The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty:

Appearing in Great Falls before U.S. Magistrate Judge John T. Johnston and pleading not guilty on July 27 was:

Danielle Marie Marceau, aka Danielle Marie ComesAtNight, 34, on charges of second degree murder. If convicted of the most serious crime, Marceau faces a maximum life in prison, a $250,000 fine and five years of supervised release. Marceau was detained pending further proceedings. The FBI, Blackfeet Law Enforcement Services and Great Falls Police Department investigated the case. Pacer case reference. 20-51.

Appearing on July 28 was:

Carlyle Ray Wells, 25, of Great Falls, on charges of theft from a firearms licensee, possession of stolen gun or ammunition and unlawful drug user in possession of a firearm. If convicted of the most serious crime, Wells faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Wells was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives, FBI and Great Falls Police Department investigated the case. Pacer case reference. 20-46.

Chance Justin Redstone, aka CJ Redstone, 35, of Wolf Point, on charges of conspiracy to possess with intent to distribute methamphetamine, possession with intent to distribute methamphetamine and distribution of methamphetamine. If convicted of the most serious crime, Redstone faces a minimum mandatory five years to 40 years in prison, a $5 million fine and four years of supervised release. The FBI and Fort Peck Criminal Investigation investigated the case. Pacer case reference. 20-39.

Maynard Joseph White Bear, 67, of Fort Kipp, on charges of involuntary manslaughter. If convicted of the most serious crime, White Bear faces a maximum eight years in prison, a $250,000 fine and three years of supervised release. White Bear was released pending further proceedings. The FBI and Fort Peck Criminal Investigation investigated the case. Pacer case reference. 20-42.

Appearing in Missoula before U.S. Magistrate Judge Kathleen L. DeSoto and pleading not guilty on July 30 was:

Matthew Anthony Marshall, 49, of Whitefish, on charges of wire fraud, money laundering and tax evasion. If convicted of the most serious crime, Marshall faces a maximum 20 years in prison, a $250,000 fine and three years of supervised release. Marshall was released pending further proceedings. The FBI and IRS investigated the case. Pacer case reference. 20-32.

If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system.

To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.

 XXX

PHILADELPHIA – On July 21, 2020, United States Attorney William M. McSwain delivered testimony at a hearing before the Presidential Commission on Law Enforcement and Administration of Justice. He spoke on a panel addressing Respect for Law Enforcement and the Rule of Law, and addressed the negative impact that certain policies, enacted by some local district attorneys, are having on public safety, especially in large cities where violent crime is on the rise. These self-proclaimed “progressive prosecutors” are promoting a culture of disrespect for law enforcement and the rule of law, which has had the predictable effect of jeopardizing public safety. U.S. Attorney McSwain concluded that, in order to restore the public’s trust in law enforcement and ensure equal justice under the law, U.S. Attorneys have a responsibility to serve as a counter-weight to radical “reform” policies that are causing far more harm than good.

Remarks as Prepared for Delivery

Introduction

Thank you, Chairman Keith and thank you to the Commission for the important work you are doing on behalf of the Department.  It is an honor to be here today to provide testimony on the importance of respect for law enforcement and the rule of law in our country.

I have served as the United States Attorney for the Eastern District of Pennsylvania since April 2018, and my Office is one of the nation’s largest U.S. Attorney’s Offices.  We serve a population of over five million citizens and cover a geographic area of roughly 4,700 miles across nine counties in southeastern Pennsylvania – Berks, Bucks, Chester, Delaware, Lancaster, Lehigh, Montgomery, Northampton, and Philadelphia counties.  In addition to the suburban and rural areas within the District’s borders, we serve five of Pennsylvania’s eight major cities: Philadelphia, Allentown, Reading, Bethlehem, and Lancaster.  In our District, the criminal behavior that we encounter runs the gamut, with a mix of issues to confront: big-city problems, small-town problems, and everything in between.  

Despite these differences, every law-abiding citizen wants the same thing – to live in a community that is safe for themselves and their families.  This is why this Commission’s work is so critical: the study of crime, including its causal factors, is essential to reduce its prevalence. 

President Trump’s Executive Order establishing this Commission directed it to study “important current issues facing law enforcement and the criminal justice system.”[1]  One of the specific subjects identified for study was “refusals by the state and local prosecutors to enforce laws or prosecute categories of crime.”[2]

Which brings me to the topic of this hearing and my testimony today.  Though respect for law enforcement and the rule of law are broad concepts, my testimony today will primarily focus on one important and troubling recent development – that is, the undeniable fact that the rule of law and law enforcement officers are currently under attack in many parts of our nation.  In many cities and counties across the country, so-called progressive prosecutors have been elected on an agenda of sending fewer people to jail, by whatever means necessary, and with little regard for the public safety consequences.[3]

Philadelphia is, in many ways, ground zero for this experiment.  But there are many other cities across the United States where the top local prosecutors are pushing progressive policies.[4] And in many of these cities, prosecutors are decriminalizing certain conduct, encouraging overly lenient plea bargaining,[5] firing career prosecutors who might not share their viewpoints,[6] and shifting significant resources away from prosecution and into conviction integrity units,[7] among other significant policy changes.  

My testimony today focuses on the work we have done in the Eastern District of Pennsylvania to serve as a counter-weight to some of the worst excesses of this movement.  In the two-plus years I have served as U.S. Attorney, I have worked to restore a culture of respect for law enforcement and to uphold the rule of law and ensure that it is enforced in a consistent, impartial manner.  I believe that the steps we have taken in the Eastern District of Pennsylvania can serve as a model for other federal districts that are facing the predictable rise in crime and chaos that results from radical “reform” policies.

The Public Safety Crisis in Philadelphia and Its Root Causes

There can be no doubt that there is a public safety crisis in Philadelphia; one need only look to the staggering rise in serious violent crime in the past two-plus years as proof.  The timing coincides with a decline in the number of local cases charged in several key categories and recently, a decline in the homicide clearance rate.[8]    

In 2019, Philadelphia recorded its highest number of homicides since 2007, and more people were shot in Philadelphia in 2019 than in any other year since 2010, according to Philadelphia Police statistics.  The 2020 numbers are on track to be even worse.  As of July 12, 2020, there have been 227 homicides, a 28% increase from the same date in 2019, and 1,578 shooting incidents, a 55% increase from the same date in 2019.  On Sunday, July 6, 2020, a staggering 23 people were shot across Philadelphia – the most in a single day in years.  Of these victims, six of them died, including a six-year old boy.

 These statistics undoubtedly establish the problem.  And in Philadelphia and other large cities where murders and shootings continue to rise at an alarming rate,[9] one of the root causes is that criminals believe that there will be no consequences for their actions. 

 There are two main reasons why criminals think there are no consequences.

First, the local criminal justice system does not hold them fully accountable.  Criminals bank on the fact that certain progressive policies – things like requiring assistant district attorneys to decline charges and to offer lenient plea deals in a broad swath of cases – will give them some breathing room to ply their trade.

Second, criminals believe they can commit crime without facing the consequences because the community is too often told that police are the enemy, which discourages witnesses from cooperating with the police and results in crimes remaining unsolved.  This has grave consequences for the community.  Such mistrust also results in deadly assaults on police officers – of which unfortunately, Philadelphia has had its fair share recently. 

