title: Enel Ordered to Remove Osage Wind Farm After  More than Ten Years of Litigation

component: USAO - Oklahoma, Northern

body_text: TULSA, Okla. – U.S. District Judge Jennifer Choe-Groves of the U.S. Court of International Trade concluded 10 years of litigation by awarding monetary damages for both conversion and trespass. Further, Judge Choe-Groves ordered the Defendants to remove the wind farm from the Osage Mineral Estate and return it to its pre-trespass condition on or before December 1, 2025. “This case demonstrates our commitment to preserving and defending tribal sovereignty,” said U.S. Attorney Clint Johnson. “As Judge Choe-Groves emphasized, injury to the Osage sovereignty cannot be condoned or suffered. The Defendants disregarded cease-and-desist instructions with willful and wrongful intent.” The Osage Nation is a federally recognized Indian tribe and the Osage Reservation was originally established in 1872. In 1906, Congress enacted the Osage Act, severing the surface estate from the mineral estate in Osage County. The Osage Mineral Estate was placed in a trust for the benefit of the Osage Nation. With approval from the Secretary of Interior, the Act allowed the Osage Nation to issue leases for all oil, gas, and other minerals with specific regulations applicable to non-oil and gas mining. As trustee of the Osage Mineral Estate (OME), the United States is charged with its administration and protection, authorized to litigate on behalf of the OME to fulfill its fiduciary responsibilities of protecting its resources and maximizing economic benefit to its beneficiaries. The Osage Minerals Council (OMC) is an independent agency within the Osage Nation, established by the Osage Nation Constitution. The OMC has several responsibilities, including the negotiation of leases for the development and extraction of minerals from the OME. Beginning in 2010, Enel leased approximately 8,400 acres of surface rights in Osage County, Oklahoma to construct a wind farm (Osage Wind) ultimately completing 84 wind turbines and associate infrastructure. The excavation for 82 turbine involved explosives to create craters over 10 feet deep and 60 feet wide to install reinforced concrete foundations. Significant amounts of Osage minerals were engineered and used as backfill for, and positioned around, the wind turbine foundations. In November 2014, the United States commenced this litigation by seeking a declaratory judgment, an injunction, and monetary damages for the unauthorized mining and excavation into the Osage Mineral Estate (OME), without a lease, by Defendants Osage Wind, LLC; Enel Kansas, LLC; and Enel Green Power North America, Inc. (collectively Enel). The United States brought two declaratory judgement claims and additional claims for conversion, trespass, and continuing trespass of the OME. Judge Choe-Groves found Defendants liable for all five of these claims in December 2023. A non-jury damages trial lasted for eight days in May 2024 regarding monetary damages. As reimbursement for the lengthy prosecution of the case, the United States and the Osage Minerals Council received a substantial judgement for attorneys’ fees and costs. The case was prosecuted by Assistant U.S. Attorneys Cathryn D. McClanahan, Nolan M. Fields, IV, and attorneys from the U.S. Department of the Interior-Office of the Field Solicitor, Charles R. Babst, Jr., and Stuart P. Ashworth.


title: Spencer Man Sentenced to Eight Years in Prison for Possessing Kilograms of Counterfeit Adderall Pills Intended for Distribution

component: USAO - Massachusetts

body_text: BOSTON – A Spencer man was sentenced today for possessing over 5.2 kilograms of counterfeit Adderall pills containing methamphetamine. Jabriel Nabulsi, 30, was sentenced by U.S. District Court Judge Margaret R. Guzman to eight years in prison, to be followed by five years of supervised release. In June 2024, Nabulsi pleaded guilty to one count of possession with intent to distribute 50 grams or more of a mixture or substance containing a detectable amount of methamphetamine. After being identified as a distributor of significant quantities of counterfeit Adderall pills, law enforcement approached Nabulsi’s vehicle as he drove toward his residence in Spencer on Dec. 27, 2023. Upon noticing law enforcement, Nabulsi exited his vehicle in a neighbor’s driveway and, with a blue bag in his hand, attempted to flee on foot. Nabulsi tossed the blue bag in the driveway and was immediately apprehended. Approximately 19 individual vacuum-sealed clear plastic bags containing orange pills marked “AD/30” – with a total combined weight of approximately 5.25 kilograms – were found inside the blue bag. The substances contained in each of the plastic bags field-tested positive for methamphetamine. In addition, a single vacuum-sealed clear plastic bag containing approximately 300 grams of a white substance that field-tested positive for the presence of cocaine was also found in the blue bag. Smaller quantities of substances that field-tested positive for the presence of cocaine were recovered from Nabulsi’s vehicle. United States Attorney Joshua S. Levy; Stephen Belleau, Acting Special Agent in Charge of the Drug Enforcement Administration in New England; Colonel Geoffrey D. Noble, Superintendent of the Massachusetts State Police; and Worcester Interim Police Chief Paul Saucier made the announcement. Valuable assistance was provided by. Assistant U.S. Attorney Danial E. Bennett of the Worcester Branch Office prosecuted the case.


title: Bronx Gang Member Charged With Murdering 18-Year-Old Jayquan McKenley In Drive-By Shooting

component: USAO - New York, Southern

body_text: Edward Y. Kim, the Acting United States Attorney for the Southern District of New York; William S. Walker, the Special Agent in Charge of the New York Field Office of Homeland Security Investigations (“HSI”); and Jessica Tisch, the Commissioner of the New York City Police Department (“NYPD”), announced the unsealing of an Indictment charging PAUL JOHNSON, a/k/a “PJ Glizzy,” with racketeering conspiracy, murder in aid of racketeering, conspiracy to commit murder in aid of racketeering, and a firearms offense. The charges relate to JOHNSON’s membership in a Bronx-based street gang known as the “Original Goonz,” or “OGz.” As alleged, on February 6, 2022, JOHNSON murdered 18-year-old Jayquan McKenley. JOHNSON, who was in New York City Department of Correction custody, was transferred to federal custody earlier today and made his initial appearance in federal court in Manhattan. The case has been assigned to U.S. District Judge Victor Marrero. Acting U.S. Attorney Edward Y. Kim said: “Jayquan McKenley’s death was senseless. As alleged, Paul Johnson murdered him as part of a dispute between rival gangs. We hope that today’s charges bring some measure of comfort to McKenley’s family and make clear that this Office and our law enforcement partners will never stop investigating those who commit violence on our streets.” HSI Special Agent in Charge William S. Walker said: “ Paul Johnson's alleged ruthless murder of Jayquan McKenley sent shockwaves through our Brooklyn neighborhoods and shone a light on the level of senseless violence committed by street gangs in New York City. Today's indictment is the result of the relentless work and determination of HSI New York's Violent Gang Task Force. The streets are made safer everyday thanks to the dedication of New York's local, state, and federal law enforcement who work together to obtain justice for victims of violent crime.” According to the allegations in the Indictment unsealed today in Manhattan federal court, [1] other court documents, and statements made during court proceedings: From at least 2019 up to and including December 2024, JOHNSON was a member of the “Original Goonz,” or “OGz” street gang, which is based in the Bronx, New York. In order to fund the gang, protect its territory, and promote its standing, members of the OGz engaged in, among other things, narcotics trafficking and other acts of violence, including murder. On February 6, 2022, JOHNSON and others murdered Jayquan McKenley in a drive-by shooting in Brooklyn, New York. Jayquan McKenley was 18 years old. * * * JOHNSON, 23, of the Bronx, is charged with one count of racketeering conspiracy, which carries a maximum term of life in prison; one count of murder in aid of racketeering, which carries a mandatory minimum term of life in prison or death; one count of conspiracy to commit murder in aid of racketeering, which carries a maximum term of 10 years in prison; and one count of use, carrying, and possession of a firearm in furtherance of a crime of violence, which carries a minimum sentence of 10 years in prison to run consecutive to any other term imposed and a maximum sentence of life in prison. The minimum and maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. Mr. Kim praised the outstanding investigative work of HSI and NYPD. The case is being handled by the Office’s Violent and Organized Crime Unit. Assistant U.S. Attorney Patrick R. Moroney is in charge of the prosecution. The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty. [1] As the introductory phrase signifies, the entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.


title: Former Head of Suburban Chicago Public Library Sentenced to Two Years in Prison for Embezzling More Than $770,000

component: Federal Bureau of Investigation (FBI)

body_text: CHICAGO — The former director of the Markham, Ill. Public Library has been sentenced to two years in federal prison for embezzling more than $770,000 from the library over a decade. From 2009 to 2019, XAVIER MENZIES misappropriated approximately $770,715 from the library. Much of the money was initially received by the Markham library from the public library district in nearby Posen, Ill., which paid Markham for allowing Posen residents to access the library and use its services. Menzies opened bank accounts in the name of Markham Public Library and deposited checks made out to the library. He later withdrew the funds and used the money for personal expenses, including mortgage payments, ticket purchases, and auto repairs. Menzies concealed the scheme by routinely misrepresenting the library’s financial condition to the Markham Public Library’s Board of Trustees. As part of the fraud scheme, Menzies also increased his annual salary as library director without the approval or knowledge of the Board of Trustees and continued to receive the higher salary for approximately three years. Menzies, 52, of Glenwood, Ill., pleaded guilty earlier this year to a federal wire fraud charge. On Wednesday, U.S. District Judge Lindsay C. Jenkins imposed the prison sentence and ordered Menzies to pay $770,715 in restitution. The sentence was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, and Douglas S. DePodesta, Special Agent-in-Charge of the Chicago Field Office of the FBI. “Fraud such as this one involving the misappropriation of public funds can be difficult to detect and lucrative to the participant,” Assistant U.S. Attorney Prashant Kolluri argued in the government’s sentencing memorandum. “Greed and an arrogant belief that he would not be caught or significantly punished are the only explanations for why Menzies chose to engage in this fraud.”


