Month: May 2022

Source: United States Department of Justice News

RICHMOND, Va. – A Richmond man pleaded guilty today to defrauding the Paycheck Protection Program (PPP) of over $1 million in funds intended for small businesses affected by the COVID-19 Pandemic.

According to court documents, from April 2020 to April 2021, Moe Ayemen Mathews, 51, with the assistance of his co-conspirator, submitted at least 38 fraudulent PPP loan applications to financial institutions for businesses the conspirators claimed to own and operate. In their first draw PPP applications, the conspirators falsely certified that the information and supporting documentation provided was true and accurate when, in fact, the applications contained false statements, false certifications, and fabricated tax documents. For instance, the conspirators repeatedly inflated or fabricated the average monthly payroll and number of employees working for their purported businesses, and they submitted fabricated tax documents to substantiate the false information provided in their PPP applications. Once their fraudulent applications were approved, the conspirators did not use the funds in accordance with the program’s requirements.

Additionally, after their first draw PPP applications were approved and funded, the conspirators submitted fraudulent second draw PPP applications predicated on their fraudulently-obtained first draw PPP loans. When submitting the second draw PPP applications for their purported businesses, the conspirators concealed the fact that they had intentionally and knowingly submitted false and misleading first draw PPP applications. Once these second-draw applications were approved, the conspirators used the loan proceeds contrary to the program’s requirements.  

Mathews is scheduled to be sentenced on October 7. He faces a maximum penalty of 30 years in prison. 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.

Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Stanley M. Meador, Special Agent in Charge of the FBI’s Richmond Field Office; Hannibal “Mike” Ware, Inspector General of the Small Business Administration (SBA); and Jay N. Lerner, Inspector General of the Federal Deposit Insurance Corporation (FDIC), made the announcement after Senior U.S. Districy Judge Henry E. Hudson accepted the plea.

The U.S. Attorney’s Office for the Eastern District of Virginia expresses its appreciation to the Virginia State Corporation Commission for their assistance with this investigation.

Assistant U.S. Attorney Kashan Pathan is prosecuting the case.

A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:22-cr-44.

Source: United States Department of Justice News

URBANA, Ill. – A Kankakee, Illinois, man, Jody Lagesse, 48, of the 100 block of North 7^th Ave., was sentenced on May 24, 2022, to seven years’ imprisonment in the Bureau of Prisons, to be followed by a 10-year term of supervised release, for attempted enticement of a minor and use of interstate facilities to attempt to transmit information about a minor.

At the sentencing hearing in front of U.S. District Judge Michael M. Mihm, the government presented evidence that on February 14, 2020, Lagesse attempted to persuade, induce, and entice an individual whom he believed had not attained the age of 18 years, to engage in sexual activity. Lagesse also knowingly used means of interstate commerce, the internet and a cellular telephone, with the intent to entice, encourage, offer, and solicit that person to engage in sexual activity.

Lagesse was indicted in March 2020 and pleaded guilty in January 2022.

“Our office is committed to working with federal and local partners to combat the scourge of online predators who target some of the most vulnerable members of our community,” said U.S. Attorney Gregory K. Harris. “Along with these efforts, we urge parents and guardians to closely monitor their children’s internet usage. You are part of our first line of defense against those who seek to victimize children.”

“The internet can be a haven for those intent on exploiting the innocence of children online. That’s why the FBI prioritizes our efforts to identify, investigate and arrest predators, ensuring they are held accountable for their actions.” said FBI Springfield Field Office Special Agent in Charge David Nanz.

“The collaboration between my office and the Department of Justice is essential to identifying individuals who exploit minors, and ensuring those predators are held accountable,” Attorney General Kwame Raoul said. “I appreciate our ongoing partnership with the U.S. Attorney’s office and look forward to continuing to protect Illinois communities from individuals who prey upon children.”

The Federal Bureau of Investigation, Springfield Field Office investigated the case. Special Assistant U.S. Attorney Shannon O’Brien, Deputy Bureau Chief with the Illinois Attorney General’s Office, Internet Crimes Against Children Task, represented the government in the prosecution.

