title: Glendale Man Sentenced to 10 Years in Federal Prison for Participating in Darknet Drug Trafficking Organization

body_text: LOS ANGELES – A Glendale man was sentenced today to 120 months in federal prison for participating in a darknet-based organization – known as “NoLove” – that trafficked methamphetamine and Ecstasy both inside and outside of the United States and for laundering the outfit’s drug proceeds by exchanging bitcoin into U.S. dollars. Arbi Setaghaian Sangbarani, 41, was sentenced by United States District Judge André Birotte Jr. At the conclusion of a five-day trial in December 2023, a jury found Sangbarani guilty of one count of conspiracy to distribute and possess with intent to distribute methamphetamine and MDMA, commonly known as Ecstasy. The jury also found Sangbarani guilty of one count of money laundering conspiracy and two counts of money laundering. From at least April 2019 to May 2020, Sangbarani was a member of a darknet drug trafficking organization that sold, packaged, and mailed methamphetamine and MDMA to numerous customers in the United States and internationally. He conspired with several members of the darknet drug trafficking organization known as “NoLove.” NoLove operated for around a year and a half and shipped drugs internationally and across the United States. As part of the conspiracy to distribute methamphetamine and MDMA, Sangbarani and his co-conspirators obtained methamphetamine and MDMA from sources of supply; stored methamphetamine and MDMA to be packaged at a residence in the Sunland-Tujunga area of Los Angeles; managed the sales of meth and MDMA on the dark web in exchange for virtual currency; and packaged meth and MDMA for distribution to customers who ordered those drugs on the darknet. Once the packages were complete, Sangbarani and his co-conspirators mailed parcels containing meth and MDMA to customers who ordered the drugs on the dark web. Sangbarani also conspired to launder the illicit proceeds of the drug trafficking operation. One of Sangbarani’s accomplices collected bitcoin as proceeds from the sale of drugs on the dark web. That co-conspirator then transferred a portion of those virtual currency proceeds to Sangbarani. Sangbarani exchanged the bitcoin into U.S. dollars, transferred the dollars to his bank account, and withdrew the proceeds as cash. This was the first time the government has introduced evidence involving cryptocurrency tracing for dark web markets in a jury trial in this district. In total, federal prosecutors have secured eight convictions in connection with this conspiracy. In February 2020, at the Sunland-Tujunga residence, law enforcement seized found approximately 6,701 suspected MDMA pills and approximately 22.2 kilograms (48.9 pounds) of methamphetamine from a shed on the property. The FBI, Homeland Security Investigations, and the United States Postal Inspection Service investigated this matter. Assistant United States Attorneys Joseph S. Guzman and Alexandra M. Michael, both of the General Crimes Section, prosecuted this case.


title: Maryland Man Sentenced to 120 Months in Prison for Setting Fire to U.S. Supreme Court Police Cars on Capitol Hill

component: Federal Bureau of Investigation (FBI)

body_text: WASHINGTON – Cody Michael Tarner, 26, of Hagerstown, Maryland, was sentenced today to 10 years in prison for pouring gasoline over several U.S. Supreme Court Police cars on Capitol Hill and setting one ablaze, announced U.S. Attorney Matthew M. Graves, FBI Special Agent in Charge Sanjay Virmani of the FBI Washington Field Office’s Counterterrorism Division, and Chief Pamela A. Smith of the Metropolitan Police Department. Tarner pleaded guilty on January 9, 2024, in federal court to a charge of arson before U.S. District Court Judge Royce C. Lamberth. In addition to the prison term, Judge Lamberth ordered Tarner to serve three years of supervised release and pay restitution in the amount of $32,371.42. According to the government’s evidence, on July 15, 2020, Tarner drove onto the United States Supreme Court’s property located on First Street Northeast, Washington D.C., and parked his vehicle in an employee-only parking spot. Tarner got out of his car and walked around the Supreme Court property. Tarner then returned to his car and pulled out a red gas can. At 1:48 p.m., Tarner was observed on security camera footage pouring gasoline onto three unmarked Supreme Court Police vehicles parked in Supreme Court employee-only parking spaces. The unmarked vehicles had emergency police lights visible from the outside of the vehicles, and one of the vehicles had emergency police lights on the roof of the vehicle. While pouring the gasoline on the vehicles, some of it splashed onto Tarner’s clothing. Tarner lit one of the vehicles on fire. The result was a violent ignition of the gasoline. Tarner was engulfed in flames resulting in severe burns and injuries to himself. The fire seriously damaged two of the police vehicles, one of which was a total loss. Tarner admitted to starting the fire with unleaded gas he had bought in Pennsylvania for that purpose. The investigation revealed that Tarner had several prior encounters with law enforcement in which he expressed anti-government and militia extremist ideologies. Tarner also claimed to be the leader of an identified militia group. This case was investigated by FBI Joint Terrorism Task Force, the Supreme Court of the United States Police – Protective Intelligence Unit, and the Metropolitan Police Department. It was prosecuted by Assistant U.S. Attorney Emory V. Cole and Attorney James Peterson.


title: St. George Businessman Sentenced to 29 Months’ Imprisonment for Fraudulently Receiving Over $685,000 in COVID-Relief Funds

component: USAO - Utah

body_text: ST.GEORGE, Utah – Bradford, Leland Fishback, 40, of St. George was sentenced today to over two years’ imprisonment, three years’ supervised release and ordered by the court to pay $685,845.05 in restitution. The sentence, imposed by U.S. District Court Chief Judge Robert J. Shelby, comes after Fishback admitted to fraudulently obtaining government funds from programs intended to help employees and small businesses during the COVID-19 pandemic. According to court documents and statements made at the change of plea hearing, Fishback pled guilty in September 2023 to wire fraud, money laundering, and false claims. Fishback admitted that from 2020 to 2022, he devised a scheme to defraud and obtain money by fraudulently submitting requests for Employee Retention Tax Credits, by filing 22 Forms 941s with the Internal Revenue Service on behalf of his four businesses: Circle CPA; Fishback Tax; Snowflake Shavery; and World Horizons Outreach. As a result of his fraudulent filings, Fishback received $482,058.46 from the IRS. Additionally, Fishback fraudulently submitted at least seven Paycheck Protection Program (PPP) loan applications to the Small Business Administration on behalf of his four businesses. Fishback’s false statements about the entities’ number of employees, wages paid, gross receipts, and profit and loss resulted in him receiving $77,629 in PPP loans. Fishback also admitted to submitting at least five applications for Economic Injury Disaster (EID) loans to the Small Business Administration of behalf of his four business. His false applications led to him receiving $137,573. Fishback further admitted to submitting false applications for unemployment benefits to the Nevada Department of Employment, Training, and Rehabilitation. His false statements led to him receiving $45,831 in unemployment benefits. In total, Fishback’s false statements resulted in him claiming $903,882.88 and receiving $685,845.05 in COVID-relief funds. The case was investigated jointly by the Internal Revenue Service, Criminal Investigation (IRS-CI) and the FBI Salt Lake City Field Office. Assistant United States Attorney Stephen Dent and Jennifer K. Muyskens of the U.S. Attorney’s Office for the District of Utah prosecuted the case.


title: Fort Belknap man admits assaulting two women on Fort Belknap Indian Reservation

body_text: GREAT FALLS — A man accused of firing a pistol at two women in a housing area on the Fort Belknap Indian Reservation admitted to an assault charge today, U.S. Attorney Jesse Laslovich said. Gilbert Raymond Martinez, 32, of Fort Belknap and North Dakota, pleaded guilty to assault with a dangerous weapon. Martinez faces a maximum of 10 years in prison, a $250,000 fine and three years of supervised release. Chief U.S. District Judge Brian M. Morris presided. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. The court set sentencing for Sept. 19. Martinez was detained pending further proceedings. In court documents, the government alleged on May 17, 2021, Martinez fired a 9mm pistol at two women in the Newtown Housing area of the Fort Belknap Indian Reservation. The second woman told the responding officer that if she had not moved out of the way, the bullet would have hit her. The U.S. Attorney’s Office is prosecuting the case. The FBI, Fort Belknap Police Department and Blaine County Sheriff’s Office conducted the investigation. XXX


title: U.S. ATTORNEY GREGORY J. HAANSTAD RECOGNIZES NATIONAL POLICE WEEK

component: USAO - Wisconsin, Eastern

body_text: In honor of National Police Week, United States Attorney Gregory J. Haanstad recognizes the service and sacrifice of federal, state, local, and Tribal law enforcement. The week will be observed Saturday, May 11 through Friday, May 17, 2024. “As our country recognizes National Police Week, the Justice Department joins families and communities in remembering the members of the law enforcement community who made the ultimate sacrifice protecting the public,” said Attorney General Merrick Garland. “Policing is difficult and dangerous, yet time and time again, law enforcement officers answer the call, showing up for their communities when they are needed the most. Their devotion to duty is matched only by that of their loved ones who make daily sacrifices to support them. The Justice Department is committed to doing everything in our power to help provide our law enforcement partners with the resources they need to carry out their noble work on behalf of the public.” “Every day, brave men and women across the Eastern District of Wisconsin answer the call to serve and protect our communities as members of federal, state, local, and tribal law enforcement,” stated U.S. Attorney Haanstad. “Their task is difficult, dangerous, and critically important. My colleagues and I are incredibly grateful for the sacrifices made by these individuals and their loved ones. Throughout this week, we have been honoring men and women in Wisconsin who have been injured or lost their lives in the line of duty, both in public settings and through private remembrances focused on the specific circumstances of individual officers. We must always remember, honor, and support these officers and their families.” In 1962, President Kennedy issued the first proclamation for Peace Officers Memorial Day and National Police Week to remember and honor law enforcement officers for their service and sacrifices. Peace Officers Memorial Day, which every year falls on May 15, specifically honors law enforcement officers killed or disabled in the line of duty. Each year, during National Police Week, our nation celebrates the contributions of law enforcement from around the country, recognizing their hard work, dedication, loyalty, and commitment to keeping our communities safe. On Monday, May 13, the names of more than 280 officers killed in the line of duty in 2024 who have been added to the wall at the National Law Enforcement Officers Memorial were read during a Candlelight Vigil. To view a recording of the livestream of this event, visit https://nleomf.org/memorial/programs/national-police-week-2024/candlelight-vigil/ . To learn more about National Police Week and the virtual candlelight vigil, please visit www.policeweek.org . # # # For Additional Information Contact: Public Information Officer Kenneth.Gales@usdoj.gov 414-297-1700 Follow us on Twitter


