SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Jerald Ungerer, age 33, of Milford, Pennsylvania, was indicted on August 25, 2020, by a federal grand jury and charged with multiple child exploitation crimes.

According to United States Attorney, David J. Freed, the indictment alleges that on January 16, and February 9, 2017, March 6, and 12, 2020, Ungerer produced multiple videos and images of minors engaged in sexually explicit conduct.

The charges stem from an investigation conducted by the Federal Bureau of Investigation, the Pennsylvania State Police and the Northeast Computer Crimes Task Force. Assistant United States Attorney Robert J. O’Hara is prosecuting the case.

This case was brought as part of Project Safe Childhood, a nationwide initiative launched by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit  www.usdoj.gov/psc For more information about internet safety education, please visit  www.usdoj.gov/psc and click on the tab "resources."

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

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

The maximum penalty under federal law is 60 years’ imprisonment, 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.

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United States Attorney Ron Parsons has announced the following plea, identified below, brought by the Guardians Project, a collaborative federal law enforcement initiative in the District of South Dakota designed to promote citizen disclosure of public corruption, fraud, and embezzlement involving federal program funds, contracts, and grants, and to hold accountable those responsible for adversely affecting those living in South Dakota’s tribal communities.

Guilty Plea for Bribery Related to Programs Receiving Federal Funds

Daniel Thomas White, age 44 of Peever, South Dakota, appeared before U.S. District Judge Charles B. Kornmann on August 24, 2020, and pleaded guilty to bribery concerning programs receiving federal funds.    

At the time of the bribery scheme, White served as the Director of the Dakota Nations Development Corporation (DNDC), an entity of the Sisseton-Wahpeton Oyate Sioux Tribe.  White’s duties included, among other things, overseeing housing and construction projects of the DNDC.

DNDC, by and through the tribe, received federal assistance in excess of $10,000 during the one-year period between October 1, 2017, and September 30, 2018.  DNDC established an entity called the SWO Elderly Village Limited Partnership.  The purpose of the entity was to obtain tax credit financing to build an elderly village complex on tribal land.  On April 22, 2016, SWO’s tribal council passed a resolution authorizing DNDC to pursue low-income housing tax credits for the elderly village complex.  The tribe also committed nearly $3,000,000 to the project.

On October 27, 2017, DNDC contracted with Tatanka Contracting to do the earthwork associated with the elderly village project.  The contract was for a guaranteed price of $1,070,740, although a change order increased the total of the contract to $1,129,679.  According to documents filed with the Court, on or about November 6, 2017, White corruptly solicited, demanded, and agreed to accept a thing of value from a person or persons working for and on behalf of Tatanka Contracting, intending to be influenced and rewarded in connection with a transaction and series of transactions of the Dakota Nations Development Corporation involving $5,000 or more.

The maximum penalty upon conviction is up to 10 years in prison and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund.  Restitution may also be ordered.

The investigation is being conducted by the Federal Bureau of Investigation and the U.S. Attorney’s Office.  Assistant U.S. Attorney Jeremy Jehangiri is prosecuting the case.

A sentencing date of May 24, 2021, has been set. 

CHICAGO — Two men have been charged in federal court with looting three pharmacies in Chicago.

WILLIAM LORENZ, 40, of Chicago, and IVAN BERMUDEZ, 42, of Chicago, are each charged with one count of conspiracy to commit burglary involving a controlled substance.  Bermudez was arrested Tuesday.  He is scheduled to make an initial court appearance today at 2:30 p.m. before U.S. Magistrate Judge Sheila M. Finnegan.  Lorenz was arrested Monday and has already made his initial appearance.

The charges were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Robert J. Bell, Special Agent-in-Charge of the Chicago Field Division of the DEA; and David Brown, Superintendent of the Chicago Police Department.  The FBI Chicago Field Office provided valuable assistance.  The government is represented by Assistant U.S. Attorneys Andrew C. Erskine and Shy Jackson.

“Anyone involved in destructive behavior in Chicago – such as looting a pharmacy for controlled substances – should know that federal law enforcement could be coming for you,” said U.S. Attorney Lausch.  “Our office will continue to work with the DEA, Chicago Police Department, and other law enforcement partners to hold looters accountable in federal court, whenever appropriate.”

“The theft of controlled substance medication from pharmacies results in temporary or permanent closures, disrupting the supply of life-saving medications to the residents of Chicago,” said DEA SAC Bell.  “With this, the diversion of stolen controlled medications is a federal crime, puts more drugs on the street and increases the public’s risk of drug abuse, addiction and overdose.”

According to a criminal complaint filed in federal court, Lorenz and Bermudez conspired to burglarize three Walgreens stores on the evening of May 31, 2020:

• 1627 N. Pulaski Rd. in Chicago’s Humboldt Park neighborhood.
• 3110 W. Armitage Ave. in Chicago’s Logan Square neighborhood.
• 4001 W. Irving Park Rd. in Chicago’s Old Irving Park neighborhood.

Each of the stores was closed at the time of the looting incidents due to civil unrest in the city.  The complaint accuses Lorenz and Bermudez of entering the stores, proceeding to the pharmacy areas, and attempting to remove drugs from the shelves. 

In the Old Irving Park incident, Lorenz attempted to access a pharmacy locker that contained Schedule II controlled substances, but he was unable to gain access, the complaint states.  The incident occurred after a city of Chicago curfew took effect at 9:00 p.m. during the period of unrest, the complaint states.  The two other lootings occurred earlier in the evening.

The public is reminded that a complaint 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.  The charge in the complaint is punishable by up to ten years in federal prison.  If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.

Audrey Strauss, the Acting United States Attorney for the Southern District of New York, William F. Sweeney Jr., Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and Jonathan D. Larsen, Special Agent in Charge of the New York Field Office of the Internal Revenue Service, Criminal Investigation (“IRS-CI”), announced that DEBORAH MENSAH, a Ghanaian citizen, was extradited from the Republic of Ghana (“Ghana”) to the United States on August 21, 2020.  MENSAH was arrested on January 16, 2020, in Accra, Ghana for charges in connection with a fraud conspiracy based in Ghana involving the theft of over $10 million through business email compromises and romance scams that targeted the elderly from at least in or about 2014 through in or about 2018.  MENSAH is the eighth defendant charged in the case.  MENSAH was presented this morning in Manhattan federal court before U.S. Magistrate Judge Debra Freeman.  MENSAH’s case is assigned to U.S. District Judge Denise L. Cote.

Acting Manhattan U.S. Attorney Audrey Strauss said:  “Deborah Mensah is alleged to have been a participant in a conspiracy that resulted in the theft of millions of dollars from businesses and vulnerable individuals across the United States, and the laundering of that money through a network of bank accounts in the Bronx to co-conspirators in Ghana.  Now she is in the United States and facing charges under U.S. law.”

FBI Assistant Director William F. Sweeney Jr. said:  “Ms. Mensah may have believed hiding in Ghana protected her from facing justice for her alleged role in this scheme.  She now knows the FBI’s reach is global through our formidable network of law enforcement partners.  Others should take heed – we won’t go away simply because it may take time to go get you.  If you break our laws, you will pay the price.”

