title: U.S. Attorney’s Office Collects Over $18 Million in Civil and Criminal Actions and Over $18 Million More in Asset Forfeiture Actions in Fiscal Year 2023

component: Asset Forfeiture Program

body_text: RALEIGH, N.C. – The United States Attorney’s Office for the Eastern District of North Carolina (USAO-EDNC) collected $18,157,710.06 in criminal and civil actions in Fiscal Year (FY) 2023. Of this amount, $11,126,086.93 was collected in criminal actions and $7,031,623.13 was collected in civil actions. Additionally, EDNC worked with other U.S. Attorney’s Offices and components of the Department of Justice (DOJ) to collect an additional $72,909.66 in cases pursued jointly by these offices. This amount was collected in criminal actions. “We are committed to using every tool available to aggressively collect restitution for victims, criminal fines, and recover taxpayer dollars lost to fraud and owed to government agencies,” said U.S. Attorney Michael Easley. “We are proud of the men and women in our office who have worked so hard to ensure justice through their collection efforts which ultimately restore funds to crime victims and support law enforcement.” The successful collection efforts included the collection of substantial funds from joint and several co-defendants, George Garven, William Davis, and Robert Helms, fully satisfying a criminal restitution judgment awarding $1,850,442.00 to Baker Roofing Company (BRC), the victim of a fraudulent contract billing scheme. Specifically, BRC hired Garven in 2011 to serve as the Vice President and General Manager of its Charlotte, North Carolina, branch office. In 2014, Helms and Davis partnered together to provide roofing subcontracting services to BRC through Davis’s business, R&K Davis Holdings (R&K). Between 2015 and 2020, R&K was used as a vehicle to fraudulently bill BRC for subcontracting work that was never performed. Among other things, Garven obligated BRC to pay R&K by generating fake invoices and subcontracts in R&K’s name. The criminal proceeds were funneled into business bank accounts controlled by Helms and Davis and then disbursed to Garven in various forms, including gift cards and checks. The checks included fraudulent memo lines to make it appear they were related to legitimate business. Garven also directed Helms and Davis to use the embezzled funds to pay contractors to perform work on Garven’s residential properties. In furtherance of the scheme, Garven paid Helms and Davis each approximately $140,000 in cash. EDNC ultimately collected the full restitution amount from the defendants. An earlier press release about the underlying criminal case can be found at https://www.justice.gov/usao-ednc/pr/co-conspirators-sentenced-stealing-over-18-million-fake-billing-scheme . In another example of successful enforcement, EDNC fully collected on a False Claims Act judgment in excess of $1 million against Jeffrey G. Hedges, related to false healthcare billing practices. Specifically, the government alleged that under Hedges’ control, a medical clinic located in Durham, North Carolina, systematically defrauded the Medicare Program in a variety of ways. But perhaps most egregiously of all, the clinic almost always billed medical services performed by non-physicians under the higher billing rate of the clinic’s nominal owner and medical director, even though she did not actually treat patients and was hardly ever physically present when services were provided. Based on evidence presented by the government, the Court concluded that Hedges and one of his companies violated the False Claims Act with respect to billing under the medical director and ordered them to pay $1,097,975.24 to the United States. After the Court entered judgment against Hedges and his company, the United States demanded payment, but Hedges failed to comply. The government therefore initiated enforced collection, obtained writs of garnishment and execution to liquidate funds and property, and moved for a statutory 10-percent surcharge, which the Court awarded. In the end, Hedges paid the United States a total of $1,207,772.76, which fully satisfied the False Claims Act judgment and the 10-percent surcharge. The USAO-EDNC along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the United States and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs. Additionally, the USAO-EDNC, working with partner agencies and divisions, collected $18,067,902 in asset forfeiture actions in FY 2023. The EDNC’s successful forfeiture efforts included the criminal forfeiture of $4,635,346.24 in property derived from or traceable to health care fraud. Tanya Parrish Grant was criminally indicted on June 16, 2021, and charged with defrauding Medicare by submitting false and fraudulent claims for Durable Medical Equipment. After conviction, Grant was ordered to pay a forfeiture money judgment of $6,449,155.09, representing the total gross proceeds that she wrongfully obtained as a result of the fraud. Of this amount, law enforcement agents and financial investigators were able to trace criminally derived funds into real estate, numerous bank accounts, luxury vehicles and other personal property valued at approximately $4.6 million, which the government was able to seize, liquidate, and apply toward the forfeiture money judgment. Earlier press releases about the underlying criminal case can be found at https://www.justice.gov/usao-ednc/pr/ceo-raleigh-healthcare-company-pleads-guilty-multi-million-dollar-healthcare-fraud and https://www.justice.gov/usao-ednc/pr/ceo-raleigh-healthcare-company-sentenced-80-months-prison-multi-million-dollar . In another example of a successful forfeiture effort in FY 2023, the EDNC civilly forfeited $198,400.47 seized from a bank account containing proceeds of a business-email-compromise scheme, where one or more criminal fraudsters used a spoofed email to fraudulently request that an eastern North Carolina law firm update bank account information for a legitimate real estate closing. Once the victim law firm updated the account information, real estate closing funds were diverted into a fraudulent account which was the subject of the civil forfeiture proceeding. The U.S. Secret Service was notified of the fraud and worked with the USAO-EDNC to freeze, seize, and forfeit the entire balance of the fraudulent account as proceeds traceable to wire fraud. Forfeited assets deposited into the DOJ Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes. The DOJ, for instance, restored $6,389,937 of forfeited assets in FY 2023, which is used to compensate the victims of crimes prosecuted by this office.


title: Federal Jury Finds Conspirators Guilty Of Embezzling  Hundreds Of Thousands Of Dollars From Higher Education Institution

component: USAO - Florida, Middle

body_text: Tampa, Florida – United States Attorney Roger B. Handberg announces that a federal jury has found Andrea Mitchell (54, Tampa) and Lester Best (53, Tampa) guilty of conspiring to commit wire fraud and 22 substantive counts of wire fraud. Mitchell was also found guilty of two counts of aggravated identity theft. Mitchell and Best each face a maximum penalty of 20 years in federal prison on each of the conspiracy and fraud counts. Mitchell faces an additional 2-year mandatory consecutive sentence on the aggravated identity theft counts. A sentencing date has not yet been set. Mitchell and Best were indicted in December 2022. According to testimony and evidence presented at trial, Mitchell served as a financial services manager at a higher education institution in the Middle District of Florida. Mitchell, Best, and their coconspirators used her position to embezzle hundreds of thousands of dollars from the institution. Mitchell stole the identities of current and former students at the higher education institution and then used their student identification numbers to access their student sponsorship accounts. Mitchell identified refunds in these accounts made by the higher education institution to a tuition management business and/or a college savings program on behalf of the students and, thereby, located entries reflecting illusory balances in the students’ sponsorship accounts. Mitchell used the illusory balances to create the appearance of funds to back fraudulent checks. She then caused the higher education institution to issue the checks in the names of multiple coconspirators who had been recruited by Best to negotiate the bogus checks. None of these coconspirators were students at the higher education institution. The coconspirators cashed or deposited the fraudulent checks at various financial institutions and then shared the proceeds. As a result, the higher education institution lost more than $835,000. This case was investigated by the Tampa Police Department, the Federal Bureau of Investigation, and the United States Secret Service. It is being prosecuted by Assistant United States Attorney Candace Garcia Rich.


title: Canadian Man Pleads Guilty to $30 Million Magazine Fraud Scheme Targeting Elders

component: USAO - Minnesota

body_text: MINNEAPOLIS – A Canadian man has pleaded guilty on the first day of trial to his role in a $30 million nationwide telemarketing fraud scheme that targeted elderly and vulnerable victims, announced U.S. Attorney Andrew M. Luger. According to court documents, Abdou Diallo, also known as Abdou-Rahmane Diallo, 36, of Montreal, Quebec, was a co-owner and operator of Readers Services, a Canadian-based company that carried out a telemarking fraud scheme. From 2011 through 2020, Diallo and other participants of the fraud scheme targeted people who had previously been victimized by fraudulent magazine companies and were currently being billed by one or more fraudulent magazine companies on an ongoing basis—and used this vulnerability to victimize them all over again through promises of being able to cancel their unwanted magazine subscriptions. Diallo pretended to be from the “magazine cancellation department” and offered to pay off the victims’ “outstanding balance” and cancel their existing magazine subscriptions in exchange for a large, lump-sum payment. In reality, the victims did not owe Diallo or his company any money and Diallo had no power or ability to cancel the victims’ existing magazine subscriptions or any outstanding balances. As a result of this “piggyback” fraud scheme, Diallo and other participants in the fraud scheme defrauded more than 20,000 victims—many of whom were elderly and vulnerable—across the United States out of approximately $30 million. Diallo pleaded guilty today in U.S. District Court before Judge John R. Tunheim to two counts of wire fraud. A sentencing hearing is scheduled for June 5, 2024. This case is the result of an investigation conducted by the United States Postal Inspection Service and the Federal Bureau of Investigation. Additional assistance was provided by Homeland Security Investigations, the Treasury Inspector General for Tax Administration (TIGTA), and the Minnesota Attorney General’s Office. Assistant U.S. Attorneys Harry M. Jacobs and Garrett S. Fields are prosecuting the case.