title: Three Defendants Sentenced for Federal Civil Rights Conspiracy and Freedom of Access to Clinic Entrances Offenses

body_text: WASHINGTON – A U.S. District Court judge today sentenced three of 10 defendants who conspired to create a blockade at a Washington, D.C. reproductive health care clinic to prevent the clinic from providing, and patients from receiving, reproductive health services. The announcement was made by U.S. Attorney Matthew M. Graves, Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division, and FBI Special Agent in Charge David J. Scott of the Washington Field Office’s Criminal and Cyber Division. U.S. District Judge Colleen Kollar-Kotelly sentenced Lauren Handy, 30, of Alexandria, Virginia, to 57 months in prison and three years of supervised release. John Hinshaw, 69, of Levittown, New York, received 21 months incarceration and three years of supervised release. William Goodman, 54, of Bronx, New York, was sentenced to 27 months and three years of supervised release. All three were convicted by a jury of civil rights conspiracy and Freedom of Access to Clinic Entrances (FACE) Act violations. Four additional defendants will be sentenced tomorrow and two more in the coming weeks. Another of the defendants, the only one to plead guilty, Jay Smith, 34, of Freeport, New York, was sentenced to 10 months in prison and three years of supervised release in March 2023. “These defendants conspired to use force to prevent fellow citizens from exercising rights protected by law,” said U.S. Attorney for the District of Columbia Matthew Graves. “People cannot resort to using force and intimidation to prevent others from engaging in lawful activity simply because they disagree with the law. The Department was founded to protect the civil rights of our citizens and remains steadfast in this mission.” “Violence has no place in our national discourse on reproductive health. Using force, threatening to use force or physically obstructing access to reproductive health care is unlawful,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “As we mark the 30th anniversary of the FACE Act, it’s important that we not lose sight of the history of violence against reproductive health care providers including the murder of Dr. David Gunn in Florida – tragic and horrific events that led to passage of the law. The Justice Department will continue to protect both patients seeking reproductive health services and providers of those services. We will hold accountable those who seek to interfere with access to reproductive health services in our country.” “As evidenced by today’s sentencings, the FBI and our judicial system will not tolerate the obstruction of civil rights,” said Assistant Director in Charge David Sundberg. “The FBI will continue to investigate FACE Act violations in all jurisdictions, so patients and providers can exercise their right to receive or provide lawful reproductive health care without the threat of violence or intimidation.” As the evidence at trial showed, the defendants, engaged in a conspiracy to create a blockade at the reproductive health care clinic to prevent the clinic from providing, and patients from receiving, reproductive health services. As part of the conspiracy, Handy, Hinshaw, and Goodman, traveled to Washington, D.C. from various northeast and midwestern states, to meet with Handy and participate in a clinic blockade that was directed by Handy and was broadcast on Facebook. According to the evidence, Handy, Hinshaw, and Goodman – along with their co-conspirators – forcefully entered the clinic and set about blockading two clinic doors using their bodies, furniture, chains, and ropes. Once the blockade was established, their activities were live-streamed. The evidence also showed that the defendants violated the FACE Act by using a physical obstruction to injure, intimidate and interfere with the clinic’s employees and a patient, because they were providing or obtaining reproductive health services. DEFENDANTS NAME AGE GUILTY OF SENTENCE Lauren Handy Alexandria, VA 30 Found Guilty on August 29, 2023, of Felony Conspiracy Against Civil Rights and Violation of the Freedom of Access to Clinic Entrances (FACE) Act Sentenced May 14, 2024, to 57 Months Incarceration and Three Years of Supervised Release John Hinshaw Levittown, NY 69 Found Guilty August 29, 2023, of Felony Conspiracy Against Civil Rights and Violating the FACE Act Sentenced May 14, 2024, to 21 Months Incarceration and Three Years of Supervised Release William Goodman Bronx, NY 54 Found Guilty August 29, 2023, of Felony Conspiracy Against Civil Rights and Violating the FACE Act Sentenced May 14, 2024, to 27 Months Incarceration and Three Years of Supervised Release Jay Smith Freeport, NY 34 Pleaded Guilty March 1, 2023, to Violating the FACE Act Sentenced Aug. 17, 2023, to 10 Months Incarceration and Three Years of Supervised Release Jonathan Darnel Arlington, Va. 42 Found Guilty September 15, 2023, of Felony Conspiracy Against Civil Rights and Violating the FACE Act Sentencing Scheduled for May 15, 2024 Jean Marshall Kingston, Mass. 74 Found Guilty September 15, 2023, of Felony Conspiracy Against Civil Rights and Violating the FACE Act Sentencing Scheduled for May 15, 2024 Joan Bell Montague, NJ 76 Found Guilty September 15, 2023, of Felony Conspiracy Against Civil Rights and Violating the FACE Act Sentencing Scheduled for May 15, 2024 Herb Geraghty Pittsburgh, Pa 27 Found Guilty August 29, 2023, of Felony Conspiracy Against Civil Rights and Violating the FACE Act Sentencing Scheduled for May 15, 2024 Paula ‘Paulette’ Harlow Kingston, MA 75 Found Guilty Nov. 16, 2023, of Felony Conspiracy Against Civil Rights and Violating the FACE Act Sentencing Scheduled for May 31, 2024 Heather Idoni Linden, Mich. 59 Found Guilty August 29, 2023, of Felony Conspiracy Against Civil Rights and Violating the FACE Act Sentencing Scheduled for May 21, 2024 This case was investigated by the FBI’s Washington Field Office, with valuable assistance from the Metropolitan Police Department and the FBI’s Pittsburgh Field Office. It was prosecuted by the Justice Department’s Civil Rights Division and the Fraud, Public Corruption and Civil Rights Section of the U.S. Attorney’s Office for the District of Columbia. The U.S. Attorneys’ Offices for the District of New Jersey, District of Massachusetts, Eastern District of Michigan, Eastern District of New York, and Southern District of New York; and FBI Field Offices in Newark, New York City, Boston, and Detroit provided valuable assistance.


title: Thirteen people indicted in drug trafficking conspiracy involving fentanyl, methamphetamine, and cocaine

component: USAO - Washington, Western

body_text: Seattle – Thirteen people indicted in a significant drug trafficking investigation are being sought by law enforcement with 10 of them in custody tonight, announced U.S. Attorney Tessa M. Gorman. The defendants are named in three different indictments for a drug trafficking scheme. Two additional defendants were arrested today on criminal complaints. “These defendants were brazenly bringing large loads of drugs to western Washington and didn’t hesitate to arm themselves with high-powered firearms,” said U.S. Attorney Gorman. “Even after law enforcement seized the drugs in various traffic stops in Oregon and Washington, they were not deterred.” The lead indictment names ten members of the conspiracy to distribute controlled substances, including fentanyl, methamphetamine, cocaine, and alprazolam. Lead defendant Hector Duran Aldaco, 23, of Federal Way, Washington is also charged with using a firearm in relation to a drug trafficking crime. Others named in the indictment include: Damian Pina-Raymundo, 19, of Enumclaw, Washington Daniel Moreno, 24, of Federal Way, Washington Rogelio Pena, 21, of Tacoma David Padilla, 22, of Kent, Washington Neldin Licona Rivera, 33, of Seattle Sebastian Esquivel Rojas, 20, of Federal Way, Washington A second indictment charges Salina Rose Atsemet, 26, of Renton, Washington for possession of cocaine with intent to distribute it for a seizure on February 27, 2024, where one kilo of cocaine and two firearms were taken by law enforcement. In a third indictment, Brian Axel Pedraza Cisneros, 20, and Jose Rodolfo Aguilar Cortes, 21, both of Federal Way, Washington, are indicted for a conspiracy to distribute controlled substances for a seizure of 14 kilos of cocaine and one firearm on March 24, 2024, in Lewis County. The indictments call for forfeiture of items linked to the criminal conduct including firearms that were seized in the case. In the investigation prior to the arrests today, law enforcement seized: 59 kilograms of fentanyl pills, 81 kilograms of methamphetamine, 21 kilos of cocaine and eleven firearms. Two additional defendants who were involved in the drug trafficking activity were arrested on criminal complaints today: Brian Garcia Lopez, 23, of Kent, Washington and Otis Lee Dew, 25, of Puyallup, Washington Today alone law enforcement seized an additional 12+ kilograms of methamphetamine, more than 14,000 fentanyl pills, a half-kilogram of cocaine and 42 firearms. “Drugs and guns are a dangerous combination and this group had large amounts of both, posing a grave threat to Western Washington, “said David. F. Reames, Special Agent in Charge, DEA Seattle Field Division. “The Drug Enforcement Administration is thankful to our Federal, state, and local partners who worked with us tirelessly on this case to safeguard the lives of our community endangered by this group.” “Today’s enforcement action demonstrates the strength of partnerships around the region in keeping our communities safe.” said Richard A. Collodi, Special Agent in Charge of the FBI’s Seattle field office. “It’s satisfying to know the illegal drugs and weapons seized are now off the streets. The FBI and our partners will continue investigating these cases and holding those responsible accountable.” The charges contained in the indictments and criminal complaints are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law. This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF . This case was investigated by the Drug Enforcement Administration (DEA), FBI, Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), Seattle Police Department, Oregon State Police, Portland Police Department, California Highway Patrol, the Los Angeles Strike Force, U.S. Customs and Border Protection, and Centralia Police Department. This case is being prosecuted by Assistant United States Attorneys Casey Conzatti and Elyne Vaught.