IRS-CI Acting Special Agent in Charge Jonathan D. Larsen said:  “As alleged in the criminal complaint, Ms. Mensah’s desire for money drove her to prey upon the vulnerable in our society. Thanks to the financial expertise of IRS-CI special agents working side-by-side with our law enforcement partners, the long arm of the law caught up to Ms. Mensah in Ghana, and she will now face the consequences of her alleged actions.”

According to allegations in the Complaint and the Indictment and other filings in the case[1]:

From at least in or about 2014 through in or about 2018, MENSAH was a member of a  criminal enterprise (the “Enterprise”) based in Ghana that committed a series of business email compromises and romance scams against individuals and businesses located across the United States, including in the Southern District of New York. 

The objective of the Enterprise’s business email compromise fraud scheme was to trick and deceive businesses into wiring funds into accounts controlled by the Enterprise.  First, members of the Enterprise created email accounts with slight variations of email accounts used by employees of a victim company or third parties engaged in business with a company to “spoof” or impersonate those employees or third parties.  These fake email accounts were specifically designed to trick other employees of the company with access to the company’s finances into thinking the fake email accounts were authentic.  The fake email accounts were used to send instructions to wire money to certain bank accounts and also included fake authorization letters for the wire transfers that contained forged signatures of company employees.  By using this method of deception, the Enterprise sought to trick the victims into transferring hundreds of thousands of dollars to bank accounts the victims believed were under the control of legitimate recipients of the funds as part of normal business operations, when in fact the bank accounts were under the control of members of the Enterprise, including MENSAH.

The Enterprise conducted the romance scams by using electronic messages sent via email, text messaging, or online dating websites that deluded the victims, many of whom were vulnerable older men and women who lived alone, into believing the victim was in a romantic relationship with a fake identity assumed by members of the Enterprise.  Once members of the Enterprise had gained the trust of the victims using the fake identity, they used false pretenses, such as a shipment of gold or receiving a portion of an investment, to cause the victims to wire money to bank accounts the victims believed were controlled by their romantic interests, when in fact the bank accounts were controlled by members of the Enterprise.  At times, the members of the Enterprise also used false pretenses to cause the victims to receive funds into the victims’ bank accounts, which, unbeknownst to the victims, were fraud proceeds, and to transfer those funds to accounts under the control of members of the Enterprise.  The members of the Enterprise, posing as the romantic interest of the victims, also introduced the victims to other individuals purporting to be, for example, consultants or lawyers, who then used false pretenses to cause the victims to wire money to bank accounts controlled by members of the Enterprise.

MENSAH and her co-conspirators received or otherwise directed the receipt of over $10 million in fraud proceeds from victims of the Enterprise in bank accounts that she and other members of the Enterprise controlled in the Bronx, New York.  Some of these bank accounts were opened using fake names, stolen identities, or shell companies in order to avoid detection and hide the true identities of the members of the Enterprise controlling those accounts.  Once MENSAH received the fraud proceeds in bank accounts under her control, she withdrew, transported, and laundered those fraud proceeds to other members of the Enterprise, including those located in Ghana.  MENSAH also used the name and identity of another person to withdraw or otherwise direct the withdrawal of stolen funds.

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MENSAH, 33, a citizen of Ghana, is charged with one count of conspiracy to commit wire fraud, one count of wire fraud, and one count of conspiracy to commit money laundering, which each carry a maximum sentence of 20 years in prison; one count of receipt of stolen money, which carries a maximum sentence of 10 years in prison; one count of conspiracy to receive stolen money, which carries a maximum sentence of five years in prison; and one count of aggravated identity theft, which carries a mandatory sentence of two years in prison to be served consecutively to any other sentence imposed.  The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.

Other defendants in this case who have been sentenced include Muftau Adamu, a/k/a “Muftau Adams,” a/k/a “Muftau Iddrissu,” 32, of the Bronx, New York, who was sentenced to 51 months in prison on June 7, 2019; Prince Nana Aggrey, 45, of the Bronx, New York, who was sentenced to 30 months in prison on May 10, 2019; and Assana Traore, 41, of the Bronx, New York, who was sentenced to 15 months in prison on October 8, 2019.   Adamu and Aggrey each pled guilty to one count of conspiracy to commit wire fraud, and Traore pled guilty to one count of conspiracy to receive stolen money.  Each of the defendants was sentenced by Judge Cote.  

Any businesses or individuals who believe they may have been the victim of a business email compromise or a romance scam or have information regarding such crimes should file a complaint with the FBI’s Internet Crime Complaint Center (“IC3”) at https://www.ic3.gov or contact their local FBI office.

Ms. Strauss praised the outstanding investigative work of the FBI and IRS-CI.  Ms. Strauss also thanked the United States Marshals Service, the FBI Legal Attaché in Accra, Ghana, U.S. Customs and Border Protection, the Office of the Attorney-General & Ministry of Justice of Ghana, and Ghana’s Economic and Organised Crime Office, for their assistance in this case.  The U.S. Department of Justice’s Office of International Affairs of the Department’s Criminal Division provided significant assistance in securing the defendant’s extradition from Ghana.

The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit.  Assistant United States Attorneys Sagar K. Ravi and Mitzi Steiner are in charge of the prosecution.

The charges contained in the Complaint and the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.

WASHINGTON – The U.S. District Court for the Eastern District of New York has permanently barred two individuals and two companies that transmitted massive volumes of fraudulent robocalls from operating as intermediate voice-over-internet-protocol (VoIP) carriers conveying telephone calls into the U.S. telephone system, the Department of Justice announced today.  The consent decree entered yesterday by United States District Judge Eric R. Komitee resolves a civil complaint brought by the United States Attorney’s Office for the Eastern District of New York and the Department’s Consumer Protection Branch.

As alleged in a civil complaint filed earlier this year, in United States v. Nicholas Palumbo, et al., spouses Nicholas and Natasha Palumbo of Scottsdale, Arizona, and their companies, Ecommerce National LLC d/b/a TollFreeDeals.com and SIP Retail d/b/a sipretail.com, received millions of internet based calls every day from other entities, often located abroad.  The defendants transmitted those calls first to other carriers within the United States, and ultimately to the phones of individuals, knowing that the calls were fraudulent government and business-imposter robocalls. 

Many of the robocalls were made by individuals impersonating government investigators conveying false and alarming messages, such as the victim recipient’s social security number or other personal information had been compromised or otherwise connected to criminal activity, the recipient faced imminent arrest, the recipient’s assets were being frozen, the recipient’s bank and credit accounts had suspect activity, the recipient’s benefits were being stopped, and the recipient faced imminent deportation – each designed to frighten the recipient into paying large sums of money.  Often the numbers that appeared as the originating or caller-ID numbers were “spoofed” to make it appear that they originated from legitimate government or business offices in the United States when in fact they were made by overseas scammers, often located in India.  The defendants also sold to foreign call centers toll-free and other U.S. numbers that were left in fraudulent robocall messages on victims’ phones to deceive them into believing that the calls were legitimate and originated in the United States. These calls led to significant financial losses to victims throughout the United States and the Eastern District of New York, many of whom were elderly and vulnerable.