title: District Man Sentenced to Five Years in Prison for Kidnapping and Assaulting a Minor

component: USAO - District of Columbia

body_text: WASHINGTON – Donte Johnson, 38 years old, of Washington, D.C., was sentenced, in the Superior Court of the District of Columbia on March 1, 2024, to 60 months in prison on one count of kidnapping, announced by U.S. Attorney Matthew M. Graves and Chief Pamela Smith, of the Metropolitan Police Department (MPD). According to the evidence, on May 20, 2023, outside of the Deanwood Metro Center located in the 4700 block of Minnesota Ave, Northeast, the female victim (then 17 years of age) was commuting home from work and traveled by train to the metro station where her mother and sisters were going to pick her up in their car. The victim was crossing the street to go to her mother’s car when the defendant came from behind her and wrapped his arm around her neck. The victim attempted to fight the defendant off of her, but he pulled her to the ground and then pressed his body on her. The defendant then tried to pull the victim’s pants down. The victim was not able to break free of the defendant until two eyewitness strangers came to her rescue and were able to pull the defendant off of the victim. Shortly after the incident officers arrived and witnesses identified the defendant, who was still on scene, as the individual who assaulted the victim. He was placed under arrest. On September 26, 2023, the defendant plead guilty to one count of kidnapping, without any caps or other restrictions on the government’s recommendation at sentencing. The Honorable Marisa J. Demeo sentenced Johnson to 60 months of incarceration, to be followed by five years of supervised release. Johnson will be required to register as a sex offender for 10 years after his released. In announcing the sentence, U.S. Attorney Graves and Chief Smith commended the work of those who investigated the case from the Metropolitan Police Department. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorney Marco Crocetti, who investigated and prosecuted the case.


title: One Princeton Man Pleads Guilty, Another Sentenced to Prison in Federal Drug Case

component: USAO - West Virginia, Southern

body_text: BLUEFIELD, W.Va. – Today, Dailen Isaiah Defoe, 20, of Princeton, pleaded guilty to distribution of fentanyl and Malachi Damonte Cooper, 22, of Princeton, was sentenced to eight years in prison, to be followed by four years of supervised release, for possession with intent to distribute 40 grams or more of fentanyl and 50 grams or more of methamphetamine. According to court documents and statements made in court, on December 8, 2022, law enforcement officers executed a search warrant at a Bluefield residence where Defoe and Cooper were staying. Officers found 734 grams of methamphetamine, approximately 130 grams of fentanyl, digital scales, a money counter, a Micro Draco 7.62mm semi-automatic pistol, a Glock 9mm pistol loaded with a 30-round magazine, and over $23,000. Defoe and Cooper admitted that they possessed the controlled substances and intended to distribute them. Defoe further admitted to selling a quantity of fentanyl to a confidential informant in Princeton on August 19, 2021. Defoe also admitted to selling additional quantities of fentanyl to the confidential informant in Princeton on August 23 and August 31, 2021. On August 31, 2022, law enforcement officers executed a search warrant at a residence where Defoe was staying in Princeton. Officers found approximately 375 grams of methamphetamine, 774 grams of fentanyl, 13 grams of heroin, three semi-automatic handguns, two drum magazines, various other firearm magazines and ammunition, and several thousand dollars. Defoe admitted that he possessed the controlled substances and intended to distribute them. Defoe is scheduled to be sentenced on June 10, 2024, and faces a maximum penalty of 20 years in prison, at least three years of supervised release, and a $1 million fine. United States Attorney Will Thompson made the announcement and commended the investigative work of the Southern Regional Drug and Violent Crime Task Force. The task force consists of members of the West Virginia State Police, the Bluefield Police Department, the Princeton Police Department, the Mercer County Sheriff’s Department, the McDowell County Sheriff’s Department, and the Wyoming County Sheriff’s Department. Senior United States District Judge David A. Faber presided over the hearings. Assistant United States Attorney Andrew D. Isabell prosecuted the case. A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 1:23-cr-119. ###


title: Richmond Resident Charged With Smuggling Ammunition From United States To Brazil

component: USAO - California, Northern

body_text: OAKLAND - A federal grand jury indicted Edijalma De Souza Ferreira, charging him with smuggling ammunition from the United States to Brazil without an export license, announced United States Attorney Ismail J. Ramsey and Homeland Security Investigations (HSI) Special Agent in Charge Tatum King. According to the indictment, filed February 27, Ferreira, 46, of Richmond, Calif., smuggled thousands of rounds of ammunition in two container shipments that were exported from the Port of Oakland in 2021. Export of the ammunition was contrary to the Export Control Reform Act and associated regulations. The indictment charges Ferreira with a felony violation of 18 U.S.C. § 554. Ferreira was arrested on February 29, 2024, and made his initial appearance in federal court in Oakland the same day. He was released on bond and his next appearance is scheduled for March 6, 2024, before U.S. Magistrate Judge Donna M. Ryu for identification of counsel. An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, Ferreira faces a maximum sentence of ten years of imprisonment, and a fine of $250,000 for the 18 U.S.C. § 554 violation. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553. Assistant U.S. Attorney Michelle J. Kane is prosecuting the case with the assistance of Kathy Tat. The prosecution is the result of an investigation by HSI with assistance from the U.S. Department of Commerce, the U.S. Customs and Border Protection Container Security Initiative, the HSI Brasilia Attaché Office, and the Customs and Revenue Service of Brazil.


title: Harrison County man sentenced for federal income tax violation

component: USAO - Texas, Eastern

body_text: MARSHALL, Texas – A Marshall man has been sentenced for a federal income tax violation in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs. Boyd Lynn Butcher, 51, pleaded guilty to aiding and assisting in the preparation of false tax returns and was sentenced to 36 months in federal prison by U.S. District Judge Rodney Gilstrap on Feb. 27, 2024. Butcher was also ordered to pay restitution in the amount of $317,252.00. According to information presented in court, between 2015 and 2017, Butcher operated a tax preparer service under the name Boyd’s Tax Service. During that time, he prepared more than 450 federal tax returns for third parties in exchange for a fee even though he was not authorized by the IRS to prepare tax returns for others. When preparing many of those returns, Butcher created false or fraudulent information to generate unwarranted tax refunds. In total, IRS determined that Butcher caused a tax harm to the IRS of more than $317,252.00. For example, Butcher prepared a 2015 tax return using tax software designed for taxpayers who self-prepare returns. The return did not reflect the fact that Butcher had prepared and filed it on behalf of another individual. The return falsely and fraudulently stated that the taxpayer was entitled under the provisions of federal laws to claim car and truck expenses from a farming business. Butcher admitted that he knew that the statement in the return was false and fraudulent because the taxpayer did not have a farming business. Butcher admitted that he knew the return was false and that he had a duty to prepare returns in a lawful manner. “Mr. Butcher’s fraudulent actions, which included fabricating deductions that were false and misleading, not only abused the trust of sixteen people who relied on Mr. Butcher’s services, but also undermined the very foundations of our tax and government systems,” said U.S. Attorney Damien M. Diggs. “Butcher effectively stole $300,000 from the American people. We appreciate the hard work of the Internal Revenue Service as we continue to work with our partners to uphold the values of justice and fairness.” “Boyd Butcher took advantage of those who trusted him to prepare their tax by filing incorrect, misleading, and false information to inflate their returns,” said Christopher J. Altemus Jr., special agent in charge of the IRS Criminal Investigation’s Dallas Field Office. “Mr. Butcher’s actions amount to stealing from the Federal Government and his sentencing holds him accountable for his actions. In addition to the three years he will spend in prison, he must pay restitution of more than $300,000 for the tax harm done to his 16 victims.” The case was investigated by the Internal Revenue Service-Criminal Investigation and prosecuted by Assistant U.S. Attorney Dustin Farahnak. ###


title: Readout of Office for Access to Justice Director Rachel Rossi’s Trip to Arizona

component: Office for Access to Justice

body_text: Director Rachel Rossi of the Office for Access to Justice (ATJ) traveled to Tempe, Mesa and Phoenix, Arizona, to engage access to justice stakeholders and deliver open plenary remarks at the Access to Justice and Future of Justice Work Conference. Director Rossi met with the U.S. Attorney Gary Restaino for the District of Arizona, where she discussed and applauded the office’s commitment to pro bono work. Additional meetings included the Federal Public Defender for the District of Arizona and the Director of Public Defense Services of Maricopa County to discuss support for criminal justice, public defense and access to justice. She also met with the Arizona Access to Justice Commission and the Arizona Bar Foundation to discuss state-level efforts to promote and expand civil legal services and improve Arizonans’ access to civil justice, including the recently convened State Agency Forum on Access to Justice. Additionally, Director Rossi and ATJ staff met with legal services organizations about the significant challenges they face in providing basic legal needs, particularly in Tribal communities. They met with stakeholders who are part of a collaboration among five legal services organizations that will use non-attorney community justice workers to provide disaster legal services in American Indian and Alaska Native communities. The meeting included leaders and staff from Montana Legal Services, Anishinaabe Legal Services, DNA People’s Legal Services, Oklahoma Legal Services and Alaska Legal Services Corporation. Following the convening, Director Rossi and ATJ visited two cutting-edge legal services programs run by Innovation for Justice, a legal innovation lab based in Arizona and Utah. As part of the visit, Director Rossi met with representatives from the Housing Stability Legal Advocate Initiative and the Domestic Violence Legal Advocate Initiative. ATJ heard about needs of the community and learned about the programs’ empowerment of community members to provide legal help with housing and domestic violence matters. In the meeting, advocates presented examples of the community-based justice worker nonlawyer program and provided an overview of their legal services design process. The Access to Justice and Future of Justice Work Conference focused on ways in which trained nonlawyers and community justice workers can play a significant role in advancing access to justice. In her opening plenary remarks, Director Rossi highlighted recent efforts of ATJ to advance bold and creative solutions to civil justice gap, including the 2023 Legal Aid Interagency Roundtable report, Access to Justice in Federal Administrative Proceedings: Nonlawyer Assistance and Other Strategies . She highlighted the report’s compilation of numerous, varied ways in which nonlawyers provide legal representation and advice in federal agency administrative proceedings and how those uses can serve as an example for access to justice efforts throughout the U.S. Director Rachel Rossi and ATJ staff met with legal services organizations about the significant challenges encountered in providing basic legal needs to the communities. Director Rachel Rossi and ATJ staff met with Innovation for Justice, a legal innovation lab based in Arizona and Utah. Director Rachel Rossi delivers remarks during the Opening Plenary for the Access to Justice and the Future of Justice Work Conference.


