Security News: Three California Women Indicted For Conspiracy To Commit Wire Fraud And Related Offenses

Source: United States Department of Justice News

HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that on March 23, 2022, Davida Algie Fortenberry, Laje Elise Ford, and Chartanae Ajanee Lovely, all from Oakland, California, were indicted by a federal grand jury on wire fraud and conspiracy to commit wire fraud charges.

According to United States Attorney John C. Gurganus, the indictment alleges that between May 2020 and June 2021, Fortenberry, Ford and Lovely, working with other unnamed co-conspirators, defrauded numerous victims using fraudulently obtained bank account information from US banks and foreign banks. The victims included Giant Food Stores in the Middle District of Pennsylvania.  The indictment also alleges that the women possessed more than 15 fraudulently obtained financial access devices.  The indicted conspiracy took place in 13 states and Washington DC, and it resulted in losses exceeding $400,000. 

The case was investigated by the United States Secret Service, Harrisburg Office. Assistant U.S. Attorney Paul J. Miovas, Jr. is prosecuting the case.

The maximum penalty under federal law for wire fraud and conspiracy to commit wire fraud is 20 years’ imprisonment.  These charges may also carry a fine and a term of supervised release following imprisonment. 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.

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

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Security News: U.S. ATTORNEY’S OFFICE FOR THE DISTRICT OF MONTANA COMMEMORATES SEXUAL ASSAULT AWARENESS MONTH

Source: United States Department of Justice News

BILLINGS – The Department of Justice and U.S. Attorney’s Office for the District of Montana join survivors, advocates, and communities nationwide in April to observe Sexual Assault Awareness and Prevention Month. Sexual violence is far too prevalent, and it is important to not only to raise awareness of the myriad forms of sexual violence, but to engage in meaningful prevention efforts, take action to hold offenders accountable, and care for survivors in a trauma-informed manner.

U.S. Attorney Leif M. Johnson joins the Department of Justice and the Office on Violence Against Women (OVW) in applauding the recent passage of the Violence Against Women Reauthorization Act of 2022 (VAWA 2022), which treats sexual assault as the serious violation it is and creates new programs and initiatives that provide survivors of sexual violence with increased access to services and justice.

One such program is the Violence Against Women Tribal Special Assistant U.S. Attorney (SAUSA) program, which cross-designates tribal prosecutors as SAUSAs to support tribes and U.S. Attorneys’ Offices in investigating and prosecuting cases involving sexual assault, domestic and dating violence, stalking, and certain sex trafficking offenses. VAWA 2022 also expands outreach to survivors in underserved communities, including by improving access to sexual assault medical forensic examinations for survivors in rural areas, providing community-specific services for LGBT survivors, and restoring tribes’ jurisdiction to prosecute non-Indian perpetrators of sexual violence and sex trafficking, among certain other offenses committed on tribal lands.

“Sexual violence has no place in society, yet it is a real, horrible and under-reported crime, especially in our tribal communities. All individuals, women, men and children, deserve to be safe from violence, including sexual violence. This office will continue to seek justice for victims by prosecuting and holding offenders accountable and supports healing and recovery for survivors while strengthening prevention and education efforts,” U.S. Attorney Johnson said.

“During Sexual Assault Awareness and Prevention Month, and every month, OVW-funded programs across the nation provide essential services to survivors of sexual assault, responding to their needs, helping them heal, and supporting them as they pursue the justice they seek,” said OVW Principal Deputy Director Allison Randall. “The impact of sexual violence is felt by the entire community and can devastate survivors’ lives, which is why it is critical that VAWA 2022 strengthens not just services and justice interventions but also prevention.”  

According to the Centers for Disease Control and Prevention (CDC) 2015 National Intimate Partner and Sexual Violence Survey:

  • 43.6% of women and 24.8% of men have experienced contact sexual violence,
  • 21.3% of women and 2.6% of men reported being raped or subject to attempted rape in their lifetime,
  • 37% of women and 17.9% of men have experienced unwanted sexual contact.

