title: Inmate and Others Indicted for Committing More Than $550 Million in Tax Fraud

component: USAO - California, Eastern

body_text: FRESNO, Calif. — A federal grand jury returned an indictment today charging Kristopher Thomas, 36, Charmane Dozier, 44, Kettisha Thompson-Dozier, 55, and Sharon Vance, 36, with conspiracy to commit tax fraud, U.S. Attorney Phillip A. Talbert announced. Thomas is currently serving a 50-year to life sentence at the Kern Valley State Prison (KVSP) in Delano, California, for a gang-related murder that he committed in the Los Angeles area in 2010. Dozier is married to Thompson-Dozier, who is Thomas’ mother, and they live in Waldorf, Maryland. Vance is one of Thomas’ girlfriends and lives in Hawthorne, California. The defendants were previously arrested in February 2024 on a federal criminal complaint. According to court records, in mid-2022, a DEA investigation found that Thomas was leading a drug trafficking organization operating in Delano from his prison cell at KVSP using contraband cellphones and prison-issued tablets. Intercepted drug-related communications to and from Thomas’ cellphones and tablets showed that he was also running a multimillion-dollar tax fraud scheme with Dozier, Thompson-Dozier, and Vance. The DEA requested assistance from IRS-Criminal Investigation and the FBI on the tax fraud scheme. The defendants’ tax fraud scheme exploited the IRS Employee Retention Credit (ERC). The ERC was enacted during the COVID-19 pandemic to encourage businesses to retain their employees by giving the businesses thousands of dollars in refundable tax credits per employee retained from March 2020 through December 2021. The amount of the ERC was determined by the number of employees the businesses had and the wages paid to those employees. The credit was claimed and paid out based on payroll tax returns that were filed quarterly. The defendants filed fraudulent payroll tax returns for fabricated, existing, and defunct businesses that misrepresented the number of employees the businesses had, and the wages paid to those employees to increase the amount of the ERC that the businesses received to claim large tax refunds. They obtained the information for the businesses through various means, including from their family members, friends, acquaintances, and, at times, engaging in identity theft. They also solicited businesses to let them apply for the ERC on their behalf in exchange for exorbitant commissions. Altogether, from January 2022 through July 2023, the defendants filed hundreds of fraudulent payroll tax returns claiming over $550 million in tax refunds. The refunds were sought on behalf of over 100 businesses and several million dollars was actually paid out. The money was used for personal expenditures, including jewelry and trips to Disney World and Las Vegas. For the Las Vegas trip, Thomas paid to have attendees driven to Las Vegas from Los Angeles, party for the night at a luxury penthouse, and fly back to Los Angeles on a private jet. This case is the product of an investigation by IRS Criminal Investigation and the Federal Bureau of Investigation. Assistant U.S. Attorneys Joseph Barton and Jeffrey Spivak are prosecuting the case. If convicted, the defendants each face maximum statutory penalties of 10 years in prison. Thomas has also been indicted in a separate, federal methamphetamine trafficking case where he faces a statutory maximum penalty of life in prison. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt. This effort is part of a California COVID-19 Fraud Enforcement Strike Force operation, one of five interagency COVID-19 fraud strike force teams established by the U.S. Department of Justice. The California Strike Force combines law enforcement and prosecutorial resources in the Eastern and Central Districts of California and focuses on large-scale, multistate pandemic relief fraud perpetrated by criminal organizations and transnational actors. The strike forces use prosecutor-led and data analyst-driven teams to identify and bring to justice those who stole pandemic relief funds. thomas_et_al._tax_fraud_indictment.pdf


title: Former Susanville Nurse Practitioner Charged in Superseding Indictment with Additional Counts of Sexual Crimes Against Children

body_text: SACRAMENTO, Calif. — A federal grand jury returned a superseding indictment today against Bradley Earl Reger, 68, of Susanville, charging him with seven additional violations of transportation of a minor with intent to engage in criminal sexual activity, travel with intent to engage in illicit sexual conduct, and coercion and enticement, U.S. Attorney Phillip A. Talbert announced. According to court documents, Reger sexually abused more than a dozen victims under the guise of conducting purported medical examinations at his nursing clinic in Susanville, and in hotel rooms and camp sites all over the world. Reger was a licensed nurse practitioner with the California Board of Registered Nursing from 2003 until Oct. 18, 2023, when the Board of Registered Nursing revoked his license. This case is the product of an investigation by the Federal Bureau of Investigation, Homeland Security Investigations, and the California Department of Consumer Affairs. Assistant U.S. Attorneys Christina McCall and Roger Yang are prosecuting the case. If convicted, Reger faces a maximum statutory penalty of life in prison for the most serious charged count and a $250,000 fine per count, plus up to a lifetime of supervised release. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt. The Federal Bureau of Investigation (FBI) Sacramento Division and Homeland Security Investigations (HSI) are seeking to identify potential victims of Bradley Reger. If you believe that you and/or your minor dependent(s) were victimized by Reger at any time, in the United States or abroad, or have information relevant to this investigation, please complete the online form available at: www.fbi.gov/RegerVictims . Additionally, if you know of someone else who may have been victimized by Bradley Reger, please encourage them to complete the form. This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet-safety education.


title: Greenbrier County Man Pleads Guilty to Federal Gun Crime

component: USAO - West Virginia, Southern

body_text: BECKLEY, W.Va. – Richard Shawn Owens, 39, of Lewisburg, pleaded guilty today to possession of a firearm by a person previously convicted of a misdemeanor crime of domestic violence. According to court documents and statements made in court, on August 10, 2023, law enforcement officers executed a search warrant at the Lewisburg residence of Owens and seized six firearms: a Glock 19X 9mm handgun, a Smith & Wesson M&P Shield .40-caliber handgun, a Smith & Wesson M&P15 .223-caliber/5.56mm rifle, a RomArm Cugir WASR-10 7.62x39mm rifle, a Winchester Super X Pump 12-gauge shotgun, and a Ruger American 30-06 bolt-action rifle. Owens admitted to possessing the firearms. Federal law prohibits a person with a prior conviction for a misdemeanor crime of domestic violence from possessing a firearm or ammunition. Owens knew he was prohibited from possessing a firearm because of his prior conviction for assault and battery of a family member in Chesterfield County, Virginia, Circuit Court on July 16, 2013. Owens is scheduled to be sentenced on January 16, 2025, and faces a maximum penalty of 15 years in prison, up to three years of supervised release, and a $250,000 fine. United States Attorney Will Thompson made the announcement and commended the investigative work of the U.S. Department of Homeland Security-Homeland Security Investigations (HSI). United States Magistrate Judge Omar J. Aboulhosn presided over the hearing. Assistant United States Attorney Jennifer Rada Herrald is prosecuting the case. This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime. A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 5:23-cr-146. ###


title: Illinois Bank President Sentenced to Jail for Falsifying Records

component: Federal Bureau of Investigation (FBI)

body_text: BENTON, Ill. – The former president of a bank in southern Illinois was sentenced Thursday for his role in falsifying bank records to facilitate real estate loans. Steven Cook was fined $6,000 and sentenced to 50 hours of community service and two weekends in the Jackson County jail. He will also likely be banned from the banking industry for life. Cook fraudulently facilitated three different sales of commercial real estate to Lawler and Maze Properties LLC in 2022. Cook was the president of SouthernTrust Bank at the time, and was also on the bank’s board of trustees and was a member of its loan committee. The bank has branches in Marion, Vienna and Goreville, Illinois. Cook approved one loan that funded the sale of seven commercial rental properties in Williamson and Franklin counties from Results Home Buyers 2 to Lawler and Maze. The transaction was a new purchase of real estate, not a refinance, and the buyers were not using any cash to fund the purchase. But during an April 6, 2022, meeting with the seller and buyer, Cook and the others agreed to fraudulently make it appear as if the loan was a refinancing. Cook also agreed that the bank would supply the cash for the purchase. They agreed to backdate documents to falsely indicate the buyer purchased the properties on Feb. 1, 2022, for a falsely inflated price of $545,152. The documents also falsely indicated that the bank was refinancing 80% of that loan, with the buyers bringing 20% in cash to the sale. The bank’s loan to the buyers was approved by the bank’s loan committee based upon the false information. Results Home Buyers 2 is partially owned by former Williamson County State’s Attorney Brandon Zanotti. In August of 2022, Cook facilitated a second real estate transaction for the purchase of four properties by Lawler and Maze. Cook, the seller and Lawler and Maze agreed that the real estate contract would falsely list a sales price of $413,000 instead of the actual price of $330,400, and falsely state that the buyer would supply $82,600 in cash. In November of 2022, Cook facilitated an additional loan to Lawler and Maze for the purchase of a property in Marion. Bank documents falsely stated that the borrowers would supply $21,500 cash. Cook pleaded guilty in U.S. District Court in Benton in June to three felony counts of aiding and abetting the making of a false bank entry. Zanotti pleaded guilty in March to one count of the same crime. He was sentenced in May to two years of probation, a $5,000 fine and 20 hours of community service. His conduct we reported to the Illinois Attorney Registration and Disciplinary Commission. Lawler and Maze, LLC is owned by Justin Maze and David Lawler, who each entered into a pretrial diversion program in which they acknowledged their involvement in the criminal conduct by aiding and abetting Zanotti and Cook. As a condition of pretrial diversion, Maze was required to resign from his position as Williamson County Circuit Clerk and agreed not to seek re-election to any public office. Lawler’s conduct was reported to the Illinois Attorney Registration and Disciplinary Commission. “The FBI works daily to disrupt fraudulent activity and we recognize the impact it has on banking institutions,” said FBI Springfield Field Office Special Agent in Charge Christopher Johnson. “FBI Springfield will continue to dedicate investigative resources for targeting fraud in its many forms to protect the integrity of the banking process.” “FHFA-OIG will continue to relentlessly investigate and pursue the prosecution of mortgage-related fraud, no matter who commits the crimes. Officers of financial institutions who have a duty to conduct honest business must be held accountable. We are proud to have partnered with our FBI colleagues and with Special Assistant United States Attorney Hal Goldsmith,” said Korey Brinkman, Special-Agent-in-Charge of FHFA OIG’s Midwest Regional Office. The FBI Springfield Field Office and the Federal Housing Finance Agency Office of Inspector General investigated the case. The prosecution was handled by Special Attorney Hal Goldsmith from the Eastern District of Missouri. The U.S. Attorney’s Office for the Southern District of Illinois was recused from the case. Anyone with information about mortgage-related fraud can report it by contacting the Federal Housing Finance Agency – Office of Inspector General Hotline at 800-793-7724 or via the web at https://www.fhfaoig.gov/ReportFraud#hotlineform


