Month: September 2022

Source: United States Department of Justice News

TEXARKANA, Texas – Four individuals, including two Red River Army Depot (RRAD) officials, have been sentenced for federal violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.

Jeffrey Harrison, 44, of Texarkana, a former RRAD vendor, pleaded guilty on May 18, 2021, to bribing Jimmy Scarbrough, a former RRAD official, and was sentenced to 30 months in federal prison today by U.S. District Judge Robert W. Schroeder, III.  Harrison was also ordered to forfeit $300,000.

Justin Bishop, 52, of Clarksville, a former RRAD vendor, pleaded guilty on May 18, 2021, to bribing Scarbrough and was sentenced to 12 months and 1 day in federal prison on Sep. 6, 2022, by Judge Schroeder.  Bishop was also ordered to forfeit $55,000.

Devin McEwin, 43, of Avery, a former RRAD official, pleaded guilty on May 27, 2021, to receiving bribes from Harrison and was sentenced to a five-year term of federal probation, including eight months of home confinement.  McEwin was also ordered to forfeit $21,000 and pay a fine of $5,000.

Louis Singleton, 64, of Texarkana, a former RRAD official, pleaded guilty on April 27, 2022, to receiving bribes from Harrison and others and was sentenced to five years of federal probation, including eight months of home confinement, and was ordered to forfeit $18,000.

“The Red River Army Depot is a key component of our nation’s defense infrastructure and is the lifeblood of the surrounding community,” said U.S. Attorney Brit Featherston.  “Scarbrough, Harrison, Bishop, McEwin, Singleton, and others exploited the public trust in order to line their own pockets and undermined the warfighting mission of the Depot in the process.”

“These sentences are a direct reflection of the tenacity and teamwork by MPFU special agents and our law enforcement partners,” said SA Scott Moreland, Special Agent-in-Charge of the Major Procurement Fraud Field Office (MPFFO), U.S. Army CID. “Bribery and other fraud schemes have no place in the government contracting system and those who attempt it will be caught.”    

“Today’s announcement highlights a successful collaboration among partner agencies as we collectively hold these defendants accountable for allegedly creating a fraudulent and deceptive scheme against the government and the people of the United States. We remain committed to the aggressive pursuit of those who selfishly leverage government programs for their own personal gain,” said Dallas FBI Special Agent in Charge, Matthew J. DeSarno.

According to information presented in court, Scarbrough was the Equipment Mechanic Supervisor at the RRAD in Texarkana, Texas, a position he held from November 2001 until May 2019. Scarbrough directed more than $7 million in purchases from RRAD to Harrison and Bishop through the government purchase card (GPC) program.  In order to manipulate the GPC program, which is designed to ensure a competitive bidding process, Scarbrough told the vendors what to bid, including the item, the quantity, and the price.  By collecting fake bids from multiple vendors, Scarbrough was able to direct RRAD purchases to his select vendors, in this case Harrison and Bishop, while maintaining the appearance of a competitive bidding process.  Scarbrough also defrauded the United States by falsely certifying that he had received the purchased items, therefore causing the RRAD to pay his select vendors.  However, the reality was that Scarborough instructed the vendors not to deliver certain RRAD-purchased items.

Scarbrough demanded hundreds of thousands of dollars in bribes from his selected vendors. Scarbrough accepted bribes in various forms, including receiving at least $116,000.00 in U.S. Postal Service money orders from Harrison.  Scarbrough also had Harrison and Bishop purchase at least $135,000.00 in car parts or services for his hot rod collection, which included a red and black 1936 Ford Tudor, an electric green 1932 Ford Coupe, a cherry red 1951 Ford F-1 truck, and more. Scarbrough received more than $27,000.00 worth of firearms from Bishop, including rare Colt handguns and Wurfflein dueling pistols.  Finally, Scarbrough directed at least $32,000.00 in donations to the Hooks Volunteer Fire Department while he was the Capitan of Operations.  In total, Scarbrough received more than $300,000.00 in bribe payments from Harrison and Bishop.