title: Houston Man Charged in Connection to Kidnapping of 10-Month-Old Baby in Clovis, NM

body_text: ALBUQUERQUE – A Houston man was charged by criminal complaint with interstate kidnapping of a child in connection with the double-murder of the girl's mother and another woman in Clovis, New Mexico. Alek Isaiah Collins , 26, appeared before a federal judge in Abilene, Texas this morning on charges contained in a federal criminal complaint filed in New Mexico. Collins was detained and will remain in the custody of the United States Marshals Service pending his transfer to New Mexico for further proceedings. According to the criminal complaint, on May 3, 2024, the bodies of two deceased adult females, Jane Doe 1 and Jane Doe 2, were discovered at Ned Houk Memorial Park in Clovis, New Mexico. Jane Doe 2’s 5-year-old daughter, Minor 1, was also found wounded at the scene and transported to the hospital for treatment. Jane Doe 2’s 10-month-old daughter, Minor 2, was missing from the scene. Surveillance footage showed Minor 2 with her mother at a nearby Dollar General store just prior to the incident. Law enforcement issued an AMBER Alert for Minor 2. Law enforcement recovered evidence at the scene, including 9mm handgun casings and a vehicle sideview mirror cover, indicating potential involvement of a maroon Honda. Witness accounts indicated a maroon/red colored sedan was at the park around the time of the incident. Further investigation revealed that the maroon Honda with Texas license plate TTK3358 was rented by Collins through HyreCar, a peer-to-peer carsharing marketplace. GPS data from the vehicle showed it near the park around the estimated time of the double homicide. Cell phone records and law enforcement searches linked Collins to a phone which was in the vicinity of the park during the incident. The vehicle was later located at a residence in Abilene, Texas, where it had been remotely disabled by the owner after Collins failed to return the rental on time. While preparing to execute a search warrant at a residence, officers observed an Uber driver operating a Cadillac SUV arrive on the street. Collins exited the residence carrying Minor 2 and placed the child in the rear passenger seat of the SUV. Collins then proceeded to carjack the Uber driver at gunpoint, forcing the driver to exit the vehicle before driving away with the child. Abilene Police Department's Narcotics Unit immediately pursued the Cadillac and were able to pin the vehicle, bringing it to a stop. Collins was promptly arrested and Minor 2 was recovered safely from the vehicle. Collins has no relation to Minor 2 and does not have legal custody of the child. U.S. Attorney Alexander M.M. Uballez, and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, made the announcement today. The FBI Albuquerque Field Office investigated this case with assistance from the New Mexico State Police, Clovis Police Department, Abilene Texas Police Department Narcotics Unit, Curry County Sheriff’s Office, Roosevelt County Sheriff’s Office, Roswell Police Department, Portales Police Department, the Ninth Judicial District Attorney’s Office, FBI Dallas Field Office, FBI Amarillo Resident Agency and FBI Abilene Resident Agency. Assistant United States Attorneys Jaymie L. Roybal and Joseph Spindle are prosecuting the case. View the Criminal Complaint View the Rule 5 Document A criminal complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. # # #


title: Former children’s hospital employee pleads guilty to sharing, receiving child pornography

component: USAO - Ohio, Southern

body_text: COLUMBUS, Ohio – A former Nationwide Children’s Hospital employee who treated child burn patients pleaded guilty in U.S. District Court today to downloading, exchanging and receiving child pornography. Ryan Ramos, 38, of Columbus, pleaded guilty to one count of distributing and receiving child pornography and one count of possessing child pornography. He faces an imprisonment range of five to 20 years in prison. Ramos worked at Nationwide Children’s Hospital from 2018 until 2020 and then at The Ohio State University Wexner Medical Center in the ICU in burn trauma until 2023. According to court documents, a 2020 FBI investigation in their Brooklyn-Queens office led agents to discover Ramos’s participation in a Signal app group dedicated to the exchange of child pornography. Ramos shared hundreds of images and videos of child sexual abuse, including abuse of young boys and infants, to the chat group. Further investigation into Ramos revealed that, in 2018, he had paid a sexual offender in New York City and received child pornography created by the offender in exchange for his payment. Ramos sent more than $500 via PayPal to the child exploiter. Ramos’s iPhone contained more than 346,000 Signal, Telegram and other online chat messages, in most of which Ramos was distributing, seeking, receiving or discussing child pornography. Ramos was charged by a bill of information on May 6 and pleaded guilty during his arraignment in federal court this afternoon. He is in custody pending sentencing. Congress sets the minimum and maximum statutory sentences. Sentencing of the defendant will be determined by the Court based on the advisory sentencing guidelines and other statutory factors. Kenneth L. Parker, United States Attorney for the Southern District of Ohio, and Elena Iatarola, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the guilty plea entered today before U.S. District Judge Sarah D. Morrison. Assistant United States Attorney Emily Czerniejewski is representing the United States in this case. # # #


title: North Mississippi man sentenced to 20 years for threatening a mail carrier

component: USAO - Mississippi, Northern

body_text: Oxford, MS – A Sledge man was sentenced today to 20 years in prison following his conviction for threatening a postal employee with a dangerous weapon. According to court documents, Henry Weaver, 47, was convicted in federal court on February 13, 2024, of one count of threatening a mail carrier with a dangerous weapon. The threat occurred in Marks, Mississippi, on April 23, 2022. Weaver was sentenced today by United States District Judge Sharion Aycock to 240 months in prison followed by three years of supervised release. Weaver, who has been in custody since his arrest in April, 2022, was remanded to the U.S. Marshals to begin serving his sentence. “We will not tolerate threats of violence against mail carriers while they are simply doing their jobs,” said U.S. Attorney Clay Joyner. “We commend the U.S. Postal Inspection Service for their work on this investigation and for helping to protect the community from this defendant.” This case was investigated by the U.S. Postal Inspection Service and the Quitman County Sheriff’s Office. The case was prosecuted by AUSA Robert Mims.


title: Lincoln Woman Sentenced for Distributing Heroin

component: USAO - Nebraska

body_text: United States Attorney Susan Lehr announced that Lidia Irena Kula, 34, of Lincoln, Nebraska, was sentenced May 14, 2024, in federal court in Lincoln for distribution of heroin. Senior United State District Judge John M. Gerrard sentenced Kula to 132 months’ imprisonment. There is no parole in the federal system. After Kula is released from prison, she will begin a 3-year term of supervised release. On December 27, 2021, Lincoln Police officers and Lincoln Fire and Rescue were dispatched to the area of northwest 12th St. and West Cornhusker in Lincoln following the report of an individual who was unconscious and unresponsive in a ditch. Officers arrived and contacted three witnesses. One witness said he was driving by and saw the victim fall down. He stopped and administered CPR to the victim. Officers relieved that witness and began life saving measures to include chest compressions, Narcan, applying an AED, and giving mouth to mouth resuscitations. Lincoln Fire and Rescue arrived shortly thereafter. On the scene, the victim woke up and was and alert. Officers searched his person and found a vile of suspected heroin, three syringes, and a spoon with suspected heroin residue. The victim was taken to Bryan West Hospital. The victim consented to the search of his phone, and officers found messages between the victim and Kula on Facebook. Kula and the victim had arranged to meet to purchase two points, typically .1 gram, of heroin for 70 dollars earlier in the day on December 27, 2021. The lab determined that the glass vial on the victim’s person contained heroin. Investigation revealed the victim took a Lyft to a Casey’s convenience store and waited outside until Kula arrived. The victim gave Kula $70 in exchange for a small glass vial and a bag with syringes in it. The victim went inside Casey’s and drank the heroin mixed with water. The victim didn’t remember anything after ingesting the heroin. Video obtained from Casey’s showed the victim going into the store, into the bathroom, and then exiting the store and walking toward 12th St. The last video of the victim was at 4:05 pm, and the call for service came at 4:09 pm. During later investigation, the victim messaged Kula about how he had overdosed and how he needed to “do half at a time” to prevent a future overdose. Kula messaged back, “Dude I [expletive] tell you that every time!” As the investigation continued, an undercover officer made three purchases of methamphetamine from Kula. On January 14, 2022, the undercover officer bought .5 grams of heroin for $150 from Kula at a Walgreen’s parking lot in Lincoln. During that purchase, the officer asked whether it was the same heroin the victim overdosed on, which Kula said it was. This case was investigated by the Lincoln Police Department.


title: Lincoln Man Sentenced in Firearms Case

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

body_text: United States Attorney Susan Lehr announced that Spenser Ware, 35, formerly of Lincoln, Nebraska, was sentenced on May 14, 2024, in federal court in Lincoln for possession of firearms and ammunition by a prohibited person. Senior United States District Judge Joseph F. Bataillon sentenced Ware to 42 months’ imprisonment. There is no parole in the federal system. After Ware’s release from prison, he will begin a 3-year term of supervised release. In October of 2023, investigators received information that Ware was building firearms and selling them to individuals who could not legally purchase them. Ware owned his own security company at the time. Investigators executed a search warrant at Ware’s residence where they found five firearms, several of which were non-serialized “ghost guns” with short barrels. Investigators also found 12 receivers, high-capacity magazines, body armor, more than 1800 rounds of ammunition in different calibers, holsters, firearm assembly equipment, and magazines. Ware admitted that he ordered the gun parts and assembled the firearms himself. Investigators searched his phone and found multiple images of firearms dating back to 2021. An agent for the Bureau of Alcohol, Tobacco, Firearms, and Explosives examined the firearms and ammunition and found that they were manufactured outside the State of Nebraska. Ware has felony convictions out of Florida preventing him from possessing firearms. This case was investigated by the Lincoln Police Department, the Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. 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: Lincoln Man Sentenced to 150 Months for Possession of Drugs

body_text: United States Attorney Susan Lehr announced that Lazaro Onasi Lopez Campos, 48, of Lincoln, Nebraska, was sentenced on May 14, 2024, in federal court in Lincoln for possession of methamphetamine and oxycodone with the intent to distribute. Senior United States District Court Judge John M. Gerrard sentenced Lopez Campos to 150 months’ imprisonment. There is no parole in the federal system. After Lopez Campos’ release from prison, he will begin a 5-year term of supervised release. The Lincoln/Lancaster Drug Task Force began investigating the defendant after receiving information he was involved in the distribution of meth. On March 8, 2023, they observed the defendant drive from Lincoln to a gas station just off Interstate 80 and near the exit for Gretna, Nebraska. The defendant was there for a short time and then drove back to his apartment in Lincoln, Nebraska. Officers contacted the defendant shortly after he arrived back at his apartment building. A woman, who had ridden with the defendant to the gas station near Gretna and back to Lincoln, went inside the apartment before police were able to contact the defendant. Police obtained a search warrant for the defendant’s apartment. When the search was executed, police discovered various drug paraphernalia, approximately 70 grams of meth, 90 oxycodone pills, digital scales, plastic bags used for the packaging of drugs, and items showing that the defendant, and the woman who accompanied him on the trip, lived in the apartment. The drugs which were found in the apartment were later sent to the Nebraska State Patrol Crime Laboratory. Analysis at the laboratory showed the meth contained at least 58 grams of actual or pure meth. The suspected oxycodone pills were confirmed to in fact contain oxycodone. This case was investigated by the Lincoln/Lancaster County Drug Task Force.