title: Indian National Indicted for Possessing Methamphetamine in Bakersfield

body_text: FRESNO, Calif. — A federal grand jury returned a one-count indictment today against Darmanjot Singh, 29, an Indian national residing in Ontario, California, charging him with possession with intent to distribute methamphetamine, U.S. Attorney Phillip A. Talbert announced. According to court documents, Singh engaged in a high-speed pursuit with law enforcement officers that ended when Singh crashed his car. A search of Singh’s car resulted in the discovery of two packages containing approximately 5 pounds of methamphetamine. This case is the product of an investigation by the Bakersfield Police Department and Homeland Security Investigations. Assistant U.S. Attorney Antonio J. Pataca is prosecuting the case. If convicted, Singh faces a maximum statutory penalty of life in prison and a $10 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.


title: Debt Relief Scam Lands Jamaican National in Federal Prison for 3 Years

component: Criminal - Computer Crime and Intellectual Property Section

body_text: WASHINGTON -- Sereika Savariau, 37, of Montego Bay, Jamaica, was sentenced today to 36 months in prison for creating a series of fraudulent debt relief companies that targeted debt-ridden Americans and tricked the victims into paying fraudulent processing fees and disclosing sensitive personal identifying information. The announcement was made by U.S. Attorney Matthew M. Graves and Assistant Inspector General for Investigations Sally Luttrell of the Treasury Department, Office of Inspector General. Savariau, also known as Sereika Savariau-Goodison, pleaded guilty on April 16, 2024, to one count of conspiracy to commit wire fraud affecting a financial institution. In addition to the prison term, U.S. District Court Judge Amit P. Mehta ordered Savariau to pay restitution to the victims. As part of her guilty plea, Savariau admitted that from at least June 2016 through September 2018, she and other conspirators created and operated a series of fraudulent debt relief companies that tricked U.S. citizens into paying bogus processing fees and to disclose personal identifying information and identity documents. One of the fraudulent websites said consumers could receive up to $60,000 in government-funded aid to pay their bills. Another claimed consumers could receive up to $25,000 in annual debt relief. Savariau admitted that through their false representations she and her co-conspirators tried to defraud U.S. victims out of more than $550,000. More than 50 individuals sent money to conspirators because of the scheme, most commonly through Western Union, believing the funds were service processing fees. Savariau and her conspirators took advantage of people who were desperate to have their outstanding bills paid and improve their financial situation. Thinking they were to receive government-funded debt relief, victims eagerly sent their sensitive personal and financial information and paid exorbitant “processing fees” – approximately 14% of the requested debt relief. The nature of the scheme caused many victims to be victimized multiple times. Conspirators also fraudulently used the victims’ personal identifying information for other illegal purposes. In one example, a victim’s information was used to create a PayPal account for use in the scheme. The information also was used to apply for and obtain an American Express pre-paid credit card. A different victim’s name and address were used to register one of their fraudulent debt relief sites. Savariau’s conduct directly violated a prior judicial order issued in September 2015 by the Honorable Reggie B. Walton in Case No. 14-CV-1414 that, among other things, permanently restrained her and those working with her from misrepresenting to others that they would substantially reduce consumers’ debts. Savariau was indicted by a federal grand jury in December 2021, arrested in Jamaica in July 2023, and extradited to the United States in September 2023. This case was investigated by the U.S. Department of Treasury’s Office of Inspector General, the Justice Department's Computer Crime and Intellectual Property Section, and the U.S. Attorney’s Office for the District of Columbia. The Justice Department’s Office of International Affairs provided valuable assistance in securing the arrest and extradition of Savariau. The case is being prosecuted by Trial Attorneys Louisa Becker and Ashley Pungello of the Criminal Division's Computer Crime and Intellectual Property Section, and Assistant U.S. Attorney Kondi Kleinman for the District of Columbia. 21cr706


title: Three Individuals Sentenced for Fraudulently Obtaining Pandemic Unemployment Assistance on Behalf of Ineligible Persons, Including Prison Inmates

component: USAO - Arizona

number: 2024-125_Kelly, Boston, Coleman

body_text: PHOENIX, Ariz. – Likishe Jhanell Kelly, 43, of Phoenix, Antoinette Coleman, 36, of Glendale, and Christine Boston, 52, of Mesa have been sentenced in connection with a scheme to use the identities of prison inmates and others to fraudulently obtain federal unemployment benefits under the Coronavirus Aid, Relief, and Economic Security (CARES) Act. All three individuals admitted they facilitated the filing of false claims for pandemic unemployment benefits by fraudulently using other identities, including those of imprisoned individuals. Kelly was sentenced last week by United States District Judge Susan M. Brnovich to 36 months in prison and mandated to pay $375,094 in restitution to the Arizona Department of Economic Security (DES). Kelly pleaded guilty to Conspiracy to Commit Wire Fraud on November 21, 2023. Coleman was also sentenced last week by Judge Brnovich to five years of probation and mandated to pay $19,678 in restitution to DES. Coleman pleaded guilty to Conspiracy to Commit Wire Fraud on January 16, 2024. Boston was sentenced by Judge Brnovich on July 9, 2024, to 36 months in prison and ordered to pay $97,596 in restitution to DES. Boston also pleaded guilty to Conspiracy to Commit Wire Fraud on January 3, 2024. Kelly, Coleman, and Boston acknowledged their role in helping file applications for inmates who did not actually lose their jobs due to COVID. Boston was incarcerated during the time of this scheme and transmitted the necessary inmate information for the filing of applications to Kelly and Coleman. Boston emailed Coleman from the Arizona State Prison in Goodyear to recruit Coleman to facilitate processing inmate applications for Pandemic Unemployment Assistance benefits. Kelly would then file the fraudulent applications and weekly certifications in the name of Boston and other inmates. Kelly compensated Boston for providing the inmate information by depositing money into her Arizona state prison commissary account. Additionally, Kelly submitted fraudulent applications and weekly certifications on behalf of other ineligible individuals, including Coleman. Coleman processed and filed two fraudulent applications. In total, between May 2020 and December 2020, Kelly and her co-defendants submitted at least 42 fraudulent applications, obtaining approximately $375,094 in illicit funds. “During the worldwide COVID-19 pandemic, Congress expanded eligibility for employees to receive unemployment benefits and made it easier to submit an application,” said United States Attorney Gary Restaino. “Sadly, some Arizonans took advantage of the emergency and defrauded our State. The sentences and restitution orders imposed in this case send an important deterrent message to those who seek gains based on others’ misfortune.” “We appreciate our continuous collaboration with the United States Department of Labor and the Office of Inspector General to identify and hold accountable those who exploit the system and engage in Unemployment Insurance fraud,” stated Angie Rodgers, Director of the Arizona Department of Economic Security. “Our agencies are resolute in our dedication to preserving the integrity of the unemployment insurance benefits program.” The United States Department of Labor, Office of Inspector General, and the Arizona Department of Economic Security conducted the investigation in this case. Assistant U.S. Attorney Kristen Brook, U.S. Attorney’s Office, Phoenix, handled the prosecution. CASE NUMBER: CR 23-0432-PHX-SMB RELEASE NUMBER: 2024-125_Kelly, Boston, Coleman # # # For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/ Follow the U.S. Attorney’s Office, District of Arizona, on X @USAO_AZ for the latest news.


