title: Justice Department and Consumer Financial Protection Bureau Sue Texas-Based Developer and Lender Colony Ridge for Bait-and-Switch Land Sales and Predatory Financing

component: Office of the Attorney General

body_text: The Justice Department and Consumer Financial Protection Bureau (CFPB) today sued Colony Ridge, a Texas-based developer and lender, for operating an illegal land sales scheme and targeting tens of thousands of Hispanic borrowers with false statements and predatory loans. “Today’s complaint alleges that Colony Ridge targeted Hispanic consumers with predatory loans, misled borrowers about the water, sewer, and electrical infrastructure on its lots, and exploited language barriers by conducting most of its marketing in Spanish while offering important transaction documents only in English,” said Attorney General Merrick B. Garland. “Discrimination in lending harms families and neighborhoods for generations, it is wrong, and it has no place in our country. That is why I launched the Department’s Combating Redlining Initiative more than two years ago and why we remain steadfast in our commitment to continue this work.” The lawsuit filed in federal district court alleges Colony Ridge sells unsuspecting families flood-prone land without water, sewer, or electrical infrastructure, and that the company sets borrowers up to fail with loans they cannot afford. Roughly one-in-four Colony Ridge loans ends in foreclosure, after which the company repurchases the properties and sells them to new borrowers. The Justice Department and CFPB are seeking redress for borrowers harmed by Colony Ridge and an immediate end to its illegal practices. “Colony Ridge promised the American dream, but we allege that in reality, it has delivered a nightmare for thousands of hardworking Hispanic families who hoped to build their homes in the Terrenos Houston community,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This lawsuit demonstrates our commitment to holding accountable those in the housing and financial industry who intentionally target and exploit homebuyers because they are Hispanic or don’t speak English well. Through our Combating Redlining Initiative, the Justice Department will aggressively continue to dismantle predatory, deceptive, and unfair lending practices to safeguard the rights of all who seek to buy a home.” “The lawsuit filed in federal court by the CFPB and the Justice Department charges Colony Ridge with a slew of illegal misconduct and seeks to stop this set-up-to-fail scheme that has led thousands of families to lose their dreams of homeownership,” said CFPB Director Rohit Chopra. “Our investigation uncovered that Colony Ridge is baiting borrowers with lies, saddling families with predatory loans for homesites that the company knows have repeatedly flooded with raw sewage and lacked basic utility infrastructure.” “Using 21st century social-media applications to target and mislead consumers, Colony Ridge set out to exploit something as old as America — an immigrant’s dream of owning a home,” said U.S. Attorney Alamdar S. Hamdani for the Southern District of Texas (SDTX). “As alleged in the complaint, Colony Ridge’s exploitative practice began with misleading advertising on platforms like TikTok and often ended with families facing economic ruin, no home, and shattered dreams. The SDTX, joined by our partners at the Justice Department’s Civil Rights Division and the CFPB, filed the complaint as a promise to work tirelessly to bring justice for the Hispanic families who fell prey to Colony Ridge’s alleged predatory lending practices and to send out a warning to the vulnerable: beware of lenders who use promises of easy financing to steal both nest-eggs and dreams.” The lawsuit names as defendants three Texas-based Colony Ridge affiliate companies, as well as Loan Originator Services, a nonbank mortgage company licensed to originate loans in Texas. Colony Ridge has developed more than 40,000 lots spread across an unincorporated area of Liberty County, Texas, approximately 30 miles northeast of Houston. Colony Ridge markets these subdivisions using the names “Terrenos Houston” and “Terrenos Santa Fe.” According to the complaint, Colony Ridge targets Spanish-speaking borrowers: it advertises almost exclusively in Spanish, often in TikTok or other social media posts featuring, for example, national flags and regional music from Latin America. In these advertisements, Colony Ridge promises consumers the dream of homeownership with its own seller financing: an easy-to-obtain loan product that requires no credit check and only a small deposit. The complaint further alleges that Colony Ridge has lured tens of thousands of vulnerable Hispanic consumers into their predatory loan products. Foreclosure and property deed records from September 2019 through September 2022 show that Colony Ridge initiated foreclosures on at least 30% of seller-financed lots within just three years of the purchase date, with most loan failures occurring even sooner. Records also confirm that Colony Ridge accounted for more than 92% of all foreclosures recorded in Liberty County between 2017 and 2022. Specifically, the complaint filed today alleges that Colony Ridge: Misleads borrowers about infrastructure on the lots it sells: Colony Ridge has falsely represented that lots in the Terrenos Houston subdivisions were sold with water, sewer, and electrical infrastructure already in place. The complaint cites numerous advertisements, including TikTok videos where the company makes claims like “Terrenos Houston tiene todos los servicios de ciudad por cada terreno” (“Terrenos Houston has all city services for each lot”). It is only after applicants pay a non-refundable deposit that Colony Ridge discloses the properties may not provide those services and makes that disclosure only in English. Sells lots that flood with rain and raw sewage: The complaint alleges that Colony Ridge employees fail to inform borrowers of flood risk when lots have repeatedly flooded in the past, or falsely tells them the lots have not flooded. In fact, in parts of the Terrenos Houston subdivision, rain causes significant flooding, causing raw sewage to run through or around borrowers’ property, and damaging their personal belongings. Targets Hispanic consumers with predatory loans : Through direct-to-consumer marketing on websites, social media engagement, and telemarketing, Colony Ridge targets Hispanic consumers. Colony Ridge then exploits language barriers during its sales process and uses high-pressure sales tactics to push borrowers to obtain their loan product quickly. The loans have exorbitant interest rates. Between 2017 and 2021, interest rates on Colony Ridge’s loans ranged from between 10.9% to 12.9%, while a standard 20-year fixed rate loan averaged 2.35% to 4.05% during the same timeframe. And in extending the loan, Colony Ridge and Loan Originator Services did not collect information needed to determine if applicants can afford the loan. Churns through borrowers in a cycle of foreclosure: When families fall behind on payments and enter foreclosure, it allows Colony Ridge to “flip” the properties by repurchasing and reselling them, often at higher prices. Foreclosure and property deed records show that Colony Ridge flipped at least 40% of all the properties it sold between September 2019 and September 2022, selling approximately 8,237 properties twice, 3,267 properties three times, and 2,067 properties four or more times in three years. Exploits language barriers at borrowers’ expense: While Colony Ridge conducts most of its marketing activities in Spanish, when it comes to the actual transaction it offers important documents only in English. Failing to offer borrowers accurate translations of contracts, deeds, and other documents in the language in which it conducts the sales and exploiting borrowers’ limited English proficiency violates federal law. Enforcement Action The complaint alleges that defendants unlawfully discriminated against applicants on the basis of their race or national origin in violation of the Fair Housing Act (FHA). Under the FHA, the Justice Department has the authority to take enforcement action against real estate companies, lending institutions, and other entities whose practices discriminate in residential real estate-related transactions, the availability of housing, and housing-related services. The complaint also alleges that defendants unlawfully discriminated against applicants on the basis of their race or national origin in violation of the Equal Credit Opportunity Act (ECOA), and its implementing regulation, Regulation B. Both the Justice Department and CFPB have the authority to enforce ECOA. Additionally, the complaint alleges defendants’ deceptive acts and practices violate the Consumer Financial Protection Act of 2010 (CFPA) and the Interstate Land Sales Full Disclosure Act (ILSA) and its implementing regulations, Regulation K and Regulation J, all of which is enforced by CFPB. The complaint seeks to stop Colony Ridge’s alleged unlawful conduct, provide relief for affected consumers, and impose a civil penalty payable to the CFPB victims relief fund . If the defendants are found liable, the amount of any restitution will be determined in the litigation in federal court. Anyone who believes they have been harmed by the practices of Colony Ridge Development LLC, Colony Ridge BV LLC, Colony Ridge Land LLC, and Loan Originator Services LLC should call the Justice Department’s Housing Discrimination Hotline at 1-833-591-0291, press 1 for English, then 3 for fair lending, and then 1 for Colony Ridge Lawsuit to leave a message. For the Spanish Hotline, callers should press 2 for Spanish, then 3 for fair lending, and then 1 for Colony Ridge Lawsuit to leave a message. Individuals can also send an email to ColonyRidge.Lawsuit@usdoj.gov . This lawsuit is a part of the Justice Department’s Combating Redlining Initiative . Redlining is the illegal practice where lenders deprive communities of color from equal access to loans and lending opportunities. Reverse redlining occurs when lenders target communities of color with inflated interest rates and/or other unjust lending terms. Both practices prevent communities of color from achieving sustainable homeownership and both deny these communities the opportunity to build wealth. The Combating Redlining Initiative is the Justice Department’s most aggressive and coordinated enforcement effort to address all forms of redlining. Since 2021, the Justice Department’s Combating Redlining Initiative has secured over $100 million and 10 settlement agreements with banks and mortgage lending institutions to provide credit opportunities to communities of color in Houston; Memphis, Tennessee; Philadelphia; Camden, New Jersey; Wilmington, Delaware; Newark, New Jersey; Los Angeles; Columbus, Ohio; Tulsa, Oklahoma; Rhode Island; and Jacksonville, Florida. The Department has partnered with U.S. Attorneys’ Offices, federal financial regulatory agencies, including the CFPB, and state Attorneys General offices to enforce federal fair lending laws that prohibit redlining. This lawsuit is the first reverse redlining action under the initiative. The Justice Department’s website has resources about fair lending . The Department accepts complaints of discrimination at www.civilrights.justice.gov/ . Fair housing and lending discrimination complaints may also be sent to fairhousing@usdoj.gov . CFPB’s website has resources about credit discrimination and mortgages . Consumers can submit complaints about financial products or services by visiting the CFPB’s website or by calling (855) 411-CFPB (2372). Employees of companies who they believe their company has violated federal consumer financial laws are encouraged to send information about what they know to whistleblower@cfpb.gov . colony_ridge_complaint.pdf


title: Departamento de Justicia y Oficina para la Protección Financiera del Consumidor demandan al desarrollador y prestamista Colony Ridge, con sede en Texas, por ventas engañosas de tierras y financiamiento predatorio