The culture of disrespect for law enforcement was on full display in front of a national audience this past August when Maurice Hill, a convicted felon with a long rap sheet, opened fire on Philadelphia police officers as they attempted to execute a search warrant.  This confrontation left six officers wounded and a neighborhood in North Philadelphia traumatized.  It is a miracle that every officer survived this attack.[10]

In March of this year, the Philadelphia police were not as fortunate.  On March 13, 2020, Philadelphia Police Sergeant and SWAT member James O’Connor was gunned down while trying to arrest Hassan Elliot, a known affiliate of a dangerous drug gang who was wanted by local authorities for murder and multiple other offenses.[11]

And just last month, 27 Philadelphia Police Officers were injured after a period of violence, rioting, and looting that swept across several sections of Philadelphia.  What began on May 30, 2020 as peaceful protests concerning the death of George Floyd turned violent, and over the course of several days, officers sustained injuries ranging from chemical burns, head injuries, and broken bones.[12] One officer was hospitalized after suffering severe damage to his upper body – a crushed shoulder and broken ribs – when a woman drove over him when protesters turned violent during a demonstration that look place at Seventh and Chestnut Streets – steps away from Independence Hall and my Office.

As tensions continue to mount between the police and the public, police officers remain on their heels, which gives violent criminals the room to operate that they seek.  Criminals literally think they can get away with murder, shootings, looting, and rioting. And in many cases, they are.

EDPA’s Response to the Rise in Violent Crime and Culture of Lawlessness

The U.S. Attorney’s Office for the Eastern District of Pennsylvania is committed to stemming the wave of violent crime that is occurring in parts of our District. This section highlights the ways in which my Office has worked to promote the rule of law and respect for law enforcement.

            1.  Increase Focus on Violent Crime Prosecutions

The first strategy my Office has employed is to increase our violent crime prosecutions District-wide.  For example, in Fiscal Year 2019, our Violent Crime Unit charged the largest number of cases in all of the Criminal Division Units in my Office.  We charged 208 violent crime cases, as compared to 136 the year before, which represents a 53% increase.

And in Philadelphia’s most dangerous neighborhoods – police districts that are designated as “Project Safe Neighborhood” hot spots – federal prosecutions continue to rise.  Project Safe Neighborhood (PSN) is a collaborative effort by federal, state, and local law enforcement agencies and prosecutors to deter and punish gang and gun violence.  The Department of Justice’s PSN Strategy requires each District to identify PSN “target areas” with the highest violent crime rates and adopt cases for federal prosecution in those areas.  In the Eastern District of Pennsylvania, our PSN target areas are all located in police districts in Philadelphia.  In Fiscal Year 2019, my Office charged 143 violent crime and illegal gun possession cases (against 195 defendants) in PSN target areas as compared to 82 cases (against 92 defendants) charged in the previous year.  That amounts to a 72% increase in the number of PSN cases this Office pursued and a 112% increase in the number of defendants prosecuted.

To manage the increase in caseload, the Office has dedicated additional resources to our Violent Crime Unit.  In addition to adding multiple Assistant U.S. Attorneys to the Unit, this past year, we earmarked our District’s PSN grant funds to hire two experienced prosecutors from the Criminal Law Division of the Pennsylvania Attorney General’s Office who are stationed full-time in our Violent Crime Unit, working solely on cases in the PSN target areas.  We are currently in the process of hiring a third full-time attorney.  These cross-designated Special Assistant United States Attorneys have served as a force multiplier in our fight against rising violent crime.

            2.  Seize Opportunities to Take on High Impact Cases that Serve Deterrence

My Office has also been involved in a variety of impactful criminal and civil cases and remains at the forefront of many important areas of federal law enforcement.  In the face of the uncertainty created by district attorneys and city leaders who advocate pro-violent defendant policies, it is important for federal prosecutors to show the public – law abiding citizens and would-be criminals alike – that federal law enforcement will step in to fill the law enforcement vacuum.  Doing so has an important deterrent effect.

For example, my Office charged a criminal case against Jouvan Patterson, who shot and nearly killed a Cambodian store owner in South Philadelphia with an AK-47 during a store robbery.  We charged Patterson federally after he received an overly lenient plea deal from local authorities.  Even though the victim is confined to a wheelchair, the plea deal he received on the state charge could have meant that Patterson would serve as little as 3 ½ years in prison.  He faces a much longer, more appropriate sentence in our case.

In the wake of statements by Philadelphia leaders that suggested plans of leniency toward the rioters and looters who turned peaceful protests over George Floyd’s death into mayhem, my Office has offered a swift response.  For example, we charged Lore-Elisabeth Blumenthal with two counts of arson after allegedly setting two Philadelphia police cars on fire in front of City Hall on May 30.  We have also brought charges against defendants accused of taking advantage of the unrest by, among other things, blowing up ATM machines and burglarizing banks, and we have many active, ongoing investigations that we expect will lead to many more arrests. 

In the civil context, my Office filed a civil lawsuit to prevent the opening in Philadelphia of the first-ever supervised heroin injection site in the United States.  Those who support such injection sites – including some city officials – are attempting an end-run around the federal Controlled Substance Act (CSA).  The case is currently on appeal before the U.S. Court of Appeals for the Third Circuit, and we expect a decision later this year.           

            3.  Communicate Support for the Police and Share Our Deterrent Message with the Public

The progressive prosecutor reform movement has garnered significant media attention across the country.  The best way to counter disrespect for law enforcement and the rule of law is to publicly challenge those who promote an anti-law enforcement culture.  It is important for federal prosecutors to speak out when public safety is at risk and to support our federal, state, and law enforcement officers whenever possible.

One of the first things I did when I began my tenure as U.S. Attorney was to form a new unit called the Office of Public Affairs and External Engagement (OPAEE).  OPAEE is designed to promote transparency with the community, foster relationships with law enforcement stakeholders and the public, and work with community groups on deterrence initiatives and crime prevention.

My Office has increased transparency in a number of ways.  For example, I appear and speak to civic, legal, and law enforcement groups whenever possible, and take every opportunity to publicly communicate my steadfast support of the police.  When significant local events occur that have a negative impact on law enforcement efforts, I share my views with the community we serve.  In addition, I recently launched an anti-violence campaign across the District to deter violent crime by raising public awareness about the types of federal criminal charges that can be brought when firearms are involved.  The campaign, #fedcrimegetsfedtime, features public service announcements encouraging would-be offenders to put the guns down and make the right choice for their future.

Conclusion

As senior Department of Justice officials, U.S. Attorneys have a platform and a voice to stand up for the rule of law and respect for law enforcement, which go hand-in-hand.  We should use that platform responsibly and forcefully and serve as a counter-weight to radical “reform” policies that threaten public safety.  As Attorney General Barr has put it, the first duty of the government is to protect the safety of our citizens.  The law is the foundation of our society, and we at the Department are the caretakers of the law.  By upholding the law, we make possible the common life of our nation and the freedom, safety, and equality under the law that define our country. 

BOSTON – A Gardner man was arrested yesterday on a charge of possession of child pornography.  

Michael Irons, 44, was charged with one count of possession of child pornography. Following an initial appearance in federal court in Worcester today, Irons was released to home detention.

According to the charging documents, during a search of Iron’s residence today, federal agents discovered two cell phones in Iron’s bedroom – belonging to him – that a preliminary search revealed to contain at least 200 videos of child pornography.

Members of the public who have questions, concerns or information regarding this case should call 617-748-3274.

The charging statute provides for a sentence of up to 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 and Michael Shea, Acting Special Agent in Charge of the Homeland Security Investigations in Boston made the announcement. Assistance was provided by the Gardner and Worcester Police Departments. Assistant U.S. Attorney Lucy Sun of Lelling’s Worcester office is prosecuting the case. 

The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.

The details contained in the complaint are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

Baltimore, Maryland – The former President and Chief Executive Officer of Cecil Bank, Mary Beyer Halsey, age 59, of Rising Sun, Maryland, pleaded guilty today to the federal charges of conspiracy to commit bank fraud, receipt of a bribe by a bank official, and false statement in bank records, in connection with the straw purchase of a home in Rising Sun, Maryland, upon which Cecil Bank had foreclosed.  