title: Juniata Man Sentenced for Child Pornography Offenses

body_text: United States Attorney Susan Lehr announced that Coren C. Potts, 53, of Juniata, Nebraska, was sentenced May 14, 2024, in federal court in Lincoln, Nebraska for receipt and distribution of child pornography. U.S. Senior District Court Judge John M. Gerrard sentenced Potts to 180 months’ imprisonment. There is no parole in the federal system. After Pott’s release from prison, he will begin a 15-year term of supervised release and will continue to be required to register as a sex offender. In March 2023, the National Center for Missing and Exploited Children (NCMEC) received 8 different CyberTip reports from a cloud based storage account, that a user had uploaded at least 50 files of visual depictions of sexually explicit conduct featuring children. NCMEC forwarded the tips on to the Kansas Bureau of Investigation. Agents reviewed the files associated with the CyberTips and found they depicted child pornography. Search warrants were obtained for both the wireless account and the cloud account associated with a Kansas phone number which returned to Potts, residing in Juniata, Nebraska. Potts was a registered sex offender, having been convicted in 2008 in the federal district court in Kansas for possession and receipt/distribution of child pornography. At that time, the investigation was turned over to the Nebraska State Patrol. Potts was interviewed and volunteered there was pornography on his phone. When confronted about information about the CyberTips and shown images included in the NCMEC reports, Potts showed investigators several images of child pornography that he had downloaded two days earlier. Potts’ phone was forensically examined and a review of its contents located 85 video files and 222 still images of child pornography. This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc . This case was investigated by the Kansas Bureau of Investigation and the Nebraska State Patrol.


title: Lincoln Man Sentenced for Possession with Intent to Distribute Methamphetamine

body_text: United States Attorney Susan Lehr announced that Patrick S. Carey, 38, of Lincoln, Nebraska was sentenced on May 14, 2024, in federal court in Lincoln for possession with intent to distribute 50 grams or more of actual meth and 50 grams or more of meth mixture. Senior United States District Judge Joseph F. Bataillon sentenced Carey to 188 months’ imprisonment. There is no parole in the federal system. After Carey’s release from prison, he will begin a 5-year term of supervised release. On the evening of March 16, 2023, investigators were conducting surveillance on Carey’s Lincoln residence. They saw Carey and another man leave Carey’s residence in a vehicle. The vehicle had a broken taillight, so officers attempted to make a traffic stop, but the vehicle fled. Instead of chasing the vehicle, investigators returned to Carey’s residence and waited for Carey and the other man to return. When Carey and the other man returned to the area, investigators approached them. Both men got out of the vehicle and took off running despite orders to stop. Carey was arrested after he tripped, fell, turned his ankle, and injured a finger. The other man was also arrested. Carey told officers he had a gun on his person. A bag containing meth, a handgun and ammunition were found in his pockets. Carey admitted he fled the traffic stop because he had the gun with him. A search warrant was executed on Carey’s apartment in the early morning hours of March 17, 2023. During that search, investigators found seven additional baggies containing meth. The total weight of the bag found on Carey’s person and the bags found in his apartment was 192.89 grams, and purity testing showed at least 160 grams of actual meth. This case was investigated by the Lincoln/Lancaster County Drug Task Force.


title: Ohio Man Pleads Guilty to Creating and Distributing Videos Depicting Monkey Torture and Mutilation

component: Energy and Natural Resources Division

body_text: A plea agreement was unsealed today in which an Ohio man pleaded guilty to creating and distributing videos depicting acts of extreme violence and sexual abuse against monkeys. Ronald P. Bedra, of Etna, pleaded guilty to conspiring to create and distribute so-called “animal crush” videos. According to court documents, Bedra conspired with others to create and distribute the videos which depicted acts of sadistic violence against baby and adult monkeys, including having digits and limbs severed and being forcibly sodomized with a heated screwdriver. The conspirators used encrypted chat apps to direct money to individuals in Indonesia willing to commit the requested acts of torture on camera. Bedra also mailed a thumb drive containing 64 videos of monkey torture to a co-conspirator in Wisconsin. Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division and U.S. Attorney Kenneth L. Parker for the Southern District of Ohio made the announcement. The U.S. Fish and Wildlife Service and FBI investigated the case. Trial Attorney Mark Romley and Senior Trial Attorney Adam Cullman of the Environment and Natural Resources Division’s Environmental Crimes Section and Assistant U.S. Attorney Nicole Pakiz for the Southern District of Ohio are prosecuting the case.


title: State of Rhode Island Found to be in Violation of Federal Disability Laws for  Over-Hospitalization of Children with Behavioral Disabilities in State Care

component: Civil Rights - Disability Rights Section

body_text: PROVIDENCE, RI - An investigation by the United States Attorney’s Office for the District of Rhode Island and the United States Department of Health and Human Services Office of Civil Rights (HHS OCR) has found that the State of Rhode Island has violated federal civil rights laws by routinely and unnecessarily segregating children with mental health and/or developmental disabilities at Bradley Hospital, an acute-care psychiatric hospital, announced United States Attorney Zachary A. Cunha and HHS OCR Director Melanie Fontes Rainer. As detailed in a Letter of Findings transmitted to the Governor of Rhode Island and the Director of the Rhode Island Department of Children, Youth and Families (DCYF), the federal government’s comprehensive, multi-year investigation found that, rather than complying with its legal obligation to provide services in the most integrated setting appropriate to the needs of these children, the state has instead left them hospitalized at Bradley for far longer than is necessary. While Bradley Hospital inpatient admissions are designed to last only one to two weeks, the federal investigation concluded that children with behavioral health disabilities in DCYF’s care were often forced to languish in the hospital for weeks, months, and, in some cases, for more than a year, despite being ready for discharge, and despite the fact that these children would be better served in a family home. The investigation found that DCYF failed to ensure that children with disabilities were able to access the intensive in-home and community-based services they need, and failed to facilitate prompt discharges from Bradley Hospital to family homes, resulting in extended and unnecessary hospitalization, or risk of future hospitalization, all in violation of federal law, specifically Title II of the Americans with Disabilities Act and Section 504 of the Rehabilitation Act of 1973. “It is nothing short of appalling that the state has chosen to warehouse children in a psychiatric institution, rather than stepping up to provide the community care, support, and services that these kids need, and that the law requires,” remarked U.S. Attorney Zachary A. Cunha. “I am hopeful that the findings we announce today will spur swift action by the state to meet its obligations under federal law, and far more importantly, to ensure that the civil rights of these children are upheld.” “Children with disabilities should be able to come home to the love and support of their families and not be confined to an institution for months on end,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “We will continue our vigorous enforcement of the ADA to ensure that children with disabilities can receive the community-based services they need to live with their families and participate in their communities.” “Today’s finding follows on the heels of the Office for Civil Rights’ efforts to strengthen access to care for people with disabilities like these children,” said HHS OCR Director Melanie Fontes Rainer. “We must do better by our children and the communities we serve, and States and others must follow federal civil rights laws to ensure every child can access care free from discrimination. As we approach the 25th anniversary of the Olmstead decision, today’s action also emphasizes our commitment to continue to protect the critical right of individuals to live in their own homes and communities.” As detailed in the government’s Letter of Findings, from January 1, 2017, through September 30, 2022, a staggering 527 children either in DCYF care and custody, or receiving services voluntarily through DCYF, were admitted to Bradley Hospital. Of these 527, 116 were hospitalized in a single admission for more than 100 consecutive days; 42 were hospitalized for more than 180 days; and seven children were hospitalized for more than one year. Many of these children were subjected to these avoidable and unnecessarily lengthy hospitalizations at Bradley because DCYF failed to provide the community-based services they need. Keeping a child hospitalized for an extended period when their needs could be served in a less restrictive setting only serves to exacerbate the child’s acute needs. Indeed, the investigation found that extended hospitalization often traumatizes the children as well as their families. According to the Letter of Findings, DCYF also does not plan for hospital discharges in a way that places children in the most integrated setting appropriate to meet their needs. DCYF’s failure to look for placements in a family home setting with services leads both to delayed discharges and to inappropriate placements post-discharge, which, in turn, often leads to subsequent hospitalizations This joint investigation by the United States Attorney’s Office and HHS OCR was conducted by Assistant U.S. Attorney Amy R. Romero and Equal Opportunity Specialist Erin Walker of HHS. The ADA, Section 504, and the Supreme Court’s ruling in Olmstead v. L.C ., require state and local governments to make services available to people with disabilities in the most integrated setting appropriate to their needs, regardless of age or type of disability. Enforcement of Title II of the ADA, Section 504, and the integration mandate of the Olmstead decision, is a priority of the Department of Justice and Department of Health and Human Services. Additional information about the ADA can be found at www.ada.gov , or by calling the Department of Justice’s toll-free ADA information line at 800-514-0301 or 800-514-0383 (TDD). For more information on Section 504 of the Rehabilitation Act and how it protects individuals with disabilities, visit: https://www.hhs.gov/civil-rights/for-individuals/disability/index.html . For more information about OCR’s Olmstead activities, visit: https://www.hhs.gov/civil-rights/for-individuals/special-topics/community-living-and-olmstead/index.html . Individuals who believe their civil rights have been violated can file a complaint with the Office for Civil Rights at: www.hhs.gov/civil-rights/filing-a-complaint/index.html . Anyone in Rhode Island may also report civil rights violations directly to the U.S. Attorney’s Office for the District of Rhode Island at https://www.justice.gov/usao-ri/civil-rights-enforcement or 401-709-5000. ### us_ada_and_section_504_violation_findings_letter_to_rhode_island_5.13.24_508.pdf