body_text: El Departamento de Justicia y la Oficina para la Protección Financiera del Consumidor (CFPB, por sus siglas en inglés) demandaron hoy a Colony Ridge, una empresa desarrolladora y prestamista con sede en Texas, por operar un esquema ilegal de ventas de tierras, y por hacer blanco de decenas de miles de prestatarios hispanos haciendo falsas declaraciones y ofreciéndoles préstamos depredadores. “La demanda de hoy alega que Colony Ridge usó a consumidores hispanos como blanco de sus préstamos depredadores, mintió a los prestatarios acerca de la infraestructura para agua, cloacas y electricidad disponible en sus lotes, y se aprovechó de las barreras del idioma, efectuando la mayor parte de su mercadeo en español, mientras ofrecía importantes documentos transaccionales solamente en inglés”, dijo el Fiscal General Merrick B. Garland. “La discriminación crediticia afecta a familias y comunidades por generaciones, no es correcto, y no tiene cabida en nuestro país. Es por ello que, desde hace dos años, he lanzado la Iniciativa para Combatir la Exclusión Financiera en el Departamento de Justicia, y por lo que nos mantenemos determinados a continuar esta labor”. La demanda presentada en un tribunal de distrito federal alega que Colony Ridge vende a familias desprevenidas tierras propensas a inundaciones sin agua, alcantarillado o infraestructura eléctrica, y que la empresa prepara a los prestatarios para que quiebren con préstamos que no pueden pagar. Aproximadamente uno de cada cuatro préstamos de Colony Ridge termina en ejecución hipotecaria, después de lo cual la empresa recompra las propiedades y las vende a nuevos prestatarios. El Departamento de Justicia y la CFPB buscan reparación para los prestatarios perjudicados por Colony Ridge y el fin inmediato de sus prácticas ilegales. “Colony Ridge prometía cumplir el sueño americano, pero alegamos que en realidad solo le ha creado pesadillas a miles de familias trabajadoras hispanas, que esperaban poder construir sus hogares en la comunidad Terrenos Houston”, dijo Kristen Clarke, Fiscal General Auxiliar de la División de Derechos Civiles del Departamento de Justicia. “Esta demanda demuestra nuestro compromiso de hacer rendir cuentas a aquellos que, dentro de la industrias hipotecaria y financiera, busquen hacer blanco y explotar a compradores de vivienda solo por ser hispanos o no hablar bien inglés. A través de nuestra Iniciativa para Combatir la Exclusión Financiera, el Departamento de Justicia continuará agresivamente desmantelando prácticas depredadoras, engañosas e injustas en el otorgamiento de crédito, para salvaguardar los derechos de todo quienes busquen comprar una vivienda”. “La demanda de la CFPB y el Departamento de Justicia en el tribunal federal alega un sinnúmero de cargos contra Colony Ridge de una serie de conductas ilegales y busca detener este plan preparado para fracasar que ha llevado a miles de familias a perder sus sueños de tener vivienda propia”, dijo el director de la CFPB, Rohit Chopra. “Nuestra investigación descubrió que Colony Ridge está hostigando a prestatarios con mentiras, recargando a las familias con préstamos abusivos para terrenos que la compañía sabe que se han inundado repetidamente con aguas residuales y carecían de infraestructura de servicios básicos”. “Al usar aplicaciones de redes sociales del siglo 21 para hacer blanco de consumidores y engañarlos, Colony Ridge explotó algo que es tan antiguo como nuestro país, el sueño de un inmigrante a tener su propia vivienda”, dijo Alamdar S. Hamdani, Fiscal de los Estados Unidos para el Distrito Sur de Texas (SDTX, por sus siglas en inglés). “Como alegamos en la demanda, la práctica explotadora de Colony Ridge comenzaba con publicidad engañosa en plataformas de redes sociales, como Tik Tok, y terminaba con familias económicamente arruinadas, sin casa, cuyos sueños han sido destruidos. El SDTX, junto a la División de Derechos Civiles del Departamento de Justicia y la CFPB, ha entablado esta demanda como una promesa de trabajar incansablemente por las familias hispanas que fueron víctimas de las supuestas prácticas predatorias de otorgamiento de crédito de Colony Ridge, y como advertencia a quienes se sientan vulnerables para que no confíen en prestamistas que prometan financiamiento fácil, y luego roben sus ahorros y sueños”. La demanda nombra como demandados a tres compañías afiliadas a Colony Ridge, así como también a Loan Originator Services, una empresa hipotecaria no bancaria, que tiene licencia del estado de Texas para otorgar préstamos. Colony Ridge ha desarrollado más de 40,000 lotes de tierras, esparcidos en un área no incorporada del condado Liberty en Texas, aproximadamente a 30 millas al noroeste de la cuidad de Houston. Colony Ridge mercadea estas subdivisiones como “Terrenos Houston” y “Terrenos Santa Fe”. Según la demanda, Colony Ridge hace blanco de prestatarios hispanoparlantes: La compañía pública casi exclusivamente en español, frecuentemente usando Tik Tok u otros mensajes en redes sociales donde muestran, por ejemplo, banderas y música regional de países de Latino América. En sus piezas publicitarias, Colony Ridge les promete a los consumidores la posibilidad de cumplir su sueño de tener su propia vivienda, usando su propio financiamiento del vendedor; un préstamo fácil de obtener, que no requiere revisión de crédito y sólo exige un pequeño depósito. La demanda alega que Colony Ridge ha inducido a decenas de miles de consumidores hispanos a tomar sus productos crediticios depredadores. Datos sobre ejecuciones hipotecarias y títulos de propiedad, desde septiembre del 2019 a septiembre del 2022, muestran que Colony Ridge inició ejecuciones hipotecarias en, al menos, 30% de los lotes de tierras financiados por el vendedor, en los primeros tres años después de la compra, mientras la mayoría de los préstamos fallaban incluso antes de tres años. Los datos confirman que Colony Ridge fue responsable de más del 92% de las ejecuciones hipotecarias registradas en el condado Liberty entre los años 2017 y 2022. Específicamente, la demanda radicada hoy alega que Colony Ridge: Engaña a los prestatarios acerca de la infraestructura existente en los lotes que vende: Colony Ridge ha hecho creer falsamente que los lotes en las subdivisiones Terrenos de Houston, son vendidos con infraestructura ya instalada para servicios de agua, cloacas y electricidad. La demanda cita numerosos anuncios publicitarios, incluyendo videos en Tik Tok, en los cuales la compañía hace declaraciones como: “Terrenos Houston tiene todos los servicios de ciudad por cada terreno”. Solamente después que los solicitantes han pagado depósitos no reembolsables que Colony Ridge les informa que la propiedad podría no contar con dicha infraestructura, y hace esa declaración solamente en inglés. Vende lotes de tierra que se inundan por la lluvia o con aguas de cloaca: La demanda alega que los empleados de Colony Ridge no informan a los prestamistas de los riesgos de inundación de lotes que ya se han inundado repetidamente en el pasado, o falsamente aseguran que nunca se han inundado. De hecho, en algunas partes de la subdivisión Terrenos Houston, la lluvia provoca inundaciones severas, lo que causa que las aguas de cloaca corran a través o alrededor de las propiedades de los prestatarios, y dañen sus pertenencias. Hicieron blanco a consumidores hispanos con préstamos abusivos: A través del mercadeo directo al consumidor en sitios web, la participación en las redes sociales y el telemercadeo, Colony Ridge hizo blanco a consumidores hispanos. Luego Colony Ridge explota las barreras del idioma durante su proceso de ventas y utiliza tácticas de ventas de alta presión para presionar a los prestatarios para que obtengan su producto crediticio rápidamente. Los préstamos tienen tasas de interés exorbitantes. Entre 2017 y 2021, las tasas de interés de los préstamos de Colony Ridge oscilaron entre el 10,9% y el 12,9%, mientras que un préstamo estándar de tasa fija a 20 años promedió entre el 2,35% y el 4,05% durante el mismo período de tiempo. Y al otorgar el préstamo, Colony Ridge y Loan Originator Services no recopilaron la información necesaria para determinar si los solicitantes pueden pagar el préstamo. Exprime a los prestatarios en un ciclo que lleva a la ejecución hipotecaria: Al atrasarse las familias con sus pagos y caer en una ejecución hipotecaria, Colony Ridge puede “flip” o “voltear” las propiedades comprándolas nuevamente y revendiéndolas, muchas veces a precios más altos. Datos sobre ejecuciones hipotecarias y títulos de propiedad muestran que Colony Ridge volteó al menos, el 40 por ciento de las propiedades que vendió entre septiembre del 2019 y septiembre del 2022. En tres años, la compañía vendió aproximadamente 8,237 propiedades dos veces, vendió otras 3,267 tres veces y otras 2,067 cuatro o más veces. Explota las barreras del idioma que tienen los prestatarios: Mientras que Colony Ridge efectúa la mayor parte de su publicidad en español, cuando se trata de transacciones, ofrece importantes documentos solamente en inglés. Fallar en ofrecerles a los prestatarios traducciones exactas de contratos, pagarés y otros documentos, en el lenguaje en el cual habían efectuado la venta y explotar la capacidad limitada de hablar inglés de los prestatarios, viola leyes federales. Acción de cumplimiento de ley La demanda alega que los demandados ilegalmente discriminaron a los solicitantes basándose en su raza u origen nacional, violando la Ley de Vivienda Justa (FHA, por sus siglas en inglés). Según lo establecido en la FHA, el Departamento de Justicia tiene la autoridad de tomar acciones de ejercicio de ley contra compañías de bienes raíces, instituciones de crédito y otras entidades, cuyas prácticas discriminen en la realización de transacciones de bienes raíces, en la disponibilidad de vivienda, y en la oferta de servicios de vivienda. La demanda también alega que los demandados ilegalmente discriminaron a los solicitantes basándose en su raza u origen nacional, violando lo establecido en la Ley de Igualdad de Oportunidad de Crédito (ECOA, por sus siglas en inglés) y sus Normativa de Implementación B. Tanto el Departamento de Justicia como la CFPB tienen la autoridad para hacer cumplir la ECOA. Adicionalmente, la demanda alega que los actos y prácticas engañosas de los demandados violaron lo establecido por la Ley de Protección Financiera del Consumidor (CFPA, por sus siglas en inglés) del 2010 y la Ley de Divulgaciones Completas en Ventas de Tierras (ILSA, por sus siglas en inglés) y sus Normativas de Implementación K y J, sobre las cuales, la CFPB tiene la autoridad para ejercer su cumplimiento. La demanda busca poner fin a la supuesta conducta ilegal de la compañía Colony Ridge, proveer reparaciones a los consumidores afectados e imponerle una multa monetaria civil que será depositada en el fondo de la CFPB para el alivio de víctimas (en inglés). Si los demandados son encontrados responsables, el monto de cualquier indemnización será determinado durante la litigación en la corte federal. Toda persona que crea haber sido afectada por las prácticas de negocios de Colony Ridge Development LLC, Colony Ridge BV LLC, Colony Ridge Land LLC y Loan Originator Services LLC, debe llamar a la Línea de Ayuda Contra la Discriminación del Departamento de Justicia, al 1-833-591-0291, marque el 2 para hablar en español, marque el 3 para seleccionar discriminación en préstamos justos y marque el 1 para dejar un mensaje de Colony Ridge, o escriba a la dirección email ColonyRidge.Lawsuit@usdoj.gov . Esta demanda forma parte de la Iniciativa para Combatir la Exclusión Financiera del Departamento de Justicia. La exclusión es una práctica ilegal, a través de la cual, los prestamistas les niegan a comunidades de color, acceso equitativo a oportunidades de préstamos y crédito. La exclusión reversa ocurre cuando los prestamistas ofrecen tasas de interés infladas y términos de crédito injustos a comunidades de color. Ambas prácticas evitan que estas comunidades alcancen una propiedad de vivienda sostenible, y les niega la oportunidad de construir riqueza. La Iniciativa para Combatir la Exclusión Financiera es el esfuerzo de cumplimiento de ley más agresivo y coordinado del Departamento de Justicia para enfrentar toda forma de exclusión. Desde el año 2021, la misma ha obtenido más de $100 millones en 10 acuerdos de resolución alcanzados con bancos e instituciones crediticias, para proveer de oportunidades de acceso al crédito a comunidades de color en Houston, Memphis (Tennessee), Philadelphia, Camden (New Jersey), Wilmington (Delaware), Newark (New Jersey), Los Angeles, Columbus (Ohio), Tulsa (Oklahoma), Rhode Island, y Jacksonville (Florida). El Departamento de Justicia se ha asociado con las Oficinas de los Fiscales Federales, agencias federales reguladoras de la industria financiera, incluyendo a la CFPB, y las Oficinas de fiscalías estatales, para hacer cumplir las leyes federales de equidad en el crédito que prohíben la exclusión. Esta demanda, es la primera acción contra la exclusión reversa, tomada bajo la iniciativa. La página web del Departamento de Justicia ofrece recursos sobre la equidad en el crédito . El Departamento de Justicia recibe quejas sobre discriminación en la página www.civilrights.justice.gov/ . Quejas acerca de discriminación en vivienda o crediticia también pueden ser enviadas escribiendo a la dirección email fairhousing@usdoj.gov . La página web de la CFPB ofrece recursos sobre la discriminación en el crédito (en inglés) e hipotecas . Los consumidores pueden enviar quejas en la página de la CFPB , o llamando al (855) 411-CFPB (2372). Se les alienta a aquellos empleados que crean que las compañías donde trabajan han violado leyes de protección financiera al consumidor a enviar la información que tengan a la dirección whistleblower@cfpb.gov . colony_ridge_complaint.pdf


