Month: April 2022

Source: United States Department of Justice News

A member of the Seminole Nation of Oklahoma was sentenced today to more than 12 years in prison for his conduct in connection with a homicide that took place in 2017 within Indian Country in Oklahoma. The defendant was sentenced to 155 months for kidnapping and 120 months for being a felon in possession of a firearm, to run concurrently, followed by five years’ supervised release.

According to court documents, Nicholas Earl Faulkner, 32, of Holdenville, Oklahoma, pleaded guilty to kidnapping and being a felon in possession of a firearm in May 2019. According to his plea, in April 2017, Faulkner was living with co-defendant Matthew Armstrong, who was involved in smuggling contraband into various prisons and jails for the Indian Brotherhood (IBH), a prison-based Indian gang active in Oklahoma.

According to court documents, on April 16, 2017, at Armstrong’s residence, Armstrong had a dispute over drugs with the victim, who was also staying at the home. Armstrong and Faulkner took the victim into the woods behind the residence where Armstrong tied her to a tree. Faulkner brought Armstrong the binding materials, at Armstrong’s direction. Faulkner and Armstrong left the victim tied to the tree for several hours and then returned with a rifle. Armstrong shot the victim twice killing her. Faulkner then took the gun and left the area at the direction of Armstrong.

Armstrong pleaded guilty in October 2021 to murder in Indian country, kidnapping and possession with intent to distribute methamphetamine. He will be sentenced at a later date and faces a maximum penalty of life in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney Christopher J. Wilson of the Eastern District of Oklahoma, and Special Agent in Charge Edward Gray of the FBI’s Oklahoma City Field Office made the announcement.

The FBI and the Oklahoma State Bureau of Investigation investigated the case.

Trial Attorneys Rami Badawy and Brian Morgan of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Zach Parsons of the Eastern District of Oklahoma prosecuted the case.

Source: United States Department of Justice News

In an indictment unsealed today, a federal grand jury in Del Rio, Texas, indicted a tax return preparer for willfully helping clients file false tax returns with the IRS.

According to the indictment, in 2016 and 2017, Adela Cruz prepared tax returns for her clients that included false education credits, dependent information, and business profits and losses. Cruz allegedly charged the clients between $200 and $500 for each return. Cruz allegedly also falsified her own individual income tax returns for 2015 and 2016, claiming false education credits she was not entitled to receive.

If convicted, Cruz faces a statutory maximum sentence of three years in prison for each count of filing a false tax return for herself and her clients. She also faces a period of supervised release and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Ashley C. Hoff for the Western District of Texas made the announcement.

IRS-Criminal Investigation is investigating the case.

Trial Attorneys Robert A. Kemins and Nicholas J. Schilling, Jr. of the Tax Division are prosecuting the case.

An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

Source: United States Department of Justice

Daniel Markus Inc., which operated pawn shops in New Jersey, and its owner have agreed to pay $50,000 in civil penalties to settle allegations that the company violated the False Claims Act and the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA) by obtaining more than one Paycheck Protection Program (PPP) loan in 2020. The company also agreed to repay the duplicative PPP loan in full to its lender, relieving the U.S. Small Business Administration (SBA) of liability to the lender for the federal guaranty of approximately $240,000 on the improper loan.   

“PPP loans were intended to provide critical relief to small businesses,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department is committed to pursuing those who knowingly violated the requirements of the PPP or other COVID-19 assistance programs and obtained relief funds to which they were not entitled.”

“This resolution demonstrates that the department will identify those who took advantage of relief packages meant to help the American people and will take steps to recover ill-gotten funds whenever possible,” said Associate Deputy Attorney General Kevin A. Chambers, the department’s Director of COVID-19 Fraud Enforcement.

“OIG continues to identify and bring to justice anyone who wrongfully obtains benefits from SBA programs,” said Special Agent-in-Charge Amaleka McCall-Brathwaite for SBA Office of Inspector General (OIG). “OIG remains committed to rooting out bad actors and protecting the integrity of SBA programs. I want to thank the Department of Justice and our law enforcement partners for their dedication and pursuit of justice.”

