title: U.S. Attorney and FBI Announce Charges Against Two Zuni Men for Firearm Assault on Four Victims

component: Federal Bureau of Investigation (FBI)

body_text: ALBUQUERQUE – Two Zuni men were charged by indictment with multiple federal firearms offenses for assaulting 4 victims. Kamron Kallestewa , 23, and Kaden Panteah , 18, enrolled members of the Pueblo of Zuni, appeared before a federal judge and will remain in custody pending trial, which has not been scheduled. According to the indictment, on April 8, 2023, Kallestewa and Panteah assaulted John Doe 1, John Doe 2, Jane Doe 1 and Jane Doe 2 with a firearm with the intent to do bodily harm. If convicted of the current charges, Kallestewa and Panteah face up to 10 years in prison. U.S. Attorney Alexander M.M. Uballez, and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, made the announcement today. The Gallup Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from the Zuni Police Department. Assistant United States Attorney Mia Ulibarri-Rubin is prosecuting the case. View the Indictment An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. # # #


title: Member of Tulalip Tribes pleads guilty to voluntary manslaughter, and using a firearm in a crime of violence, for fatal shooting in garage on tribal land

component: USAO - Washington, Western

body_text: Seattle – A 38-year-old member of the Tulalip Tribes pleaded guilty today in U.S. District Court in Seattle to voluntary manslaughter, and using a firearm in a crime of violence, announced U.S. Attorney Tessa M. Gorman. Abdul Qasim Ray Zahir admits that he shot and killed a friend who had been helping him work on a car in a detached garage at his home on the Tulalip reservation. Zahir says he shot the victim in the midst of a sudden quarrel over noise from the auto work. Under the terms of the plea agreement, Zahir can ask for a sentence of no less than ten years in prison and prosecutors can ask for no more than 18 years in prison. U.S. District Judge Ricardo S. Martinez scheduled sentencing for November 1, 2024. According to the plea agreement, on May 28, 2022, the victim, Zahir and others were in the detached garage, when Zahir’s cousin complained about the noise the victim was making. The victim and the cousin were arguing and as the victim walked towards Zahir’s cousin, Zahir pulled out a gun and fired three shots killing the victim. At the time of the shooting, Zahir was facing charges in King County Superior Court: attempted robbery, illegal possession of a firearm, and possession of a stolen vehicle. Under the terms of the plea agreement, Zahir will plead guilty to those charges and the state prosecutor will recommend that the sentence in state court will run concurrent to Zahir’s sentence in federal custody. Voluntary manslaughter is punishable by up to 15 years in prison. Using a firearm in a crime of violence is punishable by a mandatory minimum ten years in prison and up to life in prison. The actual sentence will be determined by Judge Martinez after considering the sentencing guidelines and other statutory factors. The judge is not bound by the recommendations of the defense and prosecution and can impose any sentence allowed by law. The case was investigated by the FBI and the Tulalip Police Department. The case is being prosecuted by Assistant United States Attorney J. Tate London. Mr. London serves as a Tribal Liaison for the U.S. Attorney’s Office, Western District of Washington.


title: Bakersfield Residents Plead Guilty to Drug Trafficking Offenses and One Pleads Guilty to a Violation of the Animal Welfare Act

component: USAO - California, Eastern

body_text: FRESNO, Calif. — Two Bakersfield residents pleaded guilty today, U.S. Attorney Phillip A. Talbert announced. Jorge Calderon-Campos, 43, pleaded guilty to conspiracy to distribute methamphetamine and heroin and also pleaded guilty to unlawful possession of animals for an animal fighting venture in violation of the Animal Welfare Act. Jose Angel Beltran-Chaidez, 68, pleaded guilty to possession with intent to distribute heroin. According to court documents, on March 30, 2021, Calderon-Campos, who goes by the name “Americano,” supplied 26 pounds of methamphetamine to co-defendants Mark Garcia, 24, of Lamont, and Alberto Gomez-Santiago, 38, a Mexican national. Between Jan. 16 and April 26, 2022, Calderon-Campos also possessed roosters for the purpose of having the roosters participate in an animal fighting venture, in and affecting interstate and foreign commerce. During a search of his residence on April 26, 2022, law enforcement officers found numerous hens and roosters, various cockfighting implements, to include razors and spurs, and six cockfighting trophies, including several with plates inscribed with “Team Amkno” (shorthand for “Team Americano”). At Calderon-Campos’s stash house, law enforcement officers found 14 hens and 77 roosters, cockfighting leashes, a cockfighting trophy, various types of syringes containing substances believed to be related to cockfighting supplements, and multiple pill bottles containing suspected cockfighting vitamins. The majority of the roosters at the property had been modified for cockfighting. On Jan. 27, 2022, Jose Beltran-Chaidez, at the direction of his brother Antonio Beltran-Chaidez, 54, a Mexican national, delivered more than 2 pounds of heroin to Calderon-Campos for distribution to Calderon-Campos’s customers. However, when Calderon-Campos was unable to sell the drug, Beltran retrieved it from Calderon-Campos and was in possession of the heroin when stopped by a CHP officer for a traffic violation. U.S. District Judge Jennifer L. Thurston is scheduled to sentence Calderon-Campos on Oct. 21, 2024, and Jose Beltran-Chaidez on Nov. 4, 2024. For the drug offenses, they face a mandatory statutory minimum penalty of 10 years and a maximum statutory penalty of life in prison, along with a $10 million fine. Calderon-Campos faces up to five years in prison for the Animal Welfare Act violation, a $250,000 fine, and forfeiture of the roosters and hens used to breed fighting roosters. The actual sentences, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. Antonio Beltran-Chaidez previously entered a guilty plea and is scheduled for sentencing on Aug. 26, 2024. Gomez-Santiago pleaded guilty and was sentenced to four years and nine months in prison. The two remaining co-defendants have requested a jury trial, which is set for Jan. 28, 2025. The charges against them are only allegations; they are presumed innocent until and unless proven guilty beyond a reasonable doubt. This case is the product of an investigation by Homeland Security Investigations and the Drug Enforcement Administration, with assistance from the U.S. Department of Agriculture Office of Inspector General, the U.S. Marshals Service, the U.S. Customs and Border Protection, the U.S. Secret Service, the Bureau of Land Management, the Kern County High Intensity Drug Trafficking Area Task Force, the California Highway Patrol, the California Department of Corrections and Rehabilitation, the Kern County Sheriff's Office, the Kern County Probation Department, and the Bakersfield Police Department. Assistant U.S. Attorney Karen Escobar is prosecuting the case. The case was investigated under the Organized Crime Drug Enforcement Task Forces (OCDETF). OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. For more information about OCDETF, please visit Justice.gov/OCDETF .


title: Texas Man Sentenced To 46 Months For Illegally Possessing A Firearm And Ammunition

component: USAO - Alabama, Southern

body_text: MOBILE, AL – Hunter Bixler, a Texas man, has been sentenced to 46 months in federal prison for possessing a firearm and ammunition as a previously convicted felon. The sentence was imposed by United States District Judge Kristi K. DuBose. According to court documents, in December 2023, Bixler was pulled over for a traffic violation by a deputy with the Mobile County Sheriff’s Office. Bixler had previously been convicted of two felonies in Texas and was the subject of outstanding warrants active in Texas. When asked for a driver’s license, Bixler did not provide one and instead provided the deputy with a false name and incorrect personal identifiers. While the first deputy continued to investigate the traffic violation and Bixler’s identity, another deputy arrived to provide assistance. The deputies observed that Bixler was attempting to conceal a firearm under his leg. Bixler bladed his body towards the passenger, then abruptly turned back to the first deputy, who was at the driver side window. Fearing for his personal safety and that he was about to be fired upon by Bixler, the deputy at the driver side window discharged his service weapon and hit Bixler in the hand. Bixler was taken into custody and transported to the hospital to receive treatment for his hand. While in the hospital, the Defendant attempted to escape from the custody of the Mobile County Sheriff’s Office and was quickly re-apprehended. An Escape in the First Degree charge is pending before the Mobile County Grand Jury based on Bixler’s actions at the hospital. At sentencing, Judge DuBose imposed a 46-month sentence of incarceration and a three-year term of supervised release upon Bixler’s discharge from prison. During his term of supervised release, Bixler will be subject to substance abuse testing and treatment as well has mental health treatment. The Mobile County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated the case. Assistant United States Attorney Beth Stepan prosecuted the case on behalf of the United States. 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: Armed Robberies of a Convenience Store and a Fast-Food Restaurant Earn District Man a 90-Month Federal Prison Sentence