title: Kris Roglieri Indicted on Five Counts of Wire Fraud

component: USAO - New York, Northern

body_text: ALBANY, NEW YORK – Kris Roglieri, age 44, of Queensbury, New York, has been indicted on wire fraud charges. United States Attorney Carla B. Freedman and Craig L. Tremaroli, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), made the announcement. Roglieri operated Prime Capital Ventures, LLC (“Prime Capital”) and Prime Commercial Lending, LLC (“Prime Commercial”), among other companies, that were based in Albany. The indictment and an earlier-filed criminal complaint allege that Prime Capital held itself out as a commercial lending business. As part of contractual arrangements with its borrower clients situated across the country, Prime Capital obtained upfront interest payments from prospective borrowers while it sought to secure loans for those borrowers; these upfront interest payments were characterized by Prime Capital as the “Interest Credit Account Payment,” or “ICA” payment for short. ICA payments did not represent fees to Prime Capital. Instead, each borrower’s upfront ICA payment would be debited over time as the loan was funded and accrued more interest. An ICA payment would also be refundable if Prime Capital failed to secure a loan for the borrower client. Roglieri is alleged to have defrauded a Minnesota company in December 2023, by committing to fund, through Prime Capital, an approximately $100 million commercial project, even though, at the time, Prime Capital had failed to fund numerous loans promised to earlier clients; failed to return tens of millions of dollars in ICA payments to earlier clients once those loans did not materialize; and had been sued multiple times by clients alleging fraud and seeking the return of ICA payments. On December 22, 2023, Roglieri, on behalf of Prime Commercial, signed a Deposit Agreement by which he agreed to keep the Minnesota company’s ICA payment in a “separate and distinct” bank account, and to hold it as a “trust fund.” That same day, the Minnesota company wire transferred a $5 million ICA payment to a Prime Capital account controlled by Roglieri. Roglieri then transferred and spent these funds, including by transferring $950,000 in order to meet a financial obligation to another Prime Capital client; paying $84,000 for his purchase of a Rolex day-date 36 mm yellow gold diamond bezel watch; paying $101,000 to a private jet services company, for round-trip, private air travel between Albany International Airport and Anguilla, for a family vacation that Roglieri took from about December 29, 2023 to January 5, 2024; and paying $400,000 to a law firm that represented Prime Capital in court proceedings. The charges in the indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty. If convicted, Roglieri faces up to 20 years in prison and a maximum $250,000 fine per count, as well as up to 3 years of supervised release. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors. United States Magistrate Judge Christian F. Hummel ordered Roglieri detained after Roglieri’s May 31, 2024 arrest on the criminal complaint. The FBI is conducting this ongoing investigation. Assistant U.S. Attorneys Joshua R. Rosenthal and Michael Barnett are prosecuting this case.


title: Washington Man Sentenced to Prison for Assaulting His Partner with a Knife and Attempting to Suffocate Her

component: USAO - Washington, Eastern

body_text: Spokane, Washington - United States District Judge Thomas O. Rice sentenced Marvin Samson Butterfly, age 40, to 70 months in federal prison on charges of Assault with a Dangerous Weapon in Indian Country, Assault of an Intimate Partner and Dating Partner by Suffocating and Attempting to Suffocate in Indian Country, and Attempted Witness Tampering (70 months on each count to be served concurrently). Butterfly was convicted of those crimes on April 9, 2024, following a jury trial. Judge Rice also imposed 3 years of federal supervision after Butterfly is released from prison. According to court documents and information introduced at trial and sentencing, on September 16, 2023, officers with the Spokane Tribal Police Department were called to a home in Ford, Washington, for a reported domestic assault. The victim, who is an enrolled member of the Spokane Tribe told officers that Butterfly assaulted her. Butterfly was upset with the victim because she had let another woman shelter in her home during a spell of cold weather. Butterfly began shouting, took out a long knife, and stabbed the floors, doors, and furniture. Butterfly assaulted the victim by holding the knife against her throat. Butterfly then pushed the victim down on the couch, placed his hand over her mouth and attempted to suffocate her. After the victim was able to pry Butterfly’s fingers off her face, Butterfly left the home in the victim’s car. Officers found Butterfly the next morning asleep in the victim’s car. On November 2, 2023, while in jail, Butterfly placed a recorded telephone call to his neighbor. During the call, Butterfly made several statements indicating he did not want the victim to testify. Butterfly encouraged his neighbor to stress to the victim that he would be coming home – i.e., getting out of jail – so long as the victim did not cooperate with investigators. “The victim in this case suffered terrifying acts of abuse and intimidation, stated Vanessa Waldref, United States Attorney for the Eastern District of Washington. “Domestic violence is one of the root causes underlying the MMIP crisis. My office is committed to working with our partners in Tribal and Federal law enforcement to secure justice for the victims and to build safer and stronger communities on Tribal lands and throughout Eastern Washington. I am grateful that the victim in his case was undeterred and that my office has built a strong support mechanism to protect the brave victims, that seek to end the abusive cycle of violence.” “Terrifying is the word that best describes the ordeal Mr. Butterfly inflicted upon the victim in this case.” said Richard A. Collodi, Special Agent in Charge of the FBI’s Seattle field office. “I’m thankful the victim was courageous and advocated for herself to help put Mr. Butterfly in custody where he belongs. Curbing violent crime on our state’s reservations remains a priority for the FBI and our partners here in Washington.” This case was investigated by the Federal Bureau of Investigation and the Spokane Tribal Police Department. This case was prosecuted by Assistant United States Attorney Michael Ellis.


title: Real Estate Executive Sentenced for Conspiracy to Falsify Financial Statements

component: Criminal Division

body_text: A California real estate executive was sentenced today to one year and one day in prison, followed by two years of supervised release, and ordered to pay a fine of $200,000 for engaging in an extensive multi-year conspiracy to falsify financial statements. According to court documents and evidence presented at sentencing, Tyler Ross, 38, of San Francisco, and formerly of Michigan, served as co-chief executive officer of ROCO Real Estate LLC and ROCO Management LLC, both of which were based in Bloomfield Hills, Michigan. The ROCO companies operated as a commercial real estate investment firm engaged in the business of purchasing, managing, and selling multi-family residential properties, such as apartment complexes, located in Michigan and elsewhere. Between 2015 and 2019, Ross and his co-conspirators caused false financial documents, including historical operating statements that deleted or reduced actual expenses, to be submitted to mortgage lending businesses for underperforming ROCO properties, making the properties appear to be more profitable than they were in order to obtain refinancing or to avoid the exercise of certain contractual provisions by the lenders to protect themselves. Ross, who was a licensed attorney, acknowledged that he personally falsified historical operating statements during the conspiracy and directed other members of the conspiracy to assist with the creation and submission of falsified financial statements to mortgage lending businesses. The court also found that Ross falsified financial documents in connection with the 2019 sale of 43 ROCO properties to a privately held real estate investment company. Ross supplied the false financial information to the buyer of the properties and ultimately to the financial institution that issued a $481 million loan for the transaction. Ross himself received over $2 million in proceeds from the 2019 sale. Ross pleaded guilty in September 2023 to one count of conspiring to commit an offense against the United States. Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; U.S. Attorney Dawn N. Ison for the Eastern District of Michigan; Special Agent in Charge Korey Brinkman of the U.S. Federal Housing Finance Agency Office of Inspector General (FHFA OIG) Central Region; Special Agent in Charge Shawn Rice of the U.S. Department of Housing and Urban Development Office of Inspector General (HUD OIG); and Acting Assistant Director James C. Barnacle Jr. of the FBI’s Criminal Investigative Division made the announcement. The FHFA OIG, HUD OIG, and FBI investigated the case. Trial Attorneys Andrew Tyler and Philip Trout of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Andrew J. Yahkind for the Eastern District of Michigan prosecuted the case. Anyone with information concerning similar fraud can report it by contacting the FHFA OIG Hotline at 800-793-7724 or via the web at www.fhfaoig.gov/ReportFraud#hotlineform .


title: Watertown Resident Sentenced to 10 Years in Prison for Attempted Possession of Controlled Substances with the Intent to Distribute

body_text: SYRACUSE, NEW YORK – Stuart Chambers, age 44, of Watertown, New York, was sentenced today to serve 120 months in prison for his attempted possession of methamphetamine and cocaine with intent to distribute. United States Attorney Carla B. Freedman and Frank A. Tarentino III, Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA), New York Division, made the announcement. As part of his prior plea, Chambers admitted that, on January 30, 2024, he travelled to Syracuse from Watertown and purchased what he believed to be one pound of methamphetamine and nine ounces of cocaine, which he intended to distribute. He further admitted that, before he committed this offense, he had previously been convicted in federal court in the Middle District of Pennsylvania of Possessing controlled substances with the intent to distribute. In addition to the 10-year sentence, Chambers was sentenced to serve an additional 24 months in prison for violating the conditions of supervised release from his prior offense. Senior United States District Court Judge Frederick J. Scullin also ordered Chambers to serve an 8-year term of supervised release following his release from prison. The United States Drug Enforcement Administration (DEA) investigated the case with assistance from Pennsylvania State Police, Metro-Jefferson Drug Task Force, and New York State Police Special Investigations Unit - Syracuse. Assistant U.S. Attorney Jessica N. Carbone prosecuted the case.


title: Schenectady Man Sentenced to Twenty Years in Federal Prison for Receiving Child Pornography

body_text: ALBANY, NEW YORK – Richard Nejame, age 29, of Schenectady, New York, was sentenced today to serve 240 months (20 years) in federal prison, to be followed by 25 years of supervised release, for receiving and attempting to receive child pornography. United States Attorney Carla B. Freedman and Craig L. Tremaroli, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), made the announcement. As part of his guilty plea, Nejame admitted that between about October 2022 and May 1, 2023, he communicated with several different minor females over various social media applications to include Snapchat. Nejame further admitted that his online personas on social media claimed that he was a teenage boy. During Nejame’s online communications with the minor females, he encouraged them to take nude pictures and videos of themselves, and to then send the pictures and videos to him. Once in receipt of the nude picture and videos of the minor females, Nejame directed the females to take more sexually explicit pictures and videos of themselves, to send those sexually explicit pictures and videos of themselves to him, and that if the females did not comply with his demands, Nejame would threaten to embarrass and expose the females by publishing their pictures and videos on the Internet. In addition to the imprisonment and supervised release terms, Nejame will be required to register as a sex offender upon release from imprisonment. The FBI’s Albany Division Child Exploitation and Human Trafficking Task Force investigated this case. The Task Force includes members of federal, state, and local law enforcement agencies. Assistant United States Attorneys Rick Belliss and Benjamin S. Clark prosecuted the case as part of Project Safe Childhood. Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state, and local resources to better locates, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc .


title: Houston rapper gets life for sex trafficking teenagers

component: USAO - Texas, Southern

body_text: HOUSTON – A 29-year-old man residing in the Houston and Austin areas has been sentenced for sex trafficking three minors and an adult, announced U.S. Attorney Alamdar S. Hamdani. A federal jury deliberated for less than two hours before returning the guilty verdict April 19 against Jacorey Nathaniel Anderson aka Slando Kareem following a five-day trial. U.S. District Judge David Hittner has now sentenced Anderson to life imprisonment. At the hearing, the court heard from one of the minor victims detailing how Anderson’s actions took away her childhood and the negative impact it has had on all of her relationships. In handing down the prison term, the court noted that Anderson knowingly trafficked the teenage girls. Two of those teenage girls were only 15 years of age. “This case exemplifies how art sometimes imitates life. Anderson, a rap musician, performed vile songs glorifying the pimp/prostitute relationship,” said Hamdani. “Unfortunately, for several young girls, he breathed life into his poorly crafted lyrics – providing drugs, starving and trafficking them for his own financial gain. Despite the trauma they suffered, the victims in this case bravely testified against him at trial which secured his convictions…and thanks to their bravery, Anderson’s glorification of commercial sex, his human trafficking and his misogyny ends, both in art and in real life.” “Through the efforts of our special agents and law enforcement partners, Homeland Security Investigations (HSI) has taken another violent sex trafficker off our city streets,” said acting Special Agent in Charge of HSI Dallas Travis Pickard. “The victims’ this defendant abused can now began their process of healing with this criminal behind bars for the remainder of his life.” At the trial, the jury saw two of Anderson’s rap videos. In one of the videos, a female victim’s hands and feet are bound while duct tape covers her mouth. Anderson then physically assaults the victim, slapping and choking her multiple times and warning her to close her mouth. Anderson lured three minors and an adult to the Austin area from Houston via social media and text messages. Co-conspirator Lelonnie Stephon Jackson provided his Mercedes SUV, while another co-conspirator, Thomas Jarrett Barraza, drove the victims to an Austin-area hotel. There, the victims received instruction to walk the “track,” an area known for prostitution, and posted sexually explicit advertisements for commercial sex online. Within another 24 hours, the adult victim escaped. Over the course of three days, the co-conspirators transported the minor female victims to a hotel in Stafford. At that time, Jackson and Barraza left Anderson and the three minor victims at the hotel and returned to the Austin area. Anderson caused the minors to post ads and engage in commercial sex at the hotel. Within 24 hours of arrival at the hotel in Stafford, two of the minor females were able to escape. The last minor remained with Anderson for a few more weeks while he caused her to continue to engage in commercial sex. Throughout the process, Anderson starved the victims, provided them with drugs and took all the proceeds from the commercial sex. At the time of the trial, evidence revealed Anderson was arrested in Dallas for attempting to traffic whom he believed was a minor. However, the individual was actually an undercover officer. The arrest led to the examination of Anderson’s phone which allowed law enforcement to the identify the minor victims. Additionally, Jackson, 33, Big Spring, previously pleaded guilty to his role in the criminal enterprise and received 60 months in prison. Barraza, 37, Austin, also pleaded guilty to his role and will remain on bond pending sentencing Nov. 12. Anderson and Jackson have been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future. HSI - Dallas and the Human Trafficking Rescue Alliance (HTRA) including FBI Houston and Houston Police Department (HPD) conducted the investigation. Assistant U.S. Attorneys Sherri L. Zack and Kimberly A. Leo prosecuted the case. HTRA law enforcement includes members of the HPD, FBI, HSI, Texas Attorney General’s Office, IRS Criminal Investigation, Department of Labor (DOL), DOL – Wage and Hour Division, Department of State, Texas Alcoholic and Beverage Commission, Texas Department of Public Safety, Department of Homeland Security – Office of Inspector General (OIG), Social Security Administration – OIG and Sheriff’s Offices in Harris and Montgomery counties in coordination with District Attorney’s offices in Harris, Montgomery and Fort Bend Counties. Established in 2004, the United States Attorney’s office in Houston formed HTRA to combine resources with federal, state and local enforcement agencies and prosecutors, as well as non-governmental service organizations to target human traffickers while providing necessary services to those that the traffickers victimized. Since its inception, HTRA has been recognized as both a national and international model in identifying and assisting victims of human trafficking and prosecuting those engaged in trafficking offenses.


title: Serial Bank Robber Sentenced to Federal Prison

body_text: PORTLAND, Ore.—A Washington State man who admitted to committing at least ten bank robberies, including five while armed, was sentenced today to more than 23 years in federal prison. Clifford Court Uptegrove, 61, of Yakima, Washington, was sentenced to 280 months in federal prison and five years’ supervised release. According to court documents, on December 17, 2021, approximately 14 months after being granted a compassionate release from federal prison, Uptegrove entered an Umpqua Bank branch in Hermiston, Oregon, brandished a firearm, and demanded large denomination bills from one of the bank’s tellers. After Uptegrove collected more than $13,000 in cash, he fled the bank and attempted to steal an occupied truck in nearby parking lot. Shortly after, a Hermiston police officer spotted Uptegrove and attempted a traffic stop. Uptegrove led the officer on a brief pursuit before stopping and being placed under arrest without further incident. On January 19, 2022, a federal grand jury in Portland returned a three-count indictment charging Uptegrove with armed bank robbery, possessing a firearm during a crime of violence, and possessing a firearm as a convicted felon. Later, on April 11, 2024, Uptegrove pleaded guilty to armed bank robbery. This case was investigated by the FBI and Hermiston Police Department and was prosecuted by Cassady Adams and Gregory Nyhus, Assistant U.S. Attorneys for the District of Oregon.


title: Justice Department Secures Relief from Morningstar Storage to Resolve Alleged Violations of the Servicemembers Civil Relief Act

component: USAO - Florida, Middle

body_text: WASHINGTON – The Justice Department announced today that Morningstar Storage, which manages and operates a network of self-storage facilities in the southeast area of the United States, has agreed to pay $130,000 to resolve allegations that it violated the Servicemembers Civil Relief Act (SCRA) by failing to obtain court orders before auctioning the contents of at least three storage units owned by active-duty servicemembers. According to the complaint , an Air Force Staff Sergeant stationed at MacDill Air Force Base rented a unit at a storage facility located in Tampa, Florida. On the storage agreement, the Staff Sergeant indicated that she was in active military service, provided contact information for her military unit and authorized rent payments to be made automatically. Shortly thereafter, before being deployed overseas to Jordan, she stored nearly all of her household goods at the Tampa facility, including her military awards and coins, and her children’s toys and keepsakes. While the Staff Sergeant was still deployed to Jordan, Morningstar acquired the Tampa facility, stopped her automatic payments and auctioned all the contents of her unit for $390. “We all know that servicemembers endure many hardships and make great sacrifices as a result of their service to the nation,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Our servicemembers should never have to worry that their property, including their most prized keepsakes and personal treasures, will be sold out from under them while they are on duty. The Justice Department will continue standing up for servicemembers to ensure basic respect for their property, their rights and their dignity.” “The U.S. Attorney’s Office for the Middle District of Florida is deeply committed to protecting the civil rights of our Nation’s servicemembers,” said U.S. Attorney Roger B. Handberg for the Middle District of Florida. “The brave individuals who selflessly sacrifice to serve our country deserve the respect and peace of mind of knowing that what they leave behind during their service will be treated with the utmost care. Today’s consent decree reminds us that the companies who take on this responsibility do not always exercise the care that our servicemembers are entitled to under the SCRA, but the department remains committed to ensuring companies like Morningstar follow their obligations under the law.” The SCRA provides financial and housing protections and benefits to military members while they are in military service. One of the SCRA’s protections requires anyone holding a lien on the property of a servicemember to obtain a court order prior to auctioning off, selling or otherwise disposing of that property. Under the consent order , which must still be approved by the U.S. District Court for the Middle District of Florida, Morningstar will pay the Air Force Staff Sergeant $80,000 in damages and will pay $5,000 each to two additional servicemembers. Morningstar has also agreed to pay a $40,000 civil penalty to the United States and must also implement new policies to prevent future violations of the SCRA. This lawsuit resulted from a referral to the Justice Department from the U.S. Air Force. The department’s enforcement of the SCRA is conducted by the Civil Rights Division’s Housing and Civil Enforcement Section in partnership with U.S. Attorneys’ Offices throughout the country. Since 2011, the department has obtained over $481 million in monetary relief for over 147,000 servicemembers through its enforcement of the SCRA. For more information about the department’s SCRA enforcement efforts, please visit www.servicemembers.gov . Servicemembers and their dependents who believe that their rights under the SCRA may have been violated should contact the nearest Armed Forces Legal Assistance Program Office. Office locations can be found at legalassistance.law.af.mil .