title: Former bank teller sentenced for stealing nearly $90,000 deposited by Georgia convenience store

component: USAO - Georgia, Southern

body_text: STATESBORO, GA: A former Candler County bank teller has been sentenced to federal prison after pleading guilty to skimming money from a convenience store’s deposits. Kayla Monroe Evans , 32, of Metter, Ga., was sentenced to two months in prison followed by two months of home confinement after pleading guilty to Bank Fraud, said Jill E. Steinberg, U.S. Attorney for the Southern District of Georgia. U.S. District Court Chief Judge J. Randal Hall also ordered Evans to pay $97,165 in restitution and to serve five years of supervised release. “Kayla Evans violated the trust of her employer and its customer, and is being held accountable for her theft,” said U.S. Attorney Steinberg. “This sentence offers assurance that those who commit fraud will be brought to justice.” As described in court documents and testimony, Evans worked as a teller for the Synovus Bank in Metter, where a local convenience store maintained its account. An auditor for the store began noticing discrepancies between the amount of cash presented to the bank for deposit compared to the amount credited to the store and worked with the bank to determine the cause. A subsequent investigation found that from July 2019 through February 2021, Evans personally handled the store’s deposits, frequently skimming cash for her personal use from the amount presented and crediting a smaller deposit to the store. In total, Evans stole approximately $87,748 from the convenience store’s deposits. As part of her plea agreement, Evans agreed to pay restitution for the full loss caused by her criminal conduct, and to never seek employment in any financial institution. “We are pleased to work with the U.S. Attorney’s Office in bringing to justice those who commit bank fraud for their own personal gain,” said Brian Tucker, Special Agent in Charge, Eastern Region, Office of Inspector General for the Board of Governors of the Federal Reserve System and the Consumer Financial Protection Bureau. The federal investigation was led by the Office of Inspector General for the Federal Reserve Board and the Consumer Financial Protection Bureau. The investigation received support from the Candler County Sheriff’s Office, the District Attorney’s Office for the Middle Judicial Circuit, and the Georgia Bureau of Investigation. The case was prosecuted for the United States by Assistant U.S. Attorney Matthew A. Josephson.


title: Former City of Jackson Employee Sentenced for Wire Fraud

component: Federal Bureau of Investigation (FBI)

body_text: Jackson, Miss.– A former City of Jackson employee was sentenced to 5 years of probation for wire fraud and ordered to pay approximately $54,000 in restitution. According to court documents, Keyshia Sanders, 48, the City of Jackson’s former Constituent Service Manager, pleaded guilty to engaging in a wire fraud scheme to fraudulently induce the disbursement of grant money for her own benefit. The scheme involved the use of fraudulent invoices that caused the grant’s fiscal agent to disburse funds to Sanders in clear contradiction to the terms of the grant and Sander’s role as a City of Jackson employee. The grant was intended to provide project support in the City of Jackson to invest in artists, artist collectives, and small arts organizations. In total, the fraudulent transactions caused by Sanders over the course of the scheme totaled a loss of approximately $54,000. U.S. Attorney Todd W. Gee of the Southern District of Mississippi and Special Agent in Charge Jermicha Fomby of the Federal Bureau of Investigation made the announcement. The Federal Bureau of Investigation and the Mississippi State Auditor’s Office investigated the case.


title: Scituate Man Sentenced to Ten years In Federal Prison for Possession of Child Pornography Following Earlier Federal Conviction for Child Pornography Offenses

component: USAO - Rhode Island

body_text: PROVIDENCE – A North Scituate man, convicted in May 2009 and incarcerated in federal prison for possessing and distributing child pornography, has been sentenced to serve a further 10 years in federal prison for being in possession of child pornography after completing his previous sentence and while serving a term of federal supervised release, announced United States Attorney Zachary A. Cunha. Based on information received from the National Center for Missing and Exploited Children in April of 2002, the Rhode Island State Police Internet Crimes Against Children (ICAC) Task Force identified an IP address, assigned to a business located on the ground floor of a multi-residence building in North Scituate, as having accessed child pornography. Further investigation by Homeland Security Investigations and Federal Probation officers successfully identified Brian Murphy, 54, a resident of the building, as having accessed child pornography using the business’ Wi-Fi. s. Murphy ultimately admitted to a federal judge that he used the Wi-Fi service and possessed child pornography. He was sentenced on Tuesday by U.S. District Court Judge William E. Smith to a term of 120 months of incarceration in federal prison, to be followed by 10 years of federal supervised release. The case was prosecuted by Assistant United States Attorney Milind M. Shah. ###


title: Vancleave Man Pleads Guilty to Possession of Child Pornography

body_text: Gulfport, Miss. - A Vancleave, Mississippi man pled guilty to possession of more than 9,900 images and videos of child pornography, announced U.S. Attorney Todd W. Gee and Special Agent in Charge Jermicha Fomby of the Federal Bureau of Investigation. According to court documents, Cameron Willis Cotrill, 67, was identified in an online child exploitation investigation on the BitTorrent network for offenders possessing and sharing child sexual abuse material. As part of the investigation, a direct download was completed of 139 files that were being made available from Cotrill’s device at his Vancleave address. On January 11, 2022, the FBI assisted state officers with the execution of a state search warrant at Cotrill’s address. Full forensic examinations of Cotrill’s electronic devices recovered at the search determined that Cotrill possessed over 9,900 images and videos on his desktop computer depicting the sexual abuse of children. Cotrill is scheduled to be sentenced on April 11, 2024, at 10:00 a.m., in Gulfport. He faces a maximum penalty of 20 years in prison. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. The Federal Bureau of Investigation is investigating the case with assistance from the Mississippi Attorney General’s Office. Assistant U.S. Attorney Andrea Jones is prosecuting the case. This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov .


title: Six Connecticut Men Charged with Offenses Stemming from Gun Trafficking Investigation

component: USAO - Connecticut

body_text: Vanessa Roberts Avery, United States Attorney for the District of Connecticut, James Ferguson, Special Agent in Charge, ATF Boston Field Division, and Bridgeport Police Chief Roderick Porter today announced that a federal grand jury in New Haven has returned a 12-count indictment charging the following six individuals with gun trafficking and other offenses: STEFAN BAGLEY, JR. , 22, of Stratford TREMAYNE FERGUSON , a.k.a., “Tre,” 23, of West Haven JAMAINE ADKINS, JR. , a.k.a. “G Banger,” 21, of Stratford JEFFREY CHARLESTON , a.k.a. “J Dot,” 20, of Bridgeport ESKAVAIL GORDON , a.k.a. “Vail,” 20, of Stratford CHASE DRALLE , a.k.a. “Chevy,” 20, of Trumbull The indictment was returned on December 12, 2023, and the six defendants were arrested on December 18. As alleged in the indictment, court documents, and statements made in court, on July 26, 2023, Stefan Bagley, Jr. was shot and wounded while traveling in his vehicle in Bridgeport. Later that same day, Bagley’s vehicle was used in another shooting incident in Bridgeport. An investigation revealed that, between October 2022 and October 2023, Bagley purchased approximately 20 9mm handguns from licensed firearm dealers, and then trafficked the guns through a network of customers, including Ferguson, Charleston, Gordon, and Dralle. Bagley typically scratched the serial numbers off of the firearms before providing them to his customers, making the guns more difficult to trace. To date, only one of the firearms purchased by Bagley is accounted for. The indictment charges Bagley with engaging in the business of dealing firearms without a license, which carries a maximum term of imprisonment of five years, and with making a false statement during the purchase of a firearm, which carries a maximum term of imprisonment of 10 years. The indictment also charges Bagley, Ferguson, Charleston, Gordon, and Dralle with one or more firearms trafficking offenses, each of which carries a maximum term of imprisonment of 15 years. Adkins is charged with possession of a firearm with an obliterated serial number, which carries a maximum term of imprisonment of five years. U.S. Attorney Avery noted that this case is being prosecuted, in part, under the new criminal provisions of the Bipartisan Safer Communities Act, which Congress enacted and the President signed in June 2022. The Act is the first federal statute specifically designed to target the unlawful trafficking and straw-purchasing of firearms. U.S. Attorney Avery stressed that an indictment is not evidence of guilt. Charges are only allegations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt. This matter is being investigated by Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Bridgeport Police Department, and the Connecticut State Police. The case is being prosecuted by Assistant U.S. Attorneys Margaret Maigret Donovan and Jessica Casey through Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.


title: Two Men Indicted For Theft Of 123 Guns From Dunham’s Sports Store In Benton Harbor

component: USAO - Michigan, Western

body_text: The men are charged with kidnapping, robbery, and stealing guns from a federally licensed firearm dealer. GRAND RAPIDS, MICHIGAN — U.S. Attorney for the Western District of Michigan Mark Totten today announced that the Grand Jury returned an indictment charging Darnell Bishop and Dontrell Nance, both from Benton Harbor, with kidnapping, interference with commerce by robbery, brandishing a firearm during and in relation to a crime of violence, and theft of firearms from a federal firearms licensee. Nance is also charged with being a felon in possession of firearms. If convicted, both men face up to life in prison. The previous press release, complaint, and press conference can be viewed here . “We are experiencing a gun violence epidemic across our country,” said U.S. Attorney Totten . “Incidents like what happened at Dunham’s Sports are stunning illustrations of crimes that are dumping guns into our neighborhoods and fueling the gun crisis. We are grateful to law enforcement for recovering nearly all the guns, and my office fully intends to satisfy our burden and prove this case in court.” Bishop and Nance were previously charged by complaint. The complaint alleged that late on November 16, 2023, Darnell Bishop and Dontrell Nance approached the Dunham’s store manager outside his home and held him at gunpoint. Bishop and Nance then handcuffed and blindfolded the manager and took him to another location; there, they forced him to provide security access information for the Dunham’s store. Bishop took the manager’s keys, entered the Dunham’s store, and left with more than 120 handguns packed into two large coolers. Police later recovered all but one gun. Investigators searched residences and vehicles associated with Bishop and Nance on November 17, 2023, and found firearms stolen from Dunham’s as well as an additional pistol. Both men were taken into custody that same day. “The holidays just got merrier. Robberies and burglaries of gun dealers represent the biggest threat to our community’s public safety,” said Detroit Field Division Special Agent James Deir . “With the indictment of Dontrelle Nance and Darnell Bishop, and swift investigation from ATF’s law enforcement partners, the holidays can be celebrated without the fear of over 120 firearms finding their way into the wrong hands.” “The FBI is incredibly proud of the Benton Harbor Safe Streets Task Force’s swift action in apprehending the defendants and ensuring the stolen weapons did not make their way into our community,” said Special Agent in Charge Cheyvoryea Gibson of the FBI in Michigan . “All too often, weapons like these are used to perpetrate violence and cause irreparable damage to Michigan families. The FBI, along with our local, state, and federal law enforcement partners, remain committed to working collectively to ensure the safety of our residents.” This case was investigated by the Benton Charter Township Police Department, Benton Harbor Department of Public Safety, Berrien County Sheriff’s Department, Michigan State Police, ATF, and FBI. The charges in an indictment are merely accusations, and both defendants are presumed innocent until and unless proven guilty in a court of law. ###


title: Love Park Carjacker Sentenced to Ten Years

component: USAO - Pennsylvania, Eastern

body_text: PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Michael Boyer, 31, of Philadelphia, Pennsylvania was sentenced to 10 years in prison and three years of supervised release by United States District Court Judge Timothy J. Savage for carjacking. On May 22, 2022, the defendant used a realistic-looking BB gun with a laser sight to carjack two men sitting in a car next to Love Park in Philadelphia. Evidence introduced at trial showed the defendant told the two men to leave the keys in the car and further stated “Do you want to get shot?” when one victim tried to grab a backpack. The victim identified the defendant, in part, because he was shirtless during the carjacking and had a large “Uptown” tattoo on his chest. Only twelve hours later, Philadelphia Police officers located the defendant and his accomplice driving the stolen car in West Philadelphia. When officers tried to stop them, the two men led police on a high-speed chase that ended when the men crashed after striking a teenager on a bicycle. The two men were arrested after a foot chase following the crash. “Today's sentencing sends a message to would be carjackers and reaffirms our ongoing commitment to keeping our citizens safe,” said U.S. Attorney Romero. "This carjacking at Love Park garnered a great deal of attention, and equally worthy of attention is the resulting ten-year sentence that will be served by Michael Boyer in federal prison. We will continue working with our partners and proudly serving as part of the joint carjacking task force led by the Philadelphia Police Department in making sure violent individuals are held accountable when they threaten the safety of the community.” “The crimes committed by the defendant were reckless and dangerous. The defendant not only threatened an individual with bodily harm, but he also led the Police on a vehicle pursuit in which the defendant struck an innocent teenager riding their bicycle” said ATF Special Agent in Charge Eric DeGree. “I want to thank the Philadelphia Police Department and the United States Attorney’s office for their continuing support of the Carjacking Task Force and bringing the defendant to justice.” The case was investigated by the Philadelphia Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and is being prosecuted by Special Assistant United States Attorney Brian Doherty and Assistant United States Attorney Christopher E. Parisi.


title: Readout from United States Attorney Alexander M.M. Uballez’s Listening Session with Escuela de Padres at West Mesa High School

component: USAO - New Mexico

body_text: ALBUQUERQUE – Last week, Alexander M.M. Uballez, United States Attorney for the District of New Mexico, met with staff, students, parents, and families from West Mesa High School’s Escuela de Padres to discuss issues they are seeing in the school and the community and how the U.S. Attorney’s Office can assist the school with addressing students’ safety. U.S. Attorney Uballez was joined by Principal Michele Torres, Albuquerque Public Schools Police Department School Resource Officer Augustine Sena, and Albuquerque Police Department Deputy Commander Mark Torres. U.S. Attorney Uballez met with Escuela de Padres’ staff first to discuss the most pressing challenges facing school administrators, teachers, and counselors, ranging from drug and alcohol usage to truancy. Next, U.S. Attorney Uballez met with the parents, families, and students and answered their questions about school safety. Many from the West Mesa community were concerned about the safety of students in school and whether there would be consequences when a gun is brought to school. U.S. Attorney Uballez discussed Second Judicial District Attorney Sam Bregman’s zero-tolerance policy for guns in school zones, New Mexico State’s Bennie Hargrove Gun Safety Act that holds gun owners accountable if they do not store their firearms safely, and how the federal government steps in to charge the most egregious offenses. He also discussed the responsibility every member of the community bears in taking care of not just their own families but building community networks to surround students with support and to work with school administrators and law enforcement to keep the community safe. Many community members expressed concern about drug use in schools and the rise in overdose deaths, citing research conducted by the Centers for Disease Control and Prevention and recent tests conducted by the New Mexico Environment Department on wastewater at 24 public high schools in Albuquerque and Rio Rancho. U.S. Attorney Uballez educated community members on the dangers of fentanyl—from masquerading as prescription pills, to its highly addictive properties, to how many other drugs, including marijuana, may be laced with fentanyl. Principal Michele Torres and teacher Carolyn Brown emphasized that the parents’ relationship with their children will make all the difference in preventing drug use and overdose deaths. School Resource Officer Augustine Sena closed the meeting by speaking of his own connections to this community, and his commitment to the safety and success of all students at West Mesa. # # # 23-291


title: Jury Convicts Serial Rapist of Two Counts of Kidnapping with Intent to Commit a Sexual Assault

body_text: ALBUQUERQUE – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Raul Bujanda, Special Agent in Charge for the FBI Albuquerque Office, announced today that on December 15, 2023, a federal jury returned two guilty verdicts against Timothy Bachicha, 41 of Albuquerque, after two and a half hours of deliberation. The jury convicted Bachcica of two counts of Kidnapping with Intent to Commit a Sexual Assault. Judge Matthew L. Garcia presided. A federal grand jury issued a first indictment against Bachicha with Count 1 on July 25, 2019, and added Count 2 on January 29, 2020. According to evidence presented at trial and other publicly available court records, on October 30, 2018, Bachicha observed Jane Doe 1 walking down a residential street in Northeast Albuquerque. He stopped his vehicle and asked her if she wanted a ride. When Jane Doe 1 declined, he forcibly abducted her, pulling her into his vehicle by her neck. Once in the vehicle, Bachicha drove from the area of San Mateo and Indian School to a dirt lot near the UNM Cancer Center just east of Interstate 25. There, Bachicha held Jane Doe 1 for twenty hours while he strangled and sexually assaulted her. He released her the early afternoon of October 31, 2018, after receiving alerts that the battery on his court-ordered GPS monitor was dying. Following news coverage of this crime, Jane Doe 2 came forward to disclose that, weeks earlier, she had been held for sixteen hours by Bachicha in a semi-truck in Albuquerque near Interstate 25 and Comanche Road. During the attack, Bachicha strangled Jane Doe 2 and sexually assaulted her. Bachicha’s GPS monitor confirmed his presence at the location and time described by Jane Doe 2. Both women fought Bachicha during their attacks, and both testified against him in trial. The jury also heard from two other women who suffered similar attacks by Bachicha in 2017 and 2018. “Bachicha targeted vulnerable women, hoping that the public would not believe them or care,” said U.S. Attorney Uballez. “But everyone deserves to be treated with dignity. We believe survivors of sexual assault, no matter their station in life, and will fight for the safety of the least of our brothers and sisters. These four women, some of whom were targeted because they were sex workers, courageously testified against their abuser in open court, and in doing so protected others from Bachicha’s serial sexual violence. These women stood up for each other, and for all of us, and for that have earned our respect and gratitude.” “The FBI depends on our partnerships to help us protect communities,” said FBI Special Agent in Charge Raul Bujanda. “We will continue to work with our partners at every level to take those responsible for such heinous crimes off our streets.” Bachicha will remain in custody pending sentencing, which has not been scheduled. At sentencing, Bachicha faces up to two life sentences. The Federal Bureau of Investigation adopted and continued the investigation of this case following extensive investigation by the Albuquerque Police Department, with assistance from the Bernalillo County District Attorney’s Office and the New Mexico State Probation and Parole Office. Assistant United States Attorneys Letitia Carroll Simms and Sarah J. Mease are prosecuting the case. View the Superseding Indictment # # # 23-292


