United States Attorney Ron Parsons announced that two Rapid City, South Dakota, men convicted of Carjacking Resulting in Serious Bodily Injury, Discharge of a Firearm During a Crime of Violence, and Possession of a Firearm by a Prohibited Person were sentenced on August 13, 2020, by Judge Jeffrey L. Viken, U.S. District Court.

Moses Crowe, age 27, was convicted by a jury of all three charges and was sentenced to a total of 22 ½ years in federal prison as to the Carjacking conviction.  Crowe was also sentenced to two 5-year terms of supervised release, to run concurrently, and was ordered to pay a total of $300 in special assessments to the Federal Crime Victims Fund.

Ranson Long Pumpkin, age 33, was convicted by the same jury of Aiding and Abetting, Carjacking Resulting in Serious Bodily Injury, and Discharge of a Firearm During a Crime of Violence.  Long Pumpkin was sentenced to a total of 20 years in federal prison.  Long Pumpkin was also sentenced to two 5-year terms of supervised release, to run concurrently, and was ordered to pay a total of $200 in special assessments to the Federal Crime Victims Fund.

Saul Crowe earlier pleaded guilty on January 25, 2019, to Carjacking and Discharge of a Firearm During a Crime of Violence, and was sentenced on June 21, 2019, to serve just over 20 years in federal prison.

Evidence at trial established that Moses Crowe, Long Pumpkin, and Saul Crowe carjacked an occupied van by force on October 13, 2017.  Together, the men held the victim at gunpoint and repeatedly strangled him to unconsciousness.  The men drove the victim to an isolated area north of Rapid City, where they pistol-whipped and severely beat him.  Using two different semi-automatic pistols, Moses Crowe and Saul Crowe each fired multiple rounds near the victim, while Long Pumpkin continued to physically assault him.   

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone.  The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and local communities to develop effective, locally-based strategies to reduce violent crime.

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives; Unified Narcotics Enforcement Team; the Rapid City Police Department; the Pennington County Sheriff’s Office; the South Dakota Division of Criminal Investigation; and the RCPD/PCSO Special Response Team.  Assistant U.S. Attorneys Heather Sazama and Gina Nelson prosecuted and tried the case.  ATF Special Agent Riley Cook was the lead case agent.

Crowe and Long Pumpkin were immediately turned over to the custody of the U.S. Marshals Service.

United States Attorney Ron Parsons announced that a Sturgis, South Dakota, man convicted of Attempted Receipt of Child Pornography was sentenced on August 4, 2020, by Jeffrey L. Viken, U.S. District Court Judge.

Conner Harmon, age 22, was sentenced to 5 years in federal prison, followed by 8 years of supervised release, and was ordered to pay a $100 special assessment to the Federal Crime Victims Fund.

The conviction stemmed from an undercover sex trafficking operation conducted during the 2018 Sturgis Motorcycle Rally, targeting internet predators.  Harmon was arrested and federally indicted following multiple chats and text messages with a person Harmon believed to be a 14 year-old girl, but who was in fact an undercover agent.  Harmon proceeded to negotiate the time and place he would meet the minor to engage in unlawful sex acts.  When Harmon went to the pre-determined location to meet the minor, he was instead met by law enforcement agents and placed under arrest.

The investigation was conducted by the South Dakota Division of Criminal Investigation, the Department of Homeland Security, the Rapid City Police Department, and the Pennington County Sheriff’s Office.  Assistant U.S. Attorney Sarah B. Collins prosecuted the case.

Harmon was immediately remanded to the custody of the U.S. Marshals Service. 

United States Attorney Ron Parsons announced that an Eagle Butte, South Dakota, man convicted of Voluntary Manslaughter and Discharging a Firearm During and in Relation to a Crime of Violence was sentenced on August 17, 2020, by Chief Judge Roberto A. Lange, U.S. District Court.

Dante Johnson was sentenced to 15 years in federal prison, followed by 5 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $200.

An Information was filed against Johnson on January 14, 2019.  He pled guilty on June 1, 2020.

The conviction stemmed from an incident on January 12, 2019, when Johnson fired a gun and people at a neighboring house heard it.  Upon hearing the gunshot, the victim exited the residence to see what was going on.  As the victim stepped forward, Johnson pointed a handgun at him and shot the victim in the chest.  The victim collapsed and died due to the gunshot wound.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone.  The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and local communities to develop effective, locally-based strategies to reduce violent crime.

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. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.

This case was investigated by the Federal Bureau of Investigation and Cheyenne River Sioux Tribe Law Enforcement Services.  Assistant U.S. Attorney Jay Miller prosecuted the case.    

