A former civil engineering contractor in Macomb County, Paulin Modi, 50, of Troy, Michigan, was sentenced today to twelve months in prison followed by two years of supervised release based on his conviction for conspiracy to commit bribery, United States Attorney Matthew Schneider announced. 

Schneider was joined in the announcement by Timothy R. Slater, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation and Manny Muriel, Special Agent in Charge of the Detroit Field Office of the Internal Revenue Service.

In September 2017, Modi pleaded guilty to conspiring to bribe Steven Hohensee, who was then the Superintendent of the Department of Public Works for Washington Township, Michigan.  Modi paid multiple cash bribes amounting to $5,000 to Hohensee in 2013 and 2014 in an effort to secure a $1 million per year engineering contract between Modi’s company and Washington Township.  In addition, Modi assisted two executives from another engineering firm to pay a $2,000 bribe to Hohensee with the hope of securing more business for this other engineering firm.  Unbeknownst to Modi, Hohensee was cooperating with the FBI at the time, and Hohensee recorded the bribe payment and related discussions.  Modi also provided a $25,000 “loan” to another Washington Township official in order to protect his firm’s contract with the township.

After being confronted by the FBI back in 2015, Modi has worked diligently to cooperate with the government’s investigation into cooperation in Macomb County.  His sentence was reduced based on that cooperation, including his June 2018 testimony at the trial of Clinton Township Trustee Dean Reynolds.  Reynolds, who failed to take responsibility for his actions and did not cooperate in the investigation, was sentenced to 17 years in prison on February 6, 2019, based on his convictions for multiple conspiracies to commit bribery. 

This case is part of the government’s wide-ranging corruption investigation centered in Macomb County, Michigan.  The investigation of this case was conducted by the Federal Bureau of Investigation and the Internal Revenue Service.  The case is being prosecuted by Assistant U.S. Attorneys David A. Gardey and R. Michael Bullotta.

An Elizabeth, New Jersey man was sentenced today to 155 months in federal prison after having pleaded guilty in August, 2018, to a charge of kidnapping, announced United States Attorney Matthew Schneider.

Schneider was joined in the announcement by Special Agent in Charge Timothy R. Slater, Federal Bureau of Investigation.

Trace Rod Stewart, 50, was sentenced before United States District Judge Judith Levy.  He was ordered to serve 155 months in prison, followed by five years of supervised release.  He was also ordered to pay 6,000 dollars in restitution.

According to court records, during the middle of the night on October 20, 2017, the victim awoke to Stewart leaning over her with a gasoline can.  Stewart punched her in the face and forced her into a vehicle using a knife, stealing her keys, cellular phone, and credit card.  For the next nine hours, Stewart drove the victim to New Jersey without telling her where they were going or allowing her to use the restroom.  He threatened to light the container of gasoline and blow them both up if the police got behind them and refused to take her home.

Stewart’s criminal activity spans a period of 26 years.  Most of his prior offenses involve violence against women.  Stewart has several prior convictions, one of them for kidnapping.  That offense involved him pointing a gun at a female victim, threatening to kill her, and holding her against her will.  Stewart received probationary sentences or a fine for the majority of his prior assaultive behavior.

This case was investigated by special agents of the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney April Russo.

BOSTON - A Charlestown man pleaded guilty yesterday in federal court in Boston to bank robbery.

Robert H. Brady, 41, pleaded guilty to one count of bank robbery. U.S. District Court Judge Douglas P. Woodlock scheduled sentencing for May 7, 2019. Brady is currently in federal custody.

On June 28, 2018, an individual, later identified as Brady, entered a branch of the Cambridge Savings Bank in Charlestown, approached a teller, and demanded the bank’s money - stating words to the effect of: “Give me everything or I will come back and blow this place up.” The teller gave Brady money from her cash drawer, which included a GPS tracking device. Brady then fled the scene.

Law enforcement activated the GPS tracking device, and a short time later, located and arrested Brady. At the time of his arrest, Brady was in possession of the bank’s money and the GPS tracking device. 

The charge provides for a sentence of no greater than 20 years in prison, three years of supervised release, and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Office; and Boston Police Commissioner William Gross made the announcement. Assistant U.S. Attorney Kenneth G. Shine of Lelling’s Major Crimes Unit is prosecuting the case.

Two men were indicted for child pornography crimes.

David Nestor, 39, of Navarre, was indicted on one count of receipt and distribution of child pornography and one count of possession of child pornography. Nestor received and distributed images of children engaged in sexually explicit conduct between October and December 2018, and possessed those images on January 22, 2019.