title: Portage Man Charged With International Telemarketing Fraud That Targeted Elderly Victims

body_text: The scheme operated for years and victimized seniors across the United States GRAND RAPIDS, MICHIGAN — U.S. Attorney for the Western District of Michigan Mark Totten today announced an indictment charging Irfan Gill, 62, of Portage, Michigan, with 7 counts of mail fraud and 11 counts of money laundering. The indictment alleges that beginning as early as June 2018, and continuing through at least March 2022, Gill worked with a call center in Pakistan as part of a telemarketing fraud scheme that targeted elderly victims across the United States. “As we have alleged, defendant Irfan Gill ran an international network to exploit America’s seniors,” said U.S. Attorney Mark Totten . “These scams are not going away and so we need to remain vigilant. Be cautious when you receive an unsolicited contact or offer. Resist the pressure to act quickly. Never send personally identifiable information or anything of value to unverified people or businesses. Combatting elder fraud and abuse is a top priority for my Office and we will continue to hold perpetrators accountable, whether at home or abroad.” VIDEO : U.S. Attorney Totten’s remarks concerning the case can be viewed here . Gill faces up to 30 years in prison if convicted of a telemarketing fraud that targeted or victimized 10 or more people over the age of 55. He faces up to 20 years in prison for the money laundering charges in the indictment . According to allegations in the indictment , Gill claimed to operate several businesses: Cable Upgrade; D Network; D Tech; Direct Network; Dish; Dish Upgrade; and Sky Satellite. Telephone solicitors at a call center in Pakistan cold-called victims with offers of equipment upgrades, software upgrades, and subscription discounts for their cable television, satellite television, and internet services. While the businesses did not actually provide any of those services, callers instructed victims to send payments to Gill’s post office boxes in Portage. Gill deposited victims’ payments in his bank accounts. Gill tracked victims’ payments and used money transfer services like Remitly and Western Union to pay a portion of the proceeds to the telephone solicitors in Pakistan. The U.S. Attorney’s Office presently believes that the scheme victimized over 1,400 people nationwide. “Postal Inspectors are dedicated to safeguarding the well-being and security of the American public, with a particular focus on protecting the elderly and vulnerable individuals, from fraudulent schemes,” said Inspector in Charge Rodney M. Hopkins of the Detroit Division of the U.S. Postal Inspection Service . “Today’s indictment serves as a stark reminder of the exploitation tactics employed by criminals who prey on the elderly and other susceptible individuals through deceptive telemarketing schemes, with the sole intention of extracting as much money as possible and, in some cases, causing irreversible financial damage to their victims. The U.S. Postal Inspection Service remains resolute in its mission to vigorously investigate and apprehend those responsible for perpetrating these telemarketing scams, thereby putting an end to their illicit activities.” The U.S. Attorney’s Office and the U.S. Postal Inspection Service are working to identify other individuals, nationwide, who may have been victimized by sending payments to the post office boxes listed below for any of the listed businesses: Post Office Boxes P.O. Box 122, Portage, Michigan 49024 P.O. Box 404, Portage, Michigan 49024 P.O. Box 421, Portage, Michigan 49024 P.O. Box 482, Portage, Michigan 49024 P.O. Box 1164, Portage, Michigan 49024 P.O. Box 1562, Portage, Michigan 49024 Businesses Cable Upgrade D Network D Tech Direct Network Dish Dish Upgrade Sky Satellite If you believe you are a victim in this case, please visit this page or contact Kathy Schuette, Victim Coordinator, at (616) 808-2034. Federal law enforcement provides a number of tips on how to protect yourself from telemarketing scams, including: Be cautious of unsolicited phone calls, e-mails, and mailings. Never give or send any sensitive information (including your date of birth, account numbers, or passwords), credit or debit card numbers, or money to unverified people or businesses. Resist the pressure to act quickly. Scammers create a false sense of urgency to lure people to immediate action. If you recognize a scam attempt, immediately end all communication with the perpetrator. This case is being investigated by the U.S. Postal Inspection Service. Assistant U.S. Attorney Adam Townshend is prosecuting the case on behalf of the United States. The charges in an indictment are merely accusations, and a defendant is presumed innocent until and unless proven guilty in a court of law ###


title: U.S. Attorney Announces Terrorism Charges Against High-Ranking Hizballah Member Who Helped Plan 1994 Bombing In Buenos Aires, Argentina

component: USAO - New York, Southern

body_text: Damian Williams, the United States Attorney for the Southern District of New York, Matthew G. Olsen, the Assistant Attorney General of the Justice Department’s National Security Division, James Smith, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and Edward A. Caban, the Commissioner of the New York City Police Department (“NYPD”), announced the unsealing of terrorism charges against SAMUEL SALMAN EL REDA, a/k/a “Samuel Salman El Reda El Reda,” a/k/a “Salman Raouf Salman,” a/k/a “Sulayman Rammal,” a/k/a “Salman Ramal,” a/k/a “Salman Raouf Salman,” a/k/a “Hajj,” a dual Colombian-Lebanese citizen and member of Hizballah’s Islamic Jihad Organization (“IJO”), in connection with EL REDA’s alleged role leading decades of terrorist activity on behalf of Hizballah and the IJO. EL REDA is charged with, among other offenses, conspiring to provide and providing material support to Hizballah, a designated foreign terrorist organization. The charges are contained in an Indictment unsealed today in Manhattan federal court. EL REDA is based in Lebanon and remains at large. U.S. Attorney Damian Williams said: “As alleged, for decades, Samuel Salman El Reda has led terrorist operations on behalf of the Islamic Jihad Organization of Hizballah, including a 1994 bombing in Buenos Aires that massacred 85 innocent victims. The career prosecutors of this Office have not forgotten the pain and suffering that El Reda has allegedly caused, and we thank the dedication of our law enforcement partners for pursuing this important case. The Southern District of New York continues to be a leader in prosecuting violent terrorists and terrorist organizations, and we will not rest until those who create chaos and destruction are brought to justice.” Assistant Attorney General Matthew G. Olsen said: “Nearly three decades ago, long-time Hizballah terrorist operative Samuel Salman El Reda allegedly helped plan and execute the heinous attack on a Buenos Aires Jewish community center that murdered 85 innocent people and injured countless others. This indictment serves as a message to those who engage in acts of terror: that the Justice Department’s memory is long, and we will not relent in our efforts to bring them to justice.” FBI Assistant Director in Charge James Smith said: “The evil and horror wrought by terrorism reaches all corners of the globe. Samuel Salman El Reda was allegedly involved in carrying out terrorist activity on behalf of Hizballah throughout the world. The New York Joint Terrorism Task Force and our law enforcement partners are unwavering in our determination to bring any individual who supports the evils of terrorism to justice.” NYPD Commissioner Edward A. Caban said: “As alleged, El Reda was an on-the-ground coordinator of the fatal attack against South America’s largest Jewish center nearly 30 years ago. In the decades after that attack, he allegedly continued to direct and support terrorism activities in the Western Hemisphere on behalf of Hizballah and has been involved in plots all across the world. We want this alleged killer brought to justice.” According to the allegations contained in the Indictment charging the defendant and other public court documents: [1] Hizballah is a Lebanon-based Shia Islamic organization with political, social, and terrorist components. Hizballah was founded in the 1980s with support from Iran after the 1982 Israeli invasion of Lebanon, and its mission includes establishing a fundamentalist Islamic state in Lebanon. Since Hizballah’s formation, the organization has been responsible for numerous terrorist attacks that have killed hundreds, including U.S. citizens and military personnel. In 1997, the U.S. Department of State designated Hizballah as a foreign terrorist organization, pursuant to Section 219 of the Immigration and Nationality Act, and it remains so designated today. In 2001, pursuant to Executive Order 13224, the U.S. Department of the Treasury designated Hizballah as a Specially Designated Global Terrorist entity. In 2010, State Department officials described Hizballah as the most technically capable terrorist group in the world and a continued security threat to the United States. The IJO, which is also known as the External Security Organization and “Unit 910,” is a component of Hizballah responsible for the planning and coordination of intelligence, counterintelligence, and terrorist activities on behalf of Hizballah outside of Lebanon. In July 2012, an IJO operative detonated explosives on a bus transporting Israeli tourists in the vicinity of an airport in Burgas, Bulgaria, killing six people and injuring 32 others. Law enforcement authorities have disrupted several other IJO attack-planning operations around the world, including through the arrest of an IJO operative surveilling Israeli targets in Cyprus in 2012, the seizure of bomb-making precursor chemicals in Thailand in 2012, the seizure of similar chemicals in May 2015 in connection with the arrest of another IJO operative, and the seizure of approximately three tons of ammonium nitrate in London in the fall of 2015. Since June 2017, multiple IJO operatives have been arrested, charged, and convicted in the Southern District of New York for terrorism-related offenses. Beginning in at least 1993, EL REDA has led terrorist operations on behalf of Hizballah and the IJO in South America, Asia, and Lebanon. EL REDA was responsible for, among other things, helping to plan and execute the July 18, 1994, bombing of the Asociaión Mutual Israelita Argentina (“AMIA”) building in Buenos Aires, Argentina, which killed 85 people and injured hundreds more. EL REDA’s activities for Hizballah in connection with the AMIA bombing included relaying information to IJO operatives that was used for planning and executing the attack. In the decades following the attack, EL REDA continued to engage in terrorist activity on Hizballah’s behalf by recruiting, training, and managing IJO operatives around the world. EL REDA deployed IJO operatives to Thailand, Panama, and Peru, among other places, to help Hizballah and the IJO conduct pre-operational surveillance in support of attack planning and stockpile explosive precursor chemicals, including ammonium nitrate. For example, in or about May 2009, EL REDA instructed an IJO operative to travel to Thailand to help destroy a cache of ammonium nitrate and other explosive materials that the IJO believed was under law enforcement surveillance. In or about February 2011, EL REDA instructed an IJO operative to travel to Panama to surveil the Panama Canal and Embassies maintained by the United States and Israel, and in or about January 2012, EL REDA instructed an IJO operative to travel again to Panama to conduct additional pre-operational surveillance. * * * EL REDA, 58, of Lebanon, has been charged with: (i) providing material support to a designated foreign terrorist organization, which carries a maximum sentence of 20 years in prison; (ii) conspiring to provide material support to a designated foreign terrorist organization, which carries a maximum sentence of 20 years in prison; (iii) aiding and abetting the receipt of military-type training from a designated foreign terrorist organization, which carries a maximum sentence of 10 years in prison or a fine; and (iv) conspiring to receive military-type training from a designated foreign terrorist organization, which carries a maximum sentence of five years in prison. The maximum potential sentences in this case are prescribed by Congress and provided here for informational purposes only, as any sentence would be imposed by a judge. Mr. Williams praised the outstanding investigative work of the FBI’s New York Joint Terrorism Task Force, which principally consists of agents from the FBI and detectives from the NYPD. Mr. Williams also thanked the Department of Justice’s National Security Division, Counterterrorism Section, and the Department of Justice’s Office of International Affairs, for their assistance. This case is being handled by the Office’s National Security and International Narcotics Unit. Assistant U.S. Attorneys Jacob H. Gutwillig and Jason A. Richman are in charge of the prosecution, with assistance from Deputy Chief Larry Schneider of the Counterterrorism Section. The charges in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty. [1] As the introductory phrase signifies, the Indictment and the description of the Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.