body_text: WASHINGTON – Damion Byrd, 21, of Washington D.C., was sentenced today to 90 months in prison for the armed robberies of two commercial businesses – a convenience store and a fast-food restaurant – in December 2022, announced U.S. Attorney Matthew M. Graves, FBI Special Agent in Charge David J. Scott of the Washington Field Office Criminal and Cyber Division, and Chief Pamela A. Smith of the Metropolitan Police Department (MPD). Byrd pleaded guilty to two counts of interference with interstate commerce by robbery (also known as a Hobbs Act robbery) on December 20, 2023, in U.S. District Court in the District of Columbia. In addition to the prison term, District Court Judge Tanya S. Chutkan ordered Byrd to serve three years of supervised release. According to court documents, on December 13, 2022, at 11:41 p.m. Byrd entered a convenience store on the 2300 block of Rhode Island Ave., NE, and asked an employee for juice. The employee told Byrd that the juice was in the refrigerator. Byrd retrieved a bottle of water and walked towards the counter where he tossed a $1 bill. Byrd then pointed a firearm at the employee and stated, “I need the money all the money you have.” The employee emptied the register and handed over the cash. An hour later, on December 14, 2022, at 12:43 a.m., Byrd drove a silver-colored sedan to the drive-thru window of a fast-food restaurant on the 3900 block of Minnesota Ave., NE. Byrd exited the vehicle, pointed a firearm at a cashier, and said, “Open the register and I won’t shoot.” The cashier ran away. Byrd reached in the window, grabbed the cash register, and fled in the vehicle. Byrd was arrested in the District on January 11, 2023, and has been detained since. This case was investigated by MPD officers and FBI agents who collaborated as members of MPD's Violent Crime Suppression Unit and FBI's Washington Field Office's Violent Crimes Task Force. This case is being prosecuted by Assistant U.S. Attorney Shehzad Akhtar of the U.S. Attorney’s Office for the District of Columbia. Paralegal Karla Nunez provided valuable assistance. 23cr0054


title: Two Defendants Convicted at Trial on All Counts in Fraudulent Check Scheme Targeting Pittsburgh-Area Businesses

component: USAO - Pennsylvania, Western

body_text: PITTSBURGH, Pa. – A federal jury in Pittsburgh convicted Rodney Blake, 39, of Baltimore, Maryland, and Robert Morrisey Jr., 32, of Pittsburgh, Pennsylvania, on one count of conspiracy to commit bank fraud and multiple counts of possessing forged securities in federal court in Pittsburgh, United States Attorney Eric G. Olshan announced today. According to evidence introduced during the four-day trial, from March 2019 to March 2020 and again from June 2021 to April 2022, the defendants orchestrated a fraudulent check scheme in which they and their conspirators stole mail to obtain valid business checks, which were then used to create large numbers of forged checks drawing on the businesses’ bank accounts. The fraudulent checks were made payable to individuals—many of whom were homeless or struggling with addiction—who had been recruited by Blake and Morrisey to cash the checks in exchange for a small share of the proceeds. At trial, the government introduced evidence concerning 115 fraudulent checks with a combined value of more than $225,000, drawn on the bank accounts of over 20 Pittsburgh-area businesses and organizations. “Robert Morrisey Jr. and Rodney Blake used people addicted to drugs and otherwise living on the margins to cash hundreds of thousands of dollars in counterfeit checks drawn on the business accounts of more than 20 victims,” stated U.S. Attorney Olshan. “This prosecution and the jury’s verdict brought the defendants out of the shadows, shining a light on their conduct and holding them accountable for a brazen fraud scheme. Businesses in this district should be able to mail checks without fear that this simple act will lead to financial ruin, and this office and our law enforcement partners remain committed to ensuring that they can.” Lesley Allison, Inspector in Charge of the Pittsburgh Division of the United States Postal Inspection Service, said: “As a primary focus of our mission, Postal Inspectors worked aggressively on this case to track down and identify the subjects involved with stealing mail and committing fraud. It’s our job to protect the sanctity of the mail and ensure the public’s trust in using it. I commend the collaborative efforts of all the agencies involved to bring these individuals to justice.” “The investigation of Rodney Blake and Robert Morrisey Jr. highlights Homeland Security Investigations’ focus on dismantling financial fraud networks. Together with our partner agencies, we have successfully removed two predators who preyed on business owners and struggling citizens alike,” said Acting Special Agent in Charge of HSI Philadelphia Nathan R Abel. “This investigation and prosecution is a testament to the power of interagency cooperation and the strength of our partnership with the prosecutors of the U.S. Attorney’s Office for the Western District of Pennsylvania.” Conspiracy to commit bank fraud is punishable by a maximum sentence of 30 years in prison, a fine of $1,000,000, or both. Possession of a forged security is punishable by a maximum sentence of 10 years in prison, a fine of $250,000, 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 defendants. Assistant United States Attorneys Jeffrey R. Bengel and William B. Guappone prosecuted this case on behalf of the government. The United States Postal Inspection Service, Homeland Security Investigations, United States Secret Service, and Richland Township Police Department conducted the investigation leading to the convictions in this case.


title: Coeburn Man Sentenced to 20 Years For Possessing Firearms, Silencers

component: USAO - Virginia, Western

body_text: ABINGDON, Va. – A Coeburn, Virginia man, who a jury convicted of conspiring with others to distribute more than 500 grams of methamphetamine in addition to possessing a firearm in furtherance of a drug trafficking crime, was sentenced today to 20 years in federal prison. Earlier this year, a jury convicted Rodney Allen Pickett, 51, of one count of conspiracy to distribute 500 grams or more of methamphetamine, three counts of distribution of methamphetamine, one count of possession with the intent to distribute methamphetamine, one count of possession of a firearm and ammunition after having been convicted of a felony, one count of possession of a firearm in furtherance of a drug trafficking crime, and one count of possession of firearm silencers. At trial, witnesses testified that Pickett bought multiple pounds of methamphetamine weekly, which he then sold to others for thousands of dollars. During a search of Pickett’s home, law enforcement officers found multiple firearms, silencers, magazines, and hundreds of rounds of ammunition, along with over 500 grams of methamphetamine. Additionally, a drill press witnesses testified was used for making and altering firearms was found in Pickett’s kitchen area. United States Attorney Christopher R. Kavanaugh of the Western District of Virginia and Special Agent in Charge Craig B. Kailimai of the Washington Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives made the announcement. The Southwest Virginia Drug Task Force, the Coeburn Police Department, the Wise County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated the case. Assistant U.S. Attorneys Danielle Stone and Lena Busscher are prosecuting the case.


title: Hughes County Resident Pleads Guilty To Federal Firearm Crime

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

body_text: MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Lucas James Mitchell, age 36, of Lamar, Oklahoma, entered a plea of guilty to one count of Felon in Possession of Ammunition. The Indictment alleged that on November 25, 2023, Mitchell was found in possession of a firearm and 24 rounds of ammunition after having been previously convicted of a crime punishable by more than one year imprisonment. The charges arose from an investigation by the Muscogee Nation Lighthorse Police Department and the Federal Bureau of Alcohol, Tobacco, Firearms and Explosives. The Honorable Jason L. Robertson, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, accepted the plea and ordered the completion of a presentence investigation report. Hughes was remanded into the custody of the United States Marshal Service pending sentencing. Assistant United States Attorney Michael E. Robinson represented the United States.


title: Vian Resident Sentenced For Illegally Possessing Firearm And Ammunition

body_text: MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Jonathan Colby Williams, age 47, of Vian, Oklahoma, was sentenced to 24 months in prison for possessing a firearm and ammunition after a felony conviction. The charges arose from an investigation by the Sequoyah County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. On July 26, 2023, Williams pleaded guilty to the crime. On October 28, 2022, Williams was found in possession of a firearm and ammunition after having been previously convicted of a felony offense punishable by more than one year and knowing of the conviction. This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. The Honorable John F. Heil, III, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, presided over the hearing. Williams will remain in the custody of the U.S. Marshal pending transportation to a designated United States Bureau of Prisons facility to serve a non-paroleable sentence of incarceration. Assistant United States Attorney Kevin Gross represented the United States.


title: Montenegrin Citizen Extradited from Italy to Face Maritime Narcotrafficking Charges