The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Mark P. Higgins of Federal Housing Finance Agency, Office of Inspector General (FHFA-OIG), Mid-Atlantic Region; Special Agent in Charge Patricia Tarasca of Federal Deposit Insurance Corporation, Office of Inspector General (FDIC/OIG), New York Region; Special Inspector General Christy Goldsmith Romero for the Troubled Asset Relief Program (SIGTARP); and Inspector General Hannibal “Mike” Ware of the Small Business Administration, Office of Inspector General (SBA/OIG).

“Mary Beyer Halsey used her position as President and CEO of Cecil Bank for her personal benefit, causing a loss to the bank, which had already received federal taxpayer funds as part of the Troubled Asset Relief Program,” said U.S. Attorney Robert K. Hur.  “Corrupt bank officials undermine the public’s trust in our financial system.”

“The Federal Housing Finance Agency Office of Inspector General (FHFA-OIG) is committed to investigating allegations of fraud committed by officers of financial institutions which are members of the 11 Federal Home Loan Banks (FHLBanks) because their crimes strike at the heart of the FHLBank System,” said Mark Higgins, Special Agent in Charge of the FHFA-OIG’s Mid-Atlantic Region. “We are proud to have partnered with the U.S. Attorney’s Office for the District of Maryland on this case.”

“This plea illustrates the tremendous harm bank insiders can cause when they use their positions for personal gain, breaking the trust placed in them by their employees, shareholders, and customers,” said Patricia Tarasca, Special Agent in Charge, New York Region, Office of Inspector General for the Federal Deposit Insurance Corporation.  “We thank our law enforcement partners and appreciate the cooperation between investigating agencies.”

“Today, another bank CEO pleads guilty to committing fraud against the bank while the bank was in TARP,” said Special Inspector General Christy Goldsmith Romero.  “Cecil Bank CEO Halsey pled guilty to conspiracy to commit bank fraud, making false statements in bank records, and receiving a bribe in a fraud that caused losses to Cecil Bank.  Taxpayers lost nearly $11 million in TARP when Cecil Bank failed.  SIGTARP commends U.S. Attorney Robert Hur and his team for fighting financial fraud related to TARP.”

“OIG and its law enforcement partners are poised to root out fraud and bring wrongdoers to justice,” said SBA Inspector General Hannibal “Mike” Ware. “I want to thank the U.S. Attorney’s Office and our law enforcement partners for their dedication and pursuit of justice.”

Cecil Bank, located in Elkton, Maryland, had received $11,560,000 in federal taxpayer funds in 2008, under the Capital Purchase Program, as part of the Troubled Asset Relief Program.  On April 20, 2011, Cecil Bank initiated the foreclosure of a single-family house located at 127 Ebenezer Church Road in Rising Sun. 

According to her plea agreement, from 2012 to 2013, Halsey conspired with Daniel Whitehurst, an employee of a real estate development company that did business in Maryland, to defraud Cecil Bank and another bank to purchase a home through false pretenses, representations and promises.  Specifically, on March 28, 2012, Halsey and Whitehurst met at a restaurant in Cecil County.  Whitehurst asked Halsey if she could help him and a business partner get a $500,000 line of credit from Cecil Bank.  Halsey agreed to help Whitehurst to obtain a line of credit from Cecil Bank, in exchange for Whitehurst agreeing to serve as the straw purchaser of 127 Ebenezer on behalf of Halsey.  Halsey suggested that she increase the line of credit for Whitehurst to $650,000 to include the funds needed to buy the house.  Whitehurst agreed to Halsey’s request to secretly buy 127 Ebenezer on Halsey’s behalf.  On May 9, 2012, Halsey participated in a loan committee meeting at Cecil Bank that considered and approved a $650,000 line for credit for Whitehurst and a $500,000 line of credit for his business partner. 

Halsey admitted that at her request, on May 14, 2012, Whitehurst visited 127 Ebenezer and provided Halsey with an estimate of the costs to update the house.  Whitehurst determined that beyond replacing the kitchen subflooring at a cost of about $1,000, there were no significant repairs needed.  Whitehurst provided a letter of intent to purchase the home from the bank for $150,000 for Halsey to review.  Halsey suggested lowering the price to $145,000 to allow room to increase the offer later.  Halsey knew that an exterior-only appraisal of the property ordered by Cecil Bank on November 9, 2011, showed a market value of $263,000.  A full appraisal on September 10, 2012, reflected a market value of $295,000.  To support the below-market price that Halsey wanted to pay, Whitehurst included in the letter of intent a list of lower-priced home sales in the same area that were not comparable to 127 Ebenezer and therefore was not reflective of the property’s actual market value.

As detailed in the plea agreement, on May 23, 2012, Whitehurst e-mailed Cecil Bank his offer to purchase 127 Ebenezer for $145,000.  On the same day, during a meeting of the Cecil Bank Board of Directors, Halsey advised the Board that Whitehurst had made a purchase offer of $140,000 for 127 Ebenezer, $5,000 less the actual offer.  To support the below-market price of $140,000, Halsey falsely characterized the property as having “structural deficiencies [that] will require significant repairs.”  Halsey did not disclose her personal interest in the property, nor Whitehurst’s role as her nominee to acquire the property on her behalf.  The Board authorized Halsey to “negotiate the best price.”  Thereafter, Whitehurst submitted a contract for him to purchase 127 Ebenezer from Cecil Bank for $150,000, which Halsey signed on August 17, 2012 on behalf of Cecil Bank.

According to the plea agreement, subsequent to authorizing the sale of 127 Ebenezer, Halsey told Whitehurst that he should not use his line of credit from Cecil Bank to purchase the house, but should instead get the funds from a different source.  Whitehurst applied for and obtained a $100,000 loan from another bank to purchase 127 Ebenezer, fraudulently claiming that he was purchasing the property for himself and that the down payment was from an investment account.  On October 31, 2012, prior to 127 Ebenezer going to settlement, Halsey wired $75,000 to Whitehurst’s bank account to cover the cost of the down payment as well as closing costs and upgrades to the property that Halsey directed Whitehurst to arrange.  To conceal the true purpose of the wired funds, Whitehurst sent Halsey a fictitious real estate contract purporting to show that the $75,000 was the down payment for a different property that Whitehurst owned in Havre de Grace, Maryland.

On November 21, 2012, the settlement of 127 Ebenezer was held with Halsey representing Cecil Bank as the seller, and Whitehurst as the purported purchaser, selling the property to Whitehurst for $150,000.  Both signed the HUD-1 form which falsely represented that Whitehurst had paid approximately $52,566 at settlement, when in fact, the down payment and all related closing costs were paid from the $75,000 Halsey had wired to Whitehurst’s bank account beforehand.  From October 31, 2012 through March 29, 2013, Halsey transferred an additional $60,000 to Whitehurst to cover the cost the upgrades to the house that they had previously discussed, as well as to reimburse Whitehurst for mortgage payments he made on the property.  Halsey and Whitehurst also made plans to transfer title of the property to Halsey by selling the house to her at a price that would minimize the tax consequences of the sale for Whitehurst.

In December 2012, in response to a question from a bank examiner for the Federal Reserve Bank of Richmond inquiring about the sale of the property to Whitehurst, Halsey falsely stated that she was “not totally familiar with [that] property” and that the bank had difficulty marketing the property and had not listed it with a realtor because of “issues with the county over the bonds outstanding.”

In April 2013, federal agents began interviewing employees and other borrowers about banking irregularities at Cecil Bank.  Title to 127 Ebenezer was never transferred to Halsey.  Halsey never told the bank that she was the true purchaser of 127 Ebenezer, nor did the bank know that Halsey and Whitehurst had orchestrated the sale of the foreclosed property at the fraudulent price of $150,000, instead of the appraised pre-renovation price of $295,000.

As a result of Halsey’s misrepresentations and omissions, the bank lost approximately $145,000.

