Month: January 2023

Source: United States Department of Justice News

WILMINGTON, Del. – David C. Weiss, U.S. Attorney for the District of Delaware, announced that Denise Brown was sentenced yesterday to 144 months in prison for conspiracy to distribute heroin and fentanyl and 60 months for submitting a false claim to the Small Business Administration (SBA), to run concurrently.  Brown was also ordered to pay $10,000 in restitution to the SBA.  U.S. District Judge Maryellen Noreika pronounced the sentence. 

According to court documents and statements made in open court, Denise Brown, age 40, was a leader of the Jamar Jackson drug trafficking organization responsible for distributing large quantities of drugs, sourced from Mexican cartels, throughout Delaware and the surrounding region.  Brown managed the day-to-day drug business, setting up the DTO’s drug milling and packaging operations in Bear, Delaware and King of Prussia, Pennsylvania, recruiting other members of the conspiracy, and directing drug sales.  Brown was ultimately arrested at her King of Prussia home on September 23, 2020.  Upon searching Brown’s home, law enforcement found thousands of packets of fentanyl-laced heroin, bulk quantities of heroin and fentanyl, and over $120,000 in cash. 

In June 2020, Brown also submitted a fraudulent application to the SBA seeking COVID-19 relief funds through the Economic Injury Disaster Loan program.  Based on this this application, the SBA deposited $10,000 into the defendant’s bank account.

U.S. Attorney Weiss stated, “Yesterday, the Court justly held Denise Brown accountable for her crimes. By trafficking large quantities of drugs from Mexico and distributing deadly fentanyl into our communities, the defendant put lives at risk.  She also took advantage of government program designed to provide economic relief during the COVID-19 pandemic.  This sentence sends a message that those who aspire to profit from illegal activity – whether through drug distribution or fraud – will face significant punishment.”

“Yesterday’s sentence demonstrates the unwavering resolve of law enforcement to protect our community and economy against criminals engaged in drug trafficking and fraud,” said William S. Walker, Special Agent in Charge of the Homeland Security Investigations (HSI) Philadelphia office.  “Through exceptional collaborative efforts, HSI and our partners aggressively identified and investigated the criminal activity in this case.  This sentencing is proof positive that those who commit such crimes will be held accountable for their actions.”

U.S. Postal Inspection Service (USPIS) Acting Inspector in Charge, Raimundo Marrero, added that, “Denise Brown help lead an organized, multi state, illegal narcotics distribution organization.  That organization distributed large quantities of dangerous drugs, including heroin and fentanyl, that destroy our communities.  She will face many years in jail which will hopefully serve as a warning to others; these drugs destroy and if you get involved in their distribution, you run the risk of spending many years in prison.  I want to thank our law enforcement partners and the United States Attorney’s Office for the hard work pulling this case together.”

“IRS-Criminal Investigation is proud to have provided its financial expertise in this investigation,” said IRS Criminal Investigation Special Agent in Charge Yury Kruty.  “IRS-CI will continue to work with our law enforcement partners by following the money and leveraging our resources.”

Assistant U.S. Attorney Meredith C. Ruggles prosecuted the case along with former Assistant U.S. Attorneys Christopher L. de Barrena-Sarobe and Whitney Cloud.  This case was investigated by HSI and USPIS, with assistance from IRS-Criminal Investigation Division, Delaware State Police, Pennsylvania State Police, and local law enforcement partners.                                                                       

A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Delaware.  Related court documents and information is located on the website of the District Court for the District of Delaware or on PACER by searching for Case No. 20-CR-00084 (Jamar Jackson et al.) and Case No. 20-CR-00075 (Castro Valenzuela).

Source: United States Department of Justice News

POCATELLO – Adam Lee Vallely, 46, of Blackfoot, was sentenced to life in federal prison for conspiracy to distribute controlled substances, possession with the intent to distribute methamphetamine, and possession with the intent to distribute heroin, U.S. Attorney Josh Hurwit announced.

According to court records and evidence presented at trial, Vallely engaged in a drug trafficking conspiracy with others in southeast Idaho from December 2017 to August 2018. Evidence established that Vallely participated in trafficking large quantities of methamphetamine and heroin from a source of supply based in Mexico. Evidence further established that Vallely had a source of supply in Salt Lake City that provided methamphetamine and heroin, and that Vallely and his co-conspirators attempted to get large quantities of cocaine from the Salt Lake City source of supply. In May 2018, during the search of a residence where Vallely was known to reside, law enforcement agents found methamphetamine, heroin, $15,000 in United States currency, and a money counting machine. At the time of the search Vallely was found hiding in an attic. Once in jail, Vallely continued to participate in the conspiracy, arranging for the collection of drug debts with the use of force.