“The consent decree is a milestone in protecting the public, especially elderly and other vulnerable persons, from predatory robocall schemes that can cause catastrophic losses to victims in this district and throughout the country,” stated Acting United States Attorney Seth D. DuCharme.

“The Department is committed to protecting vulnerable Americans, particularly America’s seniors, from those who seek to steal their hard earned savings,” stated Acting Assistant Attorney General Ethan Davis of the Department of Justice’s Civil Division.  “The Department will prosecute both those who place fraudulent robocalls, and those who knowingly facilitate such calls for profit.  The Department recognizes the exceptional work of the Social Security Administration and Postal Inspection Service in investigating this case.”

“The Court's decision sends a clear message to gateway carriers who knowingly do business with scammers targeting Americans from overseas,” stated Gail S. Ennis, Inspector General for the Social Security Administration.  “We will continue to pursue those who facilitate these scam calls by allowing them into the U.S. telephone network.  I want to thank the Department of Justice for its support throughout this investigation and its commitment to protecting Americans from this insidious form of fraud and theft.”

Under the terms of the consent decree entered yesterday, the defendants agreed to be permanently barred from using the U.S. telephone system to deliver prerecorded messages through automatic means, carrying VoIP calls destined for phones in the United States, and providing any U.S. phone numbers to other individuals or entities.  In addition, the defendants are permanently barred from serving as employees, agents or consultants to any person or entity engaged in these activities. 

This case was handled by Assistant U.S. Attorneys Bonni Perlin and Dara Olds of the United States Attorney’s Office for the Eastern District of New York and Trial Attorneys Ann F. Entwistle and Charles B. Dunn of the Civil Division’s Consumer Protection Branch, in coordination with the Social Security Administration Office of the Inspector General and the U.S. Postal Inspection Service.  Investigative support was also provided by the U.S. Treasury Inspector General for Tax Administration, U.S. Immigration and Customs Enforcement’s Homeland Security Investigation’s El Dorado Task Force and U.S. Secret Service.  The Federal Trade Commission and the Federal Communications Commission also provided pertinent data.  

Additional information about the Consumer Protection Branch and its enforcement efforts may be found at http://www.justice.gov/civil/consumer-protection-branch.  For more information about the U.S. Attorney’s Office for the Eastern District of New York, visit its website at https://www.justice.gov/usao-edny.   

CHARLESTON, W.Va. – Mike Stuart, United States Attorney for the Southern District of West Virginia, joined by federal, state and local law enforcement officials, will hold a press conference today at 3 p.m.,regarding law enforcement actions.

Where: Robert C. Byrd United States Courthouse(in front of the courthouse)
             300 Virginia Street East
             Charleston, WV 25301                 

When: Wednesday, August 26, 2020 at 3 p.m.

*Note:  Please wear masks.

Follow us on Twitter:SDWVNewsand USAttyStuart

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ALBANY, NEW YORK – Darrell Chapman, also known as “Bishop” and “Sly Foxx,” age 40, was sentenced today to 198 months in prison for narcotics and gun offenses.

The announcement was made by United States Attorney Grant C. Jaquith, New York State Police Superintendent Keith Corlett, and Thomas F. Relford, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).

Chapman is a self-described founder of the East Bishop Family, a set of the Bloods operating in the Capital Region.  In pleading guilty, Chapman admitted to regularly obtaining distribution-size quantities of cocaine and heroin in New York City, which he and others sold in the Albany area.  In addition to Albany, Chapman’s drug-distribution operations reached as far as Rochester, New York, and to Pennsylvania. 

In the early-morning hours of October 18, 2017, Chapman was stopped returning to Albany from New York City with 250 grams of heroin.  Later in the day, law enforcement seized over 100 grams of cocaine from Chapman’s jewelry store, “The Freezer,” on South Pearl Street in Albany, and seized digital scales, a money counter, and $3,910 in cash from Chapman’s home in Rensselaer.  In searching a Chevy Malibu parked behind Chapman’s home, law enforcement seized approximately 1.5 kilograms of cocaine, cutting agent, and additional digital scales.  Law enforcement also seized four handguns and two rifles, some of which were loaded, and over 100 rounds of ammunition.  Chapman admitted he used the guns to protect his drugs and drug proceeds. 

In 1997 and 1998, Chapman was convicted in state court of robbery, attempted robbery, and criminal sale of a controlled substance, and was on parole at the time of his arrest on October 18, 2017. 

Senior United States District Judge Frederick J. Scullin, Jr. also imposed a 5-year term of supervised release, to begin after Chapman is released from prison.  The terms of Chapman’s supervise release prohibit him from associating with any member, associate, or prospect of the Bloods, or any other criminal gang, club, or organization. 

This case was investigated by the New York State Police and FBI, and was prosecuted by Assistant U.S. Attorney Cyrus P.W. Rieck. 

Memphis, TN – A Ghanaian citizen residing in Tamale, Ghana, has been extradited to stand trial for an indictment charging him with wire fraud, money laundering, computer fraud and aggravated identity theft.

Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division, U.S. Attorney D. Michael Dunavant of the Western District of Tennessee, and Special Agent in Charge Douglas Korneski of the FBI’s Memphis Field Office made the announcement.

On Aug. 23, 2017, a federal grand jury in the U.S. District Court for the Western District of Tennessee indicted Maxwell Peter, 27, whose given name is Maxwell Atugba Abayeta, and others with conspiracy to commit wire fraud, wire fraud, conspiracy to commit money laundering, conspiracy to commit computer fraud and aggravated identity theft. Following his extradition, Peter’s initial appearance was made Tuesday before U.S. Magistrate Judge Charmiane G. Claxton for the Western District of Tennessee.

The indictment alleges that various Africa-based co-conspirators committed, or caused to be committed, a series of intrusions into the servers and email systems of a Memphis-based real estate company in June and July 2016. Using sophisticated anonymization techniques, including the use of spoofed email addresses and Virtual Private Networks, the co-conspirators identified large financial transactions, initiated fraudulent email correspondence with relevant business parties and then redirected closing funds through a network of U.S.-based money mules to final destinations in Africa. Commonly referred to as business-email compromise, or BEC, this aspect of the scheme caused hundreds of thousands of dollars in losses to companies and individuals in Memphis. The defendant is specifically alleged to have directed the transfer of funds from a June 2016 BEC to a co-conspirator in Africa.

U.S. Attorney D. Michael Dunavant said: "Frauds perpetrated through the Internet cause significant financial harm to businesses and individuals in our District and throughout the United States. Because those committing Internet fraud often involve foreign nationals and others who hide behind technology, the cases are difficult – but not impossible – to investigate. With this extradition, this foreign defendant will now face justice in an American courtroom here in Memphis."

