Man Pleads Guilty to Federal Firearm and Drug Trafficking Charges Stemming from Shootout at New Orleans Hotel

Source: United States Department of Justice News

NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced today, that MALIK FERNANDEZ, age 23, from New Orleans, pled guilty on January 24, 2023 to various firearm and drug charges.  His guilty plea stems from his participation in a December 28, 2020, shootout at the  Jung Hotel on Canal Street. 

Earlier this year, a federal grand jury handed down two related indictments charging a total of nine individuals with various violations of the Federal Gun Control  and Federal Controlled Substances Acts for their participation in this shootout.  Today, FERNANDEZ pled guilty to Counts 1, 2, 3, and 4 of the indictment, charging him with  conspiracy to possess firearms in furtherance of a drug trafficking crime (Count 1); using, carrying and discharging a firearm during and in relation to a drug trafficking crime (Count 2); conspiracy to possess with the intent to distribute marijuana (Count 3); and illegally maintaining a drug involved premises (Count 4).

FERNANDEZ will be sentenced on May 2, 2023. Based on his guilty plea he will face the following sentences:

For Count 1, he will face a maximum sentence of 20 years in prison, not more than 3 years of supervised release, and not more than a $250,000.00 fine, pursuant to Title 18, United States Code, Sections 924(o) and 3583.

For Count 2, he will face a mandatory minimum of 10 years and a maximum of life in prison, not more than 5 years of supervised release, and a fine of not more than $250,000.00, pursuant to Title 18, United States Code, Section 924(c).  Any prison sentence imposed in connection with this count must be served consecutively to any other prison sentence imposed in connection with this case, in accordance with Title 18, United States Code, Sections 924(c), 2, and 3583.

For Count 3, he will face a maximum sentence of 5 years in prison, up to two years of supervised release, and not more than a $250,000.00 fine, pursuant to Title 21, United States Code, Section 841 (b)(1)(D); and  

For Count 4, he will face a sentence of not more than 20 years in prison, a fine of not more than $500,000.00  and not more than 3 years of supervised release, in accordance with Title 18, United States code, Section 3583.

Each count also carries a mandatory special assessment fee of $100. 

This case is 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 gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.

The case was investigated by the New Orleans Police Department and the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives.  Assistant United States Attorneys Maurice Landrieu and Elizabeth Privitera are in charge of the prosecution.

 

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Hot Springs Man Sentenced to Over 8 Years in Federal Prison for Drug Trafficking

Source: United States Department of Justice News

HOT SPRINGS – A Hot Springs man was sentenced on January 27, to 97 months in prison followed by three years of supervised release on one count of Possession with Intent to Distribute Methamphetamine. The Honorable Chief Judge Susan O. Hickey presided over the sentencing hearing in the U.S. District Court in Hot Springs.

According to court documents, John Raymond Duran, age 58, was identified by law enforcement to be distributing methamphetamine in Hot Springs, Arkansas area.

Between the months of December 2020 and March 2021, investigators were able to conduct multiple controlled purchases of methamphetamine from Duran.

On April 12, 2021, a search was conducted at Duran’s residence, resulting in investigators locating and seizing approximately 1539 grams of a mixture or substance that field tested positive for methamphetamine.

The methamphetamine seized and purchased was subsequently submitted to the Drug Enforcement Administration (DEA) laboratory for additional testing.

U.S. Attorney David Clay Fowlkes of the Western District of Arkansas made the announcement.

Homeland Security Investigations Little Rock, the Drug Enforcement Administration, Hot Springs Police Department, and the 18th East Judicial District Drug Task Force investigated the case.

Assistant U.S. Attorney Bryan Achorn and Special Assistant U.S. Attorney Trent Daniels prosecuted the case.

This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.

U.S. Attorney Announces Settlement Of Civil Fraud Lawsuit Against Former Hunter College Professor And Hunter College For Fraudulently Using Federal Research Funds

Source: United States Department of Justice News

Jeffrey Parsons-Hietikko to Pay $375,000 and Admits to Seeking Reimbursements for Personal Travel. Hunter College to Pay $200,000 and Admits to Using NIH Funds to Pay Parsons’ Staff for Time Spent Working on Projects Unrelated to the NIH Grants.

