MACON, Ga.– Attorney General William P. Barr has directed federal law enforcement actions aimed at apprehending and charging the violent criminal agitators who have taken over peaceful protests and are engaging in violations of federal law. The U.S. Attorneys from the Northern, Middle, and Southern Districts of Georgia, along with the FBI are employing the FBI Joint Terrorism Task Force (JTTF) to identify criminal organizers and instigators, coordinating federal resources with state and local partners, and seeking federal prosecutions where applicable.  

“The right to peaceful protest is protected by the First Amendment, but there is no cover for the violent, needless destruction of personal property, and the chaos we have witnessed across the country over the past several days. Let me be clear: anyone who chooses that criminal path will be aggressively prosecuted by our office,” said Charlie Peeler, U.S. Attorney for the Middle District of Georgia. “I want to thank our federal, state, and local law enforcement officers, and Georgia’s National Guard, who are on the ground protecting our lawful right of expression, as well as our property and safety.”

“Peaceful demonstrations throughout the Southern District in recent weeks have been a model for appropriate exercises of citizens’ constitutional right to express their grief and concerns,” said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. “If anyone, whether locals or outside individuals, escalates to unlawful behavior and disrupts our communities, we stand ready to assist local law enforcement with federal resources to safeguard the lives and property of our citizens.”

“The Attorney General has made it clear that those who instigate or carryout violence will be arrested and prosecuted,” said Byung J. “BJay” Pak, U.S. Attorney for the Middle District. “Americans enjoy the right to peacefully assemble and protest. However, when it turns violent and destructive, a line has been crossed.  We are employing every federal asset our districts have to assist our state and local partners as they work to maintain order and public safety.” 

“The FBI is dedicated to protecting our citizens and upholding the Constitution,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The Constitution gives every citizen the right to protest peacefully, but when a few people abuse the rights of the many peaceful protesters by stoking violence and destroying property, we must enforce the law. Federal prosecutions are a tool we will use to assist our state and local law enforcement partners who are on the front lines trying to maintain order.”

Attorney General Barr’s statement is available here: https://www.justice.gov/opa/pr/attorney-general-william-p-barrs-statement-riots-and-domestic-terrorism

Questions can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.

Knoxville, Tenn. – U.S. Attorney J. Douglas Overbey of the Eastern District of Tennessee today announced that the City of East Ridge received $35,403 in Department of Justice grants to respond to the public safety challenges posed by the outbreak of COVID-19.

The grant is available under the Coronavirus Emergency Supplemental Funding program, authorized by the recent stimulus legislation signed by President Trump.  Other jurisdictions can determine if they are eligible for funds and may apply immediately by visiting this website.  The Justice Department is moving quickly, awarding grants on a rolling basis and aiming to have funds available for drawdown as soon as possible after receiving applications.

“As this country continues to fight COVID-19, our office remains committed to deterring, investigating, and prosecuting those who seek to take advantage of the COVID-19 pandemic.  This funding will help many of the communities struggling in these trying times and provide some much-needed relief to our district,” said U.S. Attorney Overbey.  

“The outbreak of COVID-19 and the public health emergency it created are sobering    reminders that even the most routine duties performed by our nation’s public safety officials carry potentially grave risks,” said Katharine T. Sullivan, Principal Deputy Assistant Attorney General for the Office of Justice Programs.  “These funds will provide hard-hit communities with critical resources to help mitigate the impact of this crisis and give added protection to the brave professionals charged with keeping citizens safe.”

The law gives jurisdictions considerable latitude using these funds for dealing with COVID-19.  Potential uses include hiring personnel, paying overtime, purchasing protective equipment, distributing resources to hard-hit areas and addressing inmates’ medical needs.

Agencies eligible for the fiscal year 2019 State and Local Edward Byrne Memorial Justice Assistance Grant Program are candidates for the emergency funding.  Local units of government and tribes will receive direct awards separately according to their jurisdictions’ allocations.

The Office of Justice Programs, directed by Principal Deputy Assistant Attorney General Katharine T. Sullivan, provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, assist victims and enhance the rule of law by strengthening the criminal and juvenile justice systems.  More information about OJP and its components can be found at www.ojp.gov.

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HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that on May 29, 2020, Marlon Valoy De La Rosa, age 21, of Bronx, New York was indicted by a federal grand jury on mail theft, attempted bank fraud, aggravated identity theft, and criminal conspiracy charges.

According to United States Attorney David J. Freed, the indictment alleges that on January 4, 2020 in the borough of Steelton, Dauphin County, Pennsylvania, De La Rosa along with two other individuals, tampered with a U.S. Mail blue collection box using a white rope with an object attached to it to “fish” into the mailbox’s opening.

The indictment also alleges that De La Rosa, along with two other individuals, were in possession of what appeared to be a “washed” check—a check from which the writing had been visibly removed—several debit cards in different names, and a stolen license plate that is believed to have been used for mail fishing.

The case was investigated by the United States Postal Inspection Service and the Steelton Borough Police Department. Assistant U.S. Attorney Ravi Romel Sharma is prosecuting the case.

Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.

A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.

The maximum penalty under federal law for attempted bank fraud is punishable by up to 30 years’ imprisonment. Mail theft and conspiracy are each punishable by up to five years in prison. Aggravated identity theft carries a mandatory two-year sentence consecutive to sentences imposed for other offenses. All three charges may also carry a fine and a term of supervised release following imprisonment. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.

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Portland, Maine: United States Attorney Halsey B. Frank announced that the Department of Justice’s Office of Justice Programs (OJP) has awarded $34,565 to Lincoln County and $58,008 to Penobscot County to address the public safety challenges posed by the outbreak of COVID-19.