title: Estado de Rhode Island Considerado en Violación de las Leyes Federales de Discapacidad por Hospitalización Excesiva de Niños con Discapacidades Conductuales Bajo Cuidado Estatal

body_text: PROVIDENCE, RI - Una investigación realizada por la Oficina del Fiscal de los Estados Unidos para el Distrito de Rhode Island y la Oficina de Derechos Civiles del Departamento de Salud y Servicios Humanos de los Estados Unidos (HHS OCR) ha descubierto que el Estado de Rhode Island ha violado las leyes federales de derechos civiles al rutinariamente e innecesariamente segregar a niños con discapacidades de salud mental y/o del desarrollo en el Hospital Bradley, un hospital psiquiátrico de cuidados intensivos, anunciaron el fiscal de los Estados Unidos Zachary A. Cunha y la directora de la Oficina de Derechos Civiles del Departamento de Salud y Servicios Humanos de los Estados Unidos (HHS OCR), Melanie Fontes Rainer. Como se detalla en una Carta de Conclusiones transmitida al Gobernador de Rhode Island y al Director del Departamento de Niños, Jóvenes y Familias de Rhode Island (DCYF), la investigación integral de varios años del gobierno federal encontró que, en lugar de cumplir con su obligación legal de proporcionar servicios en el entorno más integrado y apropiado a las necesidades de estos niños, el estado los ha dejado hospitalizados en Bradley durante mucho más tiempo del necesario. Mientras que las admisiones de pacientes hospitalizados en el Hospital Bradley están diseñadas para durar sólo una o dos semanas, la investigación federal concluyó que los niños con discapacidades de salud conductual bajo el cuidado del DCYF a menudo fueron obligados a languidecer en el hospital durante semanas, meses y, en algunos casos, durante más de un año, a pesar de estar listos para ser dados de alta del hospital y a pesar de que estos niños estarían mejor atendidos en un hogar familiar. La investigación encontró que el DCYF no garantizó que los niños con discapacidades pudieran acceder a los servicios intensivos basados en el hogar y en la comunidad que necesitaban, y fallaron en facilitar las altas inmediatas del Hospital Bradley a hogares familiares, lo cual resultó en hospitalizaciones prolongadas e innecesarias, o riesgo de hospitalización en el futuro, todo lo cual que esta en violación de la ley federal, específicamente el Título II de la Ley de Estadounidenses con Discapacidades y la Sección 504 de la Ley de Rehabilitación de 1973. "Es nada menos que espantoso que el estado haya optado por internar a los niños en una institución psiquiátrica, en lugar de dar un paso adelante para brindarles la atención, el apoyo y los servicios comunitarios que estos niños necesitan y que exige la ley", comentó el fiscal federal Zachary. A. Cunha. "Tengo la esperanza de que los hallazgos que anunciamos hoy impulsen una acción rápida por parte del estado para cumplir con sus obligaciones bajo la ley federal y, mucho más importante, para garantizar que se respeten los derechos civiles de estos niños". "Los niños con discapacidades deberían poder regresar a casa con el amor y el apoyo de sus familias y no ser confinados en una institución durante meses", dijo la Fiscal General Adjunta Kristen Clarke de la División de Derechos Civiles del Departamento de Justicia. "Continuaremos nuestra aplicación vigorosa de la ADA para garantizar que los niños con discapacidades puedan recibir los servicios comunitarios que necesitan para vivir con sus familias y participar en sus comunidades". "El hallazgo de hoy sigue los pasos de los esfuerzos de la Oficina de Derechos Civiles para fortalecer el acceso al cuidado para personas con discapacidades como estos niños", dijo la directora de la OCR del HHS, Melanie Fontes Rainer. “Debemos hacerlo mejor para nuestros niños y las comunidades a las que servimos, y los estados y los demás deben seguir las leyes federales de derechos civiles para garantizar que todos los niños puedan acceder cuidado sin discriminación. A medida que nos acercamos al vigésimo quinto aniversario de la decisión de Olmstead, la acción de hoy también enfatiza nuestro compromiso de continuar protegiendo el derecho fundamental de las personas a vivir en sus propios hogares y comunidades”. Como se detalla en la Carta de Conclusiones del gobierno, desde el 1 de enero del 2017 hasta el 30 de septiembre del 2022, la asombrosa cifra de 527 niños, ya sea bajo el cuidado y custodia del DCYF o que recibieron servicios voluntariamente a través del DCYF, fueron admitidos en el Hospital Bradley. De estos 527 niños, 116 fueron hospitalizados en una sola admisión durante más de 100 días consecutivos; 42 estuvieron hospitalizados por más de 180 días; y siete niños estuvieron hospitalizados durante más de un año. Muchos de estos niños fueron sometidos a hospitalizaciones evitables e innecesariamente largas en Bradley porque el DCYF no les proporcionó los servicios comunitarios que necesitaban. Mantener a un niño hospitalizado durante un período prolongado cuando sus necesidades podrían satisfacerse en un entorno menos restrictivo sólo sirve para exacerbar las necesidades agudas del niño. De hecho, la investigación encontró que la hospitalización prolongada a menudo traumatiza tanto a los niños como a sus familias. Según la Carta de Conclusiones, el DCYF tampoco planifica las altas hospitalarias de una manera que coloque a los niños en el entorno más integrado y apropiado para satisfacer sus necesidades. El hecho de que el DCYF no busque colocaciones en un hogar familiar con servicios provoca retrasos a las altas hospitalarias y a las colocaciones inapropiadas después de que hayan sido dados de alta, lo que, a su vez, a menudo conduce a hospitalizaciones posteriores. Esta investigación conjunta de la Fiscalía de los Estados Unidos y la OCR del HHS fue realizada por la fiscal federal adjunta Amy R. Romero y la especialista en igualdad de oportunidades Erin Walker del HHS. La Sección 504 de la ADA y la decisión judicial de la Corte Suprema en Olmstead v. L.C . exigen que los gobiernos estatales y locales pongan servicios a disposición de las personas con discapacidades en el entorno más integrado y adecuado a sus necesidades, independiente de su edad o tipo de discapacidad. La aplicación del Título II de la ADA, Sección 504, y el mandato de integración de la decisión Olmstead , es una prioridad del Departamento de Justicia y del Departamento de Salud y Servicios Humanos. Puede encontrar información adicional sobre la ADA en la página web www.ada.gov o llamando a la línea gratuita de información sobre la ADA del Departamento de Justicia al 800-514-0301 o al 800-514-0383 (TDD). Para obtener más información sobre la Sección 504 de la Ley de Rehabilitación y cómo protege a las personas con discapacidades, visite la página web: https://www.hhs.gov/civil-rights/for-individuals/disability/index.html . Para más información sobre las actividades Olmstead de la OCR, visite la página web: https://www.hhs.gov/civil-rights/for-individuals/special-topics/community-living-and-olmstead/index.html . Las personas que crean que sus derechos civiles han sido violados pueden presentar una queja ante la Oficina de Derechos Civiles en la página web: www.hhs.gov/civil-rights/filing-a-complaint/index.html . Cualquier persona en Rhode Island también puede denunciar violaciones de derechos civiles directamente a la Fiscalía Federal para el Distrito de Rhode Island en la página web: https://www.justice.gov/usao-ri/civil-rights-enforcement o llamando a 401-709-5000. ### us_ada_and_section_504_violation_findings_letter_to_rhode_island_5.13.24_508.pdf


title: Michigan Resident and Heavy-Duty Diesel Parts Supplier Indicted for Conspiracy to Violate the Clean Air Act

component: USAO - New York, Northern

body_text: ALBANY, NEW YORK – Kyle Offringa, age 33, of Caledonia, Michigan, and Highway and Heavy Parts, LLC (“HHP”), a heavy-duty diesel parts supplier headquartered in Coleman, Michigan, were recently indicted by a grand jury in the Northern District of New York for conspiracy to violate the Clean Air Act (“CAA”) United States Attorney Carla B. Freedman and Tyler Amon, Special Agent in Charge of the United States Environmental Protection Agency (“EPA”)’s Criminal Investigations Division (“CID”), Northeast Area Branch, made the announcement. According to the indictment, between at least June 5, 2017 and March 27, 2019, HHP and Offringa conspired with a diesel truck operator in Fultonville, New York, and others, to remove, delete and tamper with monitoring devices on heavy-duty diesel trucks required to be maintained by the CAA and EPA regulations. Pursuant to the CAA, the EPA enacted regulations that require heavy-duty diesel engine manufacturers to limit emissions on those engines. To comply with these regulations, manufacturers install hardware components, including filters, exhaust recirculation systems and exhaust aftertreatment systems. Heavy-duty diesel trucks are also required under the CAA to maintain an onboard-diagnostic system (“OBD”), which monitors the functionality of the hardware emissions control components. If the OBD detects that an emissions control component is not working, or has been removed, it will ultimately put the truck into what is known as “limp mode,” which limits the top speed to as low as 5 miles per hour. This is designed to incentivize truck operators to repair any faulty components. As alleged in the indictment, truck operators deleted the emissions control hardware on their heavy-duty diesel trucks, which significantly increased pollution emitted by those trucks but allowed them to run at higher horsepower, with greater fuel efficiency, and with reduced maintenance cost. To help truck operators who had deleted emissions hardware, HHP charged its customers a fee for the services of Offringa, who reprogrammed the OBDs on vehicles so they would not detect that the components had been tampered with. HHP was paid between $1,250 and $1,750 for each truck reprogrammed by Offringa – who then received a substantial portion of that payment from HHP. The charges in the indictment are merely accusations. The defendants are presumed innocent unless and until proven guilty. HHP was arraigned Friday in Albany before United States Magistrate Judge Christian F. Hummel. Offringa is scheduled to be arraigned May 15. Two alleged coconspirators, Patrick Oare and DAIM Logistics, Inc. of Fultonville, previously pled guilty to violating the CAA and are scheduled to be sentenced by United States District Judge Mae A. D’Agostino in Albany on June 21, 2024. The charge filed against Offringa carries a maximum term of 5 years in prison, a fine of up to $250,000, and a term of supervised release of up to 3 years. The charge filed against HHP carries a fine of up to $500,000 and a term of probation of up to 5 years. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors. EPA CID is investigating the case, with the assistance of the Federal Bureau of Investigation and the New York State Department of Environmental Conservation Police. Assistant United States Attorney Benjamin S. Clark is prosecuting the case.