In addition to BEC, the defendant is also charged with perpetrating romance scams, fraudulent-check scams, gold-buying scams, advance-fee scams and credit card scams. The indictment alleges that the proceeds of these criminal activities, both money and goods, were shipped and/or transferred from the United States to locations in Africa through a complex network of both complicit and unwitting individuals that had been recruited through the various Internet scams. The defendant is specifically alleged to have created and used the alias "Sandra Lin" in furtherance of these crimes. From May through June of 2017, Peter is alleged to have communicated with an FBI agent acting in an undercover capacity to receive the proceeds of fraud. Along with his coconspirators over the life of the conspiracy, the defendant is believed to have caused millions of dollars in losses to victims across the globe.

An indictment is merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

Seven other individuals have pleaded guilty to being involved in these schemes. Benard E. Okorhi, 41, was extradited in March 2020 from Canada, and is detained pending trial. Two others, Olufalojimi Abegunde, 33, and Javier Luis Ramos-Alonso, 30, were convicted in March after a seven-day trial in the U.S. District Court for the Western District of Tennessee. Abegunde received a 78-month sentence and Ramos-Alonso received a 31-month sentence for their roles in the scheme. Several individuals remain at large.

The FBI led the investigation. The Justice Department’s Office of International Affairs, as well as the FBI’s Legal Attaché in Accra, the FBI Transnational Organized Crime of the Eastern Hemisphere Section of the Criminal Investigative Division, the FBI’s Major Cyber Crimes Unit of the Cyber Division, FBI’s Money Laundering, Forfeiture, and Bank Fraud Unit of the Criminal Investigative Division, and FBI’s International Organized Crime Intelligence and Operations Center all provided significant support in this case, as did the U.S. Marshals Service, INTERPOL Washington, the INTERPOL Unit of the Ghana Police Service, the Republic of Ghana’s Office of the Attorney-General & Ministry of Justice, and Ghana’s Economic and Organised Crime Office.

Senior Trial Attorney Timothy C. Flowers of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Debra L. Ireland of the U.S. Attorney’s Office for the Western District of Tennessee are prosecuting the case.

For more information or to view a list of aliases used by members of the conspiracy on dating websites and social media, visit https://www.justice.gov/usao-wdtn/victim-witness-program.

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

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PHILADELPHIA – United States Attorney William M. McSwain announced that Kenneth Saunders, 34, of Philadelphia, PA, was sentenced to over six years in prison (80 months), and three years of supervised release by United States District Court Judge John M. Younge for illegally possessing a firearm as a felon. Saunders was also on Pennsylvania state parole at the time of the offense.

The defendant pleaded guilty in March 2020 to one count of possession of a firearm by a convicted felon. During his plea hearing, Saunders admitted that he carried a firearm with an obliterated serial number and fled from Philadelphia police officers while carrying the gun on July 18, 2019. During that foot chase in the Logan neighborhood, Saunders grabbed the firearm from his waistband and pointed it at the pursuing officers before falling to the ground, after which police recovered the weapon.

According to court documents, Saunders was previously convicted of numerous felony offenses in the Philadelphia County Court of Common Pleas, including violations of the Uniform Firearms Act in 2005 and 2011 and possession with intent to distribute a controlled substance in 2010. Further, in 2004, the defendant was arrested for carrying a firearm without a license and endangering the welfare of a child. In that case, Saunders not only illegally possessed a gun, but also shot his two-year-old daughter with it. After pleading guilty, the defendant was sentenced to two to five years in Pennsylvania state prison.

“The crime of being a felon in possession of a firearm is a serious offense, particularly in a city like Philadelphia, where gun violence is running rampant,” said U.S. Attorney McSwain. “Saunders has been living a life of crime for the better part of twenty years now, and has repeatedly demonstrated his disrespect for the law. The answer to Philadelphia’s violent crime crisis is to get criminals like Sanders off of the streets, which is exactly what the U.S. Attorney’s Office is focused on.”

“As a convicted felon in possession of a firearm, Kenneth Saunders presented a real danger to the community and to law enforcement officers alike,” said John Schmidt, acting Special Agent in Charge of ATF’s Philadelphia Field Division. “Despite being prohibited from possessing a firearm, he was armed when encountered by law enforcement. The federal prosecution of this crime demonstrates ATF’s dedication to working alongside our local, state and federal partners, in this case the Philadelphia Police Department and the U.S. Attorney’s Office, to ensure violent individuals like Saunders are deprived of the ability to terrorize our community.” 

“It is going to take an aligned and sustained collaborative effort with all of our law enforcement partners in order to combat the crisis of violence in our neighborhoods,” said Philadelphia Police Commissioner Danielle Outlaw. “Individuals like Mr. Saunders need to know that illegally carrying weapons on our streets will have serious and consistent consequences. I would like to thank our federal partners for helping us work towards our common goal of making our communities safer places to live and work.”

The case was investigated by the Bureau of Alcohol, Tobacco, Fire Arms and Explosives and the Philadelphia Police Department, and is being prosecuted by Assistant United States Attorney Kelly Harrell.

SAVANNAH, GA:  A Liberty County man who brought kilos of methamphetamine to the community for redistribution has been sentenced to more than 20 years in federal prison.

Stacey White, 33, of Hinesville, Ga., was sentenced by U.S. District Court Judge Lisa Godbey Wood to 246 months in federal prison after pleading guilty to Conspiracy to Possess with Intent to Distribute and to Distribute 50 grams or more of methamphetamine, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. White also must serve five years of supervised release after completion of his prison term. There is no parole in the federal system.

“Methamphetamine is a dangerous, highly addictive drug that destroys lives and damages communities, and Stacey White is responsible for distributing it throughout the Southern District,” said U.S. Attorney Christine. “Thanks to the dedicated work of our law enforcement partners, his days of spreading poison are over.”

According to court documents and testimony, starting as early as July 2016 through December 2018, White made multiple trips each month to the Atlanta area to obtain up to two kilograms at a time of methamphetamine from a supplier. He then would return to the Southern District where he recruited other defendants to assist him in selling the drugs.

White, a certified member of the violent Bloods criminal street gang, was arrested along with another conspirator in December 2018 while retrieving stolen methamphetamine in Florida. Of the other five members of the conspiracy who were indicted with White in February 2019, three are serving prison terms after entering guilty pleas, while two are in custody and awaiting trial.

White’s criminal record includes multiple arrests over the past decade, with three prior felony convictions in state court. He was on probation on state charges at the time of his arrest.

Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Division stated, “The successful results of this investigation should let criminals who flood our communities with methamphetamine know that DEA and its law enforcement partners will not hesitate to use all its resources to destroy their drug distribution networks. These defendants will no longer be able to feed the addicts who struggle with this toxic substance.”

“Illegal drugs and gangs have no place in Georgia,” said GBI Director Vic Reynolds. “We will continue to work diligently along with our local and federal partners to investigate and dismantle drug trafficking organizations that threaten the safety of our communities.”

This drug-trafficking conspiracy was investigated by the Drug Enforcement Administration, the Georgia Bureau of Investigation and the Liberty County Sheriff’s Office, and prosecuted for the United States by Assistant U.S. Attorney Jenna Solari.

BOSTON – A Holyoke man pleaded guilty yesterday in federal court in Springfield to distributing heroin.

Luis Garcia-Figueroa, 20, pleaded guilty to eight counts of distributing and possessing with intent to distribute heroin. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for Dec. 22, 2020. 

