title: Businessman Sentenced in Tax Scheme, Ordered to Pay $38.9 Million in Restitution

component: USAO - Texas, Northern

body_text: A former Frisco man was sentenced yesterday to 52 months in prison and ordered to pay more than $38.9 million in restitution to the IRS, announced U.S. Attorney for the Northern District of Texas Leigha Simonton. Ronald James Paolucci, the 55-year-old co-founder and employee of American Management Staffing (AMS), was charged by felony information in January 2023 and pleaded guilty in February 2023 to conspiracy to defraud the United States and making and subscribing a false tax return. He was sentenced Monday by U.S. District Judge Sam A, Lindsay. “We were proud to partner with IRS-CI on this important case,” said U.S. Attorney Leigha Simonton. “We stand ready to prosecute any employer who pockets employees’ payroll taxes and those who otherwise refuse to meet their tax obligations.” “Nearly 70% of total U.S. revenues collected by the IRS are collected through employment taxes. When the employer withholds the payroll taxes but fails to pay the taxes over to the IRS, they may be criminally investigated and prosecuted for failing to withhold, collect, and pay over the tax. This was the case with Mr. Paolucci, his failure to remit withheld taxes is not only a breach of trust but a serious crime with severe consequences,” said Christopher J. Altemus Jr., Special Agent in Charge IRS Criminal Investigation, Dallas Field Office. “In addition to failing to meet payroll tax obligations, Mr. Paolucci failed to report his personal compensation and was ordered to pay approximately $10 million in restitution for his personal tax obligations. Let this sentence serve as a stark reminder: tax compliance is not optional; it is the law.” According to court documents, AMS provided temporary staffing services to business clients. Mr. Paolucci was employed by AMS from approximately 2011 through 2020 and had control over AMS’ business affairs, including, approving payments and controlling AMS’s bank accounts. AMS was obligated to pay the temporary employees and withhold and pay all applicable taxes for the employees. Mr. Paolucci withheld payroll taxes from the employees’ paychecks, including federal income taxes, Medicare and social security taxes. AMS was required to make deposits of the payroll taxes to the Internal Revenue Service (IRS) on a periodic basis and to file Employer’s Quarterly Federal Income Tax Return forms setting forth the total amount of wages, total amount of income tax withheld, total amount of social security and Medicare taxes due and the total tax deposits. Mr. Paolucci agreed to continue to withhold payroll taxes from the temporary employees but understood that taxes would not be paid over to the IRS. Mr. Paolucci continued to issue IRS Forms W-2 to the temporary employees representing to the employees and the IRS that AMS was withholding and paying to the IRS payroll taxes. From 2014 through 2020, AMS paid temporary employees and withheld approximately $13 million in payroll taxes from its employees. During the same time, AMS issued IRS W-2 forms to the employees showing that AMS withheld approximately $13 million in payroll taxes from those employees, however, AMS did not make any payments to the IRS. IRS – Criminal Investigation conducted the investigation. Assistant U.S. Attorney Marty Basu prosecuted the case.


title: Connecticut Investment Advisor Imprisoned for Defrauding Clients of $2.7 Million Through Cherry-Picking Scheme

component: USAO - Connecticut

body_text: Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that JONATHAN VINCENT GLENN, 55, of Greenwich, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to 21 months of imprisonment, followed by three years of supervised release, for defrauding investment clients through a “cherry-picking” securities scheme. Glenn also must serve the first six months of his supervised release in home confinement. “Cherry-picking” is a fraudulent securities trading practice in which the responsible individual executes trades without assigning those trades to a particular trading account until the individual determines whether or not the trade has become profitable or suffered losses. The responsible individual then allocates the profitable trades to favored accounts – often the individual’s own accounts – and assigns unprofitable trades to disfavored client accounts. According to court documents and statements made in court, Glenn owned Glenn Capital LLC, also known as GlennCap LLC, an investment advisory firm headquartered in Greenwich. Through Glenn Capital, Glenn provided clients with portfolio management services including asset selection and asset allocation. Glenn managed all of Glenn Capital’s advisory clients’ accounts and was authorized to make trading decisions on each client’s behalf without seeking approval for each trade. Glenn placed trades on behalf of advisory clients, himself, or family members by trading directly in the relevant individual account, or by placing block trades in Glenn Capital’s omnibus account and allocating the block trades among the relevant individual accounts. Glenn Capital’s Code of Ethics required Glenn to determine and document the specific allocation of each block trade prior to the execution, and to allocate block trades to individual accounts at an average price. Glenn defrauded clients by retroactively allocating profitable omnibus-account trades to favored clients, family, and personal accounts, and unprofitable omnibus-account trades to non-favored-client accounts. Notwithstanding the requirements set forth in the Code of Ethics, Glenn did not determine the allocation of block trades until after they were executed, when he knew if the trades were profitable in the hours following the execution. When a block purchase of an equity security increased in value in the hours after the purchase, Glenn generally realized the profits by selling the security. He then allocated those profits to favored-client, family, firm, and personal accounts. When a block purchase of an equity security decreased in value, Glenn generally allocated those block purchases to the non-favored-client accounts. Glenn did not inform his clients that he was “cherry picking.” Instead, he gave the false impression that he allocated trades fairly and according to a pre-determined allocation methodology. Through this scheme, Glenn defrauded more than 45 clients of a total of more than $2.7 million. He is required to make full restitution. On October 5, 2023, Glenn pleaded guilty to securities fraud. Glenn, who is released on bond, is required to report to prison on December 2. This matter was investigated by the Federal Bureau of Investigation with the assistance of the U.S. Securities and Exchange Commission, which has settled fraud charges with Glenn and GlennCap LLC. This case was prosecuted by Assistant U.S. Attorney Heather L. Cherry.


title: U.S. ATTORNEY’S OFFICE TO PARTNER WITH GRAND FORKS LAW ENFORCEMENT TO REDUCE DOMESTIC VIOLENCE UNDER VIOLENCE AGAINST WOMEN ACT DESIGNATION

component: USAO - North Dakota

body_text: U.S. Department of Justice Designates Grand Forks in the District of North Dakota Under Section 1103 of the Violence Against Women Act, Prioritizing Firearms Prosecutions of Domestic Violence Offenders Fargo – Attorney General Merrick B. Garland has approved an initial set of 78 communities, including Grand Forks, North Dakota, for designation as a jurisdiction of focus to address intimate partner gun violence under Section 1103 of the Violence Against Women Act Reauthorization Act of 2022. The Justice Department - through its United States Attorney’s offices (USAOs) and Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Field Divisions - will partner with Grand Forks and each designated jurisdiction to develop a plan to reduce intimate partner firearm violence and to prioritize prosecutions of domestic violence offenders prohibited under 18 U.S. Code Section 922(g) from owning firearms. The plans can include appointment of Special Assistant United States Attorneys (SAUSAs) to prosecute those offenders in federal court. “Our law enforcement partners in Grand Forks have made reducing domestic violence a priority for decades,” said Mac Schneider, United States Attorney for the District of North Dakota. “This designation by the Department of Justice is a recognition of that strong record and seeks to build on it. By targeting domestic violence offenders who illegally possess firearms for prosecution in federal court, we can save lives and protect families. I am grateful for the partnership of the Grand Forks State’s Attorney’s Office, the Grand Forks County Sheriff’s Office, and the Grand Forks Police Department and look forward to continuing our work with them on this important effort.” “We look forward to working together with federal authorities to combat intimate partner violence in our county,” said Grand Forks County States Attorney Haley L. Wamstad. “This additional tool in our tool chest will help us to hold accountable the most lethal offenders of intimate partner violence and ensure justice for the victims of these crimes.” “We are proud to stand alongside our colleagues at the U.S. Attorney’s Office on this focused initiative,” said Special Agent in Charge Travis S. Riddle, of the St. Paul Field Division. “A firearm in the hands of domestic abuser is a very real threat to those trapped in these unfortunate situations. We highly encourage those who may find themselves, or may know of a person, affected by domestic violence where a firearm is involved to reach out to authorities. No one should have to live their life in constant fear, and we’re here to work alongside our law enforcement partners to investigate these cases.” Communities have been designated by the Department of Justice after coordination with community stakeholders. Nationally, they include rural areas, suburban areas, urban areas, and Tribal communities. The Justice Department used data to identify communities that could benefit from increased focus on intimate partner violence resources and where the local jurisdiction is committed to partnering with the Department to increase the use of federal tools to prosecute offenders under 18 U.S.C. 922(g). The designation represents the partnership and coordination between the department and the local jurisdiction to ensure federal resources are being leveraged effectively to address intimate partner firearm violence. The Justice Department anticipates additional jurisdictions across the country to be designated as USAOs continue coordination with their local stakeholders. All USAOs, with or without specific community designations under Section 1103, will continue to combat intimate partner firearm violence and prioritize prosecutions of domestic violence offenders as part of their Project Safe Neighborhoods strategy and in support of the Department’s Comprehensive Strategy for Reducing Violent Crime. ######


title: Felon Caught with 215 Guns Sentenced to 72 Months in Prison

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

body_text: CAPE GIRARDEAU – U.S. District Judge Audrey G. Fleissig on Tuesday sentenced a convicted felon caught buying and selling guns to 72 months in prison. Shawn Dennis Stockard’s sentence consists of 54 months on one count of unlawful interstate transportation of firearms and a consecutive 18 months on a charge of possession with intent to sell controlled substances. Judge Fleissig also fined Stockard $85,000. Stockard, 53, pleaded guilty to both charges, in separate cases, in June. As part of his plea, he agreed to forfeit 215 firearms, firearms accessories and a large amount of ammunition worth at least $230,000 that was seized during the investigation. Stockard used the Federal Firearms License (FFL) belonging to William Henry Otto, owner of Bull Run Weaponry in Marble Hill, Missouri, to buy firearms at an auction house in Illinois. Stockard brought the guns to Missouri and transferred them to his wife via Otto. Bureau of Alcohol, Tobacco, Firearms and Explosives agents learned of gun sales by Stockard and of his connection to Otto in early 2022. During a court-approved search of Stockard’s home in Cape Girardeau County, they found the firearms and accessories and thousands of rounds of ammunition. “This sentence acknowledges the defendant’s continued criminal conduct and sends a straightforward message that there are real and severe consequences for federal firearm and drug offenses,” said Bernard G. Hansen, Special Agent in Charge of ATF’s Kansas City Field Division. Otto, 46, and Stockard’s wife have pleaded guilty and await sentencing. A fourth person, Terry Lee Allen, also awaits sentencing. Allen, 38, repeatedly bought multiple firearms from licensed dealers. He was the last known purchaser of seven guns linked to crime scenes in several states, six of which originally came from Bull Run. Otto’s records show that he sold at least 199 guns to Allen, the vast majority of which Allen illegally sold to others. Allen pleaded guilty in U.S. District Court in Cape Girardeau to one count of unlicensed firearms dealing. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. Assistant U.S. Attorney Timothy Willis is prosecuting the case.


