Month: January 2023

Source: United States Department of Justice News

PHILADELPHIA, PA – United States Attorney Jacqueline C. Romero announced that Jaire Chance, 27, of Philadelphia, has agreed to a consent judgment of $100,399, and Robert Day, 42, of Center Valley, Lehigh County, has agreed to a consent judgment of $110,610 to resolve allegations that they violated the False Claims Act by improperly seeking Pandemic Unemployment Assistance (PUA) benefits when they were employed by the United States Postal Service. 

The United States alleges that Chance and Day made materially false and fraudulent statements to the Pennsylvania Department of Labor and Industry to obtain PUA benefits, meant for individuals not eligible for regular unemployment compensation or extended unemployment benefits. In fact, both were working full-time for the United States Postal Service for most or all of the time they were receiving PUA benefits. During that time, Day was also earning income as a driver using the Uber mobile application to arrange work. Further details regarding the United States’ allegations regarding conduct by Chance and Day can be found in the complaints filed in federal court, United States v. Jaire Chance, U.S.D.C. E.D. Pa. No. 2:22-cv-4626, and United States v. Robert Dean Day, U.S.D.C. E.D. Pa. No. 5:22-cv-4736.

“There is no excuse for any individual who fraudulently obtains money set aside to help victims of the COVID-19 pandemic,” said U.S. Attorney Romero. “The fraud alleged in this case is particularly egregious as it was perpetrated by a federal employee. The United States Attorney’s Office is ready to investigate and bring to justice any individual who abuses emergency assistance in this way.”

“It is alleged in the settlement agreements filed in court that Jaire Chance and Robert Day submitted weekly certifications, which falsely represented they were unemployed due to the COVID-19 pandemic, to the Pennsylvania Department of Labor and Industry’s Pandemic Unemployment Assistance (PUA) program. In actuality, they were employed full-time by the U.S. Postal Service for all or a majority of the period that they submitted the certifications. The submission of those certifications resulted in Chance and Day receiving PUA benefit payments that they were not eligible to receive. We will continue to work with the Pennsylvania Department of Labor and Industry and our law enforcement partners to safeguard unemployment compensation benefit programs,” said Syreeta Scott, Special Agent-in-Charge, Philadelphia Region, U.S. Department of Labor Office of Inspector General.

“The majority of postal employees are hard-working public servants dedicated to moving the mail to its proper destination. Unfortunately, Day and Chance betrayed this public trust when applying for unemployment benefits. The USPS-OIG, along with our law enforcement partners, will continue to aggressively investigate those who engage in fraudulent activities intended to defraud federal benefit programs and the United States Postal Service,” stated Jeffrey E. Krafels, Special Agent-in-Charge of the Mid Atlantic Area Field Office, United States Postal Service Office of Inspector General.

This investigation was conducted by United States Attorney’s Office for the Eastern District with investigators from the United States Postal Service Office of Inspector General and United States Department of Labor Office of Inspector General. Assistant United States Attorneys Paul W. Kaufman and Isaac J. Jean-Pierre handled the investigation and consent resolution.

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

Source: United States Department of Justice News

ALEXANDRIA, Va. – A Woodbridge man pleaded guilty yesterday to distributing a Schedule II controlled substance to a person under age twenty-one.

According to court documents, in April of 2022, Latae’veion Woods, 21, sold pills purporting to be Percocet to a 14-year-old, who died of a fentanyl overdose approximately five days after the distribution. Following the overdose death, officers found a clear plastic baggie containing four blue pills with markings consistent with 30 milligram Percocet pills in the juvenile’s pants. Analysis later showed that the pills actually contained fentanyl. Police also discovered text messages on the 14-year-old’s phone which revealed that Woods distributed pills to the juvenile on multiple occasions during March and April 2022. The messages further established that Woods instructed the juvenile how to redistribute the pills and directed him to resell the pills for a specific amount of money. No other messages were located on the juvenile’s phone to suggest he had any other source of supply for Percocet.

Messages also demonstrated that Woods offered to sell the juvenile a firearm, specifically, a Glock 19 or Glock 48 semiautomatic handgun. During a search warrant of Woods’ residence, law enforcement seized a Glock 48 handgun and a Glock-style semi-automatic “ghost” gun, both of which Woods admitted belonged to him.

Woods is scheduled to be sentenced on April 14. He faces a mandatory minimum term of imprisonment of one year and a maximum penalty of 40 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; Jarod Forget, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Division; and Peter Newsham, Chief of Prince William County Police, made the announcement after Senior U.S. District Judge T.S. Ellis, III accepted the plea.

Special Assistant U.S. Attorney Lauren Hahn 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. 1:22-cr-226.

Source: United States Department of Justice News

NEW ORLEANS, LA – U.S. Attorney Duane A. Evans announced that MICHAEL CRAWFORD, age 27, from New Orleans, Louisiana, pleaded guilty on January 4, 2023 to being a Felon in Possession of a Firearm, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2). 