title: Postal Service Supervisor Arrested on Complaint Alleging Theft of $281,000 in Checks from Mail then Deposited into Her Bank Accounts

component: USAO - California, Central

body_text: SANTA ANA, California – A United States Postal Service supervisor was arrested this morning on a federal criminal complaint alleging she stole more than 20 checks from the U.S. mail and deposited them into her accounts at multiple different banks. Joivian Tjuana Hayes, 36, of Compton, who is a supervisor at the Costa Mesa Post Office, is expected to make her initial court appearance this afternoon in United States District Court in Santa Ana. A criminal complaint filed Wednesday charges Hayes with one count of bank fraud. According to the affidavit in support of the criminal complaint, since July 2024, Hayes deposited more than 20 checks that had been stolen from the mail at the Costa Mesa Post Office into her bank accounts at various banks. Hayes allegedly deposited those checks, which had forged signatures of the payees, including one check for more than $114,000. ATM surveillance video shows Hayes making deposits of multiple stolen checks with forged signatures at ATMs in Fountain Valley, Costa Mesa, and Compton. Hayes’s scheme allegedly involved more than $281,000 in stolen checks that she deposited into her bank accounts. According to the affidavit, Hayes is also suspected of stealing tens of thousands of dollars in currency and gold coins from mail that had been processed through the Costa Mesa Post Office. Federal agents executed search warrants this morning at Hayes’s residence in Compton and of her 2023 BMW vehicle. A criminal complaint contains allegations that a defendant has committed a crime. A defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt. If convicted of the bank fraud offense alleged in the complaint, Hayes would face a statutory maximum sentence of 30 years in federal prison. The United States Postal Service Office of Inspector General investigated this matter. Assistant United States Attorney Charles E. Pell of the Orange County Office is prosecuting the case.


title: Greenbrier County Man Sentenced to Prison for Federal Gun Crime

component: USAO - West Virginia, Southern

body_text: BECKLEY, W.Va. – Wilbur Curtis Arnold Jr., 59, of White Sulphur Springs, was sentenced today to three years and 10 months in prison, to be followed by three years of supervised release, for being a felon in possession of a firearm. According to court documents and statements made in court, on April 29, 2024, law enforcement officers found a Winchester model 190 .22-caliber rifle at Arnold’s residence while arresting him on a warrant. Arnold told officers the rifle belonged to him. The rifle had been reported stolen on June 12, 2012. On June 30, 2023, Arnold brought a Rock Island Armory model 1911 .45-caliber semi-automatic handgun to a White Sulphur Springs business, where he sold the firearm for $300. Arnold presented his identification and signed a purchase agreement for the sale of the gun. Federal law prohibits a person with a prior felony conviction from possessing a firearm or ammunition. Arnold knew he was prohibited from possessing a firearm because of his prior felony conviction for possession with intent to distribute cocaine in United States District Court for the Southern District of West Virginia on March 7, 2016. Arnold has a long criminal history that also includes three convictions for domestic battery and convictions for violating a protective, battery, assault, DUI, and multiple additional controlled substance offenses. United States Attorney Will Thompson made the announcement and commended the investigative work of the Greenbrier Valley Drug and Violent Crime Task Force, which consists of members of the West Virginia State Police, the Greenbrier County Sheriff’s Department, and the Lewisburg Police Department. Chief United States District Judge Frank W. Volk imposed the sentence. Assistant United States Attorney Andrew D. Isabell prosecuted the case. This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the 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. A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 5:24-cr-61. ###


title: Apopka Man Sentenced To 12 Months For Tax Evasion

component: USAO - Florida, Middle

body_text: Orlando, FL – U.S. District Judge Wendy W. Berger has sentenced James Fabius King, a/k/a Douglas Mesadieu, to 12 months’ confinement for tax evasion, including 6 months in federal prison and 6 months of home incarceration. The court also ordered King to pay restitution in the amount of $546,479, which represents the losses to the United States as the result of King’s conduct. King entered a guilty plea on June 17, 2024. According to court documents, King earned income of $1,758,307 in 2013, for which he had federal income tax due and owed $546,479. Between 2014 and 2017, King used nominee businesses to pay personal expenses and car payments on his $151,890 Audi R8 sports car. He also transferred title of three luxury cars that he owned—an Aston Martin, Rolls Royce, and Bentley—into the name of a nominee business. King took these actions to evade the seizure of his assets to pay the tax debt. “The dishonesty exhibited by the defendant is a clear violation of the laws we all abide by,” said Ron Loecker, Special Agent in Charge of IRS-Criminal Investigation’s Tampa Field Office. “While we may not always like it, we each have a responsibility to our country and ultimately to each other. We will not ignore attempts to cheat the tax system for personal gain.” This case was investigated by the Internal Revenue Service – Criminal Investigation. It was prosecuted by Assistant United States Attorney Chauncey A. Bratt.


title: Springfield Man Pleads Guilty to Drug and Gun Charges

body_text: BOSTON – A Springfield, Mass. man pleaded guilty today in federal court to drug and gun offenses. JoPaul McKreith, 46, pleaded guilty to four counts of distribution and possession with intent to distribute cocaine; aiding and abetting and one count of distribution and possession with intent to distribute fentanyl; aiding and abetting; felon in possession of a firearm; possession of a firearm in furtherance of drug trafficking crimes; and unlawful possession of a machinegun. U.S. District Court Judge Myong J. Joun scheduled sentencing for April 1, 2025. McKreith was indicted by a federal grand jury on May 16, 2024. McKreith possessed with the intent to distribute drugs between March 15 and May 2, 2024. McKreith also possessed a machine gun and ammunition on May 2, 2024, after previously being convicted of a felony. The charge of possession with intent to distribute fentanyl and cocaine provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $1 million. The charge of possession of an interstate firearm and ammunition by a felon provides for a sentence of up to 15 years in prison, three years of supervised release and a fine of up to $250,000. The charge of possession of a machine gun provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of up to $250,000. The charge of possession of a firearm in furtherance of a drug trafficking felony provides for a sentence of at least five years up to life which must be consecutive to any sentence imposed on any other count, five years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case. United States Attorney Joshua S. Levy and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. Assistant U.S. Attorney Todd E. Newhouse of the Springfield Branch Office is prosecuting the case.


title: California Man Pleads Guilty To Transporting Child Sexual Abuse Materials

body_text: Orlando, Florida – United States Attorney Roger B. Handberg announces that William Kameron Ellis Taylor (29, Chula Vista, CA) today pleaded guilty to transportation of child sex abuse materials. Taylor faces a minimum penalty of 15 years, up to 40 years, in federal prison. A sentencing date has not yet been set. According to the plea agreement, Taylor was stopped by U.S. Customs and Border Patrol agents at Cape Canaveral after returning from an international cruise to the Bahamas. Agents discovered that Taylor had a cellphone and an SD card containing videos and images of child sexual abuse material. Taylor was previously convicted of possession of child sexual abuse material in 2017 in the Southern District of California and has certain sex offender registration requirements under federal law. He failed to inform his registering agency of his plans to leave the country as required by that law. This case was investigated by Homeland Security Investigations, U.S. Customs and Border Patrol, and the United States Marshals Service. It is being prosecuted by Assistant United States Attorney Kaley Austin-Aronson. This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc .


title: Jersey City Gang Member Charged With Violent Crime In Aid Of Racketeering And Weapons Offense For Role In Shooting

component: USAO - New Jersey

body_text: NEWARK, N.J. – A member of the Rutgers neighborhood street gang operating in the area of Triangle Park in Jersey City, New Jersey, is charged for his role in shooting rival gang members, U.S. Attorney Philip R. Sellinger announced. Micah Reid, aka “Nips,” 33, of Jersey City is charged by complaint with one count of violent crime in aid of racketeering activity and one count of discharging of a firearm during a crime of violence. Reid made his initial appearance today before U.S. Magistrate Judge James B. Clark, III in Newark federal court and was detained. According to documents filed in this case and statements made in court: Reid is a high-ranking member and associate of the Rutgers neighborhood street gang, which operates in the area of Triangle Park in Jersey City. The gang has historically engaged in retaliatory acts of violence against rival neighborhood street gangs operating in the area of the Salem Lafayette Apartments and the area of Wilkinson Avenue, Ocean Avenue, Martin Luther King Drive, and Wegman Parkway. On October 1, 2023, Reid, driving a stolen vehicle, shot at members and associates of rival street gangs who were exiting a nightclub on Culver Avenue in Jersey City. In total, six individual suffered gunshot wounds. Law enforcement later recovered the firearm used in the shooting from Reid’s residence while executing a search warrant. Reid faces a maximum sentence of 30 years in prison on the violent crime in aid of racketeering charge, and a statutory mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison on the firearm offense, which must run consecutively to any other sentence imposed. Both offenses carry a maximum fine of $250,000. U.S. Attorney Sellinger credited investigators of the Hudson County Prosecutor’s Office, under the direction of Prosecutor Esther Suarez, special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge L.C. Cheeks Jr., and the Jersey City Police Department, under the direction of Director James Shea, with the investigation leading to the charges. This investigation was conducted as part of the Jersey City Violent Crime Initiative (VCI). The VCI was formed in 2018 by the U.S. Attorney’s Office for the District of New Jersey, the Hudson County Prosecutor’s Office, and the Jersey City Police Department, for the sole purpose of combatting violent crime in and around Jersey City. As part of this partnership, federal, state, county, and city agencies collaborate to strategize and prioritize the prosecution of violent offenders who endanger the safety of the community. The VCI is composed of the U.S. Attorney’s Office, the FBI, the ATF, the Drug Enforcement Administration’s (DEA) New Jersey Division, the U.S. Marshals, the Jersey City Police Department, the Hudson County Prosecutor’s Office, the Hudson County Sheriff’s Office, New Jersey State Parole, the Hudson County Jail, and the New Jersey State Police Regional Operations and Intelligence Center/Real Time Crime Center. The government is represented by Assistant U.S. Attorney Alison Thompson of the General Crimes Unit in Newark. The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty. reid.complaint.pdf


title: Illegal Possession of Firearms and Ammunition Sends Two Acadia Parish Men to Federal Prison