Garcia-Figueroa possessed with the intent to distribute and distributed heroin on eight occasions between October 2019 and Jan. 15, 2020. 

The case was the result of an investigation into heroin trafficking in Holyoke.

The charging statute provides for a sentence of up to 20 years in prison, at least three years of supervised release and a fine $1 million on each count. 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; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration in New England; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; and Holyoke Police Chief Manny Febo made the announcement. Assistant U.S. Attorney Todd E. Newhouse of Lelling’s Springfield Branch Office is prosecuting the case.

CAMDEN, N.J. – A Camden County, New Jersey, man today admitted buying and reselling high-dosage oxycodone pills in Gloucester City, New Jersey, U.S. Attorney Craig Carpenito announced.

Kenneth Rushworth, 59, of Gloucester City, pleaded guilty by videoconference before U.S. District Judge Renée Marie Bumb to an information charging him with distributing and possessing with intent to distribute a quantity of oxycodone. He is the fourth individual to plead guilty for his role in drug trafficking operations based in Gloucester City and Camden.

According to documents filed in this case and statements made in court:

In communications that were intercepted during a wiretap investigation led by the FBI, Rushworth asked Rocco DePoder to provide Rushworth with $1,100 for high-dosage oxycodone pills on Jan. 25, 2020. Rushworth and DePoder then met in Gloucester City and, in exchange for the $1,100, Rushworth sold DePoder a quantity of 60 mg. oxycodone pills, which Rushworth had purchased from another individual for $900.  Rushworth was aware that DePoder intended to re-distribute those high-dose pills. 

On July 7, 2020, Wayne Muse pleaded guilty to his involvement in the drug trafficking operations with DePoder and Erick Bell. DePoder, Bell, and others were charged in criminal complaints in March 2020. On Aug. 11, 2020, Robert Pratt, 57, of Myrtle Beach, South Carolina, formerly of Blackwood, New Jersey, pleaded guilty before Judge Bumb to an information charging him with distributing and possessing with intent to distribute a quantity of oxycodone.  On Aug. 12, 2020, Steven Walker, 47, of Camden, pleaded guilty before Judge Bumb to an information charging him with one count of conspiracy to distribute and possess with intent to distribute a quantity of oxycodone and one count of distributing and possessing with intent to distribute a quantity of oxycodone. The individuals who have pleaded guilty await sentencing.

The count of distributing and possessing with intent to distribute a quantity of oxycodone carries a maximum penalty of 20 years in prison and a $1 million fine. Rushworth’s sentencing is scheduled for Jan. 4, 2021.

U.S. Attorney Carpenito credited special agents of the FBI, Philadelphia Division, South Jersey Resident Agency, under the direction of Special Agent in Charge Michael J. Driscoll; U.S. Department of Health and Human Services-Office of the Inspector General, under the direction of Special Agent in Charge Scott J. Lampert; the Camden County Sheriff's Office, under the direction of Sheriff Gilbert L. Wilson; New Jersey Office of Homeland Security and Preparedness, under the direction of Director Jared M. Maples; the Camden County Police Department, under the direction of Chief Joseph Wysocki; and the U.S. Department of Agriculture-Office of Inspector General, under the direction of Special Agent in Charge Bethanne M. Dinkins, with the investigation leading to today’s guilty plea. He also thanked the FBI Newark Division, New Jersey State Police, Camden County Prosecutor’s Office, and U.S. Drug Enforcement Administration (DEA) for their assistance.

The government is represented by Assistant U.S. Attorneys Gabriel J. Vidoni of the Office’s Camden branch and Sara F. Merin of the Newark Office.

The charges against DePoder and Bell remain pending, and they are presumed innocent unless and until proven guilty.

St. Louis, MO – Michael Malone, 44, of St. Louis, MO, pled guilty to three counts of wire fraud connected to a scheme to defraud and obtain education funds from the State of Missouri relative to the operation of the St. Louis College Prep Charter School from 2011 through 2018.  Malone appeared today before U.S. District Judge Audrey Fleissig, who accepted his plea and set sentencing for November 30, 2020. 

According to the plea agreement and statements made in Court, The St. Louis College Prep Charter School (“SLCP”) was a Missouri Charter School located in St. Louis, Missouri.  From April, 2011 through June, 2015 it operated out of leased premises at 2900 South Grand Avenue, at which time it purchased a building at 1224 Grattan Street, where it operated until the school’s closing in May, 2019.  During its final school year of 2018-2019, SLCP served students in grades six through twelve.  As a Missouri Charter School, SLCP was tuition free and funded by Missouri and federal education funds.  SLCP received its state funding through Missouri’s Department of Elementary and Secondary Education (“DESE”) based upon SLCP’s reported student attendance.  Per-student funding is based on average daily attendance, or how often students are reported to be in the school, rather than enrollment.  Malone founded SLCP and served as the Executive Director of SLCP from the school’s inception during 2011 until his resignation on November 1, 2018.  Malone was actively involved in the day-to-day management and administration of SLCP, maintained his office in the primary school building and was responsible for reporting the SLCP student attendance numbers to DESE in order for DESE to calculate SLCP’s state funding.

As part of his scheme, Malone falsely inflated SLCP students’ average daily attendance in his reports to DESE.  For four of the seven school years between 2011-2012 and 2017-2018, Malone reported students’ average daily attendance in excess of SLCP’s actual enrollment.  For example, during the 2013-2014 school year, Malone reported average daily attendance of 220, when actual enrollment at SLCP was only 191 students.  During the 2016-2017 school year, Malone reported average daily attendance of 326, when actual enrollment at SLCP was only 290 students.  These falsely inflated average daily attendance numbers reported by Malone to DESE resulted in increased state funding to SLCP.

SCLP operated on a year-long school schedule and an extended school day with no summer school and no remedial classes.  However, as part of his scheme, Malone inflated student attendance numbers by falsely claiming regular school days and hours as summer school or remedial hours, increasing the state funding received from DESE.  Malone also falsely inflated actual student daily attendance.  For example, during the 2016-2017 school year, Malone inflated the daily attendance records of 81 out of 333 students, or 24% of the actual SLCP student body.  During the 2017-2018 school year, Malone inflated the daily attendance records of 188 out of 319 students, or 59% of the actual SLCP student body.  Inflated hours totaled approximately 10,044 hours for the 2016-2017 school year and approximately 13,255 hours for the 2017-2018 school year.

Malone used the fraudulently obtained increase in state funding, approximately $2,400,000, to maintain SLCP’s ongoing operations during a period when costs to operate the school were increasing significantly.  Malone also used the increased state funding to give SLCP a competitive advantage over St. Louis Public Schools and other St. Louis Charter Schools when recruiting students.  As Missouri state funding follows the student, each St. Louis resident student successfully recruited to SLCP meant an increase in funding for SLCP and a decrease in funding for St. Louis Public Schools.  The additional funds provided to SLCP were used to pay for resources which were not equally accessible to St. Louis Public Schools and other St. Louis Charter Schools.