OJP awarded the grants as part of $850 million available under the Coronavirus Emergency Supplemental Funding program, authorized by the stimulus legislation President Trump signed in March. This program allows eligible state, local and tribal governments to apply immediately for these critical funds. Since the program’s launch in early April, OJP has awarded almost $695 million to 1,109 state, local and tribal agencies and organizations. Thirteen Maine jurisdictions have received a total of $4.1 million. A list of all awards is available at https://ojp-open.data.socrata.com/stories/s/jitc-swxt.

“Maine public safety professionals continue to rise to the challenge posed by the coronavirus outbreak," said U.S. Attorney Frank. “I am glad that the Department of Justice can provide resources to help our partners meet that challenge.”

The Coronavirus Aid, Relief and Economic Security, or CARES, Act gives jurisdictions considerable latitude in the use of funds for dealing with COVID-19. Potential uses include hiring personnel, paying overtime, purchasing protective equipment and distributing resources to hard-hit areas. Grant recipients may also use funds to help correctional facilities cover costs related to COVID-19, including, but not limited to, sanitation, contagion prevention and measures designed to address the related medical needs of inmates, detainees and correctional personnel. 

OJP, directed by Principal Deputy Assistant Attorney General Katharine T. Sullivan, provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, assist victims and enhance the rule of law by strengthening the criminal and juvenile justice systems. More information is at www.ojp.gov.

FORT WAYNE- Luis Rodriguez-Solorio, 22, of Fort Wayne, Indiana, was charged in a criminal complaint with possessing a firearm as a previously convicted felon and possessing an unregistered machinegun, announced U.S. Attorney Kirsch. 

The affidavit supporting the criminal complaint alleges that on May 28, 2020 police viewed a social media post on an account belonging to Luis Rodriguez-Solorio. The post contained a video showing a man firing a fully automatic pistol. The caption on the video offered the fully automatic Glock pistol for sale. On the evening of May 28, 2020, officers with the Fort Wayne Police Department attempted a traffic stop on a vehicle driven by Rodriguez-Solorio. Rodriguez-Solorio led police on a high-speed pursuit before eventually crashing on the 7400 block of Beaty Avenue in Fort Wayne, Indiana. Rodriguez-Solorio was apprehended and later told police that he had a fully automatic .45 caliber Glock pistol with multiple extended magazines. Rodriguez-Solorio assisted law enforcement in recovering the pistol. Law enforcement confirmed that the pistol is fully automatic and that it is classified as a machinegun under federal law which required that it be registered in the National Firearm Registration and Transfer Record.  A records check revealed that the machinegun was not registered to Rodriguez-Solorio. Additionally, Rodriguez-Solorio is federally prohibited from possessing firearms, as he has previously been convicted of felony burglary of a dwelling.

The United States Attorney’s Office emphasizes that a criminal complaint is merely an allegation and that all persons are presumed innocent until, and unless proven guilty in court.

If convicted, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.

This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Fort Wayne Police Department with assistance from the Indiana State Police and the Auburn Police Department.  This case is being prosecuted by Assistant United States Attorney Sarah E. Nokes.

WHEELING, WEST VIRGINIA – Attorney General William P. Barr has directed federal law enforcement actions aimed at apprehending and charging the violent criminal agitators who have taken over peaceful protests and are engaging in violations of federal law.  The U.S. Attorneys from the Northern and Southern Districts of West Virginia, along with the Federal Bureau of Investigation (FBI) are employing the FBI Joint Terrorism Task Force (JTTF) to identify criminal organizers and instigators, coordinating federal resources with state and local partners, and seeking federal prosecutions where applicable.        

“The death of George Floyd understandably caused outrage and protests.  Our democracy was built upon the exercise of free speech.  I am proud of our West Virginia citizens who chose to congregate in peaceful demonstrations.  Please allow those peaceful protests and constructive dialogue be an example to the rest of the nation.  Some have chosen to act with violence and endanger their fellow citizens and law enforcement.  Such criminal conduct does nothing to further the issues surrounding the death of George Floyd and will not be tolerated by law enforcement or the citizens of our state.  We will continue to monitor the situation, but are prepared to act immediately to enforce the rule of law,” said U.S. Attorney Bill Powell, Northern District of West Virginia.      

“Let me be clear- this is a nation grounded in the right to protest. This nation is also grounded in the rule of law,” said United States Attorney Mike Stuart.  “The right to protest is not a right to loot, riot, commit property destruction or to engage in or incite violence. It is wholly unacceptable and it defies those who protest peacefully.  Peaceful protest can be powerful. Violence, looting and criminal behavior undermines the cause and, if it happens in West Virginia, we will enforce the rule of law.” 

"The FBI is dedicated to upholding the Constitution, including protecting all citizens' rights to peacefully protest," said FBI Pittsburgh Special Agent in Charge Mike Christman. "The FBI respects the rights of individuals to peacefully exercise their First Amendment rights, but when people abuse those rights to invoke violence, federal law will be enforced. We have worked closely with our local and state partners throughout the events of the past few days. The FBI's Joint Terrorism Task Force (JTTF) will continue to coordinate with the U.S. Attorney's offices to address any federal violations."

Attorney General Barr’s statement is available here:  https://www.justice.gov/opa/pr/attorney-general-william-p-barrs-statement-riots-and-domestic-terrorism.

For more information on the FBI Joint Terrorist Task Force, go to https://www.fbi.gov/investigate/terrorism/joint-terrorism-task-forces.
 

WHEELING, WEST VIRGINIA – U.S. Attorney Bill Powell of the Northern District of West Virginia today announced that the city of Wheeling received $145,513 in Department of Justice grants to respond to the public safety challenges posed by the outbreak of COVID-19. 