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

body_text: LAFAYETTE, La. – United States Attorney Brandon B. Brown announced that two men from Acadia Parish were sentenced today by United States District Judge Robert R. Summerhays on firearms charges. Tylius Arceneaux , 35, of Lafayette, Louisiana was sentenced to 37 months in prison, followed by 3 years of supervised release, for illegal possession of a firearm and ammunition by a prohibited person. On July 7, 2021, Arceneaux was involved in a single vehicle crash in Lafayette. At the time of the crash, he was in possession of a Beretta 9mm semi-automatic handgun with an extended magazine loaded with approximately 23 rounds of ammunition. Law enforcement officers learned that Arceneaux had numerous felony convictions which prohibited him from possessing a firearm or ammunition. Arceneaux admitted to illegally possessing the loaded firearm, knowing that he was prohibited from doing so, and pleaded guilty to the charge on September 5, 2024. The case was investigated by ATF and Lafayette Police Department and prosecuted by Assistant United States Attorney Lauren L. Gardner. Kiari Robinson , 35, of Crowley, Louisiana, was sentenced to 37 months in prison, followed by 3 years of supervised release. Robinson was charged in an indictment with one count of possession of a firearm by a convicted felon and pleaded guilty to the charge on September 4, 2024. On November 11, 2022, narcotics agents working with the Acadia Parish Sheriff’s Office observed a vehicle run a stop sign and activated the emergency lights in their fully marked vehicle. The driver of the vehicle failed to stop for law enforcement and began to flee traveling at a high rate of speed. The vehicle finally came to a stop and the driver was identified as Robinson. When the deputies approached Robinson’s vehicle, they observed a black Glock handgun with an extended magazine sitting on the driver’s side floorboard. Deputies learned that Robinson was a convicted felon, having been previously convicted of several offenses in Acadia Parish, and they seized the firearm. A subsequent search of Robinson’s cell phone revealed photos of him holding the seized firearm. At his guilty plea, Robinson admitted that he possessed the gun, knowing he was prohibited from doing so. The case was investigated by ATF and Acadia Parish Sheriff’s Office and prosecuted by Assistant United States Attorney LaDonte A. Murphy. # # #


title: December Federal Grand Jury 2024-B Indictments Announced

body_text: United States Attorney Clint Johnson today announced the results of the December Federal Grand Jury 2024-B Indictments. The following individuals have been charged with violations of United States law in indictments returned by the Grand Jury. The return of an indictment is a method of informing a defendant of alleged violations of federal law, which must be proven in a court of law beyond a reasonable doubt to overcome a defendant’s presumption of innocence. Terrance Frank Buffalomeat. Second Degree Burglary in Indian Country; Simple Assault. Buffalomeat, 20, of Hominy and a member of the Osage Nation, is charged with breaking into Midwest Wraps with intent to steal. He is further charged with assaulting a victim. The FBI and the Tulsa Police Department are the investigative agencies. Assistant U.S. Attorney Adam Goodrum is prosecuting the case. 24-CR-392 Mark Verron Callshim, Jr. Robbery in Indian Country; Carrying, Using, and Brandishing a Firearm During and in Relation to a Crime of Violence (superseding). Callshim, 37, of Tulsa and a member of the Ponca Tribe of Indians of Oklahoma, is charged with taking something of value by force, violence, and intimidation. He is further charged with brandishing a firearm in relation to a crime of violence. The FBI and the Tulsa Police Department are the investigative agencies. Assistant U.S. Attorney Mike Flesher is prosecuting the case. 24-CR-159 Tony Deanglio Davis. Felon in Possession of a Firearm. Davis, 50, of Tulsa, is charged with possessing a firearm, knowing he was previously convicted of felonies. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Tulsa Police Department are the investigative agencies. Assistant U.S. Attorney Mike Flesher is prosecuting the case. 24-CR-393 Keith Edward Enyart; Jennifer Barger Enyart. Child Neglect in Indian Country (Counts 1 & 4); Child Abuse in Indian Country (Counts 2 & 5); Assault with a Dangerous Weapon with Intent to Do Bodily Harm in Indian Country (Count 3). Keith Enyart, 52, a member of the Wyandotte Nation, and Jennifer Enyart, 44, of Wyandotte, are charged with willfully failing to provide appropriate medical care and supervision to protect a child under their care. They both are charged with willfully harming the safety and welfare of the minor victim. Jennifer is additionally charged with intentionally assaulting the minor child by tasing his testicles. The FBI is the investigative agency. Assistant U.S. Attorney Stephanie N. Ihler is prosecuting the case. 24-CR-394 Sarai Jamila Nyasha Freeman. Passing and Uttering Counterfeit Obligations and Securities (Counts 1 & 2); Aggravated Identity Theft (Counts 3 & 4); Failure to Appear (Count 5) (superseding). Freeman, 40, of Aurora, Colorado, is charged with forging and cashing counterfeit U.S. Treasury checks. She is further charged with using the victim's last name and social security number without lawful authority. Additionally, Freeman failed to appear for trial, knowing she was required under the conditions of her pretrial release. The U.S. Treasury Inspector General for Tax Administration and the Treasury Inspector General are the investigative agencies. Assistant U.S. Attorney David D. Whipple is prosecuting the case. 24-CR-220 Grant Stephen Goers. Coercion and Enticement of a Minor (Counts 1, 3, & 4); Production of Child Pornography (Count 2). Goers, 23, of Greenwood, Arkansas, is charged with knowingly persuading and enticing three separate minor victims under 18 years old to engage in sexual activity. He is further charged with enticing a minor victim to produce sexually explicit material. Homeland Security Investigations, the Tulsa Police Department, the Sand Springs Police Department, and the Tahlequah Police Department are the investigative agencies. Assistant U.S. Attorney Ashley Robert is prosecuting the case. 24-CR-395 Diana May Harjo. Assault Resulting in Serious Bodily Injury in Indian Country. Harjo, 39, of Tulsa and a member of the Sac and Fox Nation, is charged with assaulting the victim, which resulted in serious bodily injury. The FBI and the Tulsa Police Department are the investigative agencies. Assistant U.S. Attorney Michele W. Hulgaard is prosecuting the case. 24-CR-403 Ricky Troy Juarez. Second Degree Murder in Indian Country. Juarez, 32, of Tulsa and a member of the Choctaw Nation of Oklahoma, is charged with unlawfully killing Shane Thompson, Sr., with malice aforethought. The FBI and Tulsa Police Department are the investigative agencies. Assistant U.S. Attorney Eric O. Johnston is prosecuting the case. 24-CR-404 Jose Jesus Lozano-Gonzalez. Unlawful Reentry of a Removed Alien; Felon in Possession of a Firearm and Ammunition; Alien Unlawfully in the United States in Possession of a Firearm and Ammunition. Lozano-Gonzalez, 25, a Mexican national, is charged with unlawfully reentering the United States after having been previously removed in Feb. 2022. Further, Lozano-Gonzalez unlawfully possessed a firearm and ammunition, knowing he was previously convicted of felonies in Oklahoma. U.S. Immigration and Custom’s Enforcement and Removal Operations is the investigative agency. Assistant U.S. Attorney Christian Harris is prosecuting the case. 24-CR-374 Stuwart Raymon Owens. Felon in Possession of a Firearm and Ammunition. Owens, 39, of Tulsa, is charged with possessing a firearm and ammunition, knowing he was previously convicted of felonies. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Tulsa Police Department are the investigative agencies. Assistant U.S. Attorney John W. Dowdell is prosecuting the case. 24-CR-405 Rudi Reyes-Rosales. Unlawful Reentry of a Removed Alien. Reyes-Rosales, 30, a Mexican national, is charged with unlawfully reentering the United States after having been previously removed in July 2021. U.S. Immigration and Custom’s Enforcement and Removal Operations is the investigative agency. Assistant U.S. Attorney Thomas E. Buscemi is prosecuting the case. 24-CR-396 Kyle Thomas Smith. Felon in Possession of a Firearm and Ammunition. Smith, 33, of Claremore, is charged with possessing a firearm and ammunition, knowing he was previously convicted of felonies. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Tulsa Police Department are the investigative agencies. Assistant U.S. Attorney John Brasher is prosecuting the case. 24-CR-406 Ryan Blake Still. Failure to Register as a Sex Offender. Still, 33, transient, is charged with knowingly failing to register as a sex offender from June 2024 through July 2024 after previously being convicted of Sexual Abuse of a Minor in Indian County in 2021. The U.S. Marshal Service is the investigative agency. Assistant U.S. Attorney Michele Hulgaard is prosecuting the case. 24-CR-407 Marcos Javier Suazo-Otero; Marcos Javier Suazo-Mancilla. Drug Conspiracy; Possession of Methamphetamine with Intent to Distribute; Possession of Cocaine with Intent to Distribute; Maintaining a Drug-Involved Premises; Unlawful Reentry of a Removed Alien; Possession of Firearms in Furtherance of a Drug Trafficking Crime. Suazo-Otero, 46, and Suazo-Mancilla, 23, both Mexican nationals, are charged with conspiring to distribute methamphetamine from Jan. 2024 through Nov. 2024. They are further charged with maintaining a residence for drug distribution. Suazo-Otero knowingly possessed methamphetamine with intent to distribute and is additionally charged with unlawfully reentering the United States after having been previously removed in Aug. 2018. Lastly, Suazo-Mancilla knowingly possessed cocaine with intent to distribute and possessed firearms while drug trafficking. The Drug Enforcement Administration, the Tulsa Police Department, and the Tulsa County Sheriff’s Office are the investigative agencies. Assistant U.S. Attorney David A. Nasar is prosecuting the case. 24-CR-397 Aristride Villatoro-Izaguirre. Unlawful Reentry of a Removed Alien. Villatoro-Izaguirre, 32, a Honduran national, is charged with unlawfully reentering the United States after having been previously removed in Feb. 2018. U.S. Immigration and Custom’s Enforcement and Removal Operations is the investigative agency. Assistant U.S. Attorney Adam Goodrum is prosecuting the case. 24-CR-398