United States Attorney Jeff Jensen stated, “What the former headmaster did through his deception, repeatedly over many years, was take advantage of the Missouri taxpayers, while obtaining an unfair advantage over the St. Louis Public Schools and other area charter schools. This was not a mistake.  Evidence proved Michael Malone’s actions were intentional and, unfortunately he got away with it for years.”  

"Michael Malone failed more than just students and staff at St. Louis College Prep Charter School," said Special Agent in Charge Richard Quinn of the FBI St. Louis Division. "By siphoning $2,400,000 from a finite pool of education dollars, he robbed students at other public and charter schools of additional resources they should have received."

Each charge of wire fraud carries a maximum possible penalty of twenty years imprisonment, a fine of $250,000 or both imprisonment and a fine.  In determining the actual sentence, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.

This case was investigated by the Federal Bureau of Investigation, with the cooperation and assistance of the Missouri Department of Elementary and Secondary Education and the Missouri State Auditor’s Office.  Assistant United States Attorney Hal Goldsmith is handling the case for the United States Attorney’s Office.

NEW ORLEANS– United States Attorney Peter G. Strasserannounced that PENH KANG (“KANG”), age 41, of Covington, Louisiana, was charged by a bill of information on August 25, 2020 with Making a False Declaration, in violation of Title 18, United States Code, Section 152(3).

According to the bill of information, on or about the 12th day of September 2017, in the Eastern District of Louisiana, KANG, knowingly and fraudulently made a material false declaration, certificate and verification under the penalty of perjury, as permitted under Section 1746 of Title 28, in and in relation to a case under Title 11, In re Penh Kang, No.17-12431, by submitting a Schedules of Assets and Liabilities and a Statement of Financial Affairs, in which the defendant fraudulently answered questions, in that KANG failed to disclose gambling losses of approximately $40,000 to $60,000, an interest in two Capital One Bank accounts, and a $50,000 life insurance policy.

U.S. Attorney Strasser reiterated that the bill of information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.

If convicted, KANG faces a maximum penalty of five (5) years imprisonment, followed by up to three (3) years of supervised release, a fine of up to $250,000.00, and a mandatory $100 special assessment.

The U.S. Attorney’s Office would also like to acknowledge the assistance of the Federal Bureau of Investigation and the Office of the U.S. Trustee for the Eastern District of Louisiana with this matter. The prosecution of this case is being handled by Assistant U.S. Attorney Brian M. Klebba, Supervisor of the Financial Crimes Unit.

PHILADELPHIA – United States Attorney William M. McSwain announced that Leonardo Dan Almonte-Fernandez, 39, of Philadelphia, PA, was charged by Indictment with one count of malicious damage of a building by means of fire affecting interstate commerce, one count of the use of fire to commit another felony, and three counts of wire fraud.

According to court documents, on April 25, 2020, Almonte-Fernandez allegedly set fire to his business, Chevere Mini Market, at 1443 E. Luzerne Street in Philadelphia. The defendant, who rented the basement, first, and second floors of the building, was behind on his lease payments and had recently been cited by the Philadelphia Department of Public Health for underage tobacco sales. Following the fire, he allegedly submitted fraudulent claims to State Farm Fire and Casualty Company seeking $200,000 in insurance proceeds for damages resulting from the fire, for which he claimed no involvement.

“As alleged in the Indictment, Almonte-Fernandez has a brazen disrespect for the law – and for the safety of his neighbors in this densely-populated residential area,” said U.S. Attorney McSwain. “He put other people’s homes and lives at risk, and then attempted to steal insurance money. Arson is a despicable crime. Together with our federal and local partners, we are committed to doing everything possible to punish and prevent it.”

“Arson is a dangerous crime and a very real threat to our community,” said John Schmidt, acting Special Agent in Charge of ATF’s Philadelphia Field Division. “We routinely work with our partners from the Philadelphia Police Department and Fire Marshal’s Office to build these complex and violent arson cases. Rest assured, ATF along with our law enforcement partners who round out our Arson and Explosives Task Force is dedicated to seeking justice against those who use fire as a weapon.”

“The Philadelphia Fire Marshals Office remains committed to investigating acts of arson throughout the City. We are grateful to the US Attorney’s Office and all of our partners for their ongoing help and support,” said Deputy Chief Fire Marshal Dennis J. Merrigan.

If convicted, the defendant faces a maximum possible sentence of 100 years’ imprisonment, a 10-year mandatory minimum term of imprisonment, up to three years’ supervised release, a $1.25 million fine, and a $500 special assessment.

The case was investigated by the Bureau of Alcohol, Tobacco, Fire Arms and Explosives Arson and Explosives Task Force, the Philadelphia Fire Marshal’s Office and the Philadelphia Police Department, and is being prosecuted by Assistant United States Attorney Sarah Damiani.

An indictment, information or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.

PHILADELPHIA – United States Attorney William M. McSwain and Assistant Attorney General for National Security John C. Demers announced that the following defendants were indicted on charges of conspiracy, violating the International Emergency Economic Powers Act (“IEEPA”), and conspiracy to commit money laundering based on their attempt to transact in sanctioned Iranian petroleum:

• Nicholas Hovan, age 34, of New York, NY;
• Zhenyu Wang, a/k/a “Bill Wang,” age 39, of Dallas, TX;
• Robert Thwaites, age 30, of Dallas, TX; and
• Daniel Ray Lane, age 39, of McKinney, TX.

The Indictment alleges that from May 2019 to February 2020, the defendants conspired in Philadelphia and elsewhere to arrange for the purchase of petroleum from the Islamic Republic of Iran, in violation of United States economic sanctions imposed on Iran, for sale to a refinery in the People’s Republic of China. They also allegedly conspired to launder the proceeds of the sale through shell entities and offshore financial accounts to disguise the nature of the transaction. More specifically, the defendants are charged with conspiring to purchase sanctioned Iranian petroleum, to sell the petroleum to a Chinese refinery, to conceal the origin of the petroleum (including by bribing a Chinese official), and to obtain Antigua passports to open Swiss bank accounts through which the proceeds would be laundered.

In February 2020, the defendants were arrested pursuant to a criminal complaint. As previously reported, the defendants planned two shipments of oil per month going forward, all for an expected profit of roughly $28 million-per-month.

“It doesn’t get much lower than attempting to get rich by flouting the United States’ national security interests,” said U.S. Attorney McSwain. “The defendants here allegedly jeopardized the safety and security of the United States by scheming to get in bed with Iran and China. This type of conspiracy deserves the full condemnation of my Office -- and it has it.”

If convicted, each defendant faces a maximum possible sentence of 45 years in prison, a $1.75 million fine, a three year term of supervised release, and a $300 special assessment.

The case was investigated by the Federal Bureau of Investigation and is being prosecuted by First Assistant U.S. Attorney Jennifer Arbittier Williams and Assistant U.S. Attorney Michael J. Rinaldi, in partnership with Trial Attorney David Recker of the Department of Justice’s National Security Division, Counterintelligence and Export Control Section.

An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.

CAMDEN, N.J. – A Camden, New Jersey, man today admitted his role in a scheme that netted tens of thousands of dollars in government funds using fraudulently procured electronic benefits transfer (EBT) cards, U.S. Attorney Craig Carpenito announced.