And according to the National Institute of Justice (NIJ) study on Violence Against American Indian and Alaska Native Women and Men, American Indian and Alaska Native (AI/AN) people face disproportionate levels of violence, including sexual assault. Approximately 56.1% of AI/AN women and 27.5% of AI/AN men report experiencing sexual violence in their lifetime, with many of these assaults at the hands of non-Indian perpetrators.

OVW funds resources in every jurisdiction, please see this website which lists OVW FY21 awards by state. In 2021, OVW awarded $7.1 million in grants to 11 organizations/resources in Montana for survivors of sexual assault.

OVW provides leadership in developing the nation’s capacity to reduce violence through the implementation of the Violence Against Women Act and subsequent legislation. Created in 1995, OVW administers financial and technical assistance to communities across the country that are developing programs, policies and practices aimed at ending domestic violence, dating violence, sexual assault and stalking. In addition to overseeing federal grant programs, OVW undertakes initiatives in response to special needs identified by communities facing acute challenges. Learn more at www.justice.gov/ovw.

If you or someone you know is experiencing or has experienced sexual violence, you are not alone and there are many services available to help, including the Sexual Assault Hotline, 1-800-656-HOPE (4673), and the StrongHearts Native Helpline, 1-844-7NATIVE (762-8483).

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Security News: Federal Officials Unveil Two Indictments Charging 14 People with Illegally Trafficking 400 Firearms into Philadelphia

Source: United States Department of Justice News

In both cases, the firearms were originally purchased in southern states before arriving in this large northeastern city, a phenomenon known as the ‘iron pipeline’

PHILADELPHIA – United States Attorney Jennifer Arbittier Williams, Bureau of Alcohol, Tobacco, Firearms and Explosives Philadelphia Field Division Special Agent in charge Matt Varisco announced federal charges in two separate interstate firearms trafficking cases at a press conference held at Philadelphia ATF Headquarters today. Both cases involve individuals illegally trafficking firearms from states in the southern United States into Philadelphia, a large northeastern city, a fact pattern which is known as the ‘iron pipeline.’ Taken together, both trafficking conspiracies are alleged to be responsible for illegally putting approximately 400 firearms on the streets.

In the first case, captioned United States v. Norman, et al, the following 11 defendants have been charged by Indictment with conspiracy to deal firearms without a license and to make a false statement to a federally licensed firearms dealer:

  • Fredrick Norman, 25, of Atlanta, GA;
  • Brianna Walker a/k/a “Mars, 23, of Atlanta, GA;
  • Charles O’Bannon a/k/a “Chizzy,” 24, of Villa Rica, GA;
  • Stephen Norman, 23, of Villa Rica, GA;
  • Devin Church a/k/a “Lant,” 24, of Villa Rica, GA;
  • Kenneth Burgos a/k/a “Peppito,” 23, of Philadelphia, PA;
  • Edwin Burgos a/k/a “Rock,” 29, of Philadelphia, PA;
  • Roger Millington, 25, of Philadelphia, PA;
  • Ernest Payton, 30, of Philadelphia, PA;
  • Roselmy Rodriguez, 22, of Philadelphia, PA; and
  • Brianna Reed, 21, of Shippensburg, PA.

Additionally, defendants Edwin Burgos and Kenneth Burgos were each charged with dealing firearms without a license.

In the second case, captioned United States v. Ware, et al, the following three people have been charged by Indictment with conspiracy to deal firearms without a license and to make a false statement to a federally licensed firearms dealer:

  • Muhammad Ware a/k/a “Moo,” 26, of Myrtle Beach, SC;
  • Haneef Vaughn a/k/a “Neef,” 25, of Philadelphia, PA; and
  • Jabreel Vaughn a/k/a “Breely,” 20, of Elkins Park, PA.

Additionally, defendant Muhammad Ware is charged with dealing firearms without a license.

United States v. Norman, et al:

Beginning in October 2020, ATF Special Agents identified multiple firearms which were recovered in the Philadelphia area as having been originally purchased in Georgia. The short time frame between the firearms’ purchase in Georgia and subsequent recovery in Philadelphia (known as a short “time to crime” period) indicated that the weapons may have been trafficked into the city.

According to the Indictment, subsequent investigation showed that over the course of six months, the conspiracy led by defendant Norman allegedly purchased nearly 300 firearms from dealers in and around Atlanta, and transported the firearms to Philadelphia for distribution and sale on the black market in exchange for approximately $116,000.