Halsey faces a maximum sentence of 30 years in federal prison for each offense: conspiracy to commit bank fraud; false statement in bank records; and receipt of a bribe by a bank official.  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.  U.S. District Judge Deborah K. Chasanow has scheduled sentencing for November 6, 2020 at 11:00 a.m.

Daniel Whitehurst, age 36, of Bel Air, Maryland, pleaded guilty under seal to the federal charge of mail fraud on April 6, 2018.  Whitehurst faces a maximum sentence of 30 years in federal prison for conspiracy to commit bank fraud.  Judge Chasanow has not scheduled a date for Whitehurst’s sentencing.

United States Attorney Robert K. Hur commended the FHFA-OIG, Mid-Atlantic Region; FDIC/OIG; SIGTARP; and SBA/OIG for their work in the investigation.  Mr. Hur thanked Assistant U.S. Attorneys Martin J. Clarke and Harry M. Gruber, who are prosecuting the case.

# # #

KANSAS CITY, Mo. – U.S. Attorney Tim Garrison announced today that 97 arrests have been made by local and federal law enforcement officers in less than two weeks since the launch of Operation LeGend.

 “This is the impact of a targeted initiative to reduce violent crime, carried out by local and federal law enforcement working together,” Garrison said. “Many of those who were arrested were illegally carrying firearms or illegal drugs. By bringing them to justice, we reduce the level of violence on the street and the threat of crime in our neighborhoods.”

“This is our first detailed report to update the public on the progress against violent crime that has been achieved as a result of Operation LeGend,” Garrison added. “We are striving to maintain as much transparency as possible for an ongoing law enforcement operation. I’ve been communicating with local pastors, community leaders, victims of violent crime, and public officials, and will continue to provide regular updates.”

Among those arrested from July 15 to July 31, new federal charges have been filed against 11 defendants. Nine defendants were charged with illegally possessing firearms, one defendant was charged with drug trafficking, and one defendant was charged with carjacking.

Among the remaining 88 arrests, 49 were fugitives with either state or federal warrants for their arrest. The remaining 39 non-fugitive arrests were referred for prosecution in state court. Five arrests were for homicides. Other offenses cited in the arrests included assault, drug trafficking, illegally possessing firearms, robbery, child molestation, and sexual assault.

In addition to the arrests, agents and officers seized 35 firearms, a total of nearly three kilograms of methamphetamine, hundreds of pills (including oxycontin and ecstasy), heroin, cocaine, crack cocaine, and nearly $40,000 in cash.
 
Operation LeGend
Operation LeGend is a federal partnership with local law enforcement to address the increase in homicides and violent crime in Kansas City, Mo., in 2020. The operation honors the memory of four-year-old LeGend Taliferro, one of the youngest fatalities during a record-breaking year of homicides and shootings. Additional federal agents were assigned to the operation from the FBI, Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the U.S. Marshals Service.

LAREDO, Texas – A federal grand jury has returned an indictment against a 68-year-old Mexican man for smuggling goods from the United States, announced U.S. Attorney Ryan K. Patrick.

Juan Jose Jimenez-Guerra is charged with attempting to smuggle a total of 92 firearm magazines into Mexico, 48 of which were 7.62 caliber designed for an AK-47 type rifle. The remaining magazines were 5.56 caliber for an AR-15 rifle.

He was originally charged by criminal complaint and has remained in custody pending further proceedings. He is expected to appear for his arraignment before a U.S. magistrate judge in the near future.

On July 3, Jimenez-Guerra was attempting to leave the United States at the Lincoln Juarez Port of Entry Bridge in Laredo, according to the allegations. There, authorities allegedly observed two firearm magazines fall from his pickup truck. They conducted a more thorough inspection of his vehicle and discovered the nearly 100 magazines located in the bed of the truck, according to the charges.

If convicted, Jimenez-Guerra face up to 10 years in federal prison and a possible $250,000 maximum fine.

Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with the assistance of Customs and Border Protection. Assistant U.S. Attorney Brandon Scott Bowling is prosecuting the case. 

An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.

CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051

ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Robert W. Wood, 50, of Corning, NY, who was convicted of possession of child pornography and violation of supervised release, was sentenced to serve 154 months in prison by Chief U.S. District Judge Frank P. Geraci, Jr.

Assistant U.S. Attorney Meghan K. McGuire, who handled the case, stated that in 2011, the defendant was convicted of possession of child pornography and sentenced to 24 months in prison and 15 years supervised release. While on supervised release, members of the U.S. Probation Department made an unannounced visit to Wood’s residence and found an unauthorized smart phone in his possession. A search of the phone revealed that the defendant was in possession of over 2,300 images and over 20 videos of child pornography, some of which depicted the sexual abuse of infants and toddlers.

The sentencing is the result of an investigation by the Federal Bureau of Investigations, under the direction of Special Agent-in-Charge Stephen Belongia, and the U.S. Probation Department, under the direction of Chief Probation Officer Anthony SanGiacomo.

# # # #

HOUSTON – A 34-year-old resident of Houston is in custody for charges relating to sexual exploitation of a child, otherwise known as producing child pornography, announced U.S. Attorney Ryan Patrick.

A federal grand jury returned the indictment against Richard Reyes Trigo today for sexual exploitation of children as well as distribution and possession of child pornography. He is expected to make an appearance on the indictment in the near future.  

He was originally charged by criminal complaint following suspicion he actively engaged in the sexual exploitation of a minor female under the age of two. He was taken into federal custody July 15 and made his initial appearance before U.S. Magistrate Judge Peter Bray, at which time he was ordered detained pending further criminal proceedings.

The charges allege Trigo engaged in conversations via a social media forum that individuals who have a sexual interest in children allegedly frequent. Trigo saw a post that contained terms commonly associated with the sexual exploitation of children and responded, according to the charges. During the course of the chats, Trigo allegedly claimed he was sexually active with a minor female and claimed he performed sexual acts on her. Trigo later sent four images he claimed were of the minor, some of which focused on her vagina, according to the charges.

If convicted of producing child pornography, Trigo faces a minimum of 15 and up to 30 years in federal prison, while the distribution and possession charges carry additional penalties up to 20 and 10 years, respectively. Each charge also carries a possible $250,000 maximum fine.

The FBI conducted the investigation.

Assistant U.S. Attorneys Sherri Zack and Sherin Daniel are prosecuting the case, which was brought as part of Project Safe Childhood(PSC), a nationwide initiative the Department of Justice (DOJ) launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources tab on that page.  

An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.

NEWS RELEASE SUMMARY– August 4, 2020

SAN DIEGO – Today, Attorney General William P. Barr and Advisor to the President Ivanka Trump announced that the Office for Victims of Crime (OVC), a component of the Department of Justice’s Office of Justice Programs (OJP), has awarded $35,104,338 in grant funding to provide safe, stable housing and appropriate services to victims of human trafficking.  U.S. Attorney Robert Brewer revealed that San Diego’s North County Lifeline, Inc. was selected as one of 73 grant awardees in 34 states. The organization will receive $500,000 in grant funds to provide six to 24 months of transitional or short-term housing assistance for trafficking victims, including rental, utilities or related expenses, such as security deposits and relocation costs.  The grants will also provide funding for support needed to help victims locate permanent housing, secure employment, as well as occupational training and counseling.  This is the largest federal investment of its kind.

“Eradicating the horrific crime of human trafficking and helping its victims are top priorities for the Department of Justice,” said U.S. Attorney Robert Brewer.   “We are working relentlessly to bring human traffickers to justice and to deliver critical aid to trafficking survivors, who often have nowhere to go once they are freed from trafficking. We cannot allow the trauma of trafficking to give way to new dangers caused by homelessness, which often leads to re-victimization by predators. These funds will provide San Diego victims the shelter and support they need to turn the corner and begin a new life.”