component: USAO - New York, Eastern

body_text: Milos Radonjic, a citizen of Montenegro, also known as “Pirate of the Unknown,” was extradited yesterday to the Eastern District of New York from Italy. Radonjic, who is charged in a superseding indictment with conspiracy and attempt to violate the Maritime Drug Law Enforcement Act, had previously been arrested in Italy on October 6, 2023 pursuant to a provisional arrest warrant, after entering the country to compete in an international yacht race in which he was to captain a racing yacht. Radonjic will be arraigned in federal court in Brooklyn on Monday, July 29, 2024, before United States Magistrate Judge Cheryl L. Pollak. Breon Peace, United States Attorney for the Eastern District of New York, Ivan J. Arvelo, Special Agent in Charge, U.S. Department of Homeland Security, Homeland Security Investigations (HSI), New York, and David J. Scott, Special Agent in Charge, Federal Bureau of Investigation (FBI), Washington Field Office Criminal and Cyber Division, announced the extradition. “This arrest and successful extradition is a lesson that the high seas are not a no-man’s land for the rule of law, and that we are committed to bringing those who violate it to justice,” stated United States Attorney Peace. “Working together with our law enforcement partners and allies around the world, this Office will continue to pursue narcotraffickers who seek to corrupt the critical infrastructure of global shipping to transport their poisonous cargo to our communities.” Mr. Peace expressed his appreciation to the United States Marshals Service, the United States Department of State, and Italian law enforcement and prosecutorial authorities, including the Ministry of Justice. The Justice Department’s Office of International Affairs provided valuable assistance with securing the arrest and extradition of Radonjic. HSI New York Special Agent in Charge Ivan J. Arvelo said: “The defendant’s alleged efforts to utilize the open ocean to transport tons of cocaine were no match for the versatile investigative capabilities of HSI and our law enforcement partners. HSI New York’s El Dorado Task Force is committed to leveraging our international footprint to protect the innocent public – at home, abroad, and in whatever capacity possible. We will relentlessly pursue transnational criminal organizations and their efforts to flout the laws vital to ensuring our communities’ safety and wellbeing.” “Radonjic and his co-conspirators allegedly transported tons of cocaine across the world using commercial cargo vessels," stated FBI Special Agent in Charge Scott. “His extradition is a testament to global multiagency efforts to disrupt transnational criminal organizations who traffic drugs by air, land, or sea.” According to the indictment and court filings, in 2020, Radonjic was a high-ranking member of a large-scale transnational criminal organization that trafficked tons of cocaine across the world using commercial cargo vessels traversing the high seas. Radonjic communicated and coordinated with multiple co-conspirators to arrange multi-ton shipments of cocaine from South America to the Balkans and elsewhere. Radonjic allegedly organized three separate attempts, with the assistance of a corrupt crew member on a commercial cargo vessel, to load a container ship with more than 2,500 kilograms of cocaine in Ecuador and off the coast of Colombia. The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proved guilty. If convicted, the defendant faces a mandatory minimum of 10 years’ imprisonment and up to life in prison. The extradition of Radonjic is the result 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. The government’s case is being handled by the Office’s International Narcotics and Money Laundering Section. Assistant United States Attorneys Nomi D. Berenson and Robert M. Pollack are in charge of the prosecution, with assistance from Paralegal Specialist Samuel Ronchetti. The Defendant : MILOS RADONJIC (also known as “Pirate of the Unknown”) Age: 34 Montenegro E.D.N.Y. Docket No. 23-CR-257 (S-1) (ARR)


title: Justice Department and Federal Trade Commission to Host First Public Strike Force on Unfair and Illegal Pricing Meeting

component: Antitrust Division

body_text: The Justice Department and the Federal Trade Commission (FTC) will virtually cohost the first public meeting of the Strike Force on Unfair and Illegal Pricing (Strike Force) on Thursday, Aug. 1, to discuss Strike Force enforcement actions taken to lower prices for Americans. The meeting will convene with an open-press session with remarks by Acting Associate Attorney General Benjamin C. Mizer, Assistant Attorney General Jonathan Kanter of the Antitrust Division, Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Civil Division and FTC Chair Lina M. Khan. Senior officials from other agencies will then offer remarks as well. The remainder of the meeting will move to a closed-door, private discussion of enforcement-related matters. The Strike Force meeting’s open session will begin at 3:30 p.m. ET. The agenda for the public portion of the event will be posted on the FTC’s website prior to the event. A link to view the open virtual meeting will be posted on the FTC’s website the day of the event. In March, at the sixth meeting of the White House Competition Council, President Biden announced the launch of the Strike Force to strengthen interagency efforts to root out and stop illegal corporate behavior that hikes prices on American families through anti-competitive, unfair, deceptive or fraudulent business practices. The Strike Force’s membership also includes the Department of Agriculture, Department of Health and Human Services, Department of Transportation, Securities and Exchange Commission, Federal Communications Commission and the Consumer Financial Protection Bureau.


title: Minnesota Man Sentenced to 6 Years for Fentanyl Trafficking

component: USAO - Wisconsin, Western

body_text: MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Yoshi R. Walker, 26, New Brighton, Minnesota, was sentenced yesterday by Chief U.S. District Judge James D. Peterson to 6 years in federal prison for attempting to distribute 40 grams or more of fentanyl. The prison term will be followed by 3 years of supervised release. Walker pleaded guilty to this charge on April 12, 2024. The government’s investigation revealed a large-scale drug trafficking organization that was responsible for bringing over 4 kilograms of fentanyl pills into Madison from Arizona. Law enforcement began investigating the organization in January 2022, following the seizure of two mail packages that each contained one kilogram of fentanyl pills (almost 20,000 pills in total). The packages had been mailed by the same individual in Arizona to addresses in Madison. Between March and October 2022, undercover officers purchased fentanyl pills from members of the organization on twenty-three occasions in the Madison area. In early October, Walker was identified as an out of state source of fentanyl pills for the Madison-based organization. On October 18, 2022, as part of the larger investigation, law enforcement agents intercepted a package mailed from Arizona to an address in Madison and obtained a search warrant to open the package. U.S. Postal inspectors found 1.75 kilograms of fentanyl pills (almost 16,000 pills) inside. Investigators identified Walker as the individual who had mailed the package from Arizona the day before. After the package was intercepted, Walker spoke with Lloyd McKire-Bennett, the leader of the Madison organization, about the lost drug shipment. At sentencing, Judge Peterson highlighted that the crime was very serious as it involved a large quantity of a very dangerous drug, fentanyl. He said that Walker was a supplier to the drug organization, making fentanyl available for them to distribute. Three co-defendants were previously sentenced by Judge Peterson for their roles in the fentanyl pill trafficking organization. Dejon C. Glover was sentenced on May 16, 2024, to 4 ½ years in federal prison for attempting to possess fentanyl intended for distribution. Lloyd M. McKire-Bennett was sentenced on May 17, 2024, to more than 13 ½ years in federal prison for conspiring to distribute 400 grams or more of fentanyl and possessing firearms and ammunition as a felon. Deshawn P. Davis was sentenced on May 22, 2024, to 5 ½ years in federal prison for conspiring to distribute fentanyl. Three others were charged in connection with this trafficking organization: Jessica E. Leyvas, Dantrell T. Stevenson, and Christopher S. Wilson. Leyvas and Wilson have both pleaded guilty. Wilson is scheduled to be sentenced on July 29, 2024, and Leyvas’ sentencing hearing is yet to be scheduled. Stevenson’s case is scheduled for trial, and he is presumed innocent unless and until proven guilty. The charge against Walker is the result of an investigation conducted by the U.S. Postal Inspection Service, Drug Enforcement Administration, Internal Revenue Service, Bureau of Alcohol, Tobacco, Firearms and Explosives, Wisconsin Department of Justice Division of Criminal Investigation, and the Dane County Narcotics Task Force. The investigation was conducted and funded by the Organized Crime Drug Enforcement Task Force (OCDETF), a multi-agency task force that coordinates long-term narcotics trafficking investigations. Assistant U.S. Attorney Steven P. Anderson prosecuted this case.


title: Activist Short Seller Charged for $16M Stock Market Manipulation Scheme

component: Criminal Division

body_text: A federal grand jury in the Central District of California returned an indictment yesterday charging a prominent activist short seller with multiple counts of securities fraud for a long-running market manipulation scheme reaping profits of at least $16 million. According to the indictment, Andrew Left, 54, formerly of Beverly Hills, California, and now a resident of Boca Raton, Florida, was a securities analyst, trader, and frequent guest commentator on cable news channels such as CNBC, Fox Business, and Bloomberg Television. Left conducted business under the name “Citron Research” (Citron), an online moniker he created as a vehicle for publishing investment recommendations. Citron’s online presence included a website and a social media account on X, formerly known as Twitter. As alleged in the indictment, Left commented on publicly traded companies, asserting that the market incorrectly valued a company’s stock and advocating that the current price was too high or too low. Left’s recommendations often included an explicit or implicit representation about Citron’s trading position—which created the false pretense that Left’s economic incentives aligned with his public recommendation—and a “target price,” which Left represented as his valuation of the company’s stock. Sometimes, the commentary represented Left’s own work. Other times, Left disseminated the commentary of third parties as his own. The commentary routinely included sensationalized headlines and exaggerated language to maximize the reaction it would get from the stock market. As alleged, Left knowingly exploited his ability to move stock prices by targeting stocks popular with retail investors and posting recommendations on social media to manipulate the market and make fast, easy money. As further alleged in the indictment, in the leadup to publication of Citron’s commentary, Left established long or short positions in the public company on which he was commenting in his trading accounts and prepared to quickly close those positions post-publication and take profits on the short-term price movement caused by his commentary. Left allegedly used his advance knowledge and control over the timing of a market-moving event to build his positions using inexpensive, short-dated options contracts that expired from the same day that he published his commentary to within five days. Left also allegedly submitted limit orders, often prior to publication of his commentary, to close his positions as soon as the company’s shares reached a certain price and at prices vastly different from the target prices that Left recommended to the public. While Left made false representations to the public to bolster his credibility, behind the scenes, Left allegedly took contrary trading positions to reap quick profits off the stocks he either promoted or pilloried through Citron. To further the scheme, Left allegedly advanced the false pretense that his investment recommendations were credible because he was independent and free from any financial conflicts of interest. However, Left allegedly concealed Citron’s financial relationships with a hedge fund by fabricating invoices, wiring payments through a third party, and making false and misleading statements to the public about Citron’s relationship with hedge funds. In addition, Left allegedly lied to law enforcement, stating that Citron “never” exchanged compensation with a hedge fund or coordinated trading with a hedge fund in advance of the issuance of its commentary. Through his publishing of research reports, Left gained influence and a public platform on social media and through regular appearances on podcasts and cable news programs. Left allegedly furthered his scheme by misrepresenting his trading positions during media appearances. For example, after denouncing one company as a “fraud” on CNBC’s “Fast Money,” Left allegedly falsely claimed to have covered only a “small size” of his position in the company’s stock when, earlier that same day, he allegedly closed out more than sixty percent of his position. Left is charged with one count of engaging in a securities fraud scheme, 17 counts of securities fraud, and one count of making false statements to federal investigators. If convicted, he faces a maximum penalty of 25 years in prison on the securities fraud scheme count, 20 years in prison on each securities fraud count, and five years in prison on the false statements count. Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; U.S. Attorney Martin Estrada for the Central District of California; Executive Assistant Director Michael A. Nordwall of the FBI’s Criminal, Cyber, Response, and Services Branch; Assistant Director in Charge Akil Davis of the FBI Los Angeles Field Office; and Inspector in Charge Eric Shen of the U.S. Postal Inspection Service (USPIS) Criminal Investigations Group made the announcement. The FBI Los Angeles Field Office and USPIS are investigating the case. Trial Attorneys Lauren Archer and Matthew Reilly of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Brett Sagel and Alexander Schwab for the Central District of California are prosecuting the case. The Fraud Section uses the Victim Notification System (VNS) to provide victims with case information and updates related to this case. Victims with questions may contact the Fraud Section’s Victim Assistance Unit by calling the Victim Assistance phone line at 1-888-549-3945 or by emailing victimassistance.fraud@usdoj.gov . To learn more about victims’ rights, please visit www.justice.gov/criminal-vns/victim-rights-derechos-de-las-v-ctimas . An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.