title: Arizona Man Pleads Guilty to Role in Scheme to Steal Money from U.S. Bank Accounts

component: Civil Division

body_text: An Arizona man pleaded guilty today in San Diego federal court to conspiracy to commit access device fraud. According to court documents, Luis Ramirez, 42, of Mesa, helped to obtain “leads” for fraudsters who sought to steal money from the bank accounts of unknowing U.S. victims. The “leads” consisted of financial information for the prospective victims that included bank account numbers. Ramirez and his coconspirators used “leads” that originated from payday loan applications of consumers across the United States. As part of his guilty plea, Ramirez admitted that more than $1.5 million in loss was reasonably foreseeable to him. “Those who knowingly supply fraudsters with personal and financial information about potential victims cause enormous harm to the American public,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We are committed to investigating and prosecuting individuals who sell such information for illicit purposes.” “The Postal Inspection Service is dedicated to protecting American consumers,” said Inspector in Charge Eric Shen of the U.S. Postal Inspection Service’s (USPIS) Criminal Investigations Group. “In this case, small transactions were used to conceal the scheme, but that wasn’t enough to fool postal inspectors or keep us from adding it all together to put a halt to this fraud.” Ramirez pleaded guilty to conspiracy to commit access device fraud. He is scheduled to be sentenced on March 11, 2024, and faces a maximum penalty of five years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Related cases against other scheme participants have previously been filed in Los Angeles and in Las Vegas. In May, a grand jury in Los Angeles returned an indictment charging 14 defendants with RICO conspiracy and other charges in the Central District of California. The indictment alleges that the defendants and associates debited consumers’ bank accounts without authorization and used shell entities and “micro debits” to conceal the activity from banks. “Micro debits” serve to conceal fraud by grouping unauthorized charges with a large number of low-value, straw transactions to lower the fraudster’s chargeback rate. Another scheme participant, Harold Sobel, pleaded guilty to bank fraud conspiracy in federal court in Las Vegas. In December 2022, Sobel was sentenced to 42 months in prison. USPIS is investigating the case. Trial Attorneys Wei Xiang, Meredith Healy and Amy Kaplan of the Civil Division’s Consumer Protection Branch are prosecuting the case, with assistance from the U.S. Attorneys’ Offices for the Central and Southern Districts of California. For more information about the Consumer Protection Branch and its enforcement efforts, visit www.justice.gov/civil/consumer-protection-branch .


title: Berryville Man Sentenced to more than 41 Years in Federal Prison  on Multiple Child Exploitation Offenses

component: USAO - Arkansas, Western

body_text: FAYETTEVILLE – A Berryville man was sentenced on December 18, 2023, to 500 months in prison without the possibility of parole after being found guilty of Traveling with the Intent to Engage in Illicit Sexual Acts with two minor males and for Distributing Child Pornography. The Honorable Judge Timothy L. Brooks presided over the sentencing hearing in the U.S. District Court in Fayetteville. In May 2022, the Arkansas FBI Child Exploitation and Human Trafficking Task Force received a lead from the FBI Kansas City Division that a subject under investigation admitted that he was trading child pornography online with an individual later identified as Ricky Gunter Hilburn , age 42, of Berryville and that Hilburn had even bragged about sexually abusing a minor male. A search warrant was obtained and executed at Hilburn’s residence, resulting in multiple digital devices being confiscated and Hilburn being arrested. A subsequent forensic examination of the electronic devices seized from Hilburn’s residence confirmed that Hilburn was trafficking child pornography images to others online. Further investigation revealed that Hilburn had groomed two minor males in Oklahoma and would travel across state lines to engage in sexual activity with them. At sentencing, the United States Attorney’s Office presented the Court with evidence that Hilburn had groomed a third minor male and engaged in sexual contact with him on multiple occasions. Hilburn was indicted by a Grand Jury in the Western District in March of 2023 and entered a plea of guilty in June 2023. U.S. Attorney David Clay Fowlkes of the Western District of Arkansas made the announcement. The Arkansas FBI Child Exploitation and Human Trafficking Task Force and the Berryville Police Department investigated the case. Assistant U.S. Attorney Tyler Williams and Assistant U.S. Attorney Carly Marshall prosecuted the case for the United States. 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: Buffalo man going to prison on cocaine convictions in two separate cases

component: USAO - New York, Western

body_text: BUFFALO, N.Y.-U.S. Attorney Trini E. Ross announced today that Augustin Ramos, 42, of Buffalo, NY, who was convicted of attempt to possess with intent to distribute cocaine and possession with intent to distribute 500 grams or more of cocaine, in two separate cases, was sentenced to serve 96 months in prison by U.S. District Judge Frank P. Geraci, Jr. Assistant U.S. Attorney Timothy C. Lynch, who handled the case, stated that in June 2018, investigators intercepted a package mailed from Puerto Rico, which contained approximately 2,986 grams of cocaine. The content of the package was replaced with sham and a transmitter to alert law enforcement when the package was opened. On June 18, 2018, investigators conducted a controlled delivery of the package to the residence of a co-conspirator. After an individual at the address accepted the package, Ramos made arrangements to retrieve the package. In May 2021, Ramos pleaded guilty to attempt to possess with intent to distribute cocaine. On April 18, 2022, while he was awaiting sentencing on the attempt to possess charge, the Erie County Sheriff’s Office executed a search warrant at Ramos’s Buffalo residence, and seized approximately two kilograms of cocaine. The sentencing is the result of an investigation by the U.S. Postal Inspection Service, under the direction of Inspector in Charge Ketty Larco-Ward, Boston Division, Homeland Security Investigations, under the direction of Special Agent-in-Charge Matthew Scarpinato, the Erie County Sheriff’s Office, under the direction of Sheriff John Garcia, and the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Matthew Miraglia. # # # #


title: Justice Department Announces Terrorism Charges Against High-Ranking Hezbollah Member Who Helped Plan 1994 Bombing in Buenos Aires, Argentina