Johnson was immediately turned over to the custody of the U.S. Marshals Service.

United States Attorney Ron Parsons announced that a Rapid City, South Dakota, man convicted of Attempted Receipt of Child Pornography was sentenced on August 14, 2020, by Jeffrey L. Viken, U.S. District Court Judge.

Kenneth Williamson, age 52, was sentenced to 5 years in federal prison, followed by 5 years of supervised release, and was ordered to pay a $100 special assessment to the Federal Crime Victims Fund.

The conviction stemmed from an undercover sex trafficking operation conducted during the 2019 Sturgis Motorcycle Rally, targeting internet predators.  Williamson was arrested and federally indicted following multiple chats and text messages with a person he believed to be a 15 year-old girl, but who was in fact an undercover agent.  Williamson requested sexually explicit images from the 15-year-old undercover persona and proceeded to negotiate the time and place he would meet the minor to engage in unlawful sex acts.  When Williamson went to the pre-determined location to meet the minor, he was instead met by law enforcement agents and placed under arrest.

The investigation was conducted by the South Dakota Division of Criminal Investigation, the Department of Homeland Security, the Rapid City Police Department, and the Pennington County Sheriff’s Office.  Assistant U.S. Attorney Sarah B. Collins prosecuted the case.

Williamson was immediately remanded to the custody of the U.S. Marshals Service. 

LEXINGTON, Ky. - A Clayhole, Ky., man, Phillip Lovins, 61, was sentenced in federal court on Friday, to 180 months in prison, by Chief U.S. District Judge Danny Reeves, after previously pleading guilty to being a convicted felon in possession of firearms and ammunition and possession with intent to distribute Methadone.           

According to his plea agreement, in May 2019, law enforcement found Lovins in possession of several boxes of ammunition, a 9 mm. pistol, a 270 caliber rifle, and a plastic bag with 100 Methadone 40 mg tablets. Lovins admitted that he had obtained the Methadone from his supplier, on multiple occasions, and he sold the pills to others. Lovins further admitted that he was a convicted felon and was prohibited from possessing a firearm.

Lovins pleaded guilty in February 2020. In May 2015, Lovins was convicted of several felonies, including four counts of Trafficking a Controlled Substance, one count of Tampering with Physical Evidence, and one count of Possession of a Controlled Substance, in Breathitt County Circuit Court.

Under federal law, Lovins must serve 85 percent of his prison sentence.  Upon his release, he will be under the supervision of the U.S. Probation Office for six years.

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

The investigation was directed by ATF, KSP, and the Kentucky Department of Fish and Wildlife.  The United States was represented by Assistant U.S. Attorney Roger West.

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.

— END —

United States Attorney Ron Parsons announced that an Allen, South Dakota, woman was charged in federal district court with First Degree Murder.  

Jonnie Fineran, age 18, was charged on August 4, 2020.  Fineran appeared before U.S. Magistrate Judge Daneta Wollmann on August 12, 2020, and pled not guilty to the charge.

The maximum penalty upon conviction is mandatory life in federal prison and a $250,000 fine, 5 years of supervised release, and $100 to the Federal Crime Victims Fund.  Restitution may also be ordered.

The charge relates to Fineran killing a man by stabbing him on July 24, 2020, at Manderson.  The charge is merely an accusation and Fineran is presumed innocent until and unless proven guilty. 

The investigation is being conducted by the Oglala Sioux Tribe Department of Public Safety and the Federal Bureau of Investigation.  Assistant U.S. Attorney Eric Kelderman is prosecuting the case.

Fineran was detained pending trial.  A trial date has not been set.

A federal grand jury for the Southern District of Illinois has returned a ten-count indictment
charging Kathleen M. Dvorak, 60, of O’Fallon, Illinois, with conducting a large, multi-year fraud
scheme. The indictment alleges that from 2012 through 2019, while working as a private bookkeeper,
Dvorak embezzled more than $1 million from her client-victim in two primary ways:
(1) by writing large checks, payable to herself, that were drawn on the victim’s bank account; and
(2) by taking large amounts of cash back for herself when she deposited checks payable to the
victim into his bank accounts. According to the indictment, Dvorak concealed her fraud from the
victim by making false entries into his QuickBooks accounting program.

The indictment charges Dvorak with five counts of wire fraud and five counts of bank fraud. Each
wire fraud count carries a maximum sentence of 20 years in prison and a fine of up to
$250,000. The bank fraud charges each carry a maximum prison sentence of 30 years in prison and a
fine of up to $1 million. The indictment also requests that a forfeiture judgment be entered
against Dvorak in the amount of $1,523,719.08.