title: Analyst Indicted for Alleged Scheme to Manipulate Stock Market via Media Campaigns Then Trading Contrary to His Public Positions

component: USAO - California, Central

body_text: INDICTMENT LOS ANGELES – A stock analyst and frequent guest on business television news channels has been charged in a 19-count indictment alleging he used his public platform to illicitly profit by manipulating stock market activity and trading contrary to the position he presented to the public, the Justice Department announced today. Andrew Left, 54, formerly of Beverly Hills but who now resides in Boca Raton, Florida, is charged with one count of engaging in a securities fraud scheme, 17 counts of securities fraud, and one count of making false statements to federal investigators. Left is expected to be arraigned in the coming weeks in United States District Court in downtown Los Angeles. “This defendant allegedly used his platform as a securities commentator to manipulate the markets and enrich himself in the process,” said United States Attorney Martin Estrada. “The integrity of our securities markets is essential to the health of our financial system, and those who undermine that integrity imperil the savings of hard-working people. My office’s Corporate and Securities Fraud Strike Force will continue to protect the public by rooting out malfeasance by corporate insiders who believe they are above the law.” “Mr. Left’s presence on financial television networks and his significant online following provided him with a credible platform to allegedly disguise his intentions and manipulate the investing public for personal gain,” said Akil Davis, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “The FBI and our partners at the SEC and the U.S. Attorney’s Office are committed to holding accountable individuals who manipulate stocks for personal benefit at the expense of others.” “Mr. Left allegedly used his influence and platform to manipulate the market for his own gain, while lying to investors and the public to maintain his clout in front of his viewing audience and unsuspecting followers,” said Inspector in Charge Eric Shen, Criminal Investigations Group, United States Postal Inspection Service. “Postal Inspectors believe the market should be fair and equal for all investors, based on truth, and not fiction; when it is not, we will spare no resource to bring those to justice who violate the public trust placed in advisors in the financial field.” According to the indictment returned on Thursday, Left is a securities analyst, trader, and frequent guest commentator on business cable news channels such as CNBC, Fox Business, and Bloomberg Television. He also conducted business under the name “Citron Research,” an online moniker he created as a vehicle for publishing investment recommendations. Citron’s online presence included a website and a social media account on X, formerly known as Twitter. Using Citron’s online platform, Left commented on publicly traded companies and asserted that the market incorrectly valued the companies’ stock, advocating that the current price was too high or too low. Left’s recommendations often included an explicit or implicit representation about Citron’s trading position and a “target price,” which he represented as his own view of the security’s true future value. As alleged in the indictment, Left used his social media following and public platform to earn at least $16 million in quick profits by fraudulently manipulating the stock market from at least March 2018 to October 2023. Knowing that Citron’s reputation with investors had the power to move markets, Left allegedly selected a publicly traded company about which he intended to publish commentary with the intention of manipulating its share price. Left prepared commentary about the company for dissemination through Citron. Sometimes, the commentary represented Left’s own work. Other times, Left disseminated as his own the commentary of third parties. The commentary routinely included sensationalized headlines and inflammatory language to maximize the immediate impact their publication would have on the stock market. In the leadup to publication of Citron’s commentary, Left allegedly established long or short positions in a company in his trading accounts, so he profited by taking advantage of the intended short-term movement in the company’s share price caused by his commentary. To exploit his advance knowledge of the timing and subject of the forthcoming commentary on the company, Left allegedly often built his positions using inexpensive, short-dated options contracts that expired the same day that he published his commentary. According to the indictment, he also submitted limit orders to close his positions as soon as the company’s shares reached a certain price – often at prices vastly different from the target prices Citron’s commentary touted. Though Left represented to the public that his recommendations were to be trusted, behind the scenes, Left allegedly took contrary trading positions to reap quick profits off the stocks he either promoted or pilloried through Citron. To maintain the illusion of Citron’s independence and the credibility of its commentary, Left allegedly concealed Citron’s financial relationships with hedge funds. According to the indictment, for example, Left lied to law enforcement that Citron “never” exchanged compensation with a hedge fund or coordinated trading with a hedge fund in advance of the issuance of its commentary. For example, in November 2018, Left allegedly wrote a portfolio manager about Nvidia Corp., a publicly traded technology company based in Santa Clara, California. In the message, Left wrote, “Do you want to make some fast money[.] Put together a thesis why nvda is oversold . . . We can destroy it . . . Just read the analyst notes from this past quarter and assemble the best of the ideas.” Later that morning, Left took financial positions in Nvidia, including short-dated call options that expired three days later. Short-dated options can offer quick profits if a stock suddenly moves in the narrow timeframe before expiration. Left then promoted Nvidia as a favorable investment on Citron’s Twitter account, stating, “Citron buys $NVDA. This is the first time in 2 years stock offers an appealing risk-reward to investors . . . We see $165 before we see $120.” At the time, Nvidia’s stock was trading at approximately $143.64. The tweet was reported on by major media outlets. Despite his representation that he expected Nvidia’s share price to rise to $165, less than two hours after announcing “Citron buys $NVDA,” Left sold all his pre-tweet positions Nvidia was trading within a range of approximately $150 – $151, for a profit of at least than $960,000. Nvidia closed at a high of $154 on the day of Left’s tweet and fell to $144 the next day. According to the indictment, Left also furthered his scheme by misrepresented his trading positions during public appearances on news programs. After denouncing one company as a “fraud” on CNBC’s “Fast Money,” for example, Left allegedly falsely claimed to have covered only a “small size” of his position in the company’s stock when, earlier that same day, he had already closed out the majority of his position following the publication of commentary through Citron. An indictment is merely an allegation, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law. If convicted, Left would face a statutory maximum sentence of 25 years in federal prison for the securities fraud scheme count, up to 20 years in federal prison for each count of securities fraud, and up to five years in federal prison for the false statements count. The FBI and the United States Postal Inspection Service are investigating this matter. Assistant United States Attorneys Alexander B. Schwab and Brett A. Sagel of the Corporate and Securities Fraud Strike Force, and Trial Attorneys Lauren Archer and Matthew Reilly of the Justice Department’s Criminal Division’s Fraud Section are prosecuting this case. The Justice Department's Criminal Division's Fraud Section uses the Victim Notification System (VNS) to provide victims with case information and updates related to this case. Victims with questions may contact the Fraud Section’s Victim Assistance Unit by calling the Victim Assistance phone line at 1-888-549-3945 or by emailing victimassistance.fraud@usdoj.gov . To learn more about victims’ rights, please visit www.justice.gov/criminal-vns/victim-rights-derechos-de-las-v-ctimas .


title: Kansas Man Sentenced to 235 Months in Federal Prison for Transportation of Child Pornography

body_text: DES MOINES, Iowa – A Kansas man was sentenced yesterday to 235 months in federal prison for transportation of child pornography. According to public documents and evidence presented at sentencing, Derek Levi Hendrickson, 33, transported three internet capable computer devices across state lines in September 2022 when he moved to Waukee, Iowa. Those devices – two cell phones and a laptop computer – contained thousands of images and videos of child pornography. At the time of his offense, Hendrickson was a registered sex offender due to a 2015 Kansas state conviction for possession of child pornography. After completing his term of imprisonment, Hendrickson will be required to serve five years of supervised release. There is no parole in the federal system. Hendrickson was also ordered to pay $38,000 in restitution. United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. This case was investigated by the Iowa Internet Crimes Against Children Task Force, the FBI Human Trafficking and Child Exploitation Task Force, the Florida Department of Law Enforcement, and the Nebraska State Patrol. 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, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc .


title: BARBADOS FIRST IN CARIBBEAN TO IMPLEMENT PROJECT TERMINUS SOLUTIONS, BOOSTING SECURITY IN THE REGION

component: Interpol Washington

body_text: INTERPOL Washington's Project Terminus team, with support from the Caribbean Community (CARICOM) Implementation Agency for Crime and Security (IMPACS), has deployed advanced technology, hardware, and software solutions in Barbados, significantly boosting the island nation's capabilities to detect and intercept transnational criminals and terrorists. The newly installed software applications, the Stolen and Lost Travel Documents (SLTD) Workbench and the Stolen Motor Vehicles (SMV) Workbench, enable Barbados to seamlessly share, manage, and extend critical information from INTERPOL databases and its 196 member countries. Barbados is now CARICOM's first INTERPOL partner nation to implement these solutions. “Barbados has just made history in CARICOM by implementing these innovative solutions, significantly advancing the safety and security of its citizens, the region, and the world,” said INTERPOL Washington Acting Director Jeffrey Grimming. “More nations are recognizing the benefits of leveraging INTERPOL resources in the fight against crime and terrorism. By enabling other governments to detect threats before they reach our borders, Project Terminus simultaneously protects partner nations and communities across America.” The applications include 11,000 test records and 41 live records that have already been successfully uploaded to the INTERPOL SLTD database. INTERPOL National Central Bureau Barbados, which facilitated the partnership, also provided assistance for this initiative. Lt. Col. Michael Jones, Executive Director of CARICOM IMPACS, stated that this is just one example of the Agency partnering to secure the region’s Member States from criminal elements and regional and international terrorism threats. “CARICOM IMPACS has been working and will continue to work assiduously to secure our nation’s borders,” he added. INTERPOL Washington’s Project Terminus, a collaborative effort with the U.S. Department of State, aims to enhance INTERPOL screening and record submission by member countries by providing cutting-edge computer hardware and custom software solutions. These initiatives are designed to streamline service adoption and maximize data usability and effectiveness. Beyond its primary goal of capacity-building, Project Terminus is pivotal in supporting the broader U.S. government law enforcement mission. By fostering connections between U.S. government law enforcement agencies and partner nation entities, this project enhances the law enforcement capabilities of partner nations and helps build a safer world.


title: Defendants with Ties to White Supremacy  Sentenced in Connection with Plot to Destroy Energy Facilities

component: USAO - Rhode Island

body_text: WASHINGTON, DC – Three men were sentenced on Thursday for various conspiracy and firearms offenses in connection with a racially-motivated scheme to destroy an energy facility. Paul James Kryscuk, 38, of Boise, Idaho, was sentenced Thursday to six years and six months in prison for conspiracy to destroy an energy facility. Liam Collins, 25, of Johnston, Rhode Island, was sentenced to 10 years in prison for aiding and abetting the interstate transportation of unregistered firearms. Justin Wade Hermanson, 25, of Swansboro, North Carolina, was sentenced to one year and nine months in prison for conspiracy to manufacture firearms and ship interstate. “As part a self-described ‘modern day SS,’ these defendants conspired, prepared, and trained to attack America’s power grid in order to advance their violent white supremacist ideology,” said Attorney General Merrick B. Garland. “These sentences reflect both the depravity of their plot and the Justice Department’s commitment to holding accountable those who seek to use violence to undermine our democracy.” According to court documents and other information presented in court, Kryscuk, Collins, and Hermanson researched, discussed and reviewed at length a previous attack on the power grid by an unknown group. The group depicted in the attack used assault-style rifles in an attempt to explode a power substation. Between 2017 and 2020, Kryscuk manufactured firearms while Collins stole military gear, including magazines for assault-style rifles, and had them delivered to the other defendants. During that time, co-defendant Jordan Duncan gathered a library of information – some military-owned – regarding firearms, explosives, and nerve toxins and shared that information with Kryscuk and Collins. In October 2020, a handwritten list of approximately one dozen intersections and places in Idaho and surrounding states was discovered in Kryscuk’s possession, including intersections and places containing a transformer, substation, or other component of the power grid for the northwest United States. Previously filed charges alleged that Collins and Kryscuk were members of and made multiple posts on the “Iron March” forum, a gathering point for young neo-Nazis to organize and recruit for extremist organizations, until the forum was closed in late 2017. Collins and Kryscuk met through the forum and expanded their group using an encrypted messaging application as an alternate means of communication outside of the forum. Collins and Kryscuk recruited additional members, including Duncan, Hermanson, and co-defendant Joseph Maurino, and conducted training, including a live-fire training in the desert near Boise, Idaho. From video footage recorded by the members during the training, Kryscuk, Duncan and others produced a montage video of their training. In the video, the participants are seen firing short barrel rifles and other assault-type rifles, and the end of the propaganda video shows the four participants outfitted in Atomwaffen masks giving the “Heil Hitler” sign, beneath the image of a black sun, a Nazi symbol. The last frame bears the phrase, “Come home white man.” Prior to their arrests, Collins and Duncan had relocated to Idaho from North Carolina and Texas, respectively, to be near Kryscuk. The FBI, Naval Criminal Investigative Service, Homeland Security Investigations, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated the case. Trial Attorney John Cella of the National Security Division's Counterterrorism Section and Assistant U.S. Attorneys Barbara Kocher and Gabriel Diaz for the Eastern District of North Carolina are prosecuting the case, with assistance from Assistant United States Attorneys for the District of Idaho, District of New Jersey, Eastern District of New York, and the District of Rhode Island. ###


title: Baton Rouge Man Sentenced to 160 Months in Federal Prison for Drug Charges

component: USAO - Louisiana, Middle

body_text: United States Attorney Ronald C. Gathe, Jr. announced the sentencing of Timothy Franklin, age 40, a resident of Baton Rouge, Louisiana, by U.S. District Judge John W. deGravelles as the result of an extensive federal, state, and local investigation by the Middle District Organized Crime and Drug Enforcement Task Force (OCDETF) aimed at a drug trafficking network based and operating in East Baton Rouge Parish. Franklin, a career offender, was sentenced to 160 months imprisonment in federal prison following his conviction for four counts of distribution of heroin. The Court further sentenced Franklin to serve three years of supervised release following his term of imprisonment. According to admissions made as part of his guilty plea, on February 25, 2019, during controlled calls with a confidential source (“CS”), the CS requested to meet for a drug transaction that the two had previously discussed. The CS was fitted with an audio and video recording device and travelled to meet Franklin. When the CS arrived at the location, he entered the front passenger side of Franklin’s vehicle, provided $10,000 to Franklin, and received a plastic bag containing 112.2 grams of heroin. The CS later identified Franklin to be the lone occupant of the vehicle. Agents conducted surveillance and confirmed Franklin’s identity. On April 24, 2019, the CS participated in four controlled calls with Franklin to arrange the purchase of two ounces of heroin for $4,800. The CS requested “two” and for Franklin to “make it good.” Franklin agreed he’d make it strong and requested “24,” which referred to $2,400 per ounce. They met in Baton Rouge where the CS entered the front passenger seat of Franklin’s vehicle and tendered $4,800 to him in exchange for a plastic bag containing 53.96 grams of heroin. On May 30, 2019, the CS participated in three controlled calls with Franklin to arrange the purchase of two ounces of heroin for $5,000. Franklin arrived at the gas station, and the CS entered the front passenger seat of the vehicle and tendered $5,000 to him in exchange for a plastic bag containing 56 grams of heroin. After the three initial controlled buys, agents obtained court authorization to intercept calls and text messages occurring to and from Franklin’s cell phone. On July 30, 2019, while wiretapping the telephone, the CS placed a controlled call to Franklin asking for “3” for his customers; Franklin said he needed about two hours. Several hours later, the CS called Franklin, and they discussed the CS paying “34” for the drugs. Franklin arrived at the gas station, and the CS entered the front passenger seat of the vehicle and tendered $5,000 to him in exchange for a plastic bag containing 51.18 grams of heroin. Agents conducted aerial surveillance, which showed Franklin meet with the CS. This investigation was led by the Drug Enforcement Administration, with the assistance of Livingston Parish Sheriff’s Office, Baton Rouge Police Department, Ascension Parish Sheriff’s Office, West Baton Rouge Sheriff’s Office, and Denham Springs Police Department. This matter was prosecuted by Assistant United States Attorney Jessica Jarreau, who also serves as Deputy Chief of the Organized and Violent Crime Unit of the U.S. Attorney’s Office. This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF .


title: Former U.S. Postal Service Maintenance Manager Sentenced in Federal Court for Stealing Cash from the Mail at Indianapolis Distribution Center

component: USAO - Indiana, Southern

body_text: INDIANAPOLIS- Barry Gallon, 54, of McCordsville, has been sentenced to one year of probation after pleading guilty to theft of mail matter by officer or employee, a felony criminal offense. According to court documents, Gallon was employed as a Maintenance Manager at the United States Postal Service’s Indianapolis Processing and Distribution Center for seven years. Between August 31, 2023, and September 20, 2023, Gallon stole cash from letters, packages, bags, and mail within the mainstream at the distribution center. The total amount of money stolen by the defendant was found to be no more than $6,500. “Since the founding of our country, the U.S. Postal Service has been a vital resource for all Americans—a resource that requires that Americans are able to trust that their mail will reach its intended destination,” said Zachary A. Myers, U.S. Attorney for the Southern District of Indiana. “When public servants criminally exploit their positions for their own gain, they must be held accountable. The felony criminal conviction here will ensure that the defendant will never again be in a similar position of trust.” The United States Postal Service, Office of Inspector General investigated this case. The sentence was imposed by U.S. District Judge Matthew P. Brookman. U.S. Attorney Myers thanked Assistant U.S. Attorney Corbin D. Houston, who prosecuted this case. ###


title: Justice Department Publishes Final Rule to Improve Access to Medical Care for People with Disabilities

component: Civil Rights Division

body_text: On the 34th anniversary of the Americans with Disabilities Act (ADA), Attorney General Merrick B. Garland signed a final rule under Title II of the ADA to improve access to medical diagnostic equipment (MDE) for people with disabilities. MDE includes equipment like medical examination tables, weight scales, dental chairs, x-ray machines and mammography machines. Accessible MDE is essential for people with disabilities to have equal access to medical care. The final rule is available for review on the Federal Register’s website at www.federalregister.gov . A fact sheet that provides information about the final rule is available on ada.gov . “Thirty-four years after passage of the ADA, people with disabilities should not have to forgo needed medical care due to inaccessible medical diagnostic equipment,” said Assistant Attorney General Kristen Clarke of the Civil Rights Division. “This rule marks a significant milestone in our ongoing efforts to ensure that people with disabilities can get the medical treatment they need. Whether you are talking about access to mammograms or access to general OB/GYN services, it is critical that hospitals and doctors’ offices provide equipment that is accessible to patients with disabilities.” The rule clarifies how public entities that use MDE, such as hospitals and health care clinics operated by state or local governments, can meet their obligations to ensure accessibility under the ADA. The department has heard from many individuals with disabilities who have been denied basic, critically important health care services because medical providers lacked accessible MDE. For example, patients with disabilities reported receiving only a cursory physical examination in their wheelchair because they could not be transferred to the examination table for a full examination. Other patients reported forgoing basic preventative health care, such as dental examinations and mammograms, because providers did not have accessible MDE. The rule adopts a technical standard for accessible MDE. The rule also establishes requirements that will help make accessible examination tables and weight scales more available. This will make it easier for people with disabilities — especially people who use wheelchairs — to receive medical care. For more information on the Civil Rights Division, please visit the department’s website at www.justice.gov/crt . For inquiries regarding the ADA, please contact the department’s toll-free ADA Information Line at 800-514-0301 (voice) or 833-610-1264 (TTY) or visit the ADA website at www.ada.gov .


title: El Departamento de Justicia publicará una norma final para mejorar el acceso a la atención médica para personas con discapacidades

body_text: En el 34º aniversario de la ley de Estadounidenses con Discapacidades (ADA, por sus siglas en inglés), el Fiscal General Merrick B. Garland firmó una norma final bajo el Título II de la ADA para mejorar el acceso a equipos de diagnóstico médico (MDE, por sus siglas en inglés) para personas con discapacidades. Los MDE incluyen equipos como mesas de reconocimiento médico, básculas, sillas dentales, máquinas de rayos X y máquinas de mamografía. Es primordial que los MDE sean accesibles para que las personas con discapacidades tengan el mismo acceso a la atención médica. La norma final está disponible para su revisión en el sitio web del Registro Federal en www.federalregister.gov . Una hoja informativa que detalle la información sobre la norma final está disponible en ada.gov . “Treinta y cuatro años después de la aprobación de la ADA, las personas con discapacidades no deberían renunciar a la atención médica necesaria debido a equipos de diagnóstico médico inaccesibles”, dijo Kristen Clarke, la Fiscal General Auxiliar de la División de Derechos Civiles. “Esta regla marca un hito significativo en nuestros esfuerzos continuos para garantizar que las personas con discapacidades puedan recibir el tratamiento médico que necesitan. Ya sea el acceso a mamografías o acceso a servicios generales de obstetricia/ginecología, es fundamental que los hospitales y los consultorios médicos proporcionen equipos accesibles para los pacientes con discapacidades”. La norma aclara cómo las entidades públicas que utilizan MDE, tales como hospitales y clínicas de atención médica operadas por gobiernos estatales o locales, pueden cumplir con sus obligaciones de garantizar la accesibilidad en virtud de la ADA. El Departamento ha escuchado de muchas personas con discapacidades a las que se les han denegado servicios de atención médica básicos y de importancia crítica porque los proveedores médicos carecían de MDE accesibles. Por ejemplo, pacientes con discapacidades dijeron que habían recibido solo un reconocimiento físico superficial en su silla de ruedas porque no podían ser transferidos a la mesa de reconocimiento para un reconocimiento completo. Otros pacientes indicaron que no habían recibido atención médica preventiva básica, como exámenes dentales y mamografías, porque los proveedores no tenían MDE accesibles. La norma adopta un estándar técnico para MDE accesibles. La norma también establece requisitos que ayudarán a que las mesas de reconocimiento y las básculas sean más accesibles. Esto hará que sea más fácil para las personas con discapacidades, especialmente las que usan sillas de ruedas, recibir atención médica. Para obtener más información sobre la División de Derechos Civiles, visite el sitio web del Departamento en www.justice.gov/crt . Para consultas relacionadas con la ADA, comuníquese con la línea gratuita del Departamento para información sobre la ADA al 800-514-0301 (voz) o al 833-610-1264 (TTY) o bien visite el sitio web de la ADA en www.ada.gov .


title: New Orleans Man Sentenced for Carjacking and Gun Offenses

component: Federal Bureau of Investigation (FBI)

body_text: NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced that DEVON FRITH (“FRITH”) , age 25, a resident of New Orleans, was sentenced today by U.S. District Judge Lance M. Africk after previously pleading guilty to carjacking and gun offenses. Specifically, Judge Africk sentenced FRITH to 41 months imprisonment for Carjacking, a violation of Title 18, United States Code, Section 2119, as well as a consecutive term of 60 months imprisonment for Possession of a Firearm in Furtherance of a Crime of Violence, a violation of Title 18, United States Code, Section 924(c)(1)(A), for a total sentence of 101 months. Judge Africk ordered that FRITH be placed on supervised release for five (5) years following his release from imprisonment and pay a mandatory $100 special assessment fee for each count of conviction. Court documents reveal that on April 10, 2023, FRITH carjacked a vehicle in the Central City area of New Orleans. He was wearing a ski mask and gloves and pointed a loaded Glock Model 26 handgun at the victim while demanding the keys to her car. The handgun had an extended magazine with 17 live rounds. FRITH drove the car to the Westbank where he crashed it into a fence and another parked vehicle. He was arrested within minutes. Law enforcement successfully recovered the weapon, wrapped in the same sweatshirt he wore during the carjacking. United States Attorney Evans praised the work of the New Orleans Police Department for its quick apprehension of FRITH and the recovery of the weapon. This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. The case was investigated by Federal Bureau of Investigation- Violent Crimes Task Force, and New Orleans Police Department. Assistant United States Attorney Mark A. Miller of the Narcotics Unit handled the prosecution.


title: North Dakota Man Sentenced to 80 months in Prison for Firearms’ Trafficking Scheme

body_text: BIRMINGHAM, Ala. – A North Dakota man was sentenced Tuesday for a firearms’ trafficking scheme, announced U.S. Attorney Prim F. Escalona and Bureau of Alcohol, Tobacco, Firearms and Explosives Special Agent in Charge Marcus Watson. U.S. District Judge L. Scott Coogler sentenced Juan Antonio Duran , 29, of Watford City, North Dakota, to 80 months in prison. In January, Duran pleaded guilty to conspiracy to provide a false statement to a federal firearm licensee (FFL), false statement during the purchase of a firearm, straw purchasing a firearm, and firearms’ trafficking. In January, Jose Nicolas Flores, 31, of Tulsa, Oklahoma, pleaded guilty to conspiracy to provide a false statement to an FFL, false statement during the purchase of a firearm, straw purchasing a firearm, and firearms’ trafficking. The sentencing hearing for Flores is scheduled for August 29, 2024. According to related court documents, between May 9, 2023, and May 11, 2023, Duran conspired with Flores to purchase at least three firearms from an FFL in the Northern District of Alabama. Flores, the straw purchaser, falsified documents by specifically stating that he was the actual buyer when in fact he was buying the firearms for Duran. On May 9, 2011, after Duran and Flores traveled into Alabama, Flores attempted to purchase three Barrett .50 caliber rifles from the FFL but was told the transaction was delayed pending completion of a background check. Instead, Flores purchased the FFL’s entire stock of Barrett .50 caliber rifle magazines for $2,769 cash. The next day, the FFL called Duran and Flores and informed them that the background was complete, and the transfer could proceed. On May 11, 2023, Duran and Flores returned to the FFL from out of state. Flores recertified the document stating that he was the actual buyer and provided approximately $31,000 in cash before being detained by ATF agents. Flores told the ATF agents that he received the bulk cash from Duran for the purpose of buying firearms for Duran. Meanwhile, Duran was detained while moving their vehicle in anticipation of receiving the rifles. During a search of Duran’s property, agents found a receipt for three Barrett .50 caliber rifles purchased by another person from an FFL in Grimes, Iowa, on April 28, 2023. The purchase was made in cash for $35,843.91. The ATF investigated the case along with the Birmingham Police Department, Jefferson County Sheriff’s Office, and the Alabama Bureau of Pardons and Paroles. Homeland Security Investigations provided translation and technical support. Assistant U.S. Attorneys Daniel S. McBrayer and Brittney L. Plyler prosecuted the case.