Jose Garcia, 53, pleaded guilty by videoconference before U.S. District Court Judge Renée Marie Bumb to an information charging him with one count of conspiracy to defraud the United States and one count of defrauding the U.S. Department of Agriculture’s (USDA) Supplemental Nutrition Assistance Program (SNAP).

Garcia and his co-defendants, Luciano Estevez, 51, also of Camden; Octavio Rodriguez, 51, of Pennsauken, New Jersey; and Juan Melo, 57, of Woodlynne, New Jersey, were previously charged by separate complaints in August 2019 with participating in the conspiracy and defrauding SNAP. Estevez, Rodriguez, and Melo all previously pleaded guilty to participating in the conspiracy and defrauding SNAP. 

SNAP, formerly known as the food stamp program, is administered by the USDA to assist low-income individuals and families with the purchase of groceries and food items. SNAP recipients receive EBT cards, similar to commercial debit cards, to make food purchases. Retailers authorized to accept SNAP benefits have EBT terminals to process the food purchases. Food purchases are made by swiping the EBT card at the terminal, and having customers enter a Personal Identification Number (PIN). The EBT terminal verifies the PIN, determines whether the customer’s account balance is sufficient to cover the proposed transaction, and informs the retailer whether the transaction should be authorized or denied. The amount of the purchase is deducted electronically from the SNAP benefits reserved for the customer and the purchase amount is credited to the retailer’s designated bank account.

According to documents filed in this case and statements made in court:

Garcia, Estevez, Rodriguez, Melo, and others allegedly targeted low-income individuals who possessed or had access to EBT cards, and unlawfully purchased the cards from these individuals in exchange for cash and controlled substances. Two confidential sources working with law enforcement engaged in 43 controlled transactions involving EBT cards totaling more than $40,500, which they exchanged for cash and controlled substances, including prescription opioids.

The defendants used the unlawfully procured EBT cards to purchase bulk goods and food items from large national superstores. These goods and food items were often then resold in small convenience and grocery stores owned or affiliated with the defendants or their associates, resulting in a profit for the defendants. Hundreds of EBT cards fraudulently procured by the defendants were used at these superstores, resulting in the misappropriation of tens of thousands of dollars in government funds.

Estevez also unlawfully procured an EBT terminal registered to a superstore in Philadelphia, Pennsylvania. to use at his small grocery store in Camden, which was not registered as a lawful SNAP merchant in the USDA program. Through this terminal, the scheme netted an additional approximately $110,000 in SNAP funds. 

The conspiracy count to which Garcia pleaded guilty carries a maximum penalty of five years in prison and a fine of $250,000, or twice the gross gain or loss from the offense. The SNAP fraud offense to which Garcia pleaded guilty carries a maximum penalty of 20 years in prison and a fine of $250,000, or twice the gross gain or loss from the offense.  Garcia’s sentencing is scheduled for Jan. 4, 2020. 

U.S. Attorney Carpenito credited special agents of the U.S. Department of Agriculture-Office of Inspector General, Northeast Region, under the direction of Special Agent in Charge Bethanne M. Dinkins; the U.S. Department of Health and Human Services-Office of Inspector General, under the direction of Special Agent in Charge Scott J. Lampert; the FBI Philadelphia Field Office, South Jersey Resident Agency, under the direction of Special Agent in Charge Michael J. Driscoll in Philadelphia; and the Camden County Police Department, under the direction of Chief of Police Joseph D. Wysocki, with the investigation leading to today’s guilty plea.

The government is represented by Assistant U.S. Attorney Christina O. Hud of the U.S. Attorney’s Office’s Criminal Division in Camden.

Baltimore, Maryland – A federal grand jury in Maryland returned an indictment yesterday charging Jimmie Martin, aka Doodles, of Baltimore City, Maryland, with possession of a firearm by a prohibited person; possession with the intent to distribute a controlled substance; and possession of a firearm in furtherance of a drug trafficking crime. 

The indictment was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Timothy Jones of the Bureau of Alcohol, Tobacco, Firearms and Explosives(ATF) - Baltimore Field Division; Commissioner Michael Harrison of the Baltimore Police Department; State’s Attorney Marilyn Mosby of the State’s Attorney’s Office for Baltimore City; and Maryland Attorney General Brian Frosh.

According to the three-count indictment, on March 6, 2020, Martin, who was previously convicted of a felony offense, knowingly possessed a handgun and an extended magazine with the capacity to hold 30 cartridges of ammunition, and 29 cartridges of ammunition. The firearm and ammunition were in and affecting interstate and foreign commerce. Martin also possessed cocaine with the intention to distribute.

If convicted, Martin faces a maximum sentence of life in federal prison for possessing a firearm in furtherance of a drug trafficking crime.  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. 

An indictment is not a finding of guilt.  An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings. 

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.  Project Safe Neighborhoods (PSN) 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.

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; 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.        

United States Attorney Robert K. Hur commended the ATF, BPD, the Office of the State’s Attorney for Baltimore City, and the Maryland Attorney General’s Office for their work in this investigation.  Mr. Hur thanked Assistant U.S. Attorney Daniel Loveland, Jr. and Special Assistant U.S. Attorney Richard Gallena, who are prosecuting the case.

# # #

An indictment was returned today in federal court in Brooklyn charging Dzenan Camovic with robbery and firearms offenses for his June 3, 2020 knife and firearm attack on multiple New York City Police Department (NYPD) police officers in Brooklyn.  As set forth in the court filings, the defendant, a Bosnian national in the United States illegally, was motivated to attack the officers because of his interest in and support for violent Islamist extremism.  The defendant is currently in state custody and will be arraigned at a later date. 

The indictment charges Camovic with Hobbs Act robbery, using and discharging a firearm during that robbery, theft of a firearm that moved in interstate commerce and unlawful possession of a firearm as an illegal alien. 

William P. Barr, Attorney General; Seth D. DuCharme, Acting United States Attorney for the Eastern District of New York; Christopher A. Wray, Director, Federal Bureau of Investigation (FBI); William F. Sweeney, Jr., Assistant Director-in-Charge, FBI, New York Field Office, and Dermot F. Shea, Commissioner, New York City Police Department (NYPD), announced the charges.

“Dzenan Camovic, an illegal alien and Bosnian national, is alleged to have used the cover of chaos during recent civil unrest in New York City to launch a premeditated and cowardly attack from behind against two New York City Police officers, brutally slashing one with a knife, stealing his weapon and opening fire, and injuring several responding officers,” stated Attorney General Barr.  “We know that Camovic repeatedly yelled, ‘Allahu Akbar’ during his attack.  We know that he possessed a significant volume of materials that demonstrates his interest in and support for violent Islamist extremism, including materials related to the Islamic State of Iraq and al-Sham (ISIS).  But the defendant’s access to the dark web and his use of encrypted communication platforms has created evidentiary roadblocks to fully learning his plans and who he discussed them with.  This is the second violent Islamist extremist attack on our land in the last nine months where the attacker used encrypted technology that can help cover his tracks and mask his communications.   If not for the heroism and bravery of the responding NYPD officers who returned fire and took the assailant down early in the attack, untold additional officers and innocents could have been killed or injured.