The grant, awarded to the city of Wheeling is available under the Coronavirus Emergency Supplemental Funding program, authorized by the recent stimulus legislation signed by President Trump. Those jurisdictions can find out if they are eligible and apply immediately by visiting this website. The Justice Department is moving quickly, awarding grants on a rolling basis and aiming to have funds available for drawdown as soon as possible after receiving applications.

“Wheeling is one of the many cities in our district that is impacted by COVID-19. The funding will assist the city with addressing the pandemic comprehensively and effectively,” said Powell.

“The outbreak of COVID-19 and the public health emergency it created are sobering reminders that even the most routine duties performed by our nation’s public safety officials carry potentially grave risks,” said Katharine T. Sullivan, Principal Deputy Assistant Attorney General for the Office of Justice Programs. “These funds will provide hard-hit communities with critical resources to help mitigate the impact of this crisis and give added protection to the brave professionals charged with keeping citizens safe.”

The law gives jurisdictions considerable latitude in the use of these funds for dealing with COVID-19. Potential uses include hiring personnel, paying overtime, purchasing protective equipment, distributing resources to hard-hit areas and addressing inmates’ medical needs. 

Agencies that were eligible for the fiscal year 2019 State and Local Edward Byrne Memorial Justice Assistance Grant Program are candidates for the emergency funding. Local units of government and tribes will receive direct awards separately according to their jurisdictions’ allocations.

The Office of Justice Programs, directed by Principal Deputy Assistant Attorney General Katharine T. Sullivan, provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, assist victims and enhance the rule of law by strengthening the criminal and juvenile justice systems. More information about OJP and its components can be found at www.ojp.gov.
 

CHARLESTON, W.Va. – Attorney General William P. Barr has directed federal law enforcement actions aimed at apprehending and charging the violent criminal agitators who have taken over peaceful protests and are engaging in violations of federal law.  The U.S. Attorneys from the Northern and Southern Districts of West Virginia, along with the Federal Bureau of Investigation (FBI) are employing the FBI Joint Terrorism Task Force (JTTF) to identify criminal organizers and instigators, coordinating federal resources with state and local partners, and seeking federal prosecutions where applicable.        

“The death of George Floyd understandably caused outrage and protests.  Our democracy was built upon the exercise of free speech.  I am proud of our West Virginia citizens who chose to congregate in peaceful demonstrations.  Please allow those peaceful protests and constructive dialogue be an example to the rest of the nation.  Some have chosen to act with violence and endanger their fellow citizens and law enforcement.  Such criminal conduct does nothing to further the issues surrounding the death of George Floyd and will not be tolerated by law enforcement or the citizens of our state.  We will continue to monitor the situation, but are prepared to act immediately to enforce the rule of law,” said U.S. Attorney Bill Powell, Northern District of West Virginia.     

“Let me be clear- this is a nation grounded in the right to protest. This nation is also grounded in the rule of law,” said United States Attorney Mike Stuart.  “The right to protest is not a right to loot, riot, commit property destruction or to engage in or incite violence. It is wholly unacceptable and it defies those who protest peacefully.  Peaceful protest can be powerful. Violence, looting and criminal behavior undermines the cause and, if it happens in West Virginia, we will enforce the rule of law.”

"The FBI is dedicated to upholding the Constitution, including protecting all citizens' rights to peacefully protest," said FBI Pittsburgh Special Agent in Charge Mike Christman. "The FBI respects the rights of individuals to peacefully exercise their First Amendment rights, but when people abuse those rights to invoke violence, federal law will be enforced. We have worked closely with our local and state partners throughout the events of the past few days. The FBI's Joint Terrorism Task Force (JTTF) will continue to coordinate with the U.S. Attorney's offices to address any federal violations."

Attorney General Barr’s statement is available here:  https://www.justice.gov/opa/pr/attorney-general-william-p-barrs-statement-riots-and-domestic-terrorism.

For more information on the FBI Joint Terrorist Task Force, go to https://www.fbi.gov/investigate/terrorism/joint-terrorism-task-forces.

         LOS ANGELES– A former Chinese official who was a fugitive for over five years has been extradited from Sweden to Los Angeles to face federal charges that allege he laundered millions of dollars of stolen money, using some of the funds to purchase two properties in a suburban Los Angeles-area community.

         Jianjun Qiao (喬建軍), 56, arrived at Los Angeles International Airport on Friday after being extradited by Sweden. Qiao was taken into custody by the U.S. Marshals Service and was held in federal custody over the weekend. He is expected to be arraigned this afternoon in United States District Court in downtown Los Angeles.

         A federal grand jury in July 2014 indicted Qiao and his ex-wife, alleging two separate schemes. A superseding indictment against Qiao returned in December 2018 charges him with conspiracy to commit immigration fraud and international transport of stolen money, conspiracy to commit money laundering, and three counts of engaging in financial transactions in criminally derived property.

         As the director of a grain storehouse in Zhoukou City, Henan Province, China, from 1998 to 2011, Qiao allegedly laundered millions of dollars in proceeds related to fraudulent transactions through banks in China, Hong Kong, and Singapore. The indictment further alleges that Qiao then used the stolen funds to, among other things, purchase two properties in Monterey Park.

         An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.

         Qiao’s ex-wife, Shilan Zhao (趙世蘭), 56, of Newcastle, Washington, pleaded guilty in January 2017 to conspiring with her husband to falsely portray themselves as still married and lying about the source of Zhao’s foreign investment, which was required under the EB-5 immigrant investor program to obtain U.S. immigrant visas. Zhao is scheduled to be sentenced in this case on August 17.

         If he were to be convicted of the five charges alleged in the indictment, Qiao would face a statutory maximum sentences of five years in federal prison for the charge of conspiracy to commit international transport of stolen money, 20 years for the money laundering conspiracy charge, and 10 years for each count of engaging in financial transactions in criminally derived property. 