Jordan Coffman, 23, of Huron, was indicted on one count of possession of child pornography. Coffman, in 2015, possessed images of children engaged in sexually explicit conduct.

If convicted, the defendant’s sentence will be determined by the Court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.

The Nestor case is being prosecuted by Assistant U.S. Attorney Carol Skutnik following an investigation by the FBI. The Coffman case is being prosecuted by Assistant U.S. Attorney Tracey Ballard Tangeman following an investigation by the FBI.          

An indictment is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.

OKLAHOMA CITY – GREGORY DAMIEN LORSON, of Panama City Beach, Florida, was sentenced today to five years in prison for not paying federal payroll taxes withheld from wages of TEEMCO, LLC, employees, announced Robert J. Troester of the U.S. Attorney’s Office.

On April 3, 2018, Lorson was charged in a one-count Information with willful failure to collect and pay federal payroll taxes to the IRS.  According to the Information, Lorson was President and Chief Executive Officer of TEEMCO, LLC, from 2010 until the business closed in mid-2015.  TEEMCO was an environmental sales and consulting company in Oklahoma City.  From 2010 to 2015, TEEMCO deducted and withheld federal income taxes, Social Security taxes, and Medicare taxes (commonly called "payroll taxes") from wages of TEEMCO employees.  Under federal law, an employer must deduct and withhold payroll taxes from employees’ wages, and then pay those withheld taxes to the IRS at the end of each quarter.  According to the Information, instead of forwarding the withheld payroll taxes to the IRS, Lorson used that money to fund TEEMCO’s extensive advertising campaign and to pay other creditors and expenses.

Lorson pleaded guilty on June 15, 2018.  He admitted that TEEMCO withheld federal payroll taxes from employees’ wages and that he knew TEEMCO had a duty to pay those withheld taxes to the IRS.  Lorson admitted that he directed TEEMCO employees not to forward the withheld payroll taxes to the IRS.  He also admitted that he failed to file with the IRS quarterly federal tax returns for TEEMCO from 2010 to 2015.  As part of his plea agreement, he agreed to pay $3,003,220.47 in restitution to the IRS for withheld payroll taxes and other federal taxes that TEEMCO never paid to the IRS for company employees.  Lorson also agreed to pay an additional $542,162.53 in restitution to the Oklahoma Tax Commission for TEEMCO employees’ state taxes that were withheld but never paid to state tax authorities.    

Today Chief U.S. District Judge Joe Heaton sentenced Lorson to five years in federal prison, followed by three years of supervised release.  The court chose a sentence above the advisory sentencing guideline range and at the statutory maximum based on the circumstances of the offense and other factors.  Lorson will also be required to pay restitution in the amount of $3,545,383.00. 

This case was the result of an investigation conducted by IRS–Criminal Investigations and was prosecuted by Assistant U.S. Attorney Chris M. Stephens.

Reference is made to public filings for further information.

Downloadable file: U.S. v. Ayala - Exhibit #311

PORTLAND, Ore.—A federal jury found Mary Holden Ayala, 59, of Portland, guilty today of stealing nearly $1 million from an Oregon foster care agency, money laundering and filing false personal income tax returns.

From at least 2008 to 2015, Ayala, a longtime Portland resident, served as the President, Executive Director and primary agent of Give Us This Day (GUTD), a private foster care agency and residential program for youth.

“Children in foster care rely heavily on the agency to which they are entrusted and these agencies are responsible for protecting and caring for them. Mary Holden Ayala grossly neglected her duties and selfishly stole from children in need,” said Billy J. Williams, U.S. Attorney for the District of Oregon. “This prosecution demonstrates our firm commitment to protecting the integrity of federally-funded social service programs.”

“Abuse, drug addiction and violent crime can force children into a foster care system that is supposed to give them a second chance at a better life. One person's greed can corrupt that system, though, leading to victimization of these vulnerable kids. Help stop such victimization and strengthen important institutions by reporting public corruption when you see it,” said Renn Cannon, Special Agent in Charge of the FBI in Oregon.

“Mary Ayala’s theft of nearly $1 million was nothing short of stealing food and shelter from the most vulnerable of our population,” said Acting Special Agent in Charge Troy Burrus, IRS-Criminal Investigation, Seattle Field Office. “Instead of ensuring the children entrusted to her care were properly clothed and fed, Ayala used the money for luxury home renovations, a pilot for a reality show, extensive travel to luxury resorts, music recording studio, luxury shoes and purses. Her final act of contempt was to attempt to hide the stolen money by filing federal tax returns without declaring the stolen funds.”