The arraignment for Dvorak will be conducted on September 10, 2020, at 10:00 a.m. at the federal
courthouse in East St. Louis, Illinois.

An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be
innocent of a charges until proven guilty beyond a reasonable doubt to the satisfaction of a jury.

The investigation was conducted by agents from the FBI Springfield Division, Fairview Heights
Resident Agency. The case is being prosecuted by Assistant United States Attorney Scott
A. Verseman.

LEXINGTON, Ky. - A Nigerian National residing in Indianapolis, Ismaila Fafunmi, pleaded guilty in federal court on Friday, before U.S. District Judge Karen Caldwell, to money laundering charges related to a romance fraud and grant fraud scheme.

According to his plea agreement, Fafunmi admitted that, beginning in June 2018, he worked in conjunction with others, who communicated through online chats, about a scheme to defraud U.S. citizens through a romance scheme.  In furtherance of this scheme, Fafunmi and his co-conspirators would set up fake profiles on dating websites profiling American men, often military members.  Fafunmi’s co-conspirators would engage in conversations with victims, typically women older than 50, through the dating website, making the victims believe they were in a romantic relationship with the individual in the fictitious profile.

Fafunmi and his co-conspirators would then convince these unsuspecting women to send money for various reasons.  One victim of the scheme lived in Kentucky, and sent more than $200,000 to a person she believed to be her boyfriend. In another scheme, Fafunmi received funds from another female over 50, who believed she was being awarded a large grant and had to pay fees up front in order to receive her award.

In either scam, if the victims sent money by bank deposit, the conspirators would create bank accounts, in various names, to retrieve the fraudulent funds. Fafunmi and others would retain a portion of the victim funds, and then converted the remainder to wires transfers, to be sent back to co-conspirators in Nigeria. Victims also sent money in the form of postal money orders to addresses belonging to Fafunmi and his co-conspirators. Fafunmi and his co-conspriators had to convert those funds to wires to be sent back to co-conspirators in Nigeria as well.           

Fafunmi was indicted in October 2019.

“Internet-based romance scams and grant fraud scams, like the ones perpetrated here, prey on vulnerable individuals and frequently consist of nothing more than promises that are too good to be true and despicable efforts to cheat people out of their money,” said Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky.  “Unfortunately, these scams remain prevalent; so all of us need to remain vigilant when communicating online, especially if we are asked to send money to someone we do not really know.  The outstanding work of FBI personnel led to the capture and conviction of the defendant, and allows us to hold these fraudsters accountable for their crimes.” 

“Nothing is as painful as a broken heart which makes romance scams particularly egregious,” said James Robert Brown, Jr., Special Agent in Charge, FBI, Louisville Field Office. “Fraudsters who target our most vulnerable citizens online will continue to draw the full attention of the FBI.”

Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky, and James Robert Brown, Jr., Special Agent in Charge, FBI, Louisville Field Office, jointly announced the guilty plea.

The investigation was conducted by the FBI. The United States was represented by Assistant U.S. Attorney Kate Anderson.

Fafunmi is scheduled to be sentenced on November 19, 2020.  He faces up to 20 years in prison and a maximum fine of $500,000. However, any sentence will be imposed by the Court, after its consideration of the U.S. Sentencing Guidelines and the federal sentencing statutes. 

This case is being prosecuted as part of the Department of Justice’s efforts to identify and prosecute those persons who facilitate elder financial exploitation. The Department of Justice’s Elder Justice Mission, being carried out through the Kentucky Elder Justice Task Force, is to seek justice for victims of elder financial exploitation.  Anyone who knows someone who may be a victim of an elder financial exploitation, is encouraged to contact law enforcement.

— END —

CLARKSBURG, WEST VIRGINIA – Robert Given, Jr., of Lost Creek, West Virginia, was sentenced last week to six months incarceration for a firearms violation, U.S. Attorney Bill Powell announced.

Given, age 48, pled guilty to one count of “Possession of Machinegun” in November 2019. Given admitted to having a machine gun in February 2019 in Harrison 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 Sarah E. Wagner prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Harrison County Sheriff’s Office, Marion County Sheriff’s Office, the Clarksburg Police Department, and the Bridgeport Police Department investigated. 

U.S. District Judge Thomas S. Kleeh presided.

United States Attorney Richard W. Moore of the Southern District of Alabama announced that Matthew John Cobb, 35, of Castleberry, Alabama, was sentenced in federal court for being a convicted felon in possession of a firearm. Cobb pleaded guilty to the charge in April of 2020.