According to court documents, CRAWFORD exchanged gunfire with an individual at the intersection of Chef Menteur Highway and Louisa Street and sustained gunshot wounds.  Moments later, law enforcement encountered CRAWFORD in possession of a firearm. CRAWFORD was prohibited from firearm possession because he was convicted of Possession of Tramadol in 2019.

In pleading guilty, CRAWFORD faces a maximum sentence of ten (10) years imprisonment and a fine of up to $250,000.00.  The defendant also faces a term of supervised release of up to three (3) years, and a mandatory $100.00 special assessment fee.  The Honorable Sarah S. Vance set sentencing in this matter for April 5, 2023.

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.

U.S. Attorney Evans praised the work of the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the New Orleans Police Department in investigating this matter.  Assistant United States Attorney Maria Carboni is in charge of the prosecution.

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Source: United States Department of Justice News

Defendants’ Drug Trafficking Organization Allegedly Imported Over One Hundred Kilograms of Cocaine into the United States Using Corrupt Foreign and Domestic Airport Employees to Bypass Security and Customs

Source: United States Department of Justice News

Defendant’s Brother Convicted of Running the Money Laundering Service Helix

            WASHINGTON – Gary James Harmon, 31, of Cleveland, Ohio, pleaded guilty today to perpetrating a scheme to steal cryptocurrency that was pending criminal forfeiture from Harmon’s brother, now-convicted money launderer and proprietor of Grams-Helix, Larry Dean Harmon.  Specifically, Harmon pleaded guilty to wire fraud and obstruction of justice for unlawfully taking more than 712 bitcoin that had been seized by law enforcement and was subject to forfeiture in the pending criminal prosecution of Larry Harmon.

            The plea was announced by United States Attorney Matthew M. Graves, Darrell J. Waldon, Special Agent in Charge of IRS-Criminal Investigation (IRS-CI), and Wayne A. Jacobs, Special Agent in Charge of the FBI Washington Field Office’s Criminal and Cyber Divisions.

            The wire fraud charge carries a statutory maximum sentence of up to 20 years in prison; the obstruction of justice charge carries a statutory maximum sentence of 20 years in prison.  U.S. District Court Chief Judge Howell scheduled a sentencing hearing for March 17, 2023. 

            According to court documents, in February 2020, the defendant’s brother, Larry Harmon, was arrested for his operation of Helix, a darknet-based cryptocurrency money laundering service, known as a “mixer” or “tumbler.” As Harmon later admitted, Helix laundered over 350,000 bitcoin – valued at over $300 million at the time of the transactions – on behalf of customers, with the largest volume coming from Darknet markets.  As part of the arrest, law enforcement seized various assets, including a cryptocurrency storage device containing Larry Harmon’s illegal proceeds generated through the operation of Helix, which were subject to forfeiture in the criminal case.  However, law enforcement was initially unable to recover bitcoin stored on the device due to the device’s additional security features. 

            Knowing that the government was seeking to recover the bitcoin stored on the seized device for forfeiture in Larry Harmon’s criminal case, Gary Harmon used his brother’s credentials to recreate the bitcoin wallets stored on the device and covertly transfer more than 712 bitcoin, valued at approximately $4.8 million at the time, to his own wallets – stealing those funds and obstructing the pending criminal forfeiture proceeding.  Gary Harmon further laundered the proceeds through two online bitcoin mixer services before using the laundered bitcoins to finance large purchases and other expenditures. 

            In August 2021, Larry Harmon pled guilty to money laundering conspiracy in connection with his case.

            As part of his plea today, Gary Harmon also agreed to the forfeiture of cryptocurrencies and other properties derived from the fraudulently taken proceeds, including more than 647.41 Bitcoin (BTC), 2.14 Ethereum (ETH), and 17,404,400.64 Dogecoin (DOGE).  Due to the increase in market prices, the total value of these forfeitable properties exceeds $12 million. 

–            This matter was investigated by the IRS-CI District of Columbia Cyber Crime Unit and the Federal Bureau of Investigation. 

            In announcing the plea, U.S. Attorney Graves, IRS-CI Special Agent in Charge Waldon, and FBI Special Agent in Charge Jacobs commended the work of those who investigated the case from the IRS Criminal Investigation – Cyber Crime Unit and the FBI’s Washington Field Office.  The case is being prosecuted by Assistant U.S. Attorney Christopher B. Brown and Trial Attorney C. Alden Pelker, of the Department of Justice Computer Crime and Intellectual Property Section (CCIPS), with assistance from Paralegal Specialist Michon Tart and former Paralegal Specialist Chad Byron.  Additional assistance has been provided by Assistant U.S. Attorneys Segev Phillips and Daniel Riedl of the Northern District of Ohio and CCIPS Trial Attorney S. Riane Harper.