“Ms. Ayala’s crimes are disturbing: she embezzled money meant to assist foster care children and their families,” said Special Agent in Charge Steven J. Ryan of the Department of Health and Human Services Office of Inspector General. “We will continue to investigate such greed-fueled fraud schemes.”

According to court documents, since its inception in 1979, GUTD was primarily funded by the Oregon state and federal government for foster care services including hiring and screening foster parents for community placements, compensating foster parents for services and placing foster children in residential or group homes. GUTD federal funding originated from the Administration for Children and Families, a division of the U.S. Department of Health and Human Services, and was administrated by ODHS.

From 2009 through 2015, Ayala exercised sole and complete control over GUTD finances. No other GUTD employee or board member had access to the organization’s bank accounts or statements during this time. With no internal controls in place, Ayala wrote checks, used the GUTD debit card and withdrew cash at will, using the organization’s bank accounts as her own.

Ayala used the money stolen from GUTD to pay her mortgage, remodel her home and fund other retail, travel and transportation expenses. Additionally, she used the money to fund other, non-GUTD business ventures including a media company and Big Mary’s, a fish and ribs restaurant in Portland, and to purchase and flip a commercial property.

In total, Ayala stole nearly $1 million from GUTD. As a result, her employees, foster parents and foster children in GUTD’s care suffered tremendously. GUTD residential center and house managers complained about a lack of basic necessities, including but not limited to food, toiletries and cleaning supplies.

In 2015, the day after Ayala resigned her position at GUTD, she filed five false federal income tax returns for tax years 2009 through 2013. Shortly thereafter, she filed a sixth false return for tax year 2014. Ayala failed to file a tax return in 2015.

In a superseding indictment returned on May 3, 2017, a federal grand jury in Portland charged Ayala with five counts of theft concerning programs receiving federal funds, one count of concealment of money laundering, one count of failure to file a personal federal tax return and two counts each of engaging in monetary transactions with criminally derived property and filing a false personal federal tax return. The government dropped the concealment of money laundering charge prior to trial.

Ayala will be sentenced on May 29, 2019 by U.S. District Court Judge Marco A. Hernandez.

The government has seized more than $450,000 in criminally-derived proceeds from Ayala that it will seek to forfeit by court order post sentencing.

This case was investigated by the FBI, the Department of Health and Human Services Office of Inspector General and IRS-Criminal Investigation. It was prosecuted by Donna Maddux, Clemon Ashley and Julia Jarrett, Assistant U.S. Attorneys for the District of Oregon.

A federal grand jury returned a two-count indictment charging Lon R. Sweeney, age 53, making threats against a federal employee and assault of federal officers.

The indictment alleges that Sweeney threatened a Department of Veterans Affairs employee and later, while being placed under arrest, assaulted three VA officers.

Assistant U.S. Attorney Brad Beeson is prosecuting the case following an investigation by the Department of Veterans Affairs Office of Inspector General — Criminal Investigative Division and the VA Police Department.

If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation.  In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.

An indictment is only a charge and is not evidence of guilt.  A defendant is entitled to a fair trial, in which it will be the government’s burden to prove guilt beyond a reasonable doubt

Four men from Toledo were indicted for firearms crimes.

Emanuel Riley, 27, and Sevario Whitaker, 36, were charged with with theft from a federal firearms licensee, possession of silencers not registered to them, possession of stolen firearms, and possession of firearms after being convicted of a felony.

According to documents filed in the case:

A federal firearms licensee doing business as Towers Armory was burglarized on November 19, 2018. Approximately 46 firearms, six suppressors and four gun bags were missing from the store. Video surveillance from the store showed two men entered the store at approximately 3:24 a.m. after gaining access through the ventilation system on the roof and began removing firearms. They returned to the store several times in the early morning hours and continued removing firearms.

Investigators obtained additional footage from a nearby business that showed the two men entered a Toyota Camry and drove away. A Toledo police detective recognized the vehicle as one that was used by Riley.

The vehicle was towed from Riley’s mother’s house and Oregon police executed a state search warrant. Inside the vehicle they recovered gloves, a hat, a face mask and Friday the 13^th-style mask consistent with what the burglars on the store surveillance footage were wearing. Whitaker was arrested on an outstanding warrant and also found to be wearing a sweatshirt consistent with what one of the burglars was wearing.