United States v. Ware, et al:

Beginning in March 2020, ATF Special Agents identified multiple firearms which were recovered in Philadelphia as having been originally purchased in South Carolina. Agents subsequently learned about a number of additional firearms recovered in Philadelphia with short “time to crime” periods that indicated they may have been trafficked into the city, just as in Norman, et al.

According to the Indictment, the recovered firearms were concentrated in a particular area of Philadelphia and were originally purchased near Myrtle Beach, SC. Subsequent investigation showed that defendant Ware had allegedly purchased several of the recovered firearms, and conspired and communicated with defendants Haneef Vaughn and Jabreel Vaughn, and others about the purchase, transportation and sale on the black market of over 100 illegal firearms.

“When I announced the All Hands On Deck initiative in April 2021, I vowed that our Office would do all we could to stop the violence ravaging our city and support the Philadelphia Police Department in its work,” said U.S. Attorney Williams. “Earlier this year, the Justice Department announced strategies to fight violent crime, including cracking down on firearms trafficking and the ‘iron pipeline’ – the illegal flow of guns sold in mostly southern states, transported up the East Coast, and found at crime scenes in northeastern cities like ours. The two indictments announced today, charging fourteen people with iron pipeline firearms trafficking conspiracies, show that we are aggressively focused on this work.”

“Preventing the illegal use and trafficking of firearms is a central focus of ATF’s strategy to combat violent crime and protect our communities,” said Matthew Varisco, Special Agent in charge of ATF’s Philadelphia Field Division. “Illegally purchased firearms often end up in the hands of violent offenders and affect communities near and far.  Ensuring firearms traffickers are aggressively investigated and swiftly brought to justice will remain a top priority for our firearms trafficking task force. And this collaborative effort between all of our law enforcement counterparts is a prime example of such.”

In Norman, et al: If convicted of all charges, Edwin Burgos and Kenneth Burgos face a statutory maximum penalty of 10 years in prison. All other defendants face a statutory maximum penalty of 5 years in prison.

In Ware, et al: If convicted of all charges, defendant Ware faces a statutory maximum penalty of 10 years in prison. Defendants Haneef Vaughn and Jabreel Vaughn each face a statutory maximum penalty of 5 years in prison.

These cases are 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 the Department’s 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 the local community to develop effective, locally-based strategies to reduce violent crime.

The Norman, et al case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives Philadelphia, Atlanta, and Harrisburg Field Offices, the Philadelphia Police Department, the Pennsylvania State Police, Homeland Security Investigations, and the U.S. Marshals, and is being prosecuted by Assistant United States Attorney Priya T. De Souza.

The Ware, et al case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and is being prosecuted by Assistant United States Attorney Mark Miller and Special Assistant United States Attorney Martin Howley.

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

Security News: Parma Heights Man Convicted of Distributing Fentanyl that Led to Fatal Overdose

Source: United States Department of Justice News

Acting U.S. Attorney Michelle M. Baeppler announced that a federal jury returned guilty verdicts on Thursday, April 7, 2022, against Defendant Marcus L. Sanders, 24, of Parma Heights, Ohio, following a four-day trial before Judge Benita Y. Pearson in Youngstown.  Sanders was found guilty of distributing fentanyl that led to the death of an individual and possession with intent to distribute fentanyl, heroin, N-Butyl Pentylone, cocaine and marijuana.

According to court documents and evidence presented at trial, on May 3, 2020, Middleburg Heights Police responded to a call for a suspected overdose at a residence.  First responders arrived and transported the individual to a hospital, where they were later pronounced deceased.  The Cuyahoga County Medical Examiner’s Office conducted an autopsy and determined the victim’s cause of death to be acute intoxication by fentanyl and diphenhydramine.

Law enforcement officials began an investigation into the overdose incident and identified Sanders as the person who had distributed the fentanyl that led to the fatal overdose.  Sanders was later arrested, and his residence and vehicle were searched.  During the search, officials obtained quantities of fentanyl, N-Butyl Pentylone, heroin, cocaine and marijuana. 

Sanders is scheduled to be sentenced on August 4, 2022, and faces a maximum possible sentence of life in prison.  