Damian Williams, the United States Attorney for the Southern District of New York, announced today that the United States has filed and settled a civil fraud lawsuit against HUNTER COLLEGE (“HUNTER”) and JEFFREY T. PARSONS-HIETIKKO (“PARSONS”), a former HUNTER psychology professor who served as Director of Hunter’s Center for HIV Educational Studies (“CHEST”).  The lawsuit resolves the United States’ allegations that for many years: (i) PARSONS improperly invoiced personal expenses to National Institutes of Health (“NIH”) funds, including expenses related to scuba diving trips, international flights for his family, a tropical birthday celebration, and travel for his work as a private consultant; (ii)  HUNTER used NIH funds to pay PARSONS over $90,000 in retention bonuses without disclosing these payments to NIH as required; and (iii) PARSONS and HUNTER submitted false timekeeping records that misrepresented the time that CHEST staff spent working on NIH grant-related projects, resulting in the use of NIH grant funds to compensate CHEST staff for work performed for private clients.  The lawsuit alleges that these impermissible uses of NIH funds violated HUNTER’s certifications to NIH and the U.S. Department of Health and Human Services (“HHS”) that the NIH funds would be used only for allowable research and academic purposes.

Under the settlement approved by U.S. District Judge Ronnie Abrams, PARSONS, 55, of Teaneck, New Jersey, and HUNTER agreed to pay $375,000 and $200,000, respectively, to the United States and made detailed factual admissions regarding their conduct.  

U.S. Attorney Damian Williams said: “NIH provides funding to academic institutions for the purpose of furthering important research that impacts communities and improves lives.  For years, Jeffrey Parsons-Hietikko obtained these funds under false pretenses, then used them to cover his personal expenses and for other purposes totally unrelated to research.  Hunter College improperly used NIH funds to pay undisclosed bonuses to Parsons and for other expenses unrelated to NIH-funded work.  When individuals and institutions abuse federal grant money, this Office will hold them accountable.”

As alleged in the Complaint filed in Manhattan federal court:

During his time at HUNTER, where he was promoted on multiple occasions and achieved the status of Distinguished Professor in 2012, PARSONS proved himself to be singularly proficient at obtaining NIH funding to support his and CHEST’s research.  HUNTER considered PARSONS to be one of its most prized faculty members and offered him a number of perks, including discretionary spending accounts financed by NIH funds, a high level of personal control over CHEST’s federal grant funds, and special accommodations in the approval process for obtaining reimbursements from federal funds for his expenses.  PARSONS then abused his authority and influence by repeatedly drawing from these discretionary accounts to fund personal expenses.

From January 1, 2010, through May 17, 2018 (the “Covered Period”), PARSONS and HUNTER defrauded the United States by materially misusing federal funds obtained from NIH and making false certifications and statements to NIH and HHS.  First, PARSONS defrauded the Government by improperly using NIH funds that HUNTER had certified to HHS would only be used to support the facilities and administrative costs associated with HUNTER’s NIH grants (the “Indirect Cost Funds”) to reimburse himself for his personal travel expenses, including expenses relating to personal scuba diving trips, international flights for his family, and a tropical birthday celebration.  PARSONS falsely represented that these reimbursement requests all had an academic or research purpose.  PARSONS also improperly used Indirect Cost Funds to double the reimbursement he received for travel relating to his non-NIH-related work as a private consultant to external clients.

From December 2010 through December 2013, HUNTER improperly used the Indirect Cost Funds to pay PARSONS over $90,000 in undisclosed retention bonuses, even though NIH rules and regulations prohibited the Indirect Cost Funds from being used to make such payments.  HUNTER never disclosed and, indeed, took steps to hide its use of the Indirect Cost Funds to pay these bonuses to PARSONS.