DNA testing revealed Whitaker’s DNA could not be excluded from a red pry bar left behind at the burglary scene and the DNA of both men could not be excluded from DNA taken from the face mask recovered from the Camry.

A search of cell tower records indicates both Riley and Whitaker’s phones connected with a cell tower within one mile of the firearms store around the time of the burglary.

Darius Travell Johnson, 30, was charged with being a felon in possession of a firearm. Johnson possessed a Taurus PT-111 pistol on January 16, despite previous convictions for felonious assault and robbery, according to the indictment.

Robert Louis Winston, 58, of Toledo, was charged with being a felon in possession of a firearm. Winston possessed a Smith and Wesson .380-caliber pistol on January 9 despite previous convictions for aggravated burglary, aggravated robbery, trafficking in heroin and numerous other crimes, according to the indictment.

These cases are being prosecuted as part of "Project Safe Neighborhoods," a gun violence reduction program administered by the Department of Justice, U.S. Attorney's Office for the Northern District of Ohio.  The program targets armed criminals for federal prosecution. 

These cases are being prosecuted by Assistant U.S. Attorney Matthew D. Simko following investigations by the Oregon Police Department, Toledo Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives (Riley and Whitaker), Sylvania Township Police Department, the Federal Bureau of Investigation, and the ATF (Johnson and Winston).

If convicted, the defendant’s sentence will be determined by the Court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation.  In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.  

An indictment is only a charge and is not evidence of guilt.  The burden of proof is always on the government to prove a defendant guilty beyond a reasonable doubt.

Memphis, TN – U.S. Attorney D. Michael Dunavant was recently elected a Fellow of the Tennessee Bar Foundation, an association of 868 attorneys across the state. Invitations to membership, which is a position of honor, were extended to 24 attorneys this year by the Board of Trustees. The introduction of new Fellows took place in January at the annual Fellows' Dinner in Nashville.

The Foundation functions with a two-fold purpose. First, it honors attorneys who have distinguished themselves in the profession. The Bar Fellows are limited to those outstanding lawyers, judges and teachers of law licensed to practice for a period of 15 years who have: a) demonstrated an uncompromised dedication to integrity and high personal and professional ethical standards; and b) made outstanding and recognized contributions to the legal profession and to the public good.

Since the program’s inception in 1986, the Foundation’s second purpose is to administer the "IOLTA" (Interest on Lawyers Trust Accounts) program of the Tennessee Supreme Court. Through this program, grants have been awarded in excess of $22,000,000 to law-related public interest projects throughout Tennessee, including providers of legal services to the indigent, organizations that seek to improve the administration of justice, and to law students as scholarships. The 2019 IOLTA award recipients in the Western District of Tennessee include, West Tennessee Legal Services, Inc., in Jackson, the Community Legal Center, the Kindred Place (f/k/a Exchange Club Family Center) in Memphis, and Memphis Area Legal Services, Inc.

"I am honored to be selected as a Fellow along with so many distinguished lawyers and judges who have given distinguished service to the administration of justice in Tennessee," Dunavant said. "The Tennessee Bar Foundation is vital to promoting the highest standards of the legal profession, and I look forward to this unique opportunity to support and participate in its important mission."

D. Michael Dunavant is a graduate of the University of Tennessee at Knoxville and the University Of Mississippi School Of Law, and has been practicing law in West Tennessee for 24 years, including 11 years as the District Attorney General for the 25th Judicial District of Tennessee and 11 years in private practice. Dunavant currently serves as the United States Attorney for the Western District of Tennessee.

D. Michael Dunavant, U.S. Attorney Western District Tennessee

BOSTON – Today, U.S. Attorney Andrew E. Lelling announced the launch of a new wave of public service announcements primarily aimed at increasing awareness about the dangers and consequences of abusing, selling and sharing opioids. The ads can be found at www.justice.gov/usao-ma/ResistTheRisk.

The scope of the opioid crisis requires a multi-faceted government response that includes educating the public about opioids to prevent addiction before it starts. The U.S. Attorney’s Office, with insight and feedback from various stakeholders, including local law enforcement and first responders, public health professionals, high school students, and formal and informal focus group participants, developed various public service announcements that provide targeted information about opioids. The ads tackle a wide variety of topics such as what constitutes an opioid, the importance of properly storing prescription medications, the dangers associated with abusing pain pills – including mixing pain pills with alcohol or other controlled substances, as well as the laws associated with sharing and distributing opioids, and the legal rights afforded to individuals living with opioid dependence.