title: Charter School Founder Pleads Guilty to Embezzling Over $73,000 from Former School in Concord

component: USAO - New Hampshire

body_text: CONCORD – A Boscawen woman pleaded guilty in federal court to stealing over $73,000 in U.S. Department of Education funds from the former Capital City Public Charter School in Concord, First Assistant U.S. Attorney Jay McCormack announces. Stephanie Alicea, 49, pleaded guilty to one count of theft from a program receiving federal funds. U.S. District Court Chief Judge Landya B. McCafferty scheduled sentencing for January 6, 2025. Alicea was the founder of the Capital City Public Charter School (“Capital City”) in Concord, New Hampshire. Capital City offered classes to several dozen students during the 2018-19 and 2019-20 school years. Alicea oversaw the school’s finances and day-to-day operations. Capital City received federal charter school grant funds, which were to be used solely for education-related expenses. In spring 2020, an external auditor detected irregularities with Capital City’s finances. Specifically, the auditor found that Alicea had spent some of the grant funds on expenses that were personal in nature, including gambling, dining, and travel. In total, Alicea stole $73,253.36 in federal grant funds from Capital City. Capital City closed after the 2019-20 school year, surrendered its charter in February 2021, and declared bankruptcy in March 2021. The charge of Theft from a Program Receiving Federal Funds provides for a sentence of up to 10 years in prison, up to 3 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 U.S. Department of Education’s Office of Inspector General and Federal Bureau of Investigation led the investigation. Assistant U.S. Attorney Alexander S. Chen is prosecuting the case. ###


title: U.S. ATTORNEY’S OFFICE TO WORK WITH LOCAL PARTNERS TO REDUCE DOMESTIC VIOLENCE

component: USAO - Texas, Eastern

body_text: TYLER, Texas – Attorney General Merrick B. Garland has approved an initial set of 78 communities across 47 states, territories, and the District of Columbia for designation under Section 1103 of the Violence Against Women Act Reauthorization Act of 2022. The Justice Department - through its United States Attorney’s offices (USAOs) and Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Field Divisions - will partner with each designated jurisdiction to develop a plan to reduce intimate partner firearm violence and to prioritize prosecutions of domestic violence offenders prohibited under 18 U.S. Code Section 922(g) from owning firearms. In the Eastern District of Texas, Gregg County has received designation. “Domestic violence is a significant problem in our nation and presents a special challenge to prosecutors,” said Eastern District of Texas U.S. Attorney Damien M. Diggs. “The causes of domestic violence are numerous and varied and require a concerted national and local effort if there is going to be success at tackling this problem. Addressing domestic and sexual violence must be a linchpin in the attack on violent crime. As such, we are proud to announce that in Gregg County we will prioritize firearms prosecutions of domestic violence offenders to aid our state and local partners, who do the heavy lifting in this important fight.” “One of ATF-Dallas Field Division’s top priorities has been, and will continue to be, to reduce domestic violence, especially those incidents in which firearms are used,” said ATF Dallas Special Agent in Charge Jeffrey C Boshek II. “All people, no matter their gender, race, creed, or color, deserve to have relationships free from domestic violence– a heinous crime that terrorizes families, shatters homes, and destroys lives. Let it serve as a notice- through our partnerships with the Eastern District of Texas U.S. Attorney’s Office, and state and local law enforcement agencies, ATF will remain steadfast in its pursuit of domestic abusers in possession of firearms illegally.” Communities have been designated in close coordination with community stakeholders. They include rural areas, suburban areas, urban areas, and Tribal communities. The Justice Department used data to identify communities that could benefit from increased focus on intimate partner violence resources and where the local jurisdiction is committed to partnering with the Department to increase the use of federal tools to prosecute offenders under 18 U.S.C. 922(g). The designation represents the partnership and coordination between the department and the local jurisdiction to ensure federal resources are being leveraged effectively to address intimate partner firearm violence. The Justice Department anticipates additional jurisdictions to be designated as USAOs continue coordination with their local stakeholders. All USAOs, with or without specific community designations under Section 1103, will continue to combat intimate partner firearm violence and prioritize prosecutions of domestic violence offenders as part of their Project Safe Neighborhoods strategy and in support of the Department’s Comprehensive Strategy for Reducing Violent Crime. ###


title: Jefferson County man sentenced to federal prison for defrauding precious metals buyers

component: Federal Bureau of Investigation (FBI)

body_text: BEAUMONT, Texas – A Beaumont man has been sentenced to federal prison and ordered to pay over $1 million in restitution for federal violations in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs. Michael James White, 35, pleaded guilty to wire fraud and was sentenced to 78 months in federal prison by U.S. District Judge Marcia A. Crone on September 17, 2024. White was also ordered to pay $1,179,216.92 in restitution. According to information presented in court, White was the owner and operator of Gold Pro, LLC, a business in Vidor, Texas that bought and sold precious metals like gold and silver. The company marketed their products as “financial security for future financial uncertainty.” Gold Pro operated by promising potential buyers from across the United States a certain number of precious metals, then obtaining payment from customers through the wire transfer of funds from the buyer’s bank account to Gold Pro’s bank account. White communicated by email, telephone, or computer chat with potential buyers about the amount of precious metals the buyer would buy and agreed on a price for the precious metals and their delivery. Beginning in 2021, in multiple instances after receiving payment, White did not deliver the precious metals to the buyer, delivered a product of lesser value, or delivered fake precious metals. For approximately three years, beginning in 2020, White defrauded numerous victims throughout the United States, resulting in a loss of more than $1 million. This case was investigated by the FBI and the Beaumont Police Department and prosecuted by Assistant U.S. Attorney Reynaldo P. Morin. ###


title: Turks and Caicos Man Arrested, Accused of Sextortion of Missouri Teen

body_text: ST. LOUIS – A man from the Turks and Caicos has been arrested after being indicted and accused of the sextortion of a Missouri teen. Alexander Gardiner, 23, of Providenciales, was indicted by a grand jury in U.S. District Court in St. Louis on May 22 on one count of coercion and enticement of a minor. Gardiner was arrested in the Miami International Airport on August 8. He appeared in court in St. Louis Tuesday and pleaded not guilty to the charges. “Although many perpetrators who seek to exploit and blackmail minors do so from overseas, we will not let borders keep us from stopping sextortion and seeking justice,” said U.S. Attorney Sayler A. Fleming “A large number of sextortion investigations have identified the perpetrators as living outside of the United States,” said Special Agent in Charge Ashley T. Johnson of the FBI St. Louis Division. “Investigating sextortion is one of the top priorities in the FBI’s Violent Crimes Against Children program. In addition, the FBI provides support and resources to help victims and their families during their time of need.” The indictment accuses Gardiner of attempting to coerce a minor into engaging in sexually explicit conduct between Sept. 24, 2018, and June 30, 2023. An August 14 detention order says Gardiner is accused of making contact with a minor in Missouri via social media and enticing the minor to send him sexually explicit images. Gardiner then demanded money from the minor by threatening to send those images to others, and did post an explicit video on social media, the order says. A motion seeking Gardiner’s detention alleges that images of other teenage victims were discovered in Gardiner’s iCloud account. Gardiner used the screen name noahmonn on Snapchat, algardiner33 and algardiner22 on Google and @jewelsbaits on X, court records show. Charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty. The enticement charge is punishable by at least 10 years in prison, with a maximum term of life. Others who believe they may have been targets of a sextortion attempt should contact local law enforcement or the FBI by calling Call 1-800-CALL-FBI, contacting your local FBI office, or reporting it online at tips.fbi.gov or cybertipline.org. The National Center for Missing and Exploited Children (NCMEC) has detailed information on resources for sextortion victims, including videos and discussion guides to help explain the problem to children and adults. They also have a step-by-step guide on how to report pictures or videos of children to social media companies and flag pictures so that the companies will seek out and remove the images. The FBI investigated the case with the assistance of the Royal Turks and Caicos Islands Police Force. Assistant U.S. Attorney Jillian Anderson 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 Department of Justice Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc .


title: Virginia Man Admits Conspiring to Launder Money Obtained from Internet-Enabled Romance Scams

component: USAO - New Jersey

body_text: NEWARK, N.J. – A Virginia man today admitted to conspiring to launder money taken from victims across the United States as a part of a series of romance scams, U.S. Attorney Philip R. Sellinger announced. Nana Yaw Marfo, 39, of Alexandria, Virginia, pleaded guilty before U.S. District Court Judge Esther Salas in Newark federal court today to an information charging him with one count of money laundering conspiracy. According to documents filed in this case and statements made in court: Marfo laundered money obtained through internet-enabled romance scams through numerous bank accounts opened in different business names. After receiving the romance scam victims’ money, Marfo wired thousands of dollars to overseas bank accounts. As part of this scheme, Marfo received and transferred approximately $4.7 million, knowing that the transactions were for the purpose of disguising or hiding the proceeds of criminal activity. The money laundering conspiracy charge has a maximum prison term of 20 years, and a maximum fine of $500,000 or twice the value of the funds involved in the transfer, whichever is greater. Sentencing is scheduled for Feb. 4, 2025. U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Acting Special Agent in Charge Nelson I. Delgado in Newark and Special Agent in Charge Gregory D. Nelsen in Cleveland, Ohio, with the investigation leading to the guilty plea. The government is represented by Assistant U.S. Attorneys David E. Malagold and Ingrid Eicher of the Criminal Division in Newark. marfo.information.pdf


title: New Britain Man Sentenced to Prison for Firearm Offense Stemming from Ghost Gun Investigation

body_text: Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that BRIAN McMANUS, 55, of New Britain, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to 24 months of imprisonment, followed by two years of supervised release, for a firearm offense. According to court documents and statements made in court, as part of an investigation into the proliferation of privately made firearms (“PMFs” or “ghost guns”) in Connecticut, ATF investigators determined that Andrew Francoeur, a resident of Manchester, was buying firearm parts from a Missouri company, having the parts shipped to him, and manufacturing guns inside a shipping container on a property in Suffield. Francoeur sold some of the firearms he manufactured. While he was incarcerated in state custody for firearm and drug offenses, Francoeur arranged for McManus to take possession of his guns and ammunition. McManus sold some of the firearms, broke some into pieces when he learned of the ATF investigation, and ultimately stored Francoeur’s property in two storage bins. In November 2022, investigators retrieved the storage bins and found firearm parts, a .22 caliber rifle, more than 1,800 rounds of ammunition, 25 high-capacity magazines, M-80 explosives, firearm gear, and other items. McManus’ criminal history includes felony convictions for drug, firearm, larceny, and failure to appear offenses. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce. On April 11, 2024, McManus pleaded guilty to unlawful possession of a firearm by a felon. McManus, who is released on a $25,000 bond, is required to report to prison on October 17. On April 27, 2023, Francoeur pleaded guilty in federal court to unlawful possession of a firearm and ammunition by a felon, and manufacturing and dealing in firearms without a license. On September 6, 2023, he was sentenced to 33 months of imprisonment. This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), and was prosecuted by Assistant U.S. Attorney A. Reed Durham. This case was prosecuted through Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce gun violence and other violent crime, and to make our neighborhoods safer for everyone. In May 2021, the Justice Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. For more information about Project Safe Neighborhoods, please visit www.justice.gov/psn .


title: Two Council Bluffs Men Sentenced to Federal Prison for Conspiracy to Distribute Methamphetamine

component: USAO - Iowa, Southern

body_text: COUNCIL BLUFFS, Iowa – Two Council Bluffs men were sentenced to federal prison for conspiring to distribute methamphetamine: Michael Guy Given, 36, was sentenced on August 14, 2024, to a 120‑month prison term; and Brian Michael Hogan, 50, was sentenced on September 17, 2024, to a 120‑month prison term. According to public court documents, between March and April 2023, Given and Hogan conspired to distribute methamphetamine in the Council Bluffs metropolitan area. During a search warrant, law enforcement located methamphetamine, a digital scale, and drug packaging materials. After completing their terms of imprisonment, Given and Hogan will each be required to serve a five-year term of supervised release. There is no parole in the federal system. United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. This case was investigated by the Council Bluffs Police Department and the Southwest Iowa Narcotics Enforcement (SWINE) Task Force.


title: Denver Man Found Guilty of Operating Illegal Gambling Parlor

component: USAO - Colorado

body_text: DENVER – The United States Attorney’s Office for the District of Colorado announces that Jonathan Arvay, 38, of Denver, was found guilty by a federal jury on one count of conducting an illegal gambling business, and one count of conspiracy to conduct an illegal gambling business. According to the facts established at trial, Arvay operated Player One Arcade in Denver, part of a network of gambling parlors extending from Greeley to Pueblo. These parlors offered several electronic forms of gambling through games made to resemble arcade games, as well as virtual slot machines in which customers attempted to earn credits. Upon completing their game of choice, customers would exchange any credits won for a purported cryptocurrency, Obsidian Digital Asset Coin (ODAC), whose only function was to be exchanged for cash at an ATM-like “cryptocurrency teller machine” next door to or within the gambling parlor. Customers were required to pay a transaction fee to exchange the ODAC for U.S. currency. “These gambling dens masqueraded as arcades with a veneer of legitimacy,” said Acting United States Attorney for the District of Colorado Matt Kirsch. “I am grateful to law enforcement for digging beneath the veneer and finding that these establishments were causing real harm in our communities.” “These defendants created a large, complex illegal gambling operation, both online and in person in Pueblo, Colorado Springs, Lakewood, Denver, Aurora, and Greeley. Their illicit proceeds led to crimes involving money laundering and fraud against the U.S. government, among other violations,” said FBI Denver Special Agent in Charge Mark Michalek. “Our strong partnerships with Internal Revenue Service - Criminal Investigation, as well as numerous state and local agencies, allowed us to successfully dismantle the gambling dens that were negatively impacting surrounding communities.” “I applaud the efforts of our special agents and law enforcement partners for their diligent work in unraveling this complex financial scheme,” said Tom Demeo, Acting Special Agent in Charge, IRS Criminal Investigation Denver Field Office. “As fraudsters devise new ways to evade their tax liability and defraud the government, our special agents continue to develop new investigative methods to track the illicit funds and hold these criminals accountable.” United States District Judge Gordon P. Gallagher presided over the trial. The FBI Denver Field Division, the IRS Criminal Investigation Denver Field Office, and the Pueblo Police Department conducted the investigation. Assistant United States Attorneys Cyrus Y. Chung, Alison Connaughty, and Jena Neuscheler handled the prosecution. Sentencing will be held on December 12, 2024. Case Number: 23-cr-00222-GPG


title: Greenville man sentenced to prison for illegal possession of a firearm

component: USAO - Mississippi, Northern

body_text: Aberdeen, Mississippi – A Greenville man was sentenced today to over three years in prison for possession of a firearm by a convicted felon. According to court documents, Curtis Demond Austin, 42, previously pled guilty to possession of a firearm by a prohibited person. He was sentenced by U.S. District Court Judge Sharion Aycock to serve 37 months in prison, followed by three years of supervised release. Austin is scheduled to report to prison on November 12, 2024. “The U.S. Attorney’s Office is committed to prosecuting convicted felons who illegally possess firearms,” remarked U.S. Attorney Clay Joyner. “Those individuals who have been convicted of felony offenses are prohibited by law from possessing a gun and we will continue to work alongside our local, state and federal partners to see that they are held accountable if they violate the law.” “First, we would like to thank each agency involved in the success of this conviction,” said Greenville Chief of Police Marcus Turner. “Making sure that those who break the law are apprehended and convicted is our priority. The Greenville Police Department is committed to ensuring the safety of the community and strives daily to reduce gun violence and gang activity.” This case was investigated by the Greenville Police Department. The case was prosecuted by AUSA Robert Mims. This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.


title: Portland Man Sentenced to 15 Years for Distributing Fake Pills Tainted with Fentanyl, Failing to Appear for Trial

component: Drug Enforcement Administration (DEA)

body_text: PORTLAND, Maine: A Portland man was sentenced today in U.S. District Court in Portland for distributing fentanyl, using or carrying a dangerous weapon in a drug crime, and failing to appear before the court. U.S. District Judge John A. Woodcock, Jr. sentenced Marcus Mello , 27, to 181 months in prison to be followed by four years of supervised release. The Court ordered forfeiture of his $25,000 appearance bond, and a default judgment in that amount was entered against him. Mello pleaded guilty on February 6, 2024. According to court records, in May 2020, Mello sold 12 “percs,” a common term for Percocet or Oxycodone pills, to a 59-year-old York County woman. The woman was found unconscious in a parked vehicle shortly after and could not be revived. An autopsy identified her cause of death as toxicity due to the combined effects of multiple substances, including fentanyl. Text messages recovered from the victim’s phone revealed she had purchased pills from Mello, and a medical examiner recovered a baggie marked with images of skulls that contained ten blue pills from her clothing. A chemical analysis revealed that the pills contained fentanyl, not oxycodone. A witness who was with the victim when she purchased the pills and overdosed texted Mello to inform him of the woman’s death and demanded to know what was in the pills. Despite knowing that someone had died after taking the “percs” that he sold them, Mello continued to sell the pills to other customers, including to a confidential informant. When Mello was arrested in July 2020, investigators recovered over $6,300; a loaded handgun with 14 full-metal-jacket bullets in the magazine; approximately 10 round white tablets; and approximately 417 blue pills marked “M 30” divided into plastic baggies from his backpack. Laboratory testing of the blue pills revealed that they contained fentanyl and collectively weighed approximately 45.6 grams. The white pills tested positive for Oxycodone and weighed approximately 3.8 grams. A review of Mello’s phone revealed conversations with his supplier, including dates, quantities and distribution details. While out on bail, Mello appeared in court for jury selection on October 6, 2023, but failed to appear for the start of the trial on October 16. When reached by phone, he stated he could not make it to court that day but had decided to plead guilty. When Mello again did not appear the following day, a warrant was issued for his arrest. U.S. Drug Enforcement Administration (DEA) agents located and arrested Mello at a residence in South Portland on November 3, 2023. Agents recovered a bag of white powder from a bathroom where Mello had briefly fled, another bag of powder in his shirt pocket, and a third bag in a shoebox in a guest bedroom. The DEA investigated the case. ###