title: Former Office of Emergency Medical Services Associate Director pleads guilty to embezzling $4 million from the Virginia Department of Health

body_text: RICHMOND, Va. – A Midlothian man pled guilty yesterday to mail fraud, federal program theft, and tax evasion in connection with a scheme to misappropriate millions of dollars from the Virginia Department of Health (VDH). According to court documents, beginning on Aug. 10, 2013, Adam Lamar Harrell, 41, was an employee of VDH and on Sept. 10, 2019, became the Associate Director of the Office of Emergency Medical Services (OEMS). As OEMS’s Associate Director, Harrell was responsible for managing Virginia’s emergency response programs, epidemiology research, and the information technology systems that Virginia’s emergency medical service providers rely on, among other responsibilities. Harrell used his position to direct payments from VDH to a company he registered and controlled, Strategic Tech Innovations, LLC. Harrell concealed his ownership of and affiliation with Strategic Tech from VDH and OEMS, and used this entity to embezzle funds from his employer through two separate means. From January 2021 through May 2023, Harrell created 15 fraudulent invoices for services and technology that Strategic Tech would purportedly provide to OEMS. Harrell set exorbitant and non-market prices for the various line items on the invoices, knowing the vast majority of those items would not be provided by Strategic Tech. Without OEMS’s knowledge or approval, Harrell would submit these fraudulent invoices to the Western Virginia EMS Council (WVEMS), a regional emergency medical services council that serves as a pass-through for OEMS payments to vendors. Each of these invoices were paid by WVEMS with OEMS funds. By directing the invoices to WVEMS instead of Accounts Payable at OEMS, Harrell circumvented the requirement that Strategic Tech be approved as a vendor to VDH and OEMS and evaded scrutiny by the Accounts Payable department. As the Associate Director of OEMS, Harrell was able to unilaterally approve the same fraudulent Strategic Tech invoices he drafted. Harrell deposited each of the checks he illegally received from WVEMS into the Strategic Tech checking account he controlled and used the funds for personal expenses, including the purchase of real estate, luxury vehicles, dozens of firearms, and jewelry. In total, Harrell received $4,337,395 in OEMS funds. On March 9, 2021, Harrell filed a joint federal income tax return with his spouse for tax year 2020. On the IRS Form Schedule C, Profit or Loss from Business, Harrell reported being the sole proprietor of Strategic Tech, reporting $193,076 in gross receipts. He falsely reported expenses for Strategic Tech of $200,340, for a net loss of $7,264, fraudulently lowering his taxable income and generating a refund of $934. Harrell then ceased reporting any income from Strategic Tech on the federal income tax returns he filed for tax years 2021, 2022, and 2023. From November 2020 through March 2024, Harrell evaded a total of $1,880,287.34 in income taxes. Harrell is scheduled to be sentenced on Nov. 20. He faces a maximum penalty of 20 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Stanley M. Meador, Special Agent in Charge of the FBI’s Richmond Field Office; and Kareem A. Carter, IRS Criminal Investigation Special Agent in Charge of the Washington D.C. Field Office, made the announcement after U.S. Magistrate Judge Summer L. Speight accepted the plea. The Virginia State Police and the Office of the State Inspector General provided significant assistance in the investigation of this case. Assistant U.S. Attorneys Thomas A. Garnett and Kashan Pathan are prosecuting the case. A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:24-cr-92.


title: Tuscaloosa Woman Pleads Guilty to COVID-19 Pandemic Fraud

body_text: BIRMINGHAM, Ala. – A Tuscaloosa County woman pleaded guilty this week to defrauding the Small Business Administration’s (SBA) Paycheck Protection Program (PPP), announced U.S. Attorney Prim F. Escalona and Federal Bureau of Investigation (FBI) Special Agent in Charge Carlton L. Peeples. Erica Lasha Prewitt , 42, of Tuscaloosa, pleaded guilty before United States District Court Judge L. Scott Coogler to theft of government funds. According to the plea agreement, in August 2020, Prewitt received a fraudulent PPP loan totaling $96,875. Prewitt made material misrepresentations on the loan application that was supported by fraudulent documentation. In September 2021, Prewitt submitted a PPP Loan Forgiveness Application in which she claimed her business employed 30 people and the full amount of the loan was spent on payroll costs. Prewitt never owned or operated a business and did not use the PPP loan funds to retain workers during the COVID-19 pandemic. Prewitt is scheduled to be sentenced on November 26, 2024. The maximum penalty for theft of government funds is 10 years in prison. FBI investigated the case. Assistant U.S. Attorney Jonathan “Jack” Harrington is prosecuting the case. Anyone with information about allegations of attempted fraud involving COVID-19 relief funds can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form .


title: Houston tax preparer pleads guilty to filing false tax returns resulting in over $100,000 in losses

component: USAO - Texas, Southern

body_text: HOUSTON – A tax preparer has admitted to aiding or assisting in the preparation of a false 2017 income tax return, announced U.S. Attorney Alamdar S. Hamdani. As part of his plea, Christopher J. Guevara admitted that from at least 2018 to 2020, he owned and operated Chris Tax Service in Houston. He admitted to often placing false Schedule A deductions, residential energy credits, and Schedule C businesses on the returns he prepared, generating larger refunds to which his clients were not entitled. He also admitted to making money through preparation fees he would make money by charging preparation fees. Guevara admitted to placing $26,857 in false business losses that were listed on the 2017 Schedule C. As a result, the tax loss to the United States on that return was approximately $13,390. Guevara took responsibility for $123,458 in losses to the IRS and has agreed to pay that amount in restitution. U.S. District Judge Alfred H. Bennett will impose sentencing Oct. 31. At that time, Guevara faces up to three years in prison and a possible $250,000 maximum fine. He was permitted to remain on bond pending sentencing. IRS Criminal Investigation conducted the investigation. Assistant U.S. Attorney Brad Gray is prosecuting the case.


title: Financial fraudster and gang member sentenced after shooting led to discovery

body_text: NORFOLK, Va. – A Portsmouth man was sentenced yesterday to four years and nine months in prison for aggravated identity theft, being a felon in possession of a firearm, and defrauding a COVID relief program. According to court documents, in May 2021, Marquell Lamont Moon, 31, who is a member of the Crips gang, fired approximately 27 rounds at a victim while the victim’s 3-year-old child was with him. At least one of the rounds struck the victim’s left hand. Law enforcement in Chesapeake later pursued Moon, who attempted to flee in a vehicle at high speed but crashed into a residence, fled the vehicle, and discarded a black backpack and other objects as he ran. Law enforcement recovered $8,275.66 and a stolen .45 semiautomatic handgun from Moon’s vehicle. Moon was previously convicted of carrying a concealed weapon, reckless driving, resisting arrest, and forging credit cards. As a previously convicted felon, Moon cannot legally possess a firearm or ammunition. Law enforcement also recovered evidence that Moon was engaged in a financial fraud scheme. Among the items recovered from Moon’s vehicle and backpack were credit and bank cards, a card embossing machine, a notebook detailing the fraudulent scheme, and correspondence with the Virginia Employment Commission (VEC). A total of 34 cards were either in another person’s name or there was no name associated with the card. There were also 28 blank debit/credit cards with no identifying information on the magnetic strip. Moon fraudulently obtained unemployment benefits that had been expanded and initiated due to the COVID-19 pandemic. Moon unlawfully obtained the personally identifiable information (PII) of 10 individuals and used that information to fraudulently apply to VEC for unemployment insurance benefits totaling $112,633. The notebook detailed the steps for committing fraudulent requests and documenting the PII of the individuals whose identities Moon used to apply for the funds. Federal agents across several states located and interviewed the PII victims and determined that they did not know Moon and had not filed for unemployment insurance in Virginia. One victim was deceased. Another victim was too apprehensive to even comply with law enforcement. In addition to applying for benefits in the victims’ names, Moon used VEC's online portal to enter weekly re-certifications attesting that the applicants were ready and willing to work during the week and actively seeking employment. One of the identity theft victims could not have been willing to work during the week and actively seeking employment because he was deceased. Another victim was not willing to work during the week and actively seeking employment because he was retired. Moon is currently incarcerated for malicious wounding. Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Craig Kailimai, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives Washington Field Division; and Derek W. Gordon, Special Agent in Charge of Homeland Security Investigations (HSI) Washington, D.C., made the announcement after sentencing by U.S. District Judge Arenda Wright Allen. Assistant U.S. Attorneys Clayton D. LaForge and Amanda L. Cheney prosecuted the case. A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:22-cr-35.