“Our mission at the Justice Department is not just to prosecute crime but to prevent it,” said U.S. Attorney Lelling. “We are in the midst of a major public health crisis. Every day federal authorities see people whose lives are being destroyed by opioids, whether those drugs came from street-level dealers or diverted prescriptions. By this point, every drug dealer knows that heroin and fentanyl are killing thousands of people a year, and I will continue to seek the highest sentences available for those who prey on addicts by selling them these deadly substances. But that’s not enough: we should also play a role in educating the public about the dangers of recreational opioid use, of counterfeit pills bought on the street, of mixing prescription opioids with alcohol or other controlled substances, and about the need for increased treatment and rehabilitation opportunities for people in the grip of opioid addiction.”

The new public service announcements released today supplement existing materials launched in November 2017. The new wave includes four 30-second videos (produced by Ted Reed Productions, LLC), six short audio messages, and an animation. The ads will be disseminated widely across both traditional and digital media platforms – from recreational venues, cinemas, television and radio stations, to online music streaming sites, Google advertising, and the most popular social media platforms. While each message addresses a different aspect of the crisis, they all serve the same goal: prevention. 

For more information about the campaign, please visit www.justice.gov/usao-ma/ResistTheRisk. 

AUGUSTA, Ga: A Martinez man has been sentenced to federal prison and ordered to pay nearly $1.5 million in restitution for defrauding government healthcare and disability programs.

Jonathan Duane Austin, 32, of Martinez, Ga., was sentenced to 30 months in federal prison and ordered to pay $1,473,377.51 in restitution by U.S. District Court Chief Judge J. Randal Hall, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia.

At the completion of Austin’s sentence, he will be subject to an additional term of supervised release. There is no parole in the federal system.

According to court documents in the case, Austin admitted to defrauding Medicare and Tricare for nearly three years by submitting false claims for prescription reimbursements totaling $1,450,000, and to defrauding the Social Security Administration by providing forged documents to falsely claim disability status.

The Austin case represents one of the largest beneficiary-created fraud schemes ever prosecuted in the Southern District.

These Austin case was investigated by the Defense Criminal Investigative Service (DCIS), the Department of Health and Human Services (HHS), and the Social Security Administration.

The Health Care Fraud Task Force aggressively prosecutes health care fraud and abuse. The Task Force’s effort is reflected in other recent plea agreements and sentences, including:

Maryanne Hudson, 49, of Millen, Ga., was sentenced to 13 months in federal prison by U.S. District Court R. Stan Baker for fraudulently billing Medicare for durable medical equipment that a physician had not actually ordered as reasonable and necessary; and,

Paula Padgett, 49, of Brunswick, Ga., was sentenced to probation for submitting false requests for compensation to the United States Department of Labor, Office of Workers’ Compensation Programs, by U.S. District Court Lisa Godbey Wood.

These cases were investigated by HHS, the Federal Bureau of Investigation (FBI), the Department of Labor (DOL), and the U.S. Attorney’s Office.

“These types of fraud erode faith in the health care system, and we will not tolerate it,” said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. “Individuals who engage in schemes to steal from taxpayers hurt those with real health problems and the systems in place to address those needs.”

“The Austin sentencing demonstrates the commitment of DCIS to protect the integrity of the DoD health care program (TRICARE) from fraud and abuse,” said Special Agent in Charge John F. Khin, DCIS Southeast Field Office.  “DCIS investigations ensure taxpayer money is properly used to support our warfighter, retirees and their family members.”

“The Social Security OIG will continue to maintain our strong partnerships with other federal, state, and local agencies as we combat fraud. Our responsibility in protecting taxpayers’ dollars doesn’t end with Social Security benefits only, “said Gail S. Ennis, Inspector General of the Social Security Administration. “We will continue to work closely with our law enforcement partners to detect and prevent benefit fraud across the country.”

“This sentencing reaffirms our commitment to protecting patients from the dangers of prescription drug fraud,” said Special Agent in Charge Derrick L. Jackson, of the HHS Office of Inspector General. "Our watchdog agency will continue to work closely with our law enforcement partners to root out waste, fraud and abuse."

“When Hudson fraudulently billed Medicare she not only cheated taxpayers, she also hurt those who rely on the government program for their healthcare needs,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The FBI makes it a top priority to protect government programs like Medicare to ensure that only those who need assistance get it.”