In connection with his guilty plea, Cobb admitted that in June 2019, law enforcement officials were investigating him as a suspect in string of hunting-camp burglaries that resulted in several stolen firearms. On June 13, 2019, a special response team located Cobb in the attic of a residence in Brooklyn, Alabama. Officers found a backpack in the attic that contained stolen items, including a .45-caliber handgun. During a post-Miranda interview, Cobb admitted that he possessed the handgun that was recovered from the backpack inside the attic. Cobb also acknowledged that he was a convicted felon and was aware that he was not supposed to possess firearms. At the time he possessed the firearm, Cobb had a prior felony conviction for Theft of Property, First Degree in the Circuit Court of Conecuh County, Alabama.

Chief United States District Court Judge Kristi K. DuBose imposed a sentence of 37 months’ incarceration, to be followed by a three-year term of supervised release. During that time, Cobb will undergo testing and treatment for substance abuse and will receive mental health evaluation and treatment. The court did not impose a fine, but the judge ordered Cobb to pay $100 in special assessments.

This case was investigated by the Conecuh County Sheriff’s Office, the Covington County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted in the United States Attorney’s Office by Assistant United States Attorney Christopher Baugh.

NEW ORLEANS, LOUISIANA – On August 20, 2020,United States District Judge Carl Barbier sentenced JAMES CALLERO, age 33, a resident of Kenner, to (60) sixty months in the Bureau of Prisons for conspiring to distribute heroin and conspiring to possession firearms in furtherance of drug trafficking, announced U.S. Attorney Peter G. Strasser.

CALLERO was charged in a six-count indictment with a conspiring to distribute heroin and various firearms offenses.  He pleaded guilty to the heroin conspiracy and a firearms conspiracy, admitting that he was distributing heroin with his co-defendant, DOMINIC LEE, and that they shared firearms to protect their drug trafficking activities.  CALLERO will serve 60 sixty months in prison to be followed by (4) four years of supervised release 

This case was brought as part of Project Safe Neighborhoods (PSN), which 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.

U. S. Attorney Peter Strasser praised the work of the Bureau of Alcohol, Tobacco, Firearms and Explosives.  The prosecution is being handled by Assistant United States Attorney David Haller.

                                                                                               *    *     * 

ATLANTA – Roberto Garza-Mendez, Shadarrian Grimes, Euklides Gonzalez-Hernandez, and Johnathan Pena have been sentenced for conspiracy to possess with intent to distribute cocaine.  Garza-Mendez and Grimes confessed to having trafficked 200 kilograms of cocaine together during a ten-year span.

“Thanks to the diligent efforts of our law enforcement partners, these defendants’ days of distributing cocaine in the Atlanta community have ended,” said U.S. Attorney Byung J. “BJay” Pak.  “Also, by seizing these defendants’ drug-related assets, we hope to send a clear message that drug traffickers will not be permitted to profit from the poison they distribute.”

“The sentencings for these criminals slams the door on a major conspiracy to peddle poison (cocaine) in our communities,” said Special Agent in Charge of the DEA Atlanta Field Division Robert J. Murphy. “DEA, its multi-level law enforcement partners and the U.S. Attorney’s Office, are committed to tracking down and bringing to justice those who pollute our neighborhoods with illegal drugs.”

According to U.S. Attorney Pak, the charges and other information presented in court: Following a multi-month federal investigation, DEA agents learned the date and time that Garza-Mendez intended to sell several kilograms of cocaine to Grimes.  DEA agents and Georgia State Patrol Officers followed Garza-Mendez from his home, stopped his car, and seized the cocaine, as well as a loaded firearm. 

Agents then executed a search warrant at Garza-Mendez’s home and seized additional kilograms of cocaine, $18,000 in cash, and a loaded rifle.   They also executed a search warrant at Grimes’ home and seized $36,000 in cash that Grimes intended to use to purchase the cocaine from Garza-Mendez.  Drug trafficking paraphernalia and a loaded pistol were also present in Grimes’ home. 

Garza-Mendez – an illegal alien twice removed from the United States – and Grimes confessed that they had trafficked 200 kilograms of cocaine with each other for more than a decade.  Grimes further confessed that he purchased his Suwanee, Georgia, home and other assets, such as diamond watches and a luxury vehicle, with proceeds from the sale of cocaine he obtained from Garza-Mendez.