“As we have alleged in the indictment and set forth in related filings, just before midnight on June 3, 2020, the defendant launched a surprise attack on police officers standing post on the streets of Brooklyn, nearly ending their lives.  After stabbing a police officer in the neck, the defendant ripped a 9mm service pistol away from an officer and shot at the officers while perversely invoking religion,” stated Acting U.S. Attorney DuCharme.  “Despite engaging in technical tradecraft that covered some of his tracks, this defendant cannot escape the reach of the investigators and prosecutors who are committed to making sure that he faces justice for his extremely serious crimes.”  Mr. DuCharme expressed his grateful appreciation to the New York Joint Terrorism Task Force as well as the Kings County District Attorney’s Office for their outstanding work.

“Two New York City police officers, who swore an oath to protect and serve, were heinously ambushed in the line of duty at the hands of Dzenan Camovic as alleged in today’s indictment,” stated FBI Director Wray. “As fellow Americans were exercising their rights to demonstrate, these brave law enforcement officers were brutally attacked to further a violent agenda associated with ISIS and al-Qaeda in the Arabian Peninsula. This case demonstrates that the FBI remains steadfast in our fight to protect the U.S. from extremists who wish to harm our citizens and fellow law enforcement officers.”

“Several days into protests that erupted in New York City and throughout the country, we allege Dzenan Camovic, motivated by ISIS-inspired ideology, ambushed three NYPD officers on the streets of Brooklyn and caused serious injury to those officers.  As he commenced his attack, the NYPD officers were doing what the citizens of our city ask them to do every day - to stand watch and protect their fellow New Yorkers. Mr. Camovic's alleged behavior has no place in our community. His assault on the officers was an attack against the entire New York City community.  Our society has never tolerated this type of behavior, and today's federal charges will ensure Mr. Camovic isn't a threat to society again,” stated FBI Assistant Director-in-Charge Sweeney. 

“Dzenan Camovic, as outlined in the indictment, was a consumer of terrorist propaganda and calls for violence by groups like al-Qaida and ISIS. His premeditated ambush of two New York City police officers can never be accepted. As the investigation continues into his motives, these significant federal charges reinforce the notion that an attack against police officers is an attack against society,” stated NYPD Commissioner Shea.   

On the evening of June 3, 2020, in the midst of a public health emergency and while New York City was under a nightly curfew order, the defendant allegedly carried out his attack on NYPD police officers who were assigned to an anti-looting post near the intersection of Flatbush and Church Avenues in Brooklyn, New York.  At approximately 11:30 p.m., Camovic walked past two uniformed police officers on foot patrol and appeared to crouch for several minutes watching them.  Security footage shows that Camovic then moved around the block in an apparent effort to approach the two police officers from behind. 

At approximately 11:50 p.m., Camovic rounded the corner from Flatbush Avenue onto Church Avenue and stabbed one of the officers (“Officer 1”) in the neck with a knife.  After stabbing the first officer (“Officer 1”), Camovic chased the second officer (“Officer 2”), lunging at him and attempting to stab him.  Camovic then ran back to Officer 1, attacked him, forcibly took control of Officer 1’s firearm and fired multiple shots at Officer 2 and other officers who had responded to the scene.  Responding officers ultimately shot Camovic and took him into custody.  Several officers were wounded during Camovic’s attack and robbery, including Officer 2 who was shot in the hand.

During his attack on the police officers, Camovic repeatedly shouted “Allahu Akbar,” a common Arabic phrase meaning “God is the greatest,” that has been used by perpetrators of violent jihadist terror attacks during the commission of violent attacks.  The government’s investigation has revealed that, prior to the attack, Camovic possessed a significant volume of radical jihadist propaganda. 

The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty. 

If convicted, Camovic faces a maximum sentence of life in prison. 

The government’s case is being handled by the Office’s National Security and Cybercrime Section.  Assistant United States Attorneys Craig R. Heeren, Artie McConnell and Josh Hafetz are in charge of the prosecution.

The Defendant:

DZENAN CAMOVIC
Age:  20
Brooklyn, New York

E.D.N.Y. Docket No.  20-CR-326 (RPK)

CHARLOTTE, N.C. – A member of the North Carolina House of Representatives pleaded guilty today to making a false statement to a bank and failing to file an income tax return, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina.

David R. Lewis, 49, of Dunn, North Carolina, pleaded guilty to one count of making a false statement to a bank and one count of failing to file a tax return before U.S. Magistrate Judge David S. Cayer of the Western District of North Carolina.  A sentencing hearing will be set at a later date.

According to documents filed with the court, Lewis has served as a Representative in the North Carolina House of Representatives since 2002, representing District 53.  Lewis also owned and operated Lewis Farms, a farming corporation in North Carolina.

On or about Aug. 1, 2018, Lewis opened a bank account in the name of “NC GOP, Inc.”  In completing the application to open the account, Lewis falsely certified to the bank that NC GOP Inc. was a corporation formed in North Carolina, of which Lewis was president.  In fact, NC GOP Inc. was not a legal entity registered in North Carolina or in any other state.  Lewis then used the NC GOP Inc. bank account to misappropriate campaign funds by disguising transfers from his campaign account to the NC GOP Inc. account as lawful contributions to the North Carolina Republican Party (commonly called the NCGOP).  NC GOP Inc. had no actual association to the North Carolina Republican Party. 

To that end, on or about July 31, 2018, Lewis caused a check to be written in the amount of $50,000 from his campaign account, made payable to NCGOP.  Lewis caused this $50,000 expenditure to be reported to the North Carolina Board of Elections as a lawful contribution to the North Carolina Republican Party.  Rather than sending the check to the North Carolina Republican Party, however, Lewis deposited the check into the NC GOP Inc. bank account immediately after opening the account on Aug. 1, 2018.  The same day, Lewis transferred the majority of the funds in the NC GOP, Inc. account to his bank account for Lewis Farms, and used the remainder to pay rent on his residence.

Additionally, on or about Aug. 15, 2018, Lewis purchased a cashier’s check in the amount of $15,000 from his campaign account, made payable to NC GOP Inc.  Lewis caused this $15,000 expenditure to be reported as a lawful contribution to the North Carolina Republican Party.  That same day, however, rather than sending the check to the North Carolina Republican Party, Lewis deposited the check into the NC GOP Inc. account and subsequently transferred the funds to his bank account for Lewis Farms.

At a later date, Lewis made two contributions in the amount of $50,000 and $15,000 to the North Carolina Republican Party from one of his personal bank accounts.  After using the NC GOP Inc. account to conduct the transactions described above, Lewis closed the account.

Lewis also admitted to willfully failing to file a tax return for calendar year 2018.

This case was investigated by the FBI in Charlotte and IRS-Criminal Investigation. Trial Attorneys Erica O’Brien Waymack and James C. Mann of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorneys William T. Stetzer and Dana O. Washington of the U.S. Attorney’s Office for the Western District of North Carolina are prosecuting the case.

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.