title: Air National Guardsman Agrees to Plead Guilty to Unlawfully Disclosing Classified National Defense Information

component: Federal Bureau of Investigation (FBI)

body_text: Jack Douglas Teixeira, 22, of North Dighton, Massachusetts, a member of the U.S. Air National Guard (USANG) stationed in Massachusetts, has agreed to plead guilty to retaining and transmitting classified National Defense Information on a social media platform beginning in or around 2022 and continuing until his arrest in April 2023. Teixeira has agreed to plead guilty to six counts of willful retention and transmission of classified information relating to the national defense (National Defense Information). “By knowingly and improperly posting classified national defense information on a social media platform, Mr. Teixeira callously disregarded the national security of the United States and betrayed the trust of the American people he swore to protect,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “With today’s plea, the Department of Justice holds Mr. Teixeira accountable for his actions and makes clear the gravity of the responsibility to protect classified information and our national security.” “Mr. Teixeira exploited his Top-Secret security clearance to share our nation’s secrets on a social media platform. He violated his oath to preserve, protect and defend and, in doing so, he undermined our national security and risked the safety of Americans serving overseas and our allies,” said Acting U.S. Attorney Joshua S. Levy for the District of Massachusetts. “Every instance of mishandling classified information weakens our defense and compromises our ability to thwart potential threats. We cannot afford to underestimate the gravity of this conduct; it has far-reaching consequences that transcend individual interests.” “Today, Jack Teixeira admitted he retained and disclosed classified national security information, actions that benefit our nation’s adversaries and harm U.S. security,” said Executive Assistant Director Larissa L. Knapp of the FBI’s National Security Branch. “Individuals granted security clearances are entrusted with protecting our nation’s most sensitive secrets, and Teixeira knowingly betrayed that trust and put the country at risk. The FBI will continue to work with our partners to hold accountable anyone who would endanger our national security interests.” Teixeira was arrested in April 2023 and charged by criminal complaint with retention and transmission of national defense information and unauthorized removal and retention of classified documents or materials. He was subsequently indicted by a federal grand jury in Boston in June 2023. He has remained detained in federal custody since his arrest. According to the charging documents, Teixeira enlisted in the USANG in September 2019 and has held a Top-Secret security clearance since 2021. It is alleged that, beginning in or around January 2022, Teixeira unlawfully retained and transmitted National Defense Information classified as “TOP SECRET” or “SECRET” and/or Sensitive Compartmented Information (SCI), onto a social media platform to persons not authorized to receive such information. Teixeira allegedly accessed classified documents containing National Defense Information from a classified workstation at the Otis USANG Base and transcribed and transmitted the information in written paragraphs to other users on the social media platform. Teixeira also allegedly posted images of classified documents to the social media platform, which bore standard classification markings – including “SECRET,” “TOP SECRET” and SCI designations – indicating that they contained highly classified U.S. government information. The charges of unauthorized retention and transmission of national defense information each carry a maximum penalty of up to 10 years in prison, up to three years of supervised release and a fine of up to $250,000. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. The FBI is investigating the case, with valuable assistance provided by Naval Criminal Investigative Service and the Air Force Office of Special Investigations. Assistant U.S. Attorneys Nadine Pellegrini, Jared C. Dolan and Jason A. Casey for the District of Massachusetts and Trial Attorney Christina A. Clark of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case.


title: Schenectady Man Pleads Guilty to Possessing Methamphetamine with Intent to Distribute

component: USAO - New York, Northern

body_text: ALBANY, NEW YORK – Ocyris Morgan, age 36, of Schenectady, New York, pled guilty today to possessing methamphetamine with the intent to distribute it. United States Attorney Carla B. Freedman and Craig L. Tremaroli, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), made the announcement. Morgan admitted that he intended to sell the 21.4 grams of methamphetamine law enforcement seized from his house on June 1, 2023, and when he overheard agents saying they found between one-half and one ounce of methamphetamine, Morgan corrected them, “21.7, to be exact.” Morgan also admitted to receiving $10,130 over the course of 12 instances in which he sold a total of 93 grams of methamphetamine and 50 grams of cocaine base to several customers. He further admitted to possessing a firearm and bullet proof vest. When sentenced by Chief United States District Judge Brenda K. Sannes, Morgan faces a mandatory prison term of at least 5 years and up to 40 years, a fine of up to $5 million, and a term of supervised release of at least 4 years and up to life. 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. The FBI’s Capital District Safe Streets Task Force – made up of FBI Special Agents, as well as members of other federal, state and local law enforcement agencies including the Schenectady Police Department – investigated the case. Assistant U.S. Attorney Jonathan S. Reiner is prosecuting the case.


title: Chief Executive Officer Of A Las Vegas-Based Company Convicted For Multimillion-Dollar Fraud And Money Laundering Scheme

component: USAO - New York, Southern

body_text: Damian Williams, the United States Attorney for the Southern District of New York, announced today that MARTIN MIZRAHI, a/k/a “Marty Mizrahi,” was convicted of wire fraud, bank fraud, money laundering, aggravated identity theft, and other offenses for his participation in multiple schemes to defraud banks and credit card companies of almost $8 million and to launder more than $4 million in fraud and illegal narcotics proceeds. The verdict followed a 12-day trial before U.S. District Judge J. Paul Oetken. U.S. Attorney Damian Williams said: “Martin Mizrahi brazenly used his company as a front to launder millions of dollars in drug and fraud proceeds and to deceive credit card companies into processing additional millions of dollars in sham charges. The jury’s unanimous verdict sends a resounding message that individuals who steal and introduce illicit funds into the U.S. financial system will be held accountable.” According to the evidence presented in court during the trial: From at least in or about February 2021 through at least in or about June 2021, MIZRAHI and his co-defendants participated in multiple schemes to defraud banks and credit card companies and to launder narcotics proceeds in addition to the fraud proceeds received. Beginning in or about February 2021, MIZRAHI began accepting bulk cash narcotics proceeds, which he laundered for individuals associated with a Mexican-based cartel by converting the money into Bitcoin and then sending it to anonymous cryptocurrency wallets provided to him by co-conspirators. In addition, MIZRAHI laundered fraud proceeds sent to his company by wire transfer, which he also converted into cryptocurrency before sending it to anonymous cryptocurrency wallets. Those funds were obtained through, among other things, a business email compromise scheme in which a New York City-based non-profit organization had more than $3 million dollars stolen from it by hackers. Between February and June 2021, MIZRAHI laundered a total of more than $4 million in fraud and narcotics proceeds. In addition, between April and June 2021, MIZRAHI participated in a credit card fraud scheme in which he ran nearly $8 million in fraudulent credit card charges through his company. Those charges were run on multiple credit cards issued in the names of third parties, some of which had been stolen, and without any legitimate work being done or services being provided. As part of the scheme, MIZRAHI prepared false invoices which he sent to banks and credit card companies to justify the charges. * * * MARTIN MIZRAHI, 51, of Las Vegas, Nevada, was convicted of (i) conspiracy to commit wire fraud and bank fraud, which carries a maximum sentence of 30 years in prison; (ii) wire fraud, which carries a maximum sentence of 20 years in prison; (iii) bank fraud, which carries a maximum sentence of 30 years in prison; (iv) conspiracy to commit money laundering, which carries a maximum sentence of 20 years in prison; (v) money laundering, which carries a maximum sentence of 20 years in prison; (vi) aggravated identity theft, which carries a mandatory minimum sentence of two years in prison to run consecutively to any other prison terms imposed; and (vii) conspiracy to operate an unlicensed money transmitting business, which carries a maximum sentence of five years in prison. The minimum and maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge. Mr. Williams praised the Federal Bureau of Investigation for its outstanding work on the investigation. The prosecution of this case is being handled by the Office’s White Plains Division and the Illicit Finance and Money Laundering Unit. Assistant U.S. Attorneys Benjamin Klein and Emily Deininger are in charge of the prosecution, with the assistance of Paralegal Specialists Dean Iannuzzelli and Nerlande Pierre.