“Paula Padgett engaged in a scheme to defraud the U.S. Department of Labor’s (DOL) Federal Employees’ Compensation Act program by submitting fraudulent claims to the Office of Workers’ Compensation Programs (OWCP) for the reimbursement of nonexistent travel expenses for medical treatment. We will continue to work with OWCP and our law enforcement partners to protect the integrity of DOL’s benefit programs,” said Rafiq Ahmad, Special Agent in Charge, Atlanta Region, U.S. Department of Labor Office of Inspector General.

Assistant United States Attorney J. Thomas Clarkson prosecuted these cases for the United States.

MONROE, La. – The Justice Department and the U.S. Attorney’s Office announced today that Quintail Credit, a former officer at the Richwood Correctional Center, pleaded guilty in federal court yesterday for his role in a conspiracy to cover up the physical assault of five inmates by officers.  Credit, 26, of Winsboro, Louisiana, pleaded guilty to conspiring with other officers to falsify documents with intent to obstruct and influence the investigation of a matter within federal jurisdiction.  Assistant Attorney General Eric Dreiband for the Civil Rights Division and U.S. Attorney for the Western District of Louisiana David C. Joseph made the announcement.

“Any officer who conspires to cover up any crime or physical assault against an inmate violates federal law and will be held accountable under the law,” said Assistant Attorney General Eric Dreiband. “The Justice Department will continue to prosecute unlawful misconduct by correction officers.”

“Criminal conduct by correctional officers will not be tolerated in the Western District of Louisiana,” said U.S. Attorney David C. Joseph.  “Correctional officers deserve our respect for the jobs they do, but we must also hold them accountable when they willfully break the law and cover up the abuse of inmates.”

According to his guilty plea, Credit worked as a correctional officer at the Richwood Correctional Center in Richwood, Louisiana, where on Oct. 30, 2016, he and other officers abused inmates and then conspired to cover it up.  According to Mr. Credit, he and other officers sprayed a chemical agent directly in the faces and eyes of five inmates while the inmates were handcuffed, compliant, kneeling on the floor, and not posing a physical threat to anyone.  Following that abuse, Mr. Credit and the other officers conspired to hide their conduct by submitting false reports. 

Roderick Douglas, a former supervisor at the Richwood Correctional Center, pleaded guilty in federal court on January 31, 2019 for his role in the conspiracy to violate the civil rights of five inmates.  Sentencing for Douglas is scheduled for June 5, 2019.

The count of conviction carries a maximum penalty of five years in prison and a criminal fine of up to $250,000.  Quintail Credit is scheduled to be sentenced on May 17, 2019 by U.S. District Judge Terry A. Doughty of the Western District of Louisiana, who accepted the plea.

The case was investigated by the Monroe Division of the FBI.  Assistant U.S. Attorney Mary Mudrick of the U.S. Attorney’s Office, Western District of Louisiana, and Trial Attorney Anita Channapati of the Civil Rights Division, Criminal Section, are prosecuting the case.

SHREVEPORT, La. – A federal jury found Carlos A. Spann guilty Thursday night for his role in a fraudulent check scheme resulting in the theft of nearly $200,000, U.S. Attorney David C. Joseph announced.  The jury deliberated for approximately one hour before finding Spann guilty of one count of conspiracy to commit bank and wire fraud and two counts of wire fraud.

Evidence admitted at trial showed that Spann, 41, Phelix K. Williams, 28, and Anthony E. Johnson, 23, all of Shreveport, conspired to cash counterfeit checks using fraudulent identities at banks and retail establishments throughout Louisiana.  During the conspiracy, the co-defendants negotiated more than 100 counterfeit checks resulting in nearly $200,000 in illegally obtained proceeds.

United States District Judge S. Maurice Hicks Jr. presided over the trial that started Monday and ended Thursday.  Hicks set Spann’s sentencing for May 23, 2019. 

Johnson pleaded guilty on January 17, 2019 to one count of conspiracy and two counts of bank fraud.  Johnson is scheduled to be sentenced May 1, 2019. Williams pleaded guilty Monday to one count of conspiracy, 12 counts of bank fraud and two counts of wire fraud. Williams is scheduled to be sentenced May 30, 2019. The defendants face up to 30 years in prison, five years supervised release and a $1 million fine.            

The U.S. Secret Service conducted the investigation.  Assistant U.S. Attorney Tiffany Fields and First Assistant U.S. Attorney Alexander C. Van Hook prosecuted the case.