The case was brought as part of Project Safe Childhood, a nationwide initiative by the Department of Justice to combat the epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.

Source: United States Department of Justice News

            WASHINGTON – A North Carolina man pleaded guilty today to a felony charge for his actions during the breach of the U.S. Capitol on Jan. 6, 2021. His and others’ actions disrupted a joint session of the U.S. Congress convened to ascertain and count the electoral votes related to the presidential election.

            Matthew Mark Wood, 25, of Reidsville, North Carolina, pleaded guilty in the District of Columbia to a felony charge of obstruction of an official proceeding and five related misdemeanor offenses. According to court documents, on Jan. 2, 2021, three days before he traveled to Washington, Wood sent an iMessage to another individual in which he stated, “If they want to raid Congress, sign me up, I’ll be brave heart in that bitch!”

            On Jan. 6, Wood illegally made his way to the West Plaza of the Capitol soon after the breach of a police line meant to secure the restricted grounds. Wood remained in the West Plaza for about an hour before climbing stairs to the Northwest Plaza. He was several feet behind those who broke out and climbed through the Capitol’s window next to the Senate Wing Door. He was the 10^th person to enter through that window, getting inside at approximately 2:13 p.m.

            Once inside, Wood and other rioters made their way to the hallway immediately outside the Senate Chamber. Once stopped in their advance by law enforcement there, Wood returned to the first floor and joined a growing group of rioters in the Capitol Crypt. At approximately 2:24 p.m., he sent an iMessage to a group chat, declaring, “We just broke through Capitol police, we are going to bust into the house chambers.”

            Wood subsequently followed others through the Small House Rotunda, up a staircase, and into the House Speaker’s office suite. While in that area, he entered at least three offices or other sensitive spaces, including the Speaker’s conference room. He then moved to the Rotunda and other areas of the Capitol, removing the ropes from stanchions he passed, calling protesters to follow, and staying in the building despite clouds of chemical irritant. When the Metropolitan Police Department arrived to assist the Capitol Police in clearing rioters from the Rotunda, Wood and other rioters did not immediately leave. It was not until approximately 3:31 p.m. that Wood finally left the Capitol through the East Rotunda Door.

            Wood was arrested on March 5, 2021, in Winston-Salem, North Carolina. He is to be sentenced on Sept. 23, 2022. He faces a statutory maximum of 20 years in prison and a fine of up to $250,000 on the obstruction charge and a total of 3 ½ years of additional time and additional fines for the five misdemeanor offenses. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

            The case is being prosecuted by the U.S. Attorney’s Office for the District of Columbia and the Department of Justice National Security Division’s Counterterrorism Section. Valuable assistance was provided by the U.S. Attorney’s Office for the Middle District of North Carolina.

            The case was investigated by the FBI’s Washington Field Office, which identified Wood as #71 on its seeking information photos, and the FBI’s Charlotte Field Office Valuable assistance was provided by the U.S. Capitol Police and the Metropolitan Police Department.

            In the 16 months since Jan. 6, 2021, more than 800 individuals have been arrested in nearly all 50 states for crimes related to the breach of the U.S. Capitol, including over 250 individuals charged with assaulting or impeding law enforcement. The investigation remains ongoing.

            Anyone with tips can call 1-800-CALL-FBI (800-225-5324) or visit tips.fbi.gov.

Source: United States Department of Justice News

SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that David Torres, age 33, of Wilkes-Barre, Pennsylvania, was sentenced on May 26, 2022, to 164 months’ imprisonment to be followed by a 5-year term of supervised release, by United States District Court Judge Robert D. Mariani, for trafficking in fentanyl.

According to United States Attorney John C. Gurganus, on December 13, 2019, Torres possessed with intent to distribute 45 grams of fentanyl, which corresponds to approximately 1,800 doses of the potentially lethal substance.  A search warrant executed at Torres’ home also uncovered an unlawfully possessed firearm.

The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Wilkes-Barre Police Department.  Assistant United States Attorney Jeffery St John prosecuted the case.

This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, 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 was also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin.  Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.

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