title: Spring Hill Resident Sentenced To Federal Prison For Trafficking Florida Box Turtles, Loggerhead Musk Turtles, And Ornate Diamondback Terrapins

body_text: Tampa, Florida – U.S. District Judge Steven D. Merryday has sentenced Kevin Olbrych (48, Spring Hill) to 15 months in federal prison followed by 3 years of supervised release for Lacey Act trafficking of Florida box turtles, loggerhead musk turtles, and ornate diamondback terrapins. The Court also permanently enjoined Olbrych from possessing, caring for, transporting, selling, transferring, or distributing any animals, and ordered him to pay $7,500 to the Lacey Act Reward Fund. The Lacey Act Reward Fund is a Congressionally authorized fund available to pay for the care, treatment, and rehabilitation of wildlife pending their disposition at the conclusion of civil and criminal matters and to compensate witnesses and cooperators in criminal investigations. Olbrych entered a guilty plea on November 17, 2023. According to court documents, the Tampa Police Department executed an unrelated search warrant at Olbrych’s residence in 2018. During the search, law enforcement discovered several 300-gallon pools filled with turtles and other containers for the rearing of turtles. In total, Olbrych unlawfully possessed 120 turtles. The animals were not housed properly, and Olbrych did not have proper licensure to possess them. Law enforcement confiscated the turtles and turned them over to an individual qualified to rehabilitate them on behalf of the Florida Fish and Wildlife Conservation Commission. After the search, the U.S. Fish and Wildlife Service began investigating Olbrych and discovered that for years he had illegally sold turtles to a co-conspirator in Oregon who later sold them to buyers in China. Further investigation revealed that even after law enforcement seized the turtles from Olbrych’s home in 2018, he continued to traffic in turtles through 2021, including the ornate diamondback terrapin depicted below. "Ensuring wildlife conservation through effective law enforcement, meeting regulatory requirements, and promoting compliance is paramount,” said U.S. Fish and Wildlife Service Special Agent in Charge Douglas Ault. “Our investigation led to another successful conviction in the continuous illegal turtle trade, highlighting the ongoing difficulties in safeguarding vulnerable species. These investigations underscore the vital need for rigorous law enforcement actions to uphold conservation laws and protect biodiversity worldwide.” This case was investigated by the U.S. Fish and Wildlife Service, with substantial assistance from the Tampa Police Department and the Florida Fish and Wildlife Conservation Commission. It was prosecuted by Assistant United States Attorney Erin Claire Favorit.


title: Air Force Employee Indicted for Unlawful Disclosure of Classified National Defense Information

body_text: A civilian employee of the U.S. Air Force assigned to the U.S. Strategic Command (USSTRATCOM), at Offutt Air Force Base, was arrested Saturday, March 2, for allegedly conspiring to transmit and transmitting classified information relating to the national defense (National Defense Information or NDI) on a foreign online dating platform beginning in or around February 2022 until in or around April 2022. According to the indictment, David Franklin Slater, 63, of Nebraska, worked in a classified space at USSTRATCOM and held a Top Secret security clearance from in or around August 2021 until in or around April 2022, after retiring as a Lieutenant Colonel from the U.S. Army. It is alleged that Slater willfully, improperly, and unlawfully transmitted NDI classified as “SECRET,” which he had reason to believe could be used to the injury of the United States or to the advantage of a foreign nation, on a foreign online dating platform to a person not authorized to receive such information. “As alleged, Mr. Slater, an Air Force civilian employee and retired U.S. Army Lieutenant Colonel, knowingly transmitted classified national defense information to another person in blatant disregard for the security of his country and his oath to safeguard its secrets,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “The Department of Justice will seek to hold accountable those who knowingly and willfully put their country at risk by disclosing classified information.” “Certain responsibilities are incumbent to individuals with access to Top Secret information. The allegations against Mr. Slater challenge whether he betrayed those responsibilities,” said U.S. Attorney Susan Lehr for the District of Nebraska. “We look forward to continuing our work with the FBI and the Air Force Office of Special Investigations to ensure the safety of our country.” “The FBI investigates those who choose to illegally use their access to classified information to put our national security at risk,” said Special Agent in Charge Eugene Kowel of the FBI Omaha Field Office. “When people violate the trust given to them to safeguard our nation's intelligence, they put our country at risk. We will continue working shoulder to shoulder with our partners to protect the American people and uphold the constitution by safeguarding our country's classified information.” According to the charging documents, Slater attended USSTRATCOM briefings regarding Russia’s war against Ukraine that were classified up to TOP SECRET//SENSITIVE COMPARTMENTED INFORMATION (TS//SCI). Slater then transmitted classified NDI that he learned from those briefings via the foreign online dating website’s messaging platform to his co-conspirator, who claimed to be a female living in Ukraine on the foreign dating website. The co-conspirator regularly asked Slater to provide her with sensitive, non-public, closely held and classified NDI and called Slater in their messages her “secret informant love” and her “secret agent.” In response to these requests, Slater indeed provided classified NDI to her, including regarding military targets and Russian military capabilities relating to Russia’s invasion of Ukraine. Slater will make his initial court appearance tomorrow, March 5, in the District of Nebraska. If convicted, Slater faces a maximum penalty of 10 years in prison, three years of supervised release, and a fine of up to $250,000 for each count of conspiracy to transmit and the transmission of national defense information. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. The FBI Omaha Field Office and Air Force Office of Special Investigations are investigating the case. Assistant U.S. Attorney Donald Kleine for the District of Nebraska and Trial Attorney Emma Dinan Ellenrieder of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case. An indictment is merely an allegation. All defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law. Slater Indictment


title: Franklin Man Charged With Dealing Firearms While on State Pretrial Release

component: USAO - Massachusetts

body_text: BOSTON – A former Worcester resident, currently residing in Franklin, has been charged with dealing in firearms without a license and receiving a firearm while under indictment in state court for separate firearm offenses. Juan Otero, 22, was charged with one count of dealing in firearms without a license and one count of receiving a firearm while under indictment. Otero was ordered detained following an initial appearance in federal court in Worcester on March 1, 2024 before Magistrate Judge David H. Hennessy. According to the charging documents, between Nov. 27, 2023 and Jan. 23, 2024, Otero sold five firearms on four different occasions. It is alleged that one of the firearms was a Glock pistol with a machinegun conversion device, also known as a “Glock switch,” attached. Otero also allegedly sold large capacity magazines and multiple rounds of ammunition. In 2022, Otero was indicted in Worcester Superior Court for multiple state crimes, including the unlawful possession of a large capacity weapon, unlawful possession of a loaded firearm, unlawful possession of a large capacity firearm and ammunition and attempted assault and battery. Otero was on release pending trial on the state court charges at the time of his firearm sales in this matter. The charges of dealing in firearms without a license and receipt of a firearm while under indictment both provide for a sentence of up to five years in prison, up to three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case. Acting United States Attorney Joshua S. Levy; James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Feld Division; John E. Mawn Jr., Interim Colonel of the Massachusetts State Police; and Paul Saucier Interim Police Chief of the Worcester Police Department made the announcement today. Valuable assistance was provided by the Drug Enforcement Administration and the Franklin, Mansfield and Auburn Police Departments. Assistant U.S. Attorney Kaitlin J. Brown of the Worcester Branch Office is prosecuting the case. This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.


title: Derry Woman Pleads Guilty to COVID-19 Fraud

component: USAO - New Hampshire

body_text: CONCORD – A Derry woman pleaded guilty today in federal court for her role in attempting to fraudulently obtain $2.5 million in COVID-19 pandemic relief funds, U.S. Attorney Jane E. Young announces. Tammy Dodge, 43, pleaded guilty to bank fraud. U.S. District Court Judge Paul J. Barbadoro scheduled sentencing for June 10, 2024. Dodge’s husband and co-conspirator, David Dodge, pled guilty on February 20, 2024, and is scheduled to be sentenced on May 29, 2024. The Dodges claimed to own or control multiple businesses in New Hampshire and Massachusetts, including Teacher Tammy (a/k/a Teacher Tammy’s), Optimized Operations, and Business Done Right. In reality, these companies had no operations and served no business purpose. In total, Tammy Dodge and her husband submitted 30 fraudulent applications for Paycheck Protection Program (PPP) loans from private lenders, Economic Injury Disaster Loans (EIDLs) from the Small Business Administration, and pandemic relief grants from the New Hampshire Governor’s Office for Emergency Relief and Recovery (GOFERR) and the Massachusetts Growth Capital Corporation (MGCC). Tammy Dodge used fake supporting documents in the applications. For example, on January 25, 2021, she applied for a $35,833 PPP loan for Teacher Tammy. She provided the lender a purported check and February 2020 bank statement for a TD Bank account in the name of Teacher Tammy. However, the account was under the defendant’s own name and did not even exist until June 2020. The defendant also provided fake tax documents. Overall, because lenders detected most of the fraudulent applications, the Dodges were able to obtain $219,323.34 out of the approximately $2.5 million they sought. They misused some of the fraudulently obtained funds. The charging statute provides a sentence of no greater than 30 years in prison, 5 years of supervised release, and a fine of $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case. The Treasury Inspector General for Tax Administration led the investigation. Assistant U.S. Attorney Alexander S. Chen is prosecuting the case. During the early part of the coronavirus pandemic, Congress passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The CARES Act included multiple relief provisions to help the millions of Americans and many small businesses adversely affected by the pandemic, including the Paycheck Protection Program (PPP). Private lenders could participate in the PPP. The loans, which were supposed to be used for payroll, were fully guaranteed by the government. If borrowers used the PPP loans for payroll and other approved expenses as intended, they could apply for loan forgiveness. The CARES Act also opened up the Small Business Administration’s (SBA) Economic Injury Disaster Loan (EIDL) program. As with PPP loans, EIDL loans were supposed to be used for payroll and other business expenses such as rent and mortgage. 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 Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form. ###


title: Court Sets Preliminary Hearing for Diego Ibarra at Initial Appearance

body_text: MACON, Ga. – Diego Ibarra, a Venezuelan citizen charged with possessing a fraudulent green card in Athens, Georgia, on Feb. 23, will have a standard preliminary hearing regarding probable cause and the government’s motion to detain on Thursday, March 7, at 10 a.m., as ordered by a U.S. Magistrate Judge at his initial appearance in federal court this afternoon. Diego Ibarra, 28, of Venezuela, is charged by criminal complaint with possession of a fraudulent document. If convicted, Ibarra faces a maximum of ten years in prison. Diego Ibarra is the brother of Jose Antonio Ibarra, 26, of Venezuela, who is facing state charges for malice murder, felony murder, aggravated battery, aggravated assault, false imprisonment, kidnapping, hindering a 911 call and concealing the death of another in the homicide of Laken Hope Riley. The case is being investigated by Homeland Security Investigations (HSI) with critical assistance from FBI, GBI, Athens-Clarke County Police Department, University of Georgia Police Department and Clarke County Sheriff’s Office. Assistant U.S. Attorney Mike Morrison is prosecuting the case. A complaint is only an allegation of criminal conduct, and all defendants are presumed innocent until and unless proven guilty in a court of law beyond a reasonable doubt.