body_text: Samuel Salman El Reda Participated in Terrorist Operations for Hezbollah in South America, Asia and Lebanon, and Helped Plan and Execute Hezbollah’s July 18, 1994, Bombing of the Asociación Mutual Israelita Argentina Building in Buenos Aires, Killing 85 People A Manhattan federal court today unsealed terrorism charges against Samuel Salman El Reda, aka Samuel Salman El Reda El Reda, Salman Raouf Salman, Sulayman Rammal, Salman Ramal, Salman Raouf Salman, and Hajj, 58, a dual Colombian-Lebanese citizen and member of Hezbollah’s Islamic Jihad Organization (IJO), in connection with El Reda’s alleged role leading decades of terrorist activity on behalf of Hezbollah and the IJO. El Reda is charged with, among other offenses, conspiring to provide and providing material support to Hezbollah, a designated foreign terrorist organization. El Reda is based in Lebanon and remains at large. “Nearly three decades ago, long-time Hezbollah terrorist operative Samuel Salman El Reda allegedly helped plan and execute the heinous attack on a Buenos Aires Jewish community center that murdered 85 innocent people and injured countless others,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “This indictment serves as a message to those who engage in acts of terror: that the Justice Department’s memory is long, and we will not relent in our efforts to bring them to justice.” “As alleged, for decades, Samuel Salman El Reda has led terrorist operations on behalf of the Islamic Jihad Organization of Hezbollah, including a 1994 bombing in Buenos Aires that massacred 85 innocent victims,” said U.S. Attorney Damian Williams for the Southern District of New York. “The career prosecutors of this office have not forgotten the pain and suffering that El Reda has allegedly caused, and we thank the dedication of our law enforcement partners for pursuing this important case. The Southern District of New York continues to be a leader in prosecuting violent terrorists and terrorist organizations, and we will not rest until those who create chaos and destruction are brought to justice.” “While it’s been nearly 30 years since this horrific terrorist attack, the FBI and our partners throughout the U.S. government are committed to delivering justice for the victims’ families,” said Executive Assistant Director Larissa L. Knapp of the FBI’s National Security Branch. “Our reach and our memory are long, as this investigation shows. The charges unsealed today are a result of the hard work and determination of the men and women of the FBI and Justice Department, and the assistance of our international partners in law enforcement.” According to court documents, Hezbollah is a Lebanon-based Shia Islamic organization with political, social and terrorist components. Hezbollah was founded in the 1980s with support from Iran after the 1982 Israeli invasion of Lebanon, and its mission includes establishing a fundamentalist Islamic state in Lebanon. Since Hezbollah’s formation, the organization has been responsible for numerous terrorist attacks that have killed hundreds, including U.S. citizens and military personnel. In 1997, the Department of State designated Hezbollah as a foreign terrorist organization, pursuant to Section 219 of the Immigration and Nationality Act, and it remains so designated today. In 2001, pursuant to Executive Order 13224, the Department of the Treasury designated Hezbollah as a Specially Designated Global Terrorist entity. In 2010, State Department officials described Hezbollah as the most technically capable terrorist group in the world and a continued security threat to the United States. The IJO, which is also known as the External Security Organization and “Unit 910,” is a component of Hezbollah responsible for the planning and coordination of intelligence, counterintelligence and terrorist activities on behalf of Hezbollah outside of Lebanon. In July 2012, an IJO operative detonated explosives on a bus transporting Israeli tourists in the vicinity of an airport in Burgas, Bulgaria, killing six people and injuring 32 others. Law enforcement authorities have disrupted several other IJO attack-planning operations around the world, including through the arrest of an IJO operative surveilling Israeli targets in Cyprus in 2012, the seizure of bomb-making precursor chemicals in Thailand in 2012, the seizure of similar chemicals in May 2015 in connection with the arrest of another IJO operative, and the seizure of approximately three tons of ammonium nitrate in London in the fall of 2015. Since June 2017, multiple IJO operatives have been arrested, charged and convicted in the Southern District of New York for terrorism-related offenses. Beginning in at least 1993, El Reda has led terrorist operations on behalf of Hezbollah and the IJO in South America, Asia and Lebanon. El Reda was responsible for, among other things, helping to plan and execute the July 18, 1994, bombing of the Asociaión Mutual Israelita Argentina (AMIA) building in Buenos Aires, which killed 85 people and injured hundreds more. El Reda’s activities for Hezbollah in connection with the AMIA bombing included relaying information to IJO operatives that was used for planning and executing the attack. In the decades following the attack, El Reda continued to engage in terrorist activity on Hezbollah’s behalf by recruiting, training and managing IJO operatives around the world. El Reda deployed IJO operatives to Thailand, Panama and Peru, among other places, to help Hezbollah and the IJO conduct pre-operational surveillance in support of attack planning and stockpile explosive precursor chemicals, including ammonium nitrate. For example, in or about May 2009, El Reda instructed an IJO operative to travel to Thailand to help destroy a cache of ammonium nitrate and other explosive materials that the IJO believed was under law enforcement surveillance. In or about February 2011, El Reda instructed an IJO operative to travel to Panama to surveil the Panama Canal and Embassies maintained by the United States and Israel, and in or about January 2012, El Reda instructed an IJO operative to travel again to Panama to conduct additional pre-operational surveillance. El Reda is charged with: (i) providing material support to a designated foreign terrorist organization, which carries a maximum penalty of 20 years in prison; (ii) conspiring to provide material support to a designated foreign terrorist organization, which carries a maximum penalty of 20 years in prison; (iii) aiding and abetting the receipt of military-type training from a designated foreign terrorist organization, which carries a maximum penalty of 10 years in prison or a fine; and (iv) conspiring to receive military-type training from a designated foreign terrorist organization, which carries a maximum penalty of five years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. The FBI’s New York Joint Terrorism Task Force, which principally consists of agents from the FBI and detectives from the New York Police Department, is investigating the case. The Justice Department’s Office of International Affairs provided valuable assistance. Assistant U.S. Attorneys Jacob H. Gutwillig and Jason A. Richman for the Southern District of New York are prosecuting the case, with valuable assistance from Deputy Chief Larry Schneider of the National Security Division’s Counterterrorism Section. An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. El Reda Indictment


title: Vermont Man Pleads Guilty to Conspiracy to Distribute Crack Cocaine

component: USAO - New Hampshire

body_text: CONCORD – A Vermont man pleaded guilty in federal court in Concord to conspiring to distribute a controlled substance in New Hampshire, U.S. Attorney Jane E. Young announces. Lamar Carter, 32, pleaded guilty to one count of conspiracy to distribute a controlled substance, namely, cocaine base, also known as crack cocaine. U.S. District Court Judge Samantha Elliott scheduled sentencing for March 29, 2024. The defendant was indicted on August 29, 2022. Carter was a leader of a drug distribution organization that obtained powder cocaine from New Jersey, “cooked” the cocaine to manufacture crack, and distributed the crack in and around Keene, New Hampshire. The organization had several employees who worked for Carter and conducted hand-to-hand drug transactions with customers. The group operated out of a local resident’s home, as well as several hotel rooms. During the investigation 364 grams of cocaine base and 2 handguns were seized. The charging statute provides a sentence of no greater than 20 years in prison, at least three (3) years of supervised release, and a maximum fine of $1,000,000. 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. Homeland Security Investigations led the investigation. Valuable assistance was provided by the Keene Police Department. ###


title: Nashua Man Indicted for Straw Purchasing Firearms

body_text: CONCORD – A Nashua man appeared in federal court, after being indicted on firearms charges, U.S. Attorney Jane E. Young announces. Mikell Baez, 25, was indicted on November 15, 2023 with six counts of making a false statement during the acquisition of a firearm. Baez made an initial appearance in federal court on December 19, 2023, and was released on conditions. According to the charging document, on six separate occasions between August 3, 2021 and November 5, 2021, Mr. Baez straw purchased eight guns for someone else. He bought the guns from federally licensed firearms dealers in Merrimack, Hudson and Amherst, New Hampshire. Mr. Baez lied on the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) form for the purchases when he said he was the actual buyer/transferee of each firearm. The charges provide for a sentence of up to 10 years in prison, up to three years of supervised release, and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes, which govern the determination of a sentence in a criminal case. The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) led the investigation. Assistant U.S. Attorney Aaron Gingrande is prosecuting the case. The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law. ###


title: Shiprock Man Sentenced to 44 months in Prison for Federal Firearms Offense

body_text: ALBUQUERQUE – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, announced that Kendale Johnson was sentenced to 44 months in prison. Johnson, 34, of Shiprock, New Mexico, and an enrolled member of the Navajo Nation, pled guilty to being a felon in possession of a firearm and ammunition on March 2, 2023. According to court documents, on the morning of Oct. 22, 2020, Johnson and another individual got into a confrontation at a residence in Shiprock which escalated into a shootout. The other individual fled the scene in a car with Johnson in pursuit. Johnson located the individual’s vehicle in front of a residence in Ojo Amarillo, New Mexico and fired on the residence with a rifle before fleeing the scene with the other individual now in pursuit of him. When the other individual’s vehicle malfunctioned and came to stop, Johnson pulled his vehicle alongside it, exited, and fired into the other vehicle. The occupant escaped the vehicle and fled on foot and was shortly arrested by officers from the Farmington Police Department. Officers from the Navajo Police Department then began pursuing Johnson, who drove into oncoming traffic and at speeds upwards of 110 MPH while throwing items out of the vehicle. Officers from the Navajo Police Department were eventually able to immobilize Johnson’s vehicle using the PIT maneuver. Officers located 2 rifles and a night vision scope near the vehicle. In his plea agreement, Johnson admitted to possessing a stock rifle, night vision scope, and 9mm ammunition magazine. At the time of the offense, Johnson had a prior conviction for assault with a dangerous weapon. As a convicted felon, Johnson could not legally possess a firearm or ammunition. Upon his release from prison, Johnson will be subject to 3 years of supervised release. The Farmington Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from the Navajo Police Department and Department of Criminal Investigations. Assistant U.S. Attorney Matthew J. McGinley is prosecuting the case. View the Indictment View the Plea Agreement # # # 23-293


title: Federal Produce Inspector Indicted for False Reporting in Exchange for Bribe Payments

body_text: A federal grand jury last week indicted a Mansfield, TX man for submitting false inspection reports in exchange for bribe payments, announced U.S. Attorney for the Northern District of Texas Leigha Simonton. Timothy Peppel, 68 years old, was a federal produce inspector with the United States Department of Agriculture (USDA) Agricultural Marketing Service (AMS). Peppel was responsible for conducting produce inspections and providing inspection reports to companies buying and selling produce. According to prosecutors, a wholesale produce company, American Fresh Produce (AFP), began requesting produce inspections from USDA AMS in 2014 in order to rate their produce. AFP used the inspection reports to negotiate a price for the produce they purchased from produce brokers. Peppel was one of the inspectors who inspected and graded AFP’s produce and created inspection reports. Shortly after Peppel started performing inspections of AFP produce, Peppel solicited and received weekly bribery payments of $1,000 to $1,500 from the owner of AFP. In exchange for the bribery payments, Peppel agreed to create produce inspection reports that falsely downgraded AFP’s produce, which AFP was able to use to negotiate lower prices for the produce they had purchased. Peppel has been charged with one count of conspiracy to commit honest services wire fraud and receiving bribe by a public officer; five counts of honest services wire fraud; and one count of receiving bribe by a public official. If convicted, he faces up to five years in prison on the count of conspiracy; 20 years in prison on each count of honest services wire fraud; and 15 years in prison on the count of receiving bribe by a public; official plus restitution. The FBI Dallas Office and U.S. Department of Agriculture - Office of Inspector General conducted the investigation, and Assistant U.S. Attorneys Marty Basu and Joshua Detzky are prosecuting the case. Assistant U.S. Attorney Marcus Busch assisted in the investigation of the case. An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.