The DEA investigation also uncovered that Gonzalez-Hernandez and Pena were more recent additions to the Garza-Mendez/Grimes network.  Shortly after the arrests of Garza-Mendez and Grimes, agents executed a search warrant at the Conyers, Georgia, residence of Gonzalez-Hernandez, an illegal alien, who agents identified as the operator of a cocaine stash house.  Agents seized approximately seven kilograms of cocaine hidden in an air compressor tank in Gonzalez-Hernandez’s apartment.  Agents also learned that Pena had been a courier for Garza-Mendez, transporting cocaine and money among the defendants.  He was arrested without incident outside his Stone Mountain, Georgia, residence.

The defendants were sentenced by U.S. District Judge Timothy C. Batten, Sr., as follows:

• Roberto Garza-Mendez, 34, of Norcross, Georgia, was sentenced to sixteen years in prison to be followed by five years of supervised release. 
• Shadarrian Grimes, 49, of Suwanee, Georgia, was sentenced to twelve years in prison, to be followed by five years of supervised release. 
• Euklides Gonzalez-Hernandez, 41, of Conyers, Georgia, was sentenced to five years, three months in prison. 
• Johnathan Pena, 27, of Stone Mountain, Georgia, was sentenced to two years, four months in prison, to be followed by five years of supervised release.

All four defendants previously pleaded guilty.  As part of their sentences, the Court ordered the defendants’ illegally-acquired assets to be forfeited to the United States.  Garza-Mendez and Gonzalez-Hernandez will be deported to Mexico following their terms of imprisonment.

The Drug Enforcement Administration investigated this case.

Assistant U.S. Attorney Trevor C. Wilmot prosecuted the case.

The U.S. Attorney’s Office in Atlanta recommends parents and children learn about the dangers of drugs at the following web site: www.justthinktwice.gov.

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016.  The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.

Tampa, Florida – United States District Judge Steven D. Merryday has sentenced Leon Williams (30, Tampa) to 17 years and 6 months in prison and Reginald Jones, Jr. (25, Tampa) to 15 years and 8 months in prison for their roles in a conspiracy to distribute cocaine, crack cocaine, and marijuana, and for discharging a firearm during and in relation to that conspiracy. A federal jury had found Williams and Jones guilty on November 15, 2019.

According to evidence presented during the two-week trial, Williams and Jones are members of the Bird Gang, a violent street-level drug trafficking organization that has operated in Tampa Park for years, and is responsible for multiple homicides and shootings. The Bird Gang principally sold drugs at two locations, the Tampa Park housing complex and a nearby boarding house known as the “Blue House,” which the Bird Gang had essentially taken over. On May 29, 2018, in the middle of the afternoon, Williams and Jones acted as enforcers for the gang by shooting at people whom they believed had been communicating with law enforcement in an effort to stop the gang from selling drugs at the Blue House. Bullets fired by Williams, Jones, and their associates seriously injured one person, struck a car, and broke windows at a company located two blocks away, where almost 400 people were present at the time of the shooting.

This case was investigated by the Federal Bureau of Investigation, the Drug Enforcement Administration, the Tampa Police Department, and the Florida Department of Law Enforcement. It is part of an ongoing effort to dismantle the Bird Gang, so far resulting in charges against 30 defendants. This case was prosecuted by Assistant United States Attorney Michael M. Gordon.

This case is the result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation and was 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 Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.

HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Matthew Forney, age 41, of Camp Hill, Pennsylvania, pled guilty on August 21, 2020, to four counts of tax evasion.  Kim Forney, age 47, of Windsor, Pennsylvania, pled guilty on August 17, 2020, to four counts of aiding in the preparation and filing of false tax returns. 

According to United States Attorney David J. Freed, on September 23, 2018, police were called to the residence of Matthew and Kim Forney for reports of a shooting.  Upon arrival, police discovered that their daughter’s boyfriend had shot both Matthew and Kim Forney.  While securing the residence, officers observed bloody footprints leading through the house to an outside pool house.  Inside the pool house, the police located a garbage bag, which contained a large amount of bundled United States currency.  Police obtained and executed a search warrant.  Inside a large gun safe located in the residence, police found additional amounts of bundled cash attached to daily receipts.  The officers seized the cash and receipts. 

The Forney’s daughter’s boyfriend was charged with two counts of aggravated assault in connection with the shooting, but charges were ultimately dismissed on June 19, 2019.

An investigation conducted by the Internal Revenue Service – Criminal Investigation determined that this currency was income that Matthew and Kim Forney earned through their business, but omitted on their federal income tax returns for the years 2014 through 2017.  The Forneys deposited checks from their business sales into the business bank account, which was reported as taxable income on their tax returns, along with credit card sales.  However, the Forneys retained any cash from their business sales at their residence.  The Forneys did not report this cash as taxable income on their tax returns or pay taxes on these monies.  The unreported income for these years totaled $817,713, which resulted in $292,066 in unpaid taxes.    