title: Three More Accused of Role in Scamming Elderly Nationwide

component: USAO - Missouri, Eastern

body_text: ST. LOUIS – Three people from California have been federally indicted and accused of participating in a conspiracy that used Taiwanese passports, fraudulent immigration documents and bank accounts and “money mules” to scam elderly victims nationwide, joining four others also accused of a role. On May 8, Bowen Chen, 21, of Monterey Park, Jiacheng Chen, 19, of East San Gabriel, and Vianne Chen, a.k.a. Tingting T. Chen, 41, were added to an indictment in U.S. District Court in St. Louis. Four other Californians have already been indicted on charges including conspiracy to commit mail, bank and wire fraud: Liang Jin, 24, of Walnut, Tsz Yin Kan, 41, of Chino Hills, Kaiyu Wen, 25, of Irvine, and Yu-Chieh Huang, 22, of Chino Hills. The expansion of the initial case in St. Louis was part of the Money Mule Initiative , an annual campaign to identify, disrupt, and criminally prosecute networks of individuals who transmit funds from fraud victims to international fraudsters. Fraudsters rely on money mules to aid a range of fraud schemes, including those that predominantly impact older Americans, such as lottery fraud, romance scams and grandparent scams as well as those that target businesses or government pandemic funds. This year, law enforcement took action to stop over 3,000 money mules. These actions ranged from criminal prosecutions to letters warning those who may have been unknowingly recruited by fraudsters. Agencies are also educating the public about how fraudsters use money mules and how to avoid unknowingly assisting fraud by receiving and transferring money. The St. Louis indictment accuses Kan of setting up "USA You Yi Sheng Inc." as an education service business in California. Kan then produced fraudulent immigration paperwork known as the Form I-20, or "Certificate of Eligibility for Nonimmigrant Student Status," the indictment says. Vianne Chen, a bank employee, as well as Kan and others opened student checking accounts using the fake I-20 forms and Taiwanese passports that had been shipped to Kan, the indictment says. Other scammers targeted older Americans with tech support fraud, romance fraud, and imposter schemes and tricked their victims into collecting and delivering large amounts of cash to money mules like Huang, the indictment says. Using the fraudulently-opened bank accounts, couriers converted the cash they collected from fraud victims and others engaged in criminal activity into cashier’s checks that they deposited into a bank account that has received more than $7 million, the indictment says. Bowen Chen was the largest depositor into that account, accounting for $1.3 million, the indictment says. Jiacheng Chen deposited approximately $615,000 and Kan deposited $440,000, it says. Huang was the first to be charged in the case. In August, an elderly Missouri man was told via a pop-up ad that his computer was infected with a virus. He and his wife were then falsely told that someone had been accessing child pornography through the computer and they would have to pay $88,000 to avoid prosecution, according to charging documents. The Missouri couple gathered the money, but got suspicious and contacted police, who arrested Huang. Charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty. Homeland Security Investigations investigated the case. Assistant U.S. Attorneys Tracy Berry and Kyle Bateman are prosecuting the case. If you or someone you know is age 60 or older and has experienced financial fraud, experienced professionals are standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This Justice Department hotline, managed by the Office for Victims of Crime, can provide personalized support to callers by assessing the needs of the victim and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is open Monday through Friday from 10:00 a.m. to 6:00 p.m. ET. English, Spanish, and other languages are available. The Federal Trade Commission also provides a hotline at 877-FTC-HELP and a website at www.ftccomplaintassistant.gov to receive consumer complaints. More information about the Department’s efforts to help American seniors is available at its Elder Justice Initiative webpage. For more information about the Consumer Protection Branch and its enforcement efforts, visit www.justice.gov/civil/consumer-protection-branch . The Justice Department provides information about a variety of resources relating to elder fraud victimization through its Office for Victims of Crime, which are available at www.ovc.gov .


title: Ten Individuals Charged with Theft of Federal Program Funds from Tuskegee University

component: USAO - Alabama, Middle

body_text: Montgomery, Alabama – Today, United States Attorney Jonathan S. Ross announced that a grand jury has indicted ten individuals for theft of federal program funding from Tuskegee University. Tuskegee University, located in Macon County, Alabama, receives federal funding in excess of $10,000 per calendar year. The individuals named in the indictment are: (1) Wanda Tyner Hairston, 51, from Auburn, Alabama; (2) Lora Regina Baker, 52, from Montgomery, Alabama; (3) Keyonn Dalarrion Cannon, 26, from Tuskegee, Alabama; (4) Lanequia Shanice Cooper, 29, also from Auburn; (5) Ledaryl Tremayne Johnson, 27, from Tuskegee, Alabama; (6) Jeanette Moss-Smith, 50, also from Auburn; (7) Cassandra Harris Parker, 61, also from Tuskegee; (8) Phyllis Vanessa Tyner, 57, also from Auburn; (9) Morris Gene Welch, another resident of Auburn; and (10) Abraham Torbert Wright, Jr., 23, also from Tuskegee. All ten are charged with conspiracy to commit federal program theft. According to the indictment, Cassandra Harris Parker, Lora Regina Baker, Jeanette Moss-Smith, and Wanda Tyner Hairston were Tuskegee University employees during the time frame of the alleged conspiracy, which began at an unknown date and continued to the year 2020. As Purchasing Manager, Parker created purchase orders indicating money was owed to co-conspirators so that checks would be issued to them. Baker worked in the Accounts Payable Department and entered the check requests into the university’s accounting system, causing the checks to be issued. Moss-Smith signed the check request forms and Hairston assigned grant codes to the forms confirming sufficient funds existed to cover the checks. Once issued, Parker delivered the checks to the co-conspirators. The indictment alleges that Cannon, Cooper, Johnson, Tyner, Welch, and Wright, Jr., each cashed checks provided to them as part of the scheme. The indictment further alleges that the ten named individuals conspired to steal federal program funds through the wrongful issuance of these checks. In addition to the conspiracy charges, Parker, Baker, Moss-Smith, and Hairston are also charged with theft concerning programs receiving federal funds. An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. The conspiracy to commit federal program theft charge carries a potential sentence of up to five years in prison. In addition, Parker, Baker, Moss-Smith, and Hairston, face sentences of up to ten years for the charge of theft concerning programs receiving federal funds. Trials for each defendant is currently scheduled for August 12, 2024. “The United States Attorney’s Office considers the theft of federal dollars to be a serious crime,” said United States Attorney Ross. “My office will continue to prosecute those who exploit federal programs and who exploit the institutions, like Tuskegee University, entrusted with using federal program funds for their intended purposes.” “This constitutes a flagrant misuse of federal grant funds for personal use,” said Special Agent in Charge Tamala Miles with the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG). “We remain committed to collaborating with our law enforcement partners to uphold the integrity of HHS programs.” The U.S. Department of Agriculture - Office of Inspector General, the Department of Health and Human Services - Office of Inspector General, and the Alabama Law Enforcement Agency investigated this case, which Assistant United States Attorney Christopher P. Moore is prosecuting.


title: Justice Department Moves to Intervene as Plaintiff-Intervenor in Muscogee (Creek) Nation’s Lawsuit Against Tulsa Alleging the City Has Unlawfully Asserted Criminal Jurisdiction Against Tribal Members

body_text: The Justice Department, on behalf of the Department of the Interior, filed a motion to intervene today in the Muscogee (Creek) Nation’s lawsuit against the City of Tulsa, Oklahoma, and its mayor, chief of police and city attorney in the U.S. District Court for the Northern District of Oklahoma. The Justice Department also filed a proposed complaint against Tulsa, alleging that it has unlawfully asserted criminal jurisdiction against tribal members within the Muscogee (Creek) Reservation. The Muscogee (Creek) Nation filed its complaint against Tulsa on Nov. 11, 2023, after Tulsa continued to prosecute tribal members within the reservation for alleged violations of Tulsa’s traffic ordinances. The city has used those court prosecutions to argue it has criminal jurisdiction over Indians in Indian country. The Justice Department’s motion to intervene and proposed complaint argue that Tulsa’s assertion of jurisdiction violates fundamental principles of federal Indian law that are rooted in the Constitution and were reaffirmed in the U.S. Supreme Court’s 2020 decision in McGirt v. Oklahoma . The filings say that these principles bar states and their political subdivisions from exercising criminal jurisdiction over Indians in Indian country unless Congress expressly authorizes it, which it has not done in this instance, leaving the United States and the Muscogee (Creek) Nation with exclusive criminal jurisdiction over Indians in Indian country. The motion to intervene and proposed complaint outline the United States’ governmental interest, in this and similar cases, in supporting the inherent sovereign power of all federally recognized tribes to exercise criminal jurisdiction over Indians for conduct occurring on their reservations, and in defending Congress’ plenary and exclusive authority over Indian affairs. The filings also cite the 1832 Treaty with the Creeks that no “State or Territory [shall] ever have a right to pass laws for the government of such Indians, but they shall be allowed to govern themselves.” Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division made the announcement. The Environment and Natural Resources Division’s Indian Resources Section is handling the case.