         This case is the product of a joint investigation conducted by Homeland Security Investigations and IRS Criminal Investigation, which received assistance from U.S. Citizenship and Immigration Services.

         The Office of International Affairs of the Justice Department’s Criminal Division provided substantial assistance in extraditing Qiao from Sweden to the United States. The Justice Department extends its gratitude to the government of Sweden for making the extradition possible.

         This case is being prosecuted by Assistant United States Attorneys Roger A. Hsieh of the Major Frauds Section and John J. Kucera of the Asset Forfeiture Section.

BIRMIMGHAM, Ala. – U.S. Attorney Jay E. Town, FBI Special Agent in Charge Johnnie Sharp, Jr. and United States Marshal Marty Keely today release the following statement:

“Those who cause any damage to federal property have committed a federal crime and will be prosecuted in a federal court.  We have zero tolerance for those who incite, organize, encourage, or engage in civil unrest, violence, and destructive behavior anywhere in the Northern District of Alabama.  And make no mistake, we will bring those individuals to justice who do.”

LONDON, Ky. - A Booneville, Kentucky, man, James Everett Smith, 52, was sentenced in federal court on Monday, to 240 months in prison, by U.S. District Judge Robert Wier, for his convictions for to possessing with intent to distribute methamphetamine and possessing a firearm in furtherance of drug trafficking.           

According to his guilty plea agreement, Smith admitted that on September 23, 2018, in Owsley County, law enforcement responded to a shots-fired complaint. After searching Smith’s residence, they discovered six firearms, various ammunition, over 685 grams of methamphetamine, $1,170 in cash, digital scales, and other controlled substances. The firearms and methamphetamine were located next to each other. Smith further admitted that he knew he was a convicted felon and was prohibited from owning a firearm.

Smith pleaded guilty in February 2020.

Under federal law, Smith must serve 85 percent of his prison sentence and will be under the supervision of the U.S. Probation Office for 10 years.

Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Shawn Morrow, Special Agent in Charge, ATF, Louisville Filed Division; and Commissioner Rodney Brewer, Kentucky State Police, jointly made the announcement. 

The investigation was directed by the ATF and KSP. The United States was represented by Assistant U.S. Attorney Jason Parman.

This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Eastern District of Kentucky, U.S. Attorney Robert Duncan Jr., coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.

This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. Click here for more information about Project Guardian.

The year 2020 marks the 150th anniversary of the Department of Justice.  Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.

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             ALBUQUERQUE, N.M. – Quincy D’own Nash, 42, of Hobbs, New Mexico was sentenced in federal court in Albuquerque on May 27 to eight years in prison for possession with intent to distribute methamphetamine, possession of a firearm in furtherance of a drug trafficking crime and being a felon in possession of a firearm.

             Nash pleaded guilty to these offenses on Nov. 5, 2019. In Nash’s plea agreement, he admitted committing these offenses in Lea County, New Mexico on Sept. 17, 2016. Nash was pulled over for a traffic violation, and then investigated for driving under the influence. After Nash was arrested, officers found a bag containing 28 grams of methamphetamine in his pant pocket, and a loaded firearm under the driver seat of the vehicle.  Nash intended to distribute the methamphetamine.  He knew he could not possess the firearm lawfully because of prior felony convictions. 

            The Drug Enforcement Administration and Hobbs Police Department investigated the case. Assistant U.S. Attorney Mark A. Saltman prosecuted the case.

FRANKFORT, Ky. - A former United States Postal Service (USPS) employee from Eminence, Kentucky, Christina Victoria Gregory, 33, was sentenced in federal court on Monday, to three years of probation, by U.S. District Judge Gregory VanTatenhove, after her conviction for embezzling postal funds.           

According to her guilty plea agreement, Gregory admitted that, from April through May of 2019, she was employed as a Postmaster Relief; and during that time, she knowingly embezzled funds from her USPS cash and stamp drawer and unlawfully converted USPS money order funds to pay for her own personal expenses. She intentionally converted and used $2,851.64 of USPS funds. 

Gregory pleaded guilty in January 2020.

In addition to three years of probation, Gregory was also ordered to pay $2,710.03 in restitution.

Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky, and pecial Agent in Charge Kenneth Cleevely, U.S. Postal Service – Office of Inspector General (USPS-OIG), jointly made the announcement. 

The investigation was directed by USPS-OIG. The United States was represented by Assistant U.S. Attorney Tashena Fannin.

The year 2020 marks the 150th anniversary of the Department of Justice.  Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.

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CLARKSBURG, WEST VIRGINIA – Timothy Allen Crowe, of Bridgeport, West Virginia, was sentenced today to two years’ probation, with the first 12 months on home confinement, for a firearms charge, U.S. Attorney Bill Powell announced.

Crowe, age 57, pled guilty to one count of “False Statement in Connection with the Acquisition of a Firearm” in February 2020. Crowe, having been previously convicted of domestic battery, admitted to lying about his previous charges when trying to purchase a 9mm pistol in April 2018 in Marion County.
 
This case was brought as part of Project Safe Neighborhoods (PSN). Project Safe Neighborhoods is 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.

Assistant U.S. Attorney Stephen D. Warner prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated.

Senior U.S. District Judge Irene M. Keeley presided.

Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that BRUCE BAGLEY pled guilty today before U.S. District Judge Jed S. Rakoff to two counts of money laundering.  BAGLEY used bank accounts in his name and in the name of a company he created in Florida to launder over $2 million in proceeds of a Venezuelan bribery and corruption scheme into the United States. 

U.S. Attorney Geoffrey S. Berman said:  “Bruce Bagley, a college professor and author, went from writing the book on crime – literally writing a book on drug trafficking and organized crime – to committing crimes.  Professor Bagley admitted today to laundering money for corrupt foreign nationals – the proceeds of bribery and corruption, stolen from the citizens of Venezuela.  Bagley now faces the possibility of a long tenure in prison.”