The case was investigated by the Internal Revenue Service - Criminal Investigation (IRS-CI).  Assistant U.S. Attorney Daryl Bloom is prosecuting the case.

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 this offense is three years of imprisonment on each count, a term of supervised release following imprisonment, and a fine. 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.

# # #

BROWNSVILLE, Texas - A 19-year-old resident of Harlingen made an appearance in federal court today and admitted he was responsible for threatening to destroy the Federal Reserve, announced U.S. Attorney Ryan K. Patrick.

Joel Hayden Schrimsher pleaded guilty to conveying false or misleading information through the internet concerning the potential destruction of a federal building. 

On June 6, 2019, authorities learned of an online threat made via Twitter from the username @HaydenJool displayed as @Hayden Ter(rawr)ist. They quickly identified Schrimsher as the source. The investigation also revealed a post on his account relaying a family conversation which ended with “Me: I’m gonna mail a bomb to the Federal Reserve.”

Law enforcement executed a search warrant for Schrimsher’s home in Harlingen on June 6, 2019. At that time, they discovered physical and documentary evidence in his room consistent with the message he sent about the Federal Reserve building. After Schrimsher’s arrest, authorities also found a photo in his cellphone of a fake certificate declaring him as “Most Likely to Damage Federal Property.”

Schrimsher admitted to having the account @HaydenJool and name Hayden Ter(rawr)ist as well as making a tweet about bombing and damaging a Federal Reserve building. He claimed he was being “edgy” when he made the threats.

U.S. District Judge Fernando Rodriguez will impose sentencing Nov. 30 at 8:30 a.m., at which time Schrimsher faces up to five years in prison and a $250,00o maximum possible fine. He has been and will remain in custody pending that hearing.

The FBI, Cameron County District Attorney’s Office, Harlingen Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. Assistant U.S. Attorneys Jody Young and Oscar Ponce are prosecuting the case.       

BEAUMONT, Texas – United States Attorney Stephen J. Cox and Special Inspector General for Pandemic Recovery Brian D. Miller announced today that the U.S. Attorney’s Office for the Eastern District of Texas (EDTX) has entered into a Memorandum of Understanding (MOU) with the Office of the Special Inspector General for Pandemic Recovery (SIGPR).

                “The COVID-19 pandemic has taken a devastating toll on American lives across the country, and the economic fallout is similarly widespread,” Cox said.  “Congress has provided vital financial relief to the public, and many people and companies are staying afloat thanks to those valuable resources.” Cox said. “That fraudsters have sought to steal these taxpayer funds is unfortunately a reality that we have seen firsthand in the Eastern District.  That’s why we are committed to detecting, investigating, and prosecuting those wrongdoers who exploit the pandemic for profit, and we are eager to partner with Special Inspector General Miller in this fight against fraud.”

                In response to the widespread economic harm caused by the COVID-19 pandemic, Congress passed the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act, which included over $2 trillion in emergency financial assistance designed to provide immediate help for American businesses and individuals. The purpose and mission of the MOU is to develop a cooperative effort to investigate and prosecute wrongdoing involving the making, purchase, management, and sale of loans, loan guarantees, and other investments by the Secretary of the Treasury under Division A of the CARES Act, and the management by the Secretary of any program established under Division A of the CARES Act.  This partnership will make efficient use of limited resources and help ensure coordination with regulators and law enforcement so that just results can be achieved, while at the same time taking care not to stymie legitimate businesses acting in good faith to access the important financial resources that Congress made available through the CARES Act.

                “I look forward to working with U.S. Attorney Stephen Cox and his team in the Eastern District of Texas to identify fraud, waste and abuse of the money provided under the CARES Act,” said Brian D. Miller, Special Inspector General for Pandemic Recovery. “We will bring to justice those who would steal CARES Act money, and recover money for the taxpayers. Taxpayers should expect nothing less.”

                Two Assistant U.S. Attorneys (AUSA) – one from EDTX’s Criminal Division and one from EDTX’s Civil Division – will serve as liaisons to the EDTX-SIGPR partnership. These AUSAs will be direct points of contact for case-related inquiries from SIGPR. Additionally, a criminal paralegal will be designated to assist with SIGPR-referred investigations and prosecutions. EDTX will also provide forensic audit support for civil enforcement matters.