title: Mississippi Man Indicted for  Federal Gun and Drug Charges

body_text: NEW ORLEANS , LOUISIANA – JARVIS WILSON (WILSON) , age 39, a resident of Jackson, Mississippi was charged on May 9, 2024 by a federal grand jury in a six-count indictment announced U.S. Attorney Duane A. Evans. Counts 1 and 2 charges him with distribution of 500 grams or more of methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1) and (b)(1)(A). Count 3 charges him with 50 grams or more of distribution of methamphetamine in violation of Title 21, United States Code, Sections 841(a)(1) and (b)(1)(B). Count 4 charges him with being a felon in possession of firearm and ammunition, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(8). Count 5 charges him with possession of a firearm in furtherance of a drug trafficking crime, in violation of Title 18, United States Code, Section 924(c)(1)(A)(i). Count 6 charges him with maintaining a drug involved premises, in violation of Title 21, United States Code, Sections 856(a)(1). If convicted, WILSON faces a mandatory minimum of 10 years up to life of imprisonment, up to a $10,000,000 fine, and at least 5 years of supervised release for Counts 1 and 2, a mandatory minimum of 5 years up to 40 years of imprisonment, up to a $5,000,000 fine, and at least 4 years of supervised release for Count 3, up to 15 years imprisonment, up to a $250,000 fine, and up to 3 years of supervised release for Count 4, a mandatory minimum of 5 years up to life imprisonment, up to a $250,000 fine, and up to 5 years of supervised release for Count 5, and up to 20 years imprisonment, up to a $500,000 fine, and up to 3 years of supervised release for Count 6. WILSON also faces payment of a $100 mandatory special assessment fee as to all 6 counts. According to court documents, on March 26, 2024, April 8, 2024, and May 2, 2024, WILSON knowingly and intentionally sold methamphetamine and maintained a drug involved premise to for the purpose of distributing the methamphetamine. WILSON was also a felon in possession of a Ruger Model LCR, .22 caliber revolver and Smith and Wesson Model 1000 Super, 12-gauge shotgun and ammunition in the furtherance of his drug trafficking crimes. This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. U.S. Attorney Evans reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt. The case was investigated by the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives. It is being prosecuted by Assistant United States Attorney Troy Bell of the Violent Crime Unit.


title: Georgia Inmate, Leader of Methamphetamine Conspiracy, Pleads Guilty

component: USAO - Virginia, Western

body_text: ABINGDON, Va. – The leader of a wide-ranging methamphetamine conspiracy, who was incarcerated in Georgia at the time, pled guilty last week in U.S. District Court to federal drug charges. Christopher David Johnson, 46, pled guilty last week to one count of conspiring to possess with the intent to distribute and to distributing 500 grams or more of methamphetamine. At sentencing, Johnson faces a mandatory minimum sentence of 15 years in prison and a statutory maximum of life. According to court documents, Johnson conspired with numerous individuals, including Michael Paul Brown, who was sentenced last week to 180 months of imprisonment for his role in the conspiracy, to traffic and distribute multiple kilograms of methamphetamine from Georgia into Southwest Virginia. At the time, Johnson was incarcerated in Georgia and used multiple cell phones to direct the methamphetamine distribution operation from prison. Johnson regularly communicated with his co-conspirators using both Facebook and text messaging to coordinate methamphetamine pricing, quantities, recruitment, sales, and deliveries. United States Attorney Christopher R. Kavanaugh and Jared Forget, Special Agent in Charge of Drug Enforcement Administration’s Washington Division made the announcement. The Drug Enforcement Administration and multiple law enforcement agencies in Georgia, Tennessee, and Virginia investigated the case, including the Bristol (Tennessee) Police Department, the Bristol (Virginia) Police Department, the Sullivan County Sheriff’s Office, the 2nd Judicial Drug Task Force, and the Georgia State Patrol. Assistant U.S. Attorneys Corey Hall and Whit Pierce are prosecuting the case.


title: Slidell Man Indicted for Manufacturing Explosive Materials Without a License and Unlawful Storage of Explosive Material

body_text: NEW ORLEANS , LOUISIANA – DEVIN JUNEAU (JUNEAU) , age 38, a resident of Slidell, Louisiana was charged on May 9, 2024 by a federal grand jury in a four-count indictment announced U.S. Attorney Duane A. Evans. Counts 1, 2, and 3 charges him with engaging in the business of manufacturing and dealing in explosive materials without a license, in violation of Title 18, United States Code, Sections 842(a)(1) and 844(a)(1). Count 4 charges him with improper storage of explosive materials, in violation of Title 18, United States Code, Sections 842(j) and 844(b), and Title 27, Code of Federal Regulations, Section 555.201, et seq . If convicted, JUNEAU faces up to 10 years of imprisonment, up to a $250,000 fine, and up to 3 years of supervised release for Counts 1, 2, and 3, and up to 1 year of imprisonment, up to a $250,000 fine, and up to 3 years of supervised release for Count 4. JUNEAU also faces payment of a $100 mandatory special assessment fee as to all 4 counts. According to court documents, on February 6, 2024, March 6, 2024, and May 1, 2024, JUNEAU manufactured and sold explosive materials without a license, and did not store the explosive materials as required by law. This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. U.S. Attorney Evans reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt. The case was investigated by the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives. It is being prosecuted by Assistant United States Attorney Troy Bell of the Violent Crime Unit.


title: New Orleans Man Pleads Guilty to  Federal Drug and Weapons Violations

body_text: NEW ORLEANS, LOUISIANA –DANTE FRAZIER , age 33, a resident of New Orleans, pleaded guilty on May 9, 2024 before U.S. District Judge Eldon E. Fallon to possession with the intent to distribute 50 grams or more of methamphetamine and a quantity of cocaine, in violation of Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(B), and 841(b)(1)(C); and being a felon in possession of a firearm, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2), announced U.S. Attorney Duane A. Evans. According to court documents, New Orleans Police Department (NOPD) officers responded to an emergency call and found FRAZIER passed out in the driver’s seat of a vehicle. After becoming aware of NOPD’s presence, FRAZIER drove into the neutral ground on Saint Claude Avenue, struck a median, and then drove into a gas station parking lot and fled on foot. While fleeing from NOPD, FRAZIER fired five shots from a firearm and then hid underneath a nearby house. NOPD officers located FRAZIER shortly after the pursuit. Inside his vehicle NOPD found over 50 grams of methamphetamine and 14 grams of cocaine, which FRAZIER intended to distribute. Before his instant arrest, FRAZIER had been convicted of three counts of armed robbery and possession with intent to distribute marijuana. Related to his narcotics charges, FRAZIER faces a minimum of five years and up to 40 years in prison, a minimum of four years of supervised release, and up to a $5,000,000 fine. As for his firearm charge, he faces up to 10 years in prison, up to three years of supervised release, and up to a $250,000 fine. Each count also carries a mandatory special assessment fee of $100. This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. The case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney David Berman of the Violent Crime Unit.


title: Covington Man Charged with Production and Possession of Child Sexual Abuse Materials

component: USAO - Louisiana, Eastern

body_text: NEW ORLEANS, LA – U.S. Attorney Duane A. Evans announced today that KEITH THOMAS CHANDLER (“CHANDLER”) , age 54, of Covington, Louisiana, was charged in a two-count indictment for Production of Materials Involving the Sexual Exploitation of Minors, in violation of Title 18, United States Code, Sections 2251(a) and (e); and for Possession of Materials Involving the Sexual Exploitation of Minors, in violation of Title 18, United States Code, Sections 2252(a)(4)(B) and (b)(2). If convicted, CHANDLER faces a mandatory minimum sentence of not less than fifteen (15) years and a maximum sentence of thirty (30) years, and/or a fine of $250,000.00, or the greater of twice the gross gain to the defendant or twice the gross loss to any person of the offense under Title 18, United States Code, Section 3571. In addition, CHANDLER faces a term of supervised release of no less than five (5) years and up to life after his release from prison. According to filed case documents, the case against CHANDLER developed as a result of a complaint to the National Center for Missing and Exploited Children (“NCMEC”). On April 29, 2024, Homeland Security Investigations (“HSI”) special agents, along with the St. Tammany Parish Sheriff’s Office, and the Louisiana Bureau of Investigation, executed a federal search warrant at CHANDLER’s residence in Covington, Louisiana. During the execution of the search warrant, CHANDLER was arrested for production of child pornography and possession of pre-pubescent child pornography. CHANDLER has been in custody since he was arrested on April 29, 2024. U.S. Attorney Evans reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt. 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 United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov . The U.S. Attorney’s Office would also like to acknowledge the assistance of the U.S. Department of Homeland Security, Homeland Security Investigations, the St Tammany Parish Sheriff’s Office, and the Louisiana Bureau of Investigation with this matter. The prosecution of this case is being handled by Assistant U.S. Attorney Brian M. Klebba, Chief of the Financial Crimes Unit.