Scarbrough is not the only official at RRAD who accepted bribes.  Devin McEwin accepted more than $21,000.00 in bribes from Harrison, including hunting trips, donations directed to the Annona Volunteer Fire Department, and the refurbishment of his 1964 Ford truck.  Additionally, Louis Singleton accepted more than $18,000 in bribes from Harrison and others, including tickets to the Hall of Fame section of AT&T Stadium for the Dallas Cowboys football game against the New England Patriots.  Singleton was the supervisor of the GPC program at the RRAD and was responsible for approving purchases requested by Scarbrough.

Jimmy Scarbrough, 69, of Hooks, pleaded guilty on August 22, 2022, to conspiring with Harrison, Bishop, and others to defraud the United States, commit theft of government property, and commit bribery.  At that time, Scarbrough agreed to forfeit his 1951 Ford F-1 pickup truck and amount of money to be determined by the court.  Scarbrough faces up to 5 years in federal prison and is awaiting sentencing. 

This was investigated by the U.S. Army Criminal Investigation Command, Major Procurement Fraud Unit; the Federal Bureau of Investigation-Dallas Division, Tyler Resident Agency, and the U.S. Postal Inspection Service.  This case was prosecuted by Assistant U.S. Attorney Jonathan R. Hornok.

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Source: United States Department of Justice News

DAYTON, Ohio – A Dayton woman was arrested by federal agents this afternoon on charges alleging she has stolen the identities of several young women in the Dayton area and used those identities to commit various types of fraud.

Tiffany Lewis, 29, appeared in U.S. District Court in Dayton today following her arrest.

According to the charging documents, in March and April 2021, Lewis stole the identities of two area women and used their information to obtain approximately $8,000 total in personal loans from Lendmark. Lewis allegedly cashed out those loans at Checksmart locations in Fairborn and Monroe, Ohio. Lewis was photographed at each Checksmart location and is covering her distinctive neck tattoos in each of the photographs.

In June and July 2021, Lewis allegedly used a third stolen identity to commit various acts of fraud.

For example, Lewis allegedly used the victim’s identity to obtain a fraudulent Ohio driver’s license and a car loan for approximately $48,000.

In addition, it is alleged that Lewis used the identity on two separate occasions to rent Chevrolet Silverado trucks from Uhaul in Dayton. One of the trucks was later discovered at Lewis’s residence and had been spray-painted black.

Lewis allegedly used the third victim’s identity to write fraudulent checks at Menards in Fairborn totaling more than $3,500. When questioned at the store by a Fairborn police officer, Lewis presented her fake driver’s license, which was flagged as fraudulent in the officer’s computer.

Lewis is charged with committing Social Security number fraud, wire fraud, bank fraud and aggravated identity theft.

If you think you may also be a victim of Lewis’s alleged fraud, please contact the Social Security OIG tip line at: 1-800-269-0271.

Kenneth L. Parker, United States Attorney for the Southern District of Ohio and Andrew Boockmeier, Special Agent in Charge, Social Security Administration, Office of the Inspector General (SSA-OIG) announced the charges. The U.S. Secret Service, U.S. Marshals Service, and Dayton, Fairborn, Whitehall and Riverside police departments all contributed to this investigation.

Special Assistant United States Attorney Timothy Landry is representing the United States in this case.

A criminal complaint merely contains allegations, and defendants are presumed innocent unless proven guilty in a court of law.

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Source: United States Department of Justice News

Fairness for Farmers, Fishers, and Ranchers and Competitive, Resilient Food Systems a Top Priority for Antitrust Division and NFU

Source: United States Department of Justice News

The U.S. Department of Justice, along with its partners, today announced a significant enforcement operation that disrupted and dismantled a prolific human smuggling operation in Texas and across the Southern United States. The operation, a part of Joint Task Force Alpha (JTFA), included the arrest of eight alleged human smugglers whose indictment were unsealed today in the Southern District of Texas (SDTX).

“Over a year ago, we launched Joint Task Force Alpha to strengthen our efforts across government to dismantle the most dangerous human smuggling and trafficking networks,” said Attorney General Merrick B. Garland. “The charges announced today are just the latest example of these efforts’ success. The Justice Department will continue to bring our full resources to bear to combat the human smuggling and trafficking groups that endanger our communities, abuse and exploit migrants, and threaten our national security.”