Vallely has a lengthy and violent criminal history that includes convictions for attempted strangulation, assault with a dangerous weapon, domestic violence, and possession with intent to distribute heroin. Vallely was on state supervision at the time of the instant offense.

A jury found Vallely guilty after a week-long jury trial in June 2022. Vallely was sentenced by Senior U.S. District Judge Billy Roy Wilson from the Eastern District of Arkansas, sitting by designation, who also presided over the trial.

U.S. Attorney Hurwit commended the cooperative efforts of the Drug Enforcement Administration, Bureau of Alcohol, Tobacco Firearms, and Explosives, Idaho State Police, Pocatello Police Department, Bannock County Sherriff’s Office, Blackfoot Police Department, Bingham County Sheriff’s Office, and Idaho Department of Correction, which led to the charges.

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Source: United States Department of Justice News

One of First Prosecutions under The Medicare Access and CHIP Reauthorization Act of 2015

Source: United States Department of Justice News

Defendant Took Part in Confrontation With Law Enforcement Officers on the Lower West Terrace

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

            Bernard Joseph Sirr, 47, of North Kingstown, Rhode Island, pleaded guilty in the District of Columbia to interference with officers during a civil disorder, a felony. A sentencing hearing is scheduled for May 12, 2023.

            According to court documents, on Jan. 6, Sirr was among rioters who illegally entered the Capitol grounds. He joined a line of rioters that was engaged in a confrontation with law enforcement officers in the tunnel area of the Lower West Terrace. At approximately 3:08 p.m., video showed Sirr entering the tunnel. During a video taken inside the tunnel, Sirr was at the front of the police line pushing against rioters who were assaulting officers. He was seen pushing against the police line with his hand pressed against a police shield. He also participated in a struggle in which a group of rioters chanted “Heave! Ho!” in unison as they moved together as a team against law enforcement.

            Sirr exited the tunnel at approximately 3:14 p.m. About an hour later, however, he reappeared at the Lower West Terrace doorway, pushing other rioters who were pushing against police officers. Sirr ultimately was ejected from the tunnel area.

            Sirr was arrested on June 29, 2022 in North Kingstown, RI.

            This 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 District of Rhode Island.

            The case is being investigated by the FBI’s Boston Division and its Providence Resident Agency. Valuable assistance was provided by the FBI’s Washington Field Office, which identified Sirr as #249 on its seeking information photos, the U.S. Capitol Police, and the Metropolitan Police Department.

            In the 24 months since Jan. 6, 2021, more than 950 individuals have been arrested in nearly all 50 states for crimes related to the breach of the U.S. Capitol, including over 284 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 Criminal Division

A New York woman was sentenced today to 45 months in prison for her role in the submission of fraudulent loan applications seeking more than $9.2 million in forgivable Paycheck Protection Program (PPP) loans guaranteed by the Small Business Administration under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.

Sherry Joseph, 34, of New York, New York, pleaded guilty in the Southern District of Florida to conspiracy to commit wire fraud on Nov. 10, 2022. According to court documents, Joseph recruited multiple individuals to apply for fraudulent PPP loans in exchange for kickbacks from their PPP loan proceeds. Joseph used aliases to send the information of her recruits to co-conspirators, who used this information to prepare fraudulent PPP loan applications that included falsified bank statements and payroll tax forms and falsely represented the borrowing entities’ number of employees and amount of monthly payroll. Joseph engaged in the scheme while on pretrial release for separate federal fraud-related offenses in the District of New Jersey.

In addition to her prison sentence, Joseph was ordered to serve three years of supervised released and pay $1,612,837.78 in restitution and $55,000 in forfeiture.

In total, 30 people have been charged for their participation in this scheme in the Southern District of Florida, Northern District of Ohio, and Middle District of North Carolina. All 30 of those defendants have been convicted.

Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; U.S. Attorney Markenzy Lapointe for the Southern District of Florida; Special Agent in Charge Matthew D. Line of the IRS Criminal Investigation (IRS-CI) Miami Field Office; and Special Agent in Charge Amaleka McCall-Brathwaite of the Small Business Administration Office of Inspector General (SBA-OIG), Eastern Region made the announcement.

The IRS-CI and SBA-OIG investigated the case.

Trial Attorney Philip Trout of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Kiran Bhat for the Southern District of Florida prosecuted the case.

In May 2021, the 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 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 via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

The Fraud Section leads the Criminal Division’s prosecution of fraud schemes that exploit the PPP. Since the inception of the CARES Act, the Fraud Section has prosecuted over 200 defendants in more than 130 criminal cases and has seized over $78 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real estate properties and luxury items purchased with such proceeds. More information can be found at https://www.justice.gov/criminal-fraud/ppp-fraud.