title: Man convicted of multimillion-dollar international advance fee scheme

component: USAO - Texas, Southern

body_text: HOUSTON – A federal jury has convicted an Indiana man for his role in a multimillion-dollar international advance fee scheme orchestrated from Nigeria, announced U.S. Attorney Alamdar S. Hamdani. The jury deliberated for 45 minutes before convicting Tochukwu Nwosisi, 52, Indianapolis, Indiana, following a six-day trial. According to court documents and evidence presented at trial, from at least February 2015 to January 2018, Nwosisi participated in an advance fee scheme involving fraudulent offers of investment funding and inheritances to victims around the world. Co-conspirators based in Nigeria induced victims to make large wire payments to bank accounts in the United States on the false belief that payment of the purported advance fees was necessary before the bank would release their funding or inheritance. Nwosisi served as a money launderer who accepted victim funds into his U.S. bank accounts and directed the proceeds to the ringleaders in Nigeria. The jury heard that victims around the world have lost a combined total of more than $5.6 million. “Those who enable fraudsters by helping them move and hide money taken from victims are just as responsible for their crimes as the people who run the scam themselves,” said U.S. Attorney Alamdar S. Hamdani. “Nwosisi took nearly $1 million from victims to enrich himself and his co-conspirators. He deserves to face the consequences for his crimes.” The jury convicted Nwosisi of conspiracy to commit money laundering and concealment money laundering. He will be scheduled for sentencing at a later date. At that time, he faces a maximum penalty of 20 years in prison. To date, six others have been convicted for their roles in the scheme. Nwosisi was permitted to remain on bond pending sentencing. The FBI and Department of State - Office of Inspector General conducted the investigation. Assistant U.S. Attorney Christian Latham is prosecuting the case along with Trial Attorney Philip Trout of the Criminal Division’s Fraud Section of the Department of Justice.


title: Sacramento Man Sentenced to 7 Years in Prison for Being a Felon in Possession of a Firearm

component: USAO - California, Eastern

body_text: SACRAMENTO, Calif. — Shaun Jones, 29, of Sacramento, was sentenced today to seven years in prison for being a felon in possession of a firearm, U.S. Attorney Phillip A. Talbert announced. According to court documents, in August 2022, Jones and an associate sold a Glock 17, 9 mm gun to an informant working with law enforcement. In September 2023, Jones sold a Glock 17, 9 mm gun with an extended magazine to the same informant. Jones is prohibited from possessing firearms because he has previously been convicted of robbery, drug possession, and attempted burglary. This case was the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorneys Emily G. Sauvageau and Justin Lee prosecuted the case. This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the U.S. Department of Justice 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. For more information about Project Safe Neighborhoods, please visit Justice.gov/PSN .


title: Princeton Man Sentenced to Prison for Federal Gun Crime

body_text: BLUEFIELD, W.Va. – Kaleb Merritt, 27, of Princeton, was sentenced today to three years in prison, to be followed by three years of supervised release, for being a felon in possession of a firearm. According to court documents and statements made in court, on October 27, 2022, law enforcement officers arrested Merritt on a Virginia warrant at the Princeton business where he was working. Merritt told the officers that he had a firearm when they asked him if he had any weapons. Officers found a Glock model 43 pistol in Merritt’s pants pocket. Federal law prohibits a person with a prior felony conviction from possessing a firearm or ammunition. Merritt knew he was prohibited from possessing a firearm because of his prior felony conviction for first-degree arson in Mercer County Circuit Court on June 12, 2015. United States Attorney Will Thompson made the announcement and commended the investigative work of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the United States Marshals Service and the Cops United Felony Fugitive Enforcement Division (CUFFED) Task Force. Senior United States District Judge David A. Faber imposed the sentence. Assistant United States Attorney Timothy D. Boggess prosecuted the case. A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 1:22-cr-206. ###


title: Huntington Woman Pleads Guilty to Role in Illegal Gambling Business

body_text: HUNTINGTON, W.Va. – Allison Jones, 46, of Huntington, pleaded guilty today to conspiracy to conduct an illegal gambling business. According to court documents and statements made in court, from September 20, 2020 until October 1, 2022, Jones was the online host for an illegal gambling business. Jones admitted to conducting online games of chance for the illegal gambling business on Facebook Live from her Huntington residence. Jones further admitted that two primary administrators/organizers owned, directed, managed and controlled the illegal gambling business and that it also had several moderators who supervised the online games and handled any customer problems that arose during the games. Jones was among dozens of hosts who conducted the online games. The other members of the illegal gambling business were customers, online gamblers located throughout the United States who played the online games conducted by the illegal gambling business primarily by purchasing pull tabs from hosts. Jones paid a monthly fee to the administrators/organizers and agreed to the terms they set in exchange for the right to conduct games in the illegal gambling business. Jones admitted that she typically hosted two to three online games per week and made money as a host by selling pull tabs. Online customers would comment in the online comment section for the illegal gambling business to indicate how much money they were wagering and then transfer money to Jones via an external online payment system. Jones would then pull the tabs while the customers watched on Facebook Live. When a customer won prize money, Jones would send the winnings to the customer via the external online payment system. Jones received about 25 percent of the net sales of each box of pull tabs as her profit. Each box typically contained 4,000 tabs that Jones typically sold to customers for $1 a tab, earning her $600 to $800 per box. Jones further admitted that she purchased the pull tab games from a Charleston-area business about once per week with her profits from hosting online games. Jones is scheduled to be sentenced on June 17, 2024, and faces a maximum penalty of five years in prison, three years of supervised release, and a $250,000 fine. United States Attorney Will Thompson made the announcement and commended the investigative work of the U.S. Department of Homeland Security-Homeland Security Investigations (HSI) and the Federal Bureau of Investigation (FBI). United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorneys Andrew J. Tessman and Kristin F. Scott are prosecuting the case. A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:24-cr-21. ###


title: Bluefield Man Sentenced for Federal Fraud Crime

body_text: BLUEFIELD, W.Va. – Matthew Huffman, 37, of Bluefield, was sentenced today to three years of federal probation, including 90 days on home detention with location monitoring, and ordered to pay $45,258.51 in restitution for theft or embezzlement in connection to healthcare services. Huffman admitted to stealing from the Southern Highlands Community Mental Health Center while employed as its chief substance use disorder officer. According to court documents and statements made in court, between October 2022 and January 2023, Huffman embezzled money from Southern Highlands including more than $5,000 it received from the Comprehensive Opioid, Stimulant, and Substance Use Program (COSSUP). Southern Highlands is a non-profit medical treatment center that offers a variety of services including addiction treatment. COSSUP grants are distributed, in part, to treat and support those impacted by illicit substance use and misuse. Huffman admitted that he forged signatures required to approve the use of COSSUP grants and other funds, and also used the names of patients and consumers no longer receiving services from Southern Highlands on the necessary forms. Huffman further admitted that he embezzled these funds for his personal gain, using the money to pay his utility bills, vehicle loan payments and to purchase gift cards and prepaid debit cards. United States Attorney Will Thompson made the announcement and commended the investigative work of the Mercer County Sheriff’s Department. Senior United States District Judge David A. Faber imposed the sentence. Assistant United States Attorneys Owen Reynolds and Andrew D. Isabell prosecuted the case. A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 1:23-cr-137. ###


title: Three Individuals Charged with Conspiracy to Commit Bank Fraud

component: USAO - Alabama, Northern

body_text: BIRMINGHAM, Ala. – A federal grand jury indicted three individuals for their role in operating a scheme to defraud Chase Bank, announced U.S. Attorney Prim F. Escalona and U.S. Postal Inspection Service Inspector-in-Charge Scott D. Fix, Houston Division. A three-count indictment filed in U.S. District Court charges Jon-Christopher Arrington Spencer , also known as “JC Spencer,” also known as “Money Mike,” 22, of Bessemer; Haley Monique Perkins , 21, of Pleasant Grove; and Jeffery Dwaine Moody , Jr., 22, of Birmingham with conspiracy and bank fraud. Spencer also was charged with theft of mail matter. The indictment alleges that between May 2022 and August 31, 2022, Spencer, Perkins, and Moody conspired together to defraud Chase Bank. To achieve this goal, the defendants obtained three fraudulent checks drawn on three businesses’ banking accounts. These three businesses had deposited checks after hours into the blue depository boxes at the Meadowbrook U.S. Post Office. Those three checks were then stolen from the depository boxes. The fraudulent checks were made payable to Moody and deposited into a Chase Bank account controlled by him. The defendants attempted twice to withdraw money for personal use from this Moody-controlled bank account. The total value of the checks deposited into the bank account and drawn on the accounts belonging to three separate businesses was more than $7,000. The maximum penalty for conspiracy to commit bank fraud is 30 years in prison. The maximum penalty for theft of mail matter is five years in prison. The U.S. Postal Inspection Service investigated the case. Assistant U.S. Attorney Brittney L. Plyler is prosecuting the case. An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.


