title: Two Former Postal Workers Charged with Stealing U.S. Treasury Checks Valued at More Than $4 Million from Kennedy Airport Mail Facility

body_text: Four separate indictments were unsealed today at the federal courthouse in Brooklyn charging five defendants with crimes related to the fraudulent theft and deposit of checks issued by the United States Department of the Treasury. As alleged in the indictments, two of the defendants, both former United States Postal Service (USPS) employees, allegedly sold the checks which were stolen from a USPS mail facility located at John F. Kennedy International Airport (JFK Mail Facility) where one of the defendants worked. The other three defendants fraudulently endorsed and deposited Treasury checks that were not addressed to them. Four of the defendants were arrested this morning and are scheduled to be arraigned this afternoon before United States Magistrate Judge Taryn A. Merkl. One of the defendants remains at large. Breon Peace, United States Attorney for the Eastern District of New York; Daniel Brubaker, Inspector in Charge, United States Postal Inspection Service, New York Division (USPIS), Matthew Modafferi, Special Agent in Charge, United States Postal Service Office of Inspector General, Northeast Area Field Office (USPS OIG); Edward A. Caban, Commissioner, New York City Police Department, (NYPD); Michael Carpenter, Special Agent in Charge, United States Treasury Inspector General for Tax Administration, Northeast Field Division (TIGTA); and Patrick J. Freaney, Special Agent in Charge, United States Secret Service (Secret Service), announced the arrests and charges. “The former postal workers abused their positions of trust to allegedly pull one of the biggest thefts at John F. Kennedy International Airport,” stated United States Attorney Peace. “The charges allege these five defendants stole, sold and fraudulently deposited millions of dollars in U.S. Treasury checks, which included pandemic relief payments, for their own financial benefit. Criminals who cash in on checks stolen from the mail can expect to fill out change of address forms for the federal prison they will be calling home.” “Postal Inspectors relentlessly pursue criminals who exploit the US Mail for unlawful purposes. The indictments of these co-conspirators who allegedly stole Treasury Checks and defrauded the American taxpayer serve as a resounding message to anyone who wants to steal US Mail. We will steadfastly work with our partners in law enforcement and the US Attorney’s Office, and we will hold criminals accountable for their actions,” stated USPIS Inspector in Charge Brubaker. “The Special Agents of the U.S. Postal Service Office of Inspector General will vigorously investigate Postal Service employees and their co-conspirators who break the public’s trust. Postal Service employees who trade their integrity for greed and those who conspire with them should know that the Agents of the U.S. Postal Service Office of Inspector General will tirelessly work to bring them to justice. The USPS OIG is thankful for the great relationships we have developed with our law enforcement partners and with the U.S. Attorney’s Office to combat this criminal scheme affecting the American public,” stated USPS-OIG Special Agent in Charge Modafferi. “NYPD investigators are proud to have helped thwart this multimillion-dollar scheme that allegedly bilked innocent victims of their deserved checks,” stated NYPD Commissioner Caban. “We and our law enforcement partners are committed to maintaining the integrity of a postal system relied upon by millions of New Yorkers. And we vow to hold accountable anyone involved in the types of crimes outlined in these indictments, especially public employees who might pursue illicit gain by leveraging their positions of trust.” “The Treasury Inspector General for Tax Administration (TIGTA) aggressively investigates individuals who attempt to exploit United States Treasury refund checks meant for hard working taxpayers for their own private gain,” stated TIGTA Special Agent in Charge Carpenter. “Our mission at the TIGTA is to protect the integrity of our Nation’s system of tax administration. We are committed to working with our law enforcement partners to ensure that those who endeavor to violate federal laws related are prosecuted to the fullest extent possible.”“This 21-month investigation brought down a brazen criminal enterprise whose very existence violated the public trust,” stated Secret Service Special Agent in Charge Freaney. “I want to commend the United States Postal Inspection Service, along with our many partners for rooting out this flagrant corruption through persistent and exacting investigative work. The Treasury checks stolen in this case disrupted thousands of lives and syphoned funds from the pockets of the very people the accused were expected to serve. The Secret Service is proud to play a role in holding these defendants accountable.” United States v. Kevaughn Wellington and Ky-Mani Straker As alleged in the indictment, between at least June 2021 and August 2023, the defendants Kevaughn Wellington and Ky-Mani Straker engaged in a scheme to steal and sell Treasury checks intended for, among other things, individuals entitled to Social Security benefits, COVID-19 stimulus checks and tax refunds. Wellington stole parcels containing Treasury checks from the JFK Mail Facility where he was employed at the time as a postal worker. Then, together with Straker and others, Wellington sold the stolen Treasury checks for a cut of the profit. As part of the scheme, Wellington and Straker stole over 125 Treasury checks valued at more than $4 million. Straker falsely endorsed and deposited stolen Treasury checks in a bank account and withdrew the deposited funds for his own financial gain. The defendants have been charged with conspiring to steal government funds, theft of government funds and possession of stolen mail. In addition, Wellington has been charged with theft of mail by a postal service employee and Straker has been charged with passing Treasury Checks bearing forged endorsements. United States v. Angel Ortiz; United States v. Mark Dawson; United States v. Fuquan Bradley As alleged in the remaining indictments, Angel Ortiz, Mark Dawson and Fuquan Bradley each deposited and falsely endorsed Treasury checks in excess of $1,000 that were not addressed to them. Each defendant has been charged separately with theft of government funds and passing Treasury Checks bearing forged endorsements. The charges in the indictments are allegations, and the defendants are presumed innocent unless and until proven guilty. The government’s case is being handled by the Office’s General Crimes Section. Assistant United States Attorney Elias Laris is in charge of the prosecutions. The Defendants : KEVAUGHN WELLINGTON Age: 31 Jamaica, New York KY-MANI STRAKER Age: 24 Orange, New Jersey E.D.N.Y. Docket No. 24-CR-275 (DG) ANGEL ORTIZ Age: 27 Jamaica, New York E.D.N.Y. Docket No. 24-CR-281 (DG) MARK DAWSON Age: 28 Brooklyn, New York E.D.N.Y. Docket No. 24-CR-278 (LDH) FUQUAN BRADLEY Age: 34 Bronx, New York E.D.N.Y. Docket No. 24-CR-279 (RER)


title: Former CEO of Publicly Traded Company Convicted of Securities Fraud Scheme

component: Criminal Division

body_text: A federal jury in New Jersey convicted the former CEO of SCWorx Corp. (SCWorx), a publicly traded health care company, today for his role in a scheme to mislead investors about SCWorx’s procurement of COVID-19 rapid test kits in the early days of the COVID-19 pandemic. According to court documents and evidence presented at trial, Marc Schessel, 64, of New Paltz, New York, caused SCWorx to issue multiple public statements claiming that SCWorx was buying and reselling at least 48 million COVID-19 test kits, despite knowing that such statements were false and misleading. Specifically, Schessel made, or caused to be issued, four false and misleading statements during a five-day period in April 2020: an April 13 press release; an April 15 investor conference call; an April 16 8-K filing with the U.S. Securities and Exchange Commission; and an April 17 press release. All four announcements claimed that SCWorx would be receiving millions of COVID-19 rapid test kits within two weeks, but Schessel and SCWorx never acquired a single COVID-19 test kit as part of the announced transaction. In the wake of these public announcements, SCWorx’s share price surged, rising by over 400%, from approximately $2.25 to an intraday high of $14.88. After SCWorx announced that it was terminating these COVID-19 rapid test kit agreements without having acquired any tests, SCWorx’s share price quickly dropped below its pre-April 13, 2020, announcement price. The jury convicted Schessel of two counts of securities fraud. He is scheduled to be sentenced on Dec. 17 and faces a maximum penalty of 20 years in prison on count one and a maximum penalty of 25 years on count two. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; U.S. Attorney Philip R. Sellinger for the District of New Jersey; and Assistant Director Michael D. Nordwall of the FBI’s Criminal Investigative Division made the announcement. The FBI Newark Field Office investigated the case. The Justice Department appreciates the assistance of FINRA’s Criminal Prosecution Assistance Group. Principal Assistant Deputy Chief Lucy Jennings and Trial Attorneys Kate McCarthy and Spencer Ryan of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys George Brandley and Angelica Sinopole for the District of New Jersey are prosecuting the case. The Fraud Section uses the Victim Notification System to provide victims with case information and updates related to this case. Victims with questions may contact the Fraud Section’s Victim Assistance Unit by calling the Victim Assistance phone line at 1-888-549-3945 or by emailing victimassistance.fraud@usdoj.gov . To learn more about victims’ rights, please visit www.justice.gov/criminal-vns/victim-rights-derechos-de-las-v-ctimas .