According to the Indictment and other filings in the case:

In or about November 2016, BRUCE BAGLEY, a professor of international studies with publication credits including the book Drug Trafficking, Organized Crime, and Violence in the Americas Today, opened a bank account (“Account-1”) on behalf of a company (“Company-1”) that BAGLEY owned and controlled.  Between in or about November 2016 and in or about November 2017, Account-1 had minimal activity.  In or about November 2017, Account-1 began receiving monthly deposits of hundreds of thousands of dollars from bank accounts located in Switzerland and the United Arab Emirates (the “Overseas Accounts”).  Each month, BAGLEY would receive a deposit of approximately $200,000 from one of the Overseas Accounts into Account-1.  Thereafter, he would withdraw approximately 90 percent of the funds in the form of a cashier’s check, payable to an account held by another individual (“Individual-1”).  BAGLEY would send the remainder of the funds to his personal account.  Between in or about November 2017 and in or about October 2018, Account-1 received approximately $2.5 million from the Overseas Accounts. 

The Overseas Accounts belonged to a Colombian individual (“Individual-2”).  In or about December 2018, Individual-1 had a conversation with BAGLEY regarding the fact that BAGLEY was moving Individual-2’s funds into the United States and that the funds represented the proceeds of foreign bribery and embezzlement stolen from the Venezuelan people.  Nevertheless, in or about December 2018, BAGLEY created a new bank account (“Account-2”) in order to transfer additional money belonging to Individual-2.  BAGLEY continued to receive hundreds of thousands of dollars from the Overseas Accounts after opening Account-2.  BAGLEY transferred the majority of these funds to Individual-1 but retained a commission for his services.

*                      *                     *

BAGLEY, 73, of Coral Gables, Florida, pled guilty to two counts of money laundering, each of which carries a maximum sentence of 20 years in prison.  The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.

BAGLEY is scheduled to be sentenced by Judge Rakoff on October 1, 2020, at 4:00 p.m.

Mr. Berman praised the work the FBI.  

The prosecution of this case is being handled by the Office’s Money Laundering and Transnational Criminal Enterprises Unit.  Assistant United States Attorneys Thane Rehn and Sheb Swett are in charge of the prosecution.

An Illinois man, responsible for distributing over 1,000 grams of heroin, was sentenced today to 127 months in federal prison. 

Jarel Shawn Williams, age 23, from Chicago, Illinois, received the prison sentence after a December 10, 2019 guilty plea to one count of conspiracy to distribute at least 1,000 grams of heroin and five counts of distribution of heroin.  Williams is the 22^nd person to be sentenced to prison over the last 20 months for his role in a large-scale heroin ring.

The investigation into the heroin ring began in 2017 when investigators with the Cedar Rapids Police Department, Iowa Division of Narcotics Enforcement, and the Drug Enforcement Administration became aware of a large scale heroin trafficking network operating in the Cedar Rapids area.  The heroin was brought in from outside of Iowa and sold to mid-level dealers and customers who in the Cedar Rapids area.  Investigators conducted dozens of interviews of local dealers, learning the structure of the organization.  However, traditional investigative techniques alone were not enough to fully understand and target the heroin trafficking that was pervasive in Cedar Rapids. 

In order to penetrate the organization, investigators eventually used eleven Title III wiretap investigations targeting four prolific heroin distributors in the area.  Investigators intercepted hundreds of calls between dealers and customers.  The wiretap investigation revealed that these phones were used solely for arranging heroin transactions and that dealers were making dozens of heroin deals daily.  One such phone was dubbed the “Ferrari” phone.  The “Ferrari” phone was passed

between various members of the group, including Jarel Shawn Williams.  Members would answer the phone and arrange deals, sometimes making the delivery of heroin themselves.  Other times, other members of the group were sent to make the delivery.  On average, heroin users were buying a quarter gram of heroin at a time for around $40.  Transactions occurred all over Cedar Rapids, including at mall and grocery store parking lots, and near gas stations, truck stops, and parks.  By contacting the “Ferrari” phone, investigators were able to conduct over a dozen undercover purchases of heroin from members of the group.

Members of the “Ferrari” group also travelled to Chicago to acquire large quantities of heroin.  The heroin was then brought back to Cedar Rapids and distributed.  In July 2017, law enforcement stopped a vehicle travelling from Chicago to Cedar Rapids.  Two members of the group were in the vehicle.  In the vehicle, officers located over 350 grams of heroin on its way to Cedar Rapids to be distributed. 

Some members of the group carried firearms to protect themselves.  In total, investigators seized over $6,500 United States Currency, one pound of heroin, and six handguns.  At least two people overdosed, but survived, after consuming heroin distributed by a member or members of the group.

Ultimately, the investigation resulted in charges against 33 individuals.  This included a handful of indictments against persons who were intercepted purchasing heroin from the group and who utilized cellular phones to arrange heroin transactions. 

In addition to Jarel Shawn Williams, the following individuals have been be sentenced for their role in distributing heroin:

1. Dion Clayborn, age 41, from Cedar Rapids, was sentenced to 144 months’ imprisonment on January 25, 2019, following a guilty plea to possession with intent to distribute a controlled substance near a protected location.  Clayborn must also serve a 6-year term of supervised release after the prison term.

2. Andrew Fletcher, age 35, from Cedar Rapids, was sentenced to 61 days’ imprisonment on March 18, 2019, following a guilty plea to conspiracy to distribute heroin.  Fletcher must also serve a 3-year term of supervised release.