title: Doctor Pleads Guilty to Conspiracy to Illegally Using a Drug Enforcement Administration Registration Number Issued to Another

component: USAO - Kentucky, Western

body_text: Louisville, KY– Yesterday, a Louisville Anesthesiologist pled guilty to conspiring with others in his medical practice to issue pre-signed and unsigned prescriptions for Schedule II controlled substances. U.S. Attorney Michael A. Bennett of the Western District of Kentucky, Acting Special Agent in Charge Erek Davodwich of the DEA Louisville Field Division, Special Agent in Charge Michael E. Stansbury of the FBI Louisville Field Office, Special Agent in Charge Tamala Miles of the United States Department for Health and Human Services, Office of Inspector General, Office of Investigations, Atlanta Regional Office, Special Agent in Charge Karen Wingerd of the Internal Revenue Service, Criminal Investigation, Cincinnati Field Office, Regional Director L. Joe Rivers, Cincinnati Regional Office, United States Department of Labor EBSA, Special Agent in Charge Darrin K. Jones of the Defense Criminal Investigative Services, Southeast Field Office, Commissioner Phillip Burnett, Jr. of the Kentucky State Police, Acting Inspecting General Tricia Steward of the Kentucky Cabinet for Health and Family Services, Office of Inspector General, Chief Paul Humphrey of the Louisville Metro Police Department and Director Juan Garrett of the Kentucky Department of Insurance made the announcement. According to court documents, Dr. Lawrence Peters, 62, pled guilty to an Information charging conspiracy to illegally use a Drug Enforcement Administration (“DEA”) registration number issued to another. According to the plea agreement, Dr. Lawrence Peters knowingly and intentionally conspired with others in his medical practice to issue pre-signed and unsigned prescriptions for Schedule II controlled substances and further directed his staff to fill the prescriptions at his physician’s owned pharmacy. Sentencing is scheduled for December 12, 2014. The maximum penalty is four years in prison. The United States is recommending probation. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. This case was investigated by the DEA, the FBI, the HHS, the IRS-CI, the DOL, the DCIS, the KSP, the Kentucky CHFS OIG, the LMPD and the Kentucky DOI. Assistant U.S. Attorneys Joe Ansari and Chris Tieke prosecuted the case. ####


title: Woman admits to submitting false disaster relief applications resulting in $620,000 loss

component: USAO - Texas, Southern

body_text: HOUSTON – A 34-year-old former Houston resident has pleaded guilty to conspiracy to commit wire fraud, announced U.S. Attorney Alamdar S. Hamdani. From March 2020 until March 2021, Cora Chantail Custard conspired with others to submit false and fraudulent loan applications for financial assistance both personally and on behalf of others. The co-conspirators submitted false applications to the Small Business Administration (SBA), Federal Emergency Management Agency (FEMA) and multiple state unemployment insurance agencies. Over the course of the conspiracy, Custard resided in both Houston and San Antonio. As part of her plea, Custard admitted to using her Facebook account to advertise her services to file fraudulent disaster relief applications. Custard’s posts repeatedly described the scheme to her social media followers as “doing apps,” with the ability to obtain between $6,000 and $8,000 for an application within four to seven days of filing. Custard submitted or caused the submission of over 100 fraudulent Economic Injury Disaster Loan applications, at least 36 of which resulted in advance payments totaling $345,000. Further investigation revealed Custard filed at least 30 fraudulent FEMA Disaster Benefit applications related to Hurricane Laura in August 2020 and Hurricane Sally in September 2020. At least 16 of those fraudulent applications resulted payouts totaling approximately $75,000. Additionally, Custard committed several other fraudulent acts like filing over 100 false unemployment insurance applications in Michigan, Illinois and several other states for her own and others’ benefits. At least 20 of those fraudulent applications resulted in payments totaling approximately $200,000. Due to her actions, multiple agencies lost a total of $620,000. U.S. District Judge David Hittner will impose sentencing in January 2025. At that time, Custard faces up to five years in federal prison and a possible $250,000 maximum fine. She was permitted to remain on bond pending that hearing. The Department of Homeland Security-Office of Inspector General (OIG), IRS-Criminal Investigation, Treasury Inspector General for Tax Administration, Social Security Administration-OIG, SBA-OIG and Department of Labor-OIG conducted the investigation. Assistant U.S. Attorney Karen M. Lansden is prosecuting the case.


title: Federal Inmate Indicted for Sexual Exploitation of a Child

body_text: COEUR D’ALENE – A federal grand jury in Coeur d’Alene returned an indictment today charging Hamza Luay Nijmeh, 39, a federal inmate housed in Forrest City, Arkansas, with Sexual Exploitation of a Child, U.S. Attorney Josh Hurwit announced today. According to court records, Nijmeh was convicted of Distribution of Child Pornography and Receipt of Child Pornography in May 2017. It is alleged in the indictment that between August 2023 and October 2023, while in federal prison in Arkansas, Nijmeh used multiple cellular phones to sexually exploit a child in the District of Idaho. If convicted, Nijmeh faces a minimum of 25 and a maximum of 50 years in federal prison for Sexual Exploitation of a Child. He faces an additional 10 years of consecutive imprisonment for commission of a felony offense involving a minor when required to register as a sex offender. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. U.S. Attorney Hurwit made the announcement and commended the work of the Moscow Police Department, the Lewiston Police Department, and the Federal Bureau of Investigation, which led to the charges. The public is encouraged to contact the FBI at 208-746-3440 with any information about this 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 Child Exploitation and Obscenity Section (CEOS) of the Department of Justice, 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 . An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law . ####


title: Trafficker Who Smuggled Mass Quantities of Fentanyl from Southern California to DC Sentenced to 14 Years in Prison

body_text: WASHINGTON – Raymond Nava Jr., 20, of Bell Gardens, California., was sentenced today to 168 months in prison for his role in a fentanyl trafficking conspiracy that spanned the country and that was responsible for the distribution of kilograms of fentanyl from Southern California to the DMV. Nava – who sold 12,000 fentanyl-laced counterfeit oxycodone pills and one dozen firearms, including an AR-style rifle to undercover officers – was one of 24 co-defendants arrested over the course of 2023 in D.C., Virginia, Maryland, San Diego, and Los Angeles and charged in the conspiracy. The sentence was announced by U.S. Attorney Matthew M. Graves, DEA Special Agent in Charge Jarod Forget of the DEA Washington Division, Inspector in Charge Damon Wood of the U.S. Postal Inspection Service Washington Division, and Chief Pamela A. Smith of the Metropolitan Police Department. Nava pleaded guilty on May 9, 2024, to conspiracy to distribute and possess with intent to distribute 400 grams or more of fentanyl. In addition to the 14-year prison term, U.S. District Court Judge Colleen Kollar-Kotelly ordered Nava to serve five years of supervised release. According to court documents, Nava’s role in the conspiracy was to serve as an upstream Los Angeles-based supplier of fentanyl-laced counterfeit oxycodone pills to other Los Angeles-based fentanyl traffickers, including co-defendant Hector David Valdez. Valdez allegedly was a bulk supplier of fentanyl-laced counterfeit oxycodone pills to D.C.-based fentanyl traffickers. In coordinating his sales of fentanyl-laced counterfeit pills, Nava worked with various co-defendants to obtain bulk quantities of pills for redistribution, including fake pills from Mexico-based sources. Nava also conspired with New York-based fentanyl traffickers, meeting with them in Los Angeles and supplying them with the fentanyl-laced fake oxycodone, which the New York-based traffickers then smuggled back to New York using interstate commercial shipping and mail carriers. Additionally, Nava regularly trafficked firearms in conjunction with his drug trafficking. He conducted multiple controlled purchases of narcotics and firearms with undercover federal law enforcement agents. In total, Nava sold 12,000 fentanyl-laced counterfeit oxycodone pills and one dozen firearms, including an AR-style rifle, as part of controlled sales that were facilitated by federal undercover officers over the life of conspiracy. The impetus for this investigation was the overdose death of Diamond Lynch, a young mother in Southeast D.C. In addition to investigating and prosecuting the death resulting case, [1] law enforcement followed the evidence and uncovered a vast network of traffickers who transported fentanyl from Mexico to Los Angeles to the District of Columbia. Since then, investigators have seized more than 450,000 fentanyl pills, 1.5 kilograms of fentanyl powder, and 30 firearms. This investigation is part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks. DEFENDANT AGE LOCATION CHARGES/SENTENCE Hector David Valdez, aka “Curl” 26 Santa Fe Springs, California Conspiracy to distribute 400 grams or more of fentanyl; Conspiracy to commit international money laundering. Craig Eastman 20 Washington, D.C. Pleaded guilty July 25, 2024, to conspiracy to distribute more than 400 grams of fentanyl. Charles Jeffrey Taylor 20 Washington, D.C. Conspiracy to distribute 400 grams or more of fentanyl; Possession with intent to distribute fentanyl. Raymond Nava, Jr. 20 Bell Gardens, California Sentenced 9/17/2024 to 14 Years for conspiracy to distribute 400 grams or more of fentanyl. Ulises Aldaz 28 Bell Gardens, California Sentenced June 28, 2024, to 95 months in prison, four years of supervised release, after pleading guilty to conspiracy to distribute 400 grams or more of fentanyl. Max Alexander Carias Torres 26 Bell Gardens, California Conspiracy to distribute 400 grams or more of fentanyl; Conspiracy to commit international money laundering Teron Deandre McNeil, aka “Wild Boy” 34 Washington, D.C. Conspiracy to distribute 400 grams or more of fentanyl. Marvin Anthony Bussie, aka “Money Marr” 21 Washington, D.C. Sentenced June 28, 2024, to 120 months in prison, five years of supervised release, after pleading guilty to conspiracy to distribute 400 grams or more of fentanyl. Marcus Orlando Brown 28 Washington, D.C. Pleaded guilty March 11, 2024, to conspiracy to distribute 40 grams or more of fentanyl. Columbian Thomas, aka "Cruddy Murda” 26 Washington, D.C. Pleaded guilty June 4, 2024, to conspiracy to distribute 400 grams or more of fentanyl. Wayne Rodell Carr-Maiden 29 Washington, D.C. Sentenced April 29, 2024, to 45 months in prison, five years of supervised release, after pleading guilty to conspiracy to distribute 40 grams or more of fentanyl. Andre Malik Edmond, aka “Draco” 23 Temple Hills, Maryland Sentenced July 22, 2024, to 130 months incarceration, 5 years of supervised release, after pleading guilty to conspiracy to distribute 400 grams or more of fentanyl. Treyveon James Johnson, aka “Treyski” 20 Alexandria, Virginia Sentenced Sept. 5, 2024, to 108 months in prison after pleading guilty to conspiracy to distribute 40 grams or more of fentanyl. Karon Olufemi Blalock, aka “Fat Bags” 30 Alexandria, Virginia Conspiracy to distribute 400 grams or more of fentanyl Ronte Ricardo Greene, aka “Cardiddy” 28 Washington, D.C. Conspiracy to distribute 400 grams or more of fentanyl; Possession with intent to distribute fentanyl. Melvin Edward Allen, Jr., aka “21” 38 Washington, D.C. Conspiracy to distribute 400 grams or more of fentanyl. Darius Quincy Hodges, aka “Brick” 34 Glen Allen, Virginia Conspiracy to distribute 400 grams or more of fentanyl. Lamin Sesay, aka “Rock Star” 27 Alexandria, Virginia Conspiracy to distribute 400 grams or more of fentanyl. Paul Alejandro Felix 25 Glendale, California Pleaded guilty July 1, 2024, to conspiracy to distribute 400 grams or more of fentanyl. Omar Arana, aka “Frogs” 27 Cudahy, California Conspiracy to distribute 400 grams or more of fentanyl Edgar Balderas, Jr., aka “Nano” 26 San Diego, California Conspiracy to distribute 400 grams or more of fentanyl. Raul Pacheco Ramirez 30 Long Beach, California Pleaded guilty July 19, 2024, to conspiracy to distribute 400 grams or more of fentanyl. Giovani Alejandro Briones 30 Victorville, California Conspiracy to distribute 400 grams or more of fentanyl; Conspiracy to commit international money laundering. Alfredo Rodriguez Gonzalez 26 Rosarito, Mexico Conspiracy to distribute 400 grams or more of fentanyl; Conspiracy to commit international money laundering. The prosecutions followed a joint investigation by the DEA Washington Division and the USPIS Washington Division in partnership with the Metropolitan Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), with additional support from the DEA Los Angeles, San Diego, and Riverside Field Offices, the Federal Bureau of Investigation’s Washington Field Office, and the Charles County, Maryland Sheriff’s Office. Valuable assistance was provided by the U.S. Attorney’s Offices in the Central and Southern Districts of California, the Eastern District of Virginia, the District of Maryland and U.S. Marshals. The case is being prosecuted by Assistant U.S. Attorneys Matthew W. Kinskey, Solomon S. Eppel, and Iris McCranie, of the Violence Reduction and Trafficking Offenses (VRTO) Section. 23cr73 [1] https://www.justice.gov/usao-dc/pr/brother-and-sister-sentenced-drug-conspiracy-involving-fentanyl-sales