title: Central Georgian with Violent Past Pleads Guilty to Illegally Possessing  Loaded Gun During Stand-Off with Police

component: Federal Bureau of Investigation (FBI)

body_text: MACON, Ga. – A Central Georgia resident with a violent criminal past who threatened to shoot and kill deputies attempting to execute an arrest warrant faces up to 15 years in federal prison after he pleaded guilty to illegally possessing a firearm. Christopher Thomas Ford, 57, of Toomsboro, Georgia, pleaded guilty to one count of possession of a firearm by a convicted felon before U.S. District Judge Marc Treadwell on July 8. Ford faces a maximum sentence of 15 years in prison to be followed by at least three years of supervised release and a maximum $250,000 fine. Sentencing is scheduled for Oct. 9. There is no parole in the federal system. “Convicted felons are prohibited from possessing firearms; our office will seek federal prosecution against people who disregard the law, especially those with violent criminal pasts,” said U.S. Attorney Peter D. Leary. “The Department of Justice’s Project Safe Neighborhoods program is aimed at reducing violent crime and gun violence to make our neighborhoods safer for everyone. Our office is dedicated to supporting the efforts of our federal, state and local law enforcement partners to achieve this goal.” “Wilkinson County is safer now that guns are out of the hands of this person. If Ford had put finger to trigger, the entire community would have been in danger. We are thankful for the actions of the Wilkinson County deputies and Ford’s father,” said FBI Atlanta’s Supervisory Senior Resident Agent of the Macon Office Robert Gibbs. “We are firmly committed to working with all of our partners and using all tools available to curb the violence impacting the American people – here in Georgia, and across the country.” “The GBI will continue to leverage our partnerships with local, state and federal agencies that are working to reduce violent crime. We will not tolerate acts that put our communities and law enforcement in danger, and we will work to make sure that dangerous criminals like Ford are off the streets,” said GBI Director Chris Hosey. According to documents and statements referenced in court, Wilkinson County Sheriff’s Office deputies went to Ford’s Toomsboro, Georgia, residence on Dec. 20, 2022, to execute an arrest warrant for terroristic threats. When deputies encountered Ford in a shed on the property, Ford threatened to shoot them while holding a loaded black Omega 12-gauge shotgun. Ford told the officers, “I ain’t playing with y’all, I ain’t going back to prison, you can kill me or I’m going to kill y’all.” Ford escaped into the woods and was arrested the next day when he returned to the property. Ford’s father took the shotgun from him while he was sleeping. Ford explained that he “wanted suicide by police,” and that he knew he was not allowed to have guns because he is a convicted felon. Ford has previously been convicted of possession of cocaine, terroristic threats, aggravated assault and cruelty to children in the third degree. This case is a 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 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. The case was investigated by FBI, the Georgia Bureau of Investigations (GBI) and the Wilkinson County Sheriff’s Office. Deputy Criminal Chief Will Keyes is prosecuting the case for the Government.


title: Melvin Hill Sentenced on Federal Drug And Firearms Charges

component: USAO - Vermont

body_text: Rutland, Vermont – The United States Attorney for the District of Vermont announced that Melvin Hill, 45, who formerly lived in Tignall, Georgia, was sentenced today in U.S. District Court in Rutland following his trial conviction on five drug and gun charges. Chief U.S. District Judge Geoffrey Crawford sentenced Hill to 180 months of imprisonment, to be followed by a ten-year term of supervised release. Hill has been held without bail since his arrest in March 2022. According to court records, in January 2022, a confidential source told Burlington narcotics investigators that they could buy narcotics from Hill. In February and March, this source made two controlled purchases of fentanyl from Hill in transactions that were recorded and surveilled by police officers. Officers learned that Hill was staying at a hotel in South Burlington. They obtained a state-court warrant to search Hill’s hotel room and the car he had been driving. Officers arrested Hill on March 10 and recovered a loaded pistol and crack cocaine from his person. In his car and hotel room, officers seized hundreds of folds of fentanyl, hundreds of pills containing methamphetamine, and powder cocaine. They also found narcotics paraphernalia and approximately $13,000 in cash. The following day, March 11, state and federal agents searched a storage unit that Hill had rented in Burlington, Vermont. Inside, authorities found additional fentanyl, a second pistol and approximately one pound of pure methamphetamine. In March 2022, the United States Attorney’s office adopted Hill’s case for federal prosecution. The U.S. Attorney’s Office had successfully prosecuted Hill in an unrelated drug case in 2012. In July 2022, a federal grand jury in Burlington charged Hill, in a superseding indictment, with two counts of distributing fentanyl to the confidential source; possessing with intent to distribute fentanyl, cocaine, cocaine base and large quantities of methamphetamine, and two counts of possessing firearms as a convicted felon. Hill is barred from possessing any firearms because he has several felony convictions in federal court and his native Georgia. A jury convicted Hill on all charges last summer. This case was investigated by the Burlington Police Department and the Drug Enforcement Administration with the Bureau of Alcohol, Tobacco, Firearms and Explosives assisting with firearms evidence. At sentencing, Hill was represented by Karen Shingler, Esq. The government was represented by Assistant U.S. Attorneys Gregory Waples and Zachary Stendig.


title: Pacific Toxicology Laboratories Agrees to Pay $1 Million to Resolve Allegations of Fraudulent Billing

component: USAO - Massachusetts

body_text: BOSTON – A California-based laboratory, Pacific Toxicology Laboratories (PacTox), has agreed to pay $1 million to resolve allegations that it submitted false claims for payment to Medicare for urine drug testing (UDT). On Jan. 1, 2020, Medicare established regulations for payment to Opioid Treatment Programs (OTPs) for opioid use disorder (OUD) treatment services for Medicare beneficiaries. Medicare established a bundled payment rate for OTPs’ provision of OUD treatment services, including, but not limited to, dispensing and administering opioid treatment medications (such as Methadone), substance use counseling, individual and group therapy services, intake activities, periodic assessment services and UDT. Pursuant to the bundled payment rate methodology, Medicare makes one all-inclusive payment for the treatment services, including UDT. According to the settlement agreement, PacTox admits that between Jan. 1, 2020 and March 14, 2023 PacTox separately billed Medicare for confirmatory UDT, notwithstanding the bundled payment rate made applicable by Medicare regulations. The United States alleges that PacTox’s practice of separately billing for UDT for OTP patients resulted in Medicare paying twice for UDT services for certain OUD patients. The claims resolved by the resolution announced today include claims that were brought under the qui tam or whistleblower provisions of the False Claims Act. Under the Act, a private party can file an action on behalf of the United States and receive a portion of any recovery. As part of today’s resolution, the whistleblower will receive approximately $200,000. Acting United States Attorney Joshua S. Levy; Robert Coviello, Special Agent in Charge of the Department of Health and Human Services, Office of the Inspector General; and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. Assistant U.S. Attorney Abraham R. George, Chief of the Civil Division, handled the matter.


title: Monmouth County Man Sentenced to 10 Years in Prison for Drug Distribution and Firearms Charges

component: USAO - New Jersey

body_text: TRENTON, N.J. – A Monmouth County, New Jersey, man was sentenced today to 120 months in prison for illegally possessing methamphetamine for distribution and possessing a firearm as a convicted felon, U.S. Attorney Philip R. Sellinger announced. Dywann Pugh, 44, of Asbury Park, New Jersey, previously pleaded guilty before former-U.S. District Judge Peter G. Sheridan to one count of possession with the intent to distribute 500 grams or more of a mixture and substance containing methamphetamine and one count of unlawful possession of a firearm and ammunition by a convicted felon. U.S. District Judge Zahid N. Quraishi imposed the sentence today in Trenton federal court. According to documents filed in this case and statements made in court: On Nov. 21, 2022, law enforcement executed search warrants at Pugh’s residence and discovered over three kilograms of methamphetamine; over three kilograms of cocaine; approximately 150 grams of fentanyl; approximately $19,000 in cash; and various drug distribution paraphernalia, including a pill press and approximately seven kilograms of cutting agents used in connection with the processing of drugs. Law enforcement also recovered a Hi-Point .380 caliber pistol loaded with six rounds of ammunition. In addition to the prison term, Judge Quraishi sentenced Pugh to five years of supervised release. Judge Sheridan previously ordered Pugh to forfeit the firearm and ammunition that law enforcement seized. U.S. Attorney Sellinger credited special agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Cheryl Ortiz; Homeland Security Investigations Newark, under the direction of Acting Special Agent in Charge William S. Walker, and the Neptune Township Police Department, under the direction of Chief Anthony Gualario, with the investigation leading to the sentencing. The government is represented by Assistant U.S. Attorney Matt Belgiovine of the Criminal Division in Trenton.


title: Sun Prairie Woman Sentenced to 7 Years for Fentanyl Trafficking

component: USAO - Wisconsin, Western

body_text: MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Brianna M. Reno, 27, Sun Prairie, Wisconsin, was sentenced today by Chief U.S. District Judge James D. Peterson to 7 years in federal prison for conspiracy to possess and distribute 40 grams or more of fentanyl. The prison term will be followed by 5 years of supervised release. Reno pled guilty to this charge on April 16, 2024. On January 26, 2023, law enforcement intercepted two suspicious packages being shipped to the Madison area from Arizona. After obtaining a search warrant, officers opened the packages and inside each, found a stuffed animal containing approximately 2.2 kilograms of counterfeit prescription pills. In total, more than 40,000 pills were seized. Testing revealed that the pills contained fentanyl. Officers arranged for a controlled delivery of one package and co-defendants Jontell C. Shepherd and Alexis K. Davis were arrested after arriving at the delivery location to pick up the package. The government’s investigation revealed that Reno arranged for co-defendant Keyshawna D. Draper to ship the fentanyl pills to Madison from Arizona. During the sentencing, Judge Peterson emphasized the danger that fentanyl disguised as prescription pills poses to the community. Judge Peterson expressed concern that even though the counterfeit pills looked legitimate, they were actually far more dangerous since they contained fentanyl. He also remarked on the seriousness of Reno making “money by exploiting” those addicted to drugs. All four defendants who were charged in this trafficking scheme have pled guilty. Shepherd and Draper’s sentencing hearings are scheduled for July 23, 2024, and Davis will be sentenced on July 25, 2024. The charges against Reno, Shepherd, Davis, and Draper were the result of an investigation conducted by the Drug Enforcement Administration, United States Postal Inspection Service, and the Wisconsin Department of Justice Division of Criminal Investigation. The investigation was conducted and funded by the Organized Crime Drug Enforcement Task Force (OCDETF), a multi-agency task force that coordinates long-term narcotics trafficking investigations. Assistant U.S. Attorney William M. Levins prosecuted this case.