3. Dino Harrington, age 34, from Cedar Rapids, was sentenced to 188 months’ imprisonment on November 19, 2018, following a guilty plea to distribution of heroin within 1,000 feet of a truck stop after a prior drug felony conviction.  Harrington must also serve a 6-year term of supervised release.

4. Tiffany Youngblood, age 42, from Cedar Rapids, was sentenced to 41 months’ imprisonment on November 19, 2018, following a guilty plea to possession with intent to distribute a controlled substance, specifically heroin and fentanyl. Youngblood must also serve a 3-year term of supervised release.

5. Garland Lightfoot, age 29, from Chicago, was sentenced to 188 months’ imprisonment on November 19, 2018, following a guilty plea to distribution and aiding and abetting the distribution of heroin after having been previously convicted of a felony drug offense.  Lightfoot must also serve a 6-year term of supervised release.

6. Rolando Brown, age 31, from Chicago, was sentenced to 120 months’ imprisonment on November 19, 2018, following a guilty plea to conspiracy to distribute 100 grams or more within a protected location after having previously been convicted of a felony drug offense.  Brown must also serve a 8-year term of supervised release.

7. Julius Sullivan, age 27, from Cedar Rapids, was sentenced to 30 months’ imprisonment on April 3, 2019, following a guilty plea to distribution of a controlled substance within a protected location.  Sullivan must also serve a 6-year term of supervised release.

8. Joseph Mercil, age 34, from Cedar Rapids, was sentenced to 164 days’ imprisonment on February 6, 2019, following a guilty plea to possession of a controlled substance after prior drug convictions.  Mercil must also serve a 1-year term of supervised release.

9. Eddy Watt, age 30, from Cedar Rapids, was sentenced to 64 months’ imprisonment on October 17, 2018, following a guilty plea to aiding and abetting the distribution of heroin.  Watt must also serve a 3-year term of supervised release. 

10. Jason Bates, age 44, from Urbana, was sentenced to 300 months’ imprisonment on August 22, 2019, following a guilty plea to possession with intent to distribute a controlled substance within a protected location, possession of a firearm by a felon, and distribution of heroin resulting in serious bodily injury.  Bates must also serve a 6-year term of supervised release.

11. Patrick Richmond, age 36, from Cedar Rapids, was sentenced to 78 months’ imprisonment on December 18, 2019, following a guilty plea to conspiracy to distribute heroin, cyclopropyl fentanyl, methoxyacetyl fentanyl, and fentanyl near a protected location.  Richmond must also serve a 6-year term of supervised release.

12. Scott Krumbholz, age 38, from Cedar Rapids, was sentenced to 14 months’ imprisonment on April 2, 2019, following a guilty plea to conspiracy to distribute heroin near a protected location.  Krumbholz must also serve a 6-year term of supervised release.

13. Andrew Bobenhouse, age 35, from Cedar Rapids, was sentenced to 114 days’ imprisonment on April 2, 2019, following a guilty plea to possession with intent to distribute heroin.  Bobenhouse must also serve a 3-year term of supervised release. 

14. Walter Malano Collins Murray, Jr., age 19, from Cedar Rapids, Iowa, was sentenced to 37 months’ imprisonment on December 30, 2019, following a guilty plea to conspiracy to distribute at least 100 grams of heroin. 

15. Cortez Nelson, age 30, from Chicago, Illinois, was sentenced to 151 months’ imprisonment on May 20, 2020, following a guilty plea to conspiracy to distribute at least 1,000 grams of heroin.  

16. Dewon Earl Meeks, age 30, from Cedar Rapids, Iowa, was sentenced to 71 months’ imprisonment on May 20, 2020, following a guilty plea to conspiracy to distribute at least 100 grams of heroin. 

17. Anthony Ricks, age 31, from Chicago, pleaded guilty on January 16, 2020, to conspiracy to distribute at least 100 grams of heroin.  Ricks will be sentenced on July 10, 2020, at 11:00 a.m.    
     

Sean Jarel Williams, age 30, from Chicago, Illinois, pleaded guilty on January 21, 2020, to conspiracy to distribute at least 1,000 grams of heroin.  Williams’ will be sentenced on August 28, 2020, at 9:30 a.m.  Devontae Horton, age 25, from Cedar Rapids, Iowa, was found guilty of conspiracy to distribute 100 grams or more of heroin, after a February 10, 2020, jury trial.  Horton’s sentencing date has not yet been set.

“Deadly opioids continue to take their toll on our communities,” said United States Attorney Peter Deegan.  “Thanks to the hard work of the Cedar Rapids Police Department and the Drug Enforcement Administration, with the assistance of many other law enforcement partners, a large-scale heroin trafficking organization has been taken off the streets.  We will continue to work together to send the sellers of this poison to prison.”

“The collaborative effort between local, state and federal law enforcement agencies involved in this operation is exactly what was needed to dismantle this well-organized and far-reaching Drug Trafficking Organization,” DEA Assistant Special Agent in Charge Darin Thimmesch said. “The investigators from the various teams involved relied on one another through each step of this three year investigation and together, were able to remove dangerous criminals and illicit drugs from the streets of our communities.  At DEA, we value our law enforcement partnerships and will continue to use this model to guide future missions.”

Lieutenant Robert Collins, Narcotics Division commander, said, “The Cedar Rapids Police Department, along with the Iowa Division of Narcotics Enforcement, and the Cedar Rapids Resident Office of the Drug Enforcement Administration began an investigation in July 2017 of several heroin sources in Cedar Rapids.  Narcotics investigators learned that a large number of low-level organizational members were Cedar Rapids residents and those selling heroin were from Chicago, Illinois.  Investigators were able to gather intelligence information that helped investigators identify organizational members and determine their respective roles in illegal narcotics trafficking.  With the cooperation of the United States Attorney for the Northern District of Iowa, and investigators from the Cedar Rapids Police Department, Cedar Rapids DEA Task Force, Marion Police Department, Linn County Sheriff, University of Iowa Police, North Liberty Police Department, Coralville Police Department, and other law enforcement partners throughout Eastern Iowa, evidence was presented to a federal grand jury that resulted in indictments for over 20 individuals.  Seizures in the case included $6,500 in U.S. currency, one pound of heroin, and six handguns.”