                The MOU also calls for EDTX to create a streamlined, accelerated process for SIGPR investigations to obtain needed preliminary legal process, including grand jury subpoenas and court orders, subpoenas, and civil investigative demands.

HOUSTON – A criminal complaint has been unsealed charging a 53-year-old College Station man for conspiracy, making false statements and wire fraud.

Texas A&M University (TAMU) Professor Zhengdong Cheng is expected to make his initial appearance before U.S. Magistrate Judge Sam Sheldon today at 2 p.m. in Houston. Authorities took him into custody Sunday, Aug. 23.  

Cheng allegedly led a team conducting research for NASA. According to the criminal complaint, for several years he willfully took steps to obscure his affiliations and collaboration with a Chinese University and at least one Chinese-owned company. The terms of Cheng’s grant prohibited participation, collaboration or coordination with China, any Chinese-owned company or any Chinese University, according to the charges.

“China is building an economy and academic institutions with bricks stolen from others all around the world,” said U.S. Attorney Ryan K. Patrick. “While 1.4 million foreign researchers and academics are here in the U.S. for the right reasons, the Chinese Talents Program exploits our open and free universities. These conflicts must be disclosed, and we will hold those accountable when such conflict violates the law.”

“Once again we have witnessed the criminal conflicts that can arise from participation in the Chinese government’s talent program,” said Assistant Attorney General for National Security John C. Demers. “Professor Cheng allegedly made false statements to his university and to NASA regarding his affiliations with the Chinese government. The Department of Justice will continue seeking to illuminate the darkness around these talent programs and expose the exploitation of our nation and our prized research institutions.”

The charges allege Cheng and TAMU received funds based on Cheng knowingly providing false information to TAMU and consequently to NASA. In addition to the funds, Cheng personally benefited from his affiliation with TAMU and NASA with increased access to unique NASA resources, such as the International Space Station, according to the complaint. This access allegedly allowed Cheng to further his standing in China at Guangdong University of Technology and other universities. The charges further allege he held senior research positions there unknown to TAMU and NASA and was able to serve in the People’s Republic of China Talents program.

China’s Talents Plans are allegedly designed to attract, recruit and cultivate high-level scientific talent in furtherance of China’s scientific development, economic prosperity and national security.

“NASA’s funding restrictions are in place to protect taxpayer-financed research dollars and intellectual property,” said Special Agent in Charge Mark Zielinski, NASA Office of Inspector General (OIG) - Eastern Field Office. “We will continue pursue anyone who attempts to circumvent these guidelines and conceal affiliations with Chinese institutions and companies in order to obtain NASA grant money.”

“Dr. Cheng is accused of hiding his affiliation with the Guangdong University of Technology, along with other foreign universities, while disregarding the rules established under his NASA contract during his employment at TAMU,” said FBI Houston Special Agent in Charge Perrye K. Turner. “These alleged actions came to light through the tireless work of the FBI-Bryan Resident Agency and NASA-OIG investigative teams. We are grateful to TAMU, TAMU System and TAMU Engineering Experiment Station for providing significant assistance through their partnership with us throughout this case.”

Assistant U.S. Attorneys Carolyn Ferko and S. Mark McIntyre are prosecuting the case with the assistance of trial attorney Matthew McKenzie of the National Security Division’s Counterintelligence and Export Control Section.

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

WASHINGTON – Massachusetts-based DUSA Pharmaceuticals Inc. (DUSA), a subsidiary of Sun Pharmaceutical Industries Inc. (Sun Pharma), has agreed to pay the United States $20.75 million to resolve allegations that DUSA caused physicians to submit false claims to Medicare and the Federal Employee Health Benefit Program (FEHBP) by knowingly promoting an administration process for the drug Levulan Kerastick that contradicted the product instructions approved by the U.S. Food and Drug Administration (FDA) and was unsupported by sufficient clinical evidence. 

“The department is committed to protecting taxpayer-supported health care programs from fraud and abuse,” said Acting Assistant Attorney General Ethan P. Davis for the Justice Department’s Civil Division.  “We will hold drug manufacturers accountable when they knowingly promote ineffective uses of their products that undermine patient care or waste program funds.”

“While this scheme to provide false instructions on the use of its product may have resulted in more sales and bigger profits, it also meant customers endured the frustration of being repeatedly subjected to less effective treatments to try to get their skin lesions to clear,” said U.S. Attorney Brian T. Moran for the Western District of Washington. “This investigation seeks to restore money to taxpayers and discourage those who put profits over effective treatment.”