body_text: BILLINGS — Attorney General Merrick B. Garland has approved an initial set of 78 communities across 47 states, territories, and the District of Columbia for designation under Section 1103 of the Violence Against Women Act Reauthorization Act of 2022. The Justice Department - through its United States Attorney’s offices (USAOs) and Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Field Divisions - will partner with each designated jurisdiction to develop a plan to reduce intimate partner firearm violence and to prioritize prosecutions of domestic violence offenders prohibited under 18 U.S. Code Section 922(g) from owning firearms. In the District of Montana, Gallatin County and Bozeman have been designated. “Domestic gun violence not only leads to tragedy within families, but it also ripples through our communities. Everyone has a right to feel safe in their homes and communities. Reducing intimate partner firearm violence and getting dangerous offenders off the street are top priorities for our office. By continuing our commitment to work with our local, state and federal law enforcement partners, and community stakeholders, we are making sure that persons who are prohibited under federal law from having guns are prosecuted and held accountable,” U.S. Attorney Laslovich said. “Domestic abuse was once considered a private matter to be suffered alone in the shadows,” said ATF Special Agent in Charge Brent Beavers. “VAWA has steadily shone a light on this issue, resulting in significant decreases in domestic violence over the past few decades. We recognize firearms are often used by abusers to carry out acts of domestic violence. To combat this, we encourage our law enforcement partners to seek all available federal funds so we may continue to disrupt this violence and strengthen our support of all victims.” "As the County Attorney in Gallatin County, I witness firsthand the devastating impact of domestic violence on families and communities,” said Gallatin County Attorney Audrey Cromwell. “Gallatin County's designation as a VAWA jurisdiction and partnership with the US Attorney's Office marks a crucial advancement in our fight against domestic violence. By collaborating at both local and federal levels, we enhance our capability to tackle the complexities of these cases, especially those involving gun violence. Our joint efforts are not only aimed at reducing domestic violence and preventing homicides but also at providing robust support to survivors, ensuring they have the resources and protection necessary to rebuild and thrive. This initiative underscores our commitment to a safer, more just community." The U.S. Attorney’s Office for the District of Montana is working with law enforcement to reduce gun violence through coordinated, multi-agency investigations through the federal initiative, Project Safe Neighborhoods, to ensure that persons who violate federal firearms law are charged, convicted and sentenced to federal prison, where there is no parole. Communities have been designated in close coordination with community stakeholders. They include rural areas, suburban areas, urban areas, and Tribal communities. The Justice Department used data to identify communities that could benefit from increased focus on intimate partner violence resources and where the local jurisdiction is committed to partnering with the Department to increase the use of federal tools to prosecute offenders under 18 U.S.C. 922(g). The designation represents the partnership and coordination between the department and the local jurisdiction to ensure federal resources are being leveraged effectively to address intimate partner firearm violence. The Justice Department anticipates additional jurisdictions to be designated as USAOs continue coordination with their local stakeholders. All USAOs, with or without specific community designations under Section 1103, will continue to combat intimate partner firearm violence and prioritize prosecutions of domestic violence offenders as part of their Project Safe Neighborhoods strategy and in support of the Department’s Comprehensive Strategy for Reducing Violent Crime. XXX


title: U.S. Attorney Jessica D. Aber and HUD Inspector General Rae Oliver Davis host Safe Housing Summit

component: USAO - Virginia, Eastern

body_text: RICHMOND, Va. – U.S. Attorney Jessica D. Aber for the Eastern District of Virginia and U.S. Department of Housing and Urban Development Inspector General Rae Oliver Davis hosted a Safe Housing Summit in Richmond on Sept. 16 focused on combatting sexual misconduct, promoting environmental justice, and protecting the civil rights of residents in HUD-assisted housing. The summit was attended by representatives from a number of organizations, including the Richmond Redevelopment Housing Authority, Virginia Organizing, Community Climate Collaborative, Legal Aid Justice Center, Richmond Tenants Union, Storefront for Community Design, Virginia Environmental Justice Collaborative, Housing Opportunities Made Equal (HOME) of Virginia, Virginia Poverty Law Center, Discoverself Fellowship, United Communities Against Crime, and the University of Richmond. “The Department of Justice and the U.S. Attorney’s Office play an important role in fulfilling the promise of HUD-assisted housing,” said U.S. Attorney Aber. “We are very pleased to be joined by community groups and residents, providing an opportunity both to listen to their concerns and to share with them information regarding resources and recourse. Our message today is that the law is on your side and assistance is available to you.” “Along with the strong commitment from U.S. Attorney Aber, community outreach events like we hosted today in Richmond allow HUD OIG to amplify for HUD tenants and applicants seeking housing that they have a right to housing that is void of sexual misconduct, and safe from lead and environmental hazards,” said Inspector General Oliver Davis. “We remain committed to investigating those who risk the health and safety of HUD-assisted families or who victimize vulnerable people receiving HUD assistance with our partners at the U.S. Attorney’s Office.” Participants discussed the Justice Department’s environmental justice enforcement strategy. In particular, the U.S. Attorney’s Office prioritizes cases that will reduce harm to public health and the environment for overburdened and underserved communities, and lead paint is a matter of priority for HUD OIG. Participants discussed the Environmental Protection Agency’s mapping of environmental justice indicators like lead paint across the Eastern District of Virginia. The event also featured a presentation on combatting sexual harassment in housing through civil and criminal enforcement of the Fair Housing Act. Participants discussed how to identify sexual harassment affecting or impairing housing rights, from quid pro quo demands to a hostile housing environment, and covered various options for enforcing those rights, either privately, through administrative remedies within HUD’s Office of Fair Housing and Equal Opportunity, or via criminal charges. Participants learned about the case of Joseph Centanni, a New Jersey Section 8 landlord who agreed to pay $4.5 million in a civil enforcement action relating to numerous accusations of demands for sexual acts from tenants. The summit also addressed the enforcement of civil rights laws in housing. The discussion centered on criminal enforcement of the Fair Housing Act, which prohibits violence or threats of violence on the basis of race or other protected categories to deny a resident’s enjoyment of a housing right, such as leasing or occupying a dwelling. One recent example from the Eastern District of Virginia is the prosecution of David L. Merryman , a landlord in Hampton and Newport News, for fraud, identity theft, and multiple civil rights offenses. In his guilty plea, Merryman admitted to acts of violence and numerous threats to tenants on account of their race. The presentation from the U.S. Attorney’s Office noted that race-based interference with fair housing is the most frequently charged hate crime statute in the United States. If you have or someone you know has information about environmental hazards and unsafe unit conditions in HUD-assisted housing or you have or someone you know has been a victim of sexual harassment, sexual assault, or sexual exploitation—even if the events occurred years ago—report it to the HUD Office of Inspector General Hotline at 1-800-347-3735 or visit the website at www.hudoig.gov/hotline . You may also file a complaint with HUD’s Office of Fair Housing and Equal Opportunity at https://www.hud.gov/fairhousing/fileacomplaint . You may also contact the U.S. Department of Justice at 1-844-380-6178 or visit www.civilrights.justice.gov . Anyone who believes they may have been a victim of environmental injustices or housing discrimination may also contact the U.S. Attorney’s Office at (804) 819-5400 or by email at usavae.usattys@usdoj.gov .