North County Lifeline, Inc., a 24 hour on-call victim services organization, works in collaboration with San Diego Human Trafficking Task Force to ensure that every victim of human trafficking is provided with individualized resources and services. Lifeline’s transitional housing program utilizes a Housing First model, which ensures that factors that often preclude trafficking victims from qualifying for long-term housing programs (substance use/abuse, untreated mental health issues, prior criminal record) are not an issue. According to the DOJ award, this type of unrestricted housing for trafficking victims, in addition to being in short supply in San Diego, is considered most conducive to providing trafficking victims with the safety and stability they need to shift out of a crisis mindset and begin working toward self-sufficiency. Lifeline plans to serve approximately 75 trafficking victims over the project period. In addition to housing, clients may elect to participate in supportive services including, but not limited to, ongoing case management, medical and dental care, (limited) legal assistance, literacy/GED/education assistance, LGBTQ services, substance abuse treatment, trauma counseling, life skills training, and employment and financial coaching.

The grant funds announced today will support multiple forms of short-term housing assistance, including helping survivors make rent payments, cover utility bills or security deposits, or pay moving expenses. The grants are the first-ever federal program dedicated exclusively to providing housing for survivors of human trafficking. It represents part of approximately 100 million dollars in total grants that the Department of Justice anticipates awarding this year to combat human trafficking.

“In addition to the considerable financial support announced today, the Department of Justice and this office will continue to use the full force of our law enforcement resources to investigate, prosecute, and punish the people behind the cruel crime of human trafficking,” Brewer added.

CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051

BUFFALO, N.Y. -- U.S. Attorney James P. Kennedy, Jr. announced today that Tracey Wynn, 38, of Jamestown, NY, pleaded guilty before U.S. District Judge Richard J. Arcara to conspiring to possess with intent to distribute, and distributing, 500 grams or more of methamphetamine. The charge carries a mandatory minimum penalty of 10 years in prison, a maximum of life, and a $10,000,000 fine.

Assistant U.S. Attorney Joshua A. Violanti, who is handling the case, stated that between September 2018 and January 2019, the defendant was a drug trafficking associate of Douglas Beardsley and sold methamphetamine supplied by Beardsley. Wynn typically received methamphetamine from Beardsley to sell two or three times a week. During the conspiracy, the defendant and Beardsley would communicate often about the operation, including through their Facebook accounts.

On four separate occasions, Wynn sold methamphetamine to an individual working with the Drug Enforcement Administration. On August 7, 2017, investigators executed a New York search warrant at the defendant’s residence and recovered a quantity of methamphetamine, approximately $347 in cash, drug paraphernalia, and mail. Also inside the residence, investigators identified items indicating children lived at the residence. 

On October 23, 2019, Wynn committed a moving traffic violation and was stopped by a Jamestown Police officer. During the stop, the officer asked the defendant exit the vehicle. A search of the driver side area yielded two digital scales, one of which had crystal methamphetamine on it. Wynn was arrested at the scene for driving with a suspended license and possession of drug paraphernalia. At the jail, a bag of marijuana was found in the defendant’s sweatshirt pocket, and plastic bags of methamphetamine were found on her person. 

Charges remain pending against Douglas Beardsley. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.  

The plea is the result of an investigation by the Jamestown Police Department, under the direction of Acting Chief Timothy Jackson; the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division; and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. Devito, New York Field Division.   

Sentencing is scheduled for November 13, 2020, at 12:30 p.m. before Judge Arcara. 

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LAS VEGAS, Nev. – U.S. Attorney Nicholas A. Trutanich of the District of Nevada announced today that the state of Nevada received a total of $998,714 from the Department of Justice’s Office of Justice Programs and its component, the Office for Victims of Crime, to provide safe, stable housing and appropriate services to victims of human trafficking.

“Human trafficking is a barbaric criminal enterprise that subjects its victims to unspeakable cruelty and deprives them of the most basic of human needs, none more essential than a safe place to live,” said Attorney General William P. Barr. “Throughout this Administration, the Department of Justice has fought aggressively to bring human traffickers to justice and to deliver critical aid to trafficking survivors. These new resources, announced today, expand on our efforts to offer those who have suffered the shelter and support they need to begin a new and better life.”

“The District of Nevada greatly appreciates the support from the Department of Justice’s Office of Justice Programs to help survivors in Nevada,” said U.S. Attorney Trutanich. “These grant awards will assist trafficking victims in our communities with, among other things, finding housing and employment.”

The grants, awarded to the Rite of Passage Adolescent Treatment Centers and Schools, Inc. and Hookers for Jesus, Inc., will provide six to 24 months of transitional or short-term housing assistance for trafficking victims, including rental, utilities or related expenses, such as security deposits and relocation costs. The grants will also provide funding for support needed to help victims locate permanent housing, secure employment, as well as occupational training and counseling. These recipients are among 73 organizations receiving more than $35 million in OVC grants to support housing services for human trafficking survivors.

“Human traffickers dangle the threat of homelessness over those they have entrapped, playing a ruthless game of psychological manipulation that victims are never in a position to win,” said OJP Principal Deputy Assistant Attorney General Kathrine T. Sullivan. “These grants will empower survivors on their path to independence and a life of self-sufficiency and hope.”

Human trafficking offenses are among the most difficult crimes to identify, and the scope of human trafficking victimization may be much greater than the limited data reflect. A new report issued by the National Institute of Justice, another component of the Office of Justice Programs, found that the number of human trafficking cases captured in police reports may represent only a fraction of all such cases. Expanding housing and other services to trafficking victims remains a top Justice Department priority.

The Office for Victims of Crime, for example, hosted listening sessions and roundtable discussions with stakeholders in the field in 2018 and launched the Human Trafficking Capacity Building Center. From July 2018 through June 2019, 118 OVC human trafficking grantees reported serving 8,375 total clients including confirmed trafficking victims and individuals showing strong indicators of trafficking victimization.

For a complete list of individual award amounts and jurisdictions that will receive funding, visit: https://www.ojp.gov/sites/g/files/xyckuh241/files/media/document/htvictimsfactheet.pdf

                                                                  *******

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 thecriminal and juvenile justice systems. More information about OJP and its components can be found at www.ojp.gov.

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.

                                                                     ###

          LOS ANGELES– A federal grand jury today returned a superseding indictment charging Edward Buck with four additional felonies, including that he allegedly enticed victims – including a man who died at his West Hollywood apartment after he administered drugs to him – to travel interstate to engage in prostitution.

          Buck, 65, was arrested in September 2019 after being charged in United States District Court with providing methamphetamine to a man who died after receiving the drug intravenously. Since that time, federal authorities have continued to investigate Buck for additional crimes.

          The four additional counts charged today – bringing the total number of charges in this case to nine counts – include one count alleging that Buck knowingly enticed 26-year-old Gemmel Moore to travel to the Los Angeles area to engage in prostitution. Buck allegedly provided methamphetamine to Moore, who overdosed on the drug and died on July 27, 2017.

          Buck also is charged with another count of enticing another man to travel with the intent of engaging in prostitution.

          The superseding indictment also charges Buck with one count of knowingly and intentionally distributing methamphetamine, and one count of using his residence for the purpose of distributing narcotics such as methamphetamine, and the sedatives gamma hydroxybutyric acid (GHB) and clonazepam.

          Last year, a federal grand jury returned a five-count indictment charging that Buck “engaged in a pattern of soliciting men to consume drugs that Buck provided and perform sexual acts at Buck’s apartment,” which is a practice described as “party and play.” Buck allegedly solicited victims on social media platforms, including a gay dating website, and used a recruiter to scout and proposition men.

          Once the men were at his apartment, Buck allegedly prepared syringes containing methamphetamine, sometimes personally injecting the victims with or without their consent, according to the indictment. Buck also allegedly injected victims with more narcotics than they expected and sometimes injected victims while they were unconscious.

