted the Clean Water Act in 1972 to protect and maintain the integrity of the waters of the United States. It prohibits the discharge of any pollutant and fill material into waters of the United States except when a permit is obtained from the United States. This case is part of an ongoing investigation into the destruction of wetlands in Puerto Rico. Previously charged individuals include Luis Enrique Rodriguez-Sanchez, sentenced in June; Pedro Luis Bones-Torres, scheduled to be sentenced on Nov. 7; and Rafael Carballo-Diaz and Nathaniel Hernandez-Claudio , who are scheduled to be sentenced on Sept. 13. Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division and U.S. Attorney W. Stephen Muldrow for the District of Puerto Rico made the announcement. The Environmental Protection Agency’s Criminal Investigation Division and the FBI investigated the case, with support from the Puerto Rico and U.S. Virgin Islands Environmental Crimes Task Force . Senior Trial Attorney Patrick M. Duggan of the Environment and Natural Resources Division’s Environmental Crimes Section and Assistant U.S. Attorney Seth A. Erbe for the District of Puerto Rico are prosecuting the case.


title: Luzerne County Man Sentenced To 60 Months In Prison For Possessing A Firearm

component: USAO - Pennsylvania, Middle

body_text: SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that on September 10, 2024, U.S. District Court Judge Robert D. Mariani sentenced Jeremy Anderson, age 28, of West Hazleton, Pennsylvania, to a term of 60 months’ imprisonment for possession of a firearm in furtherance of a drug trafficking crime. According to United States Attorney Gerard M. Karam, Anderson pleaded guilty to possessing a firearm in furtherance of drug trafficking on April 3, 2024. Anderson was the target of a DEA investigation during which he sold heroin and fentanyl on three occasions. Agents obtained a federal search warrant, and on July 15, 2021, searched Anderson’s West Hazleton residence, vehicle, and a storage unit. The search resulted in the seizure of 10 grams of fentanyl; a loaded Ruger 9 mm pistol; and $28,457. Anderson was interviewed by agents and admitted selling “pre-packaged bundles” of narcotics to a “short list of customers.” This case was jointly investigated by the DEA and the Hazleton Police Department. Assistant United States Attorney Todd K. Hinkley prosecuted the case. This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin and other opioids. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin and opioid traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state, and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses. This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. # # #


title: Civil settlement resolves allegations of record-keeping violations against Savannah-area weight loss physician

body_text: SAVANNAH, GA: A physician who operates weight-loss clinics in the Savannah area has agreed to pay civil penalties and to accept increased oversight to resolve allegations that he violated the Controlled Substances Act. Dr. Donald Lyle Gates , who operates three Savannah-area Scale Solutions clinics, reached a settlement with the Southern District of Georgia U.S. Attorney’s Office, said Jill E. Steinberg, U.S. Attorney for the Southern District of Georgia, that requires Gates to pay a civil penalty of $100,000. An agreement with the Drug Enforcement Administration also allows Dr. Gates to maintain DEA registrations to dispense controlled substances while abiding by specific conditions that include a two-year term of increased oversight by DEA. “Those with the authority to dispense potentially addictive drugs are expected to balance that power with the responsibility to provide adequate and trustworthy recordkeeping,” said U.S. Attorney Steinberg. “Recordkeeping requirements serve a critical role to ensure that controlled substances are not diverted for illegal purposes.” Dr. Gates operates Georgia weight-loss clinics called Scale Solutions in Savannah, Pooler, and Hinesville, and previously operated a clinic in Bluffton, S.C. The United States, through the U.S. Attorney’s Office and the Drug Enforcement Administration, alleged that Gates failed to keep and maintain records for the prescription weight-loss drugs phentermine and phendimetrazine, and dispensed those drugs in violation of the Controlled Substances Act. DEA Diversion Investigators conducted on-site inspections of Dr. Gates’ offices and determined, among other findings, that the offices did not have complete and accurate records of controlled substances for which Dr. Gates was responsible, including inventories, documents memorializing his receipt of controlled substances, their distribution, and their dispensation. Investigators alleged that on more than one occasion, Dr. Gates failed to keep controlled substances at the locations registered with DEA and instead transferred those controlled substances to his home. The Controlled Substances Act creates a closed system that tracks controlled substances from manufacture through distributor, to the ultimate end-user, allowing the DEA to monitor the flow of controlled substances in the United States at every juncture. When a dispensing practitioner fails to maintain complete and accurate records, the system is at risk for illegal diversion into the community. The civil settlement and the Memorandum of Agreement are neither an admission of liability by Dr. Gates, nor a concession by the United States that its claims are not well-founded. “Diverted and misused prescription medications pose a grave threat to public health,” said Robert J. Murphy, Special Agent in Charge of the DEA Atlanta Division. “Therefore, it’s expected and required that physicians and other trusted medical providers maintain meticulous records of these controlled substances to prevent prescription drug abuse.” The case was investigated by the Drug Enforcement Administration, and the civil settlement was negotiated by Assistant U.S. Attorney Bradford C. Patrick.