This case was investigated by the Middleburgh Heights Police Department and the DEA, with assistance from the Cuyahoga County Medical Examiner’s Office, the Cuyahoga County Regional Forensic Science Laboratory, and the FBI Cellular Analysis Survey Team.  This case was prosecuted by Assistant U.S. Attorneys James P. Lewis and Patrick P. Burke.

Security News: Belgrade construction company co-owner admits failing to pay $2.8 million in employee, employer taxes

Source: United States Department of Justice News

MISSOULA — The co-owner of H & H Earthworks, Inc., a Belgrade-based construction company that does commercial site-development work in four states, admitted to failing to pay the IRS approximately $2.8 million in employee and employer taxes, and instead, spent some of the money on personal expenses, including recreational and motorsport vehicles, U.S. Attorney Leif M. Johnson said today.

Melissa Lynne Horner, 42, of Bozeman, pleaded guilty on April 8 to one count of failure to truthfully account for and pay over withholding and F.I.C.A. taxes, a felony, and one count of failure to file employer’s quarterly return and pay tax, a misdemeanor, during an arraignment and plea change hearing.  Horner faces a maximum of five years in prison, a $250,000 fine and three years of supervised release on the felony charge. Horner was charged in a 34-count information.

A plea agreement reached by the parties calls for the government to seek the dismissal of 32 remaining counts and for Horner to be responsible for total restitution of $2,878,522 if the court accepts the agreement at sentencing.

U.S. Magistrate Judge Kathleen L. DeSoto presided. Sentencing was set for Aug. 10 before  U.S. District Judge Dana L. Christensen. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Horner was released pending further proceedings.

“As the financial executive for Earthworks, Horner withheld nearly $3 million from employee wages to cover payroll, Medicare and Social Security taxes.  Rather than pay over those amounts to the IRS as required by law, Horner spent the money on personal expenses like motorcycles, a motor home, and home renovations.  As the deadline for filing tax returns approaches, the public should be aware that people like Horner who willfully violate the tax laws will be investigated and charged with felony tax crimes that can result in significant penalties including prison time, fines, and restitution,” U.S. Attorney Johnson said.

“Payroll tax evasion is not just a crime against the United States Government, but also a crime impacting the employees of Earthworks as it results in the reduction of their benefits.” said Andy Tsui, IRS Criminal Investigation Special Agent in Charge, Denver Field Office. “IRS Criminal Investigation will vigorously pursue anyone who collects these taxes and uses these funds for their own personal gain.”

In court documents filed in the case, the government alleged that H & H Earthworks, Inc., is a Belgrade-based family business co-founded in 2004 by Horner, who is responsible for the financial portion of the business. Earthworks is a full-service commercial site-development firm whose projects include schools, shopping centers, hospitals and residential subdivisions in Montana, North Dakota, Wyoming and Idaho. The company employed between 20 and 60 employees during 2014 through 2019.

For approximately five years, beginning in March 2014 through 2019, Horner had Earthworks pay hundreds of thousands of dollars of expenditures for her personal benefit while, at the same time, it failed to pay over to the IRS payroll tax required to be withheld from Earthworks’ employees’ paychecks. Horner spent more than $100,000 to purchase and maintain personal motorsport vehicles, including dirt bikes and snowmobiles, $90,000 to a real estate title company in Bozeman, at least $50,000 on personal home renovations and $20,000 for a motorhome.

The government further alleged that Horner withdrew Federal Insurance Contribution Act (FICA) taxes from the wages paid to Earthworks employees and failed to pay over the trust fund taxes to the IRS. Horner also failed to pay over Earthworks’ portion of the FICA taxes (Social Security and Medicare taxes). In addition, Horner failed to file quarterly Forms 941, Employer’s Quarterly federal tax returns, prior to being notified of the criminal investigation. Horner subsequently filed the delinquent forms; however, she has not paid any of the outstanding tax liability for them. Horner knew she was required to account for and pay over the employment taxes and file the quarterly Forms 941 and willfully chose to violate this obligation.

Assistant U.S. Attorney Karla E. Painter is prosecuting the case, which was investigated by the IRS Criminal Investigation.

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