title: New Orleans Man Sentenced for Federal Drug and Weapons Violations

body_text: NEW ORLEANS, LOUISIANA – HAROLD DECLOUET , age 22, a resident of New Orleans, was sentenced on July 24, 2024 by U.S. District Judge Jane T. Milazzo to 70 months in prison, followed by 3 years of supervised release, along with a $400 mandatory special assessment fee, after previously pleading guilty to two counts of distributing cocaine base, in violation of 21 U.S.C. §§ 841(a)(1) and 841(b)(1)(C); possession with intent to distribute cocaine base, marijuana, and tramadol, in violation of 21 U.S.C. §§ 841(a)(1), 841(b)(1)(C), 841(b)(1)(D), and 841(b)(2); and possession of a firearm in furtherance of a drug trafficking crime, in violation of 18 U.S.C. § 924(c)(1)(A)(i). According to court documents, DECLOUET made two sales of cocaine base to a confidential informant for the Bureau of Alcohol, Tobacco, Firearms, and Explosives, in February of 2022. A few months later, in May of 2022, DECLOUET was arrested with cocaine base, marijuana, tramadol pills, over $1,000 in cash, and a Glock Model 19 handgun, loaded with 31 rounds of ammunition. This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. This case was investigated by the Bureau of Alcohol, Firearms, Tobacco, and Explosives and the Jefferson Parish Sheriff’s Office. It is being prosecuted by Assistant United States Attorney David Berman of the Violent Crime Unit.


title: New Orleans Man Re-Sentenced on Federal Firearm and Drug Trafficking Charges Stemming from New Orleans Hotel Shootout

body_text: NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced that CLARENCE SANTIAGO (“ SANTIAGO”) , of New Orleans, was re-sentenced by U.S. District Judge Greg G. Guidry to 280 months imprisonment for his participation in a December 28, 2020, shootout at the Jung Hotel on Canal Street. On April 5, 2022, SANTIAGO pled guilty to Counts 1, 2, 3, and 4 of the indictment, charging him with conspiracy to possess firearms in furtherance of a drug trafficking crime (Count 1); using, carrying and discharging a firearm during and in relation to a drug trafficking crime (Count 2); conspiracy to possess with the intent to distribute marijuana (Count 3); and, illegally maintaining a drug involved premises (Count 4). On March 7, 2023, Judge Guidry sentenced SANTIAGO to serve 360 months of imprisonment. SANTIAGO appealed that sentence to the United States Fifth Circuit Court of Appeals. The Court of Appeals affirmed the conviction but remanded the case to the District Court for re-sentencing. At the sentencing hearing held on July 23rd, the Government played three video tapes of the shooting that took place on the 15 th floor of the Jung Hotel. After hearing the evidence presented the hearing, Judge Guidry imposed a total sentence of 280 months imprisonment. This consisted of 160 months as to Counts 1 and 4; 60 months as to Count 3; and 120 consecutive months as to Count 2. He was also placed on supervised release for a term of 5 years, after his release from prison. The Court also imposed a mandatory special assessment fee of $100.00 per count. This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the New Orleans Police Department. This case was prosecuted by Assistant United States Attorneys Maurice Landrieu of the Narcotics Unit and Elizabeth Privitera, Chief of the Violent Crime and Gang Unit.


title: Three Individuals Sentenced for Massive $88M Business Telephone System Software License Piracy Scheme

body_text: Three individuals have been sentenced for participating in an international scheme involving the sale of tens of thousands of pirated business telephone system software licenses with a retail value of over $88 million. Raymond Bradley “Brad” Pearce, 48, of Tuttle, Oklahoma, a computer system administrator, was sentenced yesterday to four years in prison and ordered to forfeit $4 million. In June, Dusti O. Pearce, 46, also of Tuttle, was sentenced to one year and a day in prison and ordered to forfeit $4 million. In July, Jason M. Hines, 44, of Caldwell, New Jersey, was sentenced to one year and six months in prison and an additional 18 months of home confinement, and ordered to forfeit $2 million. In addition, the three defendants have agreed to pay restitution—specifically, $17 million for Brad Pearce, $10 million for Dusti Pearce, and more than $5 million for Hines. The court will hold a separate restitution hearing in a few weeks to determine the details of the restitution order. According to court documents, Brad and Dusti Pearce conspired with Hines to commit wire fraud in a scheme that involved generating and then selling unauthorized Avaya Direct International (ADI) software licenses. The ADI software licenses were used to unlock features and functionalities of a popular telephone system product called “IP Office” used by thousands of companies around the world. The ADI software licensing system has since been decommissioned. Avaya Holdings Corporation, a multinational business communications company headquartered in California, sold IP Office to many midsize and small businesses in the United States and abroad. To unlock features and functionalities of IP Office, such as voicemail or telephones, customers had to purchase software licenses generated by Avaya from an authorized Avaya distributor or reseller. Avaya used software license keys to control access to Avaya’s copyright-protected software and to ensure that only customers who paid for the software could use it. Moreover, Avaya required that each software license on an IP Office system be associated with a proprietary memory card with a unique serial number that the end user had to keep in its possession to use the licenses. Brad Pearce, a long-time customer service employee at Avaya, used his system administrator privileges to generate tens of thousands of ADI software license keys that he sold to Hines and other customers, who in turn sold them to resellers and end users around the world. The retail value of each Avaya software license ranged from under $100 to thousands of dollars. Brad Pearce also employed his system administrator privileges to hijack the accounts of former Avaya employees to generate additional ADI software license keys. Pearce concealed the fraud scheme for many years by using these privileges to alter information about the accounts, which helped hide his creation of unauthorized license keys. Dusti Pearce handled accounting for the illegal business. Hines operated Direct Business Services International (DBSI), formerly known as Dedicated Business Systems International, a New Jersey-based business communications systems provider and a de-authorized Avaya reseller. He bought ADI software license keys from Brad and Dusti Pearce and then sold them to resellers and end users around the world for significantly below the wholesale price. Hines was by far the Pearces’ largest customer and significantly influenced how the scheme operated. Hines was one of the biggest users of the ADI license system in the world. Altogether, the Pearces and Hines reaped millions of dollars from the scheme. To hide the nature and source of the money, the Pearces funneled their illegal gains through a PayPal account created under a false name to multiple bank accounts, and then transferred the money to investment and bank accounts. They also purchased large quantities of gold bullion and other valuable items. In July 2023, Hines pleaded guilty to conspiracy to commit wire fraud. In September 2023, the Pearces also pleaded guilty to conspiracy to commit wire fraud. Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; U.S. Attorney Robert J. Troester for the Western District of Oklahoma; and Acting Special Agent in Charge Jason Kaplan of the FBI Oklahoma City Field Office made the announcement. The FBI Oklahoma City Field Office investigated the case. Senior Counsel Matthew A. Lamberti of the Criminal Division’s Computer Crime and Intellectual Property Section and Senior Litigation Counsel Julia E. Barry for the Western District of Oklahoma prosecuted the case.


title: Former Fiscal Manager For The Children’s Advocacy Center Of Northeastern Pennsylvania Charged With Wire Fraud

component: USAO - Pennsylvania, Middle

body_text: SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Angela Saar, age 51, of Olyphant, Lackawanna County, Pennsylvania, was charged on July 25, 2024, in a Criminal Information with wire fraud. The Criminal Information charges that from November 2018 to June 2022, while employed as the fiscal manager for the Children’s Advocacy Center of Northeastern Pennsylvania (CAC/NEPA), Saar engaged in a scheme to defraud the CAC/NEPA. The Criminal Information alleges that Saar diverted fraudulent payments of various kinds from CAC/NEPA bank accounts into her own personal bank accounts for her personal benefit. Some of the diverted payments involved fraudulent mileage reimbursements, while others involved Saar inflating her bi-weekly paychecks by thousands of dollars. The total amount of fraudulent diversions as alleged in the criminal information is $411,940.11. The case was investigated by the Federal Bureau of Investigation (FBI) – Scranton Resident Office of the Philadelphia Division. Assistant U.S. Attorneys Michelle Olshefski and Luisa Berti prosecuted the case. The maximum penalty under federal law for this offense is 20 years in prison, a term of supervised release following imprisonment, and a maximum fine of $250,000. A sentence following a finding of guilt is imposed by the judge after consideration of the applicable federal sentencing statutes and Federal Sentencing Guidelines. Indictments are only allegations. All persons indicted are presumed to be innocent unless and until found guilty in court. # # #


title: Inmate At The Federal Schuylkill Correctional Institution Sentenced To An Additional 30 Months In Prison For Assault On A Corrections Officer

body_text: SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced that Carlos Rodriguez-Cruz, age 33, an inmate at the Federal Correctional Institution, Schuylkill, in Minersville, Pennsylvania, was sentenced on July 25, 2024, by U.S. District Court Judge Julia K. Munley, to serve an additional 30 months in prison for assaulting a federal corrections officer. According to United States Attorney Gerard M. Karam, Rodriguez-Cruz, formerly of Puerto Rico, previously pleaded guilty and admitted to assaulting a corrections officer. The charge stems from an incident on October 6, 2023, in which Rodriguez-Cruz engaged in a physical confrontation with a corrections officer and punched the officer. The investigation was conducted by the Federal Bureau of Investigation and the Bureau of Prisons Special Investigative Service. Assistant United States Attorney Robert J. O’Hara prosecuted the case. At the time of the incident at FCI Schuylkill, Rodriguez-Cruz was serving a sentence from Puerto Rico for being a convicted felon in possession of a firearm. That sentence does not expire until March 2027. The sentence imposed by Judge Munley for the charge of assault on a corrections officer will run consecutively to the sentence from Puerto Rico. # # #