title: Drug Dealer Sentenced for Distributing Fake Pills that Contained Fentanyl

component: Drug Enforcement Administration (DEA)

body_text: TULSA, Okla. – Today, U.S. District Judge John D. Russell sentenced Jacob Dean Rowell, 27, of Tulsa, for Possession of Fentanyl with Intent to Distribute and Possession of a Firearm in Furtherance of a Drug Trafficking Crime. Judge Russell ordered Rowell to 181 months imprisonment, followed by five years of supervised release. “Distributors like Rowell are endangering the citizens in the Northern District of Oklahoma,” said U.S. Attorney Clint Johnson. “Our office is dedicated to stopping the flow of fentanyl into our district. This case is an example of the collaborative effort of law enforcement to prevent illegal narcotics from reaching the streets.” According to court documents, while investigating a drug trafficking organization in the Northern District of Oklahoma, DEA investigators identified Rowell as a fentanyl distributor who possessed a pill press used to manufacture counterfeit pills. Rowell also previously sold to undercover officers counterfeit M30 pills that were pressed with fentanyl. During a search of Rowell’s home in February 2024, Agents found cash, a loaded handgun, digital scales, a pill press, several cutting agents or chemicals for the fake pills, and a white powder-like substance that tested positive for fentanyl. After receiving his Miranda warnings, Rowell admitted that he produces up to 1,000 counterfeit Xanax pills at a time, depending on demand from his customers. Rowell also admitted that since November of 2023, he has purchased fentanyl twice a week. Finally, Rowell stated that he traded fentanyl for the handgun found during the search. While Rowell was speaking with the Agents, he received a call from a customer looking to buy pills. The DEA reports a dramatic rise in fake prescription pills. Officials say that 7 out of every 10 pills with fentanyl contain a lethal dose. Less than 2 mg of fentanyl can potentially be a lethal dose. The DEA reports that authentic M30 pills contain oxycodone, and many fake pills are made to look like prescription opioids or stimulants. Rowell will remain in custody pending transfer to the U.S. Bureau of Prisons. The Drug Enforcement Administration (DEA), the Tulsa Police Department, Oklahoma Bureau of Narcotics, and the Oklahoma Highway Patrol investigated the case. Assistant U.S. Attorney David Nasar prosecuted the case. To fine more information about fake pills, go to DEA.gov/OnePill . The case was investigated under the Organized Crime Drug Enforcement Task Forces (OCDETF). OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations threatening the United States using a prosecutor-led, intelligence-driven, multi-agency approach. For more information about Organized Crime Drug Enforcement Task Forces, please visit Justice.gov/OCDETF


title: Former North Platte Man Sentenced for Distribution of Methamphetamine

body_text: United States Attorney Susan Lehr announced that Wesley M. Kraft, age 37, formerly of North Platte, Nebraska, was sentenced September 19, 2024, in federal court in Lincoln, Nebraska for distribution of methamphetamine. United States District Judge Susan M. Bazis sentenced Kraft to 68 months’ imprisonment. There is no parole in the federal system. After Kraft’s release from prison, he will begin a 4-year term of supervised release. This case was brought as a result of a lengthy investigation into drug dealing in the North Platte, Nebraska area, meant to target drug dealers and their sources of supply. In April of 2023, a confidential human source conducted a controlled purchase of methamphetamine from Kraft. The confidential source was able to purchase 50 grams of meth from Kraft, which the state lab tested and confirmed had a purity of 95%, for 46 grams of pure meth. The source also reported to law enforcement that Kraft had a .45 caliber handgun on his person during the controlled buy. Approximately two weeks after the controlled buy, Kraft, who was on state probation and a convicted felon at the time, had his residence searched as part of his probation term. That search located a .45 caliber pistol, as well as meth and meth related drug paraphernalia. In imposing the sentence, Judge Bazis commented on the possession of the firearm, and the fact that Kraft was on state probation at the time of the federal offense. However, the Judge also noted Kraft’s exemplary work after the April events, including various addiction related programing and treatment that Kraft has completed as a reason for not imposing a lengthier sentence. This case was investigated by the CODE Task Force which is made up of law enforcement agencies throughout a 22-county area in west-central/southwest Nebraska and federal partners in the Federal Bureau of Investigation (FBI), Drug Enforcement Administration (DEA), Homeland Security Investigations (HSI) and United States Postal Inspection Services (USPIS).


title: Lincoln Man Sentenced for Possession of Ammo and Firearm

component: USAO - Nebraska

body_text: United States Attorney Susan Lehr announced that Jared Mutchie, age 35, of Lincoln, Nebraska, was sentenced September 19, 2024, in federal court in Lincoln for being a felon in possession of a firearm and ammunition. United States District Judge Susan M. Bazis sentenced Mutchie to 96 months’ imprisonment. There is no parole in the federal system. After Mutchie’s release from prison, he will begin a 3-year term of supervised release. In March 2024, investigators with the Lincoln Police Department were conducting surveillance at a gas station on O Street. While there, investigators observed a black 2006 Pontiac with no license plates enter the parking lot. A male passenger was visible in the car, and investigators were able to identify him as Jared Mutchie. Investigators confirmed that Mutchie had an active felony arrest warrant for possession of a controlled substance and called for a marked cruiser to assist in contacting and taking Mutchie into custody. As the marked police cruiser drove past, Mutchie immediately exited the front passenger seat of the car and ran to the driver side of the vehicle. He and the driver switched seats and Mutchie began to drive the vehicle out of the parking lot, entering O Street with the cruiser behind him. The cruiser initiated emergency lights and sirens, but Mutchie failed to yield, fleeing eastbound at a high rate of speed. Speeds in the pursuit reached over 85mph. LPD called off the pursuit about the same time Mutchie lost control of the vehicle, left the roadway, and collided with a retaining wall at the intersection of 44th and O Streets. Mutchie exited the driver seat of the vehicle and attempted to flee on foot, but officers were able to locate him a short distance from the vehicle. He ignored commands to get on the ground and was reaching into his pockets and removing items. Officers were able to physically force Mutchie to the ground and take him into custody. They located a baggie of cocaine in his pocket at the time of his arrest. A search of the vehicle, which had been reported as stolen in February 2024, was conducted. Officers located about 4.5 grams of meth in the center cup holder, a zippered bag on the passenger floor of the vehicle which contained 119 .22 caliber bullets and a .22 caliber magazine with seven bullets. Upon finding the bullets, officers went back and began searching for a gun in the area around Mutchie’s physical arrest. Approximately twenty feet from where Mutchie was physically seized, law enforcement located a Smith and Wesson 22 Long Rifle handgun. The gun was loaded with a magazine containing 11 bullets. A review of Mutchie’s criminal history revealed felony convictions which resulted in prison sentences of at least a year. In imposing the sentence, Judge Bazis emphasized the need to protect the public from Mutchie, who has a lengthy criminal history. This case was brought as part of the Project Safe Neighborhoods (PSN), a comprehensive national strategy that creates local partnerships with law enforcement agencies to effectively enforce existing gun laws. It provides more options to prosecutors, allowing them to utilize local, state, and federal laws to ensure that criminals who commit gun crime face tough sentences. PSN gives each federal district the flexibility it needs to focus on individual challenges that a specific community faces. This case was investigated by the Lincoln Police Department.


title: Foreign National Sentenced to Over 4 1/2 Years for Possession with Intent to Distribute Methamphetamine

body_text: United States Attorney Susan Lehr announced that Rafael Perea Arce aka Rafael Parea Arce, age 27, of Mexico, was sentenced on September 19, 2024, in federal court in Lincoln, Nebraska for one count of possession with the intent to distribute 50 grams or more of actual meth. United States District Judge Susan M. Bazis sentenced Perea Arce to a total of 55 months’ imprisonment. There is no parole in the federal system. After Perea Arce’s release from prison, he will begin a 5-year term of supervised release. On November 30, 2023, a Nebraska State Patrol trooper pulled over a vehicle for a suspended vehicle registration on Interstate 80 in Hall County, Nebraska. The driver was identified by his Mexico driver’s license as Rafael Perea Arce. During the stop, Perea Arce admitted that he had drugs in the vehicle that he was transporting them from Arizona to Minnesota. The trooper searched the vehicle and found a large duffle bag that contained 45 individual packages containing a white crystalline substance. The white crystalline substance was sent to the State Patrol Crime Lab and they confirmed that each package contained meth. The total weight of the meth was just under 20 kilograms. The Crime Lab tested one of the packages for purity. The meth in that package weighed 449 grams. It was 95.6 % pure and contained at least 410 grams of meth actual. This case was investigated by the Nebraska State Patrol.


title: Plattsmouth Man Sentenced to 15 Years for Meth and Firearm Offenses

body_text: United States Attorney Susan Lehr announced that Gerald Storovich, age 44, of Plattsmouth, Nebraska, was sentenced September 19, 2024, in federal court in Omaha, Nebraska for distribution of methamphetamine, possession with intent to distribute meth, and possession of a firearm in furtherance of a drug trafficking crime. Chief United States District Judge Robert F. Rossiter, Jr. sentenced Storovich to 180 months’ imprisonment. There is no parole in the federal system. After Storovich’s release from prison, he will begin a 5-year term of supervised release. In February and March of 2023, an undercover agent contacted Storovich to purchase meth. The meth purchases ranged from half an ounce purchased on February 2, 2023, to a pound of meth purchased on March 2, 2023. On March 30, 2023, Storovich met the undercover agent for the purpose of selling a 9mm handgun. Storovich told the undercover agent he had stolen the handgun while in Kansas City. Officers arrested Storovich and searched his vehicle, finding approximately an ounce of meth, two ounces of cannabis, a digital scale, baggies, and $810 cash. This case was investigated by the Omaha Police Department and the Drug Enforcement Administration.