title: Justice Department and Consumer Financial Protection Bureau sue Texas-based developer and lender Colony Ridge for bait-and-switch land sales and predatory financing

component: USAO - Texas, Southern

body_text: HOUSTON – The Justice Department and Consumer Financial Protection Bureau (CFPB) have sued Colony Ridge for operating an illegal land sales scheme and targeting tens of thousands of Hispanic borrowers with false statements and predatory loans. “Today’s complaint alleges that Colony Ridge targeted Hispanic consumers with predatory loans, misled borrowers about the water, sewer and electrical infrastructure on its lots, and exploited language barriers by conducting most of its marketing in Spanish while offering important transaction documents only in English,” said Attorney General Merrick B. Garland. “Discrimination in lending harms families and neighborhoods for generations; it is wrong and has no place in our country. That is why I launched the Department’s Combating Redlining Initiative more than two years ago and why we remain steadfast in our commitment to continue this work.” “Using 21st century social-media applications to target and mislead consumers, Colony Ridge set out to exploit something as old as America — an immigrant’s dream of owning a home,” said U.S. Attorney Alamdar S. Hamdani for the Southern District of Texas (SDTX). “As alleged in the complaint, Colony Ridge’s exploitative practice began with misleading advertising on platforms like TikTok and often ended with families facing economic ruin, no home, and shattered dreams. The SDTX, joined by our partners at the Justice Department’s Civil Rights Division and the CFPB, filed the complaint as a promise to work tirelessly to bring justice for the Hispanic families who fell prey to Colony Ridge’s alleged predatory lending practices and to send out a warning to the vulnerable: beware of lenders who use promises of easy financing to steal both nest-eggs and dreams.” The lawsuit filed in federal district court alleges Colony Ridge sells unsuspecting families flood-prone land without water, sewer or electrical infrastructure, and that the company sets borrowers up to fail with loans they cannot afford. Roughly one-in-four Colony Ridge loans ends in foreclosure, after which the company repurchases the properties and sells them to new borrowers. The Justice Department and CFPB are seeking redress for borrowers Colony Ridge harmed and an immediate end to its illegal practices. “Colony Ridge promised the American dream, but we allege that in reality, it has delivered a nightmare for thousands of hardworking Hispanic families who hoped to build their homes in the Terrenos Houston community,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This lawsuit demonstrates our commitment to holding accountable those in the housing and financial industry who intentionally target and exploit homebuyers because they are Hispanic or don’t speak English well. Through our Combating Redlining Initiative, the Justice Department will aggressively continue to dismantle predatory, deceptive, and unfair lending practices to safeguard the rights of all who seek to buy a home.” “The lawsuit filed in federal court by the CFPB and the Justice Department charges Colony Ridge with a slew of illegal misconduct and seeks to stop this set-up-to-fail scheme that has led thousands of families to lose their dreams of homeownership,” said CFPB Director Rohit Chopra. “Our investigation uncovered that Colony Ridge is baiting borrowers with lies, saddling families with predatory loans for homesites that the company knows have repeatedly flooded with raw sewage and lacked basic utility infrastructure.” The lawsuit names as defendants three Texas-based Colony Ridge affiliate companies as well as Loan Originator Services, a nonbank mortgage company licensed to originate loans in Texas. Colony Ridge has developed more than 40,000 lots spread across an unincorporated area of Liberty County, approximately 30 miles northeast of Houston. Colony Ridge markets these subdivisions using the names “Terrenos Houston” and “Terrenos Santa Fe.” According to the complaint, Colony Ridge targets Spanish-speaking borrowers. It advertises almost exclusively in Spanish, often in TikTok or other social media posts featuring, for example, national flags and regional music from Latin America. In these advertisements, Colony Ridge promises consumers the dream of homeownership with its own seller financing: an easy-to-obtain loan product that requires no credit check and only a small deposit. The complaint further alleges Colony Ridge has lured tens of thousands of vulnerable Hispanic consumers into their predatory loan products. Foreclosure and property deed records from September 2019 through September 2022 show that Colony Ridge initiated foreclosures on at least 30% of seller-financed lots within just three years of the purchase date, with most loan failures occurring even sooner. Records also confirm that Colony Ridge accounted for more than 92% of all foreclosures recorded in Liberty County between 2017 and 2022. Specifically, the complaint filed today alleges that Colony Ridge: Misleads borrowers about infrastructure on the lots it sells: Colony Ridge has falsely represented that lots in the Terrenos Houston subdivisions were sold with water, sewer and electrical infrastructure already in place. The complaint cites numerous advertisements including TikTok videos where the company makes claims like “Terrenos Houston tiene todos los servicios de ciudad por cada terreno” (“Terrenos Houston has all city services for each lot”). It is only after applicants pay a non-refundable deposit that Colony Ridge discloses the properties may not provide those services and makes that disclosure only in English. Sells lots that flood with rain and raw sewage: The complaint alleges that Colony Ridge employees fail to inform borrowers of flood risk when lots have repeatedly flooded in the past or falsely tells them the lots have not flooded. In fact, in parts of the Terrenos Houston subdivision, rain causes significant flooding causing raw sewage to run through or around borrowers’ property and damaging their personal belongings. Targets Hispanic consumers with predatory loans : Through direct-to-consumer marketing on websites, social media engagement, and telemarketing, Colony Ridge targets Hispanic consumers. Colony Ridge then exploits language barriers during its sales process and uses high-pressure sales tactics to push borrowers to obtain their loan product quickly. The loans have exorbitant interest rates. Between 2017 and 2021, interest rates on Colony Ridge’s loans ranged from between 10.9% to 12.9%, while a standard 20-year fixed rate loan averaged 2.35% to 4.05% during the same timeframe. And in extending the loan, Colony Ridge and Loan Originator Services did not collect information needed to determine if applicants can afford the loan. Churns through borrowers in a cycle of foreclosure: When families fall behind on payments and enter foreclosure, it allows Colony Ridge to “flip” the properties by repurchasing and reselling them, often at higher prices. Foreclosure and property deed records show that Colony Ridge flipped at least 40% of all the properties it sold between September 2019 and September 2022, selling approximately 8,237 properties twice, 3,267 properties three times and 2,067 properties four or more times in three years. Exploits language barriers at borrowers’ expense: While Colony Ridge conducts most of its marketing activities in Spanish, when it comes to the actual transaction it offers important documents only in English. Failing to offer borrowers accurate translations of contracts, deeds and other documents in the language in which it conducts the sales and exploiting borrowers’ limited English proficiency violates federal law. Enforcement Action The complaint alleges that defendants unlawfully discriminated against applicants on the basis of their race or national origin in violation of the Fair Housing Act (FHA). Under the FHA, the Justice Department has the authority to take enforcement action against real estate companies, lending institutions and other entities whose practices discriminate in residential real estate-related transactions, the availability of housing and housing-related services. The complaint also alleges that defendants unlawfully discriminated against applicants on the basis of their race or national origin in violation of the Equal Credit Opportunity Act (ECOA) and its implementing regulation, Regulation B. Both the Justice Department and CFPB have the authority to enforce ECOA. Additionally, the complaint alleges defendants’ deceptive acts and practices violate the Consumer Financial Protection Act of 2010 (CFPA) and the Interstate Land Sales Full Disclosure Act (ILSA) and its implementing regulations, Regulation K and Regulation J, all of which CFPB enforced. The complaint seeks to stop Colony Ridge’s alleged unlawful conduct, provide relief for affected consumers and impose a civil penalty payable to the CFPB victims relief fund . If the defendants are found liable, the amount of any restitution will be determined in the litigation in federal court. Anyone who believes they have been harmed by the practices of Colony Ridge Development LLC, Colony Ridge BV LLC, Colony Ridge Land LLC and Loan Originator Services LLC should call the Justice Department’s Housing Discrimination Hotline at 1-833-591-0291, press 1 for English, then 3 for fair lending and then 1 for Colony Ridge Lawsuit to leave a message. For the Spanish Hotline, callers should press 2 for Spanish, then 3 for fair lending and then 1 for Colony Ridge Lawsuit to leave a message. Individuals can also send an email to ColonyRidge.Lawsuit@usdoj.gov . This lawsuit is a part of the Justice Department’s Combating Redlining Initiative . Redlining is the illegal practice where lenders deprive communities of color from equal access to loans and lending opportunities. Reverse redlining occurs when lenders target communities of color with inflated interest rates and/or other unjust lending terms. Both practices prevent communities of color from achieving sustainable homeownership and both deny these communities the opportunity to build wealth. The Combating Redlining Initiative is the Justice Department’s most aggressive and coordinated enforcement effort to address all forms of redlining. Since 2021, the Justice Department’s Combating Redlining Initiative has secured over $100 million and 10 settlement agreements with banks and mortgage lending institutions to provide credit opportunities to communities of color in Houston; Memphis, Tennessee; Philadelphia; Camden, New Jersey; Wilmington, Delaware; Newark, New Jersey; Los Angeles; Columbus, Ohio; Tulsa, Oklahoma; Rhode Island; and Jacksonville, Florida. The Department has partnered with U.S. Attorneys’ Offices, federal financial regulatory agencies, including the CFPB and state Attorneys General offices to enforce federal fair lending laws that prohibit redlining. This lawsuit is the first reverse redlining action under the initiative. Read today’s complaint. The Justice Department’s website has resources about fair lending . The Department accepts complaints of discrimination at www.civilrights.justice.gov/ . Fair housing and lending discrimination complaints may also be sent to fairhousing@usdoj.gov . CFPB’s website has resources about credit discrimination and mortgages . Consumers can submit complaints about financial products or services by visiting the CFPB’s website or by calling (855) 411-CFPB (2372). Employees of companies who they believe their company has violated federal consumer financial laws are encouraged to send information about what they know to whistleblower@cfpb.gov .


title: Chinese national admits to possessing multiple child pornography videos

body_text: McALLEN, Texas – A 45-year-old Chinese national has been convicted for transporting child pornography, announced U.S. Attorney Alamdar S. Hamdani. On or about May 8, Tong Sun attempted to illegally enter the country in an area near Roma. Law enforcement took him into custody, at which time they discovered several videos that constituted child sexual abuse material or child pornography on his phone. One of the videos depicted a child who appeared to be younger than five years of age. Sun admitted to ownership of the phone and to possessing the child sexual abuse material. U.S. Magistrate Judge Juan F. Alanis accepted the plea and set sentencing for March 25, 2024. At that time, Sun faces up to 20 years in federal prison and a possible $250,000 maximum fine. He has been and will remain in custody pending sentencing. Homeland Security Investigations and Border Patrol conducted the investigation. Assistant U.S. Attorney Cahal P. McColgan is prosecuting the case, which was brought as part of Project Safe Childhood (PSC), a nationwide initiative the Department of Justice (DOJ) launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page . For more information about internet safety education, please visit the resources link on that page.