title: Jackson Man Pleads Guilty to Possession of a Firearm by a Convicted Felon

body_text: Jackson, Miss. – A Jackson man pled guilty to possession of a firearm by a convicted felon. According to court documents, Joshua Hart, 42, was found in possession of a firearm following a traffic stop in Jackson on a vehicle being driven erratically and suspiciously. Hart, a passenger in the vehicle, had a previous felony conviction for aggravated robbery out of the state of Texas and an outstanding warrant at the time of the stop. Ammunition was found in Hart’s pant pocket, and the other two passengers in the vehicle informed law enforcement that Hart passed a firearm to the middle seat passenger when the officer initiated the stop. As a convicted felon, it is contrary to federal law for Hart to possess ammunition or any firearm. Hart will be sentenced on December 12, 2024, and faces a maximum penalty of 10 years in prison. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. U.S. Attorney Todd W. Gee of the Southern District of Mississippi and Special Agent in Charge Robert Eikhoff of the Federal Bureau of Investigation made the announcement. The FBI and the Jackson Police Department are investigating the case. Assistant U.S. Attorney Matt Allen is prosecuting the case. This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.


title: Federal Authorities Seize Over 350 Website Domains Used to Import Illegal Switches and Silencers from China

body_text: BOSTON – Federal authorities in Boston seized more than 350 internet domains that were allegedly used for the illegal importation of switches and silencers from China. Switches are parts designed to convert semiautomatic pistols into fully automatic machineguns and silencers are devices used to suppress the sound of a firearm when discharged. Possession of these items and their importation from certain countries, including China, are prohibited under the National Firearms Act (NFA). According to the court documents, in August 2023, federal authorities began targeting multiple websites, businesses and individuals selling, offering for sale, importing and exporting machinegun conversion devices in violation of federal law. It is alleged that law enforcement engaged in undercover purchases from the website domains promoting the sale of NFA-prohibited items – confirming that the domains were being used to sell illegal switches and silencers. The contraband items were then allegedly shipped from China to government-controlled mailboxes in the United States with false descriptions of their contents – such as “necklace” and “toys” – in an effort to conceal the alleged illegal importation. “Our office remains committed to protecting our communities from the dangers posed by illegal firearms and firearm accessories, wherever the evidence takes us,” said Acting United States Attorney Joshua S. Levy. “The seizure of these domains is a critical step in disrupting the flow of dangerous contraband that threatens public safety. Those who attempt to exploit online platforms to traffic in highly lethal firearm parts will be held accountable. We will continue to pursue and dismantle these illicit networks wherever they operate to uphold the integrity of our laws and safeguard our communities.” “These websites represent a large-scale, organized effort to import illegal switches and silencers that turn ordinary firearms into deadly automatic weapons. HSI has worked diligently with our partners to systematically dismantle this network of websites to uphold our nation’s import laws and to preserve public safety,” said Special Agent in Charge Michael J. Krol for Homeland Security Investigations in New England. “HSI cyber investigations work to keep illegal switches and silencers out of the hands of criminals who use them to commit violence and facilitate crime in our communities.” “The results of this investigation have, to date, resulted in the seizure of over 700 devices which would covert a firearm into a machine gun, 87 illegal suppressors, 59 handguns, 36 long guns, as well as the seizure of 355 websites which were used to facilitate the trafficking of these items. The proliferation of readily available devices which allow the illegal manufacturing of machine guns is a plague on our communities. The Postal Inspection Service is committed to working with our state and federal partners to identify those who use the Postal Service to traffic these weapons, remove these illicit items from the mail, and increase the safety of our communities and the Postal Service employees who serve them,” said Ketty Larco-Ward, Inspector in Charge, U.S. Postal Inspection Service, Boston Division It is further alleged that many of the website domains trafficked counterfeit goods and unlawfully used the Glock, Inc. trademark by offering purported “Glock” switches for sale. In reality, however, Glock, Inc. has never manufactured switches. Federal authorities ultimately established probable cause to seize for forfeiture more than 350 domains used in connection with the scheme to import switches and silencers in violation of the NFA and laws prohibiting trafficking in counterfeit goods. Visitors to the websites will now be directed to a landing page indicating that the domain has been seized: Acting U.S. Attorney Levy, HSI SAC Krol and USPIS INC Larco-Ward made the announcement today. Valuable assistance in the investigation was provided by U.S. Customs and Border Protection; Bureau of Alcohol, Tobacco, Firearms & Explosives; and the Massachusetts State Police. Glock, Inc. fully cooperated with the government’s investigation. Assistant U.S. Attorneys Alexandra W. Amrhein of the Asset Recovery Unit and Luke A. Goldworm of the Major Crimes Unit obtained the seizure warrants.