          Another victim, Timothy Dean also suffered a fatal overdose in Buck’s apartment, on January 7, 2019, the indictment alleges.

          Buck is scheduled to go to trial in this matter on January 19, 2021. His arraignment on the first superseding indictment is expected in the coming weeks.

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

          Each of the charges alleging the distribution of narcotics resulting in death carries a mandatory minimum sentence of 20 years in federal prison and a maximum penalty of life without parole. The four new charges carry a statutory maximum sentence of 60 years in federal prison.

          Buck also faces charges, including operating a drug house, that were filed last year by the Los Angeles County District Attorney’s Office. Buck is currently being held in federal custody without bond, and the federal case is expected to proceed first.

          The federal case is being investigated by the Drug Enforcement Administration, the Los Angeles County Sheriff’s Department and the FBI. The investigation is being conducted with the support of the Organized Crime Drug Enforcement Task Force.

          This case is being prosecuted by Assistant United States Attorneys Chelsea C. Norell and Brittney M. Harris of the International Narcotics, Money Laundering, and Racketeering Section.

SAN FRANCISCO – Anthony Scott Levandowski pleaded guilty and was sentenced today to 18 months in prison for trade secret theft related to Google’s self-driving car program, announced United States Attorney David L. Anderson and John F. Bennett, Special Agent in Charge of the Federal Bureau of Investigation.  Levandowski was also ordered to pay a $95,000 fine and $756,499.22 in restitution. 

As part of a plea agreement, Levandowski, 40, of Marin County, pleaded guilty to one of the 33 counts of trade secrets theft originally filed against him in 2019.  In pleading guilty, Levandowski admitted that from 2009 to 2016 he worked in Google’s self-driving car program, known then as Project Chauffer.  Levandowski admitted that during this time, he was aware his employment agreement required him to keep Google’s valuable non-public information confidential.  He also admitted knowing that the non-public information related to Project Chauffeur was sensitive and subject to the confidentiality requirement.  Nevertheless, Levandowski admitted that in 2016, as he was preparing to leave Google, he downloaded thousands of Project Chauffer files onto his personal laptop.  He also admitted downloading a variety of files from a corporate Google Drive repository.  Among these files was an internal tracking document entitled “Chauffeur TL weekly updates – Q4 2015.”  The update contained a variety of confidential details regarding the status of Project Chauffer.  Levandowski admitted he downloaded this file with the intent to use it to benefit himself and Uber Technologies, Inc.  As part of his plea agreement, Levandowski admitted that the stolen document was Google’s trade secret, and that a reasonable estimate of the loss attributable to his theft was up to $1,500,000.  

As part of the plea agreement, prosecutors agreed to dismiss the remaining 32 charges against Levandowski.  However, prosecutors presented evidence to the court of Levandowski’s broader course of conduct, including downloading thousands of files from an internal, password-protected Google server, describing Levandowski’s overall conduct as “brazen and shocking.” In papers, they argued Levandowski “did the exact thing that Congress criminalized: he took a trade secret on his way out the door.”  

The sentence was handed down by the Honorable William H. Alsup, U.S. District Judge.  In sentencing Levandowski, Judge Alsup observed “this is the biggest trade secret crime I have ever seen.  This was not small.  This was massive in scale.” Judge Alsup also sentenced Levandowski to a fine of $95,000 and ordered him to pay $756,499.22 in restitution to Waymo LLC, as Google’s self-driving program is now known.  Levandowski was also sentenced to a 3-year period of supervised release.  The defendant will begin serving the sentence on a date to be assigned in the future, when risks from the COVID-19 have subsided.

The prosecution is being handled by the Office of the U.S. Attorney, Northern District of California’s Corporate Fraud Strike Force and is the result of an investigation by the FBI. 
 

Springfield, Ill. – A federal grand jury today returned an indictment that charges Richard G. Simms, 73, currently of Marietta, Ohio, with defrauding Kankakee’s wastewater utilities, Kankakee River Metropolitan Agency (KRMA) and the city’s Environmental Service Utility (ESU), of more than $2 million.

According to the indictment, during the time of the alleged fraud, from 2014 through 2018, Simms served as executive director of KRMA, which was responsible for treating wastewater from its member municipalities, namely, Kankakee, Bradley, Bourbonnais, and Aroma Park, Ill. KRMA also treated wastewater from Manteno and Chebanse, Ill., by intergovernmental agreement. During this period, Simms was also the Superintendent of ESU that serves as Kankakee’s public works and sewer system. At the same time, Simms owned and operated Simms Engineering, LTD.

From 2014 through 2018, Simms received more than $2.5 million in salary and legitimate payments: approximately $1,124,288 from KRMA and approximately $1,594,585 from ESU. In addition, and independent of his salary and payments, the indictment alleges that Simms fraudulently received approximately $2.2 million - $768,000 from KRMA and $1,257,000 from ESU - as payment to Simms Engineering for software development by Plum Flower International. Simms and his daughter registered Plum Flower International with the State of Illinois in March 2014 purportedly to develop a software application for medical companies to track medical records. 

The indictment alleges that although Simms did not have board approval or contracts with his engineering firm to develop software, he submitted fraudulent and inflated invoices to KRMA and ESU for software development. Simms allegedly circumvented KRMA’s invoice payment procedure by submitting invoices directly to its accounting firm. As a result, KRMA’s superintendent and administrative assistant did not approve and were unaware of the invoices.

From May 2014 through September 2018, Simms Engineering allegedly transferred more than $2 million to Plum Flower International, which represented more than 95% of its revenue during this time frame. Plum Flower International allegedly used approximately $161,000 of the funds to pay another company to create a software application which they attempted to sell on the open market. The remaining funds were allegedly used for the personal benefit of Simms and his daughter, the owners of Plum Flower International.

The Federal Deposit Insurance Corporation Office of Inspector General conducted the investigation. Assistant U.S. Attorney Eugene L. Miller is representing the government in the case prosecution.

The U.S. Clerk of the Court will set the date for Simms to appear in federal court in Urbana for arraignment.

If convicted, the offense of federal program fraud carries a maximum statutory penalty of 10 years in prison. 

Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.

PHOENIX, Ariz. – United States Attorney Michael Bailey of the District of Arizona today announced that the state of Arizona received over $1.2 million from the Department of Justice’s Office of Justice Programs and its component, the Office for Victims of Crime, to provide safe, stable housing and appropriate services to victims of human trafficking.

“Human trafficking is a barbaric criminal enterprise that subjects its victims to unspeakable cruelty and deprives them of the most basic of human needs, none more essential than a safe place to live,” said Attorney General William P. Barr. “Throughout this Administration, the Department of Justice has fought aggressively to bring human traffickers to justice and to deliver critical aid to trafficking survivors. These new resources, announced today, expand on our efforts to offer those who have suffered the shelter and support they need to begin a new and better life.”

“Victims who have suffered at the hands of human traffickers often feel trapped, with nowhere to go,” said United States Attorney Michael Bailey. “These grants to well-deserving organizations in our state offer victims some hope of a way out.”

The grants totaling over $1.2 million were awarded to three Arizona organizations: New Life Center, Chicanos Por La Causa, Inc., and Maggie’s Place, Inc. The grants will provide six to 24 months of transitional or short-term housing assistance for trafficking victims, including rental, utilities or related expenses, such as security deposits and relocation costs. The grants will also provide funding for support needed to help victims locate permanent housing, secure employment, and obtain occupational training and counseling. New Life Center, Chicanos Por La Causa, and Maggie’s Place are among 73 organizations in 34 states receiving more than $35 million in OVC grants to support housing services for human trafficking survivors.

“Human traffickers dangle the threat of homelessness over those they have entrapped, playing a ruthless game of psychological manipulation that victims are never in a position to win,” said OJP Principal Deputy Assistant Attorney General Katharine T. Sullivan. “These grants will empower survivors on their path to independence and a life of self-sufficiency and hope.”