Congress created the PPP in March 2020, as part of the Coronavirus Aid, Relief and Economic Security (CARES) Act, to provide emergency financial support to the millions of Americans suffering the economic effects caused by the COVID-19 pandemic. The CARES Act authorized billions of dollars in forgivable loans to small businesses struggling to pay employees and other business expenses. Throughout 2020, PPP loan applicants were required to certify that they would not receive more than one PPP loan prior to Dec. 31, 2020. This settlement resolves allegations that Daniel Markus Inc. knowingly and improperly received and retained a second, duplicative PPP loan in 2020.

The settlement with Daniel Markus Inc., and its owner, Margarita Risis, resolved a lawsuit filed under the whistleblower provision of the False Claims Act, which permits private parties to file suit on behalf of the United States for false claims and share in a portion of the government’s recovery. The civil lawsuit was filed by J. Bryan Quesenberry, and, as part of the resolution, he will receive approximately $3,500 as a share of the False Claims Act recovery.  

The resolution obtained in this matter was the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch, Fraud Section and the U.S. Attorney’s Office for the District of New Jersey, with assistance from the SBA’s Office of General Counsel and Office of the Inspector General.

This matter was handled by Trial Attorney Jared S. Wiesner of the Civil Division and Assistant U.S. Attorney David V. Simunovich of the District of New Jersey.

On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. Run out of the Office of the Deputy Attorney General, the Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international actors committing civil and criminal fraud and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.

Tips and complaints from all sources about potential fraud affecting COVID-19 government relief programs can be reported by visiting the webpage of the Civil Division’s Fraud Section, which can be found here. Anyone with information about allegations of attempted fraud involving COVID-19 can also report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

The claims resolved by the settlement are allegations only, and there has been no determination of liability.

Source: United States Department of Justice News

 United States Attorney Clint Johnson today announced the results of the April 2022 Federal Grand Jury B.

The following individuals have been charged with violations of United States law in indictments returned by the Grand Jury. The return of an indictment is a method of informing a defendant of alleged violations of federal law, which must be proven in a court of law beyond a reasonable doubt to overcome a defendant’s presumption of innocence.

Samuel Goana-Gonzalez. Unlawful Reentry of a Removed Alien. Goana-Gonzalez, 37, is charged with unlawfully reentering the United States after being removed on March 2, 2011, at or near Laredo, Texas. U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations is the investigative agency. Assistant U.S. Attorney Charles M. McLoughlin is prosecuting the case. 22-CR-102

Michael Dylan Hedrick. Assault with a Dangerous Weapon with Intent to do Bodily Harm in Indian Country; Carrying, Using, Brandishing, and Discharging a Firearm During and in Relation to a Crime of Violence (superseding). Hedrick 28, of Tulsa, allegedly struck a victim with a vehicle with the intent to do bodily harm on Nov. 28, 2021. He is further alleged to have shot at the same victim plus two others on Nov. 6, 2021. The Bureau of Alcohol, Tobacco, Firearms and Explosives and Tulsa Police Department are the investigative agencies. Assistant U.S. Attorney Richard M. Cella is prosecuting the case. 22-CR-05

Denim Lee Blount, Hunter Hobbes. Conspiracy to Carry, Use, and Brandish a Firearm During and in Relation to a Crime of Violence (Counts 1 and 4); Attempted Carjacking (Count 2); Carrying, Using, Brandishing, and Discharging a Firearm During and in Relation to a Crime of Violence (Count 3); Robbery in Indian Country (Count 5); Felony Murder in Indian Country (Count 6); Causing Death by Carrying, Using, and Discharging a Firearm During and in Relation to a Crime of Violence (Count 7); Obstruction of Justice by Killing a Victim (Count 8). On May 8, 2021, at 10:29 pm, two men later identified as Hobbs, 20, of Bixby, and Blount, 19, of Tulsa, approached a man who was attempting to hook up his SUV and trailer in an apartment complex parking lot. Based on surveillance footage, Blount pointed a shotgun at the man, while Hobbs pointed a rifle at him. The two ordered the victim to get out of his vehicle. When the victim refused, both men allegedly shot him multiple times. The two then fled, leaving the victim and his vehicle behind. The victim was transported to St. Francis Hospital for non-life threatening injuries. Hobbs and Blount are also charged with conspiring to carry, use, and brandish firearms during a robbery in the early morning hours of May 13, 2021, at Haikey Creek Park in Broken Arrow. During the robbery, the two allegedly shot and killed Caleb Vaughn Collier and Kelly Ray Olen John Landsaw-Davis before fleeing the scene in Collier’s stolen vehicle. In this 2nd superseding indictment, Blount and Hobbs are also charged with killing the two victims to prevent them from identifying the defendants to authorities. The FBI, Tulsa and Broken Arrow Police Departments, and U.S. Marshals Service are the investigative agencies. Assistant U.S. Attorneys Christopher J. Nassar and Leah Paisner are prosecuting the case. 21-CR-233