title: Dauphin County Man Indicted For Drug-Trafficking Offenses

component: USAO - Pennsylvania, Middle

body_text: HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Rasheek Blackstone, age 35, of Steelton, Pennsylvania, was indicted by a federal grand jury for methamphetamine trafficking. According to United States Attorney Gerard M. Karam, the indictment charges Blackstone with one count of distributing and possessing with intent to distribute methamphetamine in Dauphin County. The charges resulted from an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”), and the Harrisburg Police Organized Crime and Vice Control Unit. Assistant United States Attorney Michael Scalera is prosecuting the case. This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. Under federal law, Blackstone faces a mandatory minimum sentence of ten years in prison, a maximum sentence of life in prison, a term of supervised release, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines. Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court. # # #


title: Utah Man Sentenced To 57 Months In Prison For $8 Million Credit Card Fraud Scheme, False Statements To Bank

body_text: TRENTON, N.J. – A Utah man was sentenced today to 57 months in prison for his role in two criminal schemes, U.S. Attorney Philip R. Sellinger announced. Timothy Gibson, 48, of Lehi, Utah, previously pleaded guilty in Trenton federal court to Count One of a five-count indictment, which charged him with conspiracy to commit wire fraud for his role in a multi-million dollar credit card fraud scheme that occurred in New Jersey; and to a three-count information which charged him with making false statements to a bank as part of a scheme that took place in Utah. Judge Georgette Castner imposed the sentence today in Trenton federal court. According to documents filed in this case and statements made in court: The credit card fraud scheme: Gibson and his conspirators solicited personal information from straw credit card applicants so the members of the conspiracy could submit falsified credit card applications to obtain credit cards. The credit cards were then used to make purchases that generated rewards points from the credit card company. In general, purchases were made on the credit cards and were then cancelled after the rewards points posted but before the credit card payments for the purchases were due. Other “purchases” on the cards were in fact sham transactions run through Gibson’s business’s merchant account. Gibson and his conspirators solicited straw credit card applicants by offering to purchase credit card offers the applicants received in the mail. They then asked the straw credit card applicants to provide their personal identifying information, and used that information to open numerous credit cards in the names of fictitious businesses created with falsified financial and employment information, straw e-mail addresses, and fake business addresses. Straw cardholders sent Gibson and his conspirators the credit card account information in exchange for payment. Gibson also used his business’s credit card merchant account to charge the fraudulent credit cards for sham purchases that he knew were not legitimate, all in an effort to generate rewards points on those cards. The conspirators added themselves to the credit card accounts as authorized users, and transferred rewards points to accounts they controlled. The conspirators cancelled the points-generating purchases before the credit card payment was due. The conspiracy involved more than 8,000 fraudulent accounts in the names of more than 1,500 straw cardholders that obtained more than 800 million rewards points, which were worth more than $8 million. Charges remain pending against Aharon Lev, a/k/a “Aaron Lev,” a/k/a “Aron Lev,” a/k/a “David Gold,” a/k/a “David Monroe,” 37, of Lakewood, New Jersey. The charges against Lev are merely accusations and he is presumed innocent unless and until proven guilty. The false statements to a bank: In March 2020, the CARES Act established several new temporary programs and provided for the expansion of others to address the COVID-19 outbreak. One new program was the Small Business Association’s (“SBA”) Paycheck Protection Program (“PPP”), a loan program designed to provide an incentive for small businesses to keep workers on payroll during the pandemic. Borrowers were required to submit an application form through an SBA-approved entity. In May 2020, Gibson falsely reported the number of employees and the average monthly payroll of a business with which he was associated in order to obtain a loan through the PPP program, and advised multiple businesses on how they could do the same. In addition to the prison term, Judge Castner sentenced Gibson to three years of supervised release and ordered him to pay restitution. U.S. Attorney Sellinger credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jenifer L. Piovesan; and postal inspectors of the U.S. Postal Inspection Service in Newark, under the direction of Inspector in Charge Christopher A. Nielsen Philadelphia Division. The government is represented by Assistant U.S. Attorney Matthew Specht of the Special Prosecutions Division.


title: Lansing Man, Prosecuted Under Safe Summer Program, Sentenced To 27 Months In Prison

component: USAO - Michigan, Western

body_text: GRAND RAPIDS – U.S. Attorney for the Western District of Michigan Mark Totten today announced that Mychal Marcell Borney, 44, of Lansing, was sentenced to 27 months in federal prison for being a felon in possession of firearms. Borney was charged as part of Safe Summer 2024, a gun-violence enforcement program under which the U.S. Attorney’s Office committed to prosecute all firearms offenders who possess crime guns (that is, guns previously fired in the commission of a crime). “No matter your zip code, everyone deserves the right to live free from the threat of gun violence,” said U.S. Attorney Mark Totten . “Mr. Borney is a habitual lawbreaker who jeopardized the public’s safety. We will not relent in our efforts to hold accountable the few individuals driving gun violence in our communities.” After callers reported hearing numerous gunshots from a car driving by, Lansing police responded and found Borney in the passenger seat of a car in the area. They found a loaded gun with an extended magazine in the car, near where Borney was seated. There were 13 spent casings in the road that had been fired from Borney’s gun. Borney had previously been convicted of illegal drug possession and home invasion and served two extended prison terms. “Mychal Borney has proven time and time again that he is unable to make sound decisions without jeopardizing public safety. At the young age of 22 years old, he is considered a habitual lawbreaker who preys on the public as evidenced by his previous felony convictions for home invasion and drug possession,” said ATF Special Agent in Charge James Deir . “During this incident, Borney, a convicted felon, possessed a firearm immediately after it was used in a shooting during which someone could have been fatally injured. Thankfully, that did not happen here. In the end, poor choices have consequences. If you use an illegal firearm to threaten our community – pack a bag. You’re going to go to prison for an extended period of time.” “The Lansing Police Department is committed to reducing gun violence and ensuring community safety,” said Lansing Police Chief Rob Backus . “This latest sentencing proves that our community feels the same way that we do. Illegal guns cannot and will not be tolerated. We appreciate our federal partners’ collaboration in holding those who endanger public safety accountable. This case highlights the importance of teamwork in combating violent crime and protecting Lansing residents.’ U.S. Attorney Mark Totten announced the second year of the Safe Summer program on May 23, 2024 in a press release and press conferences in Benton Harbor, Kalamazoo, Lansing, and Grand Rapids. Under this program, the U.S. Attorney’s Office prosecuted all cases that satisfy two criteria. First, the case must involve a federal firearms offense. The two most common offenses are felon in possession, which prohibits previously convicted felons from possessing a gun, and possession of a machine gun, which generally prohibits persons from possessing fully automatic guns. Second, the case must involve a crime gun, which is any gun previously fired in the commission of a crime. These criteria focus federal efforts on the few individuals driving gun violence in their communities. Gun violence is an acute problem across the United States. In 2021, for the first time ever, firearm-related injuries became the leading cause of death for American children, ages birth to 19, according to the New England Journal of Medicine ( see also here ). According to the Centers for Disease Control and Prevention , the U.S. firearm homicide rate in 2021 was the highest documented since 1993. While the numbers have declined since 2021, they remain high. Moreover, while gun violence has the potential to impact everyone, recent studies show that gun violence has a disparate impact on people of color. A study in the Journal of the American Medical Association shows that the disparity in shooting injuries among children before and after the pandemic in four major cities approximately tripled as between white children and children of color (Black, Hispanic, Asian). This case is part of Project Safe Neighborhoods (PSN), a program bringing together federal, state, local, and tribal law enforcement, and the local community to develop effective, locally based strategies to reduce violent crime. For more information, visit www.justice.gov/psn . This case was investigated by the Lansing Police Department and Bureau of Alcohol, Tobacco, Firearms, and Explosives. ###


title: Chemonics International Inc. to Pay $3.1M to Resolve Allegations of Fraudulent Billing Under Global Health Supply Chain Contract