title: Huntington Man Sentenced to Prison for Fentanyl Crime

body_text: HUNTINGTON, W.Va. – Jimmie Lee Holbrook, 43, of Huntington, was sentenced today to three years and one month in prison, to be followed by three years of supervised release, for distribution of fentanyl. According to court documents and statements made in court, on April 10, 2023, Holbrook sold a quantity of fentanyl to a confidential informant in a vehicle outside of a service station in Huntington. United States Attorney Will Thompson made the announcement and commended the investigative work of the Drug Enforcement Administration (DEA) and the Cabell County Sheriff’s Department. United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorney Stephanie Taylor prosecuted the case. A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:23-cr-149. ###


title: Huntington Woman Pleads Guilty to Federal Drug Crime

body_text: HUNTINGTON, W.Va. – Christina Lynn Perkins, also known as “Christina Lynn Jack-Davis,” “Cece,” “Christi Jack,” “Ice Queen,” and “CJ,” 51, of Huntington, pleaded guilty today to distribution of a mixture and substance containing methamphetamine. According to court documents and statements made in court, on July 24, 2020, Perkins sold approximately 1 ounce of methamphetamine to a confidential informant for $800. The transaction occurred at Perkins’ apartment. Perkins admitted to the transaction and to arranging it with the confidential informant beforehand. Perkins further admitted to arranging for another individual to sell approximately 28 grams of methamphetamine to a confidential informant on July 23, 2020, and to selling approximately 13.71 grams of methamphetamine for $350 to a confidential informant in Huntington on December 3, 2020. Following the December 3, 2020, transaction, law enforcement officers conducted a traffic stop of the vehicle Perkins was driving. Officers seized approximately 314 grams of methamphetamine, 27 grams of cocaine, 6 grams of fentanyl and digital scales. Perkins admitted that she intended to sell the seized controlled substances in exchange for money. On December 4, 2020, officers searched a residence in Huntington where Perkins stayed as a guest. Officers seized approximately 123 grams of fentanyl, 449 grams of methamphetamine, 139 grams of cocaine and four firearms. Perkins admitted to possessing the firearms and to intending to sell the seized controlled substances. Perkins is scheduled to be sentenced on June 17, 2024, and faces a maximum penalty of 20 years in prison, at least three years of supervised release, and a $1 million fine. United States Attorney Will Thompson made the announcement and commended the investigative work of the Drug Enforcement Administration (DEA), the Ona Violent Crime and Drug Task Force West, and the West Virginia State Police. United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Stephanie Taylor is prosecuting the case. A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:21-cr-178. ###


title: Standoff with armed felon leads to firearm conviction

body_text: CORPUS CHRISTI, Texas – A 35-year-old Corpus Christi resident has admitted to being a felon in possession of a firearm, announced U.S. Attorney Alamdar S. Hamdani. Robert Spencer was set to begin trial this week, but has instead opted to enter a guilty plea. On Aug. 4, 2022, authorities responded to a murder reported to have occurred around the 1800 block of Van Loan Ave. in Corpus Christi. They observed Spencer in the area and appeared to be armed. When authorities approached him, Spencer fled into his nearby home which initiated an hour-long standoff. During that time, Spencer yelled at law enforcement to leave the area. Authorities also heard two gunshots. He exited his home without a firearm, at which time, they arrested him. Law enforcement obtained a search warrant for Spencer’s residence and discovered six pipe bombs, four firearms and boxes of ammunition in the attic. He admitted to personally assembling the pipe bombs. As a convicted felon, he is prohibited from possessing firearms or ammunition per federal law. Further testing confirmed the pipe bombs to be destructive devices as the law defines. The pipe bombs were not properly registered to Spencer in the National Firearms Registration and Transfer Record. U.S. District Judge Nelva Gonzales Ramos will impose sentencing June 4. At that time, Spencer faces up to 15 years in federal prison and a possible $250,000 maximum fine. He will remain in custody pending that hearing. The Corpus Christi Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. Assistant U.S. Attorneys Patrick Overman and John Marck are prosecuting the case.


title: Fremont Business Owner Sentenced In Scheme To Use Foreign Bank Accounts To Avoid Millions Of Dollars In Income Taxes

body_text: SAN JOSE – Cuong Chi Quan, also known as “Roger Quan,” was sentenced last week to 10 months in prison for crimes related to a scheme to underreport his income by nearly $4.5 million, announced United States Attorney Ismail J. Ramsey and Kareem Carter, Special Agent in Charge of IRS–Criminal Investigation (IRS-CI)’s Washington D.C. Field Office. The sentence was handed down by the Honorable Edward J. Davila, United States District Judge. On March 27, 2023, Quan was charged by felony information with one count each of willfully aiding and assisting in the preparation of a false tax return, in violation of 26 U.S.C. § 7206(2), and willfully violating foreign bank account reporting requirements, in violation of 31 U.S.C. §§ 5314 and 5322(a). On April 24, 2023, Quan pleaded guilty to both counts. Quan, 56, of Milpitas, Calif., owned and managed QXQ, Inc. (“QXQ”), a manufacturer of circuit board test fixtures based in Fremont, Calif. QXQ shipped its products to customers in the United States and abroad. According to his plea agreement, Quan admitted that, since before 2014, QXQ maintained two sets of QuickBooks bookkeeping files. One set of books recorded sales to customers in the United States and all of QXQ’s expenses. The second set of books recorded sales to customers in Asia. Quan directed QXQ’s customers in Asia to wire their payments to QXQ’s bank accounts in New Zealand. The income and expenses of QXQ were reported on Quan’s individual Form 1040 tax returns. Quan admitted that he provided his income tax preparer only with the QuickBooks bookkeeping file that recorded QXQ’s sales to customers in the United States and all of its expenses. Further, Quan acknowledged he knowingly did not provide his income tax return preparer with, or disclose to the tax preparer the existence of, the bookkeeping file that recorded QXQ’s sales to customers in Asia or the statements from his and QXQ’s foreign bank accounts, which included significant interest. Quan agreed his actions omitted over $4 million in 2017 income, causing his 2017 federal income taxes to be underreported by $1,783,339. The plea agreement contains further details of the scheme. For example, Quan admitted that he had signature authority over at least eleven foreign bank accounts in 2017. One of these accounts held a balance of at least $12,137,288.50 on April 15, 2018. Quan admitted that he knowingly did not report the existence of these accounts as required. Quan also did not report the interest earned in foreign bank accounts to his tax return preparer. Judge Davila imposed restitution to the Internal Revenue Service of $8,167,733 for underreported federal income tax for the years 2014 through 2018. Judge Davila further imposed a fine of $35,000, and a 3-year term of supervised release. Assistant U.S. Attorney Colin Sampson is prosecuting the case. The prosecution is the result of an investigation by the IRS-CI International Tax and Financial Crimes (ITFC) group, a team of Special Agents dedicated to investigating international tax crimes.


title: Alameda Resident Sentenced To Two-And-A-Half Years In Prison And Ordered To Pay Nearly $1.5 Million In Restitution To Victims Of His Ponzi Scheme

body_text: SAN FRANCISCO – Long Nguyen, who pleaded guilty last year to charges relating to a scheme to defraud at least 20 individuals out of millions of dollars, has been sentenced to 30 months in prison and ordered to pay nearly $1.5 million in restitution and to forfeit $1 million, announced United States Attorney Ismail J. Ramsey and Federal Bureau of Investigation (FBI) Special Agent in Charge Robert K. Tripp. The sentence was imposed by the Hon. Trina L. Thompson, United States District Judge. Nguyen, 35, a resident of Alameda, California, pleaded guilty in October 2023 to four counts of wire fraud, in violation of 18 U.S.C. § 1343. In his plea agreement, Nguyen admitted that, between September 2015 and July 2021, he operated a scheme to defraud his victims by making false statements about himself, his investment opportunities, how he would invest his victims’ money, and what he in fact did with their money. Specifically, Nguyen admitted making the following false statements, among others, to induce victims to give him money: that (i) he was a billionaire; (ii) other people who invested with him had received large payouts at a high rate of return; (iii) he was starting his own hedge fund; (iv) he had access to pre-IPO investment opportunities that he would and did invest victims’ money into; and (v) he managed a real estate investment trust that he would and did invest victims’ money into and that would provide victims with monthly income. Nguyen also admitted creating fake screenshots that purported to show victims’ growing investment account balances, and falsely telling victims not only that they were making money, but also that he would buy—and, in some cases, had bought—them Teslas and homes. According to the plea agreement, Nguyen also admitted that he did not, in fact, invest the majority of the money he received from his victims. Rather, Nguyen admitted spending victims’ money for his own personal use and operating a Ponzi scheme by using money he had received from some victims to pay other victims back. And Nguyen admitted he devised and executed his fraudulent scheme with the intent to defraud his victims. According to the government’s sentencing memorandum, Nguyen perpetuated his fraud by lying to his victims when they asked for their money back, including by falsely telling them that he was being audited, that his accounts had been frozen, and that others, including his lawyer and the bank, were the source of the delay. He also sent fraudulent checks that his victims were unable to cash. Nguyen was indicted by a federal grand jury in October 2022 on four counts of wire fraud, all of which he pleaded guilty to. In addition to sentencing Nguyen to prison, Judge Thompson ordered the defendant to pay $1,494,496.89 in restitution to his victims and to forfeit $1 million. Judge Thompson also ordered Nguyen to serve three years of supervised release to begin after his prison term is completed. Assistant United States Attorney Kelsey Davidson is prosecuting the case with the assistance of Lance Libatique and Marina Ponomarchuk. The prosecution is the result of an investigation by the FBI.