title: Par Funding Principals Plead Guilty to RICO Conspiracy, Securities Fraud, Obstruction of Justice, Related Charges

component: USAO - Pennsylvania, Eastern

body_text: PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Joseph LaForte, 53, of Philadelphia, Pennsylvania, and his brother James LaForte, 47, of New York, New York, entered pleas of guilty today before United States District Court Judge Mark A. Kearney to racketeering conspiracy, securities fraud, and related crimes in connection with their operation of a fraudulent investment vehicle known as Complete Business Solutions Group Inc. d/b/a Par Funding (“Par Funding”), which is alleged to have generated over $100 million in illegal proceeds for the defendants to the detriment of Par Funding’s numerous investors, many who live in the Philadelphia region. Joseph LaForte operated Par Funding’s day-to-day operations and functioned as its president and CEO, while his younger brother James LaForte worked in sales and collections and had managerial authority. In July 2020, the Securities and Exchange Commission (“SEC”) intervened and replaced the LaFortes with a court-ordered receivership that has operated Par Funding since that time. Joseph LaForte, who has prior felony convictions including for a financial fraud, also pleaded guilty to tax crimes, perjury, and obstruction of justice for his role in aiding and abetting James LaForte’s violent assault on one of the Par Funding receivership’s Philadelphia attorneys who was helping to seize LaForte family assets. In addition, Joseph LaForte pleaded guilty to a gun possession charge for firearms that were found in his former residence during the execution of a search warrant. James LaForte also pleaded guilty to the extortionate collection of credit from a Par Funding merchant customer, as well as obstruction of justice for assaulting the Philadelphia attorney and retaliation for threatening several government witnesses. The government and the defendants have agreed that defendant Joseph LaForte will serve between 13½ to 15½ years’ imprisonment and defendant James LaForte will serve 110 to 137 months’ (~9 to 11½ years’) imprisonment, provided those ranges are accepted by the district court at the time of sentencing. Defendant Joseph LaForte has also agreed to pay millions of dollars in restitution to the Internal Revenue Service in connection with his tax conviction, and to forfeit his rights to a private jet and an investment account seized by the government. At the plea hearing, Judge Kearney accepted the guilty plea for Joseph LaForte and conditionally accepted the guilty plea for James LaForte. In February, the defendants had been charged with violating the Racketeer Influenced and Corrupt Organizations Act (RICO) in a second superseding indictment, which also charged various other crimes included in a previous superseding indictment, including securities fraud, wire fraud, extortionate collection of debt, obstruction of justice, witness tampering, and witness retaliation, tax crimes, and perjury. Per the indictment, as part of their fundraising efforts, these defendants and their conspirators caused false and misleading information to be conveyed to investors regarding various issues, including: Joseph LaForte’s true name, his role at Par Funding, and his criminal history; Par Funding’s underwriting process; the diversity of the company’s MCA portfolio; Par Funding’s default rate; Par Funding’s financial success and profitability; the company’s insurance; and the defendants’ self-dealing. For instance, although Joseph LaForte operated Par Funding and referred to it as his business, he concealed this ownership and control by using his wife as his nominee. Joseph LaForte also used several aliases, such as “Joe Mack,” while working at the company. It is alleged that Joseph LaForte, James LaForte, and their conspirators engaged in this deception to conceal Joseph LaForte’s true role as the person operating the company and his significant criminal history from investors. The indictment also alleged that Par Funding’s principal means of generating income was to “advance” money to businesses that were in need of short-term financing at high rates of return. The indictment alleged that the enterprise, including James LaForte, used threats of violence to collect money from customers whose payments were overdue. James LaForte has pleaded guilty to threatening one particular Par Funding customer, telling him that he must repay the company immediately because James LaForte was not to be messed with and had previously torched people’s cars and kicked people’s teeth in. The indictment also alleged that Joseph LaForte and James LaForte engaged in obstruction of justice in late February 2023 in connection with James LaForte’s physical assault of one of the Par Funding receivership’s attorneys outside of the attorney’s office in Center City Philadelphia, sending the attorney to the hospital and causing serious bodily injury. Several days later, defendant James LaForte is alleged to have made threatening phone calls to several government witnesses and their family members, including Perry Abbonizio, who James LaForte knew had recently pleaded guilty to conspiring with Joseph LaForte in connection with the fraudulent operation of Par Funding. Finally, Joseph LaForte and others were also charged with committing a variety of tax crimes involving the proceeds he received from Par Funding, including hiding tens of millions of taxable income via false entries on business and personal federal tax returns and pretending to live in Florida to avoid paying Pennsylvania income tax. In April 2024, LaForte’s wife, Lisa McElhone, pleaded guilty in connection with the Florida residency scheme. It was further alleged that Joseph LaForte failed to report millions of dollars in cash kickbacks that he personally received from a Par Funding merchant customer, and by regularly paying cash wages to Par Funding employees but not withholding taxes from these wages or reporting them to the IRS. “The LaFortes’ corrupt enterprise was built on a foundation of lies, threats, and incredible greed,” said U.S. Attorney Romero. “The breadth of the criminal activity here is astounding – from financial fraud to physical violence, obstruction of justice, and more. On behalf of those victimized, justice demands that these perpetrators be held accountable.” “Investigating complex financial crimes has been a priority of the FBI since our beginning,” said Wayne A. Jacobs, Special Agent in Charge of FBI Philadelphia. “The defendants ran their purported business as a criminal enterprise, conducting securities fraud, extortion, and obstruction of justice, all to further their financial gain. This case exemplifies the FBI and our partners’ continued commitment to vigorously pursue these criminals who orchestrate these schemes and bring them to justice.” “IRS-Criminal Investigation is proud to have provided its financial expertise in this investigation,” said Amy MacNeely, Acting Special Agent in Charge of IRS-Criminal Investigation. “We, along with our law enforcement partners and the Department of Justice, will continue to aggressively investigate individuals who engage in money laundering, tax fraud, or other types of white-collar crimes.” “The guilty pleas in this case hold the defendants accountable for operating a fraudulent investment vehicle that allegedly generated over $100 million illegally, and caused financial harm to numerous investors,” said Patricia Tarasca, Special Agent in Charge of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC OIG), New York Region. “The FDIC OIG is pleased to join our law enforcement colleagues in announcing this guilty plea, and we remain committed to investigating and bringing to justice those who commit such egregious acts that threaten investors and the safety and soundness of our Nation's financial system.” The case was investigated by the FBI, Internal Revenue Service-Criminal Investigation, and the Federal Deposit Insurance Corporation Office of Inspector General and prosecuted by Assistant United States Attorneys Matthew Newcomer, Samuel Dalke, Eric Gill, Patrick J. Murray, and former Assistant U.S. Attorney Alexandra Lastowski, as well as Assistant U.S. Attorney John J. Boscia and DOJ Trial Attorney Ezra Spiro on the tax portion of the prosecution. The SEC in Florida investigated and litigated the civil securities fraud charges, which formed the basis of a portion of the criminal prosecution.