title: Former Puerto Rico Mayor Convicted of Accepting Bribes

component: Criminal Division

body_text: A federal jury convicted a former mayor of Guaynabo, Puerto Rico, yesterday for engaging in a bribery scheme. According to court documents and evidence presented at trial, Ángel Pérez-Otero, 52, was involved in a bribery conspiracy in which, from approximately late 2019 through May 2021, he accepted thousands of dollars in cash bribes on a regular basis from the owner of a construction company. In exchange for these payments, Pérez-Otero agreed to obtain and retain contracts for the company and ensured that its invoices were promptly paid. Pérez-Otero was convicted of conspiracy, federal program bribery, and extortion. He is scheduled to be sentenced on Aug. 8 and faces a maximum penalty of 20 years in prison on the extortion charge and 10 years in prison on the bribery charge. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney W. Stephen Muldrow for the District of Puerto Rico, and Special Agent in Charge Joseph González of the FBI San Juan Field Office made the announcement. The FBI San Juan Field Office investigated the case. Trial Attorney Nicholas Cannon of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Myriam Fernández-González for the District of Puerto Rico are prosecuting the case. Trial Attorney Ryan R. Crosswell of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Scott H. Anderson for the District of Puerto Rico assisted in the investigation. This case is part of the Justice Department’s ongoing efforts to combat public corruption by municipal officials in Puerto Rico. In addition to the above matter, the Public Integrity Section and the U.S. Attorney’s Office for the District of Puerto Rico have recently obtained convictions against other former public officials and contractors in the District of Puerto Rico for soliciting and accepting bribes related to municipal contracts.


title: Virginia Man Found Guilty of Charges for Shooting a Man in Northwest Washington

component: USAO - District of Columbia

body_text: WASHINGTON – A jury found Richard Nduba, 39, of Alexandria, Virginia, guilty of firing multiple shots at a man in August 2022 in Northwest Washington D.C., announced U.S. Attorney Matthew M. Graves and Robert J. Contee III, Chief of the Metropolitan Police Department. The verdict was returned on Wednesday, March 22, 2023. The Honorable Erik Christian scheduled sentencing for April 21, 2023. Nduba, 39, was found guilty following a three-day trial in the Superior Court of the District of Columbia, of Assault with a Dangerous Weapon and Possession of a Firearm during the Commission of a Crime of Violence. According to the government’s evidence, on August 10, 2022, the defendant argued with the victim, a friend, outside the Walmart on 99 H Street NW around 7:00pm. After the argument, the victim, who is wheelchair bound, went to the 800 block of 1 st street NW next to the Walmart’s loading dock area to speak on the phone. The defendant circled the block in his rental SUV until he found the victim. Upon finding the victim, the defendant lowered his window, pointed a black handgun at the victim, and shot at the victim twice. The defendant stopped shooting only after the victim acted as if he had been hit and played dead in his wheelchair. Both shots, however, missed the victim. A bullet hole was later discovered in Walmart’s loading dock door, next to where the victim had been sitting at the time of the shooting. This case was investigated by the Metropolitan Police Department. It was investigated, prosecuted. and tried by Assistant U.S. Attorneys Omeed Assefi and Colin Cloherty of the Major Crimes Unit of the U.S. Attorney’s Office for the District of Columbia. Valuable assistance was provided by Assistant U.S. Attorneys Kimberly Nielsen and Kathleen Kern, Paralegal Specialist Debra McPherson, and Litigation Technology Specialist Charlie Bruce.


title: Coindawg Founder Arrested For Laundering Proceeds Of Fraudulently Obtained Small Business Administration Loans

component: USAO - New York, Southern

body_text: Damian Williams, the United States Attorney for the Southern District of New York, and Ivan J. Arvelo, the Special Agent in Charge of the New York Field Office of Homeland Security Investigations (“HSI”), announced today the arrest of CHARLES RILEY CONSTANT, a/k/a “Chuck Constant,” for charges in connection with a scheme to steal and launder over $1 million in fraudulently obtained loans from the Small Business Administration (“SBA”), including the use of fraud proceeds to purchase cryptocurrency ATMs. CONSTANT was arrested yesterday morning and is being presented today before a U.S. Magistrate Judge in the Eastern District of Texas. In connection with CONSTANT’s arrest, law enforcement agents seized, among other things, 18 cryptocurrency ATMs in Texas and Oklahoma that CONSTANT purchased with fraud proceeds to start a cryptocurrency ATM business named “Coindawg LLC,” as well as Coindawg’s website. U.S. Attorney Damian Williams said: “As alleged, Charles Constant helped to launder over $1 million of proceeds from loans that his co-conspirators fraudulently obtained from the SBA. He converted the bulk of the crime proceeds into Bitcoin for his co-conspirators and used a portion of the rest to start his own lucrative cryptocurrency ATM business. Thanks to this Office’s teamwork with the HSI, Constant is now facing serious criminal charges for his alleged crimes. We will continue to hold accountable people who steal funds intended for small businesses that struggled as a result of the COVID-19 pandemic.” HSI Special Agent in Charge Ivan J. Arvelo said: “As alleged, Charles Constant specifically exploited the Small Business Administration’s Economic Injury Disaster Loan program put in place to help our small businesses weather the COVID-19 pandemic, for the purpose of expanding his criminal money laundering enterprise. Constant is accused of defrauding the federal government and robbing U.S. taxpayers with his illicit money-laundering scheme. HSI New York will continue to exhaust every resource at our disposal to ensure criminals like this will be held accountable for their actions.” According to the allegations in the Complaint, which was unsealed today in Manhattan federal court: [1] CHARLES RILEY CONSTANT, a/k/a “Chuck Constant,” knowingly assisted others involved in a scheme to fraudulently obtain over $1 million in loans from the SBA, which CONSTANT and his co-conspirators laundered through Bitcoin transactions. The perpetrators of the fraud against the SBA used false identities and non-existent companies to obtain seven Economic Injury Disaster Loans from the SBA — funds that were intended to help small businesses financially harmed by the COVID-19 pandemic. The loan proceeds were transferred directly from the SBA to a bank account held by C2 LLC, an entity that CONSTANT owned and registered with the U.S. Treasury Department as a money services business. CONSTANT then used approximately $700,000 of the crime proceeds — a portion of which he routed through a second bank account held by C2 LLC — to purchase Bitcoin from a cryptocurrency exchange headquartered in New York City. CONSTANT directed the New York-based exchange to distribute the Bitcoin to his co-conspirators. CONSTANT then stole the remaining $300,000 of fraud proceeds. CONSTANT transferred $53,000 of the $300,000 to a third bank account held by C2 LLC and an additional $98,300 to an account in CONSTANT’s name at a cryptocurrency exchange headquartered in California. Beginning in the fall of 2020, CONSTANT used a portion of these fraud proceeds to purchase, among other things, seven cryptocurrency ATMs (“Crypto ATMs”), cryptocurrency, and promotional services to start a cryptocurrency ATM business named “Coindawg LLC.” CONSTANT used revenue generated by the seven Crypto ATMs to acquire additional Crypto ATMs and more cryptocurrency to expand Coindawg’s operations. To date, Coindawg has exchanged over $3,000,000 worth of cryptocurrency and charged 15% in transaction fees. Below is a photograph of one of the Coindawg Crypto ATMs seized by law enforcement in connection with CONSTANT’s arrest: * * * CONSTANT, 54, of Allen, Texas, is charged with one count of conspiracy to commit money laundering, which carries a maximum sentence of 20 years in prison; one count of theft of public money, which carries a maximum sentence of 10 years in prison; and one count of interstate receipt of stolen money, which carries a maximum sentence of 10 years in prison. The maximum potential sentences 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. Williams praised the investigative work of the HSI. Mr. Williams also thanked the HSI Field Office in Dallas, Texas, for their assistance in the investigation of this case. This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Sarah Lai, Olga I. Zverovich, and Andrew K. Chan are in charge of the prosecution. The charges contained in the Complaint 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 Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described herein should be treated as an allegation.


body_text: SAN JUAN, Puerto Rico –A federal jury convicted a former mayor of Guaynabo, Puerto Rico, yesterday for engaging in a bribery scheme. According to court documents and evidence presented at trial, Ángel Pérez-Otero, 52, was involved in a bribery conspiracy in which, from approximately late 2019 through May 2021, he accepted thousands of dollars in cash bribes on a regular basis from the owner of a construction company. In exchange for these payments, Pérez-Otero agreed to obtain and retain contracts for the company and ensured that its invoices were promptly paid. Pérez-Otero was convicted of conspiracy, federal program bribery, and extortion. He is scheduled to be sentenced on Aug. 8 and faces a maximum penalty of 20 years in prison on the extortion charge and 10 years in prison on the bribery charge. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney W. Stephen Muldrow for the District of Puerto Rico, and Special Agent in Charge Joseph González of the FBI San Juan Field Office made the announcement. The FBI San Juan Field Office investigated the case. Trial Attorney Nicholas Cannon of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Myriam Fernández-González for the District of Puerto Rico are prosecuting the case. Trial Attorney Ryan R. Crosswell of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Scott H. Anderson for the District of Puerto Rico assisted in the investigation. This case is part of the Justice Department’s ongoing efforts to combat public corruption by municipal officials in Puerto Rico. In addition to the above matter, the Public Integrity Section and the U.S. Attorney’s Office for the District of Puerto Rico have recently obtained convictions against other former public officials and contractors in the District of Puerto Rico for soliciting and accepting bribes related to municipal contracts. ###


title: Financial Advisor, Financial Planner, NBA Agent, And Previously Convicted Fraudster Charged With Schemes To Defraud Professional Basketball Players