title: St. Tammany Parish Man Pleads Guilty to Violating the Federal Controlled Substances Act

component: USAO - Louisiana, Eastern

body_text: NEW ORLEANS , LOUISIANA – U.S. Attorney Duane A. Evans announced that ALSKIIN MILLICAN , age 21, of Madisonville, Louisiana, pled guilty on February 29, 2024, to violating the Federal Controlled Substances Act before United States District Judge Susie Morgan. MILLICAN pled guilty to Count 1 of the indictment that charged him with conspiracy to distribute and possess with intent to distribute, 40 grams or more of a mixture and substance containing a detectable amount Fentanyl, a Schedule II controlled substance, in violation of Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(B), and 846. MILLICAN also pled guilty to Count 4 of the indictment that charged him with distributing and possessing with the intent to distribute 40 grams or more of a mixture and substance containing a detectable amount of Fentanyl, a Schedule II controlled substance, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(B). According to court documents, MILLICAN sold 1000 fentanyl pills to an undercover agent on September 15, 2023. For both Counts 1 and 4, MILLICAN faces a mandatory minimum sentence of 5 years and up to 40 years imprisonment, a fine of up to $5,000,000, at least 4 years of supervised release, and a mandatory special assessment fee of $100.00. MILLICAN’s sentencing is set for June 4, 2024. The case was investigated by Homeland Security Investigations and the St. Tammany Parish Sheriff’s Department. Assistant United States Attorney Lauren Sarver of the Narcotics Unit oversees the prosecution.


title: Raceland Man Sentenced  for Violations of the  Federal Gun Control Act

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

body_text: NEW ORLEANS, LOUISIANA – JAMYREN RICHARD , age 23, of Raceland, Louisiana, was sentenced on February 29, 2024, after previously pleading guilty to two counts of being a felon in possession of firearm, in violation of Title 18, United States Code, Sections 922(g)(1), and 924(a)(2). According to court records, on March 26, 2021, RICHARD was a passenger in a vehicle that was pulled over by the Harahan Police Department. During the traffic stop, officers located two loaded firearms inside the vehicle and RICHARD admitted that he possessed both firearms. On June 15, 2021, RICHARD was observed fleeing from a car that was being pursued by the Lafourche Parish Sheriff’s Office. RICHARD fled while carrying a semiautomatic rifle, entered a female’s home, and hid the rifle under the master bed mattress. RICHARD admitted he possessed three firearms knowing he had a prior felony conviction. As to both counts of Felon in Possession of a Firearm, RICHARD was sentenced to 77 months imprisonment, 3 years of supervised release upon release from imprisonment, and a $200 mandatory special assessment fee. This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Federal Bureau of Investigation, the Harahan Police Department, and the Lafourche Parish Sheriff’s Office. The prosecution was handled by Assistant United States Attorney Lynn E. Schiffman of the Narcotics Unit.


title: Four New Orleans Men Sentenced for Possessing Cars Stolen from Norfolk Southern Railyard and Federal Drug and Gun Offenses

body_text: NEW ORLEANS, LOUISIANA – DESMOND TAYLOR , age 27, QUINTRELL BROWN , age 20, NICKIE WHITLEY , age 35, and ERIN MURTHIL , age 21, all residents of New Orleans, were sentenced on February 27, 2024 by U.S. District Judge Jay C. Zainey after previously pleading guilty to multiple charges in a 20-count indictment. TAYLOR was sentenced to 72 months imprisonment, followed by 3 years of supervised release, and a $200 mandatory special assessment fee for his convictions for being a felon in possession of a firearm, in violation Title 18, United States Code, Sections 922(g)(1) and 924(a)(8), and possession of a car stolen from the Norfolk Southern Railyard, in violation of Title 18, United States Code, Section 659. BROWN was also sentenced to 72 months imprisonment, followed by 3 years of supervised release, and a $400 mandatory special assessment fee for his convictions for conspiracy to possess cars stolen from the Norfolk Southern Railyard, in violation of Title 18, United States Code, Section 371; possession of a car stolen from the Norfolk Southern Railyard, in violation of Title 18, United States Code, Section 659; possession with intent to distribute tapentadol, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(C); and 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). WHITLEY was sentenced to 84 months imprisonment, followed by 3 years of supervised release, and a $500 mandatory special assessment fee for his convictions for four counts of possessing a car stolen from the Norfolk Southern Railyard, in violation of Title 18, United States Code, Section 659, and being a felon in possession of a firearm, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(8). MURTHIL was sentenced to 65 months imprisonment, followed by 3 years of supervised release, and a $300 mandatory special assessment fee for his convictions for two counts of possessing a car stolen from the Norfolk Southern Railyard, in violation of Title 18, United States Code, Section 659, and possession of a machinegun, in violation of Title 18, United States Code, Sections 922(o) and 924(a)(2). According to court documents, TAYLOR possessed a 2023 Ford Explorer Timberline stolen from the Norfolk Southern Railyard and, while inside the stolen vehicle , possessed an American Tactical Model MilSport .223 milli-meter caliber firearm. BROWN was arrested in the French Quarter on February 11, 2023. When NOPD officers attempted to stop him, he fled and, during the chase, threw a loaded Glock Model 19 handgun into a dumpster. When BROWN was apprehended, he had 60 tapentadol pills and over $2,500 in cash in his pockets. The next month, BROWN was captured on surveillance video occupying the same stolen Ford Explorer Timberline as TAYLOR . WHITLEY participated in the theft of vehicles from the Norfolk Southern Railyard and was captured on surveillance video in March and April of 2023 driving multiple stolen vehicles, including a Ford F-150 Raptor. WHITLEY was also captured on video possessing a stolen Glock Model 19x handgun. MURTHIL possessed two vehicles taken from the Norfolk Southern Railyard. He was captured on surveillance video driving a stolen Lincoln Aviator, which had a stolen Louisiana military honors license plate affixed to it. While driving the stolen Aviator, MURTHIL took a photograph holding a Glock Model 17 handgun with a machinegun conversion device and drum magazine attached to it. The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted a function test of the gun and confirmed that it functioned as a machinegun. This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. This case was investigated by the Department of Homeland Security, Homeland Security Investigations, the Louisiana State Police, and the New Orleans Police Department. It is being prosecuted by Assistant United States Attorney David Berman of the Violent Crime Unit.


title: California Man Arrested for Smuggling Potent Greenhouse Gases into the United States

component: Energy and Natural Resources Division

body_text: Michael Hart of San Diego was arrested and charged with smuggling greenhouse gases into the United States from Mexico and then selling them for profit, in violation of regulations intended to curb the use of greenhouse gases and slow climate change. This is the first prosecution in the United States to include charges related to the American Innovation and Manufacturing Act of 2020 (AIM Act). The AIM Act prohibits the importation of hydrofluorocarbons (HFCs), commonly used as refrigerants, without allowances issued by the Environmental Protection Agency (EPA). “It is illegal to import certain refrigerants into the United States because of their documented and significantly greater contribution to climate change,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “We are committed to enforcing the AIM Act and other laws that seek to prevent environmental harm.” “The illegal smuggling of hydrofluorocarbons, a highly potent greenhouse gas, undermines international efforts to combat climate change under the Kigali Amendment to the Montreal Protocol,” said David M. Uhlmann, EPA Assistant Administrator for the Office of Enforcement and Compliance Assurance. “Anyone who seeks to profit from illegal actions that worsen climate change must be held accountable. This arrest highlights the significance of EPA’s climate enforcement initiative and our efforts to prevent refrigerants that are climate super pollutants from illegally entering the United States.” “This office is at the forefront of environmental prosecutions, and today is a significant milestone for our country,” said U.S. Attorney Tara McGrath for the Southern District of California. “This is the first time the Department of Justice is prosecuting someone for illegally importing greenhouse gases, and it will not be the last. We are using every means possible to protect our planet from the harm caused by toxic pollutants, including bringing criminal charges.” According to the EPA, HFCs are potent greenhouse gases that cause climate change and are used in applications such as refrigeration, air-conditioning, building insulation, fire extinguishing systems, and aerosols. The global warming potential of an HFC can be hundreds to thousands of times more potent than carbon dioxide. The use of HFCs has been rapidly increasing worldwide due to the global phaseout of ozone-depleting substances and increased demand for refrigeration and air conditioning. The indictment alleges that Hart purchased refrigerants in Mexico and smuggled them into the United States in his vehicle, concealed under a tarp and tools. According to the indictment, Hart posted the refrigerants for sale on OfferUp, Facebook Marketplace and other sites, and sold them for a profit. In addition to greenhouse gases, the indictment alleges Hart imported HCFC 22, an ozone-depleting substance regulated under the Clean Air Act. The Montreal Protocol on Substances that Deplete the Ozone Layer (Montreal Protocol) is a treaty adopted in 1987 and ratified by virtually every country. The Montreal Protocol required the gradual phase out of ozone depleting substances, with different timetables for developed countries like the United States and developing countries like Mexico. In the United States, the Montreal Protocol was implemented in 1990 by an addition to the Clean Air Act, which covers Stratospheric Ozone Protection. That addition identified HCFC 22 as a regulated ozone depleting substance. Before 2020, EPA regulations that governed ozone-depleting substances made it illegal for anyone to import a regulated ozone-depleting substance in an amount exceeding that individual’s consumption allowance, subject to certain exceptions. On January 1, 2020, consumption allowances for HCFC 22 were eliminated and it became illegal to import HCFC 22 for any purpose other than for use in a process resulting in their transformation or their destruction. The Kigali Amendment to the Montreal Protocol is another international agreement designed to phase down the production and consumption of greenhouse gases such as HFCs, which are commonly used alternatives to ozone-depleting substances and are already controlled under the Montreal Protocol. The Kigali Amendment seeks to phase down the production and consumption of HFCs by 80-85% by 2047. The AIM Act authorized the EPA to phase down the production and consumption of HFCs in a stepwise manner. As part of the AIM Act, Congress added an additional list of regulated substances, which include HFC 32, HFC-125, HFC-134, HFC-134a, HFC 143 and HFC 143a. Refrigerants marketed as HFC 404a, 407a, 407c and 410a contain these regulated substances. The listed HFCs are some of the most commonly used HFCs and all are saturated, meaning they have only a single bond between their atoms and therefore have longer atmospheric lifetimes. Beginning on January 1, 2022, EPA regulations prohibit any person from importing bulk regulated HFCs, except by expending, at the time of import, a consumption or application-specific allowance issued by the EPA. No person may sell or distribute, or offer for sale or distribution, any regulated HFC that was imported illegally. Senior Trial Attorney Stephen Da Ponte of the Justice Department’s Environmental Crimes Section and Assistant U.S. Attorney Melanie K. Pierson for the Southern District of California are prosecuting the case.