title: Former SBA Employee Charged with Wire and Bank Fraud in Connection with Filing False Applications for PPP and EIDL Loans and Covid-19 Rental Assistance

component: USAO - Florida, Southern

body_text: MIAMI – Malaina Chapman , 37 , of Hialeah, Fla. has been charged with conspiracy to commit wire fraud, wire fraud and bank fraud. She had her initial appearance in Miami federal court today. According to allegations in the criminal complaint, Chapman was employed as a Disaster Relief Specialist with the Small Business Administration (SBA) from Sept. 28, 2020, through her resignation on March 18, 2021. While employed by the SBA, Chapman became involved in multiple schemes to defraud the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) program, as well as to defraud local credit unions and local and state programs designed to assist those affected by the Covid-19 pandemic pay their rent. “Disaster relief was intended for people in need, namely functioning businesses, corporate forms, and sole proprietorships facing uphill prospects during the pandemic, not for those who sought to pad their pockets and defraud the government by making up entities or overstating their payroll and revenues to qualify for the relief," stated U.S. Attorney Markenzy Lapointe for the Southern District of Florida. “We will continue to hold anyone accountable who exploits and defrauds financial institutions and the government’s pandemic response to enrich themselves at the expense of struggling businesses, employees, and local tenants. While the COVID-19 relief programs have ended, our commitment to identifying and prosecuting those who defrauded them has not.” “Today’s charges highlight our unwavering commitment to protecting the integrity of SBA programs,” said SBA OIG’s Eastern Region Special Agent in Charge Amaleka McCall-Braithwaite. “Exploiting relief efforts for personal gain undermines public trust and deprives legitimate businesses of essential assistance. I want to thank the U.S. Attorney’s office and our law enforcement partners for their support and dedication to ensuring that those who engage in fraudulent schemes are held accountable to the fullest extent of the law.” On Feb. 10, 2021, Chapman, while employed by the SBA, submitted, via interstate wire communication, a loan application in the name of Upscale Credit Lounge to Lender 3. In support of her application, Chapman submitted a purported tax year 2020 Schedule C form that reported gross revenues of $103,674 and a tentative profit of $81,860. Lender 3 relied upon the representations in Chapman’s application and on Feb. 11, 2021, approved a loan in the amount of $17,052.50. Further investigation revealed that the Schedule C, attached to Chapman’s application was false and fraudulent. On Feb. 19, 2021, Chapman, again while still employed by the SBA, submitted, via interstate wire communication, a PPP loan application with Lender 3 on behalf of DA TRAP. In her application, Chapman claimed that she had four employees and an average monthly payroll of $14,191. In support of her application, Chapman submitted four IRS Employers Quarterly Tax Return forms (Form 941), which purportedly documented the wages paid by DA TRAP. Lender 3 relied upon the representations in the application and on Feb. 26, 2021, approved a loan in the amount of $35,477.50. Further investigation revealed that the multiple IRS Forms 941 attached to Chapman’s application were false and fraudulent. Chapman also conspired with others to submit false and fraudulent PPP loan applications on their behalf. Six defendants were charged in Case No. 24-CR-20079 and in that case defendant Raisha Kelly was the alleged ringleader of the conspiracy and prepared and caused the preparation of numerous false and fraudulent loan applications to be submitted to SBA-approved PPP lenders. Chapman aided and abetted this conspiracy by creating false and fraudulent IRS documents and sending them to Kelly, who in turn used them to submit false and fraudulent applications for PPP loans. In addition to defrauding the PPP program, Chapman is also charged with taking advantage of the State of Florida and the City of Miami’s Covid-19 Emergency Rental Assistance Programs. Specifically, on Oct. 13, 2021, Chapman began the process of applying for benefits under the State of Florida’s Emergency Rental Assistance program. Chapman was purportedly a tenant at a residence in Miami. Chapman submitted required information and documents through an online portal set up to distribute benefits under the program. On Jan. 20, 2022, Chapman submitted a written document titled “3-day notice to pay rent or quit.” These documents were dated Dec. 7, 2021, and purportedly signed by Individual 2, the defendant’s mother. Individual 2 died on May 25, 2020. The State of Florida accepted the representations in Chapman’s application and approved payments totaling $15,000. These payments were made into bank accounts controlled by Chapman. U.S. Attorney Markenzy Lapointe for the Southern District of Florida; Special Agent in Charge Jonathan Ulrich, U.S. Postal Service Office of Inspector General (USPS OIG); Special Agent in Charge Amaleka McCall-Brathwaite, U.S. Small Business Administration Office of Inspector General (SBA OIG), Investigations Division’s Eastern Region; and Special Agent in Charge Mathew Broadhurst of the U.S. Department of Labor Office of Inspector General (DOL-OIG), Southeast Region, made the announcement. USPS OIG, SBA OIG and DOL-OIG handled the investigation. This case is being prosecuted by Assistant U.S. Attorney Daniel Bernstein. The charges contained in the criminal complaint are merely accusations and all defendants are presumed innocent unless and until proven guilty in a court of law. 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 . On September 15, 2022, the Attorney General selected the Southern District of Florida’s U.S. Attorney’s Office to head one of three national COVID-19 Fraud Strike Force Teams. The Department of Justice established the Strike Force to enhance existing efforts to combat and prevent COVID-19 related financial fraud. The Strike Force combines law enforcement and prosecutorial resources and focuses on large-scale, multistate pandemic relief fraud perpetrated by criminal organizations and transnational actors, as well as those who committed multiple instances of pandemic relief fraud. The Strike Force uses prosecutor-led and data analyst-driven teams to identify and bring to justice those who stole pandemic relief funds. Additional information regarding the Strike Force may be found at https://www.justice.gov/opa/pr/justice-department-announces-covid-19-fraud-strike-force-teams . 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 . Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov under case number 24-mj-03358. ###


title: New Haven Man Sentenced to Prison for Stealing and Selling Catalytic Converters

component: USAO - Connecticut

body_text: Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that MICHAEL ALMODOVAR, also known as “Eme ElColorado,” 31, of New Haven, was sentenced today by U.S. District Judge Sarala V. Nagala in Hartford to 14 months of imprisonment, followed by three years of supervised release, for his participation in a stolen catalytic converter trafficking ring. According to court documents and statements made in court, law enforcement has been investigating the theft of catalytic converters from motor vehicles across Connecticut. A catalytic converter contains precious metals, can easily be removed from its vehicle, and is difficult to trace, making it a desirable target for thieves. The average scrap price for catalytic converters currently varies between $300 and $1,500, depending on the model and type of precious metal component. The investigation revealed that Downpipe Depot & Recycling LLC (“Downpipe Depot”), which had a warehouse on Park Avenue in East Hartford, purchased stolen catalytic converters from a network of thieves, including Almodovar, and then transported and sold the catalytic converters to recycling businesses in New York and New Jersey. Business records seized during the investigation revealed that, between March 2022 and May 2022, Downpipe Depot paid Almodovar $34,445 for catalytic converters. In one incident, while Almodovar was in the process of stealing a catalytic converter from a car in a parking lot in Milford, he was interrupted by a witness who used his cellphone take pictures of Almodovar. Almodovar attacked the witness, smashed his car window, cut him with the saw he used to steal the converter, and then fled. The next day, Almodovar sold six converters to Downpipe Depot in exchange for $2,180. Almodovar was arrested on November 28, 2023. On March 27, 2024, he pleaded guilty to conspiracy to commit interstate transportation of stolen property, and interstate transportation of stolen property. This investigation is being led by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Internal Revenue Service – Criminal Investigation Division (IRS-CI), and the East Hartford Police Department. The case is being prosecuted by Assistant U.S. Attorneys Lauren C. Clark and A. Reed Durham.