body_text: Damian Williams, the United States Attorney for the Southern District of New York, and Michael J. Driscoll, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced the unsealing of a six-count Indictment charging DARRYL COHEN, BRIAN GILDER, CHARLES BRISCOE, and CALVIN DARDEN, JR. in connection with two schemes to defraud professional basketball players. COHEN and GILDER were arrested this morning in, respectively, Chatsworth, California, and North Ridge, California, and will be presented later today in the United States District Court for the Central District of California. BRISCOE was arrested this morning in Katy, Texas, and will be presented later today in the United States District Court for the Southern District of Texas. DARDEN, JR. was arrested this morning in Atlanta, Georgia, and will be presented later today in the United States District Court for the Northern District of Georgia. U.S. Attorney Damian Williams said: “As alleged in the indictment, these defendants believed that defrauding their professional athlete clients of millions of dollars would be a layup. That was a huge mistake, and they now face serious criminal charges for their alleged crimes.” FBI Assistant Director Michael J. Driscoll said: “As alleged, the defendants engaged in schemes to defraud four professional basketball players of more than $13 million. Today’s actions should serve as an example to others who engage in criminal activity to serve their own greedy financial desires at the expense of others – the FBI is committed to bringing you to justice.” As alleged in the Indictment: [1] COHEN and GILDER From at least in or about 2017 through in or about 2020, COHEN, a registered investment adviser, orchestrated a scheme to defraud three different professional basketball player clients (“Athlete-1,” “Athlete-2,” and “Athlete-3,” respectively) of a total of over $5 million by taking advantage of his advisory and fiduciary relationships with those clients. COHEN conspired with BRIAN GILDER, an independent financial planner whom COHEN encouraged his clients to work with and who assisted in tax preparation for Athletes-1, -2, and -3. First, COHEN and GILDER fraudulently induced Athletes-1, -2, and -3 to purchase viatical life insurance policies at massive markups. COHEN and GILDER did not disclose that GILDER had arranged for a purported law firm (“Law Firm-1”) that he controlled to purchase the polices and then to sell them to the athletes at markups of 222%, 310%, and 244%, respectively. Indeed, Law Firm-1 made approximately $4.5 million in profit from the sale of the policies to COHEN and GILDER’s athlete clients. COHEN and GILDER used a substantial portion of these illicit proceeds to pay their own personal expenses. In particular: (i) GILDER used approximately $257,479 of the funds to pay off a mortgage he owed; (ii) COHEN used approximately $178,462 of the funds to renovate his home and to perform work on his pool; (iii) COHEN used approximately $67,500 of the funds to pay off his personal credit card bill; and (iv) COHEN transferred approximately $200,000 of the funds to an individual with whom he was in a romantic relationship. Second, COHEN directed that $500,000 be transferred from the accounts of Athletes-2 and -3 as purported donations to a non-profit organization. COHEN then used approximately $238,000 of the funds purportedly donated to the non-profit to build athletic training facilities in the backyard of his home. Athletes-2 and -3 never, in fact, authorized any transfers of their funds to the non-profit organization. When Athlete-2 confronted COHEN about the donations, COHEN told Athlete-2 in a text message, in substance and in part, that Athlete-2’s money had “[h]elped a lot of future prospects and a lot of underprivileged kids.” COHEN did not disclose to Athlete-2 that a substantial portion of Athlete-2’s donations had, in fact, been used to build an athletic training facility in COHEN’s backyard. Third, COHEN and GILDER used a sports agency and another law firm to channel approximately $328,125 of Athlete-2’s money to repay a former professional baseball player (“Athlete-4”), who was a disgruntled client of COHEN’s. Athlete-4 had expressed concern to COHEN about investments and loans that COHEN made on Athlete‑4’s behalf and demanded to be repaid. On or about February 19, 2020, in the midst of making the payments of Athlete-2’s money to Athlete-4, COHEN messaged GILDER, “We gotta send [Athlete-4] more to get rid of him.” Athlete-2 did not authorize the use of funds from his account to repay debts owed by COHEN to Athlete-4. BRISCOE and DARDEN, JR. BRISCOE and DARDEN, JR. also defrauded professional basketball players. BRISCOE was an NBA agent, and DARDEN, JR. had previously pled guilty to wire fraud in the Southern District of New York. BRISCOE served as the sports agent of a professional basketball player (“Athlete-5”). Athlete-5 began discussing the possibility of purchasing a professional women’s basketball team (“Team-1”), and BRISCOE introduced Athlete-5 to DARDEN, JR. Because Athlete-5 was not permitted to purchase Team-1 as an active professional basketball league player, BRISCOE, DARDEN, JR., and a relative of DARDEN, JR., who serves or has served on the boards of multiple public companies (“Relative-1”), discussed with Athlete-5 an arrangement in which Athlete-5 would indirectly purchase Team-1 through a company (“Company-1”) purportedly controlled by Relative-1. BRISCOE provided Athlete-5 with a slide deck outlining a “vision plan” for the purchase of Team-1 by Company-1. The “vision plan” claimed, among other things, that Company-1 was led by Relative-1 and was advised by a board including several prominent individuals in sports, entertainment, and corporate America. In truth and in fact, and as BRISCOE and DARDEN, JR. well knew, at least two of those individuals never served as advisors to Company-1. Between in or about November 2020 and in or about December 2020, Athlete‑5 caused $7 million to be transferred to a bank account controlled by DARDEN, JR. Athlete-5 understood that these payments were in order for Athlete-5 to purchase and become full owner of Team-1. In truth and in fact, none of the money Athlete-5 sent went toward the purchase of Team-1, and Athete-5 did not become an owner of Team-1. Instead, from approximately November 2020 until approximately December 2021, DARDEN, JR. transferred more than $1 million of the funds to BRISCOE. In addition, DARDEN, JR. retained a substantial portion of the funds for himself and his relatives, sending more than $500,000 to a relative and more than $400,000 to a cryptocurrency exchange for his benefit. DARDEN, JR. also used some of the funds to pay for luxury goods for himself, including approximately $880,000 to luxury car companies, more than $300,000 to art galleries, and more than $100,000 to purchase a piano, among other things. DARDEN, JR. also spent in excess of approximately $1 million in connection with purchasing and making improvements to a residence, including, among other things, the addition of a koi pond. BRISCOE and DARDEN, JR. also worked together to defraud Athlete-2. BRISCOE, in consultation with COHEN and GILDER, was purportedly building a new sports agency (“Agency-1”) funded by Athlete-2. BRISCOE convinced Athlete-2 that BRISCOE had signed, through Agency-1, a highly touted athlete preparing for a professional basketball draft (“Athlete-6”). In fact, Athlete-6 had not signed with BRISCOE or Agency-1. Rather, BRISCOE forged the signature of Athlete-6 and Athlete-6’s mother on a player-agent contract and sent that forged contract to Athlete-2. BRISCOE then directed Athlete-2 to transfer $1 million to BRISCOE as a “loan” to Athlete-6 while Athlete-6 prepared for the draft. In fact, Athlete-6 never had any conversations with BRISCOE or DARDEN, JR. about signing with BRISCOE or about receiving a $1 million loan, and Athlete-6 never received any part of the $1 million loan. Instead, BRISCOE used approximately $306,642 of the funds transferred by Athlete-2 to pay off a debt that BRISCOE had personally incurred and also transferred approximately $544,000 to a bank account controlled by DARDEN, JR. * * * COHEN, 49, of Chatsworth, California, and Las Vegas, Nevada, GILDER, 49, of North Ridge, California, BRISCOE, 35, of Katy, Texas, and DARDEN, JR. 49, of Atlanta, Georgia, are each charged with one count of conspiracy to commit wire fraud and one count of wire fraud. Each count carries a maximum sentence of 20 years in prison. COHEN is also charged with one count of investment advisor fraud, which carries a maximum sentence of five years in prison, and BRISCOE is also charged with one count of aggravated identity theft, which carries a mandatory prison term of two years. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge. Mr. Williams praised the outstanding work of the FBI. Mr. Williams also thanked the United States Attorney’s Offices for the Central District of California, the Northern District of Georgia, and the Southern District of Texas for their assistance in the investigation. Mr. Williams further thanked the U.S. Securities and Exchange Commission, which today filed a parallel civil action against COHEN, for its assistance and cooperation in this investigation. The case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Katherine Reilly and Kevin Mead are in charge of the prosecution. The charges contained in the Indictment are merely accusations, and the defendants are 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 therein should be treated as an allegation.


title: Justice Department Recognizes One-Year Anniversary of the PAVE Task Force

component: Office of the Associate Attorney General

body_text: The Justice Department today is joining interagency partners across the Biden-Harris Administration in highlighting the progress made to ensure that every American who buys a home has the same opportunities to build generational wealth through homeownership. The White House released a roundup of highlights of what the Interagency Task Force on Property Appraisal and Valuation Equity (PAVE) accomplished over the last year. The Department of Justice is an engaged member of the Task Force, working to reduce barriers to homeownership and erode the influence of bias on the entire U.S. economy. “The Department of Justice celebrates PAVE’s many significant accomplishments over the past year to identify and address illegal discrimination in appraisals,” said Associate Attorney General Vanita Gupta. “For too long, appraisal bias has created yet another obstacle to homeownership and all the benefits homeownership offers, including financial stability and a path to developing intergenerational wealth. The department remains steadfast in its commitment to combat appraisal discrimination and to promote fair and accurate appraisals for all families, regardless of their race or ethnicity.” One year ago today, the PAVE – led by U.S. Department of Housing and Urban Development (HUD) Secretary Marcia L. Fudge and White House Domestic Policy Advisor Ambassador Susan Rice – released the PAVE Action Plan, the most wide-ranging set of commitments ever announced to advance equity in the home appraisal process. More information on the PAVE Task Force’s progress and work can be found in this fact sheet .


title: CEO Of Paycheck Protection Program Lender MBE Capital Pleads Guilty In Connection With Fraudulent Loan And Lender Applications

body_text: Damian Williams, the United States Attorney for the Southern District of New York, announced today that RAFAEL MARTINEZ, the CEO of MBE Capital Partners, LLC, pled guilty to conspiring to commit wire fraud in connection with loan and lender applications submitted through the Paycheck Protection Program (the “PPP”) administered by the U.S. Small Business Administration (the “SBA”). MARTINEZ pled guilty before United States District Judge Lewis J. Liman, to whom his case is assigned. U.S. Attorney Damian Williams said: “In the depths of the COVID-19 pandemic, Martinez lied to get money that was supposed to help people. His abuse of the system during a terrible time has now been brought to light. Martinez took advantage of his employees, a tax preparer, and the public at large — all to fund a lavish lifestyle of cars, jets, and fancy homes. Let me be clear, this Office will not tolerate such conduct and will continue to bring to justice those who put their greed above the law.” According to the allegations in the Complaint, court filings, and statements made during plea proceedings: MARTINEZ used false representations and documents to fraudulently obtain the approval of the SBA for his company, MBE Capital Partners, LLC (“MBE”), to be a non-bank lender through the PPP. He engaged in this criminal conduct to fraudulently secure hundreds of millions of dollars in capital for PPP loans and, ultimately, to collect more than approximately $71 million in lender fees. In addition, MARTINEZ engaged in a scheme to obtain a PPP loan for MBE in the amount of approximately $283,764 through false statements regarding the number of employees of MBE and the wages paid to MBE employees and using the forged signature of MBE’s tax preparer. At all relevant times, MARTINEZ has been the CEO and primary owner of MBE, a New York limited liability company formed in or about March 2015. Republic Group, LLC, a/k/a Republic Group Parts, LLC (“Republic Group”), which is owned and controlled by MARTINEZ, serves as the holding company for MBE and conducts business as MBE. According to MBE’s website, “For over 20 years, MBE Capital Partners has been a leading provider of financing solutions for small and diverse businesses . . . In 2019, we financed over $1.7 billion in public and private debt and we funded over 35,000 PPP loans worth $800M.” On or about April 5, 2020, MARTINEZ applied to a financial institution for a government-guaranteed loan for Republic Group, through the SBA’s PPP. In connection with the loan application, MARTINEZ represented that MBE had as many as 15 employees and an average monthly payroll of approximately $119,390 in 2019. In fact, however, from in or about April 2018 through in or about April 2020, MBE had at most four employees who had a total average monthly payroll of no more $25,000. In order to support the false representations made by MARTINEZ in the loan application about the number of employees at and the wages paid by MBE, MARTINEZ submitted fraudulent and doctored tax records that contained the forged signature of a tax preparer located in Manhattan, New York (the “Tax Preparer”). Based on the false documentation provided by MARTINEZ, MBE was approved for a PPP loan in the amount of approximately $283,764, which was disbursed to a bank account controlled by MARTINEZ. A majority of the loan proceeds do not appear to have been used for payroll for employees of MBE or other business expenses. On or about April 9, 2020, within five days of applying for the PPP loan referenced above, MARTINEZ submitted an application to the SBA for MBE to become a non-bank PPP lender. As part of the PPP lender application process, MARTINEZ represented that MBE had originated and serviced over $3.8 billion in business loans or other commercial financial receivables for the three-year period from in or about 2017 through in or about 2019 and submitted fraudulent financial statements that purported to be audited by the Tax Preparer’s firm for the years 2018 and 2019. Based on the false information provided by MARTINEZ to the SBA, MBE was approved as a non-bank lender for PPP loans. On or about April 27, 2020, MARTINEZ submitted various documents, including the same fraudulent audited financial statements for 2019 provided to the SBA, to a life insurance company (the “Company”) as part of a proposed partnership to fund PPP loans for minority and women-owned small businesses. On or about May 13, 2020, the Company provided MBE with $100 million to fund PPP loans, which MBE in turn used as collateral to borrow additional capital of approximately $832 million through the Payment Protection Program Liquidity Facility (“PPPLF”) with the Federal Reserve. As a result of the above fraudulent misrepresentations, MARTINEZ, through his company MBE, became an approved PPP lender and issued approximately $823 million in PPP loans to approximately 36,600 businesses. These loans earned MARTINEZ a total of approximately $71.3 million in fees. MARTINEZ spent the proceeds from his criminal conduct on, among other things, the purchase of a villa in the Dominican Republic for over $10 million, a $3.5 million mansion located in Franklin Lakes, New Jersey, a chartered jet service, and several luxury vehicles, including a 2018 Porsche 911 Turbo, a 2017 Ferrari 488 Spider, a 2017 Bentley Continental GT, a BMW 750, and a 1962 Mercedes Benz 190. * * * MARTINEZ, 57, of Franklin Lakes, New Jersey, pled guilty to one count of conspiracy to commit wire fraud, which carries a maximum sentence of five years in prison. The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. As part of his plea agreement, MARTINEZ agreed to pay restitution in the amount of $71,711,893.07 and to forfeit $44,546,712.94, including more than $15 million previously seized by law enforcement, properties in New Jersey and the Dominican Republic, and five luxury vehicles. Mr. Williams praised the outstanding investigative work of the Internal Revenue Service, Criminal Investigation; U.S. Small Business Administration, Office of Inspector General; and the Office of Inspector General for the Board of Governors of the Federal Reserve System and the Bureau of Consumer Financial Protection, Eastern Region. This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Micah Fergenson, Katherine Reilly, and Steven Kochevar are in charge of the prosecution.


title: U.S. Attorney’s Office Resolves ADA Complaint Alleging That Local Doctor’s Office Failed to Provide Sign Language Interpreter

component: USAO - Michigan, Eastern

body_text: DETROIT –The United States Attorney’s Office for the Eastern District of Michigan resolved its investigation of Dearborn Obstetrics and Gynecology, P.C. The complainant, who is deaf and utilizes American Sign Language (ASL) as her primary means of communication, alleged that Dearborn Obstetrics failed to provide her with free ASL interpretation services and dismissed her as a patient due to her disability. The voluntary resolution agreement between the U.S. Attorney’s Office, the U.S. Department of Health and Human Services Office for Civil Rights, and Dearborn Obstetrics requires the doctor’s office to fully comply with the non-discrimination requirements of the Americans with Disabilities Act of 1990 (ADA). The ADA protects the rights of all individuals, regardless of disability, to fully and equally enjoy the benefits and services offered by places of public accommodation, which includes medical practices. It requires such places of public accommodation to provide the necessary auxiliary aids and services to ensure that communication with their patients is effective. The agreement emphasizes the practice’s commitment to ADA compliance going forward. Consistent with the ADA, the agreement requires Dearborn Obstetrics to provide ASL interpreters and other auxiliary aids and services free of charge when necessary. “Individuals who have disabilities should not face additional barriers when accessing medical care,” U.S. Attorney Dawn N. Ison said. “To prevent such barriers, the Americans with Disabilities Act requires effective communication with patients who are deaf or hard of hearing, such as the ASL interpreter that this patient needed.” Under the agreement, Dearborn Obstetrics will adopt new ADA policies and practices, train its staff on those polices, report any future complaints from individuals who have disabilities to the U.S. Attorney’s Office, and provide monetary compensation to the complainant. The U.S. Attorney’s Office’s investigation was led by AUSA Michael El-Zein, a member of the Eastern District’s Civil Rights Unit. The full and fair enforcement of the ADA is a priority of the U.S. Attorney’s Office for the Eastern District of Michigan. The Civil Rights Unit was established in 2010 with the mission of prioritizing federal civil rights enforcement. For more information on the Office’s civil rights efforts, including a copy of the agreement, please visit https://www.justice.gov/usao-edmi/programs/civil-rights . Individuals who believe they have been subjected to discrimination or have experienced a civil rights violation can submit a complaint with the U.S. Attorney’s Office by email at usamie.civilrights@usdoj.gov or by phone at (313) 226-9151. Complaints can also be submitted to the Civil Rights Division through its complaint portal .


title: Columbus man faces 25-year prison sentence after conviction of crimes related to violent armed robbery

component: USAO - Ohio, Southern

body_text: COLUMBUS, Ohio – A U.S. District Court jury has convicted Kevin Daniels, 45, of Columbus, of crimes he committed during the armed robbery of a mobile phone store in November 2021. Because of prior criminal convictions, Daniels faces at least 25 years in prison. According to trial testimony and evidence, Daniels entered a mobile phone store on North High Street in Columbus about 7:30 p.m. on Nov. 26, 2021. He brandished a semi-automatic handgun in front of the two clerks, held them at gunpoint, and demanded they give him the phones in the safe and any cash they had in the store. After the clerks handed Daniels two bags of phones and cash, he sprayed them with chemical mace, temporarily blinding them. Daniels fled out the store’s back door and drove away. The store clerks cleared their vision enough to call 911. Columbus Police identified the suspect’s car and arrested Daniels on the east side after a high-speed chase along neighborhood streets. A federal grand jury indicted Daniels in December 2021, charging him with interfering with interstate commerce by robbery (the Hobbs Act), use of a firearm in a crime of violence, and possession of a firearm by a prohibited person. Daniels has a prior federal firearms conviction in Columbus which means he faces a sentence of at least 25 years in prison. Daniels will be sentenced after the court conducts a pre-sentencing investigation. Kenneth L. Parker, United States Attorney for the Southern District of Ohio; Daryl S. McCormick, Special Agent in Charge, U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF); and Columbus Police Chief Elaine Bryant announced the verdict reached at the conclusion of a trial before U.S. District Judge Michael Watson on March 21. Assistant United States Attorneys S. Courter Shimeall and Nicole Pakiz are representing the United States in this case. # # #


title: New York Doctor Who Performed Unnecessary Back Surgeries As Part Of Trip-And-Fall Fraud Scheme Sentenced To 36 Months In Prison

body_text: Damian Williams, the United States Attorney for the Southern District of New York, announced that SADY RIBEIRO, a New York-licensed pain management doctor, was sentenced today to 36 months in prison for his participation in a scheme to obtain fraudulent insurance reimbursements and other compensation from fraudulent trip-and-fall accidents. U.S. District Judge Sidney H. Stein imposed today’s sentence. U.S. Attorney Damian Williams said: “Sady Ribeiro abused his professional license and broke his vow to do no harm by performing scores of medically unnecessary, invasive surgeries to increase the value of fraudulent trip-and-fall lawsuits. In carrying out the scheme, Ribeiro and his co-conspirators preyed upon the most vulnerable members of society – many of whom were poor, drug addicts, or homeless – in order to enrich themselves. Ribeiro now faces serious penalties for his callous crime.” According to the Indictment, the Superseding Information, evidence presented in court, and statements made in court: RIBEIRO, among others, was involved in an extensive fraud scheme through which fraud scheme participants defrauded businesses and insurance companies by staging trip-and-fall accidents and filing fraudulent lawsuits arising from those staged trip-and-fall accidents. The fraud scheme participants recruited individuals (the “Patients”) to stage or falsely claim to have suffered trip-and-fall accidents at particular locations throughout the New York City area (the “Accident Sites”). In the course of the fraud scheme, scheme participants recruited more than 400 Patients. Members of the fraud scheme often recruited individuals who were extremely poor as Patients. For example, it was common for Patients to ask for food when they would appear for their intake meetings with the lawyers. Many of the Patients did not have sufficient clothing to keep them warm during the wintertime and had poor-quality shoes. Members of the fraud scheme also recruited Patients who were drug addicts, and it was common for scheme participants to recruit Patients from homeless shelters in New York City. In the beginning, scheme participants would instruct Patients to claim they had tripped and fallen at a particular location, when in fact, the Patients had suffered no such accidents. Eventually, at the direction of the lawyers who filed fraudulent lawsuits on behalf of the Patients, scheme participants began to instruct Patients to stage trip-and-fall accidents, i.e., to go to a location and deliberately fall. Common Accident Sites used during the fraud scheme included cellar doors, cracks in concrete sidewalks, and purported “potholes.” After the staged trip-and-fall accidents, Patients were referred to specific attorneys who would file personal injury lawsuits (the “Fraudulent Lawsuits”) against the owners of the Accident Sites and/or insurance companies of the owners of the accident sites (the “Victims”). The Fraudulent Lawsuits did not disclose that the Patients had deliberately fallen at the accident sites or, in some cases, had not fallen at all. During the course of the fraud scheme, the defendants, together with others known and unknown, attempted to defraud the Victims of more than $31,000,000. The Patients were also instructed to receive ongoing chiropractic and medical treatment from certain chiropractors and doctors, including RIBEIRO. The fraud scheme participants advised the Patients that if they intended to continue with their lawsuits, they were required to undergo surgery. As an incentive to getting surgery, the recruited Patients were offered a payment typically between $1,000 and $1,500 after they completed surgery (“Post-Surgery Payments”). Patients generally were told to undergo two surgeries. Doctors in the fraud scheme, including RIBEIRO, were expected to, and in fact did, conduct these surgeries, such as discectomies, regardless of the legitimate medical needs of the Patients. RIBEIRO performed discectomies, among other medical procedures, on more than 200 Patients. To maximize his patient base, RIBEIRO paid participants cash kickbacks in exchange for patient referrals. * * * In addition to the prison term, RIBEIRO, 72, of New York, New York, was sentenced to three years of supervised release. Mr. Williams praised the outstanding investigative work of the Federal Bureau of Investigation. Mr. Williams also thanked the National Insurance Crime Bureau for their assistance in the investigation. This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Nicholas Chiuchiolo, Nicholas Folly, Danielle Kudla, and Alexandra Rothman are in charge of the prosecution.


title: North Providence Man Sentenced to Thirty Years in Federal Prison for Sexual Exploitation of Minors, Possession of Child Pornography

component: Federal Bureau of Investigation (FBI)

body_text: PROVIDENCE – A North Providence man who previously admitted to a federal judge that he coerced and sexually assaulted two minor females, assaults that he recorded and retained on his cell phone, was sentenced today to thirty years in federal prison, announced United States Attorney Zachary A. Cunha. In pleading guilty to two counts of sexual exploitation of a minor and one count of possession of child pornography, Francis Scott, 42, admitted that on February 14, 2017, while falsely posing as a ride-share driver, he offered a ride to a 15-year-old girl who requested that she be brought to her Providence school. Rather than driving her to the school, Scott drove the girl to a secluded area behind some commercial buildings where, after taking her cell phone from her, he coerced and sexually assaulted her. Scott recorded the assault on his cell phone. Additionally, Scott admitted to coercing and sexually assaulting a 17-year-old female months earlier. Scott admitted that after he offered the 17-year-old female a ride, he provided her with marijuana and sexually assaulted her. The victim told police that, in addition to providing her with marijuana, Scott provided her with alcohol, and that she felt drugged before passing out. Scott recorded the sexual assault on his cell phone. “The degradation, exploitation, and depravity represented by this defendant’s abuse of his victims - and his recording of those acts for his own obscene enjoyment, are contemptible,” remarked U.S. Attorney Cunha. “Today’s sentence should serve notice that we will bring to bear every law enforcement resource to address this kind of appalling abuse of children.” According to court documents, the Providence Police Major Crimes Unit, the Providence Police Special Victims Unit, and the FBI’s Child Exploitation Unit also discovered videos allegedly filmed by Scott of him engaging in sex acts with numerous unidentified women, some of whom appear in the videos to be unconscious or semi-conscious. Scott was sentenced today by U.S. District Court Judge William E. Smith to 360 months of incarceration in federal prison to be followed by 20 years of federal supervised release. Additional charges against Scott are pending in Rhode Island state court. The case in U.S. District Court was prosecuted by Assistant U.S. Attorney Denise M. Barton. United States Attorney Cunha thanks the Rhode Island Attorney General’s Office for their assistance in preparing the case charged in federal court. ###


title: Two Doctors Convicted for Unnecessary Urinalysis Testing Scheme

body_text: A federal jury convicted two doctors today for their involvement in a scheme to commit health care fraud. According to court documents and evidence presented at trial, Dr. William Lawrence Siefert, 69, of Dayton, Ohio, and Dr. Timothy Ehn, 50, of Union, Kentucky, orchestrated their health care fraud scheme through Northern Kentucky Center for Pain Relief, a pain clinic in Florence, Kentucky. Siefert, a medical doctor, was employed by the clinic, and Ehn, a chiropractor, was the clinic’s owner. Siefert and Ehn engaged in a scheme to bill Medicaid for millions of dollars in medically unnecessary urinalysis testing for their patients, which included urinalysis testing purportedly conducted on faulty machinery. Siefert and Ehn were each convicted of health care fraud. Ehn was additionally convicted of conspiracy to commit health care fraud. Siefert and Ehn are both scheduled to be sentenced on Sept. 20. Siefert faces a maximum penalty of 10 years in prison. Ehn faces a maximum penalty of 10 years in prison on each of the health care fraud conspiracy and health care fraud counts. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney Carlton S. Shier IV for the Eastern District of Kentucky, Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division, DEA Administrator Anne Milgram, Special Agent in Charge Tamala E. Miles of the Department of Health and Human Services Office of Inspector General (HHS-OIG), and Kentucky Attorney General Daniel Cameron made the announcement. The FBI, DEA, HHS-OIG, and Kentucky Medicaid Fraud Control Unit investigated the case. Trial Attorneys Dermot Lynch, Lindsey Carson, and Assistant Chief Lauren Kootman of the Criminal Division’s Fraud Section are prosecuting the case. The Fraud Section leads the Appalachian Regional Prescription Opioid (ARPO) Strike Force. Since its inception in late 2018, ARPO has partnered with federal and state law enforcement agencies and U.S. Attorneys’ Offices throughout Alabama, Kentucky, Ohio, Virginia, Tennessee, and West Virginia to prosecute medical professionals and others involved in the illegal prescription and distribution of opioids. Over the past three years, ARPO has charged over 115 defendants collectively responsible for issuing prescriptions for over 115 million controlled substance pills. To date, more than 60 ARPO defendants have been convicted. More information can be found at https://www.justice.gov/criminal-fraud/health-care-fraud-unit .


title: Man Gets Prison Time for Meth Trafficking

component: USAO - Kansas

body_text: KANSAS CIY, KAN. – A Kansas man who led police on a high-speed chase was sentenced to 195 months in prison for drug trafficking. According to court documents, in October 2022, Russell Loomis, 50, of Kansas City, Kansas, pleaded guilty to one count of possession with intent to distribute more than 50 grams of methamphetamine. In September 2019, Loomis went to a home in Kansas City, Kansas, to deliver approximately 86 grams of methamphetamine in what was a controlled buy set up by the Drug Enforcement Administration (DEA). Loomis drove away from the residence, and a short time later the Kansas City, Missouri police attempted to pull him over. Loomis refused to stop and initiated a chase in which multiple law enforcement agencies and an aerial unit joined in the pursuit. Loomis struck two DEA vehicles, a Kansas Highway Patrol vehicle, and a Kansas Department of Transportation dump truck before eventually losing control and crashing. He was then taken into custody. Law enforcement officers found 150.6 grams of methamphetamine and guns in his vehicle. The Drug Enforcement Administration (DEA), the Kansas City, Kansas Police Department, the Kansas Highway Patrol, and the Olathe Police Department investigated the case. Assistant U.S. Attorneys Faiza Alhambra, Trent Krug, and Michelle McFarlane prosecuted the case. ###


title: Upper Marlboro Fraudster Sentenced to More Than Nine Years in Federal Prison for His Role in a $28 Million Ponzi Scheme Involving “1st Million Dollars”

component: USAO - Maryland

body_text: Greenbelt , Maryland – U.S. District Judge Theodore D. Chuang today sentenced John Erasmus Frimpong, age 42, of Upper Marlboro, Maryland, to 114 months in federal prison, followed by three years of supervised release, for conspiracy to commit wire fraud, conspiracy to commit securities fraud, and securities fraud, in connection with a $28 million Ponzi scheme involving 1st Million, a purported wealth management and financial literacy company. Judge Chuang also ordered Frimpong to pay restitution, along with his co-defendants, in the full amount of the actual, total loss, including (1) $16,664,020 for the full amount of the victims’ losses relating to the 1st Million scheme to defraud; and (2) $797,775 for the full amount of losses caused by Frimpong’s separate scheme in which he contracted directly with individual victims purporting to invest on their behalf. The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office; Special Agent in Charge Matthew R. Stohler of the United States Secret Service - Washington Field Office; and Postal Inspector in Charge Damon E. Wood of the U.S. Postal Inspection Service - Washington According to his plea agreement, Frimpong and his co-conspirators operated a Ponzi scheme through a Delaware incorporated business named The Smart Partners LLC, doing business as 1st Million LLC or 1st Million Dollars (“1st Million”). 1st Million presented itself as a wealth management and financial literacy company. Frimpong acted as 1st Million’s “Managing Partner” and “Chief Marketing Operator” and co-defendant Arley Ray Johnson acted as 1st Million’s “Chief Operating Officer” or “Director of Operations.” Frimpong admitted that he made false and misleading representations to potential investors as to the nature and safety of the investments in 1st Million, the rates of return, and the experience, training and licensure of 1st Million and its principals. Specifically, Frimpong and his co-conspirators falsely claimed they would be investing victims’ money and that investors were being paid using the profits generated by the trading. Frimpong and other conspirators also falsely promised investors that their principal would be protected in a “trust” and returned in full upon the completion of the investment, regardless of market volatility. Frimpong and his co-conspirators further falsely promised extremely high rates of return. Many of these false promises were repeated not only by Frimpong, but also by “agents” who were given higher rates of return for bringing in investors. Frimpong also falsely told investors that he and 1st Million were “licensed” traders, and in compliance with all laws and U.S. Securities and Exchange Commission regulations. In reality, Frimpong and his co-conspirators did not use investor funds for trading, nor did they place investor principal—or any investor funds—into a trust account. In fact, victim funds were not placed in a trust account or otherwise guaranteed. Neither Frimpong, nor anyone else at 1st Million had a license to offer securities or trade currency. In addition, Frimpong and his co-defendants falsely claimed that 1st Million was financially healthy and earning astronomical profits, but 1st Million’s accounts were frequently overdrawn and 1st Million had substantial cash flow problems, all of which Frimpong and his co-conspirators concealed from investors. Frimpong and his co-conspirators used investor funds for personal gain, including cash and cryptocurrency transfers to themselves and family members. Frimpong and the co-conspirators used some investor funds to keep the scheme afloat, including by using investor funds to make payments to existing investors, leading those investors to believe that they were receiving “returns” on their investments as they had been promised. Frimpong and his co-defendant also used investor funds to pay office expenditures and fund lavish events at hotels in order to recruit additional investors. As detailed in the plea agreement, Frimpong and his co-conspirators fraudulently solicited over $28.3 million from over 1,200 victims across the United States, including in Maryland, Texas, Florida, New York and Georgia. By Spring 2019, 1st Million’s accounts were often overdrawn by hundreds of thousands of dollars, and some of the checks 1st Million sent to pay investors monthly returns were returned by the bank due to insufficient funds. Nevertheless, Frimpong continued to solicit funds from existing investors, as well as new investors, and failed to tell any of these potential investors of 1st Million’s financial problems. Ultimately, the scheme collapsed in May 2019 and hundreds of 1st Million investors collectively lost millions of dollars. As the scheme started to collapse in the spring of 2019, Frimpong began his own separate scheme in which he contracted directly with individuals to invest on their behalf, again falsely promising to invest the money in foreign exchange, falsely promising sky-high returns, and falsely telling his clients that he was a duly-licensed trader. Frimpong admitted that he invested very little of these clients’ money and instead used hundreds of thousands of dollars of fraudulently obtained investment proceeds to fund his own lifestyle. Through this separate scheme, Frimpong misappropriated at least $1,499,751 in U.S. currency from individual victim investors. Arley Ray Johnson, age 63, of Bowie, Maryland, was sentenced in January to78 months in federal prison for his role in the fraud scheme. Dennis Jali fled the United States in May 2019, but has since been arrested in South Africa. Separate civil actions filed against Frimpong and his co-defendants by the Securities and Exchange Commission and the U.S. Commodity Futures Trading Commission remain pending. United States Attorney Erek L. Barron commended the FBI, the U.S. Secret Service, and the U.S. Postal Inspection Service for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Caitlin R. Cottingham and Jennifer L. Wine, who are prosecuting the case. For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/report-fraud . # # #


title: Florida Man Sentenced to Six Years for Transporting Narcotics on a Memphis Bound Airplane

component: USAO - Tennessee, Western

body_text: Memphis, TN – Rashid James-Wooten, 29, formerly of Florida, has been sentenced to 72 months in federal prison for possession with intent to distribute fentanyl. United States Attorney Kevin R. Ritz announced the sentence today. According to United States Attorney Ritz and information presented in court, on September 8, 2021, detectives with the Memphis Police Department’s Organized Crime Unit received information that narcotics were possibly on a flight from Los Angeles to Memphis. Investigators used a drug-sniffing dog, which gave a positive alert on a suitcase that was owned by Rashid James-Wooten. A search of the suitcase revealed 996 grams of fentanyl, 4,472 grams of methamphetamine, and 1,220 grams of marijuana. James-Wooten was placed into custody after inquiring at baggage claim about his lost luggage. James-Wooten pled guilty to the offense. United States District Judge John T. Fowlkes Jr., sentenced James-Wooten to six years’ imprisonment, to be followed by three years of supervised release. There is no parole in the federal system. This prosecution is part of an extensive investigation by the Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF is a joint federal, state, and local cooperative approach to combat drug trafficking organizations and organized criminal enterprises, targeting national and regional level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets. This case was investigated by the Memphis Police Department Organized Crime Unit, the Drug Enforcement Administration, Memphis Airport Police, and United States Customs and Border Protection. United States Attorney Kevin Ritz thanked Assistant United States Attorney Michelle Kimbril-Parks, who prosecuted this case, as well as the law enforcement partners who investigated the case. ### For more information, please contact Public Information Officer Cherri Green at (901) 544-4231 or cherri.green@usdoj.gov. Follow @WDTNNews on Twitter for office news and updates.


title: Dripping Springs Woman Sentenced for Defrauding VA, SSA of more than $500K

component: USAO - Texas, Western

body_text: SAN ANTONIO – A Dripping Springs woman was sentenced in a federal court in San Antonio today to 46 months in prison and ordered to pay $501,709.54 in restitution for defrauding the Department of Veterans Affairs (VA) and the Social Security Administration (SSA) of more than $500,000. According to court documents, Josephine Casandra Perez-Gorda, 40, defrauded the VA and SSA by overstating the severity and extent of her spouse’s disability from October 2011 through August 2017. Mr. Perez-Gorda, now deceased, was an Army veteran who participated in the fraud. The couple claimed Mr. Perez-Gorda was paralyzed from the waist down from an injury he suffered while on active duty. The ruse included applying for and receiving a specially equipped vehicle, a specially adapted home and additional compensation based on his disability rating. The investigation began after San Antonio news station, KENS5, aired a story titled, “Homes for Our Troops Questions Veteran’s Paralysis after Video.” The story involved a specially adapted house in Dripping Springs that was gifted to the Perez-Gordas in December 2013 by the non-profit foundation Homes for Our Troops. Although Mrs. Perez-Gorda claimed her husband was “paralyzed from the belly button down,” Mr. Perez-Gorda was seen walking around the neighborhood and playing basketball. VA Office of Inspector General (OIG) agents videotaped Mr. Perez-Gorda walking around without assistance. Mrs. Perez-Gorda furthered the scheme by completing all the VA and SSA paperwork claiming Mr. Perez-Gorda was paralyzed in both legs. On Sept. 27, 2022, Mrs. Perez-Gorda was found guilty of 11 counts of wire fraud; one count of mail fraud; one count of health care fraud; three counts of false statements related to a health care matter; one count of conspiracy to commit health care fraud; and one count of theft of government funds. In addition to the imprisonment and restitution, Perez-Gorda is responsible for a $100 special assessment on each of the 18 counts and $100,000 for trial expenses. “As the U.S. Attorney’s Office, we will pursue individuals that defraud and steal from integral benefit programs like those designed by the Veteran’s Administration and the Social Security Administration,” said U.S. Attorney Jaime Esparza of the Western District of Texas. “These programs are crucial to our disabled veterans and other disabled Americans who truly depend on their assistance, and they must be protected.” “Fraudulently obtaining benefits from VA diverts valuable resources intended for the care of deserving veterans,” said Deputy Assistant Inspector General for Investigations Carl Scott of the Department of Veterans Affairs Office of Inspector General’s Office of Investigations. “The VA OIG is grateful to the U.S. Attorney’s Office and the Social Security Administration OIG for their efforts in this joint investigation.” “A jury found Josephine Perez-Gorda guilty as a co-conspirator in a scheme that defrauded the Social Security Administration and the U.S. Veterans Administration of more than $500,000 and services intended to assist persons with disabilities. This sentence now holds her accountable for her criminal actions,” said Gail S. Ennis, Inspector General for the SSA. “I appreciate the VA Office of the Inspector General for their work in this joint investigation and the U.S. Attorney’s Office for prosecuting this case.” The VA-OIG and SSA-OIG investigated the case. Assistant U.S. Attorney Greg Surovic and Special Assistant U.S. Attorney Tiffany Miller prosecuted the case. ###


title: Wisconsin Man Pleads Guilty to Making Racially-Charged Threats Toward Black Residents

component: Civil Rights Division

body_text: A Wisconsin man pleaded guilty to one felony count and one misdemeanor count of intimidating and interfering with Black residents because of their race and because they were exercising their right to fair housing. According to court documents, William McDonald, 45, of West Allis, Wisconsin, admitted that in March 2021, he vandalized a Black woman’s vehicle parked outside her apartment by slashing her tires and smashing her windshield. McDonald then left a note on her car, filled with racial slurs, threatening to slash her throat and demanding she move out of West Allis. A week later, McDonald slashed two of her car tires and left another note filled with racial slurs and giving her an ultimatum – move out of the neighborhood or suffer violence. In April 2022, a Black woman and her two minor children moved into McDonald’s apartment complex. Shortly after they moved in, McDonald vandalized her front door with racial graffiti and left her a note, calling her family a racial slur and demanding she get out of the building. “No one should feel unsafe in their home or be subjected to harmful and derogatory threats because of the color of their skin,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department will continue to protect the housing rights of all individuals and vigorously prosecute those who use racially-charged threats to drive people from their homes.” “The conduct at issue in this case strikes at the very core of the civil rights guaranteed to every American citizen under federal law,” stated U.S. Attorney Gregory J. Haanstad for the Eastern District of Wisconsin. “I commend the courage of those targeted by Mr. McDonald for coming forward. The U.S. Attorney’s Office remains committed to working with all of our federal, state, and local partners to hold individuals who violate the civil rights of others fully accountable under federal law.” “Hate crimes are not only an attack on the victim, they threaten and intimidate an entire community. Because of their wide-ranging impact, investigating hate crimes is a top priority for the FBI,” said Special Agent in Charge Michael E. Hensle of the FBI Milwaukee Field Office. “As a law enforcement protector of civil right in the U.S., the FBI will continue to collaborate with our local and state law enforcement partners and bring to justice those who commit hate crimes.” McDonald faces a maximum sentence of up to 11 years in prison. A sentencing date has been set for June 29. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. The FBI Milwaukee Field Office and the West Allis Police Department are investigating the case. Assistant U.S. Attorneys Christopher Ladwig and Philip Kovoor for the Eastern District of Wisconsin and Trial Attorney Nikhil Ramnaney of the Civil Rights Division’s Criminal Section are prosecuting the case.


title: Former Oklahoma Jail Officer Pleads Guilty to Civil Rights Violation

body_text: A former detention officer with the McClain County Jail in Purcell, Oklahoma, pleaded guilty to being deliberately indifferent to a substantial risk of serious harm to a pretrial detainee’s physical safety, thereby violating the pretrial detainee’s constitutional civil rights. According to court documents and admissions, on April 21, 2019, Kyle Tecumseh, 25, was involved with moving a pretrial detainee, B.B., into a jail cell with a senior United Aryan Brotherhood (UAB) gang member whom Tecumseh knew was angry at and posed a danger to B.B. Thereafter, Tecumseh allowed another detention officer to move several more UAB gang members into the cell with B.B. and the senior UAB gang member. The UAB gang members then physically attacked B.B., as Tecumseh knew was likely to occur. “As a detention officer, this defendant had a duty to ensure that the civil rights of pretrial detainees under his care and custody were protected,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Instead, the defendant abused his power and authority by allowing a pretrial detainee to be put in a situation where he faced a substantial risk of physical harm. The defendant is now being held accountable for his actions, and the Justice Department will continue to ensure that corrections officials are held responsible when they violate the civil rights of detainees and inmates under their care, custody and control.” “Criminal conduct by any detention staff member erodes public trust and unfairly compromises the reputation of all corrections officials who honorably serve,” said U.S. Attorney Robert J. Troester for the Western District of Oklahoma. “Today’s guilty plea demonstrates our continuing commitment to protect all Oklahomans, including those in custody. I commend the prosecutors and law enforcement officials for their efforts here.” “There is never a reason for a detention officer to resort to violating an inmate’s civil rights. The FBI understands that working in a correctional institution is stressful and dangerous work, and the vast majority of the men and women working in these institutions do their jobs honorably on a daily basis,” said Special Agent in Charge Edward J. Gray of the FBI Oklahoma City Field Office. “When an officer violates the rights of detainees in their care, it erodes public trust in these important positions and damages the reputation of the hard-working officers who continue to serve.” Tecumseh faces a maximum sentence of 12 months imprisonment and a $100,000 fine. In addition, according to court documents, Tecumseh agreed to never again seek employment in any law enforcement capacity and to pay the victim any owed restitution. A sentencing date will be set by the court in approximately 90 days. The Oklahoma City FBI Field Office investigated the case. Assistant U.S. Attorney Julia E. Barry for the Western District of Oklahoma and Trial Attorney Laura Gilson of the Civil Rights Division’s Criminal Section are prosecuting the case.


title: Timber Thief Sentenced in Connection with Large-Scale Theft from Government Land

component: USAO - Virginia, Western

body_text: ROANOKE, Va.- One of three men accused of violating the Lacey Act and conspiring with others to illegally remove walnut trees from federally protected land, was sentenced recently in U.S. District Court in Roanoke. William Riley Stump, 52, of Narrows, Virginia, was sentenced last week to four months in prison. He previously pleaded guilty to one count of illegal removal of timber from federally protected land. According to court documents, Stump, and co-defendants Derrick Anthony Thompson and Justin Wayne Johnson, conspired to cut and remove black walnut trees located in the Bluestone Project in Giles County, Virginia and transport them to Lindside, West Virginia to sell. The Bluestone Project is a United States Army Corps of Engineers Flood Damage Reduction project designed to inhibit flood-level water flow along both the New River and Bluestone River. The project’s federally-protected area involves 21,000 acres of land that is a fertile habitat for growth of certain trees and plants, including the highly valuable black walnut trees, which are among the largest and longest living hardwood trees in the United States. The U.S. Forest Service and the Army Corps of Engineers investigated the case. Assistant U.S. Attorney Michael Baudinet prosecuted the case.


title: Grand Island Man Sentenced for Firearm and Drug Trafficking Crimes

body_text: United States Attorney Steven Russell announced that Mark A. Barraza Saenz, 22, of Grand Island, Nebraska, was sentenced today in federal court in Lincoln, Nebraska, for possessing with intent to distribute 50 grams or more of methamphetamine and possessing a firearm in furtherance of that drug trafficking crime. Senior United States District Judge John M. Gerrard sentenced Barraza Saenz to 72 months’ imprisonment on the drug charge and a consecutive 60 months’ imprisonment on the firearm charge, for a total sentence of 132 months. There is no parole in the federal system. After his release from prison, he will begin a five-year term of supervised release. On October 12, 2021, in the early morning hours, a Merrick County Sheriff’s Office deputy observed a silver sedan heading east bound in Central City, Nebraska. Based on driving infractions, the deputy initiated a traffic stop. Two males were in the sedan, including Barraza Saenz in the front passenger seat. Barraza Saenz admitted to smoking marijuana approximately an hour earlier and consented to the deputy searching him. While searching Barraza Saenz, the deputy found two bundles of methamphetamine. The deputy then searched the trunk of the sedan and found a bag containing methamphetamine. Under the bag was an American Tactical M1911 Military .45 caliber semi-automatic pistol with the magazine containing one bullet next to it. The methamphetamine from Barraza Saenz’s person and the vehicle was laboratory tested and confirmed to be approximately 209 grams of methamphetamine. This case was investigated by the Federal Bureau of Investigation and Merrick County Sheriff’s Office.


title: Utah Man Pleads Guilty to Multiple Counts of Tax Evasion

component: Tax Division

body_text: A Utah man pleaded guilty today to willfully evading the proper assessment of income tax. According to court documents and statements made in court, Ashley James Robinson, of Farmington, filed false tax returns for years 2016 through 2019 that did not report a total of approximately $1,163,818 in income. As a result, Robinson caused a tax loss to the IRS of approximately $427,145. He is scheduled to be sentenced on May 26, 2023, and faces a maximum penalty of five years in prison for each tax evasion count. He also faces a period of supervised release, restitution and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Trina A. Higgins for the District of Utah made the announcement. IRS-Criminal Investigation is investigating the case. Trial Attorney Boris Bourget of the Justice Department’s Tax Division and Assistant U.S. Attorney Bryan N. Reeves of the District of Utah are prosecuting the case.


component: USAO - Oklahoma, Western

body_text: OKLAHOMA CITY – A former detention officer with the McClain County Jail in Purcell, Oklahoma, pleaded guilty to being deliberately indifferent to a substantial risk of serious harm to a pretrial detainee’s physical safety, thereby violating the pretrial detainee’s constitutional civil rights. According to court documents and admissions, on April 21, 2019, Kyle Tecumseh , 25, was involved with moving a pretrial detainee, B.B., into a jail cell with a senior United Aryan Brotherhood (UAB) gang member whom Tecumseh knew was angry at and posed a danger to B.B. Thereafter, Tecumseh allowed another detention officer to move several more UAB gang members into the cell with B.B. and the senior UAB gang member. The UAB gang members then physically attacked B.B., as Tecumseh knew was likely to occur. "As a detention officer, this defendant had a duty to ensure that the civil rights of pretrial detainees under his care and custody were protected," said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. "Instead, the defendant abused his power and authority by allowing a pre-trial detainee to be put in a situation where he faced a substantial risk of physical harm. The defendant is now being held accountable for his actions, and the Justice Department will continue to ensure that corrections officials are held responsible when they violate the civil rights of detainees and inmates under their care, custody and control." "Criminal conduct by any detention staff member erodes public trust and unfairly compromises the reputation of all corrections officials who honorably serve," said U.S. Attorney Robert J. Troester for the Western District of Oklahoma. "Today’s guilty plea demonstrates our continuing commitment to protect all Oklahomans, including those in custody. I commend the prosecutors and law enforcement officials for their efforts here." "There is never a reason for a detention officer to resort to violating an inmate’s civil rights. The FBI understands that working in a correctional institution is stressful and dangerous work, and the vast majority of the men and women working in these institutions do their jobs honorably on a daily basis," said Special Agent in Charge Edward J. Gray of the FBI Oklahoma City Field Office. "When an officer violates the rights of detainees in their care, it erodes public trust in these important positions and damages the reputation of the hard-working officers who continue to serve." Tecumseh faces a maximum sentence of 12 months imprisonment and a $100,000 fine. In addition, according to court documents, Tecumseh agreed to never again seek employment in any law enforcement capacity and to pay the victim any owed restitution. A sentencing will be set by the court in approximately 90 days. The Oklahoma City FBI Field Office investigated the case. Assistant U.S. Attorney Julia E. Barry for the Western District of Oklahoma and Trial Attorney Laura Gilson of the Civil Rights Division’s Criminal Section are prosecuting the case. Reference is made to public filings for additional information.


title: Lincoln Man Sentenced for Possession with Intent to Distribute Methamphetamine

component: USAO - Nebraska

body_text: United States Attorney Steven Russell announced that Dillen Lynn Marzolf, 30, of Lincoln, Nebraska was sentenced on March 23, 2023, by Senior United States District Judge John M. Gerrard to 15 years in federal prison for possession with the intent to distribute 50 grams or more of actual methamphetamine with a prior serious felony drug conviction. Following the prison term, Marzolf will serve 10 years on supervised release. There is no parole in the federal system. In late September of 2021, a confidential informant, working with the Lincoln/Lancaster County Narcotics Task Force, bought a total of approximately 19 grams of methamphetamine from Marzolf at his apartment in Lincoln. On October 1, 2021, investigators obtained a search warrant for his apartment. Marzolf was stopped after leaving the apartment prior to the execution of the warrant and was found in possession of a baggie containing 99 blue pills marked “M30.” He also a had total of about 1 ¼ ounces of marijuana, more than $1,000 in cash and a digital scale. Marzolf was wearing an ankle monitor and said he was on parole. During the search of his apartment, four baggies of methamphetamine and numerous items of drug paraphernalia were found. Testing at the Nebraska State Patrol Crime Lab showed a total of approximately one pound of methamphetamine mixture. Two of the baggies were tested for purity and were found to contain at least 200 grams, (approximately seven ounces) of actual methamphetamine. Marzolf admitted the methamphetamine belonged to him. Marzolf said he had about five customers and had last sold methamphetamine earlier that day. He said the pills were fentanyl which he also intended to sell, and some of the cash came from drug sales. At the time of his arrest, Marzolf was on parole from an Adams County conviction for distribution of marijuana. He was sentenced to 10 to 15 years in 2012 for that crime. His state parole was revoked following his arrest in the federal case. Marzolf’s federal sentence will run consecutive to (after) the remainder of his state sentence. This case was investigated by the Lincoln/Lancaster County Narcotics Task Force.


title: Former Bardstown Chief Financial Officer Sentenced to 35 Months in Federal Prison for Embezzling City Funds

component: USAO - Kentucky, Western

body_text: Louisville, KY – A former city official was sentenced yesterday to 35 months in prison and ordered to pay restitution for embezzling over three-quarters of a million dollars from the City of Bardstown, Kentucky, during her years working with the city. United States Attorney Michael A. Bennett of the Western District of Kentucky, Special Agent in Charge Jodi Cohen of the FBI’s Louisville Field Office, and Commissioner Phillip Burnett, Jr. of the Kentucky State Police made the announcement. According to court documents and statements made in court, Tracy L. Hudson, 42, of Bloomfield, Kentucky, embezzled funds from the City of Bardstown, Kentucky, while employed first as the City’s Occupational Tax Administrator and then as its Chief Financial Officer. Between 2013 and September 2019, Hudson stole funds from the City of Bardstown by various means, including by taking cash from the City’s funds for her own personal use, paying herself for false expense reimbursements, diverting additional payments into her 401k pension plan in excess of the amount withheld from her wages, purchasing personal items on a City credit card without authorization, and crediting payments to her personal accounts with the City despite no actual payment having been made. The primary method by which Hudson stole from the City of Bardstown was by stealing cash, most often from cash payments made when individuals were paying for City services. Hudson also engaged in various activities which generated interstate wire communications to steal certain of the funds and to conceal her thefts from the City. In addition to the 35-month prison sentence, Hudson was sentenced to a 3-year term of supervised release and ordered to pay $629,972.39 in restitution to the City of Bardstown and its insurance company. The FBI and the Kentucky State Police investigated the case. Assistant U.S. Attorney Stephanie M. Zimdahl prosecuted the case. ###


title: Pensacola Man Sentenced to More Than 12 Years in Prison for Carjacking

component: USAO - Alabama, Southern

body_text: MOBILE, AL – A Pensacola, Florida man was sentenced to 150 months in prison for a carjacking in Baldwin County. According to court documents, Billy Joe Burns, 34, was arrested by deputies with the Baldwin County Sheriff’s Office on July 12, 2022, after he carjacked a woman in Miflin, Alabama, and led deputies on a high-speed chase that ended in Gulf Shores. Deputies initially encountered Burns as he fled from the scene of an alleged assault at a gas station in Foley. In the course of fleeing from that scene, Burns wrecked the car that he was driving in the front yard of a house on County Road 83. Burns got out of the wrecked car, jumped a fence, and fled into nearby woods toward County Road 20 in Miflin. As a nearby resident rounded the corner on County Road 20 in a 2015 Dodge Grand Caravan, Burns emerged from the woods and carjacked her. Armed with a broken piece of cinder block, Burns threatened the victim, reached into her open window, unlocked the door, and pulled her from the van. He then took off in the stolen van on County Road 20. Deputies pursued Burns in the stolen van for several miles down the Foley Beach Express. Burns eventually wrecked the van into a bystander truck on County Road 8 in Gulf Shores. The truck was occupied by a couple and their two-year-old child. Both the stolen van and the truck were totaled. Burns attempted to flee into a nearby field but deputies caught up to him and took him into custody. Senior United States District Judge William H. Steele ordered Burns to serve 150 months’ imprisonment and a three-year term of supervised release upon his release from prison, during which time he will undergo drug testing and treatment, will receive mental health evaluation and treatment, and will be subject to credit restrictions. The court did not impose a fine, but Judge Steele ordered Burns to pay $25,018.41 in victim restitution and $100 in special assessments. U.S. Attorney Sean P. Costello of the Southern District of Alabama made the announcement. The Federal Bureau of Investigation and the Baldwin County Sheriff’s Office investigated the case. Assistant U.S. Attorney Justin Roller prosecuted the case on behalf of the United States.


title: Tampa Woman Sentenced To More Than Eight Years In Federal Prison For Fraud Offenses

component: USAO - Florida, Middle

body_text: Tampa, FL – U.S. District Judge William F. Jung has sentenced Kemi Lim-Tom (38, Tampa) to eight years and four months in federal prison for bank fraud, tax fraud, credit card fraud, and aggravated identity theft. Lim-Tom was ordered to pay $345,943.49 in restitution. She had pleaded guilty on July 26, 2022. According to court documents, in February 2018, pursuant to a search warrant, officers from the Tampa Police Department found Lim-Tom and her coconspirator, Sonya Seago, in possession of more than 1,500 individuals’ stolen personal identifying information. Subsequent investigation revealed that Lim-Tom used these identities to commit bank fraud, tax fraud, and credit card fraud. According to court documents and evidence presented at the sentencing hearing, between 2012 and February 2018, Lim-Tom orchestrated a scheme to defraud financial institutions by manufacturing counterfeit checks with fraudulent company names and bank account numbers belonging to victim businesses and then cashing these checks for profit. Lim-Tom recruited and paid others to receive some of these checks and provide her with the proceeds. The face value of the fraudulent checks involved in the scheme was more than $600,000. Between March 2013 and July 2014, Lim-Tom committed tax fraud by using stolen identities to obtain tax refunds from the Internal Revenue Service. Lim-Tom obtained four fraudulent tax refunds totaling more than $27,000 and attempted to obtain an additional 56 refunds totaling more than $300,000. Between January 2015 and February 2018, Lim-Tom and Seago used stolen personal identifying information to obtain fraudulent credit cards, which they used to make more than $215,000 in purchases. On February 15, 2023, Sonya Seago (50, Tampa) was sentenced to 32 months in federal prison for her role in the fraud offenses. “Greed is a strong motivator for illegal activity and these sentencings demonstrate our commitment to hold criminals accountable for their corrupt behavior,” said IRS-CI Acting Special Agent in Charge Ronald A. Loecker. “These individuals demonstrated a blatant disregard for the United States tax system and caused immeasurable damage to innocent victims. IRS Criminal Investigation, along with our partners at the United States Secret Service, the Tampa Police Department, and the U.S. Attorney’s Office, remains committed to the pursuit of identity theft and other related crimes.” This case was investigated by IRS-Criminal Investigation, the United States Secret Service, and the Tampa Police Department. It was prosecuted by Assistant United States Attorneys Jennifer L. Peresie and John Cannizzaro.