Human trafficking offenses are among the most difficult crimes to identify, and the scope of human trafficking victimization may be much greater than the limited data reflects. A new report issued by the National Institute of Justice, another component of the Office of Justice Programs, found that the number of human trafficking cases captured in police reports may represent only a fraction of all such criminal activity. Expanding housing and other services to trafficking victims remains a top Justice Department priority.

The Office for Victims of Crime, for example, hosted listening sessions and roundtable discussions with stakeholders in the field in 2018 and launched the Human Trafficking Capacity Building Center. From July 2018 through June 2019, 118 OVC human trafficking grantees reported serving 8,375 total clients, including confirmed trafficking victims and individuals showing strong indicators of trafficking victimization.

For a complete list of individual award amounts and jurisdictions that will receive funding, visit: https://www.ojp.gov/sites/g/files/xyckuh241/files/media/document/htvictimsfactheet.pdf

RELEASE NUMBER:    2020-065_Housing Grants

# # #

For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.

ALEXANDRIA, Va. – A California man was sentenced today to 10 years in prison for trafficking kilograms of cocaine and laundering narcotics proceeds and payments.

According to court documents, between November 2016 and June 2018, Eberardo Medina, 38, shipped approximately 15 kilograms of cocaine from California to New York for redistribution. A codefendant in New York would then traffic the cocaine to the Virginia region using a courier. The cocaine would often be picked up by a local reseller at Union Station, in Washington, D.C., who would redistribute the narcotics in the area, including in the Eastern District of Virginia.

Medina also utilized numerous individuals to launder narcotics proceeds and payments. Medina instructed individuals in California to either create bank accounts or use their existing accounts in order to launder money. Medina would provide the bank account information of those California-based accounts to his codefendant in New York. The codefendant in New York would then pay workers to deposit certain amounts of money into the California-based bank accounts in a classic structuring scheme meant to evade law enforcement. Once in California, the proceeds would be withdrawn and handed to Medina for a fee. During the conspiracy, Medina laundered at least $780,000 related to narcotics distribution.

The case was investigated as part of the Organized Crime Drug Enforcement Task Forces (OCDETF). The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking, weapons trafficking, and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.

G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; Mark Herring, Attorney General of Virginia; Jesse R. Fong, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington; Ashan M. Benedict, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives’ (ATF) Washington Field Division; Gary Hartman, Deputy Director of Washington/Baltimore HIDTA, Northern Virginia Financial Initiative; and M. Jay Farr, Arlington County Chief of Police, made the announcement after sentencing by Senior U.S. District Judge Liam O’Grady. Special Assistant U.S. Attorney Karolina Klyuchnikova prosecuted 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 are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:20-cr-51.

ALEXANDRIA, Va. – An Indian national was sentenced today to over a year in prison for his role in defrauding hundreds of people of at least $150,000.

“Anikkhan Yusufkhan Pathan participated in an international fraud scheme that victimized 200 hard-working Americans,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “Pathan’s conspirators located in India exploited victims who were trying to pay mortgages and apply for loans. Individuals should not have to be worried about being scammed when trying to complete basic, and essential, financial tasks. The United States Attorney’s Office will continue to work tirelessly with our law enforcement partners to investigate and prosecute those individuals who commit fraud and seek to profit from the financial hardship they cause their victims.”

According to court documents, Pathan, 29, while in this country on a student visa, conspired with individuals in India to defraud approximately 200 people located throughout the United States. In many cases, the conspirators identified people who had recently applied for a loan from a bank. In other cases, the conspirators learned which mortgage company held the deed to a victim’s home or claimed to represent a company the victim had recently done business with. In every case, the conspirators then tricked their victims into sending money to fictitious identities using money transfer services like MoneyGram and Western Union. Pathan used at least 67 fake IDs, each bearing the name of a different fictitious identity and his photograph, to collect the victim’s money from money transfer services throughout northern Virginia.

“The Office of the Inspector General continues its commitment to working with our law enforcement partners to investigate criminal schemes aimed at taking advantage of American Taxpayers,” said Joseph V. Cuffari, Inspector General for the U.S. Department of Homeland Security (DHS).

As part of the scheme, Pathan kept a portion of the victim’s money for himself and deposited the balance into bank accounts of unknown individuals or wire transferred the money to conspirators located in India. From April to September 2017, during the course of over 200 transactions, Pathan collected $150,000 sent by hundreds of victims located around the country.

G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Joseph V. Cuffari, Inspector General for the U.S. Department of Homeland Security (DHS), made the announcement after sentencing by Senior U.S. District Judge Liam O’Grady. Special Assistant U.S. Attorney Rachael C. Tucker and Assistant U.S. Attorney William Fitzpatrick prosecuted 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 are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:20-cr-20.

Matthew D. Krueger, U.S. Attorney for the Eastern District of Wisconsin, today announced that two agencies in Wisconsin received nearly $1 million from the Department of Justice’s Office of Justice Programs and its component, the Office for Victims of Crime, to provide safe, stable housing and appropriate services to victims of human trafficking.

“Human trafficking is a barbaric criminal enterprise that subjects its victims to unspeakable cruelty and deprives them of the most basic of human needs, none more essential than a safe place to live,” said Attorney General William P. Barr. “Throughout this Administration, the Department of Justice has fought aggressively to bring human traffickers to justice and to deliver critical aid to trafficking survivors. These new resources, announced today, expand on our efforts to offer those who have suffered the shelter and support they need to begin a new and better life.” 

“The funds announced here will provide direct and much-needed aid to victims of human trafficking,” said U.S. Attorney Krueger.  “Combatting human trafficking remains a top priority for my office, which is among the most active U.S. Attorney’s Offices in the country in fighting this scourge.  From our experience, we know that providing safe, stable housing is essential to helping victims break away from their trafficker.” 

The grant, awarded to Newcap, Inc. in the amount of $500,000, and to Pathfinders Milwaukee, Inc. in the amount of  $499,000, will provide six to 24 months of transitional or short-term housing assistance for trafficking victims, including rental, utilities or related expenses, such as security deposits and relocation costs. The grant will also provide funding for support needed to help victims locate permanent housing, secure employment, as well as occupational training and counseling. Newcap, Inc. and Pathfinders Milwaukee, Inc. are among 73 organizations receiving more than $35 million in OVC grants to support housing services for human trafficking survivors.

“Human traffickers dangle the threat of homelessness over those they have entrapped, playing a ruthless game of psychological manipulation that victims are never in a position to win,” said OJP Principal Deputy Assistant Attorney General Katharine T. Sullivan. “These grants will empower survivors on their path to independence and a life of self-sufficiency and hope.”

Human trafficking offenses are among the most difficult crimes to identify, and the scope of human trafficking victimization may be much greater than the limited data reflect. A new report issued by the National Institute of Justice, another component of the Office of Justice Programs, found that the number of human trafficking cases captured in police reports may represent only a fraction of all such cases. Expanding housing and other services to trafficking victims remains a top Justice Department priority.

The Office for Victims of Crime, for example, hosted listening sessions and roundtable discussions with stakeholders in the field in 2018 and launched the Human Trafficking Capacity Building Center. From July 2018 through June 2019, 118 OVC human trafficking grantees reported serving 8,375 total clients including confirmed trafficking victims and individuals showing strong indicators of trafficking victimization.

For a complete list of individual award amounts and jurisdictions that will receive funding, visit: https://www.ojp.gov/sites/g/files/xyckuh241/files/media/document/htvictimsfactheet.pdf

 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 thecriminal and juvenile justice systems. More information about OJP and its components can be found at www.ojp.gov.

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.

                                                           #  #  #  #                                                            

MACON, Ga.– A public service campaign aimed at educating young people on the consequences of illegal gun possession is underway in Central Georgia.