During the Covered Period, PARSONS also misused CHEST’s NIH grant funds to pay CHEST staff for time they spent working for CHEST’s private consulting clients, rather than on NIH grant-related projects.  In order to obtain NIH funds for this purpose, PARSONS approved timekeeping records representing that those staff spent their time and effort working on NIH-funded research projects.  In reality, however, CHEST staff had also spent time working on unrelated projects commissioned by third parties, which were not properly reimbursable from the NIH grant funds and were not accurately reflected on the documents PARSONS submitted to obtain reimbursement.  Although HUNTER was on notice that CHEST staff performed work on outside projects, it nevertheless sought and received NIH funds to improperly pay CHEST staff for this outside work.  The third parties that commissioned CHEST to work on the outside projects separately paid for the work performed by CHEST staff.  HUNTER directed those payments into discretionary accounts to benefit CHEST and PARSONS, including one account used to reimburse PARSONS for alcohol expenses.  Moreover, even after HUNTER became aware that NIH-funded CHEST staff had been improperly utilized to perform work for PARSONS’s private consulting company, HUNTER never took steps to investigate or report to NIH this misuse of NIH funding.

As part of the settlement, PARSONS admits, acknowledges, and accepts responsibility for the following conduct:

  • From 2013 through 2017, PARSONS requested reimbursement from Indirect Cost Funds for scuba diving trips to the Cayman Islands, Bonaire, Cuba, Costa Rica, Fiji, Cozumel, and Belize (the “Scuba Trips”).  As part of his request for reimbursement from Indirect Cost Funds, PARSONS represented that the Scuba Trips had a research purpose.  However, PARSONS did not create any documents, data, or records reflecting research he conducted while he was on the Scuba Trips.
  • In addition to the Scuba Trips, from 2016 through 2017, PARSONS also requested reimbursement from Indirect Cost Funds for travel to Cape Town (the “Cape Town Trip”) and Puerto Rico (the “Puerto Rico Trip,” and together with the Cape Town Trip, the “Personal Trips”).  As part of his request for reimbursement from Indirect Cost Funds for the Personal Trips, PARSONS represented that the Personal Trips had an academic purpose. 
  • From 2016 through 2018, PARSONS sought and received reimbursement from Indirect Cost Funds to reimburse himself for travel to Denver, Chicago, and Los Angeles.  However, during these trips, PARSONS was not working on projects relating to CHEST’s NIH grants and, instead, was working as a consultant for other institutions.  PARSONS did not reimburse HUNTER or NIH for any of the Indirect Cost Funds he received relating to his travel to Denver, Chicago, and Los Angeles as a consultant for other academic institutions.
  • Throughout the Covered Period, PARSONS caused HUNTER to request NIH grant funds to pay the salaries of CHEST staff ostensibly working on CHEST’s NIH-funded research.  PARSONS approved a spreadsheet that purported to reflect the percentage of time and effort that CHEST staff spent working on CHEST’s NIH-funded research (the “Staff Allocation Spreadsheet”).  During the Covered Period, CHEST staff not only worked on projects connected to HUNTER’s own NIH-funded research, but also on unrelated projects commissioned by third parties (“Outside Projects”).  During the Covered Period, the Staff Allocation Spreadsheet failed to accurately reflect the time and effort CHEST staff spent working on the Outside Projects.  Instead, during the Covered Period, the Staff Allocation Spreadsheet reflected CHEST staff as working entirely on CHEST’s NIH-funded research.