title: Repeat Felon Sentenced for Illegal Possession of Firearms and Distribution of Crack Cocaine

body_text: WASHINGTON – Donnie Wise, 27, a repeat felon from Washington D.C., was sentenced today to 46 months in prison for possessing two illegal firearms and distribution quantities of crack cocaine and powder cocaine at his Southeast apartment, announced U.S. Attorney Matthew M. Graves; ATF Special Agent in Charge Craig Kailimai, of the Bureau of Alcohol, Tobacco, Firearms, and Explosives - Washington Division; and Chief Pamela A. Smith of the Metropolitan Police Department (MPD). Wise pleaded guilty before U.S. District Judge Randolph D. Moss on March 21 to unlawful possession of a firearm and ammunition by a felon and to unlawful possession with intent to distribute cocaine base. In addition to the prison term, Judge Moss ordered Wise to serve three years of supervised release. According to court documents, on January 18, 2023, at about 6 a.m., members of the MPD’s Violent Crime Suppression Division executed a search warrant at Wise’s apartment on the 1900 block of 18 th Street, SE. Law enforcement found Wise sitting inside his bedroom. Once handcuffed, Wise told police he was the only one who resided in the apartment. The kitchen was filled with drug making equipment that included digital scales, baking soda, empty ziplock bags. Officers searched Wise’s bedroom and, next to his bed, recovered a Zastava Arms ZPAP92 7.62 x 39mm firearms with 30 rounds in the magazine and one in the chamber. Officers also located a Glock 17, 9 mm pistol in the same room with 26 rounds in the magazine and one round in the chamber. Police additionally recovered a 50-round magazine containing 15 rounds, a Zigana gun box containing two magazines, 39 rounds of .40 caliber ammo, a baggie containing empty yellow pill capsules, 21 grams of crack cocaine, and 85 grams of powder cocaine on a shelf over a television. DNA linked Wise to the Glock 17. This case was conducted under the auspices of Project Safe Neighborhoods and was investigated by the Metropolitan Police Department’s Violent Crime Suppression Division in concert with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). It is being prosecuted by Assistant U.S. Attorney Shehzad Akhtar. 23cr0380


title: Justice Department Secures Agreement with Hotel in Springfield, Illinois, to Ensure Access for People with Disabilities

component: Department of Justice

body_text: SPRINGFIELD, Ill. – The Department of Justice announced today it has reached a settlement agreement under the Americans with Disabilities Act (ADA) with the Crowne Plaza Hotel, located in Springfield, Illinois, to resolve alleged violations of Title III of the Americans with Disabilities Act. The Department reached the agreement with Driftwood Hospitality Management, LLC, and 3000 S. Dirksen LP, who own and operate the hotel. The agreement requires the hotel to renovate its facilities by increasing the number of accessible rooms and eliminating barriers in existing rooms. The settlement resolves an ADA complaint alleging that after reserving an accessible room, when an individual with a disability attempted to check-in, the Crowne Plaza provided a room that lacked toilet handrails and did not have an accessible shower. According to the complaint, after the complainant explained their needs, the hotel provided a second room that lacked toilet handrails, had broken toilet seat hinges, and had an inaccessible shower. Despite the complainant requesting an accessible room, the hotel did not provide one, leaving the complainant unable to use the shower or toilet without assistance from a family member. The complaint prompted an investigation by the United States Attorney’s Office for the Central District of Illinois. The investigation revealed that the Crowne Plaza does not maintain the number of accessible rooms required by the ADA and that many of its existing accessible rooms may contain barriers prohibited by the ADA. The ADA requires that hotels provide access to individuals with disabilities by honoring reservations, making accommodations, and providing a certain number of accessible rooms according to the ADA Standards for Accessible Design. “People with disabilities must be able to travel without sacrificing their independence when simply trying to find a place to sleep, shower, or use the bathroom,” said Assistant U.S. Attorney Joshua I. Grant for the Central District of Illinois. “We appreciate the hotel’s prompt action to renovate its facilities to ensure equal access for all and we encourage all hotels in the Central District of Illinois to ensure their rooms are accessible as required by the ADA.” Under the agreement, the hotel will create eleven new accessible rooms and eliminate existing barriers in other rooms. Driftwood Hospitality will also create an ADA policy and provide ADA training for all hotels it owns, operations, and manages, including the Crowne Plaza. Without admitting to violating the ADA, the hotel also agreed to a monetary payment to the complainant to fully resolve the matter. Assistant U.S. Attorney Grant represented the government during the investigation and settlement process. For more information about the ADA, please visit www.ada.gov, or call the Department of Justice’s toll-free information line at (800) 514-0301 or (800) 514-0383 (TDD). Information about filing a complaint, including instructions for filing a complaint online, can be found at https://www.justice.gov/crt/how-file-complaint.


title: Readout of Justice Department’s Interagency Convening on Advancing Equity in Artificial Intelligence

component: Civil Rights Division

body_text: Today, the Justice Department’s Civil Rights Division convened principals of federal agency civil rights offices and senior government officials to foster AI and civil rights coordination. This was the third such convening hosted by the Civil Rights Division following President Biden’s Executive Order on the Safe, Secure and Trustworthy Development and Use of Artificial Intelligence (EO 14110), which tasks the Civil Rights Division with coordinating federal agencies to use our authorities to prevent and address unlawful discrimination and other harms that may result from the use of AI in programs and benefits, while preserving the potential social, medical and other advances AI may spur. In her opening remarks, Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division highlighted her recent announcement that nine cabinet-level federal agencies have joined the pledge to enforce civil rights laws in AI as new technologies become more common in daily life. Agencies discussed their efforts to safeguard civil rights through robust enforcement, policy initiatives, rulemaking and ongoing education and outreach, including completing all 180-day actions in EO 14110 on schedule. These accomplishments include: Guidance to assist federal contractors in compliance with equal employment laws to promote safe AI adoption and to apply the Fair Labor Standards Act and other federal labor standards as employers use AI (Department of Labor); Resources for job seekers, workers, tech vendors and creators on how AI use could violate employment discrimination laws (Equal Employment Opportunity Commission); Guidance affirming that existing prohibitions against discrimination apply to AI’s use for tenant screening and advertisement of housing opportunities, and explained how deployers of AI tools can comply with these obligations (Department of Housing and Urban Development); Guidance and principles that set guardrails for the responsible and equitable use of AI in administering public benefits programs ( Department of Agriculture and Department of Health and Human Services ); and A final rule applying the nondiscrimination principles under Section 1557 of the Affordable Care Act to the use of patient care decision support tools in clinical care, and it requires those covered by the rule to take steps to identify and mitigate discrimination when they use AI and other forms of decision support tools for care (Department of Health and Human Services). The interagency convening's attendees included Chair Charlotte Burrows of the Equal Employment Opportunity Commission, Director Melanie Fontes Rainer of the Department of Health and Human Services' Office of Civil Rights, Officer for Civil Rights and Civil Liberties Shoba Sivaprasad Wadhia of the Department of Homeland Security and Principal Deputy Assistant Secretary Diane Shelley of the Department of Housing and Urban Development. Other senior agency officials also participated. All participants pledged to continue collaboration to protect the American public against any harm that might result from the increased use and reliance on AI, algorithms and other advanced technologies. The agencies also agreed to partner on external stakeholder engagement around their collective efforts to advance equity and civil rights in AI. For more information, see the Civil Rights Division’s webpage , which centralizes content related to the division’s work on AI and civil rights. This resource provides information about how advanced technologies can result in unlawful discrimination and what the division can do to assist victims of discrimination. The webpage will soon also include the work on AI and civil rights from enforcement agencies throughout the federal government.


title: Hartford Man Admits Possessing Handgun Fitted with Glock Switch

body_text: Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that KENDALL CAMBY, also known as “KB,” 34, of Hartford, pleaded guilty today before U.S. District Judge Omar A. Williams in Hartford to unlawful possession of a firearm by a felon. According to court documents and statements made in court, on February 22, 2023, Hartford Police stopped a car Camby was riding in and found him in possession of a .45 caliber Glock 30 handgun with a magazine loaded with 12 rounds of ammunition, and fitted with a Glock switch auto sear device, which converted the gun to an automatic weapon. Camby also possessed approximately 650 wax paper sleeves containing fentanyl and approximately 50 bags of crack cocaine. Camby’s criminal history includes state convictions for felony firearm, drug, robbery, and burglary offenses. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce. Unlawful possession of a firearm by a felon carries a maximum term of imprisonment of 15 years. Camby is detained pending sentencing, which is not scheduled. This matter is being investigated by the Drug Enforcement Administration’s Hartford Task Force, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Hartford Police Department. The case is being prosecuted by Assistant U.S. Attorney Robert S. Ruff. This prosecution is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce gun violence and other violent crime, and to make our neighborhoods safer for everyone. In May 2021, the Justice 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. For more information about Project Safe Neighborhoods, please visit www.justice.gov/psn .


title: Washington, D.C. Man Facing Federal Charges For Allegedly Obtaining Covid-19 Cares Act Loans By Reporting Inflated Payroll Numbers And Stealing A Maryland Man’s Identity

component: USAO - Maryland

body_text: Greenbelt , Maryland – A federal grand jury has returned an indictment charging Jemel Lyles, age 42, of Washington, D.C., with three counts of wire fraud, two counts of aggravated identity theft, and one count of money laundering relating to the submission of alleged fraudulent COVID-19 CARES Act loan applications. The indictment was returned on June 27, 2024, and unsealed today upon the arrest of the defendant. The defendant had an initial appearance today, in the U.S. District Court in Greenbelt before U.S. Magistrate Judge Gina L. Simms. The indictment was announced by Erek L. Barron, U.S. Attorney for the District of Maryland and Special Agent in Charge William J. DelBagno of the Federal Bureau of Investigation, Baltimore Field Office. Financial assistance offered through the CARES Act included forgivable loans to small businesses for job retention and certain other expenses, through the Paycheck Protection Program, administered through the Small Business Administration (SBA). According to the indictment, the defendant fraudulently obtained three PPP loans and spent the funds for purposes not permitted under the PPP loan program. The first PPP loan was for a construction and landscaping business that in support of that application, Lyles submitted a false payroll document, which misrepresented the size of the business’ payroll. Lyles also disguised his ownership of the business. As a result of this application, PPP funds were deposited into a bank account under Lyles’s control and later used for personal and unauthorized expenses. The indictment also alleges that Lyles obtained two PPP loans impermissibly using the identity of a Maryland resident. In support of these applications, Lyles submitted false tax documents and listed the Maryland resident’s Social Security Number as the relevant taxpayer identification number. As a result of these applications, Lyles received PPP funds, which he proceeded to use for unauthorized expenses. If convicted, Lyles faces a maximum sentence of 20 years in federal prison for each wire fraud count; a minimum mandatory sentence of two years in prison for each aggravated identity theft count, which will run consecutive to the wire fraud sentence; and a maximum of 10 years in federal prison for money laundering. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors. An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings. The District of Maryland Strike Force is one of five strike forces established throughout the United States by the U.S. Department of Justice to investigate and prosecute COVID-19 fraud, including fraud relating to the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act. The CARES Act was designed to provide emergency financial assistance to Americans suffering the economic effects caused by the COVID-19 pandemic. The strike forces focus on large-scale, multi-state pandemic relief fraud perpetrated by criminal organizations and transnational actors. The strike forces are interagency law enforcement efforts, using prosecutor-led and data analyst-driven teams designed to identify and bring to justice those who stole pandemic relief funds. 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 . U.S. Attorney Barron commended the FBI for its work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Joseph L. Wenner, who is prosecuting the federal case. He also recognized the assistance of the Maryland COVID-19 Strike Force Paralegal Specialist Joanna B.N. Huber. For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach . # # #


title: Registered Sex Offender Sentenced to 10 Years in Federal Prison for Child Pornography Offense

component: USAO - Arkansas, Western

body_text: FORT SMITH – A Van Buren man was sentenced today to 120 months in prison followed by 10 years of supervised release on one count of Transportation of Child Pornography. The Honorable P.K. Holmes III presided over the sentencing hearing in the U.S. District Court in Fort Smith. According to court documents, James Allen Price , age 42, is a registered sex offender. In July 2023 law enforcement was alerted by NCMEC (National Center for Missing and Exploited Children) that someone had emailed child pornography from one email account to another. Subsequent law enforcement investigation identified Price as the owner of both email accounts. A federal search warrant was conducted on Price’s residence and electronic devices were seized. Price was interviewed by law enforcement where he admitted to emailing himself child pornography. Price possessed images of children under the age of twelve years old. U.S. Attorney David Clay Fowlkes of the Western District of Arkansas made the announcement. The Federal Bureau of Investigation, Van Buren Police Department and Joplin, Missouri Police Department investigated the case. Assistant U.S. Attorney Carly Marshall prosecuted the case. This case was prosecuted as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc . Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov .


title: Lake County Woman Charged With Conspiracy To Commit Bank Fraud

component: USAO - Florida, Middle

body_text: Tampa, FL – United States Attorney Roger B. Handberg announces the return of an indictment charging Angel Jackson (44, Astatula) with one count of conspiracy to commit bank fraud. If convicted, Jackson faces a maximum penalty of 30 years in federal prison. According to the indictment, Jackson and others conspired to create and execute a mortgage fraud scheme targeting financial institutions. To ensure that otherwise unqualified borrowers obtained mortgage loans from financial institutions, Jackson created fictitious and fraudulent paystubs that falsely indicated that the borrowers worked at particular companies for certain periods of time and earned income that they did not. Further, Jackson altered legitimate Social Security benefit letters to reflect exaggerated monthly disability income, and she altered bank statements to show falsely inflated account balances. Based on Jackson’s and her co-conspirators’ misrepresentations, the financial institutions approved and funded the mortgage loans. An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty. This case was investigated by the Federal Housing Finance Agency – Office of Inspector General and the U.S. Department of Housing and Urban Development – Office of Inspector General. It will be prosecuted by Special Assistant United States Attorney Chris Poor.


title: Convicted Felon Pleads Guilty To Possessing A Firearm And Ammunition Connected To St. Petersburg Shooting

body_text: Tampa, FL - United States Attorney Roger B. Handberg announces that Daniel Gonzalez (23, St. Petersburg) has pleaded guilty to one count of possession of a firearm and ammunition by a convicted felon. Gonzalez faces a maximum penalty of 15 years in federal prison. A sentencing date has not yet been set. According to court proceedings, on January 1, 2023, a 16-year-old person was shot in a parking garage in St. Petersburg. After the shooting, officers from the St. Petersburg Police Department observed a vehicle fleeing from the parking garage and followed it for a short period of time until the pursuit was terminated due to weather conditions. Soon after, a Springfield Armory Hellcat 9mm pistol was found in the road where officers observed the vehicle fleeing. The firearm was swabbed for DNA and Gonzalez’s DNA was present on two different parts of the firearm. Ballistic testing confirmed that three of the cartridge cases found at the scene of the shooting were a match to the firearm with Gonzalez’s DNA on it. Gonzalez is a convicted felon and, therefore, is prohibited from possessing a firearm or ammunition under federal law. This case was investigated by Bureau of Alcohol, Tobacco, Firearms and Explosives and the St. Petersburg Police Department. It is being prosecuted by Assistant United States Attorney Samantha Newman. This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.


title: Toledo Man Indicted for Robbery of Postal Employee

component: USAO - Ohio, Northern

body_text: TOLEDO – A federal grand jury has returned a three-count indictment charging Damere Wilson, 20, of Toledo, Ohio, with robbery of mail, money, or other property of the United States, stealing mail collection box keys, and mail theft. The violations allegedly took place while a United States Postal Service letter carrier was on a delivery route. According to court documents, an individual approached the letter carrier on March 12, 2024, delivering mail at the Piccadilly Apartments in Oregon, Ohio. The letter carrier indicated a hard object was shoved into their back and the individual demanded the keys to the mailboxes. Wilson’s vehicle was observed fleeing the scene of the robbery through information gathered via surveillance videos which resulted in the execution of a search warrant at a duplex on Maplewood Avenue in Toledo. The postal key stolen from the letter carrier, as well as more than 200 checks totaling thousands of dollars, were recovered during a search warrant execution. More than 100 mail theft victims were identified from throughout northern Ohio. If convicted, Wilson’s sentence will be determined by the court after review of factors unique to this case, including his prior criminal record, if any, his role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases, it will be less than the maximum. The case is being prosecuted by Assistant United States Attorney Frank H. Spryszak for the Northern District of Ohio. The investigation preceding the indictment was a collaborative effort conducted by the United States Postal Inspection Service (USPIS), and the the City of Oregon Police Division. An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt. To report mail theft or other crimes committed through, or towards, the United States Postal Service, call the USPIS at 1-877-876-2455 or visit https://www.uspis.gov/report .


title: Former Teacher Sentenced to 12 Years in Prison for Exploiting Children in Laos

body_text: BOSTON – A Lynn man was sentenced today in federal court in Boston for sexually exploiting minors to whom he taught English in Laos. Michael Sebastian, 56, was sentenced by U.S. District Court Judge Denise J. Casper to 12 years in prison to be followed by five years of supervised release. In December 2023, Sebastian pleaded guilty to three counts of engaging in illicit sexual conduct in foreign places. Sebastian taught English to impoverished children in Laos. While teaching children there, Sebastian allowed certain students to live with him in his apartment. Students who were unable to pay for their living expenses performed “chores” around the house to earn credit towards their rent payments. One of the “chores” eligible for rent credit was to give Sebastian massages, during which Sebastian would be naked. As part of these massages, Sebastian required some students to touch his genitals and masturbate him in lieu of rent payment. Sebastian is charged with sexually abusing three minor children who lived with him between May 2018 and March 2020. “Mr. Sebastian took advantage of young, vulnerable children in his care and forced them to perform sexual acts for his gratification. Instead of providing a safe home for learning as he had promised, these children were manipulated by the defendant to take part in disturbing behaviors,” said Acting United States Attorney Joshua S. Levy. “The depraved conduct directed at children is startling and, as this case demonstrates, our office and our federal law enforcement partners are committed to aggressively prosecuting individuals who sexually abuse children. The message should be heard loudly and clearly: predators in Massachusetts and beyond will be found and brought to justice.” “Michael Sebastian apparently thought, because he was halfway around the world, he could commit these heinous crimes with impunity. Today’s sentence makes it clear that was wrong,” said Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “This serial sex offender shamelessly exploited three Laotian boys who were destitute and dependent upon him for shelter and education for his own gratification. Protecting vulnerable kids from predators like him is a top priority for FBI Boston’s Child Exploitation – Human Trafficking Task Force.” Acting U.S. Attorney Levy; Nicole M. Argentieri, Principal Deputy Assistant Attorney General for the Justice Department’s Criminal Division; and FBI SAC Cohen made the announcement. This case was investigated by the FBI’s Legal Attache office in Bangkok, along with assistance provided by the FBI’s Child Exploitation Operational Unit, the Boston FBI’s Child Exploitation Human Trafficking Task Force and the U.S. Diplomatic Security Service, Laos. Assistant U.S. Attorney Anne Paruti, Project Safe Childhood Coordinator and Chief of the Major Crimes Unit and Trial Attorneys Nadia Prinz and Eduardo Palomo of the Justice Department’s Child Exploitation and Obscenity Section 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 the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc .


title: Statement Of U.S. Attorney Damian Williams On The Convictions Of Bill Hwang And Patrick Halligan

component: USAO - New York, Southern

body_text: “Moments ago, a unanimous jury found Sung Kook ‘Bill’ Hwang and Patrick Halligan guilty of a massive market manipulation scheme via the private investment firm Archegos. As the evidence at trial has shown, Hwang, founder and owner of Archegos, and Halligan, Archegos’s Chief Financial Officer, made false assurances and lied to Wall Street investment banks to induce them to provide capital to Archegos, which Hwang and Halligan then used to inflate the stock prices of several publicly traded companies. Hwang and Halligan lied about Archegos’s positions in these companies and just about every other materially important metric investment banks would use in determining the firm’s creditworthiness. In doing so, Hwang and Halligan were able to fraudulently inflate a $1.5 billion portfolio into a $36 billion portfolio. This verdict should send a resounding message that this Office will continue to police the financial markets with an eagle eye and swiftly hold accountable those who think they can cheat the system.”


title: Convicted Felon Sentenced to Seven Years in Prison for Illegal Gun Possession

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

body_text: BIRMINGHAM, Ala. – A federal judge sentenced a convicted felon for illegal possession of a firearm, announced U.S. Attorney Prim F. Escalona and Bureau of Alcohol, Tobacco, Firearms and Explosives Special Agent in Charge Marcus Watson. Chief U.S. District Court Judge R. David Proctor sentenced Peter Lewis Gupton, 41, of Birmingham, to 84 months in prison. In March, Gupton pleaded guilty to being a felon in possession of a firearm. According to the plea agreement, on February 23, 2023, Birmingham police officers went to the scene of reported gunshots in Woodlawn. Gupton fled the scene on foot. One of the officers found Gupton hiding behind a dumpster and detained him. Gupton led officers to a loaded SCCY 9mm pistol he had hidden behind a bush at the Christ Health Center. The pistol had been reported stolen. Officers also found a 9mm shell casing near the area of the shooting. 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. For more information about Project Safe Neighborhoods, please visit Justice.gov/PSN . The ATF investigated the case along with the Birmingham Police Department. Assistant U.S. Attorney Daniel S. McBrayer prosecuted the case.


title: Uzbek National Who Made False Statements is Sentenced

component: National Security Division (NSD)

body_text: SIDIKJON MAMADJONOV, 37, a citizen of Uzbekistan, was sentenced today by U.S. District Judge Victor A. Bolden in New Haven to one month of imprisonment, time already served, and one year of supervised release, for making false statements to federal law enforcement and in immigration proceedings. U.S. Attorney Vanessa Roberts Avery, Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division, Special Agent in Charge Robert Fuller of the Federal Bureau of Investigation’s New Haven Division, and Special Agent in Charge Michael J. Krol of Homeland Security Investigations in New England, made the announcement. According to the evidence presented during his trial, Mamadjonov immigrated to the U.S. in February 2009, lived in New Britain, Connecticut, and became a lawful permanent resident in September 2010. On May 27, 2013, Mamadjonov departed the U.S. on a flight to Istanbul, Turkey. During or before this trip, he learned that his brother, Saidjon Mamadjonov, had been killed while fighting in the civil war in Syria. Sidikjon Mamadjonov returned to the U.S. on June 11, 2013. In early July 2013, he received a DHL package that contained an iPhone 4. On the phone were several videos and photographs depicting Saidjon in Syria, including videos of Saidjon cleaning weapons in military dress while armed with a weapon, and a photograph of Saidjon after he was killed. During three interviews with FBI special agents in 2014, Mamadjonov responded to questions about the trip he took to Turkey in 2013, and questions about his brother. Mamadjonov made multiple false statements, including that his brother was alive and living in Turkey or Dubai, that he met with his brother while he was in Turkey in 2013, and that his brother sent him a package after he returned from his trip. In August 2016, Mamadjonov stated to FBI special agents that he had a received a package from Sidikjon, did not know the whereabouts of Saidjon, had not overheard any discussions of Uzbeks in the U.S. going over to Syria to fight, and was not aware of any Uzbeks travelling to Syria. At that time, Sidikjon knew that Saidjon was an Uzbek who had traveled from the U.S. to Syria and had died while fighting in the civil war, and that he died prior to the date the package was sent. On October 27, 2016, in an interview with a U.S. Citizenship and Immigration Services officer regarding his U.S. Citizenship and Immigration Services an Application for Naturalization, Form N-400 that he had submitted in September 2014, Mamadjonov again provided false statements about his brother and whether he had previously lied to the FBI. Mamadjonov was arrested on December 22, 2017. On March 7, 2023, a jury found Mamadjonov guilty of three counts of making a false statement to law enforcement, and one count of making a false swearing in an immigration matter. This matter was investigated by the Federal Bureau of Investigation’s Joint Terrorism Task Force, Homeland Security Investigations, Internal Revenue Service – Criminal Investigation Division, U.S. Citizenship and Immigration Services, New Britain Police Department and Hartford Police Department. The case was prosecuted by Assistant U.S. Attorney Edward Chang and Trial Attorney Steven Ward of the National Security Division’s Counterterrorism Section.


title: U.S. Attorney’s Office Emphasizes the Importance of Safe Storage of Firearms

component: USAO - Kentucky, Western

body_text: Louisville, KY - Safe storage of firearms is an important tool for reducing the risk of unintentional shootings, helping to prevent firearm-related suicides, and for making our communities safer. In 2022, the U.S. Centers for Disease Control and Prevention (CDC) reported firearm injuries to be among the five leading causes of death for people ages 1-44 in the United States and the leading cause of death among children and teens ages 1-19. Kentucky’s Child Fatality and Near Fatality External Review Panel’s 2023 Annual Report identified unsafe access to deadly means as a risk factor or characteristic in 83% of firearm-related cases and improper storage was identified in 90% of those cases. Proper storage of firearms can significantly reduce these risks, particularly among children and teenagers. Safe storage also protects adults by decreasing the risk of gun thefts, diversion of firearms to illegal markets, and criminal discharges of firearms. The change in seasons is a great time to review storage practices to ensure all firearms are stored safely. “My commitment to reducing gun violence in our communities includes raising awareness of the safe storage of firearms,” said Western District of Kentucky U.S. Attorney Michael A. Bennett. “Secure storage saves lives by keeping guns out of the hands of children, at-risk persons who may do harm to themselves or others, and individuals who are prohibited by law from possessing firearms. I encourage the public to educate themselves on safe storage and all gun owners to take steps to securely store their firearms in their homes, businesses, and vehicles.” The U.S. Department of Justice released Safe Storage of Firearms Unload it, Lock it, Store it , which discusses secure gun storage, different types of storage devices, and best practices for safely storing firearms. One of the most comprehensive guides on safe storage ever released by the federal government, this publication details safety and security suggestions for firearms. “These practical recommendations promote responsible gun ownership and provide effective safety measures,” said U.S. Attorney Bennett. Nearly all firearm accidents in the home can be prevented by making sure that guns are kept unloaded. Keep ammunition locked in a secure location away from the firearm. When removing firearms from storage, always re-check firearms carefully and completely to be sure that they are still unloaded. Always treat every gun as if it were loaded. If you must have quick access to a loaded firearm, make sure to take special safety precautions and keep them in a secure location readily accessible to responsible adults only. Gun locks or devices that prevent the firearm from being operated without first deactivating the device are effective and should be used as an additional safety precaution to make firearms inoperative to others. Keys and combinations for the safety device should be stored separately in a location inaccessible to children, at-risk persons, and prohibited persons. While gun locks increase safety, these additional precautionary tools should not be used as substitute for secure storage. Every year, thousands of firearms are lost or stolen from homes, businesses, and vehicles. Data compiled for the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF)’s Crime Gun Intelligence and Analysis shows that from 2017 to 2021, more than a million firearms were stolen from private citizens, making up 96% of all firearms reported stolen during that time period. Thefts from vehicles are the largest source of stolen guns, particularly those left in unlocked vehicles or in plain view. Across Kentucky, approximately 3,000 guns are stolen from vehicles yearly, which averages out to over eight thefts a day. To prevent these thefts, firearms should be stored in a locked cabinet, gun safe or gun vault, or secure storage compartment or case designed to be unlocked only by means of a key, a combination, or other similar means. By securely storing firearms, responsible gun owners can deter these thefts and stop firearms from circulating illegally and potentially being used in crimes. Safe storage in the home is critical for preventing the risks of unintentional death, injury, or damage. If you live with a person who is at risk or legally prohibited from possessing a firearm, consider upgrading your storage levels to be absolutely certain that no firearm can be accessed. Always make sure any guns in the home are stored so that they are not accessible to children. Talk to children about the hazards of improper firearm use and teach them safe practices if they do come into contact with a gun. Talk to friends, relatives, or adults in homes where children may visit to ensure safe firearm storage practices are being followed in their homes. “Hiding a firearm, or telling a child not to play with a gun, is not enough to keep a curious child safe from unintentional injuries,” said U.S. Attorney Bennett. “We must all be committed to taking affirmative steps to secure firearms in order to protect our loved ones and keep our homes and communities safe.” The safety and security practices outlined by the Department of Justice are recommendations only. Responsible gun owners should also be aware of all federal, state, and local laws regarding the purchase, possession, carrying, use, storage, and disposition or sale of firearms. ###