“Drug makers that push the inappropriate use of their products undermine the health of patients and the financial integrity of federal health care programs, said Special Agent in Charge Steven J. Ryan of the U.S. Department of Health and Human Services Office of Inspector General.  “Our oversight agency, working closely with our law enforcement partners, will continue to thoroughly investigate those who engage in such schemes.”

“The OPM OIG will always seek to hold accountable those prioritizing profits over patient health and safety,” said Norbert E. Vint, Deputy Inspector General Performing the Duties of the Inspector General, Office of Personnel Management (OPM) OIG. “This settlement demonstrates the commitment of our investigative staff and partners at the Department of Justice to combat health care fraud against the FEHBP.”

Levulan Kerastick is a prescription topical solution approved by the United States Food and Drug Administration (FDA) for the treatment of minimally to moderately thick actinic keratosis (AKs) of the face or scalp.  At all relevant times, the “Dosage and Administration” section of the drug’s FDA-approved instructions described a two-stage process involving application of the topical solution to the target lesions and then, following an incubation period of 14 to 18 hours, illumination of the target lesion with blue light.  

The United States alleged that, by January 2014, senior management at both DUSA and Sun Pharma knew that administration of Levulan Kerastick employing short incubation periods ranging from one to three hours resulted in AK clearance rates significantly lower than those achieved in clinical trials using 14 to 18-hour incubation.  Nonetheless, between January 2014 and December 2016, DUSA allegedly encouraged physicians to use these demonstrably less effective short incubation periods by using, among other things, paid physician speaker programs, paid physician peer-to-peer discussions, promotion by DUSA’s sales force, and the dissemination of incomplete or misleading responses to questions from prescribing doctors.  The department further alleged that DUSA failed to inform physicians that administering the drug using short incubation periods resulted in significantly lower AK clearance rates than achieved with the longer incubation period described in the FDA-approved instructions, and, in some instances, the company falsely stated that AK clearance rates were the same for the shorter and less effective incubation periods. 

As part of the settlement, DUSA and its parent company, Sun Pharma, have agreed to enter into a Corporate Integrity Agreement with HHS-OIG.  That agreement provides for procedures and reviews to be put in place to avoid and promptly detect conduct similar to that which gave rise to this matter.    

The settlement with DUSA resolves a lawsuit filed under the whistleblower provision of the False Claims Act, which permits private parties to file suit on behalf of the United States for false claims and share in a portion of the government’s recovery.  The civil lawsuit was filed by Aaron Chung, who formerly worked for DUSA as a sales representative.  As part of today’s resolution, Chung will receive approximately $3.5 million.

The settlement with DUSA was the result of a coordinated effort among the U.S. Attorney’s Office for the Western District of Washington and the Commercial Litigation Branch (Fraud Section) of the Justice Department’s Civil Division, with assistance from HHS’ Office of Counsel to the Inspector General, FDA’s Office of Chief Counsel, and HHS’ Office of General Counsel.  

The settlement was handled by Assistant United States Attorneys Kayla Stahman for U.S. Attorney’s Office, Western District of Washington and Breanna Peterson of DOJ’s Civil Division Commercial Litigation Branch.

The claims resolved by this settlement are allegations only, and there has been no determination of liability.  The lawsuit is captioned United States of America ex rel. Chung v. DUSA Pharmaceuticals, Inc., No. 16 cv 1614-JLR. 

###

RALEIGH, N.C. – A Lumberton man was sentenced today to 120 months in prison for possessing with the intent to distribute crack cocaine and cocaine, possessing a firearm in furtherance of a drug trafficking crime, and possessing a firearm as a convicted felon.

According to court documents, James Calvin Breeden, 33, who is a convicted felon,was the passenger of a vehicle stopped by deputies with the Robeson County Sheriff’s Office as they were attempting to serve an outstanding warrant. When deputies approached the vehicle, they observed Breeden in possession of a Crown Royal bag that contained approximately 80 grams of crack cocaine and 38 grams of cocaine. He also possessed a loaded handgun inside of his waistband. 

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone.   Since 2017 the United States Department of Justice has reinvigorated the PSN program and has targeted violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.

That effort has been implemented through the Take Back North Carolina Initiative of The United States Attorney’s Office for the Eastern District of North Carolina.  This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement. For more information about this initiative click here:  https://www.justice.gov/usao-ednc/tbnc

Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by Senior U.S. District Judge W. Earl Britt. The Robeson County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF) investigated the case and Assistant U.S. Attorneys Chad Rhoades and Erin Blondel  prosecuted the case.

Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 7:19-CR-00117-BR.

###

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.