title: Philadelphia Man Pleads Guilty to Making Fantasy Football-Related Bomb Threat and Mass Shooting Threat

body_text: PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Matthew Gabriel, 25, of Philadelphia, Pennsylvania, pleaded guilty before United States District Court Judge Timothy J. Savage to two counts of interstate and foreign communication of a threat to injure. According to the guilty plea agreement, the defendant had an online disagreement with a member of his fantasy football chat group. Gabriel learned that the member with whom he had a disagreement was going to study abroad in Norway in August of 2023. On August 3, 2023, Gabriel, while located in the Eastern District of Pennsylvania, submitted an anonymous “tip” through the internet to the Norwegian Police Security Service, also known as Politiets Sikkerhetstjeneste (“PST”), claiming that a member of his fantasy football chat group was going to carry out a mass shooting in Norway: On August 15th a man named [Victim 1] is headed around oslo and has a shooting planned with multiple people on his side involved. they plan to take as many as they can at a concert and then head to a department store. I don’t know any more people then that, I just can’t have random people dying on my conscience. he plans to arrive there unarmed spend a couple days normal and then execute the attack. please be ready. he is around a 5 foot 7 read head coming from America, on the 10th or 11th I believe. he should have weapons with him. please be careful Law enforcement in Norway and the United States spent hundreds of man-hours reacting to and investigating the threatened mass shooting over the course of a five-day period. When interviewed by the FBI, Gabriel admitted that he had submitted the “tip” to the PST and that the tip was false. Then, on March 22, 2024, the defendant, again while located in the Eastern District of Pennsylvania, sent an email posing as another individual to the University of Iowa with the subject line “Possible Threat.” The email stated: Hello, I saw this in a group chat I’m in and just want to make sure everyone is safe and fine. I don’t want anything bad to happen to any body. Thank you. A man named [PERSON 1] from I believe Nebraska sent this, and I want to make sure that it is a joke and no one will get hurt. The email then contained a screenshot from the fantasy football group of a message that stated “Hello University of Iowa a man named [Victim 1] told me he was gonna blow up the school.” Gabriel knew that the victim was not going to blow up the university and that the message had been sent in jest by another member of the fantasy football group regarding Gabriel’s prior threat. Despite knowing that there was no actual threat to the University of Iowa, the defendant transmitted the email knowing that the University of Iowa would view it as a true threat. “While already being prosecuted for one hoax threat spurred by, of all things, his fantasy football league, Matthew Gabriel inexplicably decided to send another,” said U.S. Attorney Romero. “His actions were extremely disruptive and consumed significant law enforcement resources on two continents, diverting them from actual incidents and investigations. Hoax threats aren’t a joke or protected speech, they’re a crime. My advice to keyboard warriors who’d like to avoid federal charges: always think of the potential consequences before you hit ‘post’ or ‘send.’” “You do not get to express emotions through violence or threats of violence,” said Wayne A. Jacobs, Special Agent in Charge of FBI Philadelphia. “We thank our international partners for their assistance in bringing together this case. The FBI will continue to work alongside partners at all levels to protect our community.” The defendant faces a maximum possible sentence of five years’ imprisonment, three years of supervised release, a $250,000 fine, and a $100 special assessment. The case was investigated by the FBI and is being prosecuted by Assistant United States Attorney Danielle Bateman. Substantial assistance was provided by the Norwegian Police Security Service, also known as Politiets Sikkerhetstjeneste.


title: Man Sentenced for Multimillion-Dollar Scheme to Defraud Factoring Companies

body_text: ATLANTA - Micky Lee Wagner, also known as “Clifton Leigh Wagner Martin,” “Mickey Lee Wagner,” “Leigh Wagner,” “Michy Wagner,” “Lee Wagner,” and “Dr. Leigh,” has been sentenced to federal prison for operating a scheme to defraud factoring companies of more than $5 million while using stolen identities. “Wagner has an extensive history of devising schemes to take advantage of unsuspecting businesses and individuals,” said U.S. Attorney Ryan K. Buchanan. “Thanks to the diligence of our federal law enforcement partners at FBI, a measure of justice has been achieved that will also prevent Wagner from victimizing others.” “Wagner took great measures to create the fraudulent billing scheme to use these companies like his personal ATM,” said FBI Atlanta Special Agent in Charge Keri Farley. “His actions not only harmed businesses, but also the victims of his identity theft. Wagner will now have several years behind bars to consider the impact of his actions.” According to U.S. Attorney Buchanan, the charges and other information presented in court: Wagner was the owner and CEO of Right Step Staffing, Inc., in Atlanta, Georgia. Right Step Staffing was purportedly a personnel staffing company that provided temporary employees to other businesses. Wagner used stolen identities to create a false impression that he had workers; then he falsely claimed that his staffing company provided temporary workers to major businesses, including Kroger Distribution, Material in Motion, Duracell, and Clorox. But Right Step Staffing had no relationship with those businesses. Based on Wagner’s misrepresentations, a factoring company in Fort Lauderdale, Florida entered into a contract with Right Step Staffing to purchase its accounts receivable to collect money on outstanding invoices that businesses supposedly owed to Right Step Staffing for temporary workers. Factoring companies advance funds through these kinds of arrangements so that staffing companies can meet their payroll obligations in a timely fashion. To further the fraud, Wagner deceived the factoring company by providing them with fraudulent customer contracts, when in fact, Right Step Staffing had no agreements with the businesses. Wagner also provided the factoring company with email addresses that supposedly belonged to representatives of the businesses, as a means to confirm that Right Step Staffing supplied employees to their businesses. The email addresses appeared similar to the real businesses’ email addresses but were deceptively created by Wagner to defraud the factoring company. After entering into the agreement, Right Step Staffing sent fraudulent invoices to the factoring company claiming that it had provided temporary workers to the businesses. These invoices totaled over $6 million during a several-month period, resulting in actual payments of more than $5 million to Wagner. Wagner spent the fraudulent proceeds from the scheme to purchase real estate, a café, multiple luxury vehicles, plastic surgery, and a Royal Caribbean cruise, and he also diverted a substantial amount of cash for his personal use. After his indictment in July 2022, Wagner fled to Kansas City, Missouri, where he evaded arrest for nearly a year. In July 2023, FBI agents arrested Wagner as he was leaving a residence in Kansas City. Also after his indictment in July 2022, Wagner defrauded another factoring company based in Minnesota. He stole more than $750,000 from that business. Wagner unsuccessfully attempted to defraud other factoring companies around the same time. Wagner has multiple prior felony convictions, including a prior federal fraud conviction from 2001. He fled Kansas City while on supervised release for that conviction. Micky Lee Wagner, 57, of Atlanta, Georgia, and Kansas City, Missouri, was sentenced by U.S. District Judge J. P. Boulee to seven years, 10 months in prison to be followed by three years of supervised release. He was also ordered to pay restitution in the amount of $3,092,512.88. Wagner was convicted of wire fraud and aggravated identity theft on April 24, 2024, after he pleaded guilty. This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorneys Stephen H. McClain and Sekret T. Sneed prosecuted the case. For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga .


title: Knoxville Woman Sentenced To Over Eight Years In Murder For Hire Plot

component: USAO - Tennessee, Eastern

body_text: KNOXVILLE, Tenn. – On September 18, 2024, Melody Sasser, 48, of Knoxville, TN, was sentenced to a term of imprisonment of 100 months by the Honorable Thomas A. Varlan, United States District Judge, in the United States District Court for the Eastern District of Tennessee at Knoxville. Following her imprisonment, Sasser will be on supervised release for three years. Sasser was also ordered to pay over $5,389.31 in restitution to the victim in this case. As part of the plea agreement filed with the court, Sasser pled guilty to using interstate commerce facilities in the commission of murder-for-hire, in violation of 18 U.S.C. § 1958. According to filed court documents, Sasser admitted to using a dark web-hosted site known as the Online Killers Market for the purpose of hiring a hitman to murder an Alabama resident. In her communications with the site, Sasser provided photographs and location information of the victim. Sasser also requested that the killing appear “to seem random or accident. Or plant drugs, do not want a long investigation.” In exchange for the anticipated murder of the victim, Sasser used the internet to transmit nearly $10,000 in cryptocurrency to the would-be assassins. Ultimately, the plan was unsuccessful. Sasser was arrested, and her home searched. At her house, law enforcement uncovered a journal listing out several other hitman websites, a handwritten account of communications with the Online Killers Market, and a stack of U.S. currency underneath a sticky note listing a Bitcoin address. United States Attorney Francis M. Hamilton III and Homeland Security Investigations (HSI) Special Agent in Charge Rana Saoud made the announcement. The charges were the result of an investigation by HSI Knoxville and HSI Birmingham, with the assistance of the Knoxville Police Department and the Prattville, Alabama Police Department. Assistant U.S. Attorney Anne-Marie Svolto of the Eastern District of Tennessee is prosecuting the case. ###


title: Nigerian National Extradited From France To Face Charges For His Alleged Role In A Scheme To Steal Government Benefits, Including More Than $8 Million In Federal Emergency Assistance