title: Former D.C. Special Police Officer Charged with Federal Civil Rights Offense for Using Excessive Force and with Obstruction of Justice

component: Civil Rights Division

body_text: A federal grand jury in the District of Columbia returned an indictment today charging a former D.C. Special Police Officer with depriving an arrestee of her civil rights under color of law. The indictment charges former D.C. Special Police Officer Curtis Holloway, 65, with one count of deprivation of rights under color of law for willfully using unreasonable force against an arrestee, who is identified in the indictment as A.J. Specifically, the indictment alleges that, without legal justification, Holloway struck A.J. on the head with a firearm, resulting in bodily injury to A.J. The indictment also charges Holloway with obstruction of justice for false statements he made to responding Metropolitan Police Department officers. Finally, the indictment charges Holloway with assault with a deadly weapon. The civil rights charge and assault charge each carry a maximum penalty of 10 years in prison. The obstruction charge carries a maximum penalty of 20 years in prison. If convicted, a federal judge will determine any sentence based on the U.S. Sentencing Guidelines and other statutory factors. Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, U.S. Attorney Matthew M. Graves for the District of Columbia and Acting Special Agent in Charge David Geist of the FBI Washington Field Office made the announcement. The FBI Washington Field Office investigated this case. Assistant U.S. Attorney Joshua Gold for the District of Columbia and Trial Attorney Laura-Kate Bernstein of the Civil Rights Division’s Criminal Section are prosecuting the case. An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.


title: Michigan Woman Sentenced to Prison for Conspiracy to Commit Sex Trafficking of a Minor in New Orleans

component: Criminal Division

body_text: A Michigan woman was sentenced today to five years in prison for conspiracy to commit sex trafficking of a minor. According to court documents, from around December 2021 through around March 2022, Latesha Gardner, 30, of Flint, Michigan, and her boyfriend, Charles Cunigan, conspired to sex traffic a minor victim and used force, fraud, or coercion to carry out the conspiracy. Cunigan and Gardner transported the minor victim across state lines, from Tennessee to Illinois, Louisiana, and Texas, for the purpose of causing her to engage in commercial sex acts. Specifically, Gardner taught the minor victim how to “pose sexy” for photos and used those photos to advertise the minor victim online for commercial sex. Gardner also participated in commercial sex encounters with the minor victim and would instruct the minor victim what to do during the encounters. If the minor victim did not comply with Cunigan’s demands, he would beat the minor victim, and on occasion, he directed Gardner to use physical force against the minor victim as well. In an altercation in February 2022, Cunigan punched and kicked the minor victim, and Gardner hit the minor victim with a liquor bottle and a high-heeled shoe. Cunigan and Gardner knew the minor victim was a juvenile throughout the timeframe of the conspiracy. In addition to the prison sentence, Gardner was also ordered to serve three years of supervised release and pay $9,750 in restitution to the victim. After her release from prison, Gardner will be required to register as a sex offender under the Sex Offender Registration and Notification Act (SORNA). Gardner pleaded guilty on June 18 to conspiracy to commit sex trafficking of a minor. Cunigan pleaded guilty on June 25 to conspiracy to commit sex trafficking of a minor and sex trafficking by force, fraud, or coercion. He is scheduled to be sentenced on Sept. 24. Principle Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division, and U.S. Attorney Duane A. Evans for the Eastern District of Louisiana made the announcement. Homeland Security Investigations investigated the case. Trial Attorney Melissa E. Bücher of the Criminal Division’s Money Laundering and Asset Recovery Section and Assistant U.S. Attorney Maria M. Carboni for the Eastern District of Louisiana’s Financial Crimes Unit are prosecuting the case.


title: Justice Department Awards Over $600M to Hire Law Enforcement Officers, Keep Schools Safe, and Improve Law Enforcement Mental Health and Wellness Services

component: Office of the Attorney General

body_text: The Justice Department’s Office of Community Oriented Policing Services (COPS Office) today announced that it has awarded over $600 million in grant funding to law enforcement agencies and stakeholders across the country. This funding will go to support a wide range of efforts, from hiring new law enforcement officers and keeping our schools safe, to expanding programs that support law enforcement mental health and wellness services and combating the distribution and trafficking of illicit drugs. The funding was announced as part of the Justice Department’s celebration of the 30th anniversary of the COPS Office, commemorating 30 years since the passage of the Violent Crime Control and Law Enforcement Act. Since that time, the COPS Office has advanced community policing across the country by providing a variety of resources, including grant funding, training, technical assistance, and a wide range of publications and other resources. “Since its founding 30 years ago, the COPS Office has shown the country what it looks like to put the values of community-oriented policing into action,” said Attorney General Merrick B. Garland. “This coming year, the Justice Department will provide funding for 235 police departments to hire nearly 1,200 additional officers. As we celebrate this milestone and announce this funding, we recommit ourselves to the COPS Office’s mission, and to the belief that everyone in this country deserves to feel safe, and to be safe, in their communities.” “For 30 years, the COPS Office has been crucial to keeping our communities safe,” said Deputy Attorney General Lisa Monaco. “From helping communities build public safety capacity by putting more cops on the beat to helping law enforcement professionals build resilience — the COPS office has been a game changer for public safety.” “Over the past three decades, the COPS Office has provided vital resources, training, and support to law enforcement agencies across the country to help them implement community policing strategies,” said Principal Deputy Associate Attorney General Benjamin C. Mizer. “That support is based on the foundational tenet that communities are safer when law enforcement and community members work in true partnership.” “As the COPS Office celebrates its 30th anniversary of working with local, state, territorial, and Tribal law enforcement agencies, these grants are another example of the tremendous support we have been able to offer the law enforcement field over the years,” said Director Hugh T. Clements Jr. of the COPS Office. “These grants are one more way we work to ensure law enforcement and community members get the support they need as they continue to strive to keep their communities safe.” The funding announced today includes: $157 million through the COPS Hiring Program (CHP) for 235 law enforcement agencies to hire nearly 1,200 additional officers to enhance their community policing capacity; $73 million for the School Violence Prevention Program/Bipartisan Safer Communities Act , for school safety measures in and around K-12 schools; $46 million to combat the distribution and trafficking of opioids and methamphetamine through the COPS Anti-Heroin Task Force (AHTF) program and the COPS Anti-Methamphetamine Program (CAMP) ; Over $31 million for the Tribal Resources Grant Program (TRGP) , with an additional $500,000 in technical assistance; Over $9 million for the Law Enforcement Mental Health and Wellness Act (LEMHWA) program to improve the delivery of and access to mental health and wellness services for law enforcement and support staff;$750,000 for the Implementation of the De-Escalation Training Act ; $10.5 million for the Preparing for Active Shooter Situations (PASS) Program, which provides training for first responders through scenario-based, multidisciplinary training classes; Almost $14 million in Community Policing Development Microgrants and Law Enforcement Products and Resources ; Over $4 million for Promoting Access to Crisis Teams, which supports the implementation of crisis intervention teams, including embedding behavioral or mental health professionals with law enforcement agencies; and $6.5 million for law enforcement agency accreditation, for programs that allow police departments and sheriff’s agencies to obtain accreditation by independent credentialing bodies. The COPS Office is the federal component of the Justice Department responsible for advancing community policing nationwide. The only Justice Department agency with policing in its name, the COPS Office was established in 1994 and has been the cornerstone of the nation’s crime fighting strategy with grants, a variety of knowledge resource products, and training and technical assistance. Through the years, the COPS Office has become the go-to organization for law enforcement agencies across the country and continues to listen to the field and provide the resources that are needed to reduce crime and build trust between law enforcement and the communities served. The COPS Office has been appropriated more than $20 billion to advance community policing, including grants awarded to more than 13,000 state, local, territorial, and Tribal law enforcement agencies to fund the hiring and redeployment of approximately 138,000 officers.


