Month: July 2022

Source: United States Department of Justice News

PROVIDENCE – A North Providence man who was receiving COVID-relief unemployment benefits in Rhode Island, and fraudulently applied for and collected more than $20,000 in unemployment benefits from two other states, has been sentenced to eighteen months in federal prison, announced United States Attorney Zachary A. Cunha and Rhode Island Attorney General Peter F. Neronha.

Derrick Gadson, 35, pleaded guilty in federal court in April to two counts of wire fraud and one count of theft of government money, admitting to a federal judge that, while collecting unemployment benefits in Rhode Island in June 2020, he began filing for benefits in Massachusetts and Arizona, fraudulently claiming that he lived and worked in both states. The fraudulent applications were filed in names other than his own.

Gadson collected a total of $20,727 in federally funded unemployment insurance benefits that he was not entitled to receive.

At sentencing on Monday, U.S. District Court Judge William E. Smith sentenced Gadson to eighteen months of incarceration in federal prison to be followed by three years of federal supervised release. Gadson was ordered to pay restitution totaling $20,727.

This case, as well as other instances of criminal activity related to fraudulent applications for pandemic-related unemployment insurance benefits are being investigated jointly by the FBI, the Rhode Island State Police, and the U.S. Department of Labor – Office of Inspector General. Cases are jointly reviewed, charged, and prosecuted by a team of prosecutors that include Assistant U.S. Attorneys Denise M. Barton, Stacey P. Veroni, and G. Michael Seaman, and Rhode Island Assistant Attorney General John M. Moreira, chief of the Rhode Island Attorney General’s Public Integrity Unit.

Rhode Islanders who believe their personal identification has been stolen and used to fraudulently obtain unemployment benefits are urged to contact the Rhode Island State Police at financialcrimes@risp.gov or the FBI Providence office at (401) 272-8310.

In May 2021, the United States 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. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors 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.

 Anyone with information about allegations of attempted fraud involving COVID- 19 can 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.

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Source: United States Department of Justice News

Defendant Broke Windowpanes Next to Senate Door, Was Among First Rioters Inside Capitol Building

Source: United States Department of Justice News

A Cleveland man and member of the “8Ave” street gang known to operate in the city of Cleveland’s 5^th District was convicted by a federal jury on Monday, July 11, 2022, of participating in a conspiracy to distribute fentanyl, crack cocaine and illegal possession of a firearm.

Following a four-day trial, Kindell Smith, 32, of Cleveland, was convicted of conspiracy to distribute and possess with intent to distribute controlled substances, two counts of distribution of controlled substances, possession with intent to distribute controlled substances, namely fentanyl and possession of a firearm in furtherance of a drug trafficking crime along with being a felon in possession of a firearm.

According to court documents, on April 14, 2020, law enforcement officers with the Southeast Area Law Enforcement (SEALE) began an investigation into suspected drug trafficking activities of Smith.  As part of the investigation, authorities encountered Smith distributing fentanyl and cocaine near the 3200 block of Central Avenue in Cleveland. 

On May 19, 2020, authorities again encountered Smith, this time with codefendants Darrell Douglas and Dreshawn Maddox, who each have been convicted and sentenced at a prior date, distributing heroin from a vehicle.  During this encounter, authorities approached the vehicle and ordered the occupants to show their hands.  The vehicle then sped away from the scene and struck the driver’s side of a law enforcement vehicle. 

Officers removed the occupants from the vehicle and observed Smith attempting to hide a firearm under the driver’s seat.  The firearm belonging to Smith was later recovered along with various amounts of fentanyl and crack cocaine.

Smith is prohibited from possessing a firearm due to previous convictions of drug trafficking and felonious assault in the Cuyahoga County Common Pleas Court.

Smith is scheduled to be sentenced on October 25, 2022, and faces a maximum possible sentence of 25 years in prison. 

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Cleveland Division of Police and the Southeast Area Law Enforcement.  This case was prosecuted by Assistant U.S. Attorneys Payum Doroodian and Robert F. Corts.

Source: United States Department of Justice News

HOUSTON – A 38-year-old man who held citizenship in the United States and Ghana has been arrested following the return of an indictment in a nationwide romance fraud scheme, announced U.S. Attorney Jennifer B. Lowery.

Authorities took Kenneth Anim into custody today. He is expected to make his initial appearance before U.S. Magistrate Judge Peter Bray at 2 p.m. today.

A federal grand jury returned the five-count indictment July 6.

From 2014 to 2019, Anim and his co-conspirator created individual sham businesses, according to the charges. They allegedly operated as money mules in relation to various mail and wire fraud schemes including internet fraud and romance scams.

The indictment further alleges Anim also opened and maintained bank accounts to collect proceeds from the schemes and to send the money to himself, his co-conspirators and overseas.

If convicted, Anim faces up to 20 years in federal prison and a possible $500,000 maximum fine.

FBI conducted the investigation. Assistant U.S. Attorneys Belinda Beek and Grace Murphy are prosecuting the case.

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

Source: United States Department of Justice News

INDIANAPOLIS –United States Attorney Zachary A. Myers has been selected to chair the Cyber and Intellectual Property Subcommittee for the Attorney General’s Advisory Committee (AGAC). The Cyber Subcommittee is dedicated to addressing the complex issues arising at the intersection between law enforcement and high technology.

“Our country faces unprecedented threats from cybercriminals, including ransomware, massive breaches of sensitive data, complex transnational fraud schemes, and technology-facilitated exploitation of our children,” said U.S. Attorney Myers. “Law enforcement professionals do all we can to fight these crimes even as more technologies are used in attempts to deprive investigators of access to critical evidence. I am eager to work with my fellow United States Attorneys to advise the Department of Justice from the prosecutor’s perspective as we seek to hold cybercriminals accountable and keep our communities safe on the streets and online.”

Prior to his appointment as U.S. Attorney for the Southern District of Indiana, Myers spent over a decade as a federal prosecutor with a focus on technology-facilitated crime, including serving as Cybercrime Counsel, Computer Hacking and Intellectual Property prosecutor, and National Security Cyber Specialist.

U.S. Attorney Myers will collaborate with U.S. Attorneys from across the country to provide guidance to the AGAC on cyber and intellectual property matters impacting U.S. Attorney’s Offices across the country. He will also serve on the AGAC’s Subcommittees on White Collar Crime and Office Management & Budget.

Established in 1973, the AGAC and its subcommittees advise the Attorney General on matters of policy, procedure, and management impacting U.S. Attorneys’ Offices and represents the views of federal prosecutors across the country.