title: Portland Man Sentenced to Federal Prison for Role in Fraud Scheme

component: USAO - Oregon

body_text: PORTLAND, Ore.—A Portland man was sentenced to federal prison today for his role in a scheme to steal large quantities of mail and use victims’ personal and financial documents and information to fraudulently obtain apartment leases, open bank accounts without authorization, and acquire other goods and services. Cody Joel Stewart, 43, was sentenced to 51 months in federal prison and five years’ supervised release. Stewart was also ordered to pay $211,831 in restitution to his victims. According to court documents, between April 2020 and April 2023, Stewart worked with multiple accomplices, including Portland residents Felicia Lynn Hawkins and Patrick Dorin Balan, both 35, to carry out a fraud scheme whereby the group would steal large quantities of mail to obtain victims’ personal and financial information. Throughout the conspiracy, Stewart and Hawkins used and distributed stolen personally identifiable information and counterfeit identity documents and checks. In December 2022, during a search of their shared residence, investigators located and seized various counterfeit identification and financial documents, stolen financial documents and mail, paper used to make counterfeit checks, U.S. Treasury checks, counterfeit U.S. currency, and drugs. Stewart was arrested in May 2023 after leading police on a high-speed chase reaching speeds of more than 100 mph. After safely ending the pursuit, officers located additional stolen identification and financial documents in Stewart’s possession. On April 11, 2023, a federal grand jury in Portland returned a 12-count indictment charging Stewart, Hawkins, and Balan with conspiracy to commit bank fraud; bank fraud; using or trafficking an unauthorized access device; producing, using, or trafficking a counterfeit access device; aggravated identity theft; and possession of stolen mail. On March 27, 2024, Stewart pleaded guilty to conspiracy to commit bank fraud and aggravated identity theft. On January 29, 2024, Hawkins also pleaded guilty to conspiring to commit bank fraud. She was later sentenced to time served in federal prison and five years’ supervised release. Balan is on pre-trial release pending a four-day jury trial scheduled to begin on August 6, 2024. This case was investigated by Homeland Security Investigations (HSI) with assistance from the U.S. Postal Inspection Service (USPIS), U.S. Small Business Administration – Office of Inspector General (SBA-OIG), and U.S. Treasury Inspector General for Tax Administration (TIGTA). It was prosecuted by Rachel K. Sowray, Assistant U.S. Attorney for the District of Oregon.


title: Armed Missouri Man Who Triggered Standoff Convicted of Gun Charge

component: USAO - Missouri, Eastern

body_text: ST. LOUIS –A Missouri man who triggered a 19-hour standoff with law enforcement in 2022 was convicted Wednesday in U.S. District Court in St. Louis of a gun charge. The jury found Stephen J. Thorp, 62, of Moberly, guilty of being a felon in possession of a firearm. According to evidence and testimony presented at trial, members of a U.S. Marshals Service Fugitive Task Force were attempting to arrest Thorp on a warrant issued by the Missouri Board of Probation and Parole. Thorp was on parole after having been convicted of second-degree murder and armed criminal action in Marion County Circuit Court. The warrant was triggered by new charges of resisting arrest in Callaway County, Missouri. After a member of the Fugitive task force learned that Thorp was at another man’s home in Randolph County, near Moberly, members of the task force and the Northern Missouri Drug Task Force went to that home on April 11, 2022. Two occupants exited the house and told officers that Thorp was inside. Thorp ignored loudspeaker announcements to leave. A robot and a K-9 were both unsuccessful in getting him out. After a search warrant was obtained, the Moberly SWAT team sent a drone into the home. Thorp fired three shots while the drone was in the house. The drone later captured video of Thorp with a gun in his hand before he used that gun to disable the drone, evidence and testimony showed. The Moberly SWAT later deployed a chemical agent which forced Thorp out of the house. Court exhibit 7E. The U.S. Marshals Service, the Moberly Police Department, the Randolph County Sheriff’s Department, the Missouri State Highway Patrol and the Linn County Sheriff’s Office aided in the arrest. Assistant U.S. Attorneys Ryan Finlen and Paul Rebar are prosecuting the case. This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.


title: Fifteen Defendants Indicted on Drug Trafficking and Firearms Charges

body_text: A federal grand jury returned an indictment yesterday charging 15 Memphis, Tennessee, residents for their involvement in an organized drug trafficking scheme. According to court documents, between November 2023 and June 2024, the defendants allegedly worked together, and with others, to distribute fentanyl, methamphetamine, and marijuana throughout the Memphis area. During the investigation, agents recovered two stolen vehicles and seized 29 firearms, five machinegun conversion devices (known as “switches”), over $4,000 in cash, approximately 938 grams of methamphetamine, approximately 541 grams of fentanyl, approximately 200 grams of psilocybin mushrooms, and 26.43 pounds of marijuana. The indictment charges the following 15 defendants: Defendant Age Charges Brian Lackland 34 Conspiracy to distribute fentanyl, over 500 grams of methamphetamine, and marijuana; possession of firearms during and in relation to drug trafficking crimes; and being a felon in possession of firearms Paul Nelson 31 Conspiracy to distribute fentanyl and over 500 grams of methamphetamine; and being a felon in possession of firearms Ebony Cobb 41 Conspiracy to distribute fentanyl and over 500 grams of methamphetamine Jerrod Cox 31 Conspiracy to distribute fentanyl Darius Moore 38 Conspiracy to distribute fentanyl Edgar Smith 38 Conspiracy to distribute fentanyl Mervin Anderson 38 Conspiracy to distribute fentanyl Courtney Davis 28 Conspiracy to distribute fentanyl Timothy Achols 36 Conspiracy to distribute fentanyl Jehu Cruz 23 Conspiracy to distribute fentanyl; and possession of firearms during and in relation to drug trafficking crimes Mohamed Samba 24 Conspiracy to distribute marijuana; and possession of firearms during and in relation to drug trafficking crimes Prentiss Broadway 33 Possession with intent to distribute fentanyl Braxton Beck 32 Federal firearms offenses and being a felon in possession of firearms Darion Allen 28 Federal firearms offenses and being a felon in possession of firearms Delifarroe Goins 29 Federal firearms offenses and being a felon in possession of firearms If convicted, the defendants charged with conspiracy to distribute marijuana face a maximum penalty of five years in prison and defendants charged with distributing methamphetamine face a maximum penalty of 10 years in prison. The defendants charged with conspiracy to distribute fentanyl face a mandatory minimum of five years or 10 years in prison, depending on the amount distributed, and a maximum penalty of life in prison. The defendants charged with possession of firearms during and in relation to drug trafficking crimes face a mandatory minimum of five years in prison and a maximum penalty of life in prison. Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division, and U.S. Attorney Kevin G. Ritz for the Western District of Tennessee made the announcement. The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); FBI; U.S. Postal Inspection Service (USPIS); Multi-Agency Gang Unit; Memphis Police Department; Bartlett Police Department; and Shelby County Sheriff’s Office investigated the case. Trial Attorneys Amanda Kotula and Aaron Henricks of the Criminal Division’s Violent Crime and Racketeering Section and Assistant U.S. Attorney Neal Oldham for the Western District of Tennessee are prosecuting the case. This case is brought as part of the Criminal Division’s Memphis Violent Crime Initiative, conducted in partnership with the U.S. Attorney’s Office for the Western District of Tennessee and local, state, and federal law enforcement. The joint effort addresses violent crime by employing, where appropriate, federal laws to prosecute gang members and associates in Memphis. As part of the initiative, the Criminal Division has dedicated attorneys and other resources to prosecuting violent offenders and assisting intervention, prevention, and reentry efforts to address the root causes of violent crime. An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.