title: Former D.C. Special Police Officer Charged with Federal Civil Rights and Obstruction Offenses for Excessive Force

body_text: WASHINGTON – A federal grand jury in the District of Columbia returned an indictment today charging former D.C. Special Police Officer Curtis Holloway with depriving an arrestee of her civil rights under color of law. The indictment was announced by U.S. Attorney Matthew M. Graves for the District of Columbia, Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, and FBI Acting Special Agent in Charge David Geist of the Washington Field Office. The indictment charges Holloway, 65, with one count of deprivation of rights under color of law for willfully using unreasonable force against an arrestee, who is identified in the indictment as A.J., a 33-year-old woman. Specifically, the indictment alleges that, without legal justification, Holloway struck A.J. on the head with a firearm from behind on October 13, 2023, as she tried to run away from him, resulting in bodily injury to A.J. The indictment also charges Holloway with obstruction of justice for false statements he made to responding Metropolitan Police Department officers. Finally, the indictment charges Holloway with assault with a deadly weapon under the D.C. code. The civil rights charge and assault charge each carry a maximum penalty of 10 years in prison. The obstruction offense carries a maximum penalty of 20 years in prison. If convicted, a federal judge will determine any sentence based on the U.S. Sentencing Guidelines and other statutory factors. The FBI Washington Field Office investigated this case. The matter is being prosecuted by Assistant U.S. Attorney Joshua Gold for the District of Columbia and Trial Attorney Laura-Kate Bernstein of the Civil Rights Division’s Criminal Section. An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.


title: Delaware Man Pleads Guilty to Heroin Trafficking

component: USAO - Pennsylvania, Western

body_text: JOHNSTOWN, Pa. – A resident of Middletown, Delaware, pleaded guilty in federal court to a charge of violating federal narcotics laws, United States Attorney Eric G. Olshan announced today. Paul Smith, 46, pleaded guilty to Count One of the Superseding Indictment before Senior United States District Judge Kim R. Gibson. In connection with the guilty plea, the Court was advised that, from in and around April 2019 to in and around July 2021, in the Western District of Pennsylvania, Smith conspired with others to distribute and possess with intent to distribute 100 grams or more of a mixture and substance containing heroin. Smith was intercepted on a federal wiretap obtaining quantities of the drugs that he distributed to others. Judge Gibson scheduled sentencing for January 21, 2025. The law provides for a total sentence of not less than five years and up to 40 years in prison, a fine of up to $5 million, or both. Under the federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant. Assistant United States Attorney Maureen Sheehan-Balchon is prosecuting this case on behalf of the government. The Federal Bureau of Investigation’s Laurel Highlands Resident Agency and Homeland Security Investigations conducted the investigation that led to the prosecution of Smith. Additional agencies participating in this investigation include the Bureau of Alcohol, Tobacco, Firearms and Explosives, Internal Revenue Service – Criminal Investigation, United States Postal Inspection Service, Pennsylvania Office of Attorney General, Pennsylvania State Police, Cambria County District Attorney’s Office, Indiana County District Attorney’s Office, Cambria County Sheriff’s Office, Cambria Township Police Department, Indiana Borough Police Department, Johnstown Police Department, Upper Yoder Township Police Department, Richland Police Department, Ferndale Police Department, and other local law enforcement agencies. This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.


title: Indianapolis Woman Sentenced to Prison for Submitting Fraudulent COVID-19 Relief Loan Applications

body_text: PITTSBURGH, Pa. - A resident of Indianapolis, Indiana, has been sentenced in federal court to 12 months and one day in prison on her conviction of wire fraud, United States Attorney Eric G. Olshan announced today. Antranette Echols, 57, was also ordered to pay restitution of $373,690 to several financial institutions and the Small Business Administration, who were the victims in the fraud. Senior United States District Judge Nora Barry Fischer imposed the sentence on Echols. According to information presented to the Court, Echols prepared and submitted falsified COVID-19 pandemic relief loan applications on behalf of business borrowers, for which she took a fee. Some of the borrowers were located in the Western District of Pennsylvania. Assistant United States Attorney Gregory C. Melucci prosecuted this case on behalf of the government. United States Attorney Olshan commended the Federal Bureau of Investigation for the investigation leading to the successful prosecution of Echols.


title: Clairton Resident Indicted on 19 Counts of Sexual Exploitation of Minors

body_text: PITTSBURGH, Pa. - A resident of Clairton, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges related to the sexual exploitation of minors, United States Attorney Eric G. Olshan announced today. The 19-count Indictment named Joseph Primiero, 26, as the sole defendant. According to the Indictment, on January 22, 2022, and between June 13, 2022, and June 28, 2022, Primiero produced material depicting the sexual exploitation of minors. During that same time frame, Primiero allegedly coerced and enticed a minor to engage in sexual activity, received and distributed material depicting the sexual exploitation of minors, and transferred obscene images and videos of himself engaged in sexually explicit conduct to a minor. Additionally, Primiero is charged with possession of material depicting the sexual exploitation of prepubescent minors and minors under 12 years of age on May 22, 2024. The law provides for a maximum total sentence of up to life in prison, a fine of up to $4.75 million, or both. Under the federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant. Assistant United States Attorney V. Joseph Sonson is prosecuting this case on behalf of the government. The Federal Bureau of Investigation and Allegheny County Police Department conducted the investigation leading to the Indictment. This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc . An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.


title: Pittsburgh Resident Indicted for Possession with Intent to Distribute Fentanyl

body_text: PITTSBURGH, Pa. - A resident of Pittsburgh, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on a charge of violating a federal narcotics law, United States Attorney Eric G. Olshan announced today. The one-count Indictment named Drew Gordon, 22, as the sole defendant. According to the Indictment, on or about August 30, 2024, Gordon possessed with the intent to distribute a quantity of fentanyl. The law provides for a maximum total sentence of up to 20 years in prison, a fine of up to $1 million, or both. Under the federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant. Assistant United States Attorney Douglas C. Maloney is prosecuting this case on behalf of the government. The Federal Bureau of Investigation, Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives, United States Marshals Service, Pittsburgh Bureau of Police, Allegheny County Police Department, and Allegheny County Sheriff’s Department conducted the investigation leading to the Indictment. This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.


title: Oahu Man Sentenced to 181 Months for Possession of Methamphetamine and Firearm

component: USAO - Hawaii

body_text: HONOLULU – United States Attorney Clare E. Connors announced that Henry K. Lii, 58, of Oahu, was sentenced yesterday by Senior United States District Judge Helen Gillmor to 181 months in federal prison and a lifetime of supervised release for possessing methamphetamine with intent to distribute and possessing a firearm in furtherance of a drug trafficking crime. According to court records, in October 2023, while living in Honolulu, Hawaii, and on federal supervised release in connection with a 2007 federal drug conviction, Lii was found in possession of nearly three pounds of methamphetamine, as well as cocaine, marijuana, and a 9mm “ghost gun” used to protect his drugs and any drug proceeds. In February 2024, Lii pled guilty to both offenses, admitting that he intended to distribute the drugs and knowingly possessed the firearm in furtherance of his drug trafficking. Judge Gillmor also sentenced Lii to an additional 36 months for committing the foregoing offenses while on supervised release on his 2007 conviction, to run consecutively to his 181-month sentence. The case was investigated by the Federal Bureau of Investigation and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. It was prosecuted by Assistant U.S. Attorney Barbara Eucker.


title: Detroit Man Convicted of Distributing Fentanyl Causing Multiple Overdoses; Faces 20 years to Life

component: USAO - Michigan, Eastern

body_text: DETROIT – A federal jury convicted a Detroit man of distributing fentanyl that caused the deaths of two individuals and seriously injured another, and other drug-related crimes yesterday, United States Attorney Dawn N. Ison announced. Ison was joined in the announcement by Orville O. Greene, Special Agent in Charge, Drug Enforcement Administration, Detroit Division. Following a two-week trial before U.S. District Court Judge Laurie J. Michelson, Melvin Lamar Triplett, 42, was convicted of distributing crack cocaine and fentanyl, resulting in the deaths of two individuals and causing serious bodily injury to another. He was also convicted of conspiracy to distribute and possession with intent to distribute crack cocaine and fentanyl. Evidence at trial showed that in November 2022, Triplett distributed fentanyl-laced crack cocaine that caused the overdoses. DEA investigators traced the lethal drugs back to Triplett, a previously convicted drug dealer. “Our office will vigorously pursue drug traffickers who push dangerous drugs like fentanyl into our communities with indifference to the deadly harm it inflicts,” stated United States Attorney Dawn N. Ison. “This verdict is a result of outstanding teamwork between the Drug Enforcement Administration and multiple local police agencies from the start of their investigation through its finish.” “The sentencing of Melvin Triplett, whose criminal activities led to the deaths of two individuals, is a clear example that this behavior will never be tolerated,” stated DEA Special Agent in Charge Greene. “Two people lost their lives and their families are suffering due to this poison being accessible. We will continue to investigate and hold these offenders accountable to keep our communities and residents safe.” Triplett is facing a mandatory 20-year prison sentence, with a maximum possible sentence of life imprisonment. This case was investigated by the Drug Enforcement Administration. It was prosecuted by Assistant United States Attorneys Caitlin Casey and Eaton Brown.


title: Council Bluffs Man Sentenced to 220 Months in Federal Prison for Possessing a Distribution Quantity of Methamphetamine

body_text: COUNCIL BLUFFS, Iowa – A Council Bluffs man was sentenced today to 220 months in federal prison for possessing a distribution quantity of methamphetamine. According to public court documents, law enforcement used a confidential informant to purchase methamphetamine from Philip Duane Sales, 54, in fall 2023. On December 20, 2023, law enforcement executed a search warrant at Sales’ residence and seized approximately 70 grams of methamphetamine and currency, some of which was utilized during a controlled buy in October 2023. After completing his term of imprisonment, Sales will be required to serve a five-year term of supervised release. There is no parole in the federal system. United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. This case was investigated by the Southwest Iowa Narcotics Enforcement (SWINE) Task Force, Council Bluffs Police Department, Iowa Department of Narcotics Enforcement, and Iowa State Patrol.