component: USAO - Maryland

body_text: Greenbelt , Maryland – Newton Ofioritse Jemide, a Nigerian national, was extradited from France to the United States on September 13, 2024 to face federal charges for wire fraud and money laundering conspiracies in a scheme to fraudulently obtain federal benefits. Jemide had his initial appearance on September 16, 2024, and is currently detained pending trial. The extradition was announced by Philip Selden, First Assistant United States Attorney for the District of Maryland; Special Agent in Charge Mark I. Tasky of the Department of Homeland Security (DHS) – Office of Inspector General; Special Agent in Charge Colleen Lawlor of the Social Security Administration (SSA) Office of Inspector General; Special Agent in Charge Matthew R. Stohler of the U.S. Secret Service – Washington Field Office; Andrew McKay, Treasury Inspector General for Tax Administration (TIGTA). During the time period covered by the indictment, the Federal Emergency Management Agency (FEMA) was responsible for providing emergency benefits and compensation for damage to victims who were affected by declared national emergency disasters, such as hurricanes and wildfires. Among other benefits, an individual in an area affected by a national disaster was immediately eligible for “Critical Needs Assistance” (CNA) to purchase life-saving or life sustaining materials. The assistance was paid to the victim in a manner of his/her choosing, including being deposited onto pre-paid debit cards. According to the two-count indictment, from 2016 through 2018 Jemide’s co-conspirators purchased hundreds of Green Dot debit cards, which they then registered with Green Dot, using the stolen personal information of identity theft victims from around the country. In 2017, amidst Hurricanes Harvey, Irma and Maria, and the California wildfires, co-conspirators allegedly applied online with FEMA for CNA using the stolen personal information of additional identity theft victims. According to the indictment, FEMA paid at least $8 million in amounts of $500 per claim to the Green Dot debit cards purchased by the co-conspirators. In addition to filing false disaster-assistance claims with FEMA, the indictment alleges that co-conspirators also filed false claims online for Social Security benefits, for IRS tax refunds and for other government benefits, using the stolen identities of multiple additional individuals, including names, addresses, Social Security Numbers (“SSN”) and other personal identifiers. The indictment alleges that FEMA, and the other federal agencies to whom fraudulent applications for benefits were submitted, deposited the falsely claimed benefits directly onto the Green Dot debit cards. After the funds were placed onto the Green Dot debit cards, Jemide and his co-conspirators then informed other conspirators that funds were available on the cards, and provided information to facilitate “cashing out” the funds from the cards, which co-conspirators did in exchange for a commission. The co-conspirators cashed out the cards by depositing the money into bank accounts, and/or through ATM withdrawals or purchases of money orders. According to the indictment, the co-conspirators took steps to conceal their identities and the conspiracy and scheme to defraud, including by enlisting other individuals to make the purchases and withdrawals with the cards, utilizing multiple store and bank locations and methods of withdrawal, using multiple bank accounts (including in the names of corporate entities), converting funds into cash rather than placing them into bank accounts, and making money orders payable to other individuals and/or corporate entities which they or their co-conspirators controlled. Jemide and his co-conspirators allegedly used an encrypted messaging application, e-mail and other means to communicate, and used the stolen federal funds to pay rental and housing expenses, to purchase used vehicles, and for other purposes. If convicted, Jemide faces a maximum sentence of 30 years in federal prison for conspiracy to commit wire fraud and a maximum of 20 years in federal prison for conspiracy to commit money laundering. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors. An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceeding. First Assistant U.S. Attorney Selden commended the DHS OIG, SSA OIG, USSS, TIGTA and French authorities for their work in the investigation and thanked the Justice Department’s Office of International Affairs and the United States Marshal’s Service for their valuable assistance to secure the extradition of Jemide to the United States. Mr. Selden thanked Assistant U.S. Attorneys Elizabeth Wright and Darren Gardner, who are prosecuting the federal 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/community-outreach . # # #


title: Readout of Justice Department’s Civil Rights Division’s Meeting LGBTQI+ Community Stakeholders

component: Civil Rights Division

body_text: The Justice Department convened on Monday its quarterly interagency meeting with LGBTQI+ community stakeholders. Members of the Office of the Attorney General and the LGBTQI+ Working Group of the Justice Department’s Civil Rights Division outlined relevant enforcement efforts across the department and highlighted actions to address discrimination in education and employment and combat hate crimes. Assistant Secretary of Education Catherine Lhamon of the Department of Education’s Office for Civil Rights also addressed the attendees and highlighted efforts to ensure safe learning environments at schools, colleges and universities. Justice Department leadership, including representatives from the Civil Rights Division, FBI, Community Relations Service, Office of Justice Programs, Office on Violence Against Women, Office of Victims of Crimes and Office of Juvenile Justice and Delinquency Prevention, heard from participating organizations about discrimination faced by LGBTQI+ students, parents and teachers; barriers to access to gender-affirming medical care for LGBTQI+ people; health data privacy concerns; the need to increase intersex awareness; and hate crimes. Representatives from other government agencies, including the Departments of Education, Health and Human Services, Homeland Security, Veterans Affairs, Labor and State, as well as the Equal Employment Opportunity Commission, Consumer Financial Protection Bureau, Environmental Protection Agency, National Endowment of the Arts and AmeriCorps, were also in attendance. Combating hate crimes and addressing claims of discrimination are among the division’s top priorities. Monday’s meeting represents the division’s ongoing efforts to engage with LGBTQI+ organizations and stakeholders on issues affecting LGBTQI+ communities. The department has continued to prosecute hate crimes, including obtaining several life sentences for the perpetrator of the mass shooting at Club Q, an LGBTQI+ establishment in Colorado Springs, Colorado. The department also filed a statement of interest in a case challenging a policy in Florida schools prohibiting teachers from using personal titles and pronouns inconsistent with their sex assigned at birth and a statement of interest in a case challenging a Georgia school district’s alleged retaliation against a teacher for her support of LGBTQI+ students and her opposition to the hostile environment they were allegedly subject to as a result of bullying and harassment. These and other efforts by the Civil Rights Division can be found on its website at its LGBTQI+ Working Group page. Members of the LGBTQI+ Working Group convene for the quarterly interagency meeting with LGBTQI+ community stakeholders.


title: U.S. Attorney’s Office for the District Of New Jersey, Justice Department and Department of Housing and Urban Development Secure over $15 Million from OceanFirst Bank to Resolve Redlining Claims in New Jersey

body_text: gaujaraatai.pdf espanol.pdf NEWARK, N.J. – The U.S. Attorney’s Office for the District of New Jersey, the Justice Department’s Civil Rights Division, and Department of Housing and Urban Development (HUD) announced today that OceanFirst Bank, N.A. has agreed to pay over $15 million to resolve allegations that it engaged in a pattern or practice of lending discrimination by redlining predominantly Black, Hispanic and Asian neighborhoods in Middlesex, Monmouth and Ocean Counties in New Jersey. Redlining is an illegal practice in which lenders avoid providing credit services to individuals living in communities of color because of the race, color or national origin of residents in those communities. In October 2021, Attorney General Garland and Assistant Attorney General Clarke launched the Justice Department’s Combating Redlining Initiative , a coordinated enforcement effort to address this persistent form of discrimination against communities of color. The initiative is expanding the department’s reach by strengthening partnerships with U.S. Attorneys’ Offices around the country, regulatory partners, and its partners in state Attorneys General offices. Since 2021, the department has announced 13 redlining resolutions and secured over $137 million in relief for communities of color that have been the victims of lending discrimination across the country. “This settlement, and the over $137 million in relief the Justice Department has secured for communities across the country, will help to ensure that future generations of Americans inherit a legacy of home ownership that they have been too often denied,” said Attorney General Merrick B. Garland. “Redlining is unlawful, it is harmful, and it is wrong. The Justice Department will continue to hold banks and mortgage companies accountable for redlining and to secure relief for the communities that continue to be harmed by these discriminatory practices.” “Redlining creates an unequal playing field that unfairly prevents many persons of color from achieving the American dream of home ownership, and this type of systemic and intentional discrimination cannot and will not be tolerated. It is wholly unacceptable that redlining persists into the 21 st Century, and we are committed to ensuring that all of our citizens have the chance to put down roots in their own home as this helps build stronger communities for all of us. This agreement is a major step forward in removing illegal and discriminatory barriers in residential mortgage lending in New Jersey.” U.S. Attorney Philip R. Sellinger “Far too often, communities of color have been denied equal access to credit and the opportunity to build generational wealth,” Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division said. “Through our historic efforts to combat modern day redlining, we have opened up new homeownership opportunities for impacted families and communities. This agreement underscores the Justice Department’s commitment to holding banks and financial institutions accountable for their discriminatory actions while ensuring racial and economic justice for all Americans.” “Redlining is not only illegal, but it unfairly closes doors of economic opportunity for thousands of families of color in this country,” said HUD Acting Secretary Adrianne Todman. “Together with our partners at the Justice Department, HUD remains committed to enforcing the Fair Housing Act by rooting out all forms of discrimination in housing. Today’s announcement underscores our shared commitment to achieving justice and creating equitable opportunities for Americans, particularly those who have historically been denied access.” The Justice Department’s complaint, which was filed today in the U.S. District Court for the District of New Jersey, alleges that, from 2018 through at least 2022, OceanFirst Bank failed to provide mortgage lending services to predominantly Black, Hispanic, and Asian neighborhoods in Middlesex, Monmouth, and Ocean Counties and discouraged people seeking credit in those communities from obtaining home loans. Specifically, the complaint alleges that OceanFirst disproportionately focused its outreach and advertising on majority-white communities, placed its branches in majority-white neighborhoods, and closed its only branches in the majority-Black, Hispanic, and Asian neighborhoods in those counties. The Justice Department has resolved its claims via a proposed consent order, which is subject to court approval. Additionally, OceanFirst and HUD have entered into a conciliation agreement with equivalent terms. In those resolutions, OceanFirst has agreed to do the following: Invest at least $14 million in a loan subsidy fund to increase access to home mortgage, home improvement, and home refinance loans for residents of majority-Black, Hispanic, and Asian neighborhoods in Middlesex, Monmouth, and Ocean Counties; Spend $400,000 on community partnerships to provide services related to credit, consumer financial education, homeownership, and foreclosure prevention for residents of predominantly Black, Hispanic, and Asian neighborhoods in those counties; Spend $700,000 on advertising, outreach, consumer financial education, and credit counseling focused on predominantly Black, Hispanic, and Asian neighborhoods in those counties; Open a loan production office and maintain the bank’s recently opened full-service branch, both located in predominantly Black, Hispanic, and Asian neighborhoods in those counties, with at least one mortgage loan officer assigned to each location; Conduct a community credit needs assessment, evaluate its fair lending compliance management systems, and conduct staff trainings on fair lending; and Hire a director of community lending who will oversee the continued development of home mortgage lending in communities of color. The U.S. Attorney’s Office and the Justice Department’s Civil Rights Division opened their investigation into OceanFirst’s lending practices after receiving a referral from the bank’s regulator, the Office of the Comptroller of the Currency (OCC). OceanFirst cooperated with this investigation and worked with the Department of Justice and HUD to resolve the redlining allegations. Information about the Justice Department’s fair lending enforcement work can be found at www.justice.gov/fairhousing . Individuals may report lending discrimination by calling the U.S. Justice Department’s housing discrimination tip line at 1-833-591-0291 or submitting a report online . Information about the U.S. Attorney’s Office’s civil rights enforcement may be found at www.justice.gov/usao-nj/civil-rights-enforcement . Individuals in the District of New Jersey may also report civil rights violations here or by calling the U.S. Attorney’s Civil Rights Hotline at (855) 281-3339. The government is represented by Assistant U.S. Attorney Susan Millenky of the U.S. Attorney’s Office’s Civil Rights Division and Trial Attorney Nathan Shulock, U.S. Department of Justice, Civil Rights Division, Housing and Civil Enforcement Section. oceanfirst.complaint.pdf oceanfirst.consent_order.pdf