Cedar Rapids Police Chief Wayne Jerman said, “Local law enforcement has a solid relationship with the United States Attorney’s Office for the Northern District of Iowa.  The United States Attorney’s Office has been completely supportive and provided assistance to investigators in efforts to combat the burgeoning heroin trafficking that was occurring in Cedar Rapids and throughout Eastern Iowa.  It is a key collaborative effort that has produced results and has made our community safer.  Drug trafficking is not a victimless crime, but rather poisons the community and those with substance abuse issues.  Further, illegal drug trafficking often results in other dangerous and violent crimes.  We have committed, dedicated narcotics investigators whose work is making a critical difference in reducing criminal activity in our community.”

All defendants that have been sentenced were sentenced by United States District Court Chief Judge Leonard T. Strand, District Court Judge Linda R. Reade, or District Court Judge C.J. Williams. 

The case was prosecuted by Assistant United States Attorneys Dan Chatham, Ashley Corkery, Justin Lightfoot, and Lisa Williams, and was investigated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department of Justice through a cooperative effort of the Drug Enforcement Administration Cedar Rapids Resident Office, the Iowa Division of Narcotics Enforcement, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Cedar Rapids Police Department, Marion Police Department, University of Iowa Police, North Liberty Police, Coralville Police, the Linn County Sheriff’s Office, and the 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 18-CR-00051, 19-CR-000002, 18-CR-00028, 18-CR-00042, 18-CR-00080, 18-CR-00097, 18-CR-00043, 18-CR-00052, 18-CR-00095, and 19-CR-45.  Follow us on Twitter @USAO_NDIA.

PHILADELPHIA – In the wake of the violence and looting that took place in Philadelphia and surrounding counties over the past weekend, United States Attorney William M. McSwain participated in a press conference today to address the role that the United States Attorney’s Office for the Eastern District of Pennsylvania will play in restoring order and enforcing the rule of law in the District.  Other speakers at the press conference were Pat Toomey, United States Senator, Pennsylvania; John McNesby, President, Fraternal Order of Police Lodge #5; Farah Jimenez, President and CEO, Philadelphia Education Fund; Reverend Reginald C. Johnson, Special Assistant to the CEO, People for People, Inc.; and Martina White, Member of the Pennsylvania House of Representatives.  Below are U.S. Attorney McSwain’s remarks as prepared for delivery.

*****

Thank you, Senator Toomey. 

We are united as a nation in our disgust over what happened to George Floyd.  Nobody of good will can watch the video of his encounter with the Minneapolis police and not feel shock and anger.  The feeling is universal, among both civilians and law enforcement alike.  

Accountability for Mr. Floyd’s death must be addressed, and is being addressed, through our criminal justice system, both at the state and federal levels.  That system is working and moving quickly.  Initial charges have already been filed.  Justice will be served.

The right of the people peaceably to assemble is one of our most cherished Constitutional rights.  Many of this weekend’s protestors in Philadelphia exercised that right in a responsible manner.  Others did not.  Instead, they engaged in senseless violence – rioting, looting, burning.

There is no excuse for that kind of lawlessness.  If you engage in that type of criminal behavior under the guise of “protest,” you disgrace the Constitution and you disgrace yourself.  And you dishonor the memory of George Floyd. 

In the face of extreme provocation this past weekend, with various physical objects and obscenities being hurled at them, the brave men and women of the Philadelphia Police Department did their job, and exercised admirable courage and restraint while doing so.  Operating under extremely dangerous conditions, they did their very best to keep the City safe – and I applaud and thank them for that.

But restraint only goes so far.  It is time to squarely confront any further violence and stop it in its tracks.  Any continued violence, destruction of property and theft endangers the lives and livelihoods of others, and interferes with the rights of peaceful protestors, as well as the rights of all other citizens.  It also undercuts the work that needs to be done to address legitimate grievances.     

It is the responsibility of state and local leaders to ensure that adequate law enforcement resources are deployed on the streets to reestablish law and order.  Federal law enforcement actions will be directed at apprehending and charging the violent agitators who have hijacked peaceful protest and are engaged in violations of federal law. 

Some of those violations could include: arson, inciting a riot, engaging in civil disorder, destruction of motor vehicles, destruction of federal property, assaulting a federal officer or federal employee, and various firearms charges.

I implore any protestors in Philadelphia to behave peacefully.  I also issue this warning: if you engage in violence and destruction and we have federal jurisdiction over your crime, you will be prosecuted in federal court to the fullest extent of the law.  That is a promise.

Despite the looting and violence that we witnessed this weekend, Philadelphia is not a community of criminals.  We are a City of honest, hard-working, and law-abiding people.  We are members of community organizations, residents raising families, and people who serve the public good in a myriad of ways.  On Sunday morning, after a night of destruction, people from all walks of life voluntarily gathered to clean our city streets, washing graffiti off of buildings, picking up debris, and helping store owners board up their broken windows.  That is the Philadelphia that we need to come together to protect – one that respects our Constitution and the rule of law – and I am proud to be a part of it.  Thank you.

The Mississippi Department of Human Services (MDHS) has agreed to pay the United States $5,000,000 to resolve allegations that it violated the False Claims Act in its administration of the U.S. Department of Agriculture’s (USDA) Supplemental Nutrition Assistance Program (SNAP), the Department of Justice announced today. Until 2008, SNAP was known as the Food Stamp Program.