Matthew D. Krueger, U.S. Attorney for the Eastern District of Wisconsin, announced that on February 5, 2019, a federal grand jury returned a one-count indictment against two men allegedly involved in a firearms offense in the Menominee Indian Reservation. The indictment named Tony A. Fish, Jr. (age: 38) of Zoar and Robert S. Bear (age: 38) of Neopit. The indictment charged both Fish and Bear with being a Felon in Possession of a Firearm, in violation of 18 U.S.C. 922(g). If convicted, each defendant faces a maximum of 10 years’ imprisonment, up to a $250,000 fine, and up to 3 years of supervised release.

According to the indictment, on or about January 6, 2018, while at a residence in the Village of Zoar, Fish and Bear possessed a .30-06 rifle. Both defendants were prohibited from possession of firearms at the time of the incident.

This case is being prosecuted as part of the Project Safe Neighborhoods initiative. Project Safe Neighborhoods is a federal, state, and local law enforcement collaboration to identify, investigate, and prosecute individuals responsible for violent crimes in our neighborhoods. Project Safe Neighborhoods’ strategy brings together all levels of law enforcement and community resources to reduce violent crime and improve the quality of life in all our neighborhoods.           

The Menominee Tribal Police Department investigated the case, with assistance from the Menominee County Sheriff’s Office and Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Andrew J. Maier.

An indictment is only a charge and not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government must prove their guilt beyond a reasonable doubt.

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United States Attorney Matthew D. Krueger of the Eastern District of Wisconsin, announced that on February 5, 2019, a federal grand jury returned an indictment against Brandon T. Daul (age: 36) of Appleton, Wisconsin.

According to the indictment, in October of 2015, Daul distributed images of child pornography including images of children approximately seven years of age and younger. He is also alleged to have possessed images of child pornography two years later in October of 2017. The indictment further reflects that Daul was convicted on October 5, 2011, in Outagamie County Circuit Court, for the crime of possession of child pornography and is a lifetime sex offender registrant in the State of Wisconsin.

Daul faces one charge of distribution of child pornography, contrary to Title 18, United States Code, Section 2252A(a)(2)(A), and possession of child pornography, contrary to Title 18, United States Code, Section 2252A(5)(b). He faces a mandatory minimum sentence of 15 years and up to 40 years of incarceration in federal prison.

He is scheduled for arraignment in Green Bay federal court on February 20, 2019.

This case was investigated by U.S. Immigration and Customs Enforcement, Homeland Security Investigations, with the assistance of the Saskatchewan Integrated Internet Child Exploitation Unit, the Wisconsin Department of Justice, Division of Criminal Investigation, and the Appleton Police Department.  It will be prosecuted by Assistant United States Attorney Daniel R. Humble.

An indictment is only a charge and is not evidence of guilt.  The defendant is presumed innocent and is entitled to a fair trial at which the government must prove him guilty beyond a reasonable doubt.    

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United States Attorney Matthew D. Krueger of the Eastern District of Wisconsin, announced that on February 5, 2019, a federal grand jury issued an indictment against Michael J. Propst (age: 46) of Green Bay, Wisconsin.

The six-count indictment alleges that Propst placed interstate telephone calls to daycare centers in Indiana and Iowa with “the intent annoy, abuse, threaten, and harass a person” at those daycare centers contrary to Title 47, United States Code, Section 223(a)(1)(C). It further alleges that Propst’s telephone calls contained “threats to injure the person of another” in violation of Title 18, United States Code, Section 875(c). If convicted of all charges, Propst faces up to 21 years imprisonment and up to $1.5 million in fines, or both.

This case was investigated by the Federal Bureau of Investigation and the Green Bay Police Department. It will be prosecuted by Assistant United States Attorney Daniel R. Humble.

An indictment is only a charge and is not evidence of guilt.  The defendant is presumed innocent and is entitled to a fair trial at which the government must prove him guilty beyond a reasonable doubt.   

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United States Attorney Matthew D. Krueger of the Eastern District of Wisconsin, announced that on February 5, 2019, a federal grand jury issued an indictment against Tou W. Vang, also known as “Meng Vang” (age: 38) of Neenah, Wisconsin.

The indictment alleges that Vang possessed methamphetamine and marijuana with the intent to distribute the controlled substances contrary to Title 21, United States Code, Sections 841(a), (b)(1)(A), and (b)(1)(D). Further, he is charged with possession of a firearm in furtherance of a drug trafficking crime in violation of Title 18, United States Code, Section 924(c)(1)(A). If convicted of the charges alleged, Vang faces a mandatory 15 year prison sentence and up to a lifetime of imprisonment.