title: Tuscola Contractor Sentenced for Fraud Related to Central Illinois Home Building Business

body_text: Urbana, Ill. – A Tuscola, Illinois, man, Aaron Gillison, 40, of the 800 block of Beecher Drive, was sentenced on September 13, 2024, to one day in prison, a term of three years of supervised release, and ordered to pay $76,995 in restitution. Gillison had previously pleaded guilty to the offense of giving a false oath or account in a bankruptcy proceeding, in violation of 18 U.S.C. § 152(2). Gillison initially came to the attention of the Federal Bureau of Investigation following a series of complaints from Central Illinois homeowners to various local law enforcement agencies. One impacted homeowner won a civil judgement against Gillison and his company. At the sentencing hearing in front of U.S. District Court Judge Colin S. Bruce, the government presented evidence that, at a bankruptcy proceeding, Gillion falsely claimed that he had not used business funds for personal expenses, nor had he co-mingled client funds with his own personal accounts. Further evidence showed the FBI investigation uncovered that, in the twelve months leading up to his business declaring bankruptcy, Gillison had transferred approximately $65,000 from a business account into his personal account, wrote nearly $22,000 in checks to himself from the business account, and spent more than $10,000 in business funds on personal purchases, such as fishing gear and outdoor equipment. During the sentencing, Judge Bruce noted that Gillison had no criminal history prior to this conduct. He also noted that Gillison was employed and would be able to pay the restitution while he maintained employment. The maximum penalty for giving a false oath or account in a bankruptcy proceeding are not more than five years in the Bureau of Prisons, not more than a three-year term of supervised release, and up to a $250,000 fine. The investigation was conducted by the Federal Bureau of Investigation, Springfield Field Office, with assistance of several local law enforcement agencies. Assistant U.S. Attorney Nathan Bertrand represented the United States in the prosecution.


title: Baltimore woman pleads guilty to COVID fraud

component: USAO - New York, Western

body_text: BUFFALO, N.Y. — U.S. Attorney Trini E. Ross announced today that Nina M. Williams, 56, of Baltimore, Maryland, pleaded guilty before Senior U.S. District Judge William, M. Skretny to wire fraud, which carries a maximum penalty of 20 years in prison and a $250,000 fine. According to court documents, Williams transmitted two fraudulent Paycheck Protection Program (PPP) loan applications on behalf of Nimiche Inc. and Nimiche Interiors Inc., a Maryland-based business, along with fraudulent supporting documentation, to a federally insured bank in Buffalo, NY, and a mortgage lending business, which participated as lenders in the PPP loan program. In May 2020, Williams electronically submitted a PPP loan application to the bank for $97,500, and in April 2021, she electronically submitted a PPP loan application to the mortgage lending business for $432,960. Williams falsely claimed that Nimiche Inc. and Nimiche Interiors Inc. had between four and 25 employees and average monthly payrolls of, respectively, $39,000 to $173,185. Williams falsely stated that the loan funds would be used to retain workers and maintain payroll or other proscribed uses under the PPP loan rules. This resulted in the bank issuing $97,500 into Nimiche Inc.’s business account controlled by Williams. However, the funds were not used for business-related expenses. Instead, Williams used some of the funds towards the purchase of real property in Maryland. In addition, the mortgage lending business issued loan proceeds totaling $432,960, into Nimiche Inc.’s business account controlled Williams. Once again, the funds were not used for business-related expenses. During the May 2020, through May 2021 time period, Williams worked with others to submit at least five additional fraudulent PPP and Economic Injury Disaster Loan (EIDL) loan applications to the mortgage lending business and another bank. In total, based on the materially false and fraudulent representations contained in the application materials, Williams intended to fraudulently obtain a total of approximately $2.6 million in PPP and EIDL funds, and in fact fraudulently obtained approximately $1.5 million in PPP and EIDL funds. The plea is the result of an investigation by the Internal Revenue Service, Criminal Investigation Division, under the direction of Thomas Fattorusso, Special Agent-in-Charge, New York Field Office, Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Matthew Miraglia, the U.S. Postal Inspection Service Boston Division, under the direction of Inspector in Charge Ketty Larco-Ward, and the Social Security Administration Office of Inspector General, under the direction of Acting Special Agent-in-Charge Corwin Rattler. The case was prosecuted by Assistant U.S. Attorney Charles M. Kruly and Trial Attorney Jennifer Bilinkas of the Criminal Division’s Fraud Section. Sentencing is scheduled for December 18, 2024, before Judge Skretny. # # # #


title: New Jersey man pleads guilty to his role in fraud scheme

body_text: BUFFALO, N.Y.-U.S. Attorney Trini E. Ross announced today that Jaspreet Singh, 29, pleaded guilty before U.S. Magistrate Judge Jeremiah J. McCarthy to conspiracy to commit wire fraud, which carries a maximum penalty of 20 years in prison, and a fine of $250,000. Assistant U.S. Attorney Franz M. Wright, who is handling the case, stated that in July 2023, Singh conspired with others to obtain money, or other items of value, by fraudulently convincing victims, some of them elderly, to provide money and property to members of the conspiracy. Members contacted victims by telephone and falsely impersonated government officials, such as the United States Marshals Service, the Federal Trade Commission, or other federal agencies. Victims were told that illicit activity was conducted using their personal information, and in order to “clear” their name, and prevent law enforcement from arresting or prosecuting them, they had to pay money via wire transactions, gift cards, gold, and/or cash to the government. In some instances, victims were instructed to wire money from their bank accounts to various other bank accounts located around the United States, while other victims were instructed to withdraw cash from their bank accounts and deliver the “payment” to a “government courier” who was in fact, an active member of the conspiracy. Singh a co-conspirator, who served as a courier. On July 25, 2023, Singh traveled from New Jersey to Orchard Park, NY. Singh was instructed to drive to the residence of a 76-year-old victim identified as “W.D.,” and collect several U.S. Postal Service packages, which contained gold bars. Later that day, he was stopped by the Wyoming County Sheriff’s Office for speeding. During his interaction with law enforcement, Singh provided law enforcement with conflicting stories why he was in the area, and why he was heading back to New Jersey. Singh granted the officer permission to search his vehicle, during which the officer found a USPS package containing a large quantity of American Reserve Bullion 1-Ounce Gold Bars and shipping boxes. Law enforcement interviewed W.D., who told officers that he and his wife were told their identities were used in a fraudulent scheme and they needed to “clear” their names by purchasing gold bullion bars. If they did not, the victim stated that they would be arrested and prosecuted. As a result, W.D. suffered a substantial loss to his retirement funds and savings accounts. The plea is the result of an investigation by Homeland Security Investigations, under the direction of Special Agent-in-Charge Matthew Scarpino. Sentencing will be scheduled at a later date. # # # #


title: Southern tier man and woman charged to produce child pornography

body_text: BUFFALO, N.Y. - U.S. Attorney Trini E. Ross announced today that David A. Johnston, 55, of Allegany, NY, and Kayla R. Kio, 26, of Olean, NY, were arrested and charged by criminal complaint with conspiracy to produce child pornography, which carries a mandatory minimum penalty of 15 years in prison, a maximum of 30 years, and a $250,000 fine. Assistant U.S. Attorney Aaron J. Mango, who is handling the case, stated that according to the complaint, on March 2, 2024, the New York State were called to Wal-Mart in Olean, for a report of a domestic dispute. Kio reported that she was being stalked and harassed by her ex-boyfriend, Johnston. The two worked together at Wal-Mart. Kio stated that in February 2024, while she was in the process of breaking up with Johnston, he requested that she produce and send to him sexually explicit videos of a 5-year-old child. Troopers seized Kio’s cell phone and recovered multiple videos and images of child pornography. On March 13, 2024, the NYSP executed a search warrant at Johnston’s Allegany residence, during which they seized four cell phones and a tablet. Investigators recovered videos of child pornography and sexually explicit communications exchanged between Kio and Johnston. Johnston was charged with Possessing a Sexual Performance of a Child and Endangering the Welfare of a Child, while Kio was charged with Promoting a Sexual Performance by a Child and Endangering the Welfare of a Child. In 2007, Johnston was convicted of Indecent Assault and Corruption of Minors in McKean, PA, County Court. Johnston and Kio made an initial appearance before U.S. Magistrate Judge H. Kenneth Schroeder, Jr. Kio was released on conditions. Johnston is being held pending a detention hearing on September 17, 2024, at 2:30 p.m. The complaint is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Matthew Miraglia, the New York State Police, under the direction of Major Stanley Edwards, and the Cattaraugus County Sheriff’s Office, under the direction of Sheriff Timothy Whitcomb. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty. # # # #


title: Ontario man charged with conspiracy to import meth

body_text: ROCHESTER, N.Y.-U.S. Attorney Trini E. Ross announced today that Mohamed Patel, 39, of Ontario, CA, was arrested and charged by criminal complaint with conspiracy to import morphine, and conspiracy to possess with intent to distribute morphine. The charges carry a maximum penalty of 20 years in prison and a $1,000,000 fine. Assistant U.S. Attorney P. Richard Antoine, who is handling the case, stated that according to the complaint, since January 2021, Patel, working together with others, has moved bulk quantities of morphine into the Western District of New York, then subsequently shipped the controlled substances to Canada. It is believed he uses a network of truck drivers to facilitate the shipments, including Bashir Kasozi. Patel is believed to be supplied by multiple sources of supply from outside the United States, by way of India. The investigation revealed that Patel has received bulk quantities of morphine, primarily through the John F. Kennedy Airport in New York City, which are then shipped to the Western District of New York. On August 23, 2024, 62 packages were delivered and transferred to defendant Kasozi. A few hours later, Kasozi was arrested by Customs and Border Protection Officers after the 62 packages were discovered at the Lewiston Port of Entry. The criminal complaint is the result of an investigation by Customs and Border Protection, under the direction of Director of Field Operations Rose Brophy, and Homeland Security Investigations, under the direction of Special Agent-in-Charge Matthew Scarpino. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty. # # # #