Kawaun Thelma Hopkins. First Degree Burglary in Indian Country; Second Degree Burglary in Indian Country. On Dec. 2, 2021, 27-year-old Hopkins, a non-Indian of Tulsa, broke into a Native American victim’s residence while it was occupied and stole a purse containing cash and other valuables. On a separate occasion on Dec. 12, 2021, Hopkins a broke into an unoccupied residence, owned by a second Native American victim, with the intent to steal property or commit any other felony. The Tulsa Police Department and FBI are the investigative agencies. Assistant U.S. Attorney George Jiang is prosecuting the case. 22-CR-103

Derius Donovan Ledet. Felon in Possession of a Firearm and Ammunition. On March 22, 2022, Ledet, 32, of Bristow, was charged with being a felon in possession of a Rossi .38 Special revolver and five rounds of ammunition. The Tulsa Police Department and Oklahoma Highway Patrol are the investigative agencies. Assistant U.S. Attorney Justin G. Bish is prosecuting the case. 22-CR-112

Jamal Jawon Lamont McShan. Assault of an Intimate/Dating Partner by Strangling and Attempting to Strangle in Indian Country. On April 4, 2022, McShan, 21, of Tulsa, assaulted an intimate partner by strangling her. The FBI and Tulsa Police Department are the investigative agencies. Assistant U.S. Attorney Cheryl L. Baber is prosecuting the case. 22-CR-104

Tyler Craig Mitchell. Assault of an Intimate/Dating Partner by Strangling, Suffocating, and Attempting to Strangle and Suffocate in Indian Country; Kidnapping in Indian Country. Mitchell, 33, of Adair, allegedly kidnapped and strangled an intimate partner on July 7, 2020. The Delaware County Sheriff’s Office is the investigative agency. Assistant U.S. Attorney Victor A.S. Régal is prosecuting the case. 22-CR-105

Scott Edward Parker. Assault with a Dangerous Weapon with Intent to do Bodily Harm in Indian Country. On Jan. 7, 2022, Parker, 54, of Broken Arrow, allegedly pointed a firearm at a female victim and her family while both were driving on Highway 169 in Tulsa. The Bureau of Alcohol, Tobacco, Firearms and Explosives and Tulsa Police Department are the investigative agencies. Assistant U.S. Attorney John A. Brasher is prosecuting the case. 22-CR-106

Garret Wayne Pulliam. Arson in Indian Country; Arson. On March 26, 2022, Pulliam, 36, set fire his room at the Hickory Inn Motel located in Grove, causing lives to be placed in danger and destruction to the property. The Bureau of Alcohol, Tobacco, Firearms and Explosives, Grove Police Department and Cherokee Nation Marshal’s Service are the investigative agencies. Assistant U.S. Attorney Alex M. Scott is prosecuting the case. 22-CR-113

Source: United States Department of Justice News

PITTSBURGH, PA — A resident of Wilkinsburg, Pennsylvania, has been sentenced in federal court to 15 months’ imprisonment followed by three years of supervised release on his conviction of conspiracy to commit an offense against the United States, United States Attorney Cindy K. Chung announced today.

United States District Judge Robert J. Colville imposed the sentence on Katrae Smith, age 19, formerly of Pittsburgh PA 15221.

According to information presented to the court, in and around April 2021 and June 2021, Smith conspired with others to obtain firearms using his co-defendant, the “straw purchaser.” The conspirators communicated with each other using their cellular phones on multiple occasions in order to unlawfully acquire firearms. Smith’s offense occurred over several months and resulted in the unlawful acquisition of multiple firearms. The Wilkinsburg Police Department recovered one of those firearms while responding to a 911 call. Smith was found with a loaded Glock model 19x, 9mm caliber pistol near him. A trace of the firearm revealed that his co-defendant had purchased that firearm six days prior.

Assistant United States Attorney Brendan J. McKenna prosecuted this case on behalf of the government.

United States Attorney Chung commended the Bureau of Alcohol, Tobacco, Firearms and Explosives for the investigation leading to the successful prosecution of Smith.