title: Pittsburgh Man Previously Convicted of Drug and Firearm Felonies Sentenced to Five Years in Prison for Possession of Firearm and Large Quantity of Cocaine

component: USAO - Pennsylvania, Western

body_text: PITTSBURGH, Pa. – A resident of Pittsburgh, Pennsylvania, has been sentenced in federal court to five years of imprisonment, to be followed by four years of federal supervised release, on his convictions for possession with intent to distribute over 500 grams of cocaine and possession of a firearm and ammunition by a convicted felon, United States Attorney Eric G. Olshan announced today. United States Senior District Judge Nora Barry Fischer imposed the sentence on Allen Gregory Edmonds, 36. According to information presented to the Court, on December 19, 2023, law enforcement executed federal search warrants upon Edmonds, his vehicle, and properties associated with him. In the living room of his Pittsburgh residence, investigators found a backpack containing approximately two kilograms of cocaine, a Schedule II controlled substance. The closet within Edmonds’ bedroom contained a loaded handgun, a search of the serial number of which revealed that it had been reported stolen. Edmonds previously had been convicted in the Court of Common Pleas in Allegheny County of both a felony drug trafficking offense and a felony firearm offense. Federal law prohibits possession of a firearm or ammunition by a convicted felon. Assistant United States Attorney Brendan J. McKenna prosecuted this case on behalf of the government. United States Attorney Olshan commended the Federal Bureau of Investigation and Pennsylvania State Police for the investigation leading to the successful prosecution of Edmonds.


title: Ohio Man Sentenced for Disabling Emissions Controls on Diesel Trucks

body_text: A Hamilton County, Ohio, man was sentenced to prison today for violating the Clean Air Act through an aftermarket scheme to disable the emissions control systems of diesel trucks. Davis Owens, 34, of Cleves, was sentenced to serve 30 days in prison, seven months of home confinement and one year of supervised release. He had previously pleaded guilty to one count of aiding and abetting the tampering of a monitoring device required under the Clean Air Act. According to court documents, Owens was the co-owner of Holderdown Performance and owner of Cincy Diesel Performance. In 2020, Owens entered a Consent Agreement and Final Order (CAFO) with the Environmental Protection Agency (EPA) regarding allegations that he and Holderdown had knowingly worked to bypass or “defeat” components that controlled emissions on heavy duty diesel truck engines. Research has shown that bypassing a vehicle’s emissions components can increase particulate matter 40 times, nitrogen oxides 310 times, carbon monoxide 120 times and non-methane hydrocarbons 1,100 times. Owens paid a $7,500 civil penalty as part of the CAFO and agreed that neither he nor Cincy Diesel Performance would manufacture, sell or install defeat devices. Investigation revealed that Owens and Cincy Diesel Performance continued to sell and install defeat devices as well as emissions deleting computer software until February 2022. Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division and U.S. Attorney Kenneth L. Parker for the Southern District of Ohio made the announcement. The EPA’s Criminal Investigation Division and the Ohio Attorney General’s Bureau of Criminal Investigations investigated the case. Senior Trial Attorney Adam Cullman of the Environment and Natural Resources Division’s Environmental Crimes Section prosecuted the case.


title: Kabbage Agrees to Pay up to $120 Million to Resolve Allegations that it Defrauded the Paycheck Protection Program

component: USAO - Massachusetts

body_text: BOSTON – Bankrupt lender Kabbage, Inc. d/b/a KServicing, has agreed to resolve allegations that it knowingly submitted thousands of false claims for loan forgiveness, loan guarantees, and processing fees to the U.S. Small Business Administration (SBA) as part of the Paycheck Protection Program (PPP), in violation of the False Claims Act (FCA). Kabbage is now winding down its operations as KServicing Wind Down Corp. after filing for Chapter 11 bankruptcy in the District of Delaware in October 2022. The resolution consists of two separate settlements with KServicing Wind Down Corp., that together provide the United States with an allowed, unsubordinated, general unsecured bankruptcy claim for recovery of up to $120 million. The amount the government will recover on this claim will depend on the ultimate amount of assets available to the bankruptcy estate for distribution to unsecured creditors. “When the nation was facing a pandemic-induced crisis, Kabbage received tens of millions of dollars through the PPP to help lend taxpayer funds to businesses in need. Instead of safeguarding those funds, Kabbage doled out inflated and fraudulent loans, in an effort to maximize its profits,” said Acting United States Attorney Joshua S. Levy for the District of Massachusetts. “Then, Kabbage sold its assets and left the remaining company so low on cash that it ultimately went bankrupt, leaving taxpayers exposed to the risk of loss caused by Kabbage’s conduct. This office will continue pursuing any company or individual, like Kabbage, that took advantage of the PPP.” “The PPP was intended to provide critical assistance to businesses to alleviate the economic challenges imposed by the pandemic,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department is committed to holding accountable lenders that knowingly contributed to the misuse of such funds by approving PPP loans for ineligible borrowers or otherwise failing to comply with applicable program requirements.” “Lenders who participated in PPP were trusted on their word that they would comply with PPP requirements and do their part in safeguarding taxpayer funds from fraudsters,” said United States Attorney Damien M. Diggs for the Eastern District of Texas. “PPP lenders who broke that trust should be held accountable, as they ignored signs of fraud, and chose profit at the expense of taxpayers and struggling small businesses badly hit by the COVID-19 pandemic. This settlement with Kabbage demonstrates our office’s firm commitment to pursuing all parties who played a part in committing PPP fraud.” “The PPP Program provided those small businesses affected by the COVID-19 pandemic with forgivable loans for eligible payroll and non-payroll costs,” said SBA General Counsel Therese R. Meers. “SBA has made it a top priority to pursue participants in the PPP Program who committed fraud or otherwise abused the program.” “Today we are sending a clear message that compliance with program rules is non-negotiable, especially when supporting the nation’s small businesses during the pandemic,” said SBA OIG’s Assistant Inspector General for Investigations Shafee Carnegie. “This settlement highlights our dedication to preserving the integrity of the Paycheck Protection Program and holding entities accountable for misusing taxpayer-funded programs. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their support and commitment to pursuing justice in this case.” “Today’s settlement resolves allegations that this financial services company sought to cash in on a public health crisis by inflating the loan applications of small business owners as well as intentionally profiting off of fraudulent loan applications,” said Jodi Cohen, Special Agent in Charge of the FBI Boston Division. “Anyone who tries to defraud the government and taxpayers like this will be held accountable by the FBI and our partners because every dollar diverted for fraudulent reasons is a dollar not available for legitimate applicants in need.” The first settlement, which provides the United States with a claim for recovery of up to $63.2 million, resolves allegations that Kabbage systemically inflated tens of thousands of PPP loans, causing the SBA to guarantee and forgive loans in amounts that exceeded what borrowers were eligible to receive under program rules. As part of the settlement, KServicing Wind Down Corp. admitted and acknowledged that Kabbage double-counted state and local taxes paid by employees in the calculation of gross wages; failed to exclude annual compensation in excess of $100,000 per employee; and improperly calculated payments made by employers for leave and severance. The United States alleged that Kabbage was aware of its errors as early as April 2020, yet Kabbage failed to remedy all incorrect loans that had already been disbursed and continued to approve additional loans with miscalculations. The resolution also provides for Kabbage to receive a $12.5 million credit for payments it previously returned to the SBA during the Department’s investigation of this alleged misconduct. The second settlement, which provides the United States with a claim for recovery of up to $56.7 million, resolves allegations that Kabbage knowingly failed to implement appropriate fraud controls to comply with its PPP and BSA/AML obligations. In particular, the United States allege that Kabbage removed underwriting steps from its pre-PPP procedures in order to process a greater number of PPP loan applications and maximize processing fees. The government further alleged that Kabbage knowingly set substandard fraud check thresholds despite knowledge of SBA’s concerns that fraudulent borrowers might seek to benefit from the PPP; relied on automated tools that were inadequate in identifying fraud; devoted insufficient personnel to conduct fraud reviews; discouraged its fraud reviewers from requesting information from borrowers to substantiate their loan requests; and submitted to the SBA thousands of PPP loan applications that were fraudulent or highly suspicious for fraud. The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act in two actions, one by an accountant who submitted PPP loan applications to Kabbage and other lenders; and the other by a former legal analyst in Kabbage’s collections department. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. The qui tam cases are captioned United States ex rel. Berteletti v. Kabbage, Inc., et al., No. 1:20-cv-12114-GAO (D. Mass.) and United States ex rel. Pietschner v. Kabbage, Inc., et al., No. 4:21-cv-110-SDJ (E.D. Tex.). Congress created the PPP in March 2020, as part of the Coronavirus Aid, Relief and Economic Security (CARES) Act, to provide federally guaranteed loans to small businesses suffering economic hardship due to the COVID-19 pandemic. The SBA administers the PPP. The CARES Act authorized private lenders to approve PPP loans for eligible borrowers who could later seek forgiveness of the loans, so long as they used loan funds on employee payroll and other eligible expenses. Among other things, the Cares Act/SBA required participating PPP lenders to confirm borrowers’ average monthly payroll costs by reviewing the payroll documentation submitted with the borrower’s application. The Cares Act/SBA also required lenders to follow applicable Bank Secrecy Act/Anti-Money Laundering (BSA/AML) requirements. So long as the lender adhered to PPP requirements, the SBA guaranteed any unforgiven or defaulted PPP loans. The SBA paid a fixed fee calculated as a percentage of the loan to lenders who originated PPP loans. On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The task force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus . Tips and complaints from all sources about potential fraud affecting COVID-19 government relief programs can be reported by visiting the webpage of the Civil Division’s Fraud Section, which can be found here . Anyone with information about allegations of attempted fraud involving COVID-19 can also report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form . Acting U.S. Attorney Levy; Principal Deputy AAG Boynton; U.S. Attorney Featherston; GC Meers; Assistant IG Carnegie and FBI SAC Cohen made the announcement today. Valuable assistance was provided by the Federal Reserve Board, Office of Inspector General; the Federal Deposit Insurance Corporation, Office of Inspector General; and SBA’s Office of General Counsel and Office of the Inspector General. This matter was handled by Assistant U.S. Attorney Brian M. LaMacchia, Chief of the Affirmative Civil Enforcement Unit and Assistant U.S. Attorney Diane Seol for the U.S. Attorney’s Office for the District of Massachusetts; Fraud Section Trial Attorney Sarah E. Loucks; and Assistant U.S. Attorney Betty Young for the U.S. Attorney’s Office for the Eastern District of Texas. Corporate/ Financial Litigation Section Trial Attorneys Alastair Gesmundo, Stanton McManus and Shane Huang represented the United States in the bankruptcy proceeding.