title: San Diego Man is First in Nation to be Charged with Smuggling Potent Greenhouse Gases into the United States

component: USAO - California, Southern

body_text: NEWS RELEASE SUMMARY – March 4, 2024 SAN DIEGO – Michael Hart of San Diego was arrested early today and charged with smuggling potent greenhouse gases into the United States from Mexico and then selling them for profit, in violation of regulations intended to curb the use of greenhouse gases and slow climate change. ( Video short ) This is the first prosecution in the United States to include charges related to the American Innovation and Manufacturing Act of 2020 (AIM Act). The AIM Act prohibits the importation of hydrofluorocarbons (HFCs), commonly used as refrigerants, without allowances issued by the Environmental Protection Agency (EPA). “This office is at the forefront of environmental prosecutions, and today is a significant milestone for our country,” said U.S. Attorney Tara McGrath. “This is the first time the Department of Justice is prosecuting someone for illegally importing greenhouse gases, and it will not be the last. We are using every means possible to protect our planet from the harm caused by toxic pollutants, including bringing criminal charges.” “It is illegal to import certain refrigerants into the United States because of their documented and significantly greater contribution to climate change,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “We are committed to enforcing the AIM Act and other laws that seek to prevent environmental harm.” “The illegal smuggling of hydrofluorocarbons, a highly potent greenhouse gas, undermines international efforts to combat climate change under the Kigali Amendment to the Montreal Protocol,” said David M. Uhlmann, EPA Assistant Administrator for the Office of Enforcement and Compliance Assurance. “Anyone who seeks to profit from illegal actions that worsen climate change must be held accountable. This arrest highlights the significance of EPA’s climate enforcement initiative and our efforts to prevent refrigerants that are climate super pollutants from illegally entering the United States.” “This case and subsequent arrest is a great example of multiple agencies collaborating to arrest an individual who allegedly smuggled illegal goods into the U.S. that harm our environment,” said Chad Plantz, special agent in charge for HSI San Diego. “We remain committed to keep these dangerous toxins from depleting our ozone.” Hart made his first appearance in federal court this afternoon. The defendant was arraigned and entered a not-guilty plea. His next hearing is before U.S. District Judge Jeffrey T. Miller for motion hearing/trial setting on March 25, 2024, at 11 a.m. According to the EPA, HFCs are potent greenhouse gases that cause climate change and are used in applications such as refrigeration, air-conditioning, building insulation, fire extinguishing systems, and aerosols. The global warming potential (GWP) of an HFC can be hundreds to thousands of times more potent than carbon dioxide. The use of HFCs has been rapidly increasing worldwide due to the global phaseout of ozone-depleting substances (ODS) and increased demand for refrigeration and air conditioning. The indictment alleges that Hart purchased refrigerants in Mexico and smuggled them into the United States in his vehicle, concealed under a tarp and tools. According to the indictment, Hart posted the refrigerants for sale on OfferUp, Facebook Marketplace and other sites, and sold them for a profit. In addition to greenhouse gases, the indictment alleges Hart imported HCFC 22, an ozone-depleting substance regulated under the Clean Air Act. The Montreal Protocol on Substances that Deplete the Ozone Layer (“Montreal Protocol”) is a treaty adopted in 1987 and ratified by virtually every country. The Montreal Protocol required the gradual phase out of ozone depleting substances, with different timetables for developed countries like the United States, and developing countries like Mexico. In the United States, the Montreal Protocol was implemented in 1990 by an addition to the Clean Air Act, which covers Stratospheric Ozone Protection. That addition identified HCFC 22 as a regulated ozone depleting substance. Before 2020, EPA regulations that governed ozone-depleting substances made it illegal for anyone to import a regulated ozone-depleting substance in an amount exceeding that individual’s consumption allowance, subject to certain exceptions. On January 1, 2020, consumption allowances for HCFC 22 were eliminated and it became illegal to import HCFC 22 for any purpose other than for use in a process resulting in their transformation or their destruction. The Kigali Amendment to the Montreal Protocol is another international agreement designed to phase down the production and consumption of greenhouse gases such as HFCs, which are commonly used alternatives to ozone-depleting substances and are already controlled under the Montreal Protocol. The Kigali Amendment seeks to phase down the production and consumption of HFCs by 80 to 85 percent by 2047. The AIM Act authorized the EPA to phase down the production and consumption of HFCs in a stepwise manner. As part of the AIM Act, Congress added an additional list of regulated substances, which include HFC 32, HFC-125, HFC-134, HFC-134a, HFC 143 and HFC 143a. Refrigerants marketed as HFC 404a, 407a, 407c and 410a contain these regulated substances. The listed HFCs are some of the most commonly used HFCs and all are saturated, meaning they have only a single bond between their atoms and therefore have longer atmospheric lifetimes. Beginning on January 1, 2022, EPA regulations prohibit any person from importing bulk regulated HFCs, except by expending, at the time of import, a consumption or application-specific allowance issued by the EPA. No person may sell or distribute, or offer for sale or distribution, any regulated HFC that was imported illegally. This case is being prosecuted by Assistant U.S. Attorney Melanie K. Pierson and Department of Justice Environmental Crimes Section Senior Trial Attorney Stephen DaPonte. DEFENDANT Case Number 24cr0383 Michael Hart Age: 58 San Diego, CA SUMMARY OF CHARGES Count 1 Conspiracy – Title 18, U.S.C., Section 371 Maximum penalty: Five years in prison and $250,000 fine Counts 2-6 Importation Contrary to Law – Title 18, U.S.C., Section 545 Maximum penalty: Twenty years in prison and $250,000 fine Counts 7-13 Sale of Merchandise Imported Contrary to Law – Title 18, U.S.C., Section 545 Maximum penalty: Twenty years in prison and $250,000 fine Criminal Forfeiture – Title 18, U.S.C., Sections 545 and 982 INVESTIGATING AGENCIES U.S. Environmental Protection Agency, Criminal Investigation Division; Homeland Security Investigations *The charges and allegations contained in an indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty


title: Anchorage woman sentenced to 30 years for producing child pornography

component: USAO - Alaska

body_text: ANCHORAGE, Alaska – An Anchorage woman was sentenced today to 30 years in prison for her role in a conspiracy to produce child sexual abuse materials. According to court documents, Denali Brehmer, 22, and her co-conspirator Darin Schilmiller, 25, conspired to murder Cynthia Hoffman in June 2019 while Schilmiller was residing in Indiana. While they were conspiring to commit Hoffman’s murder, they also conspired to coerce a minor victim to produce sexually explicit images, which Brehmer took and sent to Schilmiller via text message. Brehmer and Schilmiller pleaded guilty to production of child pornography in front of the U.S. District Court in July 2023. Schilmiller is awaiting sentencing. Both defendants were sentenced by the State of Alaska to 99 years in prison for their roles in Hoffman’s murder. In delivering the sentence, the court ordered Brehmer to serve a maximum sentence of 30 years in prison and the rest of her life on supervised release. “The harm Ms. Brehmer has caused to the victims and their families through the course of her conduct is unfathomable,” said U.S. Attorney S. Lane Tucker for the District of Alaska. “My office will continue our unwavering commitment to work with our law enforcement partners to protect Alaska’s children and seek justice against perpetrators who choose to commit these reprehensible crimes.” “This sentencing underscores the unrelenting efforts by law enforcement and prosecutors, at every level, to ensure that none of Brehmer’s ruthless crimes went unanswered or unpunished,” said Acting Special Agent in Charge Kevin Vorndran of the FBI Anchorage Field Office. “The FBI and our law enforcement partners will continue to use every tool available to identify, investigate, and hold accountable those who exploit and harm our most vulnerable.” “Denali Brehmer’s actions are beyond heinous,” said Anchorage Police Chief Michael Kerle. “Overcoming the trauma the victim suffered due to Brehmer’s actions will be a life-long journey. This case is an excellent example of why various law enforcement entities working together through the FBI’s Child Exploitation and Human Trafficking Task Force is so vitally important. Hopefully today’s sentencing will aid the victim in their healing process.” The FBI Anchorage Field Office and Anchorage Police Department investigated the case as part of the FBI’s Child Exploitation and Human Trafficking Task Force. Assistant U.S. Attorney Adam Alexander prosecuted the case. This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc . ###