title: Nine South Carolina Department of Corrections Inmates and Six Others Charged in Nearly $5 Million Fraud Scheme

component: USAO - South Carolina

body_text: COLUMBIA, SOUTH CAROLINA — A federal grand jury has returned a 51-count indictment against nine current or former inmates in the South Carolina Department of Corrections (SCDC) and six other individuals who were either friends or relatives of the inmates for wire fraud and conspiracy to commit wire fraud. The indictment alleges that, beginning in March 2020 and continuing through December 2020, nine SCDC inmates engaged in a scheme to fraudulently obtain various COVID-19 unemployment benefits administered through the South Carolina Department of Employment and Workforce (SCDEW) and through Pennsylvania, North Carolina, Nevada, New Jersey, Missouri, Arizona, and California. The indictment further alleges the defendants conspired and coordinated with other inmates and friends and relatives outside of SCDC to submit unemployment claims to SCDEW using the Personal Identification Information (PII) of both inmates in SCDC and individuals outside the prison system. The incarcerated inmates harvested PII, like social security numbers and dates of birth, from other inmates and used the PII to apply for COVID unemployment benefits in the names of those inmates as well as themselves. Some inmates provided their PII willingly in exchange for a portion of the proceeds derived from the unemployment benefits. Other inmates had no knowledge that unemployment benefits were being applied for on their behalf. The incarcerated defendants also obtained the PII of unwitting individuals outside of SCDC using various extortion schemes. One of the primary schemes utilized by the defendants was known as “Johning.” Using contraband cellphones within SCDC, inmates posed as younger males or females and lured individuals to send them nude or compromising photos. After obtaining the photos, the inmates contacted the victims posing as law enforcement. The inmates then extorted the victims into sending them money and/or photos of their social security cards and driver’s licenses. The non-incarcerated defendants received the unemployment benefits in the names of the extortion victims and SCDC inmates in the form of government checks and prepaid Visa debit cards. They then used ATM withdrawals, wire transfers, and mobile banking applications to make the proceeds available to the incarcerated defendants. In total, the indictment alleges the fraudulent scheme resulted in a loss of approximately $4,996,673.00 to the United States Government. The specific charges in the indictment are as follows: Reginald Raynard White, Jr., an SCDC inmate, faces twenty counts of wire fraud and one count of conspiracy to commit wire fraud; Christopher Ford, an SCDC inmate, faces one count of wire fraud and one count of conspiracy to commit wire fraud; Marvin Lee Trotter, an SCDC inmate, faces two counts of wire fraud and one count of conspiracy to commit wire fraud; Dawn Hall, of Kansas City, MO, faces ten counts of wire fraud and one count of conspiracy to commit wire fraud; Benika Kershaw, Chester, SC, faces one count of conspiracy to commit wire fraud; Albert J. Cave, Jr., an SCDC inmate, faces one count of wire fraud and one count of conspiracy to commit wire fraud; Jason Andrew Cash, an SCDC inmate, faces eight counts of wire fraud and one count of conspiracy to commit wire fraud; Stepheno Lemain Alston, an SCDC inmate, faces seven counts of wire fraud and one count of conspiracy to commit wire fraud; James Griffin, an SCDC inmate, faces five counts of wire fraud and one count of conspiracy to commit wire fraud; John Travis Mace, an SCDC inmate, faces four counts of wire fraud and one count of conspiracy to commit wire fraud; Ronald Gene Harvey, an SCDC inmate, faces four counts of wire fraud and one count of conspiracy to commit wire fraud; Bridgette Cash, of Landrum, SC, faces one count of wire fraud and one count of conspiracy to commit wire fraud; Latasha Alston, of St. Helena Island, SC, faces eight counts of wire fraud and one count of conspiracy to commit wire fraud; Lori Robinson, of Monroe Township, NJ, faces one count of conspiracy to commit wire fraud; Jessica Howell, of Southport, NC, faces one count of conspiracy to commit wire fraud. Each alleged count of wire fraud and each alleged count of conspiracy to commit wire fraud is punishable by up to 30 years in prison and a fine of up to $1,000,000. All charges in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty. This investigation remains ongoing. The case was investigated by the United States Secret Service; the South Carolina Department of Corrections, Office of Inspector General; and the South Carolina Law Enforcement Division, with assistance from the South Carolina Department of Employment and Workforce. Assistant U.S. Attorneys Winston Holliday and Scott Matthews are prosecuting the case. ###


title: Rock Hill Man with Pending Attempted Murder Charge Sentenced to 188 Months in Federal Prison for Illegally Possessing Gun

body_text: COLUMBIA, SOUTH CAROLINA — William Allen Austin, 50, of Rock Hill, was sentenced to 188 months in federal prison after pleading guilty to being a felon in possession of a firearm and ammunition. Evidence presented to the court showed that on March 1, 2022, Austin drove to Pineville, NC, to stab his ex-girlfriend while she was at a new job orientation. Surveillance footage captured Austin driving into and fleeing from the facility, and witnesses identified him. The victim of the attack had an emergency protective order against Austin because of repeated threatening and harassing conduct from Austin, including slashing her car tires, following her to a hotel, sending threatening messages, and throwing a brick through her house window. Austin was subsequently arrested by the York County Sheriff’s Office and the United States Marshals Service on March 3, 2022, for attempted murder related to the March 1 stabbing. At the time of his arrest, Austin possessed a 9mm Taurus pistol, which was loaded. Federal law prohibits Austin from possessing firearms or ammunition due to numerous prior felony drug convictions. After Austin was released on bond out of Mecklenburg County, evidence showed that on April 4, 2022, Austin set fire to the victim’s residence in Rock Hill, SC. Surveillance footage showed Austin parking on a street behind the victim’s residence and walking towards her house, before running back to his vehicle. Within minutes of Austin leaving the scene, smoke was visible on surveillance video. York County Fire Department responded to the victim’s home, which was severely damaged and deemed uninhabitable. United States District Court Judge Mary Geiger Lewis sentenced Austin to 188 months in prison to be followed by a five-year term of court-ordered supervision. There is no parole in the federal system. The case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, 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. The case was investigated by the York County Sheriff’s Office, the York County Fire Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Elle E. Klein is prosecuting the case.


title: St. Louis County Man Admits Three Pandemic-Related Frauds

component: USAO - Missouri, Eastern

body_text: ST. LOUIS – A man from St. Louis County, Missouri on Friday pleaded guilty to federal charges and admitted fraudulently receiving more than $42,000 from two pandemic loans and unemployment compensation that included more pandemic funds. Charles Carbon III, 37, pleaded guilty in front of U.S. District Judge Audrey G. Fleissig to two felonies: bank fraud and wire fraud. On June 26, 2020, Carbon applied for and received a $10,000 Economic Injury Disaster Loan, which was supposed to help business owners struggling with pandemic-related business losses. In his plea agreement, he admitted lying about the existence and purpose of a business he claimed to own, as well as the payroll, revenue and number of employees. On Aug. 6, 2020 Carbon fraudulently applied for a Paycheck Protection Program loan, again lying about the existence, purpose and finances of a business. Carbon received a $18,800 loan, which was supposed to be used for business owners to save jobs during the pandemic. Carbon then falsely claimed to be a self-employed event planner who did not have any work between March and August of 2020, and received $14,174.80 in unemployment benefits. That included $300 per week in Federal Pandemic Unemployment Compensation. In paperwork, Carbon lied about work he did in March and omitted the pandemic loans that he’d received, his plea says. As part of his plea, Carbon also admitted using four forged checks totaling $12,322. The bank fraud charge is punishable by up to 30 years in prison, a $1 million fine or both. The wire fraud charge carries a potential punishment of up to 20 years in prison, a $250,000 fine or both. The case was investigated by the U.S. Secret Service. Assistant U.S. Attorney Gwendolyn Carroll is prosecuting the case.


title: Defendants Charged in Joint Federal, State, and Local Investigation of Firearms Trafficking and Drug Distribution

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

body_text: DES MOINES, Iowa – Eleven defendants are facing federal criminal charges as part of a joint federal, state, and local law enforcement investigation. These charges result from a year-long investigation into violent acts, shootings, the possession and use of firearms, including the use of automatic switches, which qualify as machine guns under federal law, firearm straw purchasing, firearm trafficking, and distribution of fentanyl within the Des Moines area by members and associates of the criminal street gang OMB (Only My Brothers), a subset of the C-Block criminal street gang. During the investigation, law enforcement recovered shell casings at various shootings and generated investigative leads. Ninety-two guns were involved, with 73 of the involved guns seized. “Federal, state, and local law enforcement agencies will continue to work side by side to aggressively investigate crimes of violence and conduct that promotes and sustains this violence, including the trafficking of fentanyl, firearms trafficking, and straw purchasing,” stated United States Attorney Richard Westphal. “Our thanks to the dedicated local, state and federal law enforcement agents and officers whose tireless dedication to the protection of this community is exemplified by this investigation. To individuals and groups that use violent crime, firearms and drug trafficking as a means to any end, please stop or face similar consequences.” Eleven defendants are charged in five criminal indictments with federal drug and firearm related offenses: • Armani Eugene Gates, 19, also known as “OMB74” and “74,” of Des Moines, • Majok Majok, 18, also known as “Jok” and “Magok Magok,” of Des Moines, • Trent Douglas Brown, Jr., 19, also known as “TB,” of Des Moines, • Semaj Johnson, 19, also known as “Maj” and “10mill,” of Des Moines, • Santiz Cortez Langford, Jr., 19, also known as “Tiz” and “Tizwick,” of Des Moines, • Dawn Ellease Robinson, 44, also known as “Dawn Ellease Colbert,” of Des Moines, • Deon Ellease Cooper, 27, of Des Moines, • Deadrian Maurice Nelson, 18, also known as “Shiesty” and “D,” of Des Moines, • Johnetta Marie Strode, 36, of Des Moines, • Avontae Lamar Tucker, 20, also known as “Tae Tae,” of Des Moines, and • Bakier Esmaeil, 18, of Des Moines. On July 20, 2023, federal, state, and local law enforcement agencies executed nine federal search warrants that resulted in the arrest of eleven defendants, two of which were already in federal custody. The search warrants also lead to the seizure of approximately 13,000 suspected fentanyl pills, seven firearms, one machine gun conversion device, and $23,000 in cash. According to public court documents and information discussed at court hearings, Strode is Nelson’s mother and allegedly conspired to straw purchase a firearm, later found in Nelson’s possession. Robinson is the mother of both Langford and Cooper and allegedly conspired with Langford to straw a purchase a firearm later found in possession of a victim in the January 2023 Starts Right Here double homicide in Des Moines. Cooper, who is Langford’s sister, is also alleged to have purchased firearms at Langford’s direction. Gates, Majok, and Brown are charged with conspiracy to distribute fentanyl. This charge carries a mandatory minimum sentence of ten years in prison, up to life in prison. Gates, Cooper, Langford, Robinson, and Strode are charged with conspiracy to straw purchase firearms. Cooper and Robinson were charged with individually straw purchasing firearms. These charges carry a maximum sentence of 15 years in prison, with Gates facing a maximum of 25 years in prison. Cooper, Robinson, and Strode are charged with false statement during the purchase of a firearm. These charges carry a maximum sentence of five to 10 years in prison. Gates, Majok, Johnson, and Langford are charged with firearm trafficking conspiracies. Langford was charged with firearms trafficking. These charges carry a maximum sentence of 15 years in prison. Johnson and Tucker are charged with possession with intent to distribute fentanyl. Gates, Brown, and Majok were charged with distribution of fentanyl. These charges carry a maximum penalty of 20 years in prison. Langford is charged with possession with intent to distribute marijuana. This charge carries a maximum penalty of five years in prison. Tucker is charged with possession with intent to distribution five grams or more of methamphetamine. This charge carries a minimum sentence of five years in prison and a maximum sentence of 40 years in prison. Tucker is also charged with possessing and brandishing a firearm in furtherance of a crime of violence, which carries a mandatory seven-year consecutive sentence, up to life in prison. Further, Tucker is charged with interference with commerce through robbery. This charge carries a maximum penalty of 20 years in prison. Johnson and Tucker are charged with possession of a firearm in furtherance of a drug trafficking crime. This charge carries a mandatory five-year consecutive sentence, up to life in prison. Majok and Langford are charged with illegal possession of a machinegun. Majok and Langford were also charged with possession of a machinegun in furtherance of a drug trafficking crime. These charges carry a mandatory 30-year consecutive sentence, up to life in prison. Gates, Esmaeil, Johnson, Majok, Robinson, Langford, Strode, and Tucker are charged with being an unlawful drug user in possession of a firearm. Nelson was charged with being a felon and an unlawful drug user in possession of a firearm. These charges carry a maximum penalty of 10 to 15 years in prison. A federal district court judge will determine any sentence after considering the United States Sentencing Guidelines and other statutory factors. The charges were announced by Richard D. Westphal, United States Attorney for the Southern District of Iowa; Bernard Hansen, Special Agent-in-Charge of the Kansas City Field Division of the Bureau of Alcohol, Tobacco, Firearms, and Explosives; Bryan Musgrove, Postal Inspector in Charge of the Denver Division of the United States Postal Inspection Service; and Dana Wingert, Chief of Police of the Des Moines Police Department. Assistant United States Attorneys Kristin Herrera and Mallory Weiser are prosecuting the case. The Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Des Moines Police Department, and the United States Postal Inspection Service are investigating the case, with assistance from the Iowa Division of Narcotics Enforcement (DNE), Iowa State Patrol, Iowa Division of Intelligence and Fusion Center, Iowa State Patrol SWAT, United States Marshals Service, Clive Police Department, West Des Moines Police Department, Ames Police Department, Altoona Police Department, Mid-Iowa Narcotics Task Force, Polk County Sheriff’s Office, Suburban Emergency Response Team (SERT), and Metro Special Tactics and Response (STAR). This investigation is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks. An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt.


title: Alexis Candelario Santana Convicted at a Retrial of 40 Counts of Drug Trafficking, 9 Murders, and 19 Attempted Murders for the October 2009 La Tómbola Massacre in Toa Baja, Puerto Rico

body_text: SAN JUAN, Puerto Rico – A federal jury convicted Alexis Candelario Santana today for: violations of the Racketeer Influenced and Corrupt Organizations Act, 8 murders, the murder of an unborn child, 19 attempted murders, drug trafficking, and being a felon in possession. United States District Court Senior Judge Francisco A. Besosa presided over the retrial that commenced on June 20, 2023. Alexis Candelario Santana, 51, faces life in prison following his conviction of murdering eight people and an unborn child and attempting to murder 19 others during a mass shooting that occurred at a Puerto Rico on Oct. 17, 2009, in what became known as the “La Tómbola Massacre.” Candelario Santana was convicted of 28 counts of violent crime in aid of racketeering activity, one count of racketeering conspiracy, nine counts of using a firearm in relation to a crime of violence, one count of conspiracy to possess with intent to distribute a controlled substance and one count of possession of a firearm with a prior conviction. According to the evidence presented at trial, from approximately 1993 through 2003, Candelario Santana was the leader of a drug trafficking organization that operated in the Sabana Seca ward of Toa Baja, Puerto Rico. The organization purchased drugs in bulk, processed and packaged the drugs, and sold them in Sabana Seca through numerous sellers, runners, and enforcers under Candelario Santana’s direction and control. The organization trafficked in crack, cocaine, heroin, and marijuana. The members of the organization routinely possessed firearms to protect their drug points. The evidence introduced at trial also established that, between 1995 and 2001, Candelario Santana either personally killed, or ordered others to kill, 13 individuals whom he viewed as threats or as disloyal members of his drug trafficking organization. Around 2002, Candelario Santana was arrested and charged in the Commonwealth of Puerto Rico with numerous murders. Initially, Candelario Santana maintained control of the drug trafficking organization from prison with assistance from co-defendant Carmelo Rondón Feliciano, who had taken charge of the drug trafficking organization’s activities. Sometime in 2004 Candelario Santana was marginalized by co‑conspirators Wilfredo Semprit Santana and Rondón Feliciano. On September 25, 2006, however, Rondón Feliciano was arrested and charged in the District of Puerto Rico with federal drug trafficking crimes. These charges stemmed, in part, from Rondón Feliciano’s distribution of narcotics in Sabana Seca. After Rondón Feliciano’s arrest, co‑conspirator Semprit Santana assumed control of the drug trafficking organization in Sabana Seca. According to evidence presented at the second trial, Candelario Santana became infuriated at being removed from power within the drug trafficking organization. Candelario Santana was released from prison in February 2009. Thereafter, on October 17, 2009, Semprit Santana held a grand opening of a pub he rented in Toa Baja, Puerto Rico called La Tómbola. The event was heavily attended, with people congregating inside and outside the establishment. At approximately 11:50 p.m., Candelario Santana and others, drove to La Tómbola. When they arrived, they immediately opened fire on the patrons outside the establishment. Candelario Santana and others also entered the pub and opened fire on the people inside. Eight people and an 8-month unborn child were killed because of the gunfire. 19 other victims were also shot and injured. Those killed included Candelario Santana’s godson, Rondón Feliciano’s stepson and Candelario Santana’s cousin. The evidence presented at trial included 335 expended shell-casings recovered from the La Tómbola crime scene. The ballistics evidence established that 17 different firearms were used during the massacre, which included the following calibers: 9 mm, .40, 45, AK-47, and AR-15. Candelario Santana is scheduled to be sentenced on October 27, 2023. U.S. Attorney W. Stephen Muldrow of the District of Puerto Rico and Joseph González, Special Agent in Charge of the FBI San Juan Field Office, made the announcement. The case was investigated by FBI and the Puerto Rico Police Bureau, with the collaboration of U.S. Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives; the U.S. Postal Inspection Service; Instituto de Ciencias Forenses; and the Puerto Rico Department of Justice. Assistant U.S. Attorneys Víctor Acevedo-Hernández and Scott Anderson prosecuted the case. ###


title: Florida Attorney Charged in Fraudulent Charitable Contribution Tax Scheme

component: Tax Division

body_text: A federal grand jury in Fort Lauderdale returned a 34-count indictment, unsealed today, charging an attorney with conspiracy to defraud the United States, mail and wire fraud conspiracy, aiding and assisting in the preparation of false tax returns, conspiracy to obstruct an official proceeding, and other crimes arising out of his promotion of an illegal tax shelter scheme involving false charitable contribution tax deductions. According to the indictment, Michael L. Meyer of Davie, Florida, organized and sold an illegal tax shelter called the Ultimate Tax Plan to assist high-income individuals in reducing their taxes. Meyer allegedly marketed the scheme as a way for clients to claim charitable contribution tax deductions without giving up control over the assets they purportedly donated to charity and advised that clients could still access their donated assets for their own personal use through tax-free loans and execute an “exit strategy” to buy back their donations at a significantly discounted rate. The indictment further alleges that, to execute the scheme, Meyer prepared the boilerplate transaction documents, prepared appraisals of the purported donations, assisted clients in filing false tax returns, and controlled the charities that received the purported donations. For several clients, Meyer and his co-conspirators allegedly created backdated transaction documents to make it appear that a client had made a charitable contribution in a prior year and, in turn, assisted clients to falsely claim charitable tax deductions for the prior year. The indictment further alleges that Meyer represented clients in audits with the IRS, during three of which Meyer allegedly provided false documents to the IRS. In April 2018, the United States filed a Complaint for Permanent Injunction and Other Relief against Meyer seeking to enjoin him from, among others, continuing to promote the Ultimate Tax Plan. The United States allegedly issued civil subpoenas to witnesses requesting records related to the Ultimate Tax Plan. In response to the civil subpoenas, Meyer and his co-conspirators allegedly prepared backdated documents and directed clients to submit those backdated documents in response to the subpoenas. Meyer also allegedly provided backdated documents in response to document requests from the United States. In April 2019, a federal district court entered a permanent injunction against Meyer. The indictment alleges that Meyer violated the terms of his permanent injunction through various means, including filing tax returns, assisting clients in taking charitable tax deductions, and providing advice on charitable tax deductions. Since 2013, Meyer and his co-conspirators allegedly earned more than $10 million from selling the Ultimate Tax Plan. Meyer allegedly used that income to purchase a multi-million-dollar estate and a luxury vehicle collection that included Lamborghinis, Rolls Royces, Mercedes Benzes, a Bentley, and a Ferrari. Meyer made his initial court appearance today before U.S. Magistrate Judge Alicia M. Otazo-Reyes of the Southern District of Florida. If convicted, Meyer faces a maximum penalty of five years in prison for conspiracy to defraud the United States, twenty years in prison for mail and wire fraud conspiracy, three years in prison for each false return count, three years for each count of endeavoring to impede the internal revenue laws, and twenty years each for obstructing and conspiracy to obstruct an official proceeding. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement. IRS-Criminal Investigation is investigating the case. Assistant Chief Michael Boteler and Trial Attorneys Casey S. Smith and Andrew Ascencio of the Justice Department’s Tax Division are prosecuting the case with assistance from the United States Attorney’s Office for the Southern District of Florida. An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.


title: Leader of International Drug-Trafficking Organization Sentenced for Cocaine Distribution

component: Criminal Division

body_text: A leader of an international drug-trafficking organization (DTO) was sentenced today to life in prison for conspiring to distribute five kilograms or more of cocaine for importation into the United States. According to court documents, between 2003 and April 2016, Gerardo Gonzalez-Valencia, aka Lalo, 45, was a leader of Los Cuinis, a DTO responsible for importing large quantities of cocaine from South America, Mexico, and elsewhere into the United States. Los Cuinis is closely aligned with the Cartel de Jalisco Nueva Generación (CJNG), which is based in the State of Jalisco in Mexico. Together, Los Cuinis and CJNG form one of the largest, most dangerous, and most prolific drug cartels in Mexico. They are responsible for trafficking significant quantities of illegal drugs into the United States and employing extreme violence to further that objective. “Gonzalez-Valencia’s prosecution marks another step in the Justice Department’s pursuit of the top leadership of drug-trafficking organizations like Los Cuinis and the CJNG,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “The significant sentence imposed today also reflects the magnitude of harm these drug-trafficking organizations wreak on our communities. The Criminal Division will continue to hold accountable those like Gonzalez-Valencia, who profit from importing large quantities of dangerous substances into the United States and who support the extraordinary violence committed in furtherance of that objective.” Gonzalez-Valencia personally invested in and coordinated multi-ton shipments of cocaine for importation into the United States. Some of these shipments were interdicted by law enforcement, including the seizure of approximately 280 kilograms of cocaine from a semi-submersible interdicted by the U.S. Coast Guard and the seizure of 750 kilograms of cocaine concealed in frozen shark carcasses destined for the United States and seized by Mexican law enforcement. Gonzalez-Valencia also directed the murders of rival drug traffickers and used and supplied weapons in furtherance of the drug-trafficking conspiracy. “Today’s sentencing sends a clear message to the leaders of drug cartels that DEA will stop at nothing to dismantle the criminal networks that threaten the safety and health of the American people,” said DEA Administrator Anne Milgram. “Under Gonzalez-Valencia’s leadership, Los Cuinis – a cartel closely aligned with the Jalisco (CJNG) Cartel – shipped massive quantities of cocaine into the United States and killed rivals that threatened the cartels’ trafficking organizations. The men and women of DEA are working relentlessly to hold all drug traffickers accountable that seek to profit from the Jalisco Cartel’s violent and deadly drug trafficking network.” This case is supported by the Organized Crime and Drug Enforcement Task Force (OCDETF). The DEA Los Angeles Field Division investigated the case with the assistance from the U.S. Marshals Service, Investigative Operations Division. Acting Assistant Deputy Chief Kaitlin Sahni and Trial Attorneys Kate Naseef and Kirk Handrich of the Criminal Division’s Narcotic and Dangerous Drug Section prosecuted the case. The Justice Department’s Office of International Affairs provided significant assistance. The Justice Department thanks Uruguayan authorities for their assistance in securing the arrest and extradition of Gonzalez-Valencia.


title: St. Louis County Man Sentenced for Multiple Frauds

body_text: ST. LOUIS – U.S. District Stephen R. Clark on Thursday sentenced a man from St. Louis County, Missouri to 15 months in prison and ordered him to repay $47,397 he’d stolen via two fraud schemes. Dominique Lowery, 32, is the third person involved in multiple, connected frauds to be sentenced in the case. In April, Judge Clark sentenced Christopher Tatum, 37, of St. Louis County, to 51 months in prison and ordered him to repay $103,481. In January, Monique Howard, 39, of St. Louis, was sentenced to four years of probation and ordered to repay $115,267. Each admitted participating in bank fraud, a scheme to defraud a pandemic loan program, or both. In March of 2019, Tatum, through his business, Final Lap Auto Center LLC, claimed to be offering to sell a 2014 Audi Q7 to Lowery and Howard. Lowery and Howard knew that Tatum didn’t own the vehicle, but applied for and received motor vehicle loans from credit unions. Tatum provided lenders a counterfeit motor vehicle title, with a forged signature of the director of the Missouri Department of Revenue, and fraudulent buyer’s orders. Howard received a $18,600 loan from St. Louis Community Credit Union and a $18,540 loan from First Financial Federal Credit Union. Lowery received a $26,500 loan from Scott Credit Union. Lowery and Howard knew that the loans would not be secured with the Audi and knew they would not be repaying the loan and interest as promised. In exchange for their participation, Tatum paid both Lowery and Howard kickbacks from the proceeds of the illegal loans. Howard also received two fraudulent loans for a 2015 Maserati. She made no payments and the car was eventually repossessed, creating a total loss of $74,000. On April 26, 2021, Lowery submitted a fraudulent application for a Paycheck Protection Program loan, a pandemic-era program intended to help save jobs. Lowery falsely claimed that he operated a sole proprietorship that generated gross income of $104,196 in 2019. Lowery received $20,833. The loan was forgiven after Lowery falsely claimed that he used $17,389 of the illegally obtained loan proceeds on payroll costs. He actually used it for personal expenses. On March 30, 2021, Tatum submitted a PPP loan application falsely claiming to be an independent contractor and lying about his business income. He received a total of $39,778. Lowery pleaded guilty in March to two felonies: conspiracy to commit bank fraud and access device fraud. Tatum pleaded guilty to four: conspiracy to commit bank fraud and three counts of bank fraud. Howard pleaded guilty to the conspiracy charge, bank fraud and mail fraud. The case was investigated by the U.S. Postal Inspection Service and the Missouri Department of Revenue. Assistant U.S. Attorney Tracy Berry prosecuted the case.


title: California Woman Sentenced to Prison for Embezzling More Than $1 Million from Employer

component: USAO - Minnesota

body_text: MINNEAPOLIS – A California woman was sentenced to 66 months in prison, two years of supervised release, and ordered to pay $1,791,334.81 in restitution for embezzling more than $1 million from her employer, announced United States Attorney Andrew M. Luger. According to court documents, Mai Houa Xiong, 47, of Fresno, California, was employed as a financial manager for a Minneapolis-based property management company that provided financial services to homeowners’ associations (HOAs) throughout the Twin Cities metro area. Xiong’s duties included bookkeeping, and as manager she had nearly unfettered access to the victim homeowner’s associations’ financials, bank accounts, vendor and contractor payments, and bookkeeping systems. Between February 2015 and February 2022, Xiong devised and executed a fraud scheme to embezzle funds directly from the accounts to which she had access. These funds were HOA fees collected from residents intended to pay for maintenance, construction, and other costs incurred by the victim associations. As part of the scheme, Xiong repeatedly accessed the HOAs’ bank accounts and conducted electronic transfers of funds directly into her personal bank accounts. Xiong disguised these transfers by mis-labeling them to make it appear as if they were legitimate HOA expenses. Xiong also used her authority as a signatory to make cash withdrawals directly from the HOAs’ accounts, including making withdrawals after she was fired from her position in July 2021. After her termination, Xiong began collecting Unemployment Insurance (UI) funds. However, even after Xiong found new employment, she continued to wrongfully obtain public UI benefits. Xiong pleaded guilty on March 9, 2023, to one count of wire fraud, one count of aggravated identity theft, and one count of making and subscribing a false tax return. Xiong was sentenced today before Chief Judge Patrick J. Schiltz. This case is the result of an investigation conducted by the IRS – Criminal Investigations, the Minnesota Bureau of Criminal Apprehension, and the Minneapolis Police Department. This case was prosecuted by Assistant U.S. Attorney Allison K. Ethen.


title: Dominican Man Sentenced to Over Seven Years in Prison for Fentanyl and Cocaine Trafficking and Illegal Reentry

component: USAO - Massachusetts

body_text: BOSTON – A Dominican man has been sentenced in federal court in Boston for trafficking fentanyl and cocaine, and for unlawful reentry of a deported alien. Francisco Alberto Martinez, 52, was sentenced on July 19, 2023 by U.S. District Court Judge Nathaniel M. Gorton to 87 months in prison and five years of supervised release. On April 19, 2023, Martinez pleaded guilty to one count of distribution and possession with intent to distribute cocaine; three counts of distribution and possession with intent to distribute fentanyl; three counts of distribution and possession with intent to distribute 40 grams or more of fentanyl; one count of distribution and possession with intent to distribute 40 grams or more of fentanyl and cocaine; one count of possession with intent to distribute 40 grams or more of fentanyl and cocaine; and one count of unlawful reentry of a deported alien. On nine separate occasions between August 2018 and May 2019, Martinez sold fentanyl and cocaine to a cooperating witness. Martinez first unlawfully entered the United States on an unknown date. In 2010, he was convicted in federal court in Boston of cocaine conspiracy and sentenced to 66 months in prison. Upon completion of his sentence in 2014, Martinez was deported to the Dominican Republic. Sometime after his removal, Martinez unlawfully reentered the United States and continued to distribute controlled substances. Acting United States Attorney Joshua S. Levy; Christopher DiMenna, Acting Special Agent in Charge of the Federal Bureau of Investigation; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; and Peabody Police Chief Thomas M. Griffin made the announcement. Valuable assistance in the investigation was provided by the Massachusetts Department of Correction; Norfolk Sheriff’s Office; the Suburban Middlesex County Drug Task Force; and the Peabody, Concord, Reading, Watertown, Braintree, Waltham, Woburn, Salem, Revere, and Beverly Police Departments. Assistant U.S. Attorneys Craig Estes, Charles Dell’Anno and Alathea Porter of the Criminal Division are prosecuting the case. This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.


title: Venezuelan Man Pleads Guilty to Distributing Thousands of Fentanyl Pills

body_text: BOSTON – A Venezuelan man pleaded guilty today in federal court in Boston to trafficking fentanyl. Frank Bienvenido Perez Diaz, 42, pleaded guilty to one count of distribution and possession with intent to distribute 40 grams or more of fentanyl. U.S. District Court Judge Angel Kelley scheduled sentencing for Nov. 15, 2023. On April 16, 2021, Perez Diaz sold over 2,000 counterfeit fentanyl pills to a cooperating witness. The charge of distribution and/or possession with intent to distribute 40 grams or more of fentanyl provides for a sentence of at least five years in prison and no greater than 40 years in prison, as well as at least four years of supervised release, and a fine of up to $5,000,000. Perez Diaz will be subject to deportation upon completion of his sentence. Sentences are imposed by a federal district judge based upon the U.S. Sentencing Guidelines and other statutory factors. Acting United States Attorney Joshua S. Levy and Christopher DiMenna, Acting Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement. Valuable assistance in the investigation was provided by the Massachusetts Department of Correction and the Norfolk Sheriff’s Office. Assistant U.S. Attorney Alathea Porter of the Narcotics & Money Laundering Unit is prosecuting the case. This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.


title: Minneapolis Man Pleads Guilty to Carjacking a Preacher

body_text: MINNEAPOLIS – A Minneapolis man has pleaded guilty to the armed carjacking of a preacher who was handing out bottled water to the homeless, announced U.S. Attorney Andrew M. Luger. According to court documents, on August 1, 2021, Dwight Keith Eaglehawk, 34, approached the victim in a parking lot near Lake Street in south Minneapolis. The victim, a preacher, was handing out water bottles to homeless individuals. Eaglehawk approached the victim and requested two bottles of water before brandishing a Marlin .22 rifle and demanding the victim’s Dodge Dart. After taking the keys from the victim, Eaglehawk fled in the Dodge Dart. Eaglehawk pleaded guilty yesterday in U.S. District Court before Senior Judge Ann D. Montgomery to one count of carjacking. A sentencing hearing will be scheduled at a later time. This case is the result of an investigation conducted by the FBI and the Minneapolis Police Department. Assistant U.S. Attorneys Evan B. Gilead and David P. Steinkamp are prosecuting the case.


title: Three Men Found to be Illegally Possessing Firearms Headed to Federal Prison

body_text: SHREVEPORT, La. - United States Attorney Brandon B. Brown announced that three men who illegally possessed firearms were sentenced today by United States District Judge Elizabeth E. Foote. The three defendants who were sentenced today are as follows: Christopher Joel Cox , 28, of McLeod, Texas was sentenced to 70 months in prison, followed by 3 years of supervised release for being a prohibited person in possession of firearms. On April 24, 2022, a deputy with the Caddo Parish Sheriff’s Office conducted a traffic stop of a vehicle being driven by Cox. The deputy noticed a pistol laying on the back passenger floorboard and Cox and his passenger gave consent to search the vehicle. During the search, the deputy recovered several loaded firearms from inside the vehicle. After further investigation, law enforcement officers learned that he had an active warrant from Colorado and he was subsequently arrested. Cox was previously convicted of Assault 2-Strangulation-Attempted in Colorado in 2018 and was prohibited from possessing any firearm or ammunition. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Caddo Parish Sheriff’s Office and prosecuted by Assistant U.S. Attorney Brian C. Flanagan. Jelantis J. Chatman , 28, and Courvisier U. Glover , 24, both of Shreveport, were each charged with being a convicted felon in possession of a firearm. Chatman was sentenced to 30 months in prison and Glover was sentenced to 32 months in prison. Both men will serve 3 years of supervised release following their release from prison. The charges stem from a traffic stop which occurred on September 16, 2022. An officer with the Shreveport Police Department stopped the vehicle which was being driven by Chatman and in which Glover was the passenger. During a subsequent search of the vehicle, officers found a loaded Glock pistol with an extended magazine under Chatman’s seat, as well as a loaded Glock pistol under Glover’s seat. Chatman and Glover each have prior felony convictions and knew that they were prohibited from possessing a firearm or ammunition. Chatman’s prior felony convictions are for simple burglary in 2015, and possession of a firearm by a convicted felon in 2018 in U.S. District Court in the Western District of Louisiana. Glover has an extensive criminal history, including being convicted twice for possession of a firearm by a person convicted of domestic abuse battery, in 2018 and 2020. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Shreveport Police Department and prosecuted by Assistant U.S. Attorney Seth D. Reeg. These cases are part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. # # #


title: First Tribal Community Response Plan Adopted in the District of Oregon

component: USAO - Oregon

body_text: PORTLAND, Ore.—In a first for the District of Oregon, the Confederated Tribes of Warm Springs Tribal Council has unanimously adopted a Missing and Murdered Indigenous Persons (MMIP) Tribal Community Response Plan (TCRP). “When someone goes missing from a Tribal community, it is an urgent and time-sensitive situation. A community response plan ensures that all available resources—government, law enforcement, and community members—are quickly deployed in support of a full and thorough investigation,” said Natalie Wight, U.S. Attorney for the District of Oregon. “We thank the Confederated Tribes of Warm Springs for their leadership in addressing this important issue.” A TCRP is a guide for how Tribal law enforcement and community members will respond when someone goes missing from a Tribal community. TCRPs are tailored to the needs, resources, and culture of individual Tribal communities. The Warm Springs TCRP was created in partnership with the U.S. Attorney’s Office for the District of Oregon as part of the U.S. Department of Justice national MMIP initiative. The District of Oregon is one of six pilot program districts working to develop community response plans in accordance with this initiative. The Warm Springs TCRP establishes four different sets of guidelines relevant to MMIP: law enforcement, victim services, public and media communications, and community outreach. The overall goal of the TCRP is to recognize the critical need for an immediate and consistent response to missing persons reports from the Warm Springs Indian Reservation, establish a formal process for responding to and investigating these reports, and outline the actions that will be taken by Tribal authorities. In early 2022, the District of Oregon established an MMIP Working Group to increase multi-agency communication and collaboration in support of and response to Oregon-connected MMIP cases. The working group includes at least one representative from each of the nine federally recognized Tribes in Oregon, the FBI, Bureau of Indian Affairs, U.S. Department of Interior Regional Solicitor’s Office, U.S. Marshals Service, Oregon Department of Justice, Oregon State Medical Examiner’s Office, and Oregon State Police. If you have questions about the U.S. Attorney’s Office MMIP program, please email USAOR.PublicAffairs@usdoj.gov or call (503) 727-1000.


title: Carroll Man Pleads Guilty to Federal Gun and Drug Charges

component: USAO - Iowa, Northern

body_text: Darwin Robinson, Jr., age 45, from Carroll, Iowa, was convicted of illegally possessing a firearm and possessing methamphetamine with intent to distribute. Robinson pled guilty July 20, 2023, in federal court in Sioux City. Robinson was previously convicted of cocaine-possession and three domestic abuse assaults which prohibited him from possessing firearms. At the plea hearing, Robinson admitted that he had these convictions and that he was a regular user of methamphetamine and possessed a .40 caliber handgun. On March 22, 2021, law enforcement stopped the vehicle Robinson was driving and officers seized two small bags of methamphetamine from Robinson and a loaded .40 caliber handgun from the vehicle. Robinson admitted that he planned on selling some or all the methamphetamine that was found. Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Robinson remains in the custody of the United States Marshal pending sentencing. On the firearm conviction, Robinson faces a possible maximum sentence of 10 years’ imprisonment, a $250,000 fine, and not more than three years of supervised release following any imprisonment. Robinson faces a possible maximum sentence of 20 years’ imprisonment, a $1,000,000 fine, and three years up to life of supervised release on the possession with intent to distribute conviction. The case is being prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by the Iowa Division of Narcotics Enforcement, Carroll, Iowa Police Department, Iowa DCI Criminalistics Laboratory, and Bureau of Alcohol, Tobacco, Firearms and Explosives. Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl . The case file number is 23-3002. Follow us on Twitter @USAO_NDIA.


title: Top Source of Supply in Juvenile Fentanyl Case Charged, Thousands of Pills Found Stashed in Microwave

component: Drug Enforcement Administration (DEA)

body_text: A top source of supply in the Carrollton juvenile fentanyl case – which has resulted in at least 14 juvenile overdoses, four of them fatal – has been federally charged, announced U.S. Attorney for the Northern District of Texas Leigha Simonton. Julio Gonzales, Jr., 18, was charged via criminal complaint on July 14 with conspiracy to distribute fentanyl. He was arrested at his residence on Thursday and made his initial appearance before U.S. Magistrate Judge Renee Harris Toliver on Friday morning. His roommate, 19-year-old Adrian Martinez-Leon, was also arrested Thursday and subsequently charged via criminal complaint with drug conspiracy. He, too, made his initial appearance before Magistrate Judge Toliver on Friday. During a search of their residence, DEA agents found thousands of fentanyl-laced M-30 pills stuffed in the microwave, a partial kilogram of cocaine tucked in a plastic food storage container, bulk U.S. currency hidden in the closet, and numerous firearms, including a pistol equipped with an illegal Glock switch, littered throughout the home. “Another domino has fallen in the Carrollton juvenile fentanyl overdose saga,” said U.S. Attorney Leigha Simonton. “Rest assured, the Justice Department will not stop until their entire fentanyl trafficking infrastructure has been dismantled. Our kids’ futures are too important to allow this to continue. “ “These arrests demonstrate the continued resolve of DEA Dallas to investigate this organization to the fullest extent possible,” said DEA Special Agent in Charge Eduardo A. Chávez. “Local street dealers, transporters, bulk suppliers, and anyone in between should know DEA Dallas is still committed to holding everyone in this organization, and others like it, accountable for selling fentanyl to our communities.” According to the complaint, in February 2023, a 16-year-old dealer who delivered the fentanyl pills that killed a 14-year-old girl in December 2022 allegedly identified Mr. Gonzales, whom he called “J-Money,” as his supplier. In text messages, the child discussed “J-Money” with Eduardo Navarrete, one of the first dealers charged in the scheme. They identified “J-Money” as their “plug,” street parlance for a source of supply. At least four other cooperating defendants also allegedly identified “J-Money” as their source of supply and tied him to an address in Dallas’ Oak Cliff neighborhood. Three of the cooperating defendants immediately identified a photograph of Mr. Gonzales as the man they knew as “J-Money.” One admitted to agents that the thousands of pills sold during a DEA controlled purchase operation were sourced by Mr. Gonzales. Instagram messages between Mr. Gonzales and the defendants negotiating pill prices and quantities corroborated these accounts. In June 2023, agents surveilling Mr. Gonzales observed him allegedly conduct a hand-to-hand drug transaction with a subject who then ducked into a nearby alleyway, crushed the pills, and smoked them. They also observed his roommate, Mr. Martinez-Leon, allegedly conduct a hand-to-hand transaction with a subject outside their front door. Mr. Gonzales and Mr. Martinez-Leon are the ninth and tenth defendants charged in the wake of the Carrollton overdoses, which have claimed the lives of four middle and high school students to date. To date, five have pleaded guilty. A complaint is merely an allegation of criminal conduct, not evidence. All defendants are presumed innocent until proven guilty in a court of law. If convicted, Mr. Gonzales and Mr. Martinez-Leon will face up to 40 years in federal prison. The Drug Enforcement Administration’s Dallas Field Office, the Dallas Police Department’s SWAT team, and the Carrollton Police Department conducted the investigation. Assistant U.S. Attorneys Rick Calvert and Phelesa Guy are prosecuting the case. Note: Illicitly produced, fentanyl-laced pills often look similar to legitimate prescription pills like Oxycontin or Percocet, but can pose significantly more danger. On the street, these pills are often referred to as “M30s” (a reference to the markings on some of the pills), “blues,” “perks,” “yerks,” “china girls,” or “TNT.” DEA research shows that six out of ten pills laced with fentanyl contain a potentially lethal dose. One pill can kill. For resources, visit https://www.dea.gov/onepill .


title: Waukon Office Manager Pleads Guilty in Six-Year Embezzlement Scheme

body_text: An office manager who stole over $200,000 from her employer, a Northeast Iowa tax preparation business, pled guilty July 19, 2023, in federal court in Cedar Rapids. Heather Leigh Migliore, age 51, from Waukon, Iowa, was convicted of one count of wire fraud. At the plea hearing, and in a plea agreement, Migliore admitted that, from January 2015, through November 2021, she stole no less than $200,000 from her employer, a tax preparation business with offices in Waukon and Decorah, Iowa. Migliore was the business’s office manager and had responsibility for its finances, including making payroll and paying bills. Migliore used a signature stamp of the owner of the business to write and sign checks to herself. To cover up her scheme, Migliore then deleted the checks from the business’s electronic bookkeeping system. Beginning in July 2019, Migliore also made over $20,000 in fraudulent credit card charges on the business’s credit cards. Migliore used the stolen funds to pay her personal expenses. Sentencing before United States District Court Judge C.J. Williams will be set after a presentence report is prepared. Migliore remains free on bond. Migliore faces a possible maximum sentence of 20 years’ imprisonment, a $250,000 fine, and three years of supervised release following any imprisonment. The case is being prosecuted by Assistant United States Attorney Timothy L. Vavricek and was investigated by the Winneshiek County Sheriff’s Office. Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl . The case file number is 23-CR-1015. Follow us on Twitter @USAO_NDIA.


title: Real Estate Developer Sentenced to 6 Years in Federal Prison for Paying $500,000 Cash Bribe to Corrupt L.A. Politician and Official

component: USAO - California, Central

body_text: LOS ANGELES – A real estate developer was sentenced today to 72 months in federal prison for paying a $500,000 cash bribe to then-Los Angeles City Councilman José Huizar and his special assistant in exchange for their help in resolving a labor organization’s appeal of the developer’s downtown Los Angeles development project. Dae Yong Lee, a.k.a. “David Lee,” 58, of Bel Air, was sentenced by United States District Judge John F. Walter, who also ordered him to pay a $750,000 fine, the maximum permitted by law. At today’s sentencing hearing, Judge Walter highlighted why significant sentences are important for deterrence in white collar crimes, saying such defendants “don’t think they will get caught, don’t think they will get charged, and don’t think they will face significant terms of imprisonment.” Judge Walter further said that Lee “readily accepted and exploited” Huizar’s corrupt offer and showed a “lack of remorse and arrogance” in recorded telephone conversations when discussing his crimes. Lee’s “only regret is that he got caught,” the judge said. Judge Walter also sentenced 940 Hill LLC, a Lee-controlled, Los Angeles-based company, to five years of probation and ordered it to pay the statutory maximum fine of $1.5 million, as well as the cost of prosecuting the case, along with requiring it to enact variance compliance measures to prevent future criminal activity. At the conclusion of a nine-day trial in June 2022, a federal jury found each Lee and 940 Hill LLC guilty of one count of honest services wire fraud, one count of bribery, and one count of falsification of records in federal investigations. Lee, a commercial real estate developer, was the majority owner and managing member of 940 Hill LLC and was planning to build a mixed-use development located at 940 South Hill Street in downtown Los Angeles, which was in Huizar’s council district. The development was to include 14,000 square feet of commercial space and more than 200 residential units. In August 2016, after a labor organization filed an appeal that prevented the 940 Hill project from progressing through the city’s approval process, Lee called Justin Jangwoo Kim, a Huizar fundraiser, to request Huizar’s help in resolving the appeal. At the time, Huizar chaired the city’s Planning and Land Use Management (PLUM) Committee, a body that oversaw many of the city’s most significant commercial and residential projects. In September 2016, George Esparza, then Huizar’s special assistant, informed Kim that Huizar would not help the 940 Hill project for free and would require a financial benefit. In 2017, after several months of bribe negotiations, Lee agreed to provide $500,000 in cash to Huizar and Esparza. Lee then made three payments of cash through Kim over a series of months, including in a paper bag, which Esparza then transferred to a liquor box to show to Huizar. Two years after paying the bribe, 940 Hill LLC was served with a federal grand jury subpoena from the U.S. Attorney’s Office for records relating to Huizar, and, in response, Lee and 940 Hill LLC obstructed justice by making false entries in the company’s accounting records and then submitting false state and federal tax returns, which categorized the $500,000 bribe as a legitimate business expenditure for resolving the labor organization appeal. “Despite enjoying a life of privilege and abundance, Lee wanted more,” prosecutors argued in a sentencing memorandum. “But instead of earning it, he wanted a guaranteed shortcut to circumvent the city process and silence community opponents threatening to thwart his attempts to expand his substantial real estate empire.” Kim pleaded guilty in June 2020 to a federal bribery offense. Esparza pleaded guilty in July 2020 to one count of racketeering conspiracy. Both men, who are cooperating with the investigation, testified against Lee at trial and are scheduled to be sentenced in October. Huizar pleaded guilty on January 20 to one count of conspiracy to violate the Racketeer Influenced and Corrupt Organizations (RICO) Act and one count of tax evasion. His sentencing hearing is scheduled for December 15. Huizar has agreed to seek a sentence of no less than nine years in prison, and prosecutors have agreed to recommend a sentence of no more than 13 years in prison. In May, Judge Walter sentenced real estate development company Shen Zhen New World I LLC to five years of probation and the statutory maximum financial penalty of $4 million for its conduct in Huizar’s pay-to-play scheme, including providing more than $1 million in benefits to Huizar – among them, luxury trips to Las Vegas and a sham loan to settle a sexual harassment lawsuit filed against Huizar – in exchange for approval to build a 77-story skyscraper. Former Los Angeles Deputy Mayor Raymond Chan is scheduled for a re-trial on March 12, 2024, on federal charges alleging he conspired to violate the Racketeer Influenced and Corrupt Organizations (RICO) Act, and that he agreed to accept, while he was deputy mayor, more than $100,000 for official acts to benefit a project by a Chinese real estate developer. Chan also is charged with lying to federal investigators in this public corruption case. The FBI investigated this matter. Assistant United States Attorney Mack E. Jenkins, Chief of the Criminal Division, and Assistant United States Attorney Cassie D. Palmer of the Public Corruption and Civil Rights Section prosecuted these defendants. Any member of the public who has information related to this or any other public corruption matter in the City of Los Angeles is encouraged to send information to the FBI’s tip line at tips.fbi.gov or to contact the FBI’s Los Angeles Field Office at (310) 477-6565.


title: Booz Allen Agrees to Pay $377.45 Million to Settle False Claims Act Allegations

component: Civil Division

body_text: Booz Allen Hamilton Holding Corporation has agreed to pay the United States $377,453,150 to resolve allegations that it violated the False Claims Act by improperly billing commercial and international costs to its government contracts. Booz Allen, which is headquartered in McLean, Virginia, provides a range of management, consulting, and engineering services to the government, as well as commercial and international customers. Under government contracting rules, there must be a nexus between the costs charged to a government contract and the objective of the contract. Thus, a contractor may charge to a government contract costs directly related to that contract, as well as indirect costs that benefit multiple contracts including the government contract. A contractor may not charge costs to a government contract, however, that have no relationship to that contract. This prohibition prevents government contractors from using taxpayer funds to subsidize non-government related work. The settlement announced today resolves allegations that from approximately 2011 to 2021, Booz Allen improperly charged costs to its government contracts and subcontracts that instead should have been billed to its commercial and international contracts. In particular, the government alleged that Booz Allen improperly allocated indirect costs associated with its commercial and international business to its government contracts and subcontracts that either had no relationship to those contracts and subcontracts or were allocated to those contracts and subcontracts in disproportionate amounts. The government further alleged that Booz Allen failed to disclose to the government the methods by which it accounted for costs supporting its commercial and international businesses. As a result, Booz Allen obtained reimbursement from the government for the costs of commercial activities that provided no benefit to the United States. “Government contractors must turn square corners when billing the government for costs under government contracts,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “Today’s settlement demonstrates our commitment to hold accountable contractors that knowingly overcharge the government and enrich themselves at the expense of the American taxpayers.” “This settlement, which is one of the largest procurement fraud settlements in history, demonstrates that the United States will pursue even the largest companies and the most complex matters where taxpayer funds are alleged to have been pilfered,” said U.S. Attorney Matthew M. Graves for the District of Columbia. “The Justice Department is committed to ferreting out all fraud, waste, and abuse in government programs — small or large, simple or complex.” "The Defense Contract Audit Agency (DCAA) appreciates the opportunity to support the Justice Department and our law enforcement partners by providing expert financial assistance regarding enforcement of the False Claims Act," said Director Terri Dilly of the DCAA. "This interagency cooperation provides a strong safeguard for appropriate use of taxpayer dollars." The settlement resolved a lawsuit filed under the qui tam or whistleblower provision of the False Claims Act, which permits private parties to file suit on behalf of the United States for false claims and share in a portion of the Government’s recovery. The qui tam lawsuit was filed by Sarah Feinberg, a former Booz Allen employee, and is captioned United States ex rel. Feinberg, v. Booz Allen Hamilton, Inc. , Civ. A. No. 16-1911 (D.D.C.). Ms. Feinberg will receive $69,828,832 in connection with the settlement. The resolution obtained in this matter was the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch, Fraud Section, the U.S. Attorney’s Office for the District of Columbia, the Defense Contract Management Agency’s Contract Integrity Center, and the DCAA’s Operations Investigative Support Division, with assistance by agents from the Defense Criminal Investigative Service and FBI, and Inspector Generals from the Central Intelligence Agency, National Security Agency, U.S. Postal Service, U.S. Army, U.S. Air Force, National Reconnaissance Office, Department of Homeland Security, and National Geospatial Intelligence Agency. This matter was handled by attorneys Dan Schiffer and Chris Reimer of the Civil Division and Assistant U.S. Attorney Brian Hudak for the District of Columbia, with assistance from DCAA's Operations Investigative Support Division, in particular DCAA Auditors Igor Yegoroff, Myron Antoniw, and Tim Chase. The claims resolved by this settlement are allegations only. There has been no determination of liability. Settlement


title: 20 Apprehended in Lubbock Drug, Gun Bust

body_text: Twenty people were apprehended in a large-scale drug enforcement operation Wednesday, announced U.S. Attorney for the Northern District of Texas Leigha Simonton. The defendants were charged in 14 separate indictments with a total of 37 counts, including distribution of fentanyl, distribution of methamphetamine, and felon in possession of a firearm. Seven people charged in the scheme remain fugitives. Those apprehended include: Erik Hans Grosstueck: conspiracy to possess with intent to distribute fentanyl, possession with intent to distribute fentanyl Brian Jacob Miller: conspiracy to possess with intent to distribute fentanyl, possession with intent to distribute fentanyl Alexander Erik Pierce: conspiracy to possess with intent to distribute fentanyl, distribution of fentanyl Matthew Ryan Chandler: conspiracy to possess with intent to distribute fentanyl, possession with intent to distribute fentanyl Loddy Max Montoya: conspiracy to possess with intent to distribute fentanyl, possession with intent to distribute fentanyl Trey Matthew Parrish: conspiracy to possess with intent to distribute fentanyl, distribution of fentanyl Kevontae Jalil Hawthorne: felon in possession of a firearm (one rifle) Daniel Anthony Moreno: felon in possession of a firearm (one semi-automatic handgun) Glen Donnell Nall, Jr.: possession with intent to distribute methamphetamine, possession of a firearm in furtherance of a drug trafficking crime (one pistol) Ethan Tyler Nieto: felon in possession of a firearm (one pistol) Martin Rosalez III, aka Wedo: felon in possession of a firearm (one semi-automatic handgun) Roberto Salinas, Jr.: felon in possession of a firearm (one semi-automatic handgun) Tevin Terelle Carrington: felon in possession of a firearm (one pistol) Steven Paul Echols: conspiracy to possess with intent to distribute methamphetamine and fentanyl, possession with intent to distribute methamphetamine Rachel Michelle Melendez: conspiracy to possess with intent to distribute methamphetamine and fentanyl, possession with intent to distribute methamphetamine, possession of a firearm in furtherance of a drug trafficking crime (one pistol) Nicolas Blake Pereida: conspiracy to possess with intent to distribute methamphetamine and fentanyl, possession with intent to distribute methamphetamine, distribution of methamphetamine, possession of a firearm in furtherance of a drug trafficking crime (one 9mm pistol), distribution of fentanyl Brent Reed Angelle: conspiracy to possess with intent to distribute methamphetamine and fentanyl, possession with intent to distribute methamphetamine, possession of firearms in furtherance of a drug trafficking crime (two pistols and one shotgun), possession with intent to distribute fentanyl Alexus Michelle Grubelnik: conspiracy to possess with intent to distribute methamphetamine and fentanyl, distribution of fentanyl Beatrice Eunice Gutierrez: conspiracy to possess with intent to distribute methamphetamine and fentanyl, possession with intent to distribute methamphetamine, possession with intent to distribute fentanyl Ronny Paul Spuriel: distribution of methamphetamine Seven people charged in the scheme remain fugitives. A number of the defendants charged in the scheme are tied to Lubbock’s Project Safe Neighborhood zone, a high-crime hotspot where federal, state, and local law enforcement leaders collaborate to reduce violence and increase community safety. Many have extensive criminal histories, including child sexual assault, aggravated assault, burglary, fraud, manufacture and delivery of controlled substances, and unlawful carrying of firearms. An indictment is merely an allegation of wrongdoing, not evidence. All defendants are presumed innocent unless and until proven guilty in a court of law. If convicted, some face up to life in federal prison. The Bureau of Alcohol, Tobacco, Firearms & Explosives’ Dallas Field Division – Lubbock Resident Agency, the Drug Enforcement Administration’s Dallas Field Division – Lubbock Resident Agency, the United States Marshal Service, the Caprock HIDTA (High Intensity Drug Trafficking Area) Task Force, the Texas Department of Public Safety, the Lubbock Police Department, the Lubbock County Sherriff’s Office, and the Texas Anti-Gang Task Force conducted the investigation and arrest operation. Assistant U.S. Attorney Sean Long is prosecuting the drug conspiracy; AUSAs Jeff Haag, Ann Howey, Callie Woolam, and Matt McLeod are prosecuting the gun cases with the assistance of AUSAs Ryan Redd and Stephan Rancourt, the Lubbock Branch Office’s Project Safe Neighborhood Coordinators.


title: Informational: Federal Court arraignments

component: USAO - Montana

body_text: The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty beyond a reasonable doubt: Appearing in Great Falls before U.S. Magistrate Judge John T. Johnston and pleading not guilty on July 18 was: Jonathan Ray Gonsalez, 39, of Box Elder, on charges of sexual abuse, coercion and enticement and possession with intent to distribute methamphetamine. If convicted of the most serious crime, Gonsalez faces life in prison, a $250,000 fine and five years to life of supervised release. Gonsalez was detained pending further proceedings. The FBI and Rocky Boy’s Police Department conducted the investigation. PACER case reference. 23-65. Joshua Raymond Suave, 34, of Great Falls, on charges of prohibited person in possession of a firearm and false statement during a firearms transaction. If convicted of the most serious crime, Suave faces a maximum of 10 years in prison, a $250,000 fine and three years of supervised release. Suave was detained pending further proceedings. The Great Falls Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. PACER case reference. 22-110. Robert Ray Thoroughman, 61, of Fort Shaw, on charges of prohibited person in possession of a firearm. If convicted of the most serious crime, Thoroughman faces a maximum of 15 years in prison, a $250,000 fine and three years of supervised release. Thoroughman was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives and Cascade County Sheriff’s Office investigated the case. PACER case reference. 23-57. Appearing in Billings before U.S. Magistrate Judge Timothy J. Cavan and pleading not guilty on July 18 was: Eric Fredrick Welch Jr., 22, of Billings, on charges of theft from a federal firearm licensee and possession of stolen firearms. If convicted of the most serious crime, Welch faces a maximum of 15 years in prison, a $250,000 fine and three years of supervised release. Welch was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives and Billings Police Department conducted the investigation. PACER case reference. 23-84. The progress of cases may be monitored through the U.S. District Court Calendar and the PACER system. To establish a PACER account, which provides electronic access to review documents filed in a case, please visit http://www.pacer.gov/register.html . To access the District Court’s calendar, please visit https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl . XXX


title: Jury Convicts Armed Fort Myers Drug Trafficker

component: USAO - Florida, Middle

body_text: Fort Myers, Florida – United States Attorney Roger B. Handberg announces that a federal jury has found Manuel Alfredo Dickerson Copland (29, Fort Myers) guilty of possession with the intent to distribute 40 grams or more of fentanyl, possession of a firearm in furtherance of a drug trafficking crime, possession of MDMA, possession of oxycodone, and attempted possession with the intent to distribute 500 grams or more of methamphetamine. Copland faces a maximum penalty of life in federal prison. His sentencing hearing has not yet been set. Copland had been charged in a superseding indictment on January 25, 2023. According to testimony and evidence presented at trial, Copland was stopped in his vehicle on December 30, 2021, by members of the Lee County Sheriff’s Office Tactical Narcotics Team. Detectives found nearly 1,500 fentanyl pills, MDMA, oxycodone, and three firearms in Copland’s truck. Forensic evidence linked Copland to the drugs and firearms in the vehicle. During the subsequent investigation, information was obtained that revealed Copland was associated with mail packages that were believed to contain drugs that were being shipped to him in the Fort Myers area. As a result, the investigation identified a package containing approximately four pounds of methamphetamine that had been sent through the mail from California. The package was seized by the United States Postal Inspection Service. The intercepted package containing methamphetamine was linked to Copland through further investigation. This case was investigated by the Federal Bureau of Investigation, the U.S. Postal Inspection Service, and the Lee County Sheriff’s Office. It is being prosecuted by Assistant United States Attorneys Mark R. Morgan and Patrick L. Darcey. This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.


title: Brooksville Man Sentenced To 15 Years In Federal Prison For Possessing Firearm As An Armed Career Criminal

body_text: Ocala, Florida – Senior United States District Judge John Antoon II has sentenced Wayne Allen Phillips, Jr. (45, Brooksville) to 15 years in federal prison for possession of a firearm and ammunition by a previously convicted felon. Phillips was found guilty after a trial on April 11, 2023. According to testimony and evidence presented at trial, deputies from the Sumter County Sheriff’s Office encountered Phillips while attempting to serve a warrant for his arrest on another matter. Phillips ran from the deputies but was apprehended after a brief foot chase. A search of his person revealed a revolver loaded with five rounds of ammunition in his pants pocket. Phillips has numerous previous state felony convictions, including shooting into an occupied building, strongarm robbery, sale of cocaine, and fleeing and eluding law enforcement. As a previously convicted felon, he is prohibited from possessing a firearm or ammunition under federal law. Moreover, Phillips’s prior felony convictions qualified him for a sentencing enhancement as an Armed Career Criminal. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Sumter County Sheriff’s Office. It was prosecuted by Assistant United States Attorney William S. Hamilton. This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.


title: Former Correctional Officer Sentenced To Prison For Sexual Abuse Of An Inmate

body_text: Ocala, Florida – Senior United States District Judge John Antoon II has sentenced Fiona Eyana Palmer (39, Wesley Chapel) to 15 months in federal prison for sexual abuse of an inmate. A federal jury had found Palmer guilty on April 11, 2023. According to testimony and evidence presented at trial, Palmer was employed as a correctional officer at the Coleman Federal Correction Complex when she engaged in sexual acts with an inmate at the prison between January 2018 and March 2019. In two recorded phone calls between Palmer and the inmate, Palmer discussed the sexual acts and offered to send money to one of the inmate’s relatives. Palmer also directed the inmate to lie to federal investigators if asked about the sexual relationship. This case was investigated by the U.S. Department of Justice – Office of Inspector General. It was prosecuted by Assistant United States Attorneys William S. Hamilton and Hannah Nowalk.


title: Purcell Man Sentenced to Serve 210 Months in Federal Prison for Sexual Abuse in Chickasaw Indian Country

component: Federal Bureau of Investigation (FBI)

body_text: OKLAHOMA CITY – Earlier this week, MICHAEL CHARLES FIXICO , 45, of Purcell, Oklahoma, was sentenced to serve 210 months in federal prison for sexual abuse, announced United States Attorney Robert J. Troester. On February 15, 2022, a 13-count Third Superseding Indictment was filed charging Fixico with multiple counts of sexual contact and abuse. On March 3, 2023, Fixico pleaded guilty to Count 7, sexual abuse. He was charged in federal court because he is an Indian and the crimes occurred within the boundaries of the Chickasaw Nation Reservation. At a sentencing hearing on July 17, 2023, U.S. District Court Judge David L. Russell sentenced Fixico to serve 210 months in federal prison. In announcing the sentence, the court noted the seriousness of the offense, to afford deterrence to the criminal conduct, as well as the need to protect the public from further crimes by Fixico. Fixico will be required to register as a sex offender and was also placed on supervised release for the remainder of his natural life, under the supervision of the United States Probation Office. This case is the result of investigations by the FBI Oklahoma City Field Office and the City of Purcell Police Department. Assistant U.S. Attorney Arvo Mikkanen prosecuted the case. Reference is made to public filings for more information.


title: Daviess County Man Pleads Guilty to Defrauding Covid Agricultural Program

component: USAO - Missouri, Western

body_text: KANSAS CITY, Mo. – A Jameson, Mo., man has pleaded guilty in federal court to defrauding the Coronavirus Food Assistance Program, a program created by the Coronavirus Aid, Relief, and Economic Security (CARES) Act. Troy Jennings, 49, waived his right to a grand jury and pleaded guilty before Chief U.S. District Judge Beth Phillips to a federal information that charges him with one count of theft of government funds. The Coronavirus Food Assistance Program (CFAP)—a program administered by the United States Department of Agriculture through the Farm Service Agency (FSA)—was created to provide financial assistance to producers of agricultural commodities during the coronavirus pandemic. As part of the program, cattle producers could receive a per-head payment for cattle sold between January 15, 2020, and April 15, 2020. In June 2020, Jennings provided false information on his CFAP application regarding the number of cattle he sold. When asked by the FSA to substantiate his numbers, Jennings submitted multiple fraudulent documents and activated a pre-paid phone in an attempt to impersonate another man. As part of his plea agreement, Jennings will be required to pay restitution in the amount of $114,267, the full amount he received from the CFAP. Under federal statutes, Jennings is subject to a sentence of up to 10 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes only, as the sentence of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office. This case is being prosecuted by Assistant U.S. Attorney Nicholas P. Heberle. It was investigated by the U.S. Department of Agriculture Office of Inspector General.


title: Danville, Illinois, Man Sentenced to 25 Years in Prison for Possession of a Firearm by a Felon as an Armed Career Criminal

body_text: URBANA, Ill. – A Danville, Illinois, man, Alvin Beasley, 38, was sentenced today to 300 months of imprisonment, to be followed by a five-year term of supervised release, after being convicted of possessing a firearm as a felon following a jury trial in September 2021. At the sentencing hearing in front of U.S. District Judge Colin S. Bruce, the government highlighted evidence that Beasley did not just possess a firearm, he discharged several shots at his pregnant girlfriend’s Danville home during a drive-by shooting while she was inside the residence. Beasley was on parole for a second-degree murder conviction at the time. In addition, the government pointed to jailhouse phone calls made after the shooting where Beasley said he “just snap[s] out for no reason” and wants to “hurt people.” Beasley also explained during another call that he was tired of dealing drugs and “just want[ed] to kill people.” Judge Bruce found that Beasley qualified as an Armed Career Criminal based on his prior state convictions for armed robbery, aggravated battery, and second-degree murder. That determination raised Beasley’s statutory penalties to fifteen years to life imprisonment. Judge Bruce further noted that the facts of Beasley’s case were serious and troubling and stated that Beasley attempted to obstruct justice with his testimony at trial. Specifically, after hearing the evidence against him, Beasley took the stand and admitted that he shot at his pregnant girlfriend’s residence, but tried to claim that he did so with a different gun than the one he was charged with possessing. The jury rejected his testimony and found him guilty. “Gun violence has no place in our communities, said U.S. Attorney Gregory K. Harris. “The U.S. Attorney’s Office for the Central District of Illinois will continue to work with our federal, state, and local law enforcement partners to protect our communities and ensure those who engage in gun violence are held accountable.” The case was investigated by the Danville Police Department, the Vermilion County Sheriff’s Office, the Vermilion County Metropolitan Enforcement Group, the Illinois State Police, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorneys Bryan Freres and William Lynch represented the United States in this prosecution.


title: Peoria, Illinois, Man Sentenced to 40 Months in Prison for Possession of a Firearm as a Felon

body_text: PEORIA, Ill. – A Peoria, Illinois, man, Denzel L. Jordan, 29, of the 1200 block of North University Street, was sentenced on July 20, 2023, to 40 months in federal prison for possession of a firearm and ammunition, to be followed by three years of supervised release. At the sentencing hearing before Senior U.S. District Judge Michael M. Mihm, the government presented evidence that in October 2022 Jordan, a felon, was stopped by Peoria Police after committing a traffic violation. When officers learned that Jordan’s license was suspended, they ordered him to exit his car but Jordan refused, causing police to forcibly remove him. During the resulting scuffle, an officer located a loaded handgun tucked into the back of Jordan’s waistband. The semiautomatic pistol had a live round in the chamber and 16 rounds of ammunition in the attached magazine. The backpack Jordan was wearing was found to contain two additional magazines, each fully loaded with 15 rounds of .40 caliber ammunition. The backpack also contained 56 additional rounds of .40 caliber ammunition. A federal grand jury returned an indictment against Jordan in October 2022. He entered a guilty plea in March 2023. Jordan has remained in the custody of the United States Marshal Service while his case has been pending. The statutory penalties for a possession of a firearm as a felon are up to 15 years’ imprisonment, a possible $250,000 fine, and up to a three-year term of supervised release. Jordan has forfeited the Smith & Wesson M&P pistol and the ammunition. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Peoria Police Department investigated the case. Assistant U.S. Attorney Ronald L. Hanna represented the government in the prosecution. The case against Jordan is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.


title: Peoria, Illinois, Man Sentenced to 48 Months in Prison for Possessing a Firearm as a Felon

body_text: PEORIA, Ill. – A Peoria, Illinois, man, Terrance T. Dotson, 50, of the 1600 block of South Livingston Street, was sentenced on July 20, 2023, to 48 months’ imprisonment, to be followed by three years of supervised release, for possessing a firearm and ammunition as a felon. At the sentencing hearing before U.S. District Judge James E. Shadid, the government presented evidence that in August 2022 a Peoria County Sheriff’s Deputy saw an SUV driven by Dotson veer off the road and strike a mailbox. An officer pulled Dotson over and, while approaching the SUV during the traffic stop, saw Dotson reach into the backseat area where another person was seated. An officer then shined his flashlight on the backseat and saw a handgun laying next to the passenger. Officers removed Dotson and others from the SUV and he was placed in the backseat of a police car. Officers later opened the door to talk to Dotson and saw him kicking at something on the floor that was then determined to be an ammunition magazine loaded with the same type of ammunition found in the gun in the SUV. A complaint was filed against Dotson in August 2022, and a federal grand jury returned an indictment in September 2022. A superseding indictment followed in February 2023. Dotson pleaded guilty in March 2023. He has remained in the custody of the U.S. Marshals Service since the complaint was filed. The statutory penalties for possessing a firearm as a felon are up to 15 years’ imprisonment, a possible $250,000 fine, and up to a three-year term of supervised release. The Bureau of Alcohol, Tobacco, Firearms and Explosives; the Peoria County Sheriff’s Department; and the Peoria Police Department investigated the case. Assistant U.S. Attorney Ronald L. Hanna represented the government in the prosecution. The case against Dotson is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.


title: Springfield, Illinois, Man Sentenced to 12 Months and One Day in Prison for Defrauding the Paycheck Protection Program

component: Department of Justice

body_text: SPRINGFIELD, Ill. – A Springfield, Illinois, man, Alex Jennings, 40 formerly of Lincoln, Illinois, was sentenced on July 20, 2023, to 12 months and one day in the federal Bureau of Prisons, to be followed by a three year term of supervised release, following his conviction for wire fraud. Jennings was further ordered to pay $46,666 in restitution. At the sentencing hearing in front of Senior U.S. District Judge Sue E. Myerscough, the government presented evidence that Jennings defrauded the Small Business Administration and a private lender into providing him with two Paycheck Protection Program loans for which he did not qualify. Jennings instead spent the money to purchase two cars for himself. Also at the hearing, Judge Myerscough noted that fraud by Jennings and others like him caused legitimate businesses to miss out on the aid they so desperately needed during a global pandemic. Judge Myerscough found that the defendant had defrauded the federal government and lender of over $40,000. Jennings had previously pleaded guilty to the four counts of wire fraud in February 2023. The statutory penalties for wire fraud count are up to 20 years’ imprisonment and up to a $250,000 fine, to be followed by up to three years of supervised release. “The Paycheck Protection Program was supposed to help businesses stay open and keep workers employed during a global emergency,” said U.S. Attorney Gregory K. Harris. “However, many people instead applied for this money illegally. This office will continue its efforts to hold accountable those criminal opportunists who sought to take advantage of a worldwide pandemic for their own personal gain.” “The U.S. Secret Service remains committed to identifying, investigating, and pursuing those who defraud the PPP and EDIL programs, which were designed to assist employers severely impacted by the COVID-19 pandemic,” said Stephen S. Webster, United States Secret Service Resident Agent in Charge, Springfield Resident Office. “Programs such as these were established to help those in need, not benefit fraudsters. We are proud of our partnerships with the federal, state, and local agencies who work collectively to hold these individuals accountable for their actions.” The United States Secret Service investigated the case, with assistance from the Springfield Police Department. Assistant U.S. Attorney Sarah E. Seberger represented the government in the prosecution. COVID-19 disaster relief benefits are intended to help people and businesses suffering as a result of the pandemic. If members of the public suspect that anyone fraudulently obtained or misused benefits, they should contact the National Center for Disaster Fraud (NDCF) Hotline at 1-866-720-5721 or submit the NCDF Web Complaint Form. The NCDF is a national coordinating agency within the Department of Justice’s Criminal Division dedicated to improving the detection, prevention, investigation, and prosecution of criminal conduct related to natural and man-made disasters and other emergencies, such as the coronavirus (COVID-19). Hotline staff will obtain information regarding complaints, which will then be reviewed by law enforcement officials. More information is available at https://www.justice.gov/disaster-fraud .


title: Hospital Employee Sentenced to 3 Years in Prison for Using Patient Information to Steal Pandemic Unemployment Benefits

component: USAO - California, Southern

body_text: NEWS RELEASE SUMMARY – July 21, 2023 SAN DIEGO – Matthew George Lombardo was sentenced in federal court to 36 months in prison for using his position as a clerk at a local hospital to steal patient identifying information and pass the information on to others in an attempt to steal Pandemic Unemployment Assistance (PUA) benefits. Lombardo pleaded guilty in September 2022. According to the government’s sentencing memo, in August of 2020 Lombardo worked at a hospital as a Patient Service Representative where he had access to patient admission sheets, which included patient identifying information. Lombardo used that position to access that confidential patient information and provide it to a co-defendant for use in submitting PUA claims to the California Employment Development Department (EDD). Text messages between Lombardo and his co-defendants show they were looking for the most vulnerable victims. For example, on August 15, 2020, Lombardo texted a co-defendant “if you need social security numbers or anything I can pull that shit up at work.” The government’s sentencing memo further describes how Lombardo and his co-defendants deliberately took advantage of people in their most vulnerable state. For example, on August 22, 2020, Lombardo texted his co-defendant the name, date of birth, social security number, and address of a patient and wrote, “this guy died a few hours ago, how many names do we need?” The co-defendant texted back: “find me one who is still alive . . . someone 55 or younger who is on their way out.” In imposing a 36-month sentence U.S. District Judge Cathy Ann Bencivengo noted that Lombardo was stealing public assistance benefits intended to help people during a national emergency and said she found the text messages deliberately targeting hospital patients to be “callous.” "During a national healthcare emergency, Mr. Lombardo stole the identities of hospital patients to defraud the government of funds intended for people in crisis,” said U.S. Attorney Randy Grossman. “This office and our law enforcement partners are dedicated to pursuing such frauds and will hold the perpetrators accountable.” Grossman thanked the prosecution team and investigating agencies who diligently pursued this case. “The DEA and its partners will continue to pursue justice for the citizens of San Diego,” said DEA Special Agent in Charge Shelly Howe. DEFENDANT Case Number 21-CR-2154-CAB Matthew George Lombardo Age: 54 San Diego SUMMARY OF CHARGES Count 1: Conspiracy to Commit Wire Fraud – Title 18, U.S.C., Section 1349 Maximum penalty: 20 years in prison Counts 2 and 3: Aggravated Identity Theft – Title 18, U.S.C., Section 1028A Maximum penalty: 2 years in prison Count 4: Using Confidential Health Information for Personal Gain – Title 42, U.S.C., Section 1320d-6 Maximum penalty: 10 years in prison AGENCY Drug Enforcement Administration United States Postal Inspection Service United States Department of Labor, Office of the Inspector General California Employment Development Department Investigation Division San Diego County Sheriff’s Department


title: Information Technology Consultant Sentenced to 21 Months for Stealing Hundreds of Thousands of Dollars from Small Business

body_text: SAN DIEGO – Derek Gleeson, an Information Technology (“IT”) Consultant, was sentenced in federal court today to 21 months in prison for embezzling hundreds of thousands of dollars from a family-owned small business based in New Jersey. In November 2022, Gleeson, pleaded guilty to a wire fraud charge, admitting that he charged the small business for IT hardware, software, and services that he never supplied. Gleeson also admitted that he ginned up or altered invoices in an effort to substantiate the fake charges he submitted to the company. According to the plea agreement, when the company grew suspicious and confronted Gleeson about the charges, he installed pirated software on the company’s servers, all to make it appear that he had purchased and installed legitimate software, when in fact he had not. The fraudulent scheme lasted for four years and resulted in over $600,000 in losses. Gleeson lived in Carlsbad, California at the time of the fraud. "For years, this defendant took advantage of a position of trust that gave him full access to a small business’s IT system,” said U.S. Attorney Randy Grossman. “Fortunately, he has been held accountable for the significant impact his crime had on this business and its owners.” Grossman praised the excellent work of the prosecutors and FBI agents who worked on this case. DEFENDANTS Case Number 20cr3246-DMS Derek Gleeson Age: 51 Round Rock, TX SUMMARY OF CHARGES Wire Fraud – Title 18, U.S.C., Section 1343 Maximum penalty: Twenty years in prison and $250,000 fine AGENCY FBI


title: Moravia Man Sentenced to 41 Months for Unlawfully Possessing a Short-Barreled Rifle

component: USAO - New York, Northern

body_text: SYRACUSE, NEW YORK –Duane Hollenbeck, age 54, of Moravia, New York, was sentenced today to serve 41 months in federal prison for possessing an unregistered short-barreled rifle. United States Attorney Carla B. Freedman, Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), and New York State Police Acting Superintendent Steven A. Nigrelli made the announcement. As part of his previously entered guilty plea, Hollenbeck admitted to possessing an unregistered AR-15 style American Tactical rifle. The rifle, which had a barrel length of less than 16 inches, was not registered to the defendant in the National Firearms Registration and Transfer Record, as required by federal law. Chief United States District Judge Brenda K. Sannes also sentenced Hollenbeck to a 3-year term of supervised release, to begin after his imprisonment. The case was investigated by the Federal Bureau of Investigation (FBI), the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), and the New York State Police, with assistance from the Chenango County District Attorney’s Office. Assistant U.S. Attorney Geoffrey J. L. Brown prosecuted the case.