As part of the settlement, HUNTER admits, acknowledges, and accepts responsibility for the following conduct:

  • During the Covered Period, HUNTER was aware that CHEST staff worked on Outside Projects and received payments from third parties for that work.  However, the staff’s work on many of the Outside Projects was not reflected on the Staff Allocation Spreadsheet at all, and when it was, the Staff Allocation Spreadsheet understated the time that CHEST staff spent working on those Outside Projects.  Instead, the time and effort of CHEST’s staff on the Outside Projects was incorrectly allocated on the Staff Allocation Spreadsheet to projects that NIH funded directly through NIH grants.  HUNTER, in reliance on these incorrect Staff Allocation Spreadsheets, sought and received reimbursement from the NIH for staff time and effort expended on the Outside Projects.
  • HUNTER deposited the funds it received as payment for CHEST’s staff work on the Outside Projects into accounts to benefit CHEST and PARSONS, and one of these accounts was used to reimburse PARSONS for expenses for alcohol at CHEST-related events.
  • From December 2010 through December 2013, HUNTER used Indirect Cost Funds to pay PARSONS over $90,000 of retention bonuses, which were never disclosed to NIH.  Throughout the Covered Period, NIH rules and regulations prohibited the use of Indirect Cost Funds to pay faculty retention bonuses not previously disclosed to NIH.

In connection with the filing of the lawsuit and settlement, the Government joined a whistleblower lawsuit that had previously been filed under seal pursuant to the False Claims Act.

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Mr. Williams praised the outstanding investigative work of the Federal Bureau of Investigation and the Office of Inspector General for HHS.

This case is being handled by the Office’s Civil Frauds Unit.  Assistant U.S. Attorney Jessica Jean Hu is in charge of the case.

U.S. Attorney Thompson Invites Media to Human Trafficking Training Workshop

Source: United States Department of Justice News

CHARLESTON, W.Va. – United States Attorney Will Thompson of the Southern District of West Virginia invites the media to attend the public portion of a human trafficking training workshop on Tuesday, January 31, 2023, from 10 a.m. to 11:15 a.m. at the University of Charleston.

After opening remarks by Thompson and leadership from the U.S. Department of Homeland Security-Homeland Security Investigation (HSI), their respective offices will provide an overview of human trafficking in West Virginia.

Other participants include the West Virginia Fusion Center and the West Virginia Center for Children’s Justice. The remainder of the workshop is reserved for law enforcement and other registered stakeholders.

WHAT:  Combatting Human Trafficking in West Virginia: Bringing Our Communities Together for Response, Prevention, Awareness and Action

WHEN: Tuesday, January 31, 2023, from 10 a.m. to 11:15 a.m.

WHERE: University of Charleston, Geary Student Union Ballroom, Third Floor, 2300 MacCorkle Avenue, SE, Charleston.

 A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia.

 

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Four Washington State Men Sentenced for Hate Crime and False Statement Charges After Racially-Motivated Assault

Source: United States Department of Justice News

Four men who assaulted a Black man because of the man’s actual and perceived race at a bar in Lynnwood, Washington, were sentenced today in the U.S. District Court for the Western District of Washington.

Jason DeSimas, 45, Jason Stanley, 46, Randy Smith, 42, and Daniel Dorson, 27, previously each pleaded guilty to one count of committing a hate crime, as well as one count of making false statements to investigators about their role in the assault.

DeSimas was sentenced to 48 months; Stanley was sentenced to 47 months and nine days; Smith was sentenced to 42 months; and Dorson was sentenced to 28 months.

“The defendants subjected a Black man to a brutal and racially-motivated assault,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Racially-motivated hate crimes terrorize entire communities, and they have no place in our society. The Department of Justice will continue to investigate and prosecute individuals who commit these abhorrent crimes.”

“The myth of white supremacy is alive and well and can foment dangerous behavior and violence. These particular defendants are deeply steeped in racial hatred, expressed through their Nazi tattoos, white supremacist symbols on their clothing and their use of racist slurs. They came to our area to honor a man who died leading a racist and violent gang, and thought they could act on their beliefs with impunity,” said U.S. Attorney Nick Brown for the Western District of Washington. “But the victims and witnesses of their brutal assault have proved they are far stronger than these four. And today our justice system is holding them accountable for the damage they did not only to the people they assaulted, but to the community that recoils when presented with their despicable hatred.”

“Imagine being attacked by four men purely because of the color of your skin.” said Special Agent in Charge Richard A. Collodi of the FBI Seattle Field Office. “The victim in this case does not have to imagine. Tragically, he lived it. With today’s sentences, my hope is the victim feels some sense of justice has been served. However, until all citizens are safe from threats and violence based on their race, ethnicity, gender or beliefs, the FBI’s work protecting victims of hate will continue.”

In their respective plea agreements, DeSimas, Stanley, Smith and Dorson each admitted that, on Dec. 8, 2018, they entered a bar in Lynnwood, with a large group that included fellow members of Crew 38 and the Hammerskins. Crew 38 is a support group for the Hammerskins, which is a white supremacist organization. The majority of the men in the group were similarly dressed in dark jeans or pants, black boots, black “bomber” jackets and dark-colored t-shirts and had crew-cut hairstyles. Some wore jackets with either Crew 38 patches or other patches aligned with white supremacist beliefs. In addition, many wore shirts with phrases, numbers or logos that expressed white supremacist beliefs and/or memberships, including Crew 38. Many in the group also had visible tattoos, including swastika tattoos, that expressed their views on white race superiority. Members of the group, including defendants Stanley and Smith, repeatedly gave the Nazi salute as they danced.

While in the bar, all four defendants assaulted T.S., a Black man who was serving as the disc jockey at the bar, when T.S. attempted to move defendant Stanley away from his music equipment. All four defendants punched and kicked T.S., even after he fell to the floor, while some in the group called T.S. racial slurs. Two bystanders attempted to intervene to help T.S. and stop the assault. The defendants and other assaulted both bystanders, causing them to sustain injuries. As a result of the defendants’ actions, T.S. suffered serious physical injuries, including extrema pain, loss of consciousness, bleeding and swelling in his eye and bruising on his back, chest and legs.

In their plea agreements, the four defendants each admitted that they were members of Crew 38 and/or prospective members of the Hammerskins, and that they had traveled to the Lynnwood area with others to attend events related to “Martyr’s Day,” an annual gathering honoring a white supremacist who died in a shootout with federal agents on Whidbey Island in the 1980s.

In their plea agreements, defendants DeSimas and Stanley each admitted that they knew that the Hammerskins had used a tactic known as “mutual combat” against members of groups whose beliefs they opposed. Members believed that, using this tactic, they could go to bars frequented by groups whose beliefs they opposed and have one or more members initiate a fight. When the fight began, other members of the group could jump in and assault their perceived antagonists, and later claim a defense of “mutual combat” as a way to avoid accountability.

In addition to the hate crime charge, each defendant pleaded guilty to one count of making false statements to federal agents who were investigating the assault. Specifically, Stanley falsely claimed to the agents that he was not even present in the State of Washington during the weekend of the assault. Stanley made this false claim in order to cover up his participation in the assault of T.S.

DeSimas falsely claimed to the agents that neither he nor anyone else called T.S. a racial slur during the assault, while Smith falsely claimed to the agents that he did not remember anyone calling T.S. a racial slur during the assault. Dorson falsely told agents that he had not traveled to Washington State during the weekend of the assault to attend a white supremacist’s “Martyr’s Day” observance and that he had not owned a jacket associated with a white supremacy hate group prior to the weekend of Dec. 8, 2018. In their respective plea agreements, these defendants each admitted that they made these false statements in order to cover up the motive for the assault, which was the bias that he and others had against T.S.’s race. 

The four defendants were charged in an indictment that was unsealed on Dec. 18, 2020.

Smith was charged in the District of Oregon in an unrelated case for illegal possession of a firearm. That charge was resolved in the Western District of Washington.

The FBI investigated the case, with the support of the Snohomish County Sheriff’s Office. The Smith firearms matter was investigated by the FBI Portland Field Office and the Eugene, Oregon, Police Department.

Trial Attorney Christine M. Siscaretti of the Civil Rights Division’s Criminal Section and Assistant U.S. Attorney Rebecca Cohen for the Western District of Washington are prosecuting the case. The Smith firearms matter was prosecuted by Assistant U.S. Attorney William McLaren for the District of Oregon.