Presented by the Peyton Anderson Foundation, in partnership with the U.S. Attorney’s Office for the Middle District of Georgia, the Federal Defenders of the Middle District of Georgia, Inc., the Bibb County School District Superintendent, and the Bibb County Sheriff, the “Armed with Knowledge” video project depicts the story of Noah, a preteen youth facing life-altering decisions that lead to prison for illegal firearm possession.  Throughout the video, Noah learns hard truths and irreversible consequences through personal points of view from the perpetrator, victim’s family and federal court system.

The Peyton Anderson Foundation worked with the U.S. Attorney’s Office for the Middle District of Georgia and the Federal Defenders for the Middle District of Georgia, Inc. on the project’s development and is partnering with the U.S. Attorney’s Office, the Federal Defenders for the Middle District of Georgia, Inc., the Bibb County School District and the Bibb County Sheriff’s Office on distributing the educational video and accompanying facilitator guide for screening in schools and youth programs throughout Georgia. The video is suitable for middle school viewers and older, although educators can choose to present the video to older elementary school children, as deemed appropriate. The Bibb County School District will be showing the video to students in the fall. The Bibb County Sheriff’s Office plans to utilize the video in its youth outreach programs. The U.S. Attorney’s Office for the Middle District of Georgia will implement “Armed with Knowledge” as part of its own Successful Tips for Youth on Law Enforcement Encounters (STYLE) youth outreach program.

The video was the idea of Peyton Anderson Foundation Trustee Marc Treadwell. Judge Treadwell is a United States District Judge, serving in the United States District Court for the Middle District of Georgia since 2010. Filmed entirely in Central Georgia by Big Hair Productions, the video features local actors, as well as Judge Treadwell, members of the U.S. Attorney’s Office for the Middle District of Georgia and the Federal Defenders of the Middle District of Georgia, Inc. It also features a powerful scene with Tonora Jones, the mother of Ta’Shuntis “Tootie” Roberts, who was lost to gun violence in 2015.

“Many defendants, particularly younger defendants, are completely unaware of the severe criminal penalties that can result from illegal possession of a gun,” said Judge Treadwell. “If our young people are fully informed, perhaps they will choose a different path, a path that will save them, their families and their communities from the consequences of illegal gun possession.”

“Our hope is that this film will make a lasting impression on young viewers, and they will never forget that gun violence can cost them their lives, literally or through years in prison,” said U.S. Attorney Charlie Peeler. “With this powerful video, the Peyton Anderson Foundation has provided educators, mentors, parents and community leaders a unique educational tool with the potential to reduce gun violence and gang activity. We owe it to our community to take full advantage of this opportunity by watching this film with the young people in our lives.”

“The overwhelming dream of our office is that this film will help young people, especially young men of color, to avoid mistakes that bring lifelong consequences. As a lawyer who has represented the indigent accused for over 35 years, I have seen the horrifying consequences that people of color and poor people face after making what many think are minor mistakes early on in life. I hope and desire that this film will empower youth to make better decisions to rebuild their communities which have been shattered by systemic racial injustice, destroyed nuclear families, and disenfranchised so many people,” said Christina Hunt, Executive Director, Federal Defenders of the Middle District of Georgia, Inc. “Our belief is that by knowing the consequences early on, we will be able to rebuild a better place for all to live. We also want people to know that this Office stands to answer any questions any person may have on these matters and can answer those questions confidentially.”

“For too long, I have seen our students make bad decisions about guns. I hate seeing the consequences of those decisions and the hurt it causes; all because young children just don’t know,” said Bibb County School District Superintendent Dr. Curtis Jones. “The ‘Armed with Knowledge’ partnership is just the right proactive actions we need to tell our youth and their parents – Don’t Do It. Thank you for showing how an engaged community helps students develop and demonstrate the strength of character we want of them.” 

“‘Armed with Knowledge’ is a compelling video which will be an exceptional teaching tool which touches upon relevant issues that today’s youth are facing,” said Bibb County Sheriff David Davis. “The information a young person receives from this presentation will help them deal with peer pressure and making right choices. We at the Bibb County Sheriff’s Office look forward to adding this to our youth outreach options.”

“‘Armed with Knowledge’ is an impactful educational tool that, with outreach and guidance, can make a permanent imprint in the hearts and minds of young viewers, making them think twice when they, or someone they know, are faced with the decision to engage in a gang or other criminal activity,” said Karen Lambert, president of the Peyton Anderson Foundation.  

The trailer of the video will debut on August 5, 2020 on both the Peyton Anderson Foundation and U.S. Attorney’s Office for the Middle District of Georgia Facebook pages, directing viewers to the ArmedWithKnowledge.org website for additional information and access to the full-length video. Organizations can request to use the video and its educational content from the website.

This partnership is in conjunction with Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.

This partnership also affiliated with 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. For more information about Project Guardian, please see https://www.justice.gov/projectguardian.    

The Peyton Anderson Foundation was formed in 1988, in honor of Peyton T. Anderson Jr., owner in the 1950s and 60s of the Macon Telegraph and the Macon News. A highly successful businessman, family man, veteran, civic leader, and philanthropist, Anderson assigned the bulk of his estate for charitable purposes to benefit his hometown of Macon, Georgia. He maintained that the people of Central Georgia had been good to him, and he in turn, wished to be good to them. His instructions were simple: give to “good-doers,” instead of “do-gooders.” The Peyton Anderson Foundation carries out these wishes and serves as a lasting memorial to a man whose goodwill lives on long after him, investing over $105 million in Central Georgia and touching the lives of thousands of our residents. For more information, please visit PeytonAnderson.org.

For more information about “Armed with Knowledge” and to request access to the full-length video, please visit ArmedWithKnowledge.org.Questions for the Peyton Anderson Foundation can be directed to Jessica Walden at jw@jessicawalden.com or (478) 361-6998. Questions for the U.S. Attorney’s Office 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.

CHICAGO — Three family members have been indicted on a labor trafficking conspiracy charge for allegedly forcing two undocumented West African teenagers to work in the Chicago suburbs.

NAWOMI AWOGA, 71, of Hazel Crest, and her two daughters, MARINA OKE, also known as Marina Fandohan, 34, of Country Club Hills, and ASSIBA LEA FANDOHAN, 31, of Hazel Crest, are charged with conspiracy to conceal, harbor, and shield from detection two children from the West African country of Benin, according to an indictment returned in U.S. District Court in Chicago.  The indictment also charges the defendants with forcing labor through threats of serious harm to a victim or another person.

The defendants were arrested Monday.  Awoga is scheduled to make an initial court appearance on Aug. 5, 2020, at 3:00 p.m., before U.S. Magistrate Judge Young B. Kim, while Oke and Fandohan will appear before Judge Kim for detention hearings on Aug. 6, 2020, at noon.

The indictment and arrests were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; James M. Gibbons, Special Agent-in-Charge of the Chicago office of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; Irene Lindow, Special Agent-in-Charge of the U.S. Department of Labor Office of Inspector General in Chicago; and Patrick S. Mills, Special Agent-in-Charge of the U.S. Department of State’s Diplomatic Security Service (DSS), Chicago Field Office.  Substantial assistance in the investigation was provided by the Cook County Sheriff’s Office, Chicago Police Department, and the Regional Security Office at the U.S. Embassy in Cotonou, Benin.  The government is represented by Assistant U.S. Attorneys Barry Jonas and Tiffany Ardam.

According to the charges, Awoga coached the victims, then age 14 and 12, in Benin to lie to U.S. immigration authorities about their family relationships in order to obtain tourist visas, and then accompanied them into the United States.  Once in the U.S., the defendants harbored the victims in residences in the Chicago suburbs of Country Club Hills and Hazel Crest while the victims were forced to provide labor and services for the defendants’ financial gain, the indictment states.

The public is reminded that an indictment is not evidence of guilt.  The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.  If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.