component: Civil Division

body_text: Chemonics International Inc. (Chemonics), a private international development firm based in Washington, D.C. has agreed to pay $3,119,582 to resolve allegations that it violated the False Claims Act by submitting fraudulent claims for payment to the U.S. Agency for International Development (USAID). Chemonics disclosed the fraudulent billing to the United States in 2020. The settlement resolves allegations that Chemonics acted recklessly in failing to detect fraudulent charges by its subcontractor, Zenith Carex (Zenith), for certain delivery services in Nigeria, and passed the charges on to USAID under the Global Health Supply Chain-Procurement and Supply Chain Management contract. Under this contract, Chemonics provided health care supply chain management services and related technical assistance in Nigeria and other countries. Chemonics subcontracted with Zenith, an in-country logistics provider, to perform last-mile delivery and long-haul delivery of cold-chain commodities throughout Nigeria. Between June 2017 and March 2020, Zenith fraudulently charged Chemonics for its long-haul delivery services based on truck tonnage as opposed to the weight per kilogram of the commodity transported, as the subcontract between Chemonics and Zenith required. During the same time period, Zenith charged Chemonics more for last-mile delivery services than the subcontract allowed. Chemonics failed to detect Zenith’s fraudulent overcharging for more than two years due to systematic process and personnel failures, including inadequate financial controls, monitoring and oversight and inadequate employee training, direction and support. “Government contractors must exercise responsible oversight and management of their subcontractors to ensure contract compliance and appropriate billing,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “Today’s settlement demonstrates the department’s commitment to hold accountable those who knowingly or recklessly submit false claims for payment to the United States no matter where in the world the underlying conduct occurs.” In connection with the settlement, the United States acknowledged that Chemonics took a number of significant steps entitling them to credit for cooperating with the government in connection with the resolution of this matter. Chemonics disclosed the fraudulent billing to the government in connection with an investigation by another entity for which it provided delivery services in Nigeria and took remedial actions, including terminating an employee for conduct related to the submission of fraudulent invoices, conducting a comprehensive review of subcontractor billing and enhancing internal oversight in Nigeria. Chemonics also assisted the government during its investigation. “USAID’s Global Health Supply Chain program is designed to provide uninterrupted supplies of health products and services to the vulnerable populations worldwide,” said Special Agent in Charge Sean Bottary of the USAID Office of Inspector General (OIG). “This settlement underscores that justice has no borders, and that USAID’s contractors and grantees must have systems in place to detect and prevent false invoices submitted by subawardees. The USAID OIG will vigorously investigate those who seek to defraud U.S.-funded foreign assistance programs, and we are relentless in our pursuit of holding awardees and subawardees accountable. We appreciate our partnership with the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, and the U.S. Attorney’s Office for the Western District of Missouri and commend them on their hard work in bringing this case to a resolution.” The resolution obtained in this matter was the result of a coordinated investigation conducted by the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, U.S. Attorney’s Office for the Western District of Missouri and USAID OIG. Trial Attorneys Robin Overby and Samuel Lehman of the Justice Department’s Civil Division and Assistant U.S. Attorneys Matt Sparks and Cari Walsh for the Western District of Missouri handled the matter. The claims resolved by the settlement are allegations only. There has been no determination of liability.


title: Minnesota Man Sentenced to 20 Years for Distributing Fentanyl that Resulted in Death of Tuscaloosa Man

component: USAO - Alabama, Northern

body_text: TUSCALOOSA, Ala. – A St. Francis, Minnesota, man was sentenced to 20 years’ imprisonment Tuesday for his role in an international drug trafficking ring that resulted in the death of a man, announced United States Attorney Prim F. Escalona and U.S. Postal Inspection Service Inspector-in-Charge Mona Hernandez, Houston Division. Christopher Louis Bass, 46, was sentenced by U.S. District Judge L. Scott Coogler for distributing fentanyl, after previously pleading guilty and admitting that Dr. Louis Burgio’s death resulted from Bass’s criminal activity. Dr. Burgio was a psychology professor at the University of Alabama and the University of Michigan. In 2004, the University of Alabama Board of Trustees recognized Dr. Burgio as the University’s Distinguished Research Professor for his work in the Applied Gerontology Program, the highest honor bestowed upon a faculty member at the University. “This case reminds us all too clearly that drug distribution is not a victimless crime,” said U.S. Attorney Escalona. “My office will continue to prosecute those who place these poisons into families and communities throughout north Alabama.” “Combatting illicit drugs in the mail is a top priority for the U.S. Postal Inspection Service,” said Mona Hernandez, Acting Inspector-in-Charge of the Houston Division. “The overdose death in this case is a stark reminder of the dangers of fentanyl and why the Postal Inspection Service remains committed to eradicating these illicit substances from the U.S. Mail and consequently safeguarding our community. Christopher Louis Bass’ 240-month sentence should serve as a warning to those who intend to engage in this type of criminal activity. The U.S. Postal Inspection Service will never tolerate the misuse of the U.S. Mail to distribute fentanyl to our communities.” The case was investigated by the Tuscaloosa Police Department, the Tuscaloosa County Violent Crimes Unit, United States Postal Inspection Service – Birmingham, United States Postal Inspection Service – Twin Cities, the East Central Drug Task Force, and the Anoka-Hennepin Narcotics and Violent Crimes Task Force. Assistant United States Attorney Alan S. Kirk prosecuted the case.


title: Three Plead Guilty in Conspiracy Scheme Involving Bribery of  Government Contracting Officer

body_text: HUNTSVILLE, Ala. – Three men pleaded guilty today to their respective roles in a conspiracy to bribe a public official announced United States Attorney Prim F. Escalona and Keith Kelly, Special Agent in Charge for the United States Army Criminal Investigation Division’s Fraud Field Office. Francisco Guerra , 55, of Lexington, Alabama, Coogan Preston , 55, of Columbia, South Carolina, and Jason Ingram , 47, of Rogersville, Alabama, pleaded guilty before U.S. District Judge Liles Burke to conspiracy to bribe a public official. Preston also pleaded guilty to receiving a gratuity as a public official. Sentencing hearings for each of the conspirators have been scheduled for March 18, 2025. According to the plea agreements, the scheme began in 2016 and continued until 2021. As part of the scheme, Guerra agreed to provide money and other items of value to Preston, a government contracting official working at Redstone Arsenal in Huntsville, Alabama. In exchange for these bribes, Preston identified subcontracting opportunities for companies owned and operated by Guerra and convinced the prime contractor to use one of Guerra’s companies as a subcontractor. “This office is committed to prosecuting individuals who illegally prioritize their personal gain over the fiduciary responsibilities of a federal government official,” U.S. Attorney Escalona said. “Persons who seek to enrich themselves through bribes and illegal payments undermine the public’s trust and the basic concept of fairness.” “We are very pleased with today’s announcement,” said Special Agent in Charge Kelly. “This is a true testament to our continued commitment to work closely and seamlessly with our outstanding fellow law enforcement agencies to help bring those to justice who attempt to defraud the U.S. Government and U.S. Army.” The Department of the Army’s Criminal Investigation Division investigated the case with assistance from U.S. Immigration and Customs Enforcement, Homeland Security Investigations, Internal Revenue Service - Criminal Investigation, and the United States Department of Defense Office of Inspector General-- Defense Criminal Investigative Service. Assistant U.S. Attorney Lloyd Peeples is prosecuting the case.


title: Owner of chain of Bikini Barista coffee stands sentenced for failing to report up to $6 million in income

component: USAO - Washington, Western

body_text: Seattle –The owner of a string of bikini barista coffee stands was sentenced today in U.S. District Court in Seattle to 10 months in prison and a $75,000 fine for making and subscribing a false tax return, announced U.S. Attorney Tessa M. Gorman. Between 2016 and 2020 Assad Baragzai, 47, of Yarrow Point, Washington, failed to report as much as $6 million in income on his tax returns. At the sentencing hearing U.S. District Judge Tana Lin said, the tax system “is an honor system… and you weren’t honorable. (There was) absolutely no reason for you to be cheating on your taxes except for pure greed.” “Our government relies on the 85 percent of Americans who each year pay the taxes they owe to keep communities safe, and provide all the other important services we need,” said U.S. Attorney Tessa M. Gorman. “Mr. Baragzai had great business success, but failed to fund the community that made that success possible. Such conduct is not erased by paying what is owed some five years later – it is appropriate that he serve prison time for his willful tax fraud.” According to records in the case, Baragzai significantly under-reported his income when he provided information to his tax accountant. The government believes that the tax loss over the five years that Baragzai underreported his income is more than $1.7 million. The tax loss in 2017 alone is more than $687,000. Baragzai disputes the government figures and argued that he had some legitimate deductions making the tax loss is $1.3 million. Judge Lin determined the tax loss was $1,348, 154. In asking for a two-year prison term Assistant United States Attorney Mike Dion wrote to the court, “Assad Baragzai reaped the benefits of American society but somehow convinced himself that he did not need to pay his share of the costs that support that society. All Americans pay a price for this kind of selfishness. For example, school lunches are provided by the United States Department of Agriculture’s Food and Nutrition Service. But for this prosecution, Baragzai’s tax fraud would have cost the government the equivalent of 462,000 school lunches.” “Instead of paying his fair share toward public resources as every law-abiding American does, Mr. Baragzai misrepresented his income to furnish an already-lavish lifestyle,” said Adam Jobes, Special Agent in Charge of IRS Criminal Investigation’s Seattle Field Office. Baragzai is the second defendant to be sentenced in this investigation. In October 2024, Baragzai’s brother-in-law, 45-year-old Rajesh Mathew, of Auburn, Washington, was sentenced to 30 days in jail, a $5,000 fine, and 100 hours of community service for making and subscribing a false tax return. Baragzai has agreed to pay restitution to the IRS. He may also face additional civil penalties, fines, and interest for the tax loss. The case is being investigated by the Internal Revenue Service Criminal Investigation (IRS-CI). The case is being prosecuted by Assistant United States Attorney Michael Dion.


