Month: April 2023

Source: United States Department of Justice News

JUNEAU – A Haines man was sentenced today to 2 years in prison and 5 years of supervised release for drug conspiracy.

According to court documents, Fredrick Daniel Folletti, 63, of Haines, Alaska pleaded guilty to drug conspiracy involving the transportation of 79.67 grams of actual methamphetamine from Washington state to Haines, Alaska. Folletti facilitated and arranged the travel of a drug courier located in Washington to acquire methamphetamine to deliver it to Folletti in Haines, Alaska.

“Drug trafficking has a disproportionate effect in small rural communities in Southeast Alaska,” said U.S. Attorney S. Lane Tucker, District of Alaska. “This sentence serves as a reminder that we will prosecute and hold accountable those who are harming our communities, and with our law enforcement partners, will persist in the disruption of narcotics into this district.”

U.S. Attorney S. Lane Tucker of the District of Alaska made the announcement.

The Southeast Alaska Cities Against Drugs and the Federal Bureau of Investigation investigated the case.

Assistant U.S. Attorney Jack Schmidt prosecuted the case.

Source: United States Department of Justice News

Damian Williams, the United States Attorney for the Southern District of New York, announced today that COOPER MORGENTHAU, the former chief financial officer (“CFO”) of two special purpose acquisition companies (“SPACs”) — African Gold Acquisition Corp. (“AGAC”) and Strategic Metals Acquisition Corp. (“SMAC”) — was sentenced to 36 months in prison for committing wire fraud when he embezzled more than $5 million from the two SPACs.  U.S. District Judge Paul A. Engelmayer imposed today’s sentence

U.S. Attorney Damian Williams said: “With today’s sentencing of Cooper Morgenthau, SPAC promoters have been sent a message that fraud in the SPAC markets will be punished, and greed on Wall Street will be met with serious consequences.”

According to the allegations in the Information and statements made in public court proceedings and filings:

Between approximately June 2021 and August 2022, MORGENTHAU, who was the CFO of AGAC and SMAC, embezzled more than $5 million from the two SPACs.  AGAC had recently had its initial public offering (“IPO”), while SMAC was raising money from private investors in preparation for its anticipated IPO.  MORGENTHAU used the embezzled funds to trade equities and options of so-called “meme stocks” and cryptocurrencies, losing almost all of the money that he stole.  To conceal and facilitate his embezzlement from AGAC, MORGENTHAU fabricated bank statements, which he provided to AGAC’s accountant and auditor; made and caused to be made material misstatements in AGAC’s public filings with the Securities and Exchange Commission (“SEC”); and transferred some of SMAC’s funds to AGAC to cover up the funds he had misappropriated from AGAC. 

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MORGENTHAU, 36, of Fernandina Beach, Florida, previously pled guilty to one count of wire fraud.  In addition to his prison term, MORGENTHAU was also ordered to forfeit $5,111,335 and to pay restitution of $5,111,335. 

Mr. Williams praised the outstanding work of the Federal Bureau of Investigation and thanked the SEC for its assistance and cooperation in this investigation. 

This case is being handled by the Office’s Securities and Commodities Fraud Task Force and Money Laundering and Transnational Criminal Enterprises Unit.  Assistant U.S. Attorneys Joshua A. Naftalis and Anden Chow are in charge of the prosecution. 

Source: United States Department of Justice News

Damian Williams, the United States Attorney for the Southern District of New York, announced today that TAJ EVERLY pled guilty to a deprivation of constitutional rights under color of law.  On May 28, 2020, EVERLY, then a correction officer at Green Haven Correctional Facility, assaulted an individual incarcerated in the custody of the New York State Department of Corrections and Community Supervision (“DOCCS”), striking and tackling the inmate without provocation, and then attempted to obstruct the investigation of his assault by preparing a false report.  EVERLY’s actions deprived the incarcerated individual of the constitutional right to be free from excessive force amounting to cruel and unusual punishment.  EVERLY pled guilty today before U.S. Magistrate Judge Judith C. McCarthy.

U.S. Attorney Damian Williams said: “As he admitted today, former correction officer Taj Everly violated the constitutional rights of an incarcerated individual by using excessive force amounting to cruel and unusual punishment.  The protections afforded by the U.S. Constitution extend to all Americans, including those who are serving time in prison.  When individuals in power abuse their authority to injure the powerless, we will act aggressively to ensure justice is served.”

According to the Superseding Indictment and other documents in the public record as well as statements made in public court proceedings:

EVERLY previously worked as a correction officer assigned to Green Haven Correctional Facility in Stormville, New York.  On May 28, 2020, while on duty, EVERLY assaulted an incarcerated individual without provocation, striking him with a closed fist and then tackling him to the ground.  After the assault, EVERLY falsified a report about the incident, identifying the inmate as the aggressor, thereby obstructing the investigation into the unjustified use of force.

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EVERLY, 32, of Cortlandt Manor, New York, pled guilty to a deprivation of constitutional rights under color of law, which carries a maximum sentence of 10 years in prison.

The statutory maximum penalty is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge.

Mr. Williams praised the outstanding investigative work of the Federal Bureau of Investigation and the DOCCS Office of Special Investigations.

The case is being handled by the Civil Rights Unit in the Criminal Division.  Assistant U.S. Attorneys Kaiya Arroyo and Lindsey Keenan are in charge of the prosecution.

Source: United States Department of Justice News

A former case manager with the Mississippi Department of Corrections pleaded guilty yesterday before U.S. District Court Judge Tom Lee for using excessive force against an inmate, involving the use of a dangerous weapon and resulting in bodily injury.

According to court documents and information presented in court, on July 11, 2019, Nicole Moore willfully deprived inmate L.C. of the Eighth Amendment right to be free from cruel and unusual punishment when the defendant, aiding and abetting others, kicked a non-resisting inmate in the head even though L.C. was not resisting.

“When corrections officials working inside jails and prisons violently assault inmates held in their custody, they will be held accountable,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Civil Rights Division of the Justice Department stands ready to hold all prison officials accountable for violating the Eighth Amendment right of prisoners to be free from cruel and unusual punishment.”

“Those that abuse positions of power will be dealt with accordingly,” said U.S. Attorney Darren J. LaMarca for the Southern District of Mississippi. “This should be a reminder to those responsible for the care and control of inmates, that they too must abide by the laws of this nation.”

“Our citizens serving time for crimes against the public deserve the safety and protection from harm by those officials who are charged with their care,” said Special Agent in Charge Jermicha Fomby for the FBI Jackson Field Office. “Ms. Moore’s blatant violation of this trust is a disservice to those in the penal system, the corrections officers who take pride in their profession and citizens in general. The FBI is committed to protecting all citizens of our community.”

Moore faces a maximum penalty of 10 years in prison. Her sentencing is scheduled for July 25.

The FBI Jackson Field Office is investigating the case. 

Assistant U.S. Attorney Glenda Haynes for the Southern District of Mississippi and Trial Attorney Eric Peffley of the Civil Rights Division’s Criminal Section are prosecuting the case.