Vang will be arraigned on February 14, 2019, in Green Bay federal court.

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Wisconsin Department of Justice, Division of Criminal Investigation, and the Appleton Police Department. It will be prosecuted by Assistant United States Attorney Daniel R. Humble.

An indictment is only a charge and is not evidence of guilt.  The defendant is presumed innocent and is entitled to a fair trial at which the government must prove him guilty beyond a reasonable doubt.    

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United States Attorney Matthew D. Krueger has announced that last Friday, United States District Judge Pamela Pepper sentenced Deon Batton to 12 ½ years in prison after he pled guilty to committing five armed robberies in Milwaukee and one count of discharging a firearm during a crime of violence.  Judge Pepper previously sentenced Batton’s co-defendant, Laura Walton, to 10 years in prison after she pled guilty to committing five armed robberies and one count of brandishing a firearm during a crime of violence.  Neither defendant had a felony conviction prior to their arrest for the armed robberies. 

As part of their plea agreements, Batton and Walton admitted to robbing two Subway restaurants, a Cousin’s Subs restaurant, a Taco Bell, and a GameStop store between October 9 and 11, 2017.  During each robbery, one or both of them brandished handguns and pointed them at employees.  During one of the Subway robberies, Batton discharged his weapon at a security monitor.  Under federal law, the discharge of a firearm during a crime of violence, like a robbery, requires a 10-year mandatory minimum prison sentence; brandishing a firearm requires a 7-year mandatory minimum prison sentence.    

This case was investigated by the FBI’s Milwaukee Area Violent Crimes Task Force, the Milwaukee Police Department, and the Milwaukee County District Attorney Investigator’s Office.  The case was prosecuted by Assistant United States Attorney Margaret B. Honrath.

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Gulfport, Miss. – Randall Galloway, 31, of Pass Christian, Mississippi, was sentenced yesterday by U.S. District Judge Sul Ozerden to serve 294 months in federal prison, followed by 5 years of supervised release, for possession with intent to distribute methamphetamine, announced U.S. Attorney Mike Hurst and Assistant Special Agent in Charge Derryle Smith with the Drug Enforcement Administration (DEA). Galloway was also ordered to pay a $10,000 fine.

An investigation by the DEA revealed that from 2014 through 2015, Galloway received approximately 2.3 kilograms of methamphetamine via FedEx. Galloway was responsible for distributing the methamphetamine in the Gulfport area. On two occasions, DEA agents utilized a confidential informant to purchase methamphetamine from Galloway. On October 19, 2018, Galloway pled guilty to possession with intent to distribute methamphetamine.

The case was investigated by the Drug Enforcement Administration and prosecuted by Assistant United States Attorney Shundral H. Cole.

ALEXANDRIA, Va. – A federal jury convicted two Florida men yesterday on charges of conspiracy, making false claims on the United States government, and wire fraud.

According to court records and evidence presented at trial, Dan Thomas Lounsbury, Jr., 50, of South Palm Beach, and Andres Lopez-Munoz, 35, are both executives of Tactical Products Group, LLC (TPG), a Florida-based manufacturer and re-seller of various products to military, law enforcement, and private security clients. Lounsbury, Jr., is the founder, owner, and CEO of TPG, while Lopez-Munoz is TPG’s Vice President for Sales and Federal Contracting. In 2012, TPG was selected as a sub-contractor on a contract to provide certain goods, including 10 sets of hard body armor plates, to the United States government.

The Government had requested a specific type of plate, and Lounsbury and Lopez-Munoz both knew that no substitutions were allowed. Furthermore, Lounsbury and Lopez-Munoz both knew that these plates were intended to protect government personnel in the field. Nevertheless, Lounsbury and Lopez-Munoz worked together to procure cheaper substitute plates, none of which were military-tested, and some of which were far outside of their warranty period. To get the United States government to accept and pay for these plates, Lounsbury and Lopez-Munoz had fake labels created and placed on the armor, falsely representing the plates to be the specific type that the government had ordered.

Lounsbury and Lopez-Munoz face a maximum penalty of 20 years in prison when sentenced on May 10. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.

G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Matthew J. DeSarno, Special Agent in Charge, Criminal Division, FBI Washington Field Office, made the announcement after U.S. District Judge Anthony J. Trenga accepted the verdict. Assistant U.S. Attorneys Grace L. Hill and Raj Parekh are prosecuting the case.

A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:18-cr-301.