title: New Hope Man Pleads Guilty to Cyberstalking, Extortion, and Production of Child Pornography and Agrees to 40-Year Prison Sentence

body_text: HUNTSVILLE, Ala. – A New Hope man pleaded guilty today to stalking and extorting a woman and producing child pornography involving two minor victims, announced U.S. Attorney Prim F. Escalona and Federal Bureau of Investigation Special Agent in Charge Carlton L. Peeples. Donald Wayne Carmody, 30, of New Hope, Alabama, pleaded guilty before U.S. District Judge Liles C. Burke to cyberstalking, two counts of extortion, and two counts of production of child pornography. According to the plea agreement, Carmody used anonymous text messages to threaten to release pictures of the victim on the internet if she did not send him intimate photographs. Carmody also obtained the victim’s login credentials for her social media accounts and accessed their contents. After Carmody was arrested on cyberstalking and extortion charges for this conduct, investigators discovered a USB thumb drive belonging to him that contained images of child pornography that involved two victims under the age of twelve. The FBI’s Video Forensic Analysis Unit compared the images from the thumb drive, which showed a person’s hand, to pictures of Carmody’s hands taken during the investigation. The Unit identified similar class and distinguishing characteristics between the images, demonstrating that the hand in the images on the thumb drive belonged to Carmody. As part of the plea agreement, Carmody stipulated to a 480-month sentence of imprisonment for the offenses. If the Court rejects the stipulated sentence, Carmody or the United States could withdraw from the plea agreement. The maximum penalty for cyberstalking is five years imprisonment. The maximum penalty for extortion is two years imprisonment. The maximum penalty for production of child pornography is 30 years imprisonment. Each offense also carries the possibility of a $250,000 fine. The FBI investigated the case. Valuable assistance was provided by the Madison County Sheriff’s Office. Assistant U.S. Attorney John M. Hundscheid is prosecuting the case. The U.S. Attorney’s Office (USAO) and the National Children’s Advocacy Center (NCAC) have partnered and released a digital series to educate parents and caretakers about sextortion and how they can help prevent kids and teens from being victims. This series offers three-to-five-minute videos about current online safety topics and provides essential information about the true dangers of online activities. These videos titled “Sextortion Prevention” can be accessed at https://www.youtube.com/@nationalcac/videos . If you suspect or become aware of possible sexual exploitation of a child, please contact law enforcement. To alert the FBI Birmingham Office, call 205-326-6166. Reports can also be filed with the National Center for Missing & Exploited Children (NCMEC) or online at www.cybertipline.org. The case was brought as part of Project Safe Childhood, a nationwide initiative launched by the Department of Justice in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov . For more resources on cybercrime, visit www.ic3.gov .


title: Former Doctor and Her Wife Sentenced for Fraud and Other Crimes

body_text: HUNTSVILLE, Ala. – A former family practice doctor in Huntsville was sentenced today for drug crimes, health care fraud, and COVID-19 disaster relief fraud, announced U.S. Attorney Prim F. Escalona, FBI Special Agent in Charge Carlton Peeples, Drug Enforcement Administration Special Agent in Charge Steven L. Hofer, and Special Agent in Charge Tamela Miles of the Department of Health and Human Service Office of the Inspector General Atlanta Region. The doctor’s wife, who owned the medical practice, was also sentenced. Judge Liles C. Burke sentenced Francene Aretha Gayle , 50, to 87 months in prison on four opioid prescribing charges, one count of health care fraud, and one count of wire fraud. Judge Burke sentenced Schara Monique Davis , 48, to 42 months in prison for one count of health care fraud and one count of wire fraud. Each defendant was also ordered to pay $2.2 million in restitution, forfeit $226,815, and pay a fine. According to the defendants’ plea agreements, between about 2014 and early 2020, Gayle was a doctor who operated a multi-clinic practice in Huntsville, Athens, and Killen. Davis owned the practice and served as business manager. In 2019, the Killen clinic shut down. In March 2020, the Alabama Medical Licensure Commission revoked Gayle’s license, and the other two clinics closed shortly after that. Gayle admitted that she had unlawfully distributed drugs, including oxycodone, hydrocodone, and methadone. Gayle and Davis both admitted to having conspired to commit health care fraud for several years by billing insurers for office visits under Gayle’s name even when she did not see the patients, was not in the same building, and sometimes was not in the same town. The defendants knew that the billing scheme was fraudulent. In 2015, Blue Cross Blue Shield of Alabama audited the practice and discovered that Gayle was absent, other staff were seeing patients, and yet all office visits were being billed under Gayle’s name. Blue Cross flagged the issue, and Gayle promised it would stop. Instead, the practice continued fraudulently billing insurers for office visits for the next four years. In total, between 2015 and 2020, Medicare, Medicaid, and Blue Cross paid more than $2.3 million for office visits billed under Gayle’s name. Gayle and Davis both also admitted to having conspired to commit wire fraud. In March 2020, based on concerns about her prescribing and billing practices, Gayle’s Alabama medical license was revoked. Months later, Gayle and Davis applied for and obtained more than $450,000 in COVID-19 disaster relief funds through the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) program. Those funds were designed to stabilize businesses struggling because of the pandemic. In their funding applications, Gayle and Davis certified that their medical practice needed the money because of economic uncertainty or injury caused by the pandemic. In reality, Gayle and Davis’s practice had closed, and they used COVID-19 funds they received on other things. The FBI, DEA, and HHS-OIG investigated the case. The Medicaid Fraud Control Unit of the Alabama Attorney General’s Office provided exceptional investigative assistance after the Alabama Medicaid Agency’s Program Integrity Division initiated the case and referred it. Assistant U.S. Attorneys J.B. Ward and Ryan Rummage prosecuted the case.


title: Massachusetts Man Charged with Multiple Firearm Offenses

component: USAO - Connecticut

body_text: Vanessa Roberts Avery, United States Attorney for the District of Connecticut, and Michael J. Krol, Special Agent in Charge of Homeland Security Investigations (HSI) New England, today announced that a federal grand jury in New Haven has returned a four-count indictment charging NICHOLAS KINGSLEY, 40, of Agawam, Massachusetts, with firearm possession offenses. The indictment was returned on December 4, 2024. Kingsley appeared today before U.S. Magistrate Judge Robert A. Richardson in Hartford and pleaded not guilty to the charges. He has been detained since his arrest on related state charges on April 16, 2024. As alleged in court documents and statements made in court, on April 16, 2024, Enfield Police arrested Kingsley after a traffic stop and he was found in possession of three privately made firearms (“ghost guns”) and 45 rounds of ammunition. On April 18, 2024, while Kingsley was detained in state custody, HSI special agents conducted a search of his vehicle in Agawam and seized 14 fully assembled firearms, several Glock machine gun conversion devices, and more than 2,000 rounds of various caliber ammunition. It is alleged that Kingsley’s criminal history includes felony convictions for drug, firearm, assault, and larceny offenses. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce. The indictment charges Kingsley with unlawful possession of firearms by a felon, an offense that carries a maximum term of imprisonment of 15 years; unlawful possession of ammunition by a felon, an offense that carries a maximum term of imprisonment of 15 years; unlawful possession of a machine gun, an offense that carries a maximum term of imprisonment of 10 years; and unlawful possession of a weapon in violation of the National Firearms Act, an offense that carries a maximum term of imprisonment of 10 years. U.S. Attorney Avery stressed that an indictment is not evidence of guilt. Charges are only allegations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt. This matter is being investigated by Homeland Security Investigations (HSI), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Enfield Police Department, and the Agawam Police Department. The case is being prosecuted by Assistant U.S. Attorney Christopher J. Lembo. This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce gun violence and other violent crime, and to make our neighborhoods safer for everyone. In May 2021, the Justice Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. For more information about Project Safe Neighborhoods, please visit www.justice.gov/psn .


title: Hyannis Man Pleads Guilty to Gun and Drug Charges

body_text: BOSTON – A Hyannis man pleaded guilty today in federal court in Boston to possession of a firearm and possession with intent to distribute fentanyl. Timothy Lee Galvin, 32, pleaded guilty to possession of a firearm in furtherance of a drug trafficking crime and possession with intent to distribute fentanyl. U.S. District Court Judge Angel Kelley scheduled sentencing for April 3, 2025. Galvin was indicted in August 2023. On or about June 2, 2023 in Barnstable, Galvin was arrested for possession of approximately six grams of fentanyl and three rounds of 9mm ammunition in his pocket, and a backpack in which the police found a privately made firearm which was a .45 caliber pistol, 11 rounds of .45 caliber ammunition and 47 rounds of 9mm ammunition. The charge of possession with intent to distribute fentanyl provides for a sentence of up to 20 years in prison, a minimum term of three years of supervised release and a maximum fine of $1,000,000. The charge of possession of a firearm in furtherance of a drug trafficking crime provides a mandatory minimum sentence of five years and up to life in prison, a maximum of five years of supervised release and a maximum fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case. United States Attorney Joshua S. Levy; James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; and Cape & Islands District Attorney Robert Galibois made the announcement today. Assistant U.S. Attorney Benjamin Tolkoff of the Organized Crime & Gang Unit is prosecuting the case. This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce gun violence and other violent crime, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. For more information about Project Safe Neighborhoods, please visit Justice.gov/PSN .


title: Former Fayette County Law Enforcement Officer Sentenced to 25 Years in Prison for Child Sex Trafficking and Obstruction Crimes

body_text: CHARLESTON, W.Va. – Larry Allen Clay Jr., 58, of Fayetteville, was sentenced today to 25 years in prison, to be followed by 10 years of supervised release, and ordered to pay $80,000 in restitution for sex trafficking a 17-year-old minor female and obstructing the resulting investigation. Clay must also register as a sex offender. Clay was the Chief of Police for the Gauley Bridge Police Department and a deputy with the Fayette County Sheriff’s Department at the time of the offenses. Evidence at trial proved that Clay paid a total of $100 to co-defendant Kristen Naylor-Legg to have sex with her 17-year-old minor female relative on two separate occasions in June 2020. During both incidents, Clay wore his Gauley Bridge Police uniform, badge, duty belt, and service firearm. The first incident occurred at or near Clay’s Gauley Bridge-issued vehicle on a rural Fayette County road. The second incident took place inside the former Gauley Bridge High School, in a basement office reserved for the Gauley Bridge Police Department. Investigators were able to retrieve DNA evidence from a washcloth discarded in the office. After the minor female reported both incidents, Clay sought to persuade Naylor-Legg to lie to law enforcement about what happened. Clay also asked a law enforcement officer if his criminal conduct could be covered up. Following four days of trial, a federal jury found Clay guilty on April 28, 2023 of conspiracy to engage in sex trafficking of a minor via coercion, sex trafficking of a minor via coercion, and two counts of obstruction of justice. “Today’s sentence reflects the incalculable harm Larry Allen Clay Jr. inflicted on his minor victim, his community, and the public’s trust of law enforcement,” said United States Attorney Will Thompson. “He failed his oath to protect the public and uphold the law. But Clay also failed to anticipate his victim’s courage. Despite everything she endured, she came forward. Because of this survivor’s bravery and resolve, he was brought to justice.” Naylor-Legg, 31, of Gauley Bridge, was sentenced to nine years in prison on August 31, 2023 after pleading guilty to conspiracy to engage in sex trafficking of a minor under the age of 18. Thompson commended the investigative work of the U.S. Department of Homeland Security-Homeland Security Investigations (HSI), the West Virginia State Police and the Fayette County Sheriff’s Department. United States District Judge Joseph R. Goodwin imposed the sentence. Assistant United States Attorneys Jennifer Rada Herrald and Monica Dillon tried the case, securing guilty verdicts on all four counts against Clay. Members of the public are urged to report suspected instances of child sex trafficking through a toll-free hotline at 1-866-DHS-2ICE (1-866-347-2423) or online at www.ice.gov/tips . This case was prosecuted as part of Project Safe Childhood, a nationwide initiative of the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc . A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:21-cr-62. ###


title: Mifflintown Man Indicted On Drug Trafficking And Firearm Offenses

body_text: HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Janssen Rodriguez Velez, age 27, was indicted yesterday by a federal grand jury on drug trafficking and firearms charges. According to United States Attorney Gerard M. Karam, the indictment alleges that Rodriguez Velez conspired to distribute, and possess with the intent to distribute, cocaine, between February 10 and 29, 2024, in Mifflin, Pennsylvania. The indictment also alleges that Rodriguez Velez possessed a Taurus G3 9mm Luger pistol during and in relation to his drug trafficking activities. The case was investigated by the United States Postal Inspection Service (USPIS) and the Pennsylvania State Police. Assistant U.S. Attorney David C. Williams is prosecuting the case. The maximum penalty under federal law for these offenses is lifetime imprisonment, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines. Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court. # # #


title: West Haven Woman Who Diverted Narcotics from Dying VA Medical Center Patients is Sentenced

body_text: Vanessa Roberts Avery, United States United States Attorney for the District of Connecticut, announced that TARA SEVERINO, 58, of West Haven, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to two years of probation, the first six months of which Severino must serve in home confinement, for diverting narcotics from veterans under her care while she worked as a nurse at the West Haven VA Medical Center. According to court documents and statements made in court, Severino was employed as a registered nurse with the Department of Veterans Affairs Medical Center (the “VA”) in West Haven and was assigned to the VA’s Intensive Care Unit (“ICU”) for sick or dying patients. From January to July 2023, Severino ingested fentanyl, hydromorphone, and oxycodone intended for patients in her care. In some instances, Severino ingested the “waste” of a substance, meaning she administered part of the substance to a patient and ingested the remaining portion not used by the patient. In one instance, Severino repeatedly introduced fentanyl into the system of a braindead patient after claiming she observed him in pain and having a seizure. She introduced fentanyl to this patient approximately 19 times over a nine-day period so that she could divert some for herself. In other instances, Severino ingested doses of hydromorphone and fentanyl meant for dying veterans. This affected treatment decisions made by other medical staff who believed that the patients had been receiving, and were unresponsive to, their prescribed narcotics. In another instance, Severino volunteered to care for a patient not formally assigned to her, and diverted pain medication from him before he died. In order to cover up her crimes, Severino misrepresented in VA medical records and tracking systems that the narcotics been properly administered to the patient or, in the case of excess narcotics, had been properly disposed of. On June 18, 2024, Severino pleaded guilty to obtaining controlled substances by fraud or subterfuge. This matter was investigated by the Department of Veterans Affairs, Office of the Inspector General, with the assistance of the DEA New Haven’s Tactical Diversion Squad and the West Haven Police Department. The case was prosecuted by Assistant U.S. Attorney Christopher Lembo.


title: Detroit Man Sentenced to Prison for Federal Drug Crime

body_text: BECKLEY, W.Va. – Evann Robinson, 40, of Detroit, Michigan, was sentenced today to eight years and four months in prison, to be followed by three years of supervised release, for distribution of methamphetamine. According to court documents and statements made in court, on May 9, 2023, Robinson sold a controlled substance containing methamphetamine to a confidential informant in Beckley. On May 15, 2023, law enforcement officers executed a search warrant at a Beckley residence where Robinson was living and seized methamphetamine, fentanyl, cocaine, and $9,350 including $40 in recorded buy money. Robinson has a criminal history that includes prior convictions for assault with intent to do great bodily harm, possession of a firearm while committing a felony, being a felon in possession of a firearm, and prisoner possessing weapons. United States Attorney Will Thompson made the announcement and commended the investigative work of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Beckley/Raleigh County Drug and Violent Crime Unit, which consists of officers from the West Virginia State Police, the Raleigh County Sheriff’s Department, and the Beckley Police Department. Chief United States District Judge Frank W. Volk imposed the sentence. Assistant United States Attorney D. Keith Randolph prosecuted the case. A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 5:23-cr-198. ###


title: Man Sentenced for Conspiring to Steal Mail and Possession of Stolen Mail from New Orleans and Metairie Post Office Boxes

component: USAO - Louisiana, Eastern

body_text: NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced the sentencing of FREDERIC THOMPSON (“THOMPSON”) , age 24, of New Orleans, who previously pled guilty to Conspiring to Steal Mail, in violation of Title 18, United States Code, Section 371, and Possession of Stolen Mail that had been deposited into authorized mail receptacles, in violation of Title 18, United States Code, Section 1708. According to the indictment, on January 30, 2022, THOMPSON conspired with others to steal mail from two locations, the Lakeview Post Office in Orleans Parish and United States Postal Service (USPS) mailboxes located on Metairie Road in Jefferson Parish. One conspirator acted as the driver and another conspirator used a stolen USPS key to steal mail from the two locations, while THOMPSON was seated in the back of the vehicle. After a police chase, the trio were found in possession of approximately 30 pieces of stolen mail. U.S. District Court Judge Jay C. Zainey sentenced THOMPSON to three (3) years probation and a $200 mandatory special assessment fee. U.S. Attorney Evans praised the work of the United States Postal Inspection Service, the Jefferson Parish Sheriff’s Office and the New Orleans Police Department, in investigating this matter. Assistant U.S. Attorney Jon Maestri of the General Crimes Unit is in charge of the prosecution.


title: Founder And Head Of Archegos Capital Management Bill Hwang Sentenced To 18 Years In Prison For Orchestrating Massive Market Manipulation And Fraud Schemes

body_text: Edward Y. Kim, the Acting United States Attorney for the Southern District of New York, announced today that SUNG KOOK (BILL) HWANG, the founder and head of a private investment firm known as Archegos, was sentenced by U.S. District Judge Alvin K. Hellerstein to 18 years in prison concurrently on each count charged for leading a criminal enterprise that manipulated the prices of multiple stocks and defrauded at least nine investment banks. In July 2024, HWANG was convicted following a nine-week jury trial of racketeering conspiracy, securities fraud, market manipulation, and wire fraud. Acting U.S. Attorney Edward Y. Kim said: “Bill Hwang weaponized his personal hedge fund, Archegos, to pursue financial fraud on a national scale. For months on end, Hwang and his coconspirators used an array of lies and manipulative trading strategies to rig the stock market in Hwang’s favor. Hwang’s crimes brought him to the brink of staggering wealth before his fraud collapsed and left investors, banks, and even Hwang’s own employees with billions of dollars in losses. Today’s sentence sends a clear message that criminal manipulation schemes will be met with serious prison sentences.” As reflected in the Indictment, court filings, and the evidence presented at trial: Beginning in 2020, HWANG—along with his co-conspirators, including codefendant Patrick Halligan (Archegos’s Chief Financial Officer)—used the Archegos enterprise to pursue two interrelated criminal schemes, one involving manipulative trading in the marketplace and the other involving false and misleading statements to Archegos’s trading counterparties. Although HWANG held himself out as an investor focused on company fundamentals with a three- to five-year investment horizon, which had been Archegos’s investment approach for years, by the fall of 2020, HWANG spent his time—and nearly all Archegos’s capital—on constant trading in the same core stocks. HWANG began deploying strategies aimed to manipulate, control, and artificially affect the market for securities in Archegos’s portfolio. Those techniques included purchasing or selling securities at particular times of day including marking the price of securities up at the close of trading to trigger payouts to Archegos and trading at times and in a manner to give the false impression of additional interest in the securities, transacting in certain securities in large amounts or high volume, and timing or coordinating certain transactions to maximize impact on the market. HWANG’s manipulative trading was sustained and furthered by lies and misrepresentations made to Archegos’s counterparties. As HWANG’s trading led to large position sizes, Archegos’s counterparties started to impose limits on Archegos’s trading. To enable HWANG to continue to trade the same names at larger sizes, HWANG, Halligan, and others conspired to make repeated, materially false and misleading statements to Archegos’s counterparties about Archegos’s portfolio of securities. These false and misleading statements were designed to fraudulently induce the counterparties into trading with and extending credit to Archegos, enabling and facilitating the market manipulation scheme, and to hide the true risk of doing business with Archegos. By March 2021, HWANG’s manipulative trading scheme—which relied in part on continually increasing the size of Archegos’s positions in a handful of equities—had profoundly reshaped Archegos’s portfolio and risk profile. Now Archegos had concentrated its investments in a number of publicly traded stocks with markets that HWANG found he could distort, including of large companies, such as ViacomCBS and Discovery. Archegos’s portfolio became highly vulnerable to external events that might deflate the artificial prices HWANG had created. In late March 2021, the markets exposed HWANG’s price manipulation. On March 22, 2021, ViacomCBS announced a seasoned equity offering. Following that announcement, on March 23, 2021, HWANG directed nearly a billion dollars in additional purchases of stock in ViacomCBS and other companies whose stock HWANG had manipulated in a final effort to control the prices of those stocks and prevent them from declining and harming the value of his portfolio. On March 24, 2021, using what cash and trading capacity remained, HWANG made one final attempt to reverse market forces, but he failed. When the markets closed, Archegos faced substantial margin calls that it could not meet, causing billions of dollars in losses to the counterparties that had financed HWANG’s trading. Ultimately, the market manipulation and fraud schemes, and the billions of dollars in losses that they caused, victimized a wide swath of market participants, including counterparties that engaged in loans and securities trading with Archegos based on lies and deceit, ordinary investors who purchased and sold the relevant securities at artificial prices, and securities issuers who made business decisions based on the artificial prices of their stocks. The schemes also caused millions of dollars of losses to innocent Archegos employees who had been required to allocate to Archegos a substantial amount of their pay as deferred compensation. * * * In addition to the prison term, HWANG, 60, of Tenafly, New Jersey, was sentenced to three years of supervised release concurrently on each count and ordered to pay more than nine billion dollars in restitution. Halligan, who was convicted at trial alongside HWANG of racketeering conspiracy, securities fraud, and wire fraud, is scheduled to be sentenced on January 27, 2025. Mr. Kim praised the outstanding work of the Federal Bureau of Investigation. This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Matthew Podolsky, Alexandra Rothman, Samuel P. Rothschild, and Andrew Thomas are in charge of the prosecution.