Erminia Serrano Piedra aka Irma and Boss Lady, 31, led the human smuggling operation. Other defendants include Kevin Daniel Nuber aka Captain, 41; Laura Nuber aka Barbie, 40; Lloyd Bexley, 51; Jeremy Dickens, 45; Katie Ann Garcia aka Guera, 39; Oliveria Piedra-Campuzana, 53; and Pedro Hairo Abrigo, 33. All were arrested in Texas, Louisiana, Mississippi, and Alabama pursuant to charges previously filed in the SDTX and unsealed today.

According to the indictment, they facilitated the unlawful transportation and movement of migrants within the United States in deplorable conditions for profit. The migrants were allegedly citizens of Mexico, Guatemala and Colombia. The migrants or their families allegedly paid members of the human smuggling organization to help them travel illegally to and within the United States.

According to the indictment, the criminal human smuggling organization allegedly used drivers to pick up migrants near the U.S.-Mexico border and transport them further into the interior of the United States. They allegedly often harbored the migrants at “stash houses” along the way in locations such as Laredo and Austin, Texas. Drivers allegedly used various methods to transport migrants, including by hiding them in suitcases placed in pickup trucks and cramming migrants in the back of tractor-trailers, covered beds of pickup trucks, repurposed water tankers or wooden crates strapped to flatbed trailers. The human smuggling organization allegedly used methods to transport migrants that placed their lives in danger as they were frequently held in contained spaces with little ventilation, no temperature control and in conditions that placed them at great risk. Drivers for the organization were allegedly paid as much as $2,500 for each migrant they unlawfully transported.

The indictment also notices the criminal forfeiture of three properties as well as money judgments amounting to $2,299,152.40.

“This human smuggling organization operated on an enormous scale, placing a high value on financial profit, while putting migrants’ lives at great risk,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “JTFA will continue to use all means necessary to pursue and dismantle criminal smuggling networks and protect the vulnerable populations they exploit.”

“Sadly, this case is an example of what we see in our district, too many times, especially in our border communities,” said U.S. Attorney Jennifer B. Lowery for the Southern District of Texas. “Our Laredo office works continuously with our valued partners to bring to justice those who allegedly put profits ahead of everything else. No amount of money should be a substitute for human life.”

“At DHS, countering human smuggling is a moral imperative, a law enforcement priority, and a necessity for our national security,” said Deputy Secretary John K. Tien of the Department of Homeland Security. “It is a central plank of our efforts to address irregular migration across the western hemisphere, and to hold transnational criminal organizations accountable for perpetrating vile and horrific crimes. We are unwavering in our commitment, and sending a strong message: if you manipulate and imperil and take advantage of struggling migrants, we are coming for you. This investigation is a perfect example of how we’re bringing our agencies and components together to leverage the full force of the federal government to do just that.”

“Transnational criminal organizations often use sophisticated circumvention techniques to facilitate their smuggling and trafficking efforts,” said Acting Deputy Director PJ Lechleitner of the U.S. Immigration and Customs Enforcement (ICE). “Special agents with Homeland Security Investigations (HSI) employ a full range of law enforcement techniques and cross-border authorities to combat human smuggling by effectively eliminating profit incentives, seizing assets, and maintaining strong collaborative relationships with law enforcement partners across the country and world. Today should be a reminder that if you are going to engage in this type of criminal activity, your criminal network is not invisible. The members of the organization will be exposed, the network will be dismantled, and you will be brought to justice.”

“Human smugglers are criminals who do not care about human life,” said Deputy Commissioner Troy Miller of U.S. Customs and Border Protection (CBP). “They lie to make money, convincing vulnerable migrants to hand over what is often their life savings in exchange for empty promises to get to the U.S.  Smugglers regularly abandon migrants in the desert or mountains with no food or water, leaving them for dead. CBP strives to be flexible, adaptable, and to think outside the box when it comes to disrupting these criminal organizations and protecting migrants from harm.”

The indictments against these defendants were brought under JTFA. Attorney General Garland created JTFA in June 2021, in partnership with DHS, to strengthen the department’s overall efforts to combat the dangerous rise in human smuggling emanating from Central America and impacting our border communities. JTFA’s goal is to disrupt and dismantle those human smuggling and trafficking networks operating in El Salvador, Guatemala, Honduras, and Mexico, with a focus on networks that endanger, abuse or exploit migrants, present national security risks or engage in other types of transnational organized crime.