title: Readout of Assistant Attorneys General Kristen Clarke and Carlos Uriarte’s Trip to El Paso, Texas

body_text: Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division and Assistant Attorney General Carlos Uriarte of the Justice Department’s Office of Legislative Affairs traveled to El Paso, Texas, on Sept. 16 to engage with stakeholders in underserved communities and reaffirm the department’s commitment to protecting the civil rights of all Americans. U.S. Attorney Jamie Esparza for the Western District of Texas joined them for the meetings. This year marks the fifth anniversary of the tragic mass shooting at the Cielo Vista Walmart that claimed the lives of 23 and wounded 22 more. In July 2023, the Justice Department secured 90 consecutive life sentences for the defendant responsible for these hate crime acts. The Assistant Attorneys General and the U.S. Attorney visited a memorial dedicated to those who lost their lives and were injured that day. In the morning, Assistant Attorney General Clarke and Assistant Attorney General Uriarte participated in a fireside chat with junior and senior students at Burges High School, which is predominantly Latino. The Assistant Attorneys General, along with U.S. Attorney Esparza, discussed their respective career paths and roles at the Justice Department and encouraged the students to pursue public service. In the afternoon, Assistant Attorney General Clarke and U.S. Attorney Esparza met with local leaders and community stakeholders for a listening session to hear the most pressing civil rights issues residents are facing in El Paso. They highlighted the Justice Department’s efforts to address predatory lending in communities of color ; unconstitutional conditions inside juvenile detention facilities ; improve language access; and ensure equal educational opportunity. Following the listening session, Assistant Attorney General Clarke met with the U.S. Attorney’s Office for the Western District of Texas. She thanked the office’s leadership and staff for their service and commitment to protecting civil rights. Assistant Attorney General Clarke ended her trip at the El Paso Center for Children, a nonprofit organization founded in 1919 that is dedicated to providing universal care and development services for children and families in the greater El Paso area. The Center received a grant from the Justice Department’s Office of Juvenile Justice and Delinquency Prevention through their Children Exposed to Violence program. The staff described their work and the challenges they face as they assist hundreds of families impacted by violence, including the mass shooting at the Cielo Vista Walmart. Assistant Attorneys General Clarke and Uriarte view the memorial at the Cielo Vista Walmart. Assistant Attorneys General Clarke and Uriarte and U.S. Attorney Esparza speak at Burges High School. Assistant Attorneys General Clarke and Uriarte and U.S. Attorney Esparza with students and staff from Burges High School. Assistant Attorney General Clarke and U.S. Attorney Esparza with local leaders and stakeholders at the El Paso community meeting.


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

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


title: Justice Department Files Lawsuit Against Owner and Operator of the Vessel that Destroyed the Francis Scott Key Bridge

component: Office of the Attorney General

body_text: The Justice Department filed a civil claim today in the U.S. District Court for the District of Maryland against Grace Ocean Private Limited and Synergy Marine Private Limited, the Singaporean corporations that owned and operated the container ship that destroyed the Francis Scott Key Bridge. In the early morning hours of March 26, the Motor Vessel DALI left the Port of Baltimore bound for Sri Lanka. While navigating through the Fort McHenry Channel, the vessel lost power, regained power, and then lost power again before striking the bridge. The bridge collapsed and plunged into the water below, tragically killing six people. In addition to this heartbreaking loss of life, the wreck of the DALI and the remnants of the bridge obstructed the navigable channel and brought all shipping into and out of the Port of Baltimore to a standstill. The loss of the bridge also severed a critical highway in our transportation infrastructure and a key artery for local commuters. The suit seeks to recover over $100 million in costs the United States incurred in responding to the fatal disaster and for clearing the entangled wreck and bridge debris from the navigable channel so the port could reopen. “The Justice Department is committed to ensuring accountability for those responsible for the destruction of the Francis Scott Key Bridge, which resulted in the tragic deaths of six people and disrupted our country’s transportation and defense infrastructure,” said Attorney General Merrick B. Garland. “With this civil claim, the Justice Department is working to ensure that the costs of clearing the channel and reopening the Port of Baltimore are borne by the companies that caused the crash, not by the American taxpayer.” The United States led the response efforts of dozens of federal, state, and local agencies to remove about 50,000 tons of steel, concrete, and asphalt from the channel and from the DALI itself. While these removal operations were underway, the claim alleges that the United States also cleared a series of temporary channels to start relieving the bottleneck at the port and mitigate some of the economic devastation caused by the DALI. The Fort McHenry Channel was cleared by June 10, and the Port of Baltimore was once again open for commercial navigation. “The owner and operator of the DALI were well aware of vibration issues on the vessel that could cause a power outage. But instead of taking necessary precautions, they did the opposite,” said Principal Deputy Associate Attorney General Benjamin C. Mizer . “Out of negligence, mismanagement, and, at times, a desire to cut costs, they configured the ship’s electrical and mechanical systems in a way that prevented those systems from being able to quickly restore propulsion and steering after a power outage. As a result, when the DALI lost power, a cascading set of failures led to disaster.” Indeed, the lawsuit specifically asserts that none of the four means that should have been available to help steer the DALI — the propeller, rudder, anchor, or bow thruster — worked when they were needed to avert or even mitigate this disaster. “This was an entirely avoidable catastrophe, resulting from a series of eminently foreseeable errors made by the owner and operator of the DALI,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. "The suit seeks to recover the costs incurred by the United States in responding to this disaster, which include removing the bridge parts from the channel and those parts that were entangled with the vessel, as well as abating the substantial risk of oil pollution.” “In so many ways, the Key Bridge has symbolized the resilience of both the State of Maryland and our Nation. In a very real way, the Key Bridge was a pathway to the American Dream. A part of our culture is gone,” said U.S. Attorney Erek L. Barron for the District of Maryland. “Those responsible for the Key Bridge collapse will be held accountable.” The Justice Department’s claim also seeks punitive damages to deter the owner and operator of the DALI and others. During a press call announcing the Justice Department’s actions, Acting Deputy Assistant Attorney General Chetan Patil of the Civil Division explained, “This accident happened because of the careless and grossly negligent decisions made by Grace Ocean and Synergy, who recklessly chose to send an unseaworthy vessel to navigate a critical waterway and ignored the risks to American lives and the nation’s infrastructure.” The Department’s claim is part of a legal action the owner and operator of the DALI initiated shortly after the tragedy, in which they seek exoneration or limitation of their liability to approximately $44 million. “Wholly preventable failures by the owner and operator of the DALI caused this tragic incident that cost six bridge construction workers their lives and closed one of the largest ports on the East Coast,” said Rear Admiral Laura M. Dickey, Deputy for Operations Capability and Policy of the U.S. Coast Guard. “The Coast Guard quickly responded by establishing a Unified Command with federal, state, and local stakeholders to rapidly open alternative channels and restore the Port of Baltimore to full operations in just over two months. We stand ready to support the Justice Department to ensure that those responsible for this tragedy pay the costs of reopening the Port.” The claim on behalf of the United States does not include any damages for the reconstruction of the Francis Scott Key Bridge. The State of Maryland built, owned, maintained, and operated the bridge, and attorneys on the State’s behalf may file their own claim for those damages. Subsequently, pursuant to the governing regulation, funds recovered by the State of Maryland for reconstruction of the bridge will be used to reduce the project costs paid by federal taxpayer dollars. The United States is represented in the filed action by attorneys from the Civil Division’s Aviation, Space & Admiralty Litigation Section and from the U.S. Attorney’s Office for the District of Maryland, Baltimore Division. The claims alleged by the United States are allegations only. There has been no determination of liability. Complaint