title: AAR CORP to Pay Over $55M To Resolve Foreign Corrupt Practices Act Investigation

component: Criminal Division

body_text: Note : A copy of the non-prosecution agreement and attachments can be found here . AAR CORP. (AAR), a publicly traded aviation services company headquartered in Wood Dale, Illinois, will pay over $55 million to resolve investigations by the Justice Department and Securities and Exchange Commission (SEC) into violations of the Foreign Corrupt Practices Act (FCPA) arising from AAR’s participation in corrupt schemes to pay bribes to government officials in Nepal and South Africa. A former AAR subsidiary executive previously pleaded guilty for his role in the Nepal scheme, and a third-party agent of AAR previously pleaded guilty for his role in the South Africa scheme. AAR entered into an 18-month non-prosecution agreement (NPA) with the Justice Department. According to the company’s admissions in connection with the resolution, between 2015 and 2020, AAR conspired to pay bribes to government officials to obtain and retain business with state-owned airlines in Nepal and South Africa. AAR obtained profits of nearly $24 million as a result of the scheme. “AAR bribed high-level government officials to obtain business with state-owned airlines in Nepal and South Africa and reaped nearly $24 million in illicit profits as a result,” said Chief Counselor Brent Wible of the Justice Department’s Criminal Division. “The Justice Department continues to hold companies and individuals accountable for engaging in international corruption. Today’s resolution also demonstrates how companies that proactively report misconduct, extensively cooperate, and timely and appropriately remediate will receive credit under the Criminal Division’s Corporate Enforcement and Voluntary Self-Disclosure Policy, including in the form of the agreement, the amount of cooperation and remediation credit, and the length of the term.” “Companies competing on a fair and level playing field is a core value that we expect any U.S. company or anyone doing business in the United States to embrace,” said U.S. Attorney Matthew M. Graves for the District of Columbia. “Bribery schemes, whether based inside or outside the United States, harm consumers and companies that are trying to lawfully run their businesses. That is why this office, along with our law enforcement partners, will continue to diligently pursue any individual or company that seeks to profit through corrupt or illegal means.” “AAR, through its bribery of government officials in Nepal and South Africa, violated U.S. law enacted to ensure that U.S. businesses do not engage in foreign corruption,” said Special Agent in Charge William S. Walker of the Homeland Security Investigations (HSI) New York Field Office. “Today’s outcome reflects HSI’s steadfast commitment to enforcing accountability within global commerce. HSI New York will continue to pursue all necessary measures to ensure that those who engage in corrupt practices, regardless of their location or position, are held fully accountable under the law.” In Nepal, AAR corruptly obtained business with Nepal Airlines Corporation, the state-owned airline of Nepal, related to the sale of two Airbus A330-200 aircraft by offering and paying bribes to Nepali officials through various intermediary companies. In South Africa, AAR corruptly obtained the award of an aircraft component support contract with South African Airways Technical, a wholly owned subsidiary of South African Airways, the state-owned airline of South Africa, by corruptly offering and paying bribes to South African officials through a third-party agent. As part of the NPA, AAR agreed to pay a $26,363,029 penalty and $18,568,713 in administrative forfeiture. In addition, AAR will pay $29,236,624 in disgorgement and prejudgment interest as part of the resolution of the SEC’s parallel investigation . The Justice Department has agreed to credit the forfeiture to be paid to the department against disgorgement AAR has agreed to pay to the SEC. Pursuant to the NPA, AAR has agreed, among other things, to continue to cooperate with the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the District of Columbia in any ongoing or future criminal investigations arising during the term of the NPA. In addition, AAR agreed to continue to enhance its compliance program and report to the Justice Department regarding remediation and the implementation of compliance measures during the eighteen-month term of the NPA. The Justice Department reached this resolution with AAR based on a number of factors, including, among others, the nature and seriousness of the offense. AAR self-reported to the department conduct that forms, in part, the basis for the resolution; however, the self-report was not a “voluntary self-disclosure” as defined in the Criminal Division Corporate Enforcement and Voluntary Self-Disclosure Policy (CEP). Prior to the self-report, several English-language articles had been published in media outlets in Nepal and South Africa that described potential irregularities in the relevant contracts in both countries, including that an AAR subsidiary had been summoned by a Nepalese agency investigating irregularities and corruption in connection with the procurement of aircraft. In addition, 12 days before AAR’s self-report, an independent source reported the allegations regarding the Nepal conduct to the department. AAR received credit under the CEP for its cooperation with the department’s investigation, which included (i) self-reporting the conduct that forms, at least in part, the basis for the resolution before AAR was aware the conduct had come to the attention of the department; (ii) promptly providing information obtained through its internal investigation, which allowed the government to preserve and obtain evidence as part of its own independent investigation; (iii) proactively preserving, imaging, and conducting extensive forensic analysis of key electronic evidence, which included imaging mobile devices, recovering deleted documents, forensically recreating attachments from log files, and decrypting recovered chat messages; (iv) making regular and detailed presentations to the department; (v) promptly collecting, analyzing, and organizing voluminous information, including complex financial information; (vi) meeting the department’s requests promptly; (vii) voluntarily making employees, including foreign-based employees, available for interviews; (viii) collecting and producing voluminous relevant documents and translations to the department, including documents located outside the United States; and (ix) producing documents to the department from foreign countries in ways that did not implicate foreign data privacy laws. AAR also engaged in extensive and timely remedial measures including, among other things (i) conducting an enterprise-wide review of all existing high-risk third-party representatives and reducing its use of international sales agents; (ii) enhancing protocols regarding onboarding and vetting of third-party engagements, including heightened diligence and senior-level approvals; (iii) taking employment actions, including promptly separating one employee involved in the relevant conduct and disciplining other employees with oversight responsibilities; (iv) strengthening its anti-corruption compliance program by investing in compliance resources and expanding its compliance function with experienced and qualified personnel, including appointing a Chief Ethics & Compliance Officer and hiring a compliance monitoring manager; (v) implementing a compliance risk assessment program that has enabled AAR to proactively identify new areas of risk; (vi) enhancing public bidding policies and monitoring implementation of those enhancements; (vii) beginning to roll out a messaging application retention tool; (viii) implementing compliance auditing and periodic anti-corruption site reviews; and (ix) engaging in continuous testing, monitoring, and improvement of its compliance program. In light of these considerations, the criminal penalty calculated under the U.S. Sentencing Guidelines reflects a 45% reduction off the applicable guidelines sentence. The Justice Department gave significant weight in evaluating the appropriate disposition of this matter — including the form of the resolution, the reduction in the penalty amount based on cooperation and remediation credit, and the length of the term — to the company’s self-report of the misconduct before the company was aware the conduct had already come to the department’s attention. The Justice Department previously charged two individuals in related matters. Deepak Sharma, a former AAR subsidiary executive, pleaded guilty in the District of Columbia on Aug. 1 to a conspiracy to violate the FCPA for his role in the Nepal scheme. Julian Aires, a third-party agent of AAR, pleaded guilty in the District of Columbia on July 15 to a conspiracy to violate the FCPA for his role in the South Africa scheme. HSI New York is investigating the case. The Justice Department’s Office of International Affairs provided valuable assistance. Acting Assistant Chief Katherine Raut and Trial Attorney Paul Ream of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Madhu Chugh for the District of Columbia are prosecuting the case. The Fraud Section is responsible for investigating and prosecuting FCPA and Foreign Extortion Prevention Act matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal-fraud/foreign-corrupt-practices-act .