This is the seventh settlement in this matter, and the sixth settlement with a state agency for manipulating its SNAP quality control findings. The United States has reached previous settlements with state agencies in Virginia, Wisconsin, Texas, Louisiana, and Alaska, as well as with Osnes Consulting and its owner, Julie Osnes. Including this settlement, the United States has now recovered over $41 million in connection with this investigation.

“SNAP is an important vehicle for helping families in need,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “This settlement is another example of the Department’s commitment to protecting taxpayer funds and the vital programs that they support.”

“Although it is appalling that these actions occurred within a state agency entrusted with assisting vulnerable and needy residents, I am heartened that MDHS has resolved its liability and cooperated with our investigation,” said William D. Hyslop, U.S. Attorney for the Eastern District of Washington. “Together with our partners in the Justice Department’s Civil Division and the USDA, we will continue to investigate and hold accountable those who misuse and wrongfully obtain SNAP funding.”

“We appreciate the commitment and investigative assistance provided by our partners at the Department of Justice’s Civil Division and the U.S. Attorney’s Office throughout this multi-state investigation,” said Special Agent in Charge Bethanne M. Dinkins of the USDA Office of Inspector General (OIG). “We also wish to note the technical assistance provided by our colleagues in the Office of Audit at OIG. During the investigation, conducted by OIG’s Northeast Regional Office, we worked together to address the concerns of employees of multiple states and others who alleged that the integrity of the SNAP quality control process was weakened by third-party consultants. These concerned individuals reported that cases were not being treated in a consistent manner, and that certain advice from consultants resulted in identified errors being diminished rather than used to improve eligibility determinations. The settlements reached to date send a strong message regarding the Government’s commitment to work across agency lines to protect the integrity of SNAP.”

Under SNAP, USDA provides eligible low-income individuals and families with financial assistance to buy nutritious food. Since 2010, SNAP has served on average more than 45 million Americans per month, and provided more than $71 billion annually.

Although the federal government funds SNAP benefits, it relies on the states to determine whether applicants are eligible for benefits, to administer those benefits, and to perform quality control to ensure that eligibility decisions are accurate. The USDA requires that the states’ quality control processes ensure that benefits are correctly awarded, are free from bias, and accurately report states’ error rates in making eligibility decisions.

The USDA reimburses states for a portion of their administrative expenses in administering SNAP, including expenses for providing quality control. It also pays performance bonuses to states that report the lowest and the most improved error rates each year, and can impose monetary sanctions on states with high error rates that do not show improvement.

The settlement resolves allegations that beginning in 2012, MDHS contracted with a consultant known as Julie Osnes Consulting, LLC (Osnes Consulting) to provide advice and recommendations designed to lower its SNAP quality control error rate. The United States alleged that Osnes Consulting’s recommendations, as implemented by MDHS, injected bias into MDHS’s quality control process and resulted in MDHS submitting false quality control data and information to USDA, for which it received undeserved performance bonuses for fiscal years 2012 and 2013.

The settlement was the result of a joint nationwide investigation conducted by the USDA OIG, the U.S. Attorney’s Office for the Eastern District of Washington, and the Department of Justice’s Civil Division, Commercial Litigation Branch. The investigation arose out of a nationwide audit of SNAP QC processes by the USDA-OIG. The investigation for the U.S. Attorney’s Office for the Eastern District of Washington was handled by Assistant United States Attorneys Dan Fruchter and Tyler H.L. Tornabene. The claims resolved by the civil settlement are allegations only and there has been no determination of liability.

NEWARK, N.J. – U.S. Attorney Craig Carpenito today announced that the state of New Jersey has received $16.6 million in Department of Justice grants to respond to the challenges posed by the outbreak of COVID-19.

The grants, awarded to the New Jersey Department of Law and Public Safety and more than 40 county and local entities, are available under the Coronavirus Emergency Supplemental Funding program, authorized by the recent stimulus legislation signed by President Trump.

“The coronavirus pandemic has put tremendous stress on all of our normal government functions,” U.S. Attorney Carpenito said. “The additional funding made available by this program will provide much-needed resources to the men and women in New Jersey who place themselves at risk to protect all of us.”

“The outbreak of COVID-19 and the public health emergency it created are sobering    reminders that even the most routine duties performed by our nation’s public safety officials carry potentially grave risks,” Katharine T. Sullivan, Principal Deputy Assistant Attorney General for the Office of Justice Programs, said. “These funds will provide hard-hit communities with critical resources to help mitigate the impact of this crisis and give added protection to the brave professionals charged with keeping citizens safe.”

The New Jersey Department of Law and Public Safety was awarded $11.8 million. The cities of Newark ($922,000), Camden ($527,000) and Jersey City ($465,000) were among the other recipients. In all, New Jersey received 42 grants totaling more than $16.6 million.

The law gives jurisdictions considerable latitude in the use of these funds for dealing with COVID-19. Potential uses include hiring personnel, paying overtime, purchasing protective equipment and distributing resources to hard-hit areas. Funds may also be used to help correctional facilities cover costs related to COVID-19, including, but not limited to, sanitation, contagion prevention and measures designed to address the related medical needs of inmates, detainees and correctional personnel.

Agencies that were eligible for the fiscal year 2019 State and Local Edward Byrne Memorial Justice Assistance Grant Program are candidates for the emergency funding. Local units of government and tribes will receive direct awards separately according to their jurisdictions’ allocations. For a list of all awards thus far, visit the Coronavirus Emergency Supplemental Funding program webpage.

The Office of Justice Programs, directed by Principal Deputy Assistant Attorney General Katharine T. Sullivan, provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, assist victims and enhance the rule of law by strengthening the criminal and juvenile justice systems. More information about OJP and its components can be found at www.ojp.gov.