title: Trussville Man Sentenced in Multi-Million-Dollar Health Care Fraud Case

component: Criminal Investigative Division (FBI)

body_text: BIRMINGHAM, Ala. – Another man has been sentenced in a series of cases involving multi-million-dollar health care fraud and kickback conspiracies, announced U.S. Attorney Prim F. Escalona; Federal Bureau of Investigation Special Agent in Charge Carlton L. Peeples; and U.S. Department of Health and Human Services, Office of Inspector General, Special Agent in Charge Tamala E. Miles. “This was a crime of greed and indifference to the consequences of the actions to the overall health system,” said U.S. Attorney Prim Escalona. “The crime cost insurers millions of dollars, and it exploited vulnerable patients trying to get appropriate medical care, not run up the tab on insurance. We will continue to fight hard to keep our community safe from serious crimes like this one.” “Health care fraud is not a victimless crime. It costs U.S. taxpayers millions of dollars every year. It can raise health insurance premiums, expose patients to unnecessary medical procedures, and increase taxes,” said James DeLoatch, Acting Special Agent in Charge of the FBI Birmingham Division. “The FBI is committed to coordinating with our partners and aggressively pursuing those who take advantage of others for their personal gain. This sentencing should serve as a warning to others who might engage in these types of schemes.” “Kickback arrangements can compromise medical decisions and threaten the integrity of federally funded health care programs,” said Tamala E. Miles, Special Agent in Charge at the U.S. Department of Health and Human Services Office of Inspector General. “Today’s sentence exemplifies our commitment to protecting taxpayer-funded health care programs and the patients they serve.” Earlier this week, U.S. District Court Judge L. Scott Coogler sentenced John Alan Robson, 41, of Trussville, to 56 months in prison. Robson was also ordered to pay forfeiture of about $1.1 million, and restitution of about $5.3 million. In February 2024, Robson pleaded guilty to health care fraud conspiracy related to his work with Brian Bowman, James Ray, and others. According to Robson’s plea agreement, Robson knew that insurers would not pay for items or services that had been ordered based on kickbacks or that were medically unnecessary for a patient. Yet Robson received kickbacks—from specialty pharmacies, a nerve conduction testing company, and brace suppliers—to generate medically unnecessary orders and prescriptions from doctors’ offices that would be billed to insurance and reimbursed at high rates. For example, Robson marketed nerve conduction testing to medical providers for a Huntsville-based company called QBR or Diagnostic Referral Community. QBR paid those providers a flat fee (for example, $50) for each test they ordered that insurance paid for. QBR paid Robson a flat fee for each of those tests, too. QBR paid one of Robson’s medical practices more than $100,000 in per-test kickbacks. As another example, Robson marketed high-reimbursing topical creams—such as pain creams and scar creams—to providers on behalf of specialty pharmacies like Global Compounding Pharmacy and Watson Rx Solutions. Robson was paid lucrative commissions on the cream prescriptions that he and his team generated and insurance paid for. Robson got prescriptions for himself and family members regardless of whether those topical creams were medically necessary for the patients. Robson and other sales reps got blank pre-signed prescriptions from medical providers, filled out the prescriptions to make sure insurance would pay for them, and even selected the drugs or drug formulations to make sure insurance would pay for them. Robson admitted that federal insurance programs paid millions of dollars for medically unnecessary prescriptions for which Robson, Ray, and Bowman received commissions. This case is the latest in a series of cases involving health care fraud and kickbacks through pain clinics, specialty pharmacies, and a nerve conduction company in north Alabama. The FBI and HHS-OIG investigated this case. Assistant U.S. Attorneys J.B. Ward and Don Long prosecuted the case. See related press here: https://www.justice.gov/usao-ndal/pr/medical-sales-rep-and-former-pain-clinic-owner-sentenced-related-multi-million-dollar https://www.justice.gov/usao-ndal/pr/pain-clinic-owners-sentenced-unlawfully-distributing-opioids-and-multimillion-dollar https://www.justice.gov/usao-ndal/pr/etowah-pain-clinic-owner-pleads-guilty-multi-million-dollar-kickback-and-health-care https://www.justice.gov/usao-ndal/pr/multiple-defendants-sentenced-major-compounding-pharmacy-fraud-conspiracy https://www.justice.gov/usao-ndal/pr/new-hope-man-sentenced-his-role-multi-million-dollar-kickback-and-health-care-fraud


title: Convicted Felon Pleads Guilty to Drug and Firearms Offenses

component: USAO - Massachusetts

body_text: BOSTON – A repeat convicted felon pleaded guilty today in federal court in Boston to criminal charges relating to possessing a firearm, multiple rounds of ammunition and fentanyl intended for distribution while on federal supervised release. Francisco Gabriel Diaz, 32, of Boston, pleaded guilty to one count of possession with intent to distribute 40 grams or more of fentanyl and one count of possession of a firearm in furtherance of a drug trafficking offense. U.S. District Court Judge Richard G. Stearns scheduled sentencing for Oct. 10, 2024. Diaz was charged by criminal complaint in December 2021. On June 24, 2021, a search of the residence where Diaz was staying resulted in the recovery of a black Taurus G2S 9mm firearm, a 9mm magazine containing seven live 9mm rounds, a 9mm magazine containing one live 9mm round, over 40 grams of fentanyl, several plastic bags containing crack cocaine, a box of sandwich bags and a digital scale. Diaz was on federal supervised release at the time of the search. The charge of possession with intent to distribute 40 grams or more of fentanyl provides for a sentence of at least five years and up to 40 years in prison, at least four years and up to a lifetime of supervised release and a fine of up to $5 million. The charge of possession of a firearm in furtherance of a drug offense provides for a sentence of at least five years and up to life in prison 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 and Stephen Belleau, Acting Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division made the announcement today. Valuable assistance was provided by the Bureau of Alcohol, Tobacco, Firearms & Explosives and the Boston Police Department. Assistant U.S. Attorney Benjamin A. Saltzman of the Criminal Division 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 gun violence and other violent crime, 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. For more information about Project Safe Neighborhoods, please visit Justice.gov/PSN .


title: Final Defendant and Fugitive in Smash and Grab of Firearms Sentenced to 24 Months’ Imprisonment

body_text: Salt Lake City, Utah – Axel Castillo Hernandez, 20, of West Valley City, Utah, was sentenced yesterday to 24 months’ imprisonment after he admitted to participating in the burglary of two federal firearms licensees where he and his co-conspirator rammed a vehicle through the front doors of Xtreme Pawn and 1st Cash Pawn in 2022 and stole firearms. In addition to Hernandez’s term of imprisonment, U.S. District Court Judge Tena Campbell ordered he serve a term of three years’ supervised release and pay a fine of $250,000. The sentencing comes nearly a year after Hernandez’s co-defendant, Angel Jovanny Gonzalez-Luna, 21, plead guilty and was sentenced in August 2023. According to court documents and statements made at Hernandez’s change of plea hearing in March 2024, Hernandez and his co-defendant, Luna, smashed stolen vehicles through the front of Xtreme Pawn and 1st Cash Pawn in August 2022 and September 2022. As a result, the owners’ vehicles and business owners’ property suffered extensive damage. During the burglaries, Hernandez and Luna stole approximately 30 firearms. According to ATF, one of the stolen firearms was recovered in December 2022 and later forensically linked to a homicide. There is no evidence showing that Hernandez was responsible for, or in any way participated in that homicide; rather, it shows Hernandez and Luna sold or otherwise disposed of the stolen firearms without regard for how they would be used. In October 2023, Hernandez, who was a fugitive for over a year, was arrested, but not without first fleeing from law enforcement by vehicle and on foot. United States Attorney Trina A. Higgins made the announcement. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). An Assistant United States Attorney from the U.S. Attorney’s Office for the District of Utah 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 gun violence and other violent crime, 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. For more information about Project Safe Neighborhoods, please visit Justice.gov/PSN .


title: Birmingham Home Builder Sentenced For $1.2 Million-Dollar Fraud

component: Federal Bureau of Investigation (FBI)

body_text: BIRMINGHAM, Ala. – A Birmingham-area man has been sentenced for defrauding more than a dozen victims whose homes he had promised to build, announced U.S. Attorney Prim F. Escalona and Federal Bureau of Investigation Special Agent in Charge Carlton L. Peeples. U.S. District Judge Annemarie Carney Axon sentenced Cecil Wayne Sanford , 58, of Birmingham, to 58 months in prison. Sanford was also ordered to pay forfeiture and restitution of about $1.27 million. In April 2024, Sanford pleaded guilty to wire fraud. According to the plea agreement, Sanford was a residential builder in Alabama who operated through his business, Stone Pointe Builders, LLC. Between 2020 and early 2022, more than a dozen victims in the Birmingham area contracted with Sanford to build their homes and paid Sanford substantial sums of money (tens of thousands of dollars or more). Yet the victims saw little or no work done despite Sanford’s representations, draws on their construction loans, and invoices for construction-related expenses. Sanford made statements to victims about how their funds would be used and then spent the money in other ways. In February 2022, days after closing with a family on a construction contract and collecting more than $27,000 from the family as a down payment, Sanford moved $10,000 into his personal bank account, withdrew it, abruptly closed the business, and left town. The FBI investigated the case. . The Alabama Home Builders Licensure Board assisted in the investigation. Assistant U.S. Attorney J. B. Ward prosecuted the case.


title: Connecticut Fisherman Pleads Guilty to Tax Evasion

component: Tax Division

body_text: A Connecticut man pleaded guilty today to evading taxes on income he earned as a commercial fisherman. According to court documents and statements made in court, Brian Kobus, of Durham, Connecticut, worked as a commercial fisherman and deckhand for fishing companies in Massachusetts. After each fishing trip, the companies paid him by check. Despite receiving over $1.4 million in fishing income between 2011 through 2013, and 2017 through 2021, Kobus did not file federal income tax returns or pay the taxes that he owed. To conceal the source and disposition of his income from the IRS, Kobus regularly cashed his paychecks from the fishing companies and used the cash to fund his lifestyle. In total, he caused a tax loss to the IRS of approximately $377,839.90. Korbus is scheduled to be sentenced on Oct. 16 and faces a maximum penalty of five years in prison. He also faces a period of supervised release, restitution and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Joshua S. Levy made the announcement. IRS Criminal Investigation is investigating the case. Trial Attorney Matthew L. Cofer of the Justice Department’s Tax Division and Assistant U.S. Attorney Victor Wild for the District of Massachusetts are prosecuting the case.