title: Federal Grand Jury Indicts Tennessee Felon for Illegal Possession of Firearm

body_text: Paducah, KY – A federal grand jury in Paducah, Kentucky, returned an indictment on January 10, 2023, charging a Murfreesboro, Tennessee man with being a prohibited person in possession of a firearm. U.S. Attorney Michael A. Bennett of the Western District of Kentucky and Acting Special Agent in Charge Robert Maynard of the ATF Louisville Field Division made the announcement. According to the indictment, Arsenio R. Rhodes, 32, of Murfreesboro, Tennessee, was charged with one count of being a prohibited person in possession of a firearm. Rhodes was prohibited from owning a firearm because of two previous felony convictions for trafficking for sexual servitude in Shelby County, Tennessee. Rhodes made his initial court appearance before a U.S. Magistrate Judge in the Middle District of Tennessee on March 2, 2023. He appeared in the United States District Court for the Western District of Kentucky on March 20, 2023. If convicted, Rhodes faces a maximum sentence of 15 years in prison. A federal district court judge will determine any sentence after considering the sentencing guidelines and other statutory factors. There is no parole in the federal system. This case is being investigated by the ATF Bowling Green Field Office with assistance from the Hopkinsville Police Department. Assistant U.S. Attorney Leigh Ann Dycus, of the U.S. Attorney’s Paducah Branch Office, is prosecuting this 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. An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. ###


title: U.S. Attorney Thompson, Law Enforcement Officials to Announce Largest Methamphetamine Seizure in West Virginia History

component: USAO - West Virginia, Southern

body_text: CHARLESTON, W.Va. – United States Attorney Will Thompson and law enforcement officials will announce a major drug trafficking investigation on Wednesday, March 22, 2023, at 3 p.m. that had resulted in the largest seizure of methamphetamine in West Virginia history. WHAT: Announcement of major drug trafficking investigation WHEN: Wednesday, March 22, 2023, at 3 p.m. WHERE: Robert C. Byrd Unites States Courthouse, 300 Virginia Street East, Charleston. 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. ###


title: Philadelphia Man Sentenced to 5 Years for Possessing Crack Cocaine

component: USAO - Pennsylvania, Western

body_text: PITTSBURGH, PA- A resident of Philadelphia, PA, has been sentenced in federal court to a term of imprisonment of 60 months on his conviction for violating federal narcotics laws, Acting United States Attorney Troy Rivetti announced today. United States District Judge Robert J. Colville imposed the sentence on Zion Elam-Sturgis, 24. According to information presented to the Court, Elam-Sturgis conspired to possess with intent to distribute and distribute 28 grams or more of a mixture and substance containing a detectible amount of cocaine base and possessed with intent to distribute 28 grams or more of a mixture and substance containing a detectible amount of cocaine base, in Butler, Pennsylvania. Assistant United States Attorneys Craig W. Haller and Yvonne M. Saadi prosecuted this case on behalf of the government. Acting United States Attorney Rivetti commended the Pennsylvania State Police, the Federal Bureau of Investigation, and the Butler County District Attorney’s Drug Task Force for the investigation leading to the successful prosecution of Elam-Sturgis.


title: Man Sentenced to 18 Months in Prison

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

body_text: HAMMOND- Antonio Joel Ortiz, 25 years old, was sentenced by United States District Court Chief Judge Jon E. DeGuilio after pleading guilty to being a felon in possession of a firearm, announced United States Attorney Clifford D. Johnson. Ortiz was sentenced to 18 months in prison followed by 1 year of supervised release. According to documents in the case, on August 1, 2022, Ortiz possessed a loaded firearm while committing a theft. Law enforcement successfully recovered the firearm Ortiz had thrown over a gate when he saw police as well as the loaded magazine. Ortiz’s criminal history revealed he has prior felony convictions for criminal recklessness and burglary, and as such, is prohibited from possessing the firearm. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives Indiana High Intensity Drug Trafficking Task Force and the Hammond Police Department. This case was prosecuted by Special Assistant United States Attorney Patrick D. Grindlay. This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.


title: Jury Convicts KC Man of Illegal Firearm

component: USAO - Missouri, Western

body_text: KANSAS CITY, Mo. – A Kansas City, Mo., man has been convicted at trial of illegally possessing a firearm after he pointed his pistol at an ex-girlfriend’s head and threatened to kill her, then crashed into several vehicles while attempting to flee from law enforcement officers. Jonathan Good, 31, was found guilty of being a felon in possession of a firearm on Tuesday, March 21. Evidence introduced during the trial indicated that Good was in possession of a Taurus 9mm handgun on July 29, 2020. Kansas City police officers were called to a residence on July 29, 2020. A woman at the residence reported that Good had arrived on her front porch, drunk and belligerent, at about 11:24 p.m., waving a gun around and yelling. She told him to leave, after which she heard a single gunshot from the front porch. She followed Good to his car, where he pointed his pistol at her head and threatened to kill her. Good got into his silver Ford Mustang and left as officers were arriving. A Kansas City police officer was parked in front of the victim’s residence at approximately 11:47 p.m. Good returned to the scene in his Ford Mustang, then shifted into reverse and began driving away. When Good reached the intersection of 72nd Steet and Walrond, he shifted his car into drive and drove south on Walrond. Officers pursued Good, who was driving at 60 miles per hour. Good failed to stop at one stop sign before losing control of his vehicle. Good’s vehicle hit the sidewalk then spun and collided with one vehicle parked on Walrond before slamming into another two vehicles parked in a residential driveway, where it was disabled. Good was arrested and transported to a local hospital to check for injuries. While at the hospital, when staff lifted him off the gurney onto the hospital bed, they found three live rounds of 9mm ammunition. At approximately 1 a.m. on July 30, 2020, officers searched Good’s residence and found the loaded Taurus 9mm pistol hidden inside an old charcoal grill with the legs missing, which was sitting on the grass in the front yard. Forensic investigators indicated a DNA sample recovered from the trigger guard of the pistol implicated Good as a major contributor. The KCPD expert testified the genetic information from the trigger was 7 octillion times more likely to be observed if Jonathan Good and four unknown individuals are the contributors than if five individuals are the contributors. Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of a firearm or ammunition. Good has three prior felony convictions for domestic assault, two prior felony convictions for unlawful use of a weapon, and prior felony convictions for armed criminal action, violating an order of protection, and domestic assault. Following the presentation of evidence, the jury in the U.S. District Court in Kansas City, Mo., deliberated for 30 minutes before returning guilty verdicts to U.S. Chief District Judge Beth Phillips, ending a trial that began Monday, March 20. Due to his prior felony convictions, Good is classified as an armed career criminal. Under federal statutes, Good is subject to a mandatory minimum sentence of 15 years in federal prison without parole, up to a sentence of life in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office. This case is being prosecuted by Assistant U.S. Attorney Stefan C. Hughes and Special Assistant U.S. Attorney Brandon E. Gibson. It was investigated by the Kansas City, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Operation LeGend Operation LeGend is a federal partnership with local law enforcement to address the increase in homicides and violent crime in Kansas City, Mo., in 2020. The operation honors the memory of four-year-old LeGend Taliferro, one of the youngest fatalities during a record-breaking year of homicides and shootings. Additional federal agents were assigned to the operation from the FBI, Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the U.S. Marshals Service.


title: Former West Haven City Employee Sentenced to 13 Months in Federal Prison for Stealing COVID-19 Relief Funds

component: USAO - Connecticut

body_text: Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that JOHN BERNARDO, 66, of West Haven, was sentenced today by U.S. District Judge Omar A. Williams in Hartford to 13 months of imprisonment, followed by three years of supervised release, for participating in a scheme to steal COVID-19 relief funds from the City of West Haven. According to court documents and statements made in court, Bernardo was employed by the City of West Haven as a Housing Specialist in the office of Community Development Administration. Michael DiMassa was also employed by the City of West Haven, most recently serving as the Administrative Assistant to the City Council, and was a Connecticut State Representative. In April 2020, the State of Connecticut was allocated money by the U.S. Department of the Treasury through the Coronavirus Relief Fund (“CRF”), which was established by the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) for the purpose of helping local governments pay costs incurred in responding to the COVID-19 pandemic. From July 2020 through September 2021, the City of West Haven received approximately $1,150,257 in financial assistance from this fund. DiMassa, who was authorized to approve the designated relief funds for the reimbursement of COVID-related expenditures incurred by West Haven, conspired with Bernardo, John Trasacco, and DiMassa’s now wife, Lauren DiMassa, to steal these funds and other West Haven funds through the submission of fraudulent invoices, and subsequent payment, for COVID relief goods and services that were never provided. In January 2021, DiMassa and Bernardo formed Compass Investment Group, LLC. Beginning in February 2021, Compass Investment Group LLC fraudulently billed the City of West Haven and its “COVID-19 Grant Department” for consulting services purportedly provided to the West Haven Health Department that were not performed. From February 2021 through September 2021, the City of West Haven paid Compass Investment Group a total of $636,783.70. Bernardo received a portion of these funds. DiMassa made several large cash withdrawals from the Compass Investment Group LLC bank account, some of which were made shortly before or after he was recorded as having made a large cash “buy-in” of gaming chips at the Mohegan Sun Casino. Judge Williams ordered Bernardo to pay $58,927.25 in restitution. Bernardo was arrested on November 4, 2021. On June 14, 2022, he pleaded guilty to one count of conspiracy to commit wire fraud. Bernardo, who is released on a $250,000 bond, is required to report to prison on May 22. On November 1, 2022, DiMassa pleaded guilty to three counts of conspiracy to commit wire fraud. He is awaiting sentencing and has agreed to pay restitution of $1,216,541.80. On December 2, 2022, a jury found Trasacco, whose companies received approximately $431,982 through this scheme, guilty of one count of conspiracy to commit wire fraud and one count of wire fraud. He is awaiting sentencing. On July 12, 2022, Lauren DiMassa, who received $147,776 through this scheme, pleaded guilty to one count of conspiracy to commit wire fraud. She is scheduled to be sentenced tomorrow at 10 a.m. This matter has been investigated by the Federal Bureau of Investigation and the U.S. Department of Housing and Urban Development – Office of Inspector General for Investigations. The case is being prosecuted by Assistant U.S. Attorneys Ray Miller and David Sheldon. Individuals with information about allegations of attempted fraud involving COVID-19 are encouraged to report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721, or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form .