Since its creation, JTFA has successfully increased coordination and collaboration between the Justice Department, DHS, and other interagency law enforcement participants along with foreign law enforcement partners including El Salvador, Guatemala, Honduras and Mexico; targeted those organizations who have the most impact on the United States; and coordinated significant smuggling indictments and extradition efforts in U.S. Attorneys’ Offices across the country. To date, JTFA’s work with its partners has resulted in criminal charges and over 100 domestic and international arrests against leaders, organizers and significant facilitators of human smuggling activities, several dozen convictions, significant prison sentences and substantial asset forfeiture.

JTFA is comprised of detailees from southwest border U.S. Attorneys’ Offices, including the Southern District of Texas, the Western District of Texas, the District of New Mexico, the District of Arizona, and the Southern District of California, and dedicated support for the program is also provided by numerous components of the Justice Department’s Criminal Division that are part of JTFA – led by the Human Rights and Special Prosecutions Section (HRSP) and supported by the Office of Prosecutorial Development, Assistance and Training (OPDAT), the Narcotic and Dangerous Drug Section (NDDS), the Money Laundering and Asset Recovery Section (MLARS), the Office of Enforcement Operations (OEO), the Office of International Affairs (OIA), and the Organized Crime and Gang Section (OCGS). JTFA is made possible by substantial law enforcement investment from DHS, FBI, U.S. Drug Enforcement Administration, and other partners.

HSI Laredo, along with CBP’s U.S. Border Patrol Laredo Sector and DHS-OIG, led U.S. investigative efforts and received substantial assistance from HSI offices in Austin, San Antonio, and Corpus Christi, Texas; New Orleans, Louisiana; Gulfport, Mississippi; Mobile, Alabama; West Palm Beach, Florida; and its Human Smuggling Unit in Washington, D.C.; along with CBP’s National Targeting Center; U.S. Marshals Service; ICE’s Enforcement and Removal Operations – Austin; Police Departments in Laredo, Kileen, and Round Rock, Texas, Wiggins, Missouri, and Bogalusa, Louisiana; Webb County, Texas, Constable’s Office; Webb County, Texas, District Attorney’s Office; Sheriff’s offices in Webb, Bastrop, and Caldwell County, Texas, and Harrison County, George County, and Stone County, Mississippi; Jefferson Parish and Washington Parish, Louisiana; and Mississippi Bureau of Narcotics; and the Louisiana State Police.

Trial Attorneys Erin Cox and Christian Levesque of the Justice Department’s Human Rights and Special Prosecution Section; Assistant U.S. Attorney Jennifer Day for the Southern District of Texas and JTFA; Assistant U.S. Attorney Paul Harrison for the Southern District of Texas; Trial Attorney Daria Andryushchenko and Financial Investigator Kelly O’Mara of the Justice Department’s Money Laundering and Asset Recovery Section handled the case, with substantial assistance from the Justice Department’s Electronic Surveillance Unit of the Office of Enforcement Operations. 

The charges contained in an indictment are merely allegations. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

Source: United States Department of Justice News

MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Antoine Hardie, 37, La Crosse, Wisconsin, was sentenced yesterday by Chief U.S. District Judge James D. Peterson to 7 ½ years in federal prison for distributing fentanyl. On May 17, 2022, Hardie pleaded guilty to possessing 40 or more grams of fentanyl with intent to distribute.

Hardie sold fentanyl to a confidential informant in La Crosse on five occasions between June 24, 2021 and September 17, 2021. A subsequent search of a storage shed associated with Hardie revealed 296 grams of fentanyl hidden in a child’s suitcase.

In selecting a 7 ½ year sentence, Judge Peterson noted the dangers of fentanyl, Hardie’s violent criminal history, and the need to protect the public.  Hardie’s criminal history includes convictions for battery, witness intimidation, and burglary.  In one case, he threatened to kill a victim and her family. 

The charge against Hardie was the result of an investigation conducted by the Wisconsin Department of Justice Division of Criminal Investigation, La Crosse Police Department, and Holmen Police Department. Assistant U.S